From USWorkforce.org [http://www.usworkforce.org/asp/act.asp]
WORKFORCE INVESTMENT ACT OF 1998
Public Law 105-220--Aug. 7, 1998 112 Stat. 936
Public Law 105-220 105th Congress
An Act
To consolidate, coordinate, and improve employment, training, literacy,
and vocational rehabilitation programs in the United States, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Workforce
Investment Act of 1998''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--WORKFORCE INVESTMENT SYSTEMS
Subtitle A--Workforce Investment Definitions
Sec. 101. Definitions.
Subtitle B--Statewide and Local Workforce Investment Systems
Sec. 106. Purpose.
Chapter 1--State Provisions
Sec. 111. State workforce investment boards. Sec. 112. State plan.
Chapter 2--Local Provisions
Sec. 116. Local workforce investment areas. Sec. 117. Local workforce investment boards. Sec. 118. Local plan.
Chapter 3--Workforce Investment Activities Providers
Sec. 121. Establishment of one-stop delivery systems. Sec. 122. Identification of eligible providers of training services. Sec. 123. Identification of eligible providers of youth activities.
Chapter 4--Youth Activities
Sec. 126. General authorization. Sec. 127. State allotments. Sec. 128. Within State allocations. Sec. 129. Use of funds for youth activities.
Chapter 5--Adult and Dislocated Worker Employment and Training Activities
Sec. 131. General authorization. Sec. 132. State allotments. Sec. 133. Within State allocations. Sec. 134. Use of funds for employment and training activities.
Chapter 6--General Provisions
Sec. 136. Performance accountability system. Sec. 137. Authorization of appropriations.
Subtitle C--Job Corps
Sec. 141. Purposes.
Sec. 142. Definitions.
Sec. 143. Establishment.
Sec. 144. Individuals eligible for the Job Corps.
Sec. 145. Recruitment, screening, selection, and assignment of
enrollees.
Sec. 146. Enrollment.
Sec. 147. Job Corps centers.
Sec. 148. Program activities.
Sec. 149. Counseling and job placement.
Sec. 150. Support.
Sec. 151. Operating plan.
Sec. 152. Standards of conduct.
Sec. 153. Community participation.
Sec. 154. Industry councils.
Sec. 155. Advisory committees.
Sec. 156. Experimental, research, and demonstration projects.
Sec. 157. Application of provisions of Federal law.
Sec. 158. Special provisions.
Sec. 159. Management information.
Sec. 160. General provisions.
Sec. 161. Authorization of appropriations.
Subtitle D--National Programs
Sec. 166. Native American programs.
Sec. 167. Migrant and seasonal farmworker programs.
Sec. 168. Veterans' workforce investment programs.
Sec. 169. Youth opportunity grants.
Sec. 170. Technical assistance.
Sec. 171. Demonstration, pilot, multiservice, research, and multistate
projects.
Sec. 172. Evaluations.
Sec. 173. National emergency grants.
Sec. 174. Authorization of appropriations.
Subtitle E--Administration
Sec. 181. Requirements and restrictions. Sec. 182. Prompt allocation of funds. Sec. 183. Monitoring. Sec. 184. Fiscal controls; sanctions. Sec. 185. Reports; recordkeeping; investigations. Sec. 186. Administrative adjudication. Sec. 187. Judicial review. Sec. 188. Nondiscrimination. Sec. 189. Administrative provisions. Sec. 190. Reference. Sec. 191. State legislative authority. Sec. 192. Workforce flexibility plans. Sec. 193. Use of certain real property. Sec. 194. Continuation of State activities and policies. Sec. 195. General program requirements.
Subtitle F--Repeals and Conforming Amendments
Sec. 199. Repeals. Sec. 199A. Conforming amendments.
TITLE II--ADULT EDUCATION AND LITERACY
Sec. 201. Short title. Sec. 202. Purpose. Sec. 203. Definitions. Sec. 204. Home schools. Sec. 205. Authorization of appropriations.
Subtitle A--Adult Education and Literacy Programs
Chapter 1--Federal Provisions
Sec. 211. Reservation; grants to eligible agencies; allotments. Sec. 212. Performance accountability system.
Chapter 2--State Provisions
Sec. 221. State administration.
Sec. 222. State distribution of funds; matching requirement.
Sec. 223. State leadership activities.
Sec. 224. State plan.
Sec. 225. Programs for corrections education and other institutionalized
individuals.
Chapter 3--Local Provisions
Sec. 231. Grants and contracts for eligible providers. Sec. 232. Local application. Sec. 233. Local administrative cost limits.
Chapter 4--General Provisions
Sec. 241. Administrative provisions. Sec. 242. National Institute for Literacy. Sec. 243. National leadership activities.
Subtitle B--Repeals
Sec. 251. Repeals.
TITLE III--WORKFORCE INVESTMENT-RELATED ACTIVITIES
Subtitle A--Wagner-Peyser Act
Sec. 301. Definitions. Sec. 302. Functions. Sec. 303. Designation of State agencies. Sec. 304. Appropriations. Sec. 305. Disposition of allotted funds. Sec. 306. State plans. Sec. 307. Repeal of Federal advisory council. Sec. 308. Regulations. Sec. 309. Employment statistics. Sec. 310. Technical amendments. Sec. 311. Effective date.
Subtitle B--Linkages With Other Programs
Sec. 321. Trade Act of 1974. Sec. 322. Veterans' employment programs. Sec. 323. Older Americans Act of 1965.
Subtitle C--Twenty-First Century Workforce Commission
Sec. 331. Short title. Sec. 332. Findings. Sec. 333. Definitions. Sec. 334. Establishment of Twenty-First Century Workforce Commission. Sec. 335. Duties of the Commission. Sec. 336. Powers of the Commission. Sec. 337. Commission personnel matters. Sec. 338. Termination of the Commission. Sec. 339. Authorization of appropriations.
Subtitle D--Application of Civil Rights and Labor-Management Laws to the
Smithsonian Institution
Sec. 341. Application of civil rights and labor-management laws to the
Smithsonian Institution.
TITLE IV--REHABILITATION ACT AMENDMENTS OF 1998
Sec. 401. Short title.
Sec. 402. Title.
Sec. 403. General provisions.
Sec. 404. Vocational rehabilitation services.
Sec. 405. Research and training.
Sec. 406. Professional development and special projects and
demonstrations.
Sec. 407. National Council on Disability.
Sec. 408. Rights and advocacy.
Sec. 409. Employment opportunities for individuals with disabilities.
Sec. 410. Independent living services and centers for independent living.
Sec. 411. Repeal.
Sec. 412. Helen Keller National Center Act.
Sec. 413. President's Committee on Employment of People With Disabilities.
Sec. 414. Conforming amendments.
TITLE V--GENERAL PROVISIONS
Sec. 501. State unified plan. Sec. 502. Definitions for indicators of performance. Sec. 503. Incentive grants. Sec. 504. Privacy. Sec. 505. Buy-American requirements. Sec. 506. Transition provisions. Sec. 507. Effective date.
TITLE I--WORKFORCE INVESTMENT SYSTEMS
Subtitle A--Workforce Investment Definitions
SEC. 101. DEFINITIONS.
In this title:
(1) Adult.--Except in sections 127 and 132, the term ``adult''
means an individual who is age 18 or older.
(2) Adult education; adult education and literacy activities.--
The terms ``adult education'' and ``adult education and literacy
activities'' have the meanings given the terms in section 203.
(3) Area vocational education school.--The term ``area
vocational education school'' has the meaning given the term in
section 521 of the Carl D. Perkins Vocational and Applied
Technology Education Act (20 U.S.C. 2471).
(4) Basic skills deficient.--The term ``basic skills
deficient'' means, with respect to an individual, that the
individual has English reading, writing, or computing skills at or
below the 8th grade level on a generally accepted standardized test
or a comparable score on a criterion-referenced test.
(5) Case management.--The term ``case management'' means the
provision of a client-centered approach in the delivery of
services, designed--
(A) to prepare and coordinate comprehensive employment
plans, such as service strategies, for participants to ensure
access to necessary workforce investment activities and
supportive services, using, where feasible, computer-based
technologies; and
(B) to provide job and career counseling during program
participation and after job placement.
(6) Chief elected official.--The term ``chief elected
official'' means--
(A) the chief elected executive officer of a unit of
general local government in a local area; and
(B) in a case in which a local area includes more than one
unit of general local government, the individuals designated
under the agreement described in section 117(c)(1)(B).
(7) Community-based organization.--The term ``community-based
organization'' means a private nonprofit organization that is
representative of a community or a significant segment of a
community and that has demonstrated expertise and effectiveness in
the field of workforce investment.
(8) Customized training.--The term ``customized training''
means training--
(A) that is designed to meet the special requirements of an
employer (including a group of employers);
(B) that is conducted with a commitment by the employer to
employ an individual on successful completion of the training;
and
(C) for which the employer pays for not less than 50
percent of the cost of the training.
(9) Dislocated worker.--The term ``dislocated worker'' means an
individual who--
(A)(i) has been terminated or laid off, or who has received
a notice of termination or layoff, from employment;
(ii)(I) is eligible for or has exhausted entitlement to
unemployment compensation; or
(II) has been employed for a duration sufficient to
demonstrate, to the appropriate entity at a one-stop center
referred to in section 134(c), attachment to the workforce, but
is not eligible for unemployment compensation due to
insufficient earnings or having performed services for an
employer that were not covered under a State unemployment
compensation law; and
(iii) is unlikely to return to a previous industry or
occupation;
(B)(i) has been terminated or laid off, or has received a
notice of termination or layoff, from employment as a result of
any permanent closure of, or any substantial layoff at, a
plant, facility, or enterprise;
(ii) is employed at a facility at which the employer has
made a general announcement that such facility will close
within 180 days; or
(iii) for purposes of eligibility to receive services other
than training services described in section 134(d)(4),
intensive services described in section 134(d)(3), or
supportive services, is employed at a facility at which the
employer has made a general announcement that such facility
will close;
(C) was self-employed (including employment as a farmer, a
rancher, or a fisherman) but is unemployed as a result of
general economic conditions in the community in which the
individual resides or because of natural disasters; or
(D) is a displaced homemaker.
(10) Displaced homemaker.--The term ``displaced homemaker''
means an individual who has been providing unpaid services to
family members in the home and who--
(A) has been dependent on the income of another family
member but is no longer supported by that income; and
(B) is unemployed or underemployed and is experiencing
difficulty in obtaining or upgrading employment.
(11) Economic development agencies.--The term ``economic
development agencies'' includes local planning and zoning
commissions or boards, community development agencies, and other
local agencies and institutions responsible for regulating,
promoting, or assisting in local economic development.
(12) Eligible provider.--The term ``eligible provider'', used
with respect to--
(A) training services, means a provider who is identified
in accordance with section 122(e)(3);
(B) intensive services, means a provider who is identified
or awarded a contract as described in section 134(d)(3)(B);
(C) youth activities, means a provider who is awarded a
grant or contract in accordance with section 123; or
(D) other workforce investment activities, means a public
or private entity selected to be responsible for such
activities, such as a one-stop operator designated or certified
under section 121(d).
(13) Eligible youth.--Except as provided in subtitles C and D,
the term ``eligible youth'' means an individual who--
(A) is not less than age 14 and not more than age 21;
(B) is a low-income individual; and
(C) is an individual who is one or more of the following:
(i) Deficient in basic literacy skills.
(ii) A school dropout.
(iii) Homeless, a runaway, or a foster child.
(iv) Pregnant or a parent.
(v) An offender.
(vi) An individual who requires additional assistance
to complete an educational program, or to secure and hold
employment.
(14) Employment and training activity.--The term ``employment
and training activity'' means an activity described in section 134
that is carried out for an adult or dislocated worker.
(15) Family.--The term ``family'' means two or more persons
related by blood, marriage, or decree of court, who are living in a
single residence, and are included in one or more of the following
categories:
(A) A husband, wife, and dependent children.
(B) A parent or guardian and dependent children.
(C) A husband and wife.
(16) Governor.--The term ``Governor'' means the chief executive
of a State.
(17) Individual with a disability.--
(A) In general.--The term ``individual with a disability''
means an individual with any disability (as defined in section
3 of the Americans with Disabilities Act of 1990 (42 U.S.C.
12102)).
(B) Individuals with disabilities.--The term ``individuals
with disabilities'' means more than one individual with a
disability.
(18) Labor market area.--The term ``labor market area'' means
an economically integrated geographic area within which individuals
can reside and find employment within a reasonable distance or can
readily change employment without changing their place of
residence. Such an area shall be identified in accordance with
criteria used by the Bureau of Labor Statistics of the Department
of Labor in defining such areas or similar criteria established by
a Governor.
(19) Literacy.--The term ``literacy'' has the meaning given the
term in section 203.
(20) Local area.--The term ``local area'' means a local
workforce investment area designated under section 116.
(21) Local board.--The term ``local board'' means a local
workforce investment board established under section 117.
(22) Local performance measure.--The term ``local performance
measure'' means a performance measure established under section
136(c).
(23) Local educational agency.--The term ``local educational
agency'' has the meaning given the term in section 14101 of the
Elementary and Secondary Education Act of 1965 (20 U.S.C. 8801).
(24) Lower living standard income level.--The term ``lower
living standard income level'' means that income level (adjusted
for regional, metropolitan, urban, and rural differences and family
size) determined annually by the Secretary based on the most recent
lower living family budget issued by the Secretary.
(25) Low-income individual.--The term ``low-income individual''
means an individual who--
(A) receives, or is a member of a family that receives,
cash payments under a Federal, State, or local income-based
public assistance program;
(B) received an income, or is a member of a family that
received a total family income, for the 6-month period prior to
application for the program involved (exclusive of unemployment
compensation, child support payments, payments described in
subparagraph (A), and old-age and survivors insurance benefits
received under section 202 of the Social Security Act (42
U.S.C. 402)) that, in relation to family size, does not exceed
the higher of--
(i) the poverty line, for an equivalent period; or
(ii) 70 percent of the lower living standard income
level, for an equivalent period;
(C) is a member of a household that receives (or has been
determined within the 6-month period prior to application for
the program involved to be eligible to receive) food stamps
pursuant to the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.);
(D) qualifies as a homeless individual, as defined in
subsections (a) and (c) of section 103 of the Stewart B. McKinney
Homeless Assistance Act (42 U.S.C. 11302);
(E) is a foster child on behalf of whom State or local
government payments are made; or
(F) in cases permitted by regulations promulgated by the
Secretary of Labor, is an individual with a disability whose
own income meets the requirements of a program described in
subparagraph (A) or of subparagraph (B), but who is a member of
a family whose income does not meet such requirements.
(26) Nontraditional employment.--The term ``nontraditional
employment'' refers to occupations or fields of work for which
individuals from one gender comprise less than 25 percent of the
individuals employed in each such occupation or field of work.
(27) Offender.--The term ``offender'' means any adult or
juvenile--
(A) who is or has been subject to any stage of the criminal
justice process, for whom services under this Act may be
beneficial; or
(B) who requires assistance in overcoming artificial
barriers to employment resulting from a record of arrest or
conviction.
(28) Older individual.--The term ``older individual'' means an
individual age 55 or older.
(29) One-stop operator.--The term ``one-stop operator'' means 1
or more entities designated or certified under section 121(d).
(30) One-stop partner.--The term ``one-stop partner'' means--
(A) an entity described in section 121(b)(1); and
(B) an entity described in section 121(b)(2) that is
participating, with the approval of the local board and chief
elected official, in the operation of a one-stop delivery
system.
(31) On-the-job training.--The term ``on-the-job training''
means training by an employer that is provided to a paid
participant while engaged in productive work in a job that--
(A) provides knowledge or skills essential to the full and
adequate performance of the job;
(B) provides reimbursement to the employer of up to 50
percent of the wage rate of the participant, for the
extraordinary costs of providing the training and additional
supervision related to the training; and
(C) is limited in duration as appropriate to the occupation
for which the participant is being trained, taking into account
the content of the training, the prior work experience of the
participant, and the service strategy of the participant, as
appropriate.
(32) Outlying area.--The term ``outlying area'' means the
United States Virgin Islands, Guam, American Samoa, the
Commonwealth of the Northern Mariana Islands, the Republic of the
Marshall Islands, the Federated States of Micronesia, and the
Republic of Palau.
(33) Out-of-school youth.--The term ``out-of-school youth''
means--
(A) an eligible youth who is a school dropout; or
(B) an eligible youth who has received a secondary school
diploma or its equivalent but is basic skills deficient,
unemployed, or underemployed.
(34) Participant.--The term ``participant'' means an individual
who has been determined to be eligible to participate in and who is
receiving services (except followup services authorized under this
title) under a program authorized by this title. Participation
shall be deemed to commence on the first day, following
determination of eligibility, on which the individual began
receiving subsidized employment, training, or other services
provided under this title.
(35) Postsecondary educational institution.--The term
``postsecondary educational institution'' means an institution of
higher education, as defined in section 481 of the Higher Education
Act of 1965 (20 U.S.C. 1088).
(36) Poverty line.--The term ``poverty line'' means the poverty
line (as defined by the Office of Management and Budget, and
revised annually in accordance with section 673(2) of the Community
Services Block Grant Act (42 U.S.C. 9902(2))) applicable to a
family of the size involved.
(37) Public assistance.--The term ``public assistance'' means
Federal, State, or local government cash payments for which
eligibility is determined by a needs or income test.
(38) Rapid response activity.--The term ``rapid response
activity'' means an activity provided by a State, or by an entity
designated by a State, with funds provided by the State under
section 134(a)(1)(A), in the case of a permanent closure or mass
layoff at a plant, facility, or enterprise, or a natural or other
disaster, that results in mass job dislocation, in order to assist
dislocated workers in obtaining reemployment as soon as possible,
with services including--
(A) the establishment of onsite contact with employers and
employee representatives--
(i) immediately after the State is notified of a
current or projected permanent closure or mass layoff; or
(ii) in the case of a disaster, immediately after the
State is made aware of mass job dislocation as a result of
such disaster;
(B) the provision of information and access to available
employment and training activities;
(C) assistance in establishing a labor-management
committee, voluntarily agreed to by labor and management, with
the ability to devise and implement a strategy for assessing
the employment and training needs of dislocated workers and
obtaining services to meet such needs;
(D) the provision of emergency assistance adapted to the
particular closure, layoff, or disaster; and
(E) the provision of assistance to the local community in
developing a coordinated response and in obtaining access to
State economic development assistance.
(39) School dropout.--The term ``school dropout'' means an
individual who is no longer attending any school and who has not
received a secondary school diploma or its recognized equivalent.
(40) Secondary school.--The term ``secondary school'' has the
meaning given the term in section 14101 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 8801).
(41) Secretary.--The term ``Secretary'' means the Secretary of
Labor, and the term means such Secretary for purposes of section
503.
(42) State.--The term ``State'' means each of the several
States of the United States, the District of Columbia, and the
Commonwealth of Puerto Rico.
(43) State adjusted level of performance.--The term ``State
adjusted level of performance'' means a level described in clause
(iii) or (v) of section 136(b)(3)(A).
(44) State board.--The term ``State board'' means a State
workforce investment board established under section 111.
(45) State performance measure.--The term ``State performance
measure'' means a performance measure established under section
136(b).
(46) Supportive services.--The term ``supportive services''
means services such as transportation, child care, dependent care,
housing, and needs-related payments, that are necessary to enable
an individual to participate in activities authorized under this
title, consistent with the provisions of this title.
(47) Unemployed individual.--The term ``unemployed individual''
means an individual who is without a job and who wants and is
available for work. The determination of whether an individual is
without a job shall be made in accordance with the criteria used by
the Bureau of Labor Statistics of the Department of Labor in
defining individuals as unemployed.
(48) Unit of general local government.--The term ``unit of
general local government'' means any general purpose political
subdivision of a State that has the power to levy taxes and spend
funds, as well as general corporate and police powers.
(49) Veteran; related definition.--
(A) Veteran.--The term ``veteran'' means an individual who
served in the active military, naval, or air service, and who
was discharged or released from such service under conditions
other than dishonorable.
(B) Recently separated veteran.--The term ``recently
separated veteran'' means any veteran who applies for
participation under this title within 48 months after the
discharge or release from active military, naval, or air
service.
(50) Vocational education.--The term ``vocational education''
has the meaning given the term in section 521 of the Carl D.
Perkins Vocational and Applied Technology Education Act (20 U.S.C.
2471).
(51) Workforce investment activity.--The term ``workforce
investment activity'' means an employment and training activity,
and a youth activity.
(52) Youth activity.--The term ``youth activity'' means an
activity described in section 129 that is carried out for eligible
youth (or as described in section 129(c)(5)).
(53) Youth council.--The term ``youth council'' means a council
established under section 117(h).
Subtitle B--Statewide and Local Workforce Investment Systems
SEC. 106. PURPOSE.
The purpose of this subtitle is to provide workforce investment activities, through statewide and local workforce investment systems, that increase the employment, retention, and earnings of participants, and increase occupational skill attainment by participants, and, as a result, improve the quality of the workforce, reduce welfare dependency, and enhance the productivity and competitiveness of the Nation.
CHAPTER 1--STATE PROVISIONS
SEC. 111. STATE WORKFORCE INVESTMENT BOARDS.
(a) In General.--The Governor of a State shall establish a State
workforce investment board to assist in the development of the State
plan described in section 112 and to carry out the other functions
described in subsection (d).
(b) Membership.--
(1) In general.--The State Board shall include--
(A) the Governor;
(B) 2 members of each chamber of the State legislature,
appointed by the appropriate presiding officers of each such
chamber; and
(C) representatives appointed by the Governor, who are--
(i) representatives of business in the State, who--
(I) are owners of businesses, chief executives or
operating officers of businesses, and other business
executives or employers with optimum policymaking or
hiring authority, including members of local boards
described in section 117(b)(2)(A)(i);
(II) represent businesses with employment
opportunities that reflect the employment opportunities
of the State; and
(III) are appointed from among individuals
nominated by State business organizations and business
trade associations;
(ii) chief elected officials (representing both cities
and counties, where appropriate);
(iii) representatives of labor organizations, who have
been nominated by State labor federations;
(iv) representatives of individuals and organizations
that have experience with respect to youth activities;
(v) representatives of individuals and organizations
that have experience and expertise in the delivery of
workforce investment activities, including chief executive
officers of community colleges and community-based
organizations within the State;
(vi)(I) the lead State agency officials with
responsibility for the programs and activities that are
described in section 121(b) and carried out by one-stop
partners; and
(II) in any case in which no lead State agency official
has responsibility for such a program, service, or
activity, a representative in the State with expertise
relating to such program, service, or activity; and
(vii) such other representatives and State agency
officials as the Governor may designate, such as the State
agency officials responsible for economic development and
juvenile justice programs in the State.
(2) Authority and regional representation of board members.--
Members of the board that represent organizations, agencies, or
other entities shall be individuals with optimum policymaking
authority within the organizations, agencies, or entities. The
members of the board shall represent diverse regions of the State,
including urban, rural, and suburban areas.
(3) Majority.--A majority of the members of the State Board
shall be representatives described in paragraph (1)(C)(i).
(c) Chairman.--The Governor shall select a chairperson for the
State Board from among the representatives described in subsection
(b)(1)(C)(i).
(d) Functions.--The State Board shall assist the Governor in--
(1) development of the State plan;
(2) development and continuous improvement of a statewide
system of activities that are funded under this subtitle or carried
out through a one-stop delivery system described in section 134(c)
that receives funds under this subtitle (referred to in this title
as a ``statewide workforce investment system''), including--
(A) development of linkages in order to assure coordination
and nonduplication among the programs and activities described
in section 121(b); and
(B) review of local plans;
(3) commenting at least once annually on the measures taken
pursuant to section 113(b)(14) of the Carl D. Perkins Vocational
and Applied Technology Education Act (20 U.S.C 2323(b)(14));
(4) designation of local areas as required in section 116;
(5) development of allocation formulas for the distribution of
funds for adult employment and training activities and youth
activities to local areas as permitted under sections 128(b)(3)(B)
and 133(b)(3)(B);
(6) development and continuous improvement of comprehensive
State performance measures, including State adjusted levels of
performance, to assess the effectiveness of the workforce
investment activities in the State as required under section
136(b);
(7) preparation of the annual report to the Secretary described
in section 136(d);
(8) development of the statewide employment statistics system
described in section 15(e) of the Wagner-Peyser Act; and
(9) development of an application for an incentive grant under
section 503.
(e) Alternative Entity.--
(1) In general.--For purposes of complying with subsections
(a), (b), and (c), a State may use any State entity (including a
State council, State workforce development board, combination of
regional workforce development boards, or similar entity) that--
(A) was in existence on December 31, 1997;
(B)(i) was established pursuant to section 122 or title VII
of the Job Training Partnership Act, as in effect on December
31, 1997; or
(ii) is substantially similar to the State board described
in subsections (a), (b), and (c); and
(C) includes representatives of business in the State and
representatives of labor organizations in the State.
(2) References.--References in this Act to a State board shall
be considered to include such an entity.
(f) Conflict of Interest.--A member of a State board may not--
(1) vote on a matter under consideration by the State board--
(A) regarding the provision of services by such member (or
by an entity that such member represents); or
(B) that would provide direct financial benefit to such
member or the immediate family of such member; or
(2) engage in any other activity determined by the Governor to
constitute a conflict of interest as specified in the State plan.
(g) Sunshine Provision.--The State board shall make available to
the public, on a regular basis through open meetings, information
regarding the activities of the State board, including information
regarding the State plan prior to submission of the plan, information
regarding membership, and, on request, minutes of formal meetings of
the State board.
SEC. 112. STATE PLAN.
(a) In General.--For a State to be eligible to receive an allotment
under section 127 or 132, or to receive financial assistance under the
Wagner-Peyser Act (29 U.S.C. 49 et seq.), the Governor of the State
shall submit to the Secretary for consideration by the Secretary, a
single State plan (referred to in this title as the ``State plan'')
that outlines a 5-year strategy for the statewide workforce investment
system of the State and that meets the requirements of section 111 and
this section.
(b) Contents.--The State plan shall include--
(1) a description of the State board, including a description
of the manner in which such board collaborated in the development
of the State plan and a description of how the board will continue
to collaborate in carrying out the functions described in section
111(d);
(2) a description of State-imposed requirements for the
statewide workforce investment system;
(3) a description of the State performance accountability
system developed for the workforce investment activities to be
carried out through the statewide workforce investment system, that
includes information identifying State performance measures as
described in section 136(b)(3)(A)(ii);
(4) information describing--
(A) the needs of the State with regard to current and
projected employment opportunities, by occupation;
(B) the job skills necessary to obtain such employment
opportunities;
(C) the skills and economic development needs of the State;
and
(D) the type and availability of workforce investment
activities in the State;
(5) an identification of local areas designated in the State,
including a description of the process used for the designation of
such areas;
(6) an identification of criteria to be used by chief elected
officials for the appointment of members of local boards based on
the requirements of section 117;
(7) the detailed plans required under section 8 of the Wagner-Peyser
Act (29 U.S.C. 49g);
(8)(A) a description of the procedures that will be taken by
the State to assure coordination of and avoid duplication among--
(i) workforce investment activities authorized under this
title;
(ii) other activities authorized under this title;
(iii) programs authorized under the Wagner-Peyser Act
(29 U.S.C. 49 et seq.), title II of this Act, title I of the
Rehabilitation Act of 1973 (29 U.S.C. 720 et seq.), part A of
title IV of the Social Security Act (42 U.S.C. 601 et seq.),
and section 6(d)(4) of the Food Stamp Act of 1977 (7 U.S.C.
2015(d)(4)), activities authorized under title V of the
Older Americans Act of 1965 (42 U.S.C. 3056 et seq.), and
postsecondary vocational education activities authorized under
the Carl D. Perkins Vocational and Applied Technology Education
Act (20 U.S.C. 2301 et seq.);
(iv) work programs authorized under section 6(o) of the
Food Stamp Act of 1977 (7 U.S.C. 2015(o));
(v) activities authorized under chapter 2 of title II of
the Trade Act of 1974 (19 U.S.C. 2271 et seq.);
(vi) activities authorized under chapter 41 of title 38,
United States Code;
(vii) employment and training activities carried out under
the Community Services Block Grant Act (42 U.S.C. 9901 et
seq.);
(viii) activities authorized under the National and
Community Service Act of 1990 (42 U.S.C. 12501 et seq.);
(ix) employment and training activities carried out by the
Department of Housing and Urban Development; and
(x) programs authorized under State unemployment
compensation laws (in accordance with applicable Federal law);
and
(B) a description of the common data collection and reporting
processes used for the programs and activities described in
subparagraph (A);
(9) a description of the process used by the State, consistent
with section 111(g), to provide an opportunity for public comment,
including comment by representatives of businesses and
representatives of labor organizations, and input into development
of the plan, prior to submission of the plan;
(10) information identifying how the State will use funds the
State receives under this subtitle to leverage other Federal,
State, local, and private resources, in order to maximize the
effectiveness of such resources, and to expand the participation of
business, employees, and individuals in the statewide workforce
investment system;
(11) assurances that the State will provide, in accordance with
section 184 for fiscal control and fund accounting procedures that
may be necessary to ensure the proper disbursement of, and
accounting for, funds paid to the State through the allotments made
under sections 127 and 132;
(12)(A) a description of the methods and factors the State will
use in distributing funds to local areas for youth activities and
adult employment and training activities under sections
128(b)(3)(B) and 133(b)(3)(B), including--
(i) a description of how the individuals and entities
represented on the State board were involved in determining
such methods and factors of distribution; and
(ii) a description of how the State consulted with chief
elected officials in local areas throughout the State in
determining such distribution;
(B) assurances that the funds will be distributed equitably
throughout the State, and that no local areas will suffer
significant shifts in funding from year to year; and
(C) a description of the formula prescribed by the Governor
pursuant to section 133(b)(2)(B) for the allocation of funds to
local areas for dislocated worker employment and training
activities;
(13) information specifying the actions that constitute a
conflict of interest prohibited in the State for purposes of
sections 111(f) and 117(g);
(14) with respect to the one-stop delivery systems described in
section 134(c) (referred to individually in this title as a ``one-
stop delivery system''), a description of the strategy of the State
for assisting local areas in development and implementation of
fully operational one-stop delivery systems in the State;
(15) a description of the appeals process referred to in
section 116(a)(5);
(16) a description of the competitive process to be used by the
State to award grants and contracts in the State for activities
carried out under this title;
(17) with respect to the employment and training activities
authorized in section 134--
(A) a description of--
(i) the employment and training activities that will be
carried out with the funds received by the State through
the allotment made under section 132;
(ii) how the State will provide rapid response
activities to dislocated workers from funds reserved under
section 133(a)(2) for such purposes, including the
designation of an identifiable State rapid response
dislocated worker unit to carry out statewide rapid
response activities;
(iii) the procedures the local boards in the State will
use to identify eligible providers of training services
described in section 134(d)(4) (other than on-the-job
training or customized training), as required under section
122; and
(iv) how the State will serve the employment and
training needs of dislocated workers (including displaced
homemakers), low-income individuals (including recipients
of public assistance), individuals training for
nontraditional employment, and other individuals with
multiple barriers to employment (including older
individuals and individuals with disabilities); and
(B) an assurance that veterans will be afforded the
employment and training activities by the State, to the extent
practicable; and
(18) with respect to youth activities authorized in section 129,
information--
(A) describing the State strategy for providing
comprehensive services to eligible youth, particularly those
eligible youth who are recognized as having significant
barriers to employment;
(B) identifying the criteria to be used by local boards in
awarding grants for youth activities, including criteria that
the Governor and local boards will use to identify effective
and ineffective youth activities and providers of such activities;
(C) describing how the State will coordinate the youth
activities carried out in the State under section 129 with the
services provided by Job Corps centers in the State (where such
centers exist); and
(D) describing how the State will coordinate youth activities
described in subparagraph (C) with activities carried out
through the youth opportunity grants under section 169.
(c) Plan Submission and Approval.--A State plan submitted to the
Secretary under this section by a Governor shall be considered to be
approved by the Secretary at the end of the 90-day period beginning on
the day the Secretary receives the plan, unless the Secretary makes a
written determination, during the 90-day period, that--
(1) the plan is inconsistent with the provisions of this title; and
(2) in the case of the portion of the plan described in section 8(a) of
the Wagner-Peyser Act (29 U.S.C. 49g(a)), the portion does not satisfy
the criteria for approval provided in section 8(d) of such Act.
(d) Modifications to Plan.--A State may submit modifications to a
State plan in accordance with the requirements of this section and
section 111 as necessary during the 5-year period covered by the plan.
CHAPTER 2--LOCAL PROVISIONS
SEC. 116. LOCAL WORKFORCE INVESTMENT AREAS.
(a) Designation of Areas.--
(1) In general.--
(A) Process.--Except as provided in subsection (b), and
consistent with paragraphs (2), (3), and (4), in order for a
State to receive an allotment under section 127 or 132, the
Governor of the State shall designate local workforce
investment areas within the State--
(i) through consultation with the State board; and
(ii) after consultation with chief elected officials
and after consideration of comments received through the
public comment process as described in section 112(b)(9).
(B) Considerations.--In making the designation of local
areas, the Governor shall take into consideration the
following:
(i) Geographic areas served by local educational
agencies and intermediate educational agencies.
(ii) Geographic areas served by postsecondary
educational institutions and area vocational education
schools.
(iii) The extent to which such local areas are
consistent with labor market areas.
(iv) The distance that individuals will need to travel
to receive services provided in such local areas.
(v) The resources of such local areas that are
available to effectively administer the activities carried
out under this subtitle.
(2) Automatic designation.--The Governor shall approve any
request for designation as a local area--
(A) from any unit of general local government with a
population of 500,000 or more;
(B) of the area served by a rural concentrated employment
program grant recipient of demonstrated effectiveness that
served as a service delivery area or substate area under the
Job Training Partnership Act, if the grant recipient has
submitted the request; and
(C) of an area that served as a service delivery area under
section 101(a)(4)(A)(ii) of the Job Training Partnership Act
(as in effect on the day before the date of enactment of this Act)
in a State that has a population of not more than 1,100,000
and a population density greater than 900 persons per
square mile.
(3) Temporary and subsequent designation.--
(A) Criteria.--Notwithstanding paragraph (2)(A), the
Governor shall approve any request, made not later than the
date of submission of the initial State plan under this
subtitle, for temporary designation as a local area from any
unit of general local government (including a combination of
such units) with a population of 200,000 or more that was a
service delivery area under the Job Training Partnership Act on
the day before the date of enactment of this Act if the
Governor determines that the area--
(i) performed successfully, in each of the last 2 years
prior to the request for which data are available, in the
delivery of services to participants under part A of title
II and title III of the Job Training Partnership Act (as in
effect on such day); and
(ii) has sustained the fiscal integrity of the funds
used by the area to carry out activities under such part
and title.
(B) Duration and subsequent designation.--A temporary
designation under this paragraph shall be for a period of not
more than 2 years, after which the designation shall be
extended until the end of the period covered by the State plan
if the Governor determines that, during the temporary
designation period, the area substantially met (as defined by
the State board) the local performance measures for the local
area and sustained the fiscal integrity of the funds used by
the area to carry out activities under this subtitle.
(C) Technical assistance.--The Secretary shall provide the
States with technical assistance in making the determinations
required by this paragraph. The Secretary shall not issue
regulations governing determinations to be made under this
paragraph.
(D) Performed successfully.--In this paragraph, the term
``performed successfully'' means that the area involved met or
exceeded the performance standards for activities administered
in the area that--
(i) are established by the Secretary for each year and
modified by the adjustment methodology of the State (used
to account for differences in economic conditions,
participant characteristics, and combination of services
provided from the combination assumed for purposes of the
established standards of the Secretary); and
(ii)(I) if the area was designated as both a service
delivery area and a substate area under the Job Training
Partnership Act (as in effect on the day before the date of
enactment of this Act)--
(aa) relate to job retention and earnings, with respect
to activities carried out under part A of title II of
such Act (as in effect on such day); or
(bb) relate to entry into employment, with respect
to activities carried out under title III of such Act
(as in effect on such day);
(II) if the area was designated only as a service
delivery area under such Act (as in effect on such day),
relate to the standards described in subclause (I)(aa); or
(III) if the area was only designated as a substate
area under such Act (as in effect on such day), relate to
the standards described in subclause (I)(bb).
(E) Sustained the fiscal integrity.--In this paragraph, the
term ``sustained the fiscal integrity'', used with respect to
funds used by a service delivery area or local area, means that
the Secretary has not made a final determination during any of
the last 3 years for which data are available, prior to the
date of the designation request involved, that either the grant
recipient or the administrative entity of the area misexpended
the funds due to willful disregard of the requirements of the Act
involved, gross negligence, or failure to observe accepted
standards of administration.
(4) Designation on recommendation of state board.--The Governor
may approve a request from any unit of general local government
(including a combination of such units) for designation (including
temporary designation) as a local area if the State board
determines, taking into account the factors described in clauses
(i) through (v) of paragraph (1)(B), and recommends to the
Governor, that such area should be so designated.
(5) Appeals.--A unit of general local government (including a
combination of such units) or grant recipient that requests but is
not granted designation of an area as a local area under paragraph
(2) or (3) may submit an appeal to the State board under an appeal
process established in the State plan. If the appeal does not
result in such a designation, the Secretary, after receiving a
request for review from the unit or grant recipient and on
determining that the unit or grant recipient was not accorded
procedural rights under the appeal process established in the State
plan or that the area meets the requirements of paragraph (2) or
(3), as appropriate, may require that the area be designated as a
local area under such paragraph.
(b) Small States.--The Governor of any State that was a single
State service delivery area under the Job Training Partnership Act as
of July 1, 1998, may designate the State as a single State local area
for the purposes of this title. In the case of such a designation, the
Governor shall identify the State as a local area under section 112(b)(5).
(c) Regional Planning and Cooperation.--
(1) Planning.--As part of the process for developing the State
plan, a State may require regional planning by local boards for a
designated region in the State. The State may require the local
boards for a designated region to participate in a regional planning
process that results in the establishment of regional performance
measures for workforce investment activities authorized under
this subtitle. The State may award regional incentive grants to the
designated regions that meet or exceed the regional performance measures.
(2) Information sharing.--The State may require the local
boards for a designated region to share, in feasible cases,
employment statistics, information about employment opportunities
and trends, and other types of information that would assist in
improving the performance of all local areas in the designated
region on local performance measures.
(3) Coordination of services.--The State may require the local
boards for a designated region to coordinate the provision of
workforce investment activities authorized under this subtitle,
including the provision of transportation and other supportive services,
so that services provided through the activities may be provided
across the boundaries of local areas within the designated region.
(4) Interstate regions.--Two or more States that contain an
interstate region that is a labor market area, economic development
region, or other appropriate contiguous subarea of the States may
designate the area as a designated region for purposes of this
subsection, and jointly exercise the State functions described in
paragraphs (1) through (3).
(5) Definitions.--In this subsection:
(A) Designated region.--The term ``designated region''
means a combination of local areas that are partly or
completely in a single labor market area, economic development
region, or other appropriate contiguous subarea of a State, that is
designated by the State, except as provided in paragraph (4).
(B) Local board for a designated region.--The term ``local
board for a designated region'' means a local board for a local
area in a designated region.
SEC. 117. LOCAL WORKFORCE INVESTMENT BOARDS.
(a) Establishment.--There shall be established in each local area
of a State, and certified by the Governor of the State, a local
workforce investment board, to set policy for the portion of the
statewide workforce investment system within the local area (referred
to in this title as a ``local workforce investment system'').
(b) Membership.--
(1) State criteria.--The Governor of the State, in partnership
with the State board, shall establish criteria for use by chief
elected officials in the local areas for appointment of members of
the local boards in such local areas in accordance with the
requirements of paragraph (2).
(2) Composition.--Such criteria shall require, at a minimum,
that the membership of each local board--
(A) shall include--
(i) representatives of business in the local area,
who--
(I) are owners of businesses, chief executives or
operating officers of businesses, and other business
executives or employers with optimum policymaking or
hiring authority;
(II) represent businesses with employment
opportunities that reflect the employment opportunities
of the local area; and
(III) are appointed from among individuals
nominated by local business organizations and business
trade associations;
(ii) representatives of local educational entities,
including representatives of local educational agencies,
local school boards, entities providing adult education and
literacy activities, and postsecondary educational
institutions (including representatives of community
colleges, where such entities exist), selected from among
individuals nominated by regional or local educational
agencies, institutions, or organizations representing such
local educational entities;
(iii) representatives of labor organizations (for a
local area in which employees are represented by labor
organizations), nominated by local labor federations, or
(for a local area in which no employees are represented by
such organizations), other representatives of employees;
(iv) representatives of community-based organizations
(including organizations representing individuals with
disabilities and veterans, for a local area in which such
organizations are present);
(v) representatives of economic development agencies,
including private sector economic development entities; and
(vi) representatives of each of the one-stop partners;
and
(B) may include such other individuals or representatives
of entities as the chief elected official in the local area may
determine to be appropriate.
(3) Authority of board members.--Members of the board that
represent organizations, agencies, or other entities shall be
individuals with optimum policymaking authority within the
organizations, agencies, or entities.
(4) Majority.--A majority of the members of the local board
shall be representatives described in paragraph (2)(A)(i).
(5) Chairperson.--The local board shall elect a chairperson for
the local board from among the representatives described in
paragraph (2)(A)(i).
(c) Appointment and Certification of Board.--
(1) Appointment of board members and assignment of
responsibilities.--
(A) In general.--The chief elected official in a local area
is authorized to appoint the members of the local board for
such area, in accordance with the State criteria established
under subsection (b).
(B) Multiple units of local government in area.--
(i) In general.--In a case in which a local area
includes more than 1 unit of general local government, the
chief elected officials of such units may execute an
agreement that specifies the respective roles of the
individual chief elected officials--
(I) in the appointment of the members of the local
board from the individuals nominated or recommended to
be such members in accordance with the criteria
established under subsection (b); and
(II) in carrying out any other responsibilities
assigned to such officials under this subtitle.
(ii) Lack of agreement.--If, after a reasonable effort,
the chief elected officials are unable to reach agreement
as provided under clause (i), the Governor may appoint the
members of the local board from individuals so nominated or
recommended.
(C) Concentrated employment programs.--In the case of a
local area designated in accordance with section 116(a)(2)(B),
the governing body of the concentrated employment program
involved shall act in consultation with the chief elected
official in the local area to appoint members of the local
board, in accordance with the State criteria established under
subsection (b), and to carry out any other responsibility
relating to workforce investment activities assigned to such
official under this Act.
(2) Certification.--
(A) In general.--The Governor shall, once every 2 years,
certify 1 local board for each local area in the State.
(B) Criteria.--Such certification shall be based on
criteria established under subsection (b) and, for a second or
subsequent certification, the extent to which the local board
has ensured that workforce investment activities carried out in
the local area have enabled the local area to meet the local
performance measures.
(C) Failure to achieve certification.--Failure of a local
board to achieve certification shall result in reappointment
and certification of another local board for the local area
pursuant to the process described in paragraph (1) and this
paragraph.
(3) Decertification.--
(A) Fraud, abuse, failure to carry out functions.--
Notwithstanding paragraph (2), the Governor may decertify a
local board, at any time after providing notice and an
opportunity for comment, for--
(i) fraud or abuse; or
(ii) failure to carry out the functions specified for
the local board in any of paragraphs (1) through (7) of
subsection (d).
(B) Nonperformance.--Notwithstanding paragraph (2), the
Governor may decertify a local board if a local area fails to
meet the local performance measures for such local area for 2
consecutive program years (in accordance with section 136(h)).
(C) Plan.--If the Governor decertifies a local board for a
local area under subparagraph (A) or (B), the Governor may
require that a new local board be appointed and certified for
the local area pursuant to a reorganization plan developed by
the Governor, in consultation with the chief elected official
in the local area, and in accordance with the criteria
established under subsection (b).
(4) Single state area.--Notwithstanding subsection (b) and
paragraphs (1) and (2), if a State described in section 116(b)
indicates in the State plan that the State will be treated as a
local area for purposes of the application of this title, the
Governor may designate the State board to carry out any of the
functions described in subsection (d).
(d) Functions of Local Board.--The functions of the local board
shall include the following:
(1) Local plan.--Consistent with section 118, each local board,
in partnership with the chief elected official for the local area
involved, shall develop and submit a local plan to the Governor.
(2) Selection of operators and providers.--
(A) Selection of one-stop operators.--Consistent with
section 121(d), the local board, with the agreement of the
chief elected official--
(i) shall designate or certify one-stop operators as
described in section 121(d)(2)(A); and
(ii) may terminate for cause the eligibility of such
operators.
(B) Selection of youth providers.--Consistent with section
123, the local board shall identify eligible providers of youth
activities in the local area by awarding grants or contracts on
a competitive basis, based on the recommendations of the youth
council.
(C) Identification of eligible providers of training
services.--Consistent with section 122, the local board shall
identify eligible providers of training services described in
section 134(d)(4) in the local area.
(D) Identification of eligible providers of intensive
services.--If the one-stop operator does not provide intensive
services in a local area, the local board shall identify
eligible providers of intensive services described in section
134(d)(3) in the local area by awarding contracts.
(3) Budget and administration.--
(A) Budget.--The local board shall develop a budget for the
purpose of carrying out the duties of the local board under
this section, subject to the approval of the chief elected
official.
(B) Administration.--
(i) Grant recipient.--
(I) In general.--The chief elected official in a
local area shall serve as the local grant recipient
for, and shall be liable for any misuse of, the grant
funds allocated to the local area under sections 128
and 133, unless the chief elected official reaches an
agreement with the Governor for the Governor to act as
the local grant recipient and bear such liability.
(II) Designation.--In order to assist in the
administration of the grant funds, the chief elected
official or the Governor, where the Governor serves as
the local grant recipient for a local area, may
designate an entity to serve as a local grant
subrecipient for such funds or as a local fiscal agent.
Such designation shall not relieve the chief elected
official or the Governor of the liability for any
misuse of grant funds as described in subclause (I).
(III) Disbursal.--The local grant recipient or an
entity designated under subclause (II) shall disburse
such funds for workforce investment activities at the
direction of the local board, pursuant to the
requirements of this title, if the direction does not
violate a provision of this Act. The local grant
recipient or entity designated under subclause (II)
shall disburse the funds immediately on receiving such
direction from the local board.
(ii) Staff.--The local board may employ staff.
(iii) Grants and donations.--The local board may
solicit and accept grants and donations from sources other
than Federal funds made available under this Act.
(4) Program oversight.--The local board, in partnership with
the chief elected official, shall conduct oversight with respect to
local programs of youth activities authorized under section 129,
local employment and training activities authorized under section
134, and the one-stop delivery system in the local area.
(5) Negotiation of local performance measures.--The local
board, the chief elected official, and the Governor shall negotiate
and reach agreement on local performance measures as described in
section 136(c).
(6) Employment statistics system.--The local board shall assist
the Governor in developing the statewide employment statistics
system described in section 15(e) of the Wagner-Peyser Act.
(7) Employer linkages.--The local board shall coordinate the
workforce investment activities authorized under this subtitle and
carried out in the local area with economic development strategies
and develop other employer linkages with such activities.
(8) Connecting, brokering, and coaching.--The local board shall
promote the participation of private sector employers in the
statewide workforce investment system and ensure the effective
provision, through the system, of connecting, brokering, and
coaching activities, through intermediaries such as the one-stop
operator in the local area or through other organizations, to
assist such employers in meeting hiring needs.
(e) Sunshine Provision.--The local board shall make available to
the public, on a regular basis through open meetings, information
regarding the activities of the local board, including information
regarding the local plan prior to submission of the plan, and regarding
membership, the designation and certification of one-stop operators,
and the award of grants or contracts to eligible providers of youth
activities, and on request, minutes of formal meetings of the local
board.
(f) Limitations.--
(1) Training services.--
(A) In general.--Except as provided in subparagraph (B), no
local board may provide training services described in section
134(d)(4).
(B) Waivers of training prohibition.--The Governor of the
State in which a local board is located may, pursuant to a
request from the local board, grant a written waiver of the
prohibition set forth in subparagraph (A) (relating to the
provision of training services) for a program of training
services, if the local board--
(i) submits to the Governor a proposed request for the
waiver that includes--
(I) satisfactory evidence that there is an
insufficient number of eligible providers of such a
program of training services to meet local demand in
the local area;
(II) information demonstrating that the board meets
the requirements for an eligible provider of training
services under section 122; and
(III) information demonstrating that the program of
training services prepares participants for an
occupation that is in demand in the local area;
(ii) makes the proposed request available to eligible
providers of training services and other interested members
of the public for a public comment period of not less than
30 days; and
(iii) includes, in the final request for the waiver,
the evidence and information described in clause (i) and
the comments received pursuant to clause (ii).
(C) Duration.--A waiver granted to a local board under
subparagraph (B) shall apply for a period of not to exceed 1
year. The waiver may be renewed for additional periods of not
to exceed 1 year, pursuant to requests from the local board, if
the board meets the requirements of subparagraph (B) in making
the requests.
(D) Revocation.--The Governor may revoke a waiver granted
under this paragraph during the appropriate period described in
subparagraph (C) if the State determines that the local board
involved has engaged in a pattern of inappropriate referrals to
training services operated by the local board.
(2) Core services; intensive services; designation or
certification as one-stop operators.--A local board may provide
core services described in section 134(d)(2) or intensive services
described in section 134(d)(3) through a one-stop delivery system
described in section 134(c) or be designated or certified as a one-
stop operator only with the agreement of the chief elected official
and the Governor.
(3) Limitation on authority.--Nothing in this Act shall be
construed to provide a local board with the authority to mandate
curricula for schools.
(g) Conflict of Interest.--A member of a local board may not--
(1) vote on a matter under consideration by the local board--
(A) regarding the provision of services by such member (or
by an entity that such member represents); or
(B) that would provide direct financial benefit to such
member or the immediate family of such member; or
(2) engage in any other activity determined by the Governor to
constitute a conflict of interest as specified in the State plan.
(h) Youth Council.--
(1) Establishment.--There shall be established, as a subgroup
within each local board, a youth council appointed by the local
board, in cooperation with the chief elected official for the local
area.
(2) Membership.--The membership of each youth council--
(A) shall include--
(i) members of the local board described in
subparagraph (A) or (B) of subsection (b)(2) with special
interest or expertise in youth policy;
(ii) representatives of youth service agencies,
including juvenile justice and local law enforcement
agencies;
(iii) representatives of local public housing
authorities;
(iv) parents of eligible youth seeking assistance under
this subtitle;
(v) individuals, including former participants, and
representatives of organizations, that have experience
relating to youth activities; and
(vi) representatives of the Job Corps, as appropriate;
and
(B) may include such other individuals as the chairperson
of the local board, in cooperation with the chief elected
official, determines to be appropriate.
(3) Relationship to local board.--Members of the youth council
who are not members of the local board described in subparagraphs
(A) and (B) of subsection (b)(2) shall be voting members of the
youth council and nonvoting members of the board.
(4) Duties.--The duties of the youth council include--
(A) developing the portions of the local plan relating to
eligible youth, as determined by the chairperson of the local
board;
(B) subject to the approval of the local board and
consistent with section 123--
(i) recommending eligible providers of youth
activities, to be awarded grants or contracts on a
competitive basis by the local board to carry out the youth
activities; and
(ii) conducting oversight with respect to the eligible
providers of youth activities, in the local area;
(C) coordinating youth activities authorized under section
129 in the local area; and
(D) other duties determined to be appropriate by the
chairperson of the local board.
(i) Alternative Entity.--
(1) In general.--For purposes of complying with subsections
(a), (b), and (c), and paragraphs (1) and (2) of subsection (h), a
State may use any local entity (including a local council, regional
workforce development board, or similar entity) that--
(A) is established to serve the local area (or the service
delivery area that most closely corresponds to the local area);
(B) is in existence on December 31, 1997;
(C)(i) is established pursuant to section 102 of the Job Training
Partnership Act, as in effect on December 31, 1997; or
(ii) is substantially similar to the local board described
in subsections (a), (b), and (c), and paragraphs (1) and (2) of
subsection (h); and
(D) includes--
(i) representatives of business in the local area; and
(ii)(I) representatives of labor organizations (for a
local area in which employees are represented by labor
organizations), nominated by local labor federations; or
(II) (for a local area in which no employees are
represented by such organizations), other representatives
of employees in the local area.
(2) References.--References in this Act to a local board or a
youth council shall be considered to include such an entity or a
subgroup of such an entity, respectively.
SEC. 118. LOCAL PLAN.
(a) In General.--Each local board shall develop and submit to the
Governor a comprehensive 5-year local plan (referred to in this title
as the ``local plan''), in partnership with the appropriate chief
elected official. The plan shall be consistent with the State plan.
(b) Contents.--The local plan shall include--
(1) an identification of--
(A) the workforce investment needs of businesses,
jobseekers, and workers in the local area;
(B) the current and projected employment opportunities in
the local area; and
(C) the job skills necessary to obtain such employment
opportunities;
(2) a description of the one-stop delivery system to be
established or designated in the local area, including--
(A) a description of how the local board will ensure the
continuous improvement of eligible providers of services
through the system and ensure that such providers meet the
employment needs of local employers and participants; and
(B) a copy of each memorandum of understanding described in
section 121(c) (between the local board and each of the one-
stop partners) concerning the operation of the one-stop
delivery system in the local area;
(3) a description of the local levels of performance negotiated
with the Governor and chief elected official pursuant to section
136(c), to be used to measure the performance of the local area and
to be used by the local board for measuring the performance of the
local fiscal agent (where appropriate), eligible providers, and the
one-stop delivery system, in the local area;
(4) a description and assessment of the type and availability
of adult and dislocated worker employment and training activities
in the local area;
(5) a description of how the local board will coordinate
workforce investment activities carried out in the local area with
statewide rapid response activities, as appropriate;
(6) a description and assessment of the type and availability
of youth activities in the local area, including an identification
of successful providers of such activities;
(7) a description of the process used by the local board,
consistent with subsection (c), to provide an opportunity for
public comment, including comment by representatives of businesses
and comment by representatives of labor organizations, and input
into the development of the local plan, prior to submission of the
plan;
(8) an identification of the entity responsible for the
disbursal of grant funds described in section 117(d)(3)(B)(i)(III),
as determined by the chief elected official or the Governor under
section 117(d)(3)(B)(i);
(9) a description of the competitive process to be used to
award the grants and contracts in the local area for activities
carried out under this subtitle; and
(10) such other information as the Governor may require.
(c) Process.--Prior to the date on which the local board submits a
local plan under this section, the local board shall--
(1) make available copies of a proposed local plan to the
public through such means as public hearings and local news media;
(2) allow members of the local board and members of the public,
including representatives of business and representatives of labor
organizations, to submit comments on the proposed local plan to the
local board, not later than the end of the 30-day period beginning
on the date on which the proposed local plan is made available; and
(3) include with the local plan submitted to the Governor under
this section any such comments that represent disagreement with the
plan.
(d) Plan Submission and Approval.--A local plan submitted to the
Governor under this section shall be considered to be approved by the
Governor at the end of the 90-day period beginning on the day the
Governor receives the plan, unless the Governor makes a written
determination during the 90-day period that--
(1) deficiencies in activities carried out under this subtitle
have been identified, through audits conducted under section 184 or
otherwise, and the local area has not made acceptable progress in
implementing corrective measures to address the deficiencies; or
(2) the plan does not comply with this title.
CHAPTER 3--WORKFORCE INVESTMENT ACTIVITIES PROVIDERS
SEC. 121. ESTABLISHMENT OF ONE-STOP DELIVERY SYSTEMS.
(a) In General.--Consistent with the State plan, the local board
for a local area, with the agreement of the chief elected official for
the local area, shall--
(1) develop and enter into the memorandum of understanding
described in subsection (c) with one-stop partners;
(2) designate or certify one-stop operators under subsection
(d); and
(3) conduct oversight with respect to the one-stop delivery
system in the local area.
(b) One-Stop Partners.--
(1) Required partners.--
(A) In general.--Each entity that carries out a program or
activities described in subparagraph (B) shall--
(i) make available to participants, through a one-stop
delivery system, the services described in section
134(d)(2) that are applicable to such program or
activities; and
(ii) participate in the operation of such system
consistent with the terms of the memorandum described in
subsection (c), and with the requirements of the Federal
law in which the program or activities are authorized.
(B) Programs and activities.--The programs and activities
referred to in subparagraph (A) consist of--
(i) programs authorized under this title;
(ii) programs authorized under the Wagner-Peyser Act
(29 U.S.C. 49 et seq.);
(iii) adult education and literacy activities
authorized under title II;
(iv) programs authorized under title I of the
Rehabilitation Act of 1973 (29 U.S.C. 720 et seq.);
(v) programs authorized under section 403(a)(5) of the
Social Security Act (42 U.S.C. 603(a)(5)) (as added by
section 5001 of the Balanced Budget Act of 1997);
(vi) activities authorized under title V of the Older
Americans Act of 1965 (42 U.S.C. 3056 et seq.);
(vii) postsecondary vocational education activities
authorized under the Carl D. Perkins Vocational and Applied
Technology Education Act (20 U.S.C. 2301 et seq.);
(viii) activities authorized under chapter 2 of title
II of the Trade Act of 1974 (19 U.S.C. 2271 et seq.);
(ix) activities authorized under chapter 41 of title
38, United States Code;
(x) employment and training activities carried out
under the Community Services Block Grant Act (42 U.S.C.
9901 et seq.);
(xi) employment and training activities carried out by
the Department of Housing and Urban Development; and
(xii) programs authorized under State unemployment
compensation laws (in accordance with applicable Federal
law).
(2) Additional partners.--
(A) In general.--In addition to the entities described in
paragraph (1), other entities that carry out a human resource
program described in subparagraph (B) may--
(i) make available to participants, through the one-
stop delivery system, the services described in section
134(d)(2) that are applicable to such program; and
(ii) participate in the operation of such system
consistent with the terms of the memorandum described in
subsection (c), and with the requirements of the Federal
law in which the program is authorized;
if the local board and chief elected official involved approve
such participation.
(B) Programs.--The programs referred to in subparagraph (A)
may include--
(i) programs authorized under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.);
(ii) programs authorized under section 6(d)(4) of the
Food Stamp Act of 1977 (7 U.S.C. 2015(d)(4));
(iii) work programs authorized under section 6(o) of
the Food Stamp Act of 1977 (7 U.S.C. 2015(o));
(iv) programs authorized under the National and Community
Service Act of 1990 (42 U.S.C. 12501 et seq.); and
(v) other appropriate Federal, State, or local
programs, including programs in the private sector.
(c) Memorandum of Understanding.--
(1) Development.--The local board, with the agreement of the
chief elected official, shall develop and enter into a memorandum
of understanding (between the local board and the one-stop
partners), consistent with paragraph (2), concerning the operation
of the one-stop delivery system in the local area.
(2) Contents.--Each memorandum of understanding shall contain--
(A) provisions describing--
(i) the services to be provided through the one-stop
delivery system;
(ii) how the costs of such services and the operating
costs of the system will be funded;
(iii) methods for referral of individuals between the
one-stop operator and the one-stop partners, for the
appropriate services and activities; and
(iv) the duration of the memorandum and the procedures
for amending the memorandum during the term of the
memorandum; and
(B) such other provisions, consistent with the requirements
of this title, as the parties to the agreement determine to be
appropriate.
(d) One-Stop Operators.--
(1) Designation and certification.--Consistent with paragraphs
(2) and (3), the local board, with the agreement of the chief
elected official, is authorized to designate or certify one-stop
operators and to terminate for cause the eligibility of such
operators.
(2) Eligibility.--To be eligible to receive funds made
available under this subtitle to operate a one-stop center referred
to in section 134(c), an entity (which may be a consortium of
entities)--
(A) shall be designated or certified as a one-stop
operator--
(i) through a competitive process; or
(ii) in accordance with an agreement reached between
the local board and a consortium of entities that, at a
minimum, includes 3 or more of the one-stop partners
described in subsection (b)(1); and
(B) may be a public or private entity, or consortium of
entities, of demonstrated effectiveness, located in the local
area, which may include--
(i) a postsecondary educational institution;
(ii) an employment service agency established under the
Wagner-Peyser Act (29 U.S.C. 49 et seq.), on behalf of the
local office of the agency;
(iii) a private, nonprofit organization (including a
community-based organization);
(iv) a private for-profit entity;
(v) a government agency; and
(vi) another interested organization or entity, which
may include a local chamber of commerce or other business
organization.
(3) Exception.--Elementary schools and secondary schools shall
not be eligible for designation or certification as one-stop
operators, except that nontraditional public secondary schools and
area vocational education schools shall be eligible for such
designation or certification.
(e) Established One-Stop Delivery System.--If a one-stop delivery
system has been established in a local area prior to the date of
enactment of this Act, the local board, the chief elected official, and
the Governor involved may agree to certify an entity carrying out
activities through the system as a one-stop operator for purposes of
subsection (d), consistent with the requirements of subsection (b), of
the memorandum of understanding, and of section 134(c).
SEC. 122. IDENTIFICATION OF ELIGIBLE PROVIDERS OF TRAINING SERVICES.
(a) Eligibility Requirements.--
(1) In general.--Except as provided in subsection (h), to be
identified as an eligible provider of training services described
in section 134(d)(4) (referred to in this section as ``training
services'') in a local area and to be eligible to receive funds
made available under section 133(b) for the provision of training
services, a provider of such services shall meet the requirements
of this section.
(2) Providers.--Subject to the provisions of this section, to
be eligible to receive the funds, the provider shall be--
(A) a postsecondary educational institution that--
(i) is eligible to receive Federal funds under title IV
of the Higher Education Act of 1965 (20 U.S.C. 1070 et
seq.); and
(ii) provides a program that leads to an associate
degree, baccalaureate degree, or certificate;
(B) an entity that carries out programs under the Act of
August 16, 1937 (commonly known as the ``National
Apprenticeship Act''; 50 Stat. 664, chapter 663; 29 U.S.C. 50
et seq.); or
(C) another public or private provider of a program of
training services.
(b) Initial Eligibility Determination.--
(1) Postsecondary educational institutions and entities
carrying out apprenticeship programs.--To be initially eligible to
receive funds as described in subsection (a) to carry out a program
described in subparagraph (A) or (B) of subsection (a)(2), a
provider described in subparagraph (A) or (B), respectively, of
subsection (a)(2) shall submit an application, to the local board
for the local area in which the provider desires to provide
training services, at such time, in such manner, and containing
such information as the local board may require.
(2) Other eligible providers.--
(A) Procedure.--Each Governor of a State shall establish a
procedure for use by local boards in the State in determining
the initial eligibility of a provider described in subsection
(a)(2)(C) to receive funds as described in subsection (a) for a
program of training services, including the initial eligibility
of--
(i) a postsecondary educational institution to receive
such funds for a program not described in subsection
(a)(2)(A); and
(ii) a provider described in subsection (a)(2)(B) to
receive such funds for a program not described in
subsection (a)(2)(B).
(B) Recommendations.--In developing such procedure, the
Governor shall solicit and take into consideration the
recommendations of local boards and providers of training
services within the State.
(C) Opportunity to submit comments.--The Governor shall
provide an opportunity, during the development of the
procedure, for interested members of the public, including
representatives of business and labor organizations, to submit
comments on such procedure.
(D) Requirements.--In establishing the procedure, the
Governor shall require that, to be initially eligible to
receive funds as described in subsection (a) for a program, a
provider described in subsection (a)(2)(C)--
(i) shall submit an application, to the local board for
the local area in which the provider desires to provide
training services, at such time and in such manner as may
be required, and containing a description of the program;
(ii) if the provider provides training services through
a program on the date of application, shall include in the
application an appropriate portion of the performance
information and program cost information described in
subsection (d) for the program, as specified in the
procedure, and shall meet appropriate levels of performance
for the program, as specified in the procedure; and
(iii) if the provider does not provide training
services on such date, shall meet appropriate requirements,
as specified in the procedure.
(c) Subsequent Eligibility Determination.--
(1) Procedure.--Each Governor of a State shall establish a
procedure for use by local boards in the State in determining the
eligibility of a provider described in subsection (a)(2) to
continue to receive funds as described in subsection (a) for a
program after an initial period of eligibility under subsection (b)
(referred to in this section as ``subsequent eligibility'').
(2) Recommendations.--In developing such procedure, the
Governor shall solicit and take into consideration the
recommendations of local boards and providers of training services
within the State.
(3) Opportunity to submit comments.--The Governor shall provide
an opportunity, during the development of the procedure, for
interested members of the public, including representatives of
business and labor organizations, to submit comments on such
procedure.
(4) Considerations.--In developing such procedure, the Governor
shall ensure that the procedure requires the local boards to take
into consideration, in making the determinations of subsequent
eligibility--
(A) the specific economic, geographic, and demographic
factors in the local areas in which providers seeking
eligibility are located; and
(B) the characteristics of the populations served by
providers seeking eligibility, including the demonstrated
difficulties in serving such populations, where applicable.
(5) Requirements.--In establishing the procedure, the Governor
shall require that, to be eligible to continue to receive funds as
described in subsection (a) for a program after the initial period
of eligibility, a provider described in subsection (a)(2) shall--
(A) submit the performance information and program cost
information described in subsection (d)(1) for the program and
any additional information required to be submitted in
accordance with subsection (d)(2) for the program annually to
the appropriate local board at such time and in such manner as
may be required; and
(B) annually meet the performance levels described in
paragraph (6) for the program, as demonstrated utilizing
quarterly records described in section 136, in a manner
consistent with section 136.
(6) Levels of performance.--
(A) In general.--At a minimum, the procedure described in
paragraph (1) shall require the provider to meet minimum
acceptable levels of performance based on the performance
information referred to in paragraph (5)(A).
(B) Higher levels of performance eligibility.--The local
board may require higher levels of performance than the levels
referred to in subparagraph (A) for subsequent eligibility to
receive funds as described in subsection (a).
(d) Performance and Cost Information.--
(1) Required information.--For a provider of training services
to be determined to be subsequently eligible under subsection (c)
to receive funds as described in subsection (a), such provider
shall, under subsection (c), submit--
(A) verifiable program-specific performance information
consisting of--
(i) program information, including--
(I) the program completion rates for all
individuals participating in the applicable program
conducted by the provider;
(II) the percentage of all individuals
participating in the applicable program who obtain
unsubsidized employment, which may also include
information specifying the percentage of the
individuals who obtain unsubsidized employment in an
occupation related to the program conducted; and
(III) the wages at placement in employment of all
individuals participating in the applicable program;
and
(ii) training services information for all participants
who received assistance under section 134 to participate in
the applicable program, including--
(I) the percentage of participants who have
completed the applicable program and who are placed in
unsubsidized employment;
(II) the retention rates in unsubsidized employment
of participants who have completed the applicable
program, 6 months after the first day of the
employment;
(III) the wages received by participants who have
completed the applicable program, 6 months after the
first day of the employment involved; and
(IV) where appropriate, the rates of licensure or
certification, attainment of academic degrees or
equivalents, or attainment of other measures of skills,
of the graduates of the applicable program; and
(B) information on program costs (such as tuition and fees)
for participants in the applicable program.
(2) Additional information.--Subject to paragraph (3), in
addition to the performance information described in paragraph
(1)--
(A) the Governor may require that a provider submit, under
subsection (c), such other verifiable program-specific
performance information as the Governor determines to be
appropriate to obtain such subsequent eligibility, which may
include information relating to--
(i) retention rates in employment and the subsequent
wages of all individuals who complete the applicable
program;
(ii) where appropriate, the rates of licensure or
certification of all individuals who complete the program;
and
(iii) the percentage of individuals who complete the
program who attain industry-recognized occupational skills
in the subject, occupation, or industry for which training
is provided through the program, where applicable; and
(B) the Governor, or the local board, may require a
provider to submit, under subsection (c), other verifiable
program-specific performance information to obtain such
subsequent eligibility.
(3) Conditions.--
(A) In general.--If the Governor or a local board requests
additional information under paragraph (2) that imposes
extraordinary costs on providers, or if providers experience
extraordinary costs in the collection of information required
under paragraph (1)(A)(ii), the Governor or the local board
shall provide access to cost-effective methods for the
collection of the information involved, or the Governor shall
provide additional resources to assist providers in the
collection of such information from funds made available as
described in sections 128(a) and 133(a)(1), as appropriate.
(B) Higher education eligibility requirements.--The local
board and the designated State agency described in subsection
(i) may accept program-specific performance information
consistent with the requirements for eligibility under title IV
of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.)
from a provider for purposes of enabling the provider to
fulfill the applicable requirements of this subsection, if such
information is substantially similar to the information
otherwise required under this subsection.
(e) Local Identification.--
(1) In general.--The local board shall place on a list
providers submitting an application under subsection (b)(1) and
providers determined to be initially eligible under subsection
(b)(2), and retain on the list providers determined to be
subsequently eligible under subsection (c), to receive funds as
described in subsection (a) for the provision of training services
in the local area served by the local board. The list of providers
shall be accompanied by any performance information and program
cost information submitted under subsection (b) or (c) by the
provider.
(2) Submission to state agency.--On placing or retaining a
provider on the list, the local board shall submit, to the
designated State agency described in subsection (i), the list and
the performance information and program cost information referred
to in paragraph (1). If the agency determines, within 30 days after
the date of the submission, that the provider does not meet the
performance levels described in subsection (c)(6) for the program
(where applicable), the agency may remove the provider from the
list for the program. The agency may not remove from the list an
agency submitting an application under subsection (b)(1).
(3) Identification of eligible providers.--A provider who is
placed or retained on the list under paragraph (1), and is not
removed by the designated State agency under paragraph (2), for a
program, shall be considered to be identified as an eligible
provider of training services for the program.
(4) Availability.--
(A) State list.--The designated State agency shall compile
a single list of the providers identified under paragraph (3)
from all local areas in the State and disseminate such list,
and the performance information and program cost information
described in paragraph (1), to the one-stop delivery systems
within the State. Such list and information shall be made
widely available to participants in employment and training
activities authorized under section 134 and others through the
one-stop delivery system.
(B) Selection from state list.--Individuals eligible to
receive training services under section 134(d)(4) shall have
the opportunity to select any of the eligible providers, from
any of the local areas in the State, that are included on the
list described in subparagraph (A) to provide the services,
consistent with the requirements of section 134.
(5) Acceptance of individual training accounts by other
states.--States may enter into agreements, on a reciprocal basis,
to permit eligible providers of training services in a State to
accept individual training accounts provided in another State.
(f) Enforcement.--
(1) Accuracy of information.--If the designated State agency,
after consultation with the local board involved, determines that
an eligible provider or individual supplying information on behalf
of the provider intentionally supplies inaccurate information under
this section, the agency shall terminate the eligibility of the
provider to receive funds described in subsection (a) for any
program for a period of time, but not less than 2 years.
(2) Noncompliance.--If the designated State agency, or the
local board working with the State agency, determines that an
eligible provider described in subsection (a) substantially
violates any requirement under this Act, the agency, or the local
board working with the State agency, may terminate the eligibility
of such provider to receive funds described in subsection (a) for
the program involved or take such other action as the agency or
local board determines to be appropriate.
(3) Repayment.--A provider whose eligibility is terminated
under paragraph (1) or (2) for a program shall be liable for
repayment of all funds described in subsection (a) received for the
program during any period of noncompliance described in such
paragraph.
(4) Construction.--This subsection and subsection (g) shall be
construed to provide remedies and penalties that supplement, but do
not supplant, other civil and criminal remedies and penalties.
(g) Appeal.--The Governor shall establish procedures for providers
of training services to appeal a denial of eligibility by the local
board or the designated State agency under subsection (b), (c), or (e),
a termination of eligibility or other action by the board or agency
under subsection (f), or a denial of eligibility by a one-stop operator
under subsection (h). Such procedures shall provide an opportunity for
a hearing and prescribe appropriate time limits to ensure prompt
resolution of the appeal.
(h) On-the-Job Training or Customized Training Exception.--
(1) In general.--Providers of on-the-job training or customized
training shall not be subject to the requirements of subsections
(a) through (e).
(2) Collection and dissemination of information.--A one-stop
operator in a local area shall collect such performance information
from on-the-job training and customized training providers as the
Governor may require, determine whether the providers meet such
performance criteria as the Governor may require, and disseminate
information identifying providers that meet the criteria as
eligible providers, and the performance information, through the
one-stop delivery system. Providers determined to meet the criteria
shall be considered to be identified as eligible providers of
training services.
(i) Administration.--The Governor shall designate a State agency to
make the determinations described in subsection (e)(2), take the
enforcement actions described in subsection (f), and carry out other
duties described in this section.
SEC. 123. IDENTIFICATION OF ELIGIBLE PROVIDERS OF YOUTH ACTIVITIES.
From funds allocated under paragraph (2)(A) or (3) of section 128(b) to a local area, the local board for such area shall identify eligible providers of youth activities by awarding grants or contracts on a competitive basis, based on the recommendations of the youth council and on the criteria contained in the State plan, to the providers to carry out the activities, and shall conduct oversight with respect to the providers, in the local area.
CHAPTER 4--YOUTH ACTIVITIES
SEC. 126. GENERAL AUTHORIZATION.
The Secretary shall make an allotment under section 127(b)(1)(C) to each State that meets the requirements of section 112 and a grant to each outlying area that complies with the requirements of this title, to assist the State or outlying area, and to enable the State or outlying area to assist local areas, for the purpose of providing workforce investment activities for eligible youth in the State or outlying area and in the local areas.
SEC. 127. STATE ALLOTMENTS.
(a) In General.--The Secretary shall--
(1) for each fiscal year in which the amount appropriated under
section 137(a) exceeds $1,000,000,000, reserve a portion determined
under subsection (b)(1)(A) of the amount appropriated under section
137(a) for use under sections 167 (relating to migrant and seasonal
farmworker programs) and 169 (relating to youth opportunity
grants); and
(2) use the remainder of the amount appropriated under section
137(a) for a fiscal year to make allotments and grants in
accordance with subparagraphs (B) and (C) of subsection (b)(1) and
make funds available for use under section 166 (relating to Native
American programs).
(b) Allotment Among States.--
(1) Youth activities.--
(A) Youth opportunity grants.--
(i) In general.--For each fiscal year in which the
amount appropriated under section 137(a) exceeds
$1,000,000,000, the Secretary shall reserve a portion of
the amount to provide youth opportunity grants and other
activities under section 169 (relating to youth opportunity
grants) and provide youth activities under section 167
(relating to migrant and seasonal farmworker programs).
(ii) Portion.--The portion referred to in clause (i)
shall equal, for a fiscal year--
(I) except as provided in subclause (II), the
difference obtained by subtracting $1,000,000,000 from
the amount appropriated under section 137(a) for the
fiscal year; or
(II) for any fiscal year in which the amount is
$1,250,000,000 or greater, $250,000,000.
(iii) Youth activities for farmworkers.--From the
portion described in clause (i) for a fiscal year, the
Secretary shall make available 4 percent of such portion to
provide youth activities under section 167.
(iv) Role model academy project.--From the portion
described in clause (i) for fiscal year 1999, the Secretary
shall make available such sums as the Secretary determines
to be appropriate to carry out section 169(g).
(B) Outlying areas.--
(i) In general.--From the amount made available under
subsection (a)(2) for a fiscal year, the Secretary shall
reserve not more than 1/4 of 1 percent of the amount
appropriated under section 137(a) for the fiscal year--
(I) to provide assistance to the outlying areas to
carry out youth activities and statewide workforce
investment activities; and
(II) for each of fiscal years 1999, 2000, and 2001,
to carry out the competition described in clause (ii),
except that the funds reserved to carry out such clause
for any such fiscal year shall not exceed the amount
reserved for the Freely Associated States for fiscal
year 1997, from amounts reserved under sections 252(a)
and 262(a)(1) of the Job Training Partnership Act (as
in effect on the day before the date of enactment of
this Act).
(ii) Limitation for freely associated states.--
(I) Competitive grants.--The Secretary shall use
funds described in clause (i)(II) to award grants to
Guam, American Samoa, the Commonwealth of the Northern
Mariana Islands, and the Freely Associated States to
carry out youth activities and statewide workforce
investment activities.
(II) Award basis.--The Secretary shall award grants
pursuant to subclause (I) on a competitive basis and
pursuant to the recommendations of experts in the field
of employment and training, working through the Pacific
Region Educational Laboratory in Honolulu, Hawaii.
(III) Assistance requirements.--Any Freely
Associated State that desires to receive assistance
under this subparagraph shall submit an application to
the Secretary and shall include in the application for
assistance--
(aa) information demonstrating that the Freely
Associated State will meet all conditions that
apply to States under this title;
(bb) an assurance that, notwithstanding any
other provision of this title, the Freely
Associated State will use such assistance only for
the direct provision of services; and
(cc) such other information and assurances as
the Secretary may require.
(IV) Termination of eligibility.--Notwithstanding
any other provision of law, the Freely Associated
States shall not receive any assistance under this
subparagraph for any program year that begins after
September 30, 2001.
(V) Administrative costs.--The Secretary may
provide not more than 5 percent of the funds made
available for grants under subclause (I) to pay the
administrative costs of the Pacific Region Educational
Laboratory in Honolulu, Hawaii, regarding activities
assisted under this clause.
(iii) Additional requirement.--The provisions of Public
Law 95-134, permitting the consolidation of grants by the
outlying areas, shall not apply to assistance provided to
those areas, including the Freely Associated States, under
this subparagraph.
(C) States.--
(i) In general.--After determining the amounts to be
reserved under subparagraph (A) (if any) and subparagraph
(B), the Secretary shall--
(I) from the amount referred to in subsection
(a)(2) for a fiscal year, make available not more than
1.5 percent to provide youth activities under section
166 (relating to Native Americans); and
(II) allot the remainder of the amount referred to
in subsection (a)(2) for a fiscal year to the States
pursuant to clause (ii) for youth activities and
statewide workforce investment activities.
(ii) Formula.--Subject to clauses (iii) and (iv), of
the remainder--
(I) 33 1/3 percent shall be allotted on the basis
of the relative number of unemployed individuals in
areas of substantial unemployment in each State,
compared to the total number of unemployed individuals
in areas of substantial unemployment in all States;
(II) 33 1/3 percent shall be allotted on the basis
of the relative excess number of unemployed individuals
in each State, compared to the total excess number of
unemployed individuals in all States; and
(III) 33 1/3 percent shall be allotted on the
basis of the relative number of disadvantaged youth in
each State, compared to the total number of
disadvantaged youth in all States, except as described
in clause (iii).
(iii) Calculation.--In determining an allotment under
clause (ii)(III) for any State in which there is a local
area designated under section 116(a)(2)(B) (relating to the
area served by a rural concentrated employment program
grant recipient), the allotment shall be based on the
higher of--
(I) the number of individuals who are age 16
through 21 in families with an income below the low-
income level in such area; or
(II) the number of disadvantaged youth in such
area.
(iv) Minimum and maximum percentages and minimum
allotments.--In making allotments under this subparagraph,
the Secretary shall ensure the following:
(I) Minimum percentage and allotment.--Subject to
subclause (IV), the Secretary shall ensure that no
State shall receive an allotment for a fiscal year that
is less than the greater of--
(aa) an amount based on 90 percent of the
allotment percentage of the State for the preceding
fiscal year; or
(bb) 100 percent of the total of the allotments
of the State under sections 252 and 262 of the Job
Training Partnership Act (as in effect on the day
before the date of enactment of this Act) for
fiscal year 1998.
(II) Small state minimum allotment.-- Subject to
subclauses (I), (III), and (IV), the Secretary shall
ensure that no State shall receive an allotment under
this subparagraph that is less than the total of--
(aa) 3/10 of 1 percent of $1,000,000,000 of
the remainder described in clause (i)(II) for the
fiscal year; and
(bb) if the remainder described in clause
(i)(II) for the fiscal year exceeds $1,000,000,000,
2/5 of 1 percent of the excess.
(III) Maximum percentage.--Subject to subclause
(I), the Secretary shall ensure that no State shall
receive an allotment percentage for a fiscal year that
is more than 130 percent of the allotment percentage of
the State for the preceding fiscal year.
(IV) Minimum funding.--In any fiscal year in which
the remainder described in clause (i)(II) does not
exceed $1,000,000,000, the minimum allotments under
subclauses (I) and (II) shall be calculated by the
methodology for calculating the corresponding
allotments under parts B and C of title II of the Job
Training Partnership Act, as in effect on July 1, 1998.
(2) Definitions.--For the purpose of the formula specified in
paragraph (1)(C):
(A) Allotment percentage.--The term ``allotment
percentage'', used with respect to fiscal year 2000 or a
subsequent fiscal year, means a percentage of the remainder
described in paragraph (1)(C)(i)(II) that is received through
an allotment made under paragraph (1)(C) for the fiscal year.
The term, used with respect to fiscal year 1998 or 1999, means
the percentage of the amounts allotted to States under sections
252(b) and 262(a) of the Job Training Partnership Act (as in
effect on the day before the date of enactment of this Act)
that is received under such sections by the State involved for
fiscal year 1998 or 1999.
(B) Area of substantial unemployment.--The term ``area of
substantial unemployment'' means any area that is of sufficient
size and scope to sustain a program of workforce investment
activities carried out under this subtitle and that has an
average rate of unemployment of at least 6.5 percent for the
most recent 12 months, as determined by the Secretary. For
purposes of this subparagraph, determinations of areas of
substantial unemployment shall be made once each fiscal year.
(C) Disadvantaged youth.--Subject to paragraph (3), the
term ``disadvantaged youth'' means an individual who is age 16
through 21 who received an income, or is a member of a family
that received a total family income, that, in relation to
family size, does not exceed the higher of--
(i) the poverty line; or
(ii) 70 percent of the lower living standard income
level.
(D) Excess number.--The term ``excess number'' means, used
with respect to the excess number of unemployed individuals
within a State, the higher of--
(i) the number that represents the number of unemployed
individuals in excess of 4.5 percent of the civilian labor
force in the State; or
(ii) the number that represents the number of
unemployed individuals in excess of 4.5 percent of the
civilian labor force in areas of substantial unemployment
in such State.
(E) Low-income level.--The term ``low-income level'' means
$7,000 with respect to income in 1969, and for any later year
means that amount that bears the same relationship to $7,000 as
the Consumer Price Index for that year bears to the Consumer
Price Index for 1969, rounded to the nearest $1,000.
(3) Special rule.--For the purpose of the formula specified in
paragraph (1)(C), the Secretary shall, as appropriate and to the
extent practicable, exclude college students and members of the
Armed Forces from the determination of the number of disadvantaged
youth.
(4) Definition.--In this subsection, the term ``Freely
Associated State'' means the Republic of the Marshall Islands, the
Federated States of Micronesia, and the Republic of Palau.
(c) Reallotment.--
(1) In general.--The Secretary shall, in accordance with this
subsection, reallot to eligible States amounts that are allotted
under this section for youth activities and statewide workforce
investment activities and that are available for reallotment.
(2) Amount.--The amount available for reallotment for a program
year is equal to the amount by which the unobligated balance of the
State allotment under this section for such activities, at the end
of the program year prior to the program year for which the
determination under this paragraph is made, exceeds 20 percent of
such allotment for the prior program year.
(3) Reallotment.--In making reallotments to eligible States of
amounts available pursuant to paragraph (2) for a program year, the
Secretary shall allot to each eligible State an amount based on the
relative amount allotted to such State under this section for such
activities for the prior program year, as compared to the total
amount allotted to all eligible States under this section for such
activities for such prior program year.
(4) Eligibility.--For purposes of this subsection, an eligible
State means a State that has obligated at least 80 percent of the
State allotment under this section for such activities for the
program year prior to the program year for which the determination
under paragraph (2) is made.
(5) Procedures.--The Governor of each State shall prescribe
uniform procedures for the obligation of funds by local areas
within the State in order to avoid the requirement that funds be
made available for reallotment under this subsection. The Governor
shall further prescribe equitable procedures for making funds
available from the State and local areas in the event that a State
is required to make funds available for reallotment under this
subsection.
SEC. 128. WITHIN STATE ALLOCATIONS.
(a) Reservations for State Activities.--
(1) In general.--The Governor of a State shall reserve not more
than 15 percent of each of the amounts allotted to the State under
section 127(b)(1)(C) and paragraphs (1)(B) and (2)(B) of section
132(b) for a fiscal year for statewide workforce investment
activities.
(2) Use of funds.--Regardless of whether the reserved amounts
were allotted under section 127(b)(1)(C), or under paragraph (1)(B)
or (2)(B) of section 132(b), the Governor may use the reserved
amounts to carry out statewide youth activities described in
section 129(b) or statewide employment and training activities, for
adults or for dislocated workers, described in paragraph (2)(B) or
(3) of section 134(a).
(b) Within State Allocation.--
(1) Methods.--The Governor, acting in accordance with the State
plan, and after consulting with chief elected officials in the
local areas, shall allocate the funds that are allotted to the
State for youth activities and statewide workforce investment
activities under section 127(b)(1)(C) and are not reserved under
subsection (a), in accordance with paragraph (2) or (3).
(2) Formula allocation.--
(A) Youth activities.--
(i) Allocation.--In allocating the funds described in
paragraph (1) to local areas, a State may allocate--
(I) 33 1/3 percent of the funds on the basis
described in section 127(b)(1)(C)(ii)(I);
(II) 33 1/3 percent of the funds on the basis
described in section 127(b)(1)(C)(ii)(II); and
(III) 33 1/3 percent of the funds on the basis
described in clauses (ii)(III) and (iii) of section
127(b)(1)(C).
(ii) Minimum percentage.--Effective at the end of the
second full fiscal year after the date on which a local
area is designated under section 116, the local area shall
not receive an allocation percentage for a fiscal year that
is less than 90 percent of the average allocation
percentage of the local area for the 2 preceding fiscal
years. Amounts necessary for increasing such allocations to
local areas to comply with the preceding sentence shall be
obtained by ratably reducing the allocations to be made to
other local areas under this subparagraph.
(iii) Definition.--The term ``allocation percentage'',
used with respect to fiscal year 2000 or a subsequent
fiscal year, means a percentage of the funds referred to in
clause (i), received through an allocation made under this
subparagraph, for the fiscal year.
(B) Application.--For purposes of carrying out subparagraph
(A)--
(i) references in section 127(b) to a State shall be
deemed to be references to a local area;
(ii) references in section 127(b) to all States shall
be deemed to be references to all local areas in the State
involved; and
(iii) except as described in clause (i), references in
section 127(b)(1) to the term ``excess number'' shall be
considered to be references to the term as defined in
section 127(b)(2).
(3) Youth discretionary allocation.--In lieu of making the
allocation described in paragraph (2)(A), in allocating the funds
described in paragraph (1) to local areas, a State may distribute--
(A) a portion equal to not less than 70 percent of the
funds in accordance with paragraph (2)(A); and
(B) the remaining portion of the funds on the basis of a
formula that--
(i) incorporates additional factors (other than the
factors described in paragraph (2)(A)) relating to--
(I) excess youth poverty in urban, rural, and
suburban local areas; and
(II) excess unemployment above the State average in
urban, rural, and suburban local areas; and
(ii) was developed by the State board and approved by
the Secretary as part of the State plan.
(4) Limitation.--
(A) In general.--Of the amount allocated to a local area
under this subsection and section 133(b) for a fiscal year, not
more than 10 percent of the amount may be used by the local
board for the administrative cost of carrying out local
workforce investment activities described in subsection (d) or
(e) of section 134 or in section 129(c).
(B) Use of funds.--Funds made available for administrative
costs under subparagraph (A) may be used for the administrative
cost of any of the local workforce investment activities
described in subsection (d) or (e) of section 134 or in section
129(c), regardless of whether the funds were allocated under
this subsection or section 133(b).
(C) Regulations.--The Secretary, after consulting with the
Governors, shall develop and issue regulations that define the
term ``administrative cost'' for purposes of this title. Such
definition shall be consistent with generally accepted
accounting principles.
(c) Reallocation Among Local Areas.--
(1) In general.--The Governor may, in accordance with this
subsection, reallocate to eligible local areas within the State
amounts that are allocated under paragraph (2)(A) or (3) of
subsection (b) for youth activities and that are available for
reallocation.
(2) Amount.--The amount available for reallocation for a
program year is equal to the amount by which the unobligated
balance of the local area allocation under paragraph (2)(A) or (3)
of subsection (b) for such activities, at the end of the program
year prior to the program year for which the determination under
this paragraph is made exceeds 20 percent of such allocation for
the prior program year.
(3) Reallocation.--In making reallocations to eligible local
areas of amounts available pursuant to paragraph (2) for a program
year, the Governor shall allocate to each eligible local area
within the State an amount based on the relative amount allocated
to such local area under subsection (b)(3) for such activities for
the prior program year, as compared to the total amount allocated
to all eligible local areas in the State under subsection (b)(3)
for such activities for such prior program year. For purposes of
this paragraph, local areas that received allocations under
subsection (b)(2)(A) for the prior program year shall be treated as
if the local areas received allocations under subsection (b)(3) for
such year.
(4) Eligibility.--For purposes of this subsection, an eligible
local area means a local area that has obligated at least 80
percent of the local area allocation under paragraph (2)(A) or (3)
of subsection (b) for such activities, for the program year prior
to the program year for which the determination under paragraph (2)
is made.
SEC. 129. USE OF FUNDS FOR YOUTH ACTIVITIES.
(a) Purposes.--The purposes of this section are--
(1) to provide, to eligible youth seeking assistance in
achieving academic and employment success, effective and
comprehensive activities, which shall include a variety of options
for improving educational and skill competencies and provide
effective connections to employers;
(2) to ensure on-going mentoring opportunities for eligible
youth with adults committed to providing such opportunities;
(3) to provide opportunities for training to eligible youth;
(4) to provide continued supportive services for eligible
youth;
(5) to provide incentives for recognition and achievement to
eligible youth; and
(6) to provide opportunities for eligible youth in activities
related to leadership, development, decisionmaking, citizenship,
and community service.
(b) Statewide Youth Activities.--
(1) In general.--Funds reserved by a Governor for a State as
described in sections 128(a) and 133(a)(1)--
(A) shall be used to carry out the statewide youth
activities described in paragraph (2); and
(B) may be used to carry out any of the statewide youth
activities described in paragraph (3),
regardless of whether the funds were allotted to the State under
section 127(b)(1) or under paragraph (1) or (2) of section 132(b).
(2) Required statewide youth activities.--A State shall use
funds reserved as described in sections 128(a) and 133(a)(1)
(regardless of whether the funds were allotted to the State under
section 127(b)(1) or paragraph (1) or (2) of section 132(b)) to
carry out statewide youth activities, which shall include--
(A) disseminating a list of eligible providers of youth
activities described in section 123;
(B) carrying out activities described in clauses (ii)
through (vi) of section 134(a)(2)(B), except that references in
such clauses to activities authorized under section 134 shall
be considered to be references to activities authorized under
this section; and
(C) providing additional assistance to local areas that
have high concentrations of eligible youth to carry out the
activities described in subsection (c).
(3) Allowable statewide youth activities.--A State may use
funds reserved as described in sections 128(a) and 133(a)(1)
(regardless of whether the funds were allotted to the State under
section 127(b)(1) or paragraph (1) or (2) of section 132(b)) to
carry out additional statewide youth activities, which may
include--
(A) carrying out activities described in clauses (i), (ii),
(iii), (iv)(II), and (vi)(II) of section 134(a)(3)(A), except
that references in such clauses to activities authorized under
section 134 shall be considered to be references to activities
authorized under this section; and
(B) carrying out, on a statewide basis, activities
described in subsection (c).
(4) Prohibition.--No funds described in this subsection or
section 134(a) shall be used to develop or implement education
curricula for school systems in the State.
(c) Local Elements and Requirements.--
(1) Program design.--Funds allocated to a local area for
eligible youth under paragraph (2)(A) or (3), as appropriate, of
section 128(b) shall be used to carry out, for eligible youth,
programs that--
(A) provide an objective assessment of the academic levels,
skill levels, and service needs of each participant, which
assessment shall include a review of basic skills, occupational
skills, prior work experience, employability, interests,
aptitudes (including interests and aptitudes for nontraditional
jobs), supportive service needs, and developmental needs of
such participant, except that a new assessment of a participant
is not required if the provider carrying out such a program
determines it is appropriate to use a recent assessment of the
participant conducted pursuant to another education or training
program;
(B) develop service strategies for each participant that
shall identify an employment goal (including, in appropriate
circumstances, nontraditional employment), appropriate
achievement objectives, and appropriate services for the
participant taking into account the assessment conducted
pursuant to subparagraph (A), except that a new service
strategy for a participant is not required if the provider
carrying out such a program determines it is appropriate to use
a recent service strategy developed for the participant under
another education or training program; and
(C) provide--
(i) preparation for postsecondary educational
opportunities, in appropriate cases;
(ii) strong linkages between academic and occupational
learning;
(iii) preparation for unsubsidized employment
opportunities, in appropriate cases; and
(iv) effective connections to intermediaries with
strong links to--
(I) the job market; and
(II) local and regional employers.
(2) Program elements.--The programs described in paragraph (1)
shall provide elements consisting of--
(A) tutoring, study skills training, and instruction,
leading to completion of secondary school, including dropout
prevention strategies;
(B) alternative secondary school services, as appropriate;
(C) summer employment opportunities that are directly
linked to academic and occupational learning;
(D) as appropriate, paid and unpaid work experiences,
including internships and job shadowing;
(E) occupational skill training, as appropriate;
(F) leadership development opportunities, which may include
community service and peer-centered activities encouraging
responsibility and other positive social behaviors during non-
school hours, as appropriate;
(G) supportive services;
(H) adult mentoring for the period of participation and a
subsequent period, for a total of not less than 12 months;
(I) followup services for not less than 12 months after the
completion of participation, as appropriate; and
(J) comprehensive guidance and counseling, which may
include drug and alcohol abuse counseling and referral, as
appropriate.
(3) Additional requirements.--
(A) Information and referrals.--Each local board shall
ensure that each participant or applicant who meets the minimum
income criteria to be considered an eligible youth shall be
provided--
(i) information on the full array of applicable or
appropriate services that are available through the local
board or other eligible providers or one-stop partners,
including those receiving funds under this subtitle; and
(ii) referral to appropriate training and educational
programs that have the capacity to serve the participant or
applicant either on a sequential or concurrent basis.
(B) Applicants not meeting enrollment requirements.--Each
eligible provider of a program of youth activities shall ensure
that an eligible applicant who does not meet the enrollment
requirements of the particular program or who cannot be served
shall be referred for further assessment, as necessary, and
referred to appropriate programs in accordance with
subparagraph (A) to meet the basic skills and training needs of
the applicant.
(C) Involvement in design and implementation.--The local
board shall ensure that parents, participants, and other
members of the community with experience relating to programs
for youth are involved in the design and implementation of the
programs described in paragraph (1).
(4) Priority.--
(A) In general.--At a minimum, 30 percent of the funds
described in paragraph (1) shall be used to provide youth
activities to out-of-school youth.
(B) Exception.--A State that receives a minimum allotment
under section 127(b)(1) in accordance with section
127(b)(1)(C)(iv)(II) or under section 132(b)(1) in accordance
with section 132(b)(1)(B)(iv)(II) may reduce the percentage
described in subparagraph (A) for a local area in the State,
if--
(i) after an analysis of the eligible youth population
in the local area, the State determines that the local area
will be unable to meet the percentage described in
subparagraph (A) due to a low number of out-of-school
youth; and
(ii)(I) the State submits to the Secretary, for the
local area, a request including a proposed reduced
percentage for purposes of subparagraph (A), and the
summary of the eligible youth population analysis; and
(II) the request is approved by the Secretary.
(5) Exceptions.--Not more than 5 percent of participants
assisted under this section in each local area may be individuals
who do not meet the minimum income criteria to be considered
eligible youth, if such individuals are within one or more of the
following categories:
(A) Individuals who are school dropouts.
(B) Individuals who are basic skills deficient.
(C) Individuals with educational attainment that is one or
more grade levels below the grade level appropriate to the age
of the individuals.
(D) Individuals who are pregnant or parenting.
(E) Individuals with disabilities, including learning
disabilities.
(F) Individuals who are homeless or runaway youth.
(G) Individuals who are offenders.
(H) Other eligible youth who face serious barriers to
employment as identified by the local board.
(6) Prohibitions.--
(A) Prohibition against federal control of education.--No
provision of this Act shall be construed to authorize any
department, agency, officer, or employee of the United States
to exercise any direction, supervision, or control over the
curriculum, program of instruction, administration, or
personnel of any educational institution, school, or school
system, or over the selection of library resources, textbooks,
or other printed or published instructional materials by any
educational institution, school, or school system.
(B) Nonduplication.--All of the funds made available under
this Act shall be used in accordance with the requirements of
this Act. None of the funds made available under this Act may
be used to provide funding under the School-to-Work
Opportunities Act of 1994 (20 U.S.C. 6101 et seq.) or to carry
out, through programs funded under this Act, activities that
were funded under the School-to-Work Opportunities Act of 1994,
unless the programs funded under this Act serve only those
participants eligible to participate in the programs under this
Act.
(C) Noninterference and nonreplacement of regular academic
requirements.--No funds described in paragraph (1) shall be
used to provide an activity for eligible youth who are not
school dropouts if participation in the activity would
interfere with or replace the regular academic requirements of
the youth.
(7) Linkages.--In coordinating the programs authorized under
this section, youth councils shall establish linkages with
educational agencies responsible for services to participants as
appropriate.
(8) Volunteers.--The local board shall make opportunities
available for individuals who have successfully participated in
programs carried out under this section to volunteer assistance to
participants in the form of mentoring, tutoring, and other
activities.
CHAPTER 5--ADULT AND DISLOCATED WORKER EMPLOYMENT AND TRAINING ACTIVITIES
SEC. 131. GENERAL AUTHORIZATION.
The Secretary shall make allotments under paragraphs (1)(B) and (2)(B) of section 132(b) to each State that meets the requirements of section 112 and a grant to each outlying area that complies with the requirements of this title, to assist the State or outlying area, and to enable the State or outlying area to assist local areas, for the purpose of providing workforce investment activities for adults, and dislocated workers, in the State or outlying area and in the local areas.
SEC. 132. STATE ALLOTMENTS.
(a) In General.--The Secretary shall--
(1) make allotments and grants from the total amount
appropriated under section 137(b) for a fiscal year in accordance
with subsection (b)(1); and
(2)(A) reserve 20 percent of the amount appropriated under
section 137(c) for a fiscal year for use under subsection
(b)(2)(A), and under sections 170(b) (relating to dislocated worker
technical assistance), 171(d) (relating to dislocated worker
projects), and 173 (relating to national emergency grants); and
(B) make allotments from 80 percent of the amount appropriated
under section 137(c) for a fiscal year in accordance with
subsection (b)(2)(B).
(b) Allotment Among States.--
(1) Adult employment and training activities.--
(A) Reservation for outlying areas.--
(i) In general.--From the amount made available under
subsection (a)(1) for a fiscal year, the Secretary shall
reserve not more than 1/4 of 1 percent to provide
assistance to the outlying areas.
(ii) Applicability of additional requirements.--From
the amount reserved under clause (i), the Secretary shall
provide assistance to the outlying areas for adult
employment and training activities and statewide workforce
investment activities in accordance with the requirements
of section 127(b)(1)(B), except that the reference in
section 127(b)(1)(B)(i)(II) to sections 252(d) and
262(a)(1) of the Job Training Partnership Act shall be
deemed to be a reference to section 202(a)(1) of the Job
Training Partnership Act (as in effect on the day before
the date of enactment of this Act).
(B) States.--
(i) In general.--After determining the amount to be
reserved under subparagraph (A), the Secretary shall allot
the remainder of the amount referred to in subsection
(a)(1) for a fiscal year to the States pursuant to clause
(ii) for adult employment and training activities and
statewide workforce investment activities.
(ii) Formula.--Subject to clauses (iii) and (iv), of
the remainder--
(I) 33 1/3 percent shall be allotted on the basis
of the relative number of unemployed individuals in
areas of substantial unemployment in each State,
compared to the total number of unemployed individuals
in areas of substantial unemployment in all States;
(II) 33 1/3 percent shall be allotted on the basis
of the relative excess number of unemployed individuals
in each State, compared to the total excess number of
unemployed individuals in all States; and
(III) 33 1/3 percent shall be allotted on the
basis of the relative number of disadvantaged adults in
each State, compared to the total number of
disadvantaged adults in all States, except as described
in clause (iii).
(iii) Calculation.--In determining an allotment under
clause (ii)(III) for any State in which there is a local
area designated under section 116(a)(2)(B), the allotment
shall be based on the higher of--
(I) the number of adults in families with an income
below the low-income level in such area; or
(II) the number of disadvantaged adults in such
area.
(iv) Minimum and maximum percentages and minimum
allotments.--In making allotments under this subparagraph,
the Secretary shall ensure the following:
(I) Minimum percentage and allotment.--Subject to
subclause (IV), the Secretary shall ensure that no
State shall receive an allotment for a fiscal year that
is less than the greater of--
(aa) an amount based on 90 percent of the
allotment percentage of the State for the preceding
fiscal year; or
(bb) 100 percent of the allotment of the State
under section 202 of the Job Training Partnership Act
(as in effect on the day before the date of enactment
of this Act) for fiscal year 1998.
(II) Small state minimum allotment.--Subject to
subclauses (I), (III), and (IV), the Secretary shall
ensure that no State shall receive an allotment under
this subparagraph that is less than the total of--
(aa) 3/10 of 1 percent of $960,000,000 of the
remainder described in clause (i) for the fiscal
year; and
(bb) if the remainder described in clause (i)
for the fiscal year exceeds $960,000,000, 2/5 of
1 percent of the excess.
(III) Maximum percentage.--Subject to subclause
(I), the Secretary shall ensure that no State shall
receive an allotment percentage for a fiscal year that
is more than 130 percent of the allotment percentage of
the State for the preceding fiscal year.
(IV) Minimum funding.--In any fiscal year in which
the remainder described in clause (i) does not exceed
$960,000,000, the minimum allotments under subclauses
(I) and (II) shall be calculated by the methodology for
calculating the corresponding allotments under part A
of title II of the Job Training Partnership Act, as in
effect on July 1, 1998.
(v) Definitions.--For the purpose of the formula
specified in this subparagraph:
(I) Adult.--The term ``adult'' means an individual
who is not less than age 22 and not more than age 72.
(II) Allotment percentage.--The term ``allotment
percentage'', used with respect to fiscal year 2000 or
a subsequent fiscal year, means a percentage of the
remainder described in clause (i) that is received
through an allotment made under this subparagraph for
the fiscal year. The term, used with respect to fiscal
year 1998 or 1999, means the percentage of the amounts
allotted to States under section 202(a) of the Job
Training Partnership Act (as in effect on the day
before the date of enactment of this Act) that is
received under such section by the State involved for
fiscal year 1998 or 1999.
(III) Area of substantial unemployment.--The term
``area of substantial unemployment'' means any area
that is of sufficient size and scope to sustain a
program of workforce investment activities carried out
under this subtitle and that has an average rate of
unemployment of at least 6.5 percent for the most
recent 12 months, as determined by the Secretary. For
purposes of this subclause, determinations of areas of
substantial unemployment shall be made once each fiscal
year.
(IV) Disadvantaged adult.--Subject to subclause
(V), the term ``disadvantaged adult'' means an adult
who received an income, or is a member of a family that
received a total family income, that, in relation to
family size, does not exceed the higher of--
(aa) the poverty line; or
(bb) 70 percent of the lower living standard
income level.
(V) Disadvantaged adult special rule.--The
Secretary shall, as appropriate and to the extent
practicable, exclude college students and members of
the Armed Forces from the determination of the number
of disadvantaged adults.
(VI) Excess number.--The term ``excess number''
means, used with respect to the excess number of
unemployed individuals within a State, the higher of--
(aa) the number that represents the number of
unemployed individuals in excess of 4.5 percent of
the civilian labor force in the State; or
(bb) the number that represents the number of
unemployed individuals in excess of 4.5 percent of
the civilian labor force in areas of substantial
unemployment in such State.
(2) Dislocated worker employment and training.--
(A) Reservation for outlying areas.--
(i) In general.--From the amount made available under
subsection (a)(2)(A) for a fiscal year, the Secretary shall
reserve not more than 1/4 of 1 percent of the amount
appropriated under section 137(c) for the fiscal year to
provide assistance to the outlying areas.
(ii) Applicability of additional requirements.--From
the amount reserved under clause (i), the Secretary shall
provide assistance to the outlying areas for dislocated
worker employment and training activities and statewide
workforce investment activities in accordance with the
requirements of section 127(b)(1)(B), except that the
reference in section 127(b)(1)(B)(i)(II) to sections 252(a)
and 262(a)(1) of the Job Training Partnership Act shall be
deemed to be a reference to section 302(e) of the Job
Training Partnership Act (as in effect on the day before
the date of enactment of this Act).
(B) States.--
(i) In general.--The Secretary shall allot the amount
referred to in subsection (a)(2)(B) for a fiscal year to
the States pursuant to clause (ii) for dislocated worker
employment and training activities and statewide workforce
investment activities.
(ii) Formula.--Of the amount--
(I) 33 1/3 percent shall be allotted on the basis
of the relative number of unemployed individuals in
each State, compared to the total number of unemployed
individuals in all States;
(II) 33 1/3 percent shall be allotted on the basis
of the relative excess number of unemployed individuals
in each State, compared to the total excess number of
unemployed individuals in all States; and
(III) 33 1/3 percent shall be allotted on the
basis of the relative number of individuals in each
State who have been unemployed for 15 weeks or more,
compared to the total number of individuals in all
States who have been unemployed for 15 weeks or more.
(iii) Definition.--In this subparagraph, the term
``excess number'' means, used with respect to the excess
number of unemployed individuals within a State, the number
that represents the number of unemployed individuals in
excess of 4.5 percent of the civilian labor force in the
State.
(3) Definitions.--For the purpose of the formulas specified in
this subsection:
(A) Freely associated states.--The term ``Freely Associated
States'' means the Republic of the Marshall Islands, the
Federated States of Micronesia, and the Republic of Palau.
(B) Low-income level.--The term ``low-income level'' means
$7,000 with respect to income in 1969, and for any later year
means that amount that bears the same relationship to $7,000 as
the Consumer Price Index for that year bears to the Consumer
Price Index for 1969, rounded to the nearest $1,000.
(c) Reallotment.--
(1) In general.--The Secretary shall, in accordance with this
subsection, reallot to eligible States amounts that are allotted
under this section for employment and training activities and
statewide workforce investment activities and that are available
for reallotment.
(2) Amount.--The amount available for reallotment for a program
year is equal to the amount by which the unobligated balance of the
State allotments under this section for such activities, at the end
of the program year prior to the program year for which the
determination under this paragraph is made, exceeds 20 percent of
such allotments for the prior program year.
(3) Reallotment.--In making reallotments to eligible States of
amounts available pursuant to paragraph (2) for a program year, the
Secretary shall allot to each eligible State an amount based on the
relative amount allotted to such State under this section for such
activities for the prior program year, as compared to the total
amount allotted to all eligible States under this section for such
activities for such prior program year.
(4) Eligibility.--For purposes of this subsection, an eligible
State means a State that has obligated at least 80 percent of the
State allotment under this section for such activities for the
program year prior to the program year for which the determination
under paragraph (2) is made.
(5) Procedures.--The Governor of each State shall prescribe
uniform procedures for the obligation of funds by local areas
within the State in order to avoid the requirement that funds be
made available for reallotment under this subsection. The Governor
shall further prescribe equitable procedures for making funds
available from the State and local areas in the event that a State
is required to make funds available for reallotment under this
subsection.
SEC. 133. WITHIN STATE ALLOCATIONS.
(a) Reservations for State Activities.--
(1) Statewide workforce investment activities.--The Governor of
a State shall make the reservation required under section 128(a).
(2) Statewide rapid response activities.--The Governor of the
State shall reserve not more than 25 percent of the total amount
allotted to the State under section 132(b)(2)(B) for a fiscal year
for statewide rapid response activities described in section
134(a)(2)(A).
(b) Within State Allocation.--
(1) Methods.--The Governor, acting in accordance with the State
plan, and after consulting with chief elected officials in the
local areas, shall allocate--
(A) the funds that are allotted to the State for adult
employment and training activities and statewide workforce
investment activities under section 132(b)(1)(B) and are not
reserved under subsection (a)(1), in accordance with paragraph
(2) or (3); and
(B) the funds that are allotted to the State for dislocated
worker employment and training activities under section
132(b)(2)(B) and are not reserved under paragraph (1) or (2) of
subsection (a), in accordance with paragraph (2).
(2) Formula allocations.--
(A) Adult employment and training activities.--
(i) Allocation.--In allocating the funds described in
paragraph (1)(A) to local areas, a State may allocate--
(I) 33 1/3 percent of the funds on the basis
described in section 132(b)(1)(B)(ii)(I);
(II) 33 1/3 percent of the funds on the basis
described in section 132(b)(1)(B)(ii)(II); and
(III) 33 1/3 percent of the funds on the basis
described in clauses (ii)(III) and (iii) of section
132(b)(1)(B).
(ii) Minimum percentage.--Effective at the end of the
second full fiscal year after the date on which a local
area is designated under section 116, the local area shall
not receive an allocation percentage for a fiscal year that
is less than 90 percent of the average allocation
percentage of the local area for the 2 preceding fiscal
years. Amounts necessary for increasing such allocations to
local areas to comply with the preceding sentence shall be
obtained by ratably reducing the allocations to be made to
other local areas under this subparagraph.
(iii) Definition.--The term ``allocation percentage'',
used with respect to fiscal year 2000 or a subsequent
fiscal year, means a percentage of the funds referred to in
clause (i), received through an allocation made under this
subparagraph, for the fiscal year.
(B) Dislocated worker employment and training activities.--
(i) Formula.--In allocating the funds described in
paragraph (1)(B) to local areas, a State shall allocate the
funds based on an allocation formula prescribed by the
Governor of the State. Such formula may be amended by the
Governor not more than once for each program year. Such
formula shall utilize the most appropriate information
available to the Governor to distribute amounts to address
the State's worker readjustment assistance needs.
(ii) Information.--The information described in clause
(i) shall include insured unemployment data, unemployment
concentrations, plant closing and mass layoff data,
declining industries data, farmer-rancher economic hardship
data, and long-term unemployment data.
(C) Application.--For purposes of carrying out subparagraph
(A)--
(i) references in section 132(b) to a State shall be
deemed to be references to a local area;
(ii) references in section 132(b) to all States shall
be deemed to be references to all local areas in the State
involved; and
(iii) except as described in clause (i), references in
section 132(b)(1) to the term ``excess number'' shall be
considered to be references to the term as defined in
section 132(b)(1).
(3) Adult employment and training discretionary allocations.--
In lieu of making the allocation described in paragraph (2)(A), in
allocating the funds described in paragraph (1)(A) to local areas,
a State may distribute--
(A) a portion equal to not less than 70 percent of the
funds in accordance with paragraph (2)(A); and
(B) the remaining portion of the funds on the basis of a
formula that--
(i) incorporates additional factors (other than the
factors described in paragraph (2)(A)) relating to--
(I) excess poverty in urban, rural, and suburban
local areas; and
(II) excess unemployment above the State average in
urban, rural, and suburban local areas; and
(ii) was developed by the State board and approved by
the Secretary as part of the State plan.
(4) Transfer authority.--A local board may transfer, if such a
transfer is approved by the Governor, not more than 20 percent of
the funds allocated to the local area under paragraph (2)(A) or
(3), and 20 percent of the funds allocated to the local area under
paragraph (2)(B), for a fiscal year between--
(A) adult employment and training activities; and
(B) dislocated worker employment and training activities.
(5) Allocation.--
(A) In general.--The Governor of the State shall allocate
the funds described in paragraph (1) to local areas under
paragraphs (2) and (3) for the purpose of providing a single
system of employment and training activities for adults and
dislocated workers in accordance with subsections (d) and (e)
of section 134.
(B) Additional requirements.--
(i) Adults.--Funds allocated under paragraph (2)(A) or
(3) shall be used by a local area to contribute
proportionately to the costs of the one-stop delivery
system described in section 134(c) in the local area, and
to pay for employment and training activities provided to
adults in the local area, consistent with section 134.
(ii) Dislocated workers.--Funds allocated under
paragraph (2)(B) shall be used by a local area to
contribute proportionately to the costs of the one-stop
delivery system described in section 134(c) in the local
area, and to pay for employment and training activities
provided to dislocated workers in the local area,
consistent with section 134.
(c) Reallocation Among Local Areas.--
(1) In general.--The Governor may, in accordance with this
subsection, reallocate to eligible local areas within the State
amounts that are allocated under paragraph (2)(A) or (3) of
subsection (b) for adult employment and training activities and
that are available for reallocation.
(2) Amount.--The amount available for reallocation for a
program year is equal to the amount by which the unobligated
balance of the local area allocation under paragraph (2)(A) or (3)
of subsection (b) for such activities, at the end of the program
year prior to the program year for which the determination under
this paragraph is made exceeds 20 percent of such allocation for
the prior program year.
(3) Reallocation.--In making reallocations to eligible local
areas of amounts available pursuant to paragraph (2) for a program
year, the Governor shall allocate to each eligible local area
within the State an amount based on the relative amount allocated
to such local area under subsection (b)(3) for such activities for
the prior program year, as compared to the total amount allocated
to all eligible local areas in the State under subsection (b)(3)
for such activities for such prior program year. For purposes of
this paragraph, local areas that received allocations under
subsection (b)(2)(A) for the prior program year shall be treated as
if the local areas received allocations under subsection (b)(3) for
such year.
(4) Eligibility.--For purposes of this subsection, an eligible
local area means a local area that has obligated at least 80
percent of the local area allocation under paragraph (2)(A) or (3)
of subsection (b) for such activities, for the program year prior
to the program year for which the determination under paragraph (2)
is made.
SEC. 134. USE OF FUNDS FOR EMPLOYMENT AND TRAINING ACTIVITIES.
(a) Statewide Employment and Training Activities.--
(1) In general.--Funds reserved by a Governor for a State--
(A) as described in section 133(a)(2) shall be used to
carry out the statewide rapid response activities described in
paragraph (2)(A); and
(B) as described in sections 128(a) and 133(a)(1)--
(i) shall be used to carry out the statewide employment
and training activities described in paragraph (2)(B); and
(ii) may be used to carry out any of the statewide
employment and training activities described in paragraph
(3),
regardless of whether the funds were allotted to the State
under section 127(b)(1) or under paragraph (1) or (2) of
section 132(b).
(2) Required statewide employment and training activities.--
(A) Statewide rapid response activities.--A State shall use
funds reserved as described in section 133(a)(2) to carry out
statewide rapid response activities, which shall include--
(i) provision of rapid response activities, carried out
in local areas by the State or by an entity designated by
the State, working in conjunction with the local boards and
the chief elected officials in the local areas; and
(ii) provision of additional assistance to local areas
that experience disasters, mass layoffs or plant closings,
or other events that precipitate substantial increases in
the number of unemployed individuals, carried out in local
areas by the State or by an entity designated by the State,
working in conjunction with the local boards and the chief
elected officials in the local areas.
(B) Other required statewide employment and training
activities.--A State shall use funds reserved as described in
sections 128(a) and 133(a)(1) (regardless of whether the funds
were allotted to the State under section 127(b)(1) or paragraph
(1) or (2) of section 132(b)) to carry out other statewide
employment and training activities, which shall include--
(i) disseminating the State list of eligible providers
of training services, including eligible providers of
nontraditional training services, information identifying
eligible providers of on-the-job training and customized
training, and performance information and program cost
information, as described in subsections (e) and (h) of
section 122;
(ii) conducting evaluations, under section 136(e), of
activities authorized in this section, in coordination with
the activities carried out under section 172;
(iii) providing incentive grants to local areas for
regional cooperation among local boards (including local
boards for a designated region as described in section
116(c)), for local coordination of activities carried out
under this Act, and for exemplary performance by local
areas on the local performance measures;
(iv) providing technical assistance to local areas that
fail to meet local performance measures;
(v) assisting in the establishment and operation of
one-stop delivery systems described in subsection (c); and
(vi) operating a fiscal and management accountability
information system under section 136(f).
(3) Allowable statewide employment and training activities.--
(A) In general.--A State may use funds reserved as
described in sections 128(a) and 133(a)(1) (regardless of
whether the funds were allotted to the State under section
127(b)(1) or paragraph (1) or (2) of section 132(b)) to carry
out additional statewide employment and training activities,
which may include--
(i) subject to subparagraph (B), administration by the
State of the activities authorized under this section;
(ii) provision of capacity building and technical
assistance to local areas, one-stop operators, one-stop
partners, and eligible providers, including the development
and training of staff and the development of exemplary
program activities;
(iii) conduct of research and demonstrations;
(iv)(I) implementation of innovative incumbent worker
training programs, which may include the establishment and
implementation of an employer loan program to assist in
skills upgrading; and
(II) the establishment and implementation of programs
targeted to empowerment zones and enterprise communities;
(v) support for the identification of eligible
providers of training services as required under section
122;
(vi)(I) implementation of innovative programs for
displaced homemakers, which for purposes of this subclause
may include an individual who is receiving public
assistance and is within 2 years of exhausting lifetime
eligibility under part A of title IV of the Social Security
Act (42 U.S.C. 601 et seq.); and
(II) implementation of programs to increase the number
of individuals training for and placed in nontraditional
employment; and
(vii) carrying out other activities authorized in this
section that the State determines to be necessary to assist
local areas in carrying out activities described in
subsection (d) or (e) through the statewide workforce
investment system.
(B) Limitation.--
(i) In general.--Of the funds allotted to a State under
sections 127(b) and 132(b) and reserved as described in
sections 128(a) and 133(a)(1) for a fiscal year--
(I) not more than 5 percent of the amount allotted
under section 127(b)(1);
(II) not more than 5 percent of the amount allotted
under section 132(b)(1); and
(III) not more than 5 percent of the amount
allotted under section 132(b)(2),
may be used by the State for the administration of youth
activities carried out under section 129 and employment and
training activities carried out under this section.
(ii) Use of funds.--Funds made available for
administrative costs under clause (i) may be used for the
administrative cost of any of the statewide youth
activities or statewide employment and training activities,
regardless of whether the funds were allotted to the State
under section 127(b)(1) or paragraph (1) or (2) of section
132(b).
(b) Local Employment and Training Activities.--Funds allocated to a
local area for adults under paragraph (2)(A) or (3), as appropriate, of
section 133(b), and funds allocated to a local area for dislocated
workers under section 133(b)(2)(B)--
(1) shall be used to carry out employment and training
activities described in subsection (d) for adults or dislocated
workers, respectively; and
(2) may be used to carry out employment and training activities
described in subsection (e) for adults or dislocated workers,
respectively.
(c) Establishment of One-Stop Delivery System.--
(1) In general.--There shall be established in a State that
receives an allotment under section 132(b) a one-stop delivery
system, which--
(A) shall provide the core services described in subsection
(d)(2);
(B) shall provide access to intensive services and training
services as described in paragraphs (3) and (4) of subsection
(d), including serving as the point of access to individual
training accounts for training services to participants in
accordance with subsection (d)(4)(G);
(C) shall provide access to the activities carried out
under subsection (e), if any;
(D) shall provide access to programs and activities carried
out by one-stop partners and described in section 121(b); and
(E) shall provide access to the information described in
section 15 of the Wagner-Peyser Act and all job search,
placement, recruitment, and other labor exchange services
authorized under the Wagner-Peyser Act (29 U.S.C. 49 et seq.).
(2) One-stop delivery.--At a minimum, the one-stop delivery
system--
(A) shall make each of the programs, services, and
activities described in paragraph (1) accessible at not less
than one physical center in each local area of the State; and
(B) may also make programs, services, and activities
described in paragraph (1) available--
(i) through a network of affiliated sites that can
provide one or more of the programs, services, and
activities to individuals; and
(ii) through a network of eligible one-stop partners--
(I) in which each partner provides one or more of
the programs, services, and activities to such
individuals and is accessible at an affiliated site
that consists of a physical location or an
electronically or technologically linked access point;
and
(II) that assures individuals that information on
the availability of the core services will be available
regardless of where the individuals initially enter the
statewide workforce investment system, including
information made available through an access point
described in subclause (I).
(3) Specialized centers.--The centers and sites described in
paragraph (2) may have a specialization in addressing special
needs, such as the needs of dislocated workers.
(d) Required Local Employment and Training Activities.--
(1) In general.--
(A) Allocated funds.--Funds allocated to a local area for
adults under paragraph (2)(A) or (3), as appropriate, of
section 133(b), and funds allocated to the local area for
dislocated workers under section 133(b)(2)(B), shall be used--
(i) to establish a one-stop delivery system described
in subsection (c);
(ii) to provide the core services described in
paragraph (2) to adults and dislocated workers,
respectively, through the one-stop delivery system in
accordance with such paragraph;
(iii) to provide the intensive services described in
paragraph (3) to adults and dislocated workers,
respectively, described in such paragraph; and
(iv) to provide training services described in
paragraph (4) to adults and dislocated workers,
respectively, described in such paragraph.
(B) Other funds.--A portion of the funds made available
under Federal law authorizing the programs and activities
described in section 121(b)(1)(B), including the Wagner-Peyser
Act (29 U.S.C. 49 et seq.), shall be used as described in
clauses (i) and (ii) of subparagraph (A), to the extent not
inconsistent with the Federal law involved.
(2) Core services.--Funds described in paragraph (1)(A) shall
be used to provide core services, which shall be available to
individuals who are adults or dislocated workers through the one-
stop delivery system and shall, at a minimum, include--
(A) determinations of whether the individuals are eligible
to receive assistance under this subtitle;
(B) outreach, intake (which may include worker profiling),
and orientation to the information and other services available
through the one-stop delivery system;
(C) initial assessment of skill levels, aptitudes,
abilities, and supportive service needs;
(D) job search and placement assistance, and where
appropriate, career counseling;
(E) provision of employment statistics information,
including the provision of accurate information relating to
local, regional, and national labor market areas, including--
(i) job vacancy listings in such labor market areas;
(ii) information on job skills necessary to obtain the
jobs described in clause (i); and
(iii) information relating to local occupations in
demand and the earnings and skill requirements for such
occupations; and
(F) provision of performance information and program cost
information on eligible providers of training services as
described in section 122, provided by program, and eligible
providers of youth activities described in section 123,
providers of adult education described in title II, providers
of postsecondary vocational education activities and vocational
education activities available to school dropouts under the
Carl D. Perkins Vocational and Applied Technology Education Act
(20 U.S.C. 2301 et seq.), and providers of vocational
rehabilitation program activities described in title I of the
Rehabilitation Act of 1973 (29 U.S.C. 720 et seq.);
(G) provision of information regarding how the local area
is performing on the local performance measures and any
additional performance information with respect to the one-stop
delivery system in the local area;
(H) provision of accurate information relating to the
availability of supportive services, including child care and
transportation, available in the local area, and referral to
such services, as appropriate;
(I) provision of information regarding filing claims for
unemployment compensation;
(J) assistance in establishing eligibility for--
(i) welfare-to-work activities authorized under section
403(a)(5) of the Social Security Act (as added by section
5001 of the Balanced Budget Act of 1997) available in the
local area; and
(ii) programs of financial aid assistance for training
and education programs that are not funded under this Act
and are available in the local area; and
(K) followup services, including counseling regarding the
workplace, for participants in workforce investment activities
authorized under this subtitle who are placed in unsubsidized
employment, for not less than 12 months after the first day of
the employment, as appropriate.
(3) Intensive services.--
(A) In general.--Funds allocated to a local area for adults
under paragraph (2)(A) or (3), as appropriate, of section
133(b), and funds allocated to the local area for dislocated
workers under section 133(b)(2)(B), shall be used to provide
intensive services to adults and dislocated workers,
respectively--
(i)(I) who are unemployed and are unable to obtain
employment through core services provided under paragraph
(2); and
(II) who have been determined by a one-stop operator to
be in need of more intensive services in order to obtain
employment; or
(ii) who are employed, but who are determined by a one-
stop operator to be in need of such intensive services in
order to obtain or retain employment that allows for self-
sufficiency.
(B) Delivery of services.--Such intensive services shall be
provided through the one-stop delivery system--
(i) directly through one-stop operators identified
pursuant to section 121(d); or
(ii) through contracts with service providers, which
may include contracts with public, private for-profit, and
private nonprofit service providers, approved by the local
board.
(C) Types of services.--Such intensive services may include
the following:
(i) Comprehensive and specialized assessments of the
skill levels and service needs of adults and dislocated
workers, which may include--
(I) diagnostic testing and use of other assessment
tools; and
(II) in-depth interviewing and evaluation to
identify employment barriers and appropriate employment
goals.
(ii) Development of an individual employment plan, to
identify the employment goals, appropriate achievement
objectives, and appropriate combination of services for the
participant to achieve the employment goals.
(iii) Group counseling.
(iv) Individual counseling and career planning.
(v) Case management for participants seeking training
services under paragraph (4).
(vi) Short-term prevocational services, including
development of learning skills, communication skills,
interviewing skills, punctuality, personal maintenance
skills, and professional conduct, to prepare individuals
for unsubsidized employment or training.
(4) Training services.--
(A) In general.--Funds allocated to a local area for adults
under paragraph (2)(A) or (3), as appropriate, of section
133(b), and funds allocated to a local area for dislocated
workers under section 133(b)(2)(B) shall be used to provide
training services to adults and dislocated workers,
respectively--
(i) who have met the eligibility requirements for
intensive services under paragraph (3)(A) and who are
unable to obtain or retain employment through such
services;
(ii) who after an interview, evaluation, or assessment,
and case management, have been determined by a one-stop
operator or one-stop partner, as appropriate, to be in need
of training services and to have the skills and
qualifications to successfully participate in the selected
program of training services;
(iii) who select programs of training services that are
directly linked to the employment opportunities in the
local area involved or in another area in which the adults
or dislocated workers receiving such services are willing
to relocate;
(iv) who meet the requirements of subparagraph (B); and
(v) who are determined to be eligible in accordance
with the priority system, if any, in effect under
subparagraph (E).
(B) Qualification.--
(i) Requirement.--Except as provided in clause (ii),
provision of such training services shall be limited to
individuals who--
(I) are unable to obtain other grant assistance for
such services, including Federal Pell Grants
established under title IV of the Higher Education Act
of 1965 (20 U.S.C. 1070 et seq.); or
(II) require assistance beyond the assistance made
available under other grant assistance programs,
including Federal Pell Grants.
(ii) Reimbursements.--Training services may be provided
under this paragraph to an individual who otherwise meets
the requirements of this paragraph while an application for
a Federal Pell Grant is pending, except that if such
individual is subsequently awarded a Federal Pell Grant,
appropriate reimbursement shall be made to the local area
from such Federal Pell Grant.
(C) Provider qualification.--Training services shall be
provided through providers identified in accordance with
section 122.
(D) Training services.--Training services may include--
(i) occupational skills training, including training
for nontraditional employment;
(ii) on-the-job training;
(iii) programs that combine workplace training with
related instruction, which may include cooperative
education programs;
(iv) training programs operated by the private sector;
(v) skill upgrading and retraining;
(vi) entrepreneurial training;
(vii) job readiness training;
(viii) adult education and literacy activities provided
in combination with services described in any of clauses
(i) through (vii); and
(ix) customized training conducted with a commitment by
an employer or group of employers to employ an individual
upon successful completion of the training.
(E) Priority.--In the event that funds allocated to a local
area for adult employment and training activities under
paragraph (2)(A) or (3) of section 133(b) are limited, priority
shall be given to recipients of public assistance and other
low-income individuals for intensive services and training
services. The appropriate local board and the Governor shall
direct the one-stop operators in the local area with regard to
making determinations related to such priority.
(F) Consumer choice requirements.--
(i) In general.--Training services provided under this
paragraph shall be provided in a manner that maximizes
consumer choice in the selection of an eligible provider of
such services.
(ii) Eligible providers.--Each local board, through
one-stop centers referred to in subsection (c), shall make
available--
(I) the State list of eligible providers of
training services required under section 122(e), with a
description of the programs through which the providers
may offer the training services, and the information
identifying eligible providers of on-the-job training
and customized training required under section 122(h);
and
(II) the performance information and performance
cost information relating to eligible providers of
training services described in subsections (e) and (h)
of section 122.
(G) Use of individual training accounts.--
(i) In general.--Except as provided in clause (ii),
training services provided under this paragraph shall be
provided through the use of individual training accounts in
accordance with this paragraph, and shall be provided to
eligible individuals through the one-stop delivery system.
(ii) Exceptions.--Training services authorized under
this paragraph may be provided pursuant to a contract for
services in lieu of an individual training account if the
requirements of subparagraph (F) are met and if--
(I) such services are on-the-job training provided
by an employer or customized training;
(II) the local board determines there are an
insufficient number of eligible providers of training
services in the local area involved (such as in a rural
area) to accomplish the purposes of a system of
individual training accounts; or
(III) the local board determines that there is a
training services program of demonstrated effectiveness
offered in the local area by a community-based
organization or another private organization to serve
special participant populations that face multiple
barriers to employment.
(iii) Linkage to occupations in demand.--Training
services provided under this paragraph shall be directly
linked to occupations that are in demand in the local area,
or in another area to which an adult or dislocated worker
receiving such services is willing to relocate, except that
a local board may approve training services for occupations
determined by the local board to be in sectors of the
economy that have a high potential for sustained demand or
growth in the local area.
(iv) Definition.--In this subparagraph, the term
``special participant population that faces multiple
barriers to employment'' means a population of low-income
individuals that is included in one or more of the
following categories:
(I) Individuals with substantial language or
cultural barriers.
(II) Offenders.
(III) Homeless individuals.
(IV) Other hard-to-serve populations as defined by
the Governor involved.
(e) Permissible Local Employment and Training Activities.--
(1) Discretionary one-stop delivery activities.--Funds
allocated to a local area for adults under paragraph (2)(A) or (3),
as appropriate, of section 133(b), and funds allocated to the local
area for dislocated workers under section 133(b)(2)(B), may be used
to provide, through one-stop delivery described in subsection
(c)(2)--
(A) customized screening and referral of qualified
participants in training services described in subsection
(d)(4) to employment; and
(B) customized employment-related services to employers on
a fee-for-service basis.
(2) Supportive services.--Funds allocated to a local area for
adults under paragraph (2)(A) or (3), as appropriate, of section
133(b), and funds allocated to the local area for dislocated
workers under section 133(b)(2)(B), may be used to provide
supportive services to adults and dislocated workers,
respectively--
(A) who are participating in programs with activities
authorized in any of paragraphs (2), (3), or (4) of subsection
(d); and
(B) who are unable to obtain such supportive services
through other programs providing such services.
(3) Needs-related payments.--
(A) In general.--Funds allocated to a local area for adults
under paragraph (2)(A) or (3), as appropriate, of section
133(b), and funds allocated to the local area for dislocated
workers under section 133(b)(2)(B), may be used to provide
needs-related payments to adults and dislocated workers,
respectively, who are unemployed and do not qualify for (or
have ceased to qualify for) unemployment compensation for the
purpose of enabling such individuals to participate in programs
of training services under subsection (d)(4).
(B) Additional eligibility requirements.--In addition to
the requirements contained in subparagraph (A), a dislocated
worker who has ceased to qualify for unemployment compensation
may be eligible to receive needs-related payments under this
paragraph only if such worker was enrolled in the training
services--
(i) by the end of the 13th week after the most recent
layoff that resulted in a determination of the worker's
eligibility for employment and training activities for
dislocated workers under this subtitle; or
(ii) if later, by the end of the 8th week after the
worker is informed that a short-term layoff will exceed 6
months.
(C) Level of payments.--The level of a needs-related
payment made to a dislocated worker under this paragraph shall
not exceed the greater of--
(i) the applicable level of unemployment compensation;
or
(ii) if such worker did not qualify for unemployment
compensation, an amount equal to the poverty line, for an
equivalent period, which amount shall be adjusted to
reflect changes in total family income.
CHAPTER 6--GENERAL PROVISIONS
SEC. 136. PERFORMANCE ACCOUNTABILITY SYSTEM.
(a) Purpose.--The purpose of this section is to establish a
comprehensive performance accountability system, comprised of the
activities described in this section, to assess the effectiveness of
States and local areas in achieving continuous improvement of workforce
investment activities funded under this subtitle, in order to optimize
the return on investment of Federal funds in statewide and local
workforce investment activities.
(b) State Performance Measures.--
(1) In general.--For each State, the State performance measures
shall consist of--
(A)(i) the core indicators of performance described in
paragraph (2)(A) and the customer satisfaction indicator of
performance described in paragraph (2)(B); and
(ii) additional indicators of performance (if any)
identified by the State under paragraph (2)(C); and
(B) a State adjusted level of performance for each
indicator described in subparagraph (A).
(2) Indicators of performance.--
(A) Core indicators of performance.--
(i) In general.--The core indicators of performance for
employment and training activities authorized under section
134 (except for self-service and informational activities)
and (for participants who are eligible youth age 19 through
21) for youth activities authorized under section 129 shall
consist of--
(I) entry into unsubsidized employment;
(II) retention in unsubsidized employment 6 months
after entry into the employment;
(III) earnings received in unsubsidized employment
6 months after entry into the employment; and
(IV) attainment of a recognized credential relating
to achievement of educational skills, which may include
attainment of a secondary school diploma or its
recognized equivalent, or occupational skills, by
participants who enter unsubsidized employment, or by
participants who are eligible youth age 19 through 21
who enter postsecondary education, advanced training,
or unsubsidized employment.
(ii) Core indicators for eligible youth.--The core
indicators of performance (for participants who are
eligible youth age 14 through 18) for youth activities
authorized under section 129, shall include--
(I) attainment of basic skills and, as appropriate,
work readiness or occupational skills;
(II) attainment of secondary school diplomas and
their recognized equivalents; and
(III) placement and retention in postsecondary
education or advanced training, or placement and
retention in military service, employment, or qualified
apprenticeships.
(B) Customer satisfaction indicators.--The customer
satisfaction indicator of performance shall consist of customer
satisfaction of employers and participants with services
received from the workforce investment activities authorized
under this subtitle. Customer satisfaction may be measured
through surveys conducted after the conclusion of participation
in the workforce investment activities.
(C) Additional indicators.--A State may identify in the
State plan additional indicators for workforce investment
activities authorized under this subtitle.
(3) Levels of performance.--
(A) State adjusted levels of performance for core
indicators and customer satisfaction indicator.--
(i) In general.--For each State submitting a State
plan, there shall be established, in accordance with this
subparagraph, levels of performance for each of the core
indicators of performance described in paragraph (2)(A) and
the customer satisfaction indicator described in paragraph
(2)(B) for workforce investment activities authorized under
this subtitle. The levels of performance established under
this subparagraph shall, at a minimum--
(I) be expressed in an objective, quantifiable, and
measurable form; and
(II) show the progress of the State toward
continuously improving in performance.
(ii) Identification in state plan.--Each State shall
identify, in the State plan submitted under section 112,
expected levels of performance for each of the core
indicators of performance and the customer satisfaction
indicator of performance, for the first 3 program years
covered by the State plan.
(iii) Agreement on state adjusted levels of performance
for first 3 years.--In order to ensure an optimal return on
the investment of Federal funds in workforce investment
activities authorized under this subtitle, the Secretary
and each Governor shall reach agreement on levels of
performance for each of the core indicators of performance
and the customer satisfaction indicator of performance, for
the first 3 program years covered by the State plan, taking
into account the levels identified in the State plan under
clause (ii) and the factors described in clause (iv). The
levels agreed to under this clause shall be considered to
be the State adjusted levels of performance for the State
for such years and shall be incorporated into the State
plan prior to the approval of such plan.
(iv) Factors.--The agreement described in clause (iii)
or (v) shall take into account--
(I) the extent to which the levels involved will
assist the State in attaining a high level of customer
satisfaction;
(II) how the levels involved compare with the State
adjusted levels of performance established for other
States, taking into account factors including
differences in economic conditions, the characteristics
of participants when the participants entered the
program, and the services to be provided; and
(III) the extent to which such levels involved
promote continuous improvement in performance on the
performance measures by such State and ensure optimal
return on the investment of Federal funds.
(v) Agreement on state adjusted levels of performance
for 4th and 5th years.--Prior to the 4th program year
covered by the State plan, the Secretary and each Governor
shall reach agreement on levels of performance for each of
the core indicators of performance and the customer
satisfaction indicator of performance, for the 4th and 5th
program years covered by the State plan, taking into
account the factors described in clause (iv). The levels
agreed to under this clause shall be considered to be the
State adjusted levels of performance for the State for such
years and shall be incorporated into the State plan.
(vi) Revisions.--If unanticipated circumstances arise
in a State resulting in a significant change in the factors
described in clause (iv)(II), the Governor may request that
the State adjusted levels of performance agreed to under
clause (iii) or (v) be revised. The Secretary, after
collaboration with the representatives described in
subsection (i), shall issue objective criteria and methods
for making such revisions.
(B) Levels of performance for additional indicators.--The
State may identify, in the State plan, State levels of
performance for each of the additional indicators described in
paragraph (2)(C). Such levels shall be considered to be State
adjusted levels of performance for purposes of this title.
(c) Local Performance Measures.--
(1) In general.--For each local area in a State, the local
performance measures shall consist of--
(A)(i) the core indicators of performance described in
subsection (b)(2)(A), and the customer satisfaction indicator
of performance described in subsection (b)(2)(B), for
activities described in such subsections, other than statewide
workforce investment activities; and
(ii) additional indicators of performance (if any)
identified by the State under subsection (b)(2)(C) for
activities described in such subsection, other than statewide
workforce investment activities; and
(B) a local level of performance for each indicator
described in subparagraph (A).
(2) Local level of performance.--The local board, the chief
elected official, and the Governor shall negotiate and reach
agreement on the local levels of performance based on the State
adjusted levels of performance established under subsection (b).
(3) Determinations.--In determining such local levels of
performance, the local board, the chief elected official, and the
Governor shall take into account the specific economic,
demographic, and other characteristics of the populations to be
served in the local area.
(d) Report.--
(1) In general.--Each State that receives an allotment under
section 127 or 132 shall annually prepare and submit to the
Secretary a report on the progress of the State in achieving State
performance measures, including information on the levels of
performance achieved by the State with respect to the core
indicators of performance and the customer satisfaction indicator.
The annual report also shall include information regarding the
progress of local areas in the State in achieving local performance
measures, including information on the levels of performance
achieved by the areas with respect to the core indicators of
performance and the customer satisfaction indicator. The report
also shall include information on the status of State evaluations
of workforce investment activities described in subsection (e).
(2) Additional information.--In preparing such report, the
State shall include, at a minimum, information on participants in
workforce investment activities authorized under this subtitle
relating to--
(A) entry by participants who have completed training
services provided under section 134(d)(4) into unsubsidized
employment related to the training received;
(B) wages at entry into employment for participants in
workforce investment activities who entered unsubsidized
employment, including the rate of wage replacement for such
participants who are dislocated workers;
(C) cost of workforce investment activities relative to the
effect of the activities on the performance of participants;
(D) retention and earnings received in unsubsidized
employment 12 months after entry into the employment;
(E) performance with respect to the indicators of
performance specified in subsection (b)(2)(A) of participants
in workforce investment activities who received the training
services compared with the performance of participants in
workforce investment activities who received only services
other than the training services (excluding participants who
received only self-service and informational activities); and
(F) performance with respect to the indicators of
performance specified in subsection (b)(2)(A) of recipients of
public assistance, out-of-school youth, veterans, individuals
with disabilities, displaced homemakers, and older individuals.
(3) Information dissemination.--The Secretary--
(A) shall make the information contained in such reports
available to the general public through publication and other
appropriate methods;
(B) shall disseminate State-by-State comparisons of the
information; and
(C) shall provide the appropriate congressional committees
with copies of such reports.
(e) Evaluation of State Programs.--
(1) In general.--Using funds made available under this
subtitle, the State, in coordination with local boards in the
State, shall conduct ongoing evaluation studies of workforce
investment activities carried out in the State under this subtitle
in order to promote, establish, implement, and utilize methods for
continuously improving the activities in order to achieve high-
level performance within, and high-level outcomes from, the
statewide workforce investment system. To the maximum extent
practicable, the State shall coordinate the evaluations with the
evaluations provided for by the Secretary under section 172.
(2) Design.--The evaluation studies conducted under this
subsection shall be designed in conjunction with the State board
and local boards and shall include analysis of customer feedback
and outcome and process measures in the statewide workforce
investment system. The studies may include use of control groups.
(3) Results.--The State shall periodically prepare and submit
to the State board, and local boards in the State, reports
containing the results of evaluation studies conducted under this
subsection, to promote the efficiency and effectiveness of the
statewide workforce investment system in improving employability
for jobseekers and competitiveness for employers.
(f) Fiscal and Management Accountability Information Systems.--
(1) In general.--Using funds made available under this
subtitle, the Governor, in coordination with local boards and chief
elected officials in the State, shall establish and operate a
fiscal and management accountability information system based on
guidelines established by the Secretary after consultation with the
Governors, local elected officials, and one-stop partners. Such
guidelines shall promote efficient collection and use of fiscal and
management information for reporting and monitoring the use of
funds made available under this subtitle and for preparing the
annual report described in subsection (d).
(2) Wage records.--In measuring the progress of the State on
State and local performance measures, a State shall utilize
quarterly wage records, consistent with State law. The Secretary
shall make arrangements, consistent with State law, to ensure that
the wage records of any State are available to any other State to
the extent that such wage records are required by the State in
carrying out the State plan of the State or completing the annual
report described in subsection (d).
(3) Confidentiality.--In carrying out the requirements of this
Act, the State shall comply with section 444 of the General
Education Provisions Act (20 U.S.C. 1232g) (as added by the Family
Educational Rights and Privacy Act of 1974).
(g) Sanctions for State Failure To Meet State Performance
Measures.--
(1) States.--
(A) Technical assistance.--If a State fails to meet State
adjusted levels of performance relating to indicators described
in subparagraph (A) or (B) of subsection (b)(2) for a program
for any program year, the Secretary shall, upon request,
provide technical assistance in accordance with section 170,
including assistance in the development of a performance
improvement plan.
(B) Reduction in amount of grant.--If such failure
continues for a second consecutive year, or if a State fails to
submit a report under subsection (d) for any program year, the
Secretary may reduce by not more than 5 percent, the amount of
the grant that would (in the absence of this paragraph) be
payable to the State under such program for the immediately
succeeding program year. Such penalty shall be based on the
degree of failure to meet State adjusted levels of performance.
(2) Funds resulting from reduced allotments.--The Secretary
shall use an amount retained, as a result of a reduction in an
allotment to a State made under paragraph (1)(B), to provide
incentive grants under section 503.
(h) Sanctions for Local Area Failure To Meet Local Performance
Measures.--
(1) Technical assistance.--If a local area fails to meet levels
of performance relating to indicators described in subparagraph (A)
or (B) of subsection (b)(2) for a program for any program year, the
Governor, or upon request by the Governor, the Secretary, shall
provide technical assistance, which may include assistance in the
development of a performance improvement plan, or the development
of a modified local plan.
(2) Corrective actions.--
(A) In general.--If such failure continues for a second
consecutive year, the Governor shall take corrective actions,
which may include development of a reorganization plan through
which the Governor may--
(i) require the appointment and certification of a new
local board (consistent with the criteria established under
section 117(b));
(ii) prohibit the use of eligible providers and one-
stop partners identified as achieving a poor level of
performance; or
(iii) take such other actions as the Governor
determines are appropriate.
(B) Appeal by local area.--
(i) Appeal to governor.--A local area that is subject
to a reorganization plan under subparagraph (A) may, not
later than 30 days after receiving notice of the
reorganization plan, appeal to the Governor to rescind or
revise such plan. In such case, the Governor shall make a
final decision not later then 30 days after the receipt of
the appeal.
(ii) Subsequent action.--The local area may, not later
than 30 days after receiving a decision from the Governor
pursuant to clause (i), appeal such decision to the
Secretary. In such case, the Secretary shall make a final
decision not later than 30 days after the receipt of the
appeal.
(C) Effective date.--The decision made by the Governor
under clause (i) of subparagraph (B) shall become effective at
the time the Governor issues the decision pursuant to such
clause. Such decision shall remain effective unless the
Secretary rescinds or revises such plan pursuant to clause (ii)
of subparagraph (B).
(i) Other Measures and Terminology.--
(1) Responsibilities.--In order to ensure nationwide
comparability of performance data, the Secretary, after
collaboration with representatives of appropriate Federal agencies,
and representatives of States and political subdivisions, business
and industry, employees, eligible providers of employment and
training activities, educators, and participants, with expertise
regarding workforce investment policies and workforce investment
activities, shall issue--
(A) definitions for information required to be reported
under subsection (d)(2);
(B) terms for a menu of additional indicators of
performance described in subsection (b)(2)(C) to assist States
in assessing their progress toward State workforce investment
goals; and
(C) objective criteria and methods described in subsection
(b)(3)(A)(vi) for making revisions to levels of performance.
(2) Definitions for core indicators.--The Secretary and the
representatives described in paragraph (1) shall participate in the
activities described in section 502 concerning the issuance of
definitions for indicators of performance described in subsection
(b)(2)(A).
(3) Assistance.--The Secretary shall make the services of staff
available to the representatives to assist the representatives in
participating in the collaboration described in paragraph (1) and
in the activities described in section 502.
SEC. 137. AUTHORIZATION OF APPROPRIATIONS.
(a) Youth Activities.--There are authorized to be appropriated to
carry out the activities described in section 127(a), such sums as may
be necessary for each of fiscal years 1999 through 2003.
(b) Adult Employment and Training Activities.--There are authorized
to be appropriated to carry out the activities described in section
132(a)(1), such sums as may be necessary for each of fiscal years 1999
through 2003.
(c) Dislocated Worker Employment and Training Activities.--There
are authorized to be appropriated to carry out the activities described
in section 132(a)(2), such sums as may be necessary for each of fiscal
years 1999 through 2003.
Subtitle C--Job Corps
SEC. 141. PURPOSES.
The purposes of this subtitle are--
(1) to maintain a national Job Corps program, carried out in
partnership with States and communities, to assist eligible youth
who need and can benefit from an intensive program, operated in a
group setting in residential and nonresidential centers, to become
more responsible, employable, and productive citizens;
(2) to set forth standards and procedures for selecting
individuals as enrollees in the Job Corps;
(3) to authorize the establishment of Job Corps centers in
which enrollees will participate in intensive programs of
activities described in this subtitle; and
(4) to prescribe various other powers, duties, and
responsibilities incident to the operation and continuing
development of the Job Corps.
SEC. 142. DEFINITIONS.
In this subtitle:
(1) Applicable local board.--The term ``applicable local
board'' means a local board--
(A) that provides information for a Job Corps center on
local employment opportunities and the job skills needed to
obtain the opportunities; and
(B) that serves communities in which the graduates of the
Job Corps center seek employment.
(2) Applicable one-stop center.--The term ``applicable one-stop
center'' means a one-stop customer service center that provides
services, such as referral, intake, recruitment, and placement, to
a Job Corps center.
(3) Enrollee.--The term ``enrollee'' means an individual who
has voluntarily applied for, been selected for, and enrolled in the
Job Corps program, and remains with the program, but has not yet
become a graduate.
(4) Former enrollee.--The term ``former enrollee'' means an
individual who has voluntarily applied for, been selected for, and
enrolled in the Job Corps program, but left the program before
completing the requirements of a vocational training program, or
receiving a secondary school diploma or recognized equivalent, as a
result of participation in the Job Corps program.
(5) Graduate.--The term ``graduate'' means an individual who
has voluntarily applied for, been selected for, and enrolled in the
Job Corps program and has completed the requirements of a
vocational training program, or received a secondary school diploma
or recognized equivalent, as a result of participation in the Job
Corps program.
(6) Job corps.--The term ``Job Corps'' means the Job Corps
described in section 143.
(7) Job corps center.--The term ``Job Corps center'' means a
center described in section 147.
(8) Operator.--The term ``operator'' means an entity selected
under this subtitle to operate a Job Corps center.
(9) Region.--The term ``region'' means an area served by a
regional office of the Employment and Training Administration.
(10) Service provider.--The term ``service provider'' means an
entity selected under this subtitle to provide services described
in this subtitle to a Job Corps center.
SEC. 143. ESTABLISHMENT.
There shall be within the Department of Labor a ``Job Corps''.
SEC. 144. INDIVIDUALS ELIGIBLE FOR THE JOB CORPS.
To be eligible to become an enrollee, an individual shall be--
(1) not less than age 16 and not more than age 21 on the date
of enrollment, except that--
(A) not more than 20 percent of the individuals enrolled in
the Job Corps may be not less than age 22 and not more than age
24 on the date of enrollment; and
(B) either such maximum age limitation may be waived by the
Secretary, in accordance with regulations of the Secretary, in
the case of an individual with a disability;
(2) a low-income individual; and
(3) an individual who is one or more of the following:
(A) Basic skills deficient.
(B) A school dropout.
(C) Homeless, a runaway, or a foster child.
(D) A parent.
(E) An individual who requires additional education,
vocational training, or intensive counseling and related
assistance, in order to participate successfully in regular
schoolwork or to secure and hold employment.
SEC. 145. RECRUITMENT, SCREENING, SELECTION, AND ASSIGNMENT OF ENROLLEES.
(a) Standards and Procedures.--
(1) In general.--The Secretary shall prescribe specific
standards and procedures for the recruitment, screening, and
selection of eligible applicants for the Job Corps, after
considering recommendations from the Governors, local boards, and
other interested parties.
(2) Methods.--In prescribing standards and procedures under
paragraph (1), the Secretary, at a minimum, shall--
(A) prescribe procedures for informing enrollees that drug
tests will be administered to the enrollees and the results
received within 45 days after the enrollees enroll in the Job
Corps;
(B) establish standards for recruitment of Job Corps
applicants;
(C) establish standards and procedures for--
(i) determining, for each applicant, whether the
educational and vocational needs of the applicant can best
be met through the Job Corps program or an alternative
program in the community in which the applicant resides;
and
(ii) obtaining from each applicant pertinent data
relating to background, needs, and interests for
determining eligibility and potential assignment;
(D) where appropriate, take measures to improve the
professional capability of the individuals conducting screening
of the applicants; and
(E) assure that an appropriate number of enrollees are from
rural areas.
(3) Implementation.--To the extent practicable, the standards
and procedures shall be implemented through arrangements with--
(A) applicable one-stop centers;
(B) community action agencies, business organizations, and
labor organizations; and
(C) agencies and individuals that have contact with youth
over substantial periods of time and are able to offer reliable
information about the needs and problems of youth.
(4) Consultation.--The standards and procedures shall provide
for necessary consultation with individuals and organizations,
including court, probation, parole, law enforcement, education,
welfare, and medical authorities and advisers.
(5) Reimbursement.--The Secretary is authorized to enter into
contracts with and make payments to individuals and organizations
for the cost of conducting recruitment, screening, and selection of
eligible applicants for the Job Corps, as provided for in this
section. The Secretary shall make no payment to any individual or
organization solely as compensation for referring the names of
applicants for the Job Corps.
(b) Special Limitations on Selection.--
(1) In general.--No individual shall be selected as an enrollee
unless the individual or organization implementing the standards
and procedures described in subsection (a) determines that--
(A) there is a reasonable expectation that the individual
considered for selection can participate successfully in group
situations and activities, and is not likely to engage in
behavior that would prevent other enrollees from receiving the
benefit of the Job Corps program or be incompatible with the
maintenance of sound discipline and satisfactory relationships
between the Job Corps center to which the individual might be
assigned and communities surrounding the Job Corps center;
(B) the individual manifests a basic understanding of both
the rules to which the individual will be subject and of the
consequences of failure to observe the rules; and
(C) the individual has passed a background check conducted
in accordance with procedures established by the Secretary.
(2) Individuals on probation, parole, or supervised release.--
An individual on probation, parole, or supervised release may be
selected as an enrollee only if release from the supervision of the
probation or parole official involved is satisfactory to the
official and the Secretary and does not violate applicable laws
(including regulations). No individual shall be denied a position
in the Job Corps solely on the basis of individual contact with the
criminal justice system.
(c) Assignment Plan.--
(1) In general.--Every 2 years, the Secretary shall develop and
implement an assignment plan for assigning enrollees to Job Corps
centers. In developing the plan, the Secretary shall, based on the
analysis described in paragraph (2), establish targets, applicable
to each Job Corps center, for--
(A) the maximum attainable percentage of enrollees at the
Job Corps center that reside in the State in which the center
is located; and
(B) the maximum attainable percentage of enrollees at the
Job Corps center that reside in the region in which the center
is located, and in surrounding regions.
(2) Analysis.--In order to develop the plan described in
paragraph (1), the Secretary shall, every 2 years, analyze, for the
Job Corps center--
(A) the size of the population of individuals eligible to
participate in Job Corps in the State and region in which the
Job Corps center is located, and in surrounding regions;
(B) the relative demand for participation in the Job Corps
in the State and region, and in surrounding regions; and
(C) the capacity and utilization of the Job Corps center,
including services provided through the center.
(d) Assignment of Individual Enrollees.--
(1) In general.--After an individual has been selected for the
Job Corps in accordance with the standards and procedures of the
Secretary under subsection (a), the enrollee shall be assigned to
the Job Corps center that is closest to the home of the enrollee,
except that the Secretary may waive this requirement if--
(A) the enrollee chooses a vocational training program, or
requires an English literacy program, that is not available at
such center;
(B) the enrollee would be unduly delayed in participating
in the Job Corps program because the closest center is
operating at full capacity; or
(C) the parent or guardian of the enrollee requests
assignment of the enrollee to another Job Corps center due to
circumstances in the community of the enrollee that would
impair prospects for successful participation in the Job Corps
program.
(2) Enrollees who are younger than 18.--An enrollee who is
younger than 18 shall not be assigned to a Job Corps center other
than the center closest to the home of the enrollee pursuant to
paragraph (1) if the parent or guardian of the enrollee objects to
the assignment.
SEC. 146. ENROLLMENT.
(a) Relationship Between Enrollment and Military Obligations.--
Enrollment in the Job Corps shall not relieve any individual of
obligations under the Military Selective Service Act (50 U.S.C. App.
451 et seq.).
(b) Period of Enrollment.--No individual may be enrolled in the Job
Corps for more than 2 years, except--
(1) in a case in which completion of an advanced career
training program under section 148(c) would require an individual
to participate in the Job Corps for not more than one additional
year; or
(2) as the Secretary may authorize in a special case.
SEC. 147. JOB CORPS CENTERS.
(a) Operators and Service Providers.--
(1) Eligible entities.--
(A) Operators.--The Secretary shall enter into an agreement
with a Federal, State, or local agency, an area vocational
education school or residential vocational school, or a private
organization, for the operation of each Job Corps center.
(B) Providers.--The Secretary may enter into an agreement
with a local entity to provide activities described in this
subtitle to the Job Corps center.
(2) Selection process.--
(A) Competitive basis.--Except as provided in subsections
(c) and (d) of section 303 of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 253), the
Secretary shall select on a competitive basis an entity to
operate a Job Corps center and entities to provide activities
described in this subtitle to the Job Corps center. In
developing a solicitation for an operator or service provider,
the Secretary shall consult with the Governor of the State in
which the center is located, the industry council for the Job
Corps center (if established), and the applicable local board
regarding the contents of such solicitation, including elements
that will promote the consistency of the activities carried out
through the center with the objectives set forth in the State
plan or in a local plan.
(B) Recommendations and considerations.--
(i) Operators.--In selecting an entity to operate a Job
Corps center, the Secretary shall consider--
(I) the ability of the entity to coordinate the
activities carried out through the Job Corps center
with activities carried out under the appropriate State
plan and local plans;
(II) the degree to which the vocational training
that the entity proposes for the center reflects local
employment opportunities in the local areas in which
enrollees at the center intend to seek employment;
(III) the degree to which the entity is familiar
with the surrounding communities, applicable one-stop
centers, and the State and region in which the center
is located; and
(IV) the past performance of the entity, if any,
relating to operating or providing activities described
in this subtitle to a Job Corps center.
(ii) Providers.--In selecting a service provider for a
Job Corps center, the Secretary shall consider the factors
described in subclauses (I) through (IV) of clause (i), as
appropriate.
(b) Character and Activities.--Job Corps centers may be residential
or nonresidential in character, and shall be designed and operated so
as to provide enrollees, in a well-supervised setting, with access to
activities described in this subtitle. In any year, no more than 20
percent of the individuals enrolled in the Job Corps may be
nonresidential participants in the Job Corps.
(c) Civilian Conservation Centers.--
(1) In general.--The Job Corps centers may include Civilian
Conservation Centers operated under agreements with the Secretary
of Agriculture or the Secretary of the Interior, located primarily
in rural areas, which shall provide, in addition to other
vocational training and assistance, programs of work experience to
conserve, develop, or manage public natural resources or public
recreational areas or to develop community projects in the public
interest.
(2) Selection process.--The Secretary may select an entity to
operate a Civilian Conservation Center on a competitive basis, as
provided in subsection (a), if the center fails to meet such
national performance standards as the Secretary shall establish.
(d) Indian Tribes.--
(1) General authority.--The Secretary may enter into agreements
with Indian tribes to operate Job Corps centers for Indians.
(2) Definitions.--In this subsection, the terms ``Indian'' and
``Indian tribe'', have the meanings given such terms in subsections
(d) and (e), respectively, of section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
SEC. 148. PROGRAM ACTIVITIES.
(a) Activities Provided by Job Corps Centers.--
(1) In general.--Each Job Corps center shall provide enrollees
with an intensive, well organized, and fully supervised program of
education, vocational training, work experience, recreational
activities, physical rehabilitation and development, and
counseling. Each Job Corps center shall provide enrollees assigned
to the center with access to core services described in section
134(d)(2) and the intensive services described in section
134(d)(3).
(2) Relationship to opportunities.--
(A) In general.--The activities provided under this
subsection shall provide work-based learning throughout the
enrollment of the enrollees and assist the enrollees in
obtaining meaningful unsubsidized employment, participating in
secondary education or postsecondary education programs,
enrolling in other suitable vocational training programs, or
satisfying Armed Forces requirements, on completion of their
enrollment.
(B) Link to employment opportunities.--The vocational
training provided shall be linked to the employment
opportunities in the local area in which the enrollee intends
to seek employment after graduation.
(b) Education and Vocational Training.--The Secretary may arrange
for education and vocational training of enrollees through local public
or private educational agencies, vocational educational institutions,
or technical institutes, whenever such entities provide education and
training substantially equivalent in cost and quality to that which the
Secretary could provide through other means.
(c) Advanced Career Training Programs.--
(1) In general.--The Secretary may arrange for programs of
advanced career training for selected enrollees in which the
enrollees may continue to participate for a period of not to exceed
1 year in addition to the period of participation to which the
enrollees would otherwise be limited. The advanced career training
may be provided through the eligible providers of training services
identified under section 122.
(2) Benefits.--
(A) In general.--During the period of participation in an
advanced career training program, an enrollee shall be eligible
for full Job Corps benefits, or a monthly stipend equal to the
average value of the residential support, food, allowances, and
other benefits provided to enrollees assigned to residential
Job Corps centers.
(B) Calculation.--The total amount for which an enrollee
shall be eligible under subparagraph (A) shall be reduced by
the amount of any scholarship or other educational grant
assistance received by such enrollee for advanced career
training.
(3) Demonstration.--Each year, any operator seeking to enroll
additional enrollees in an advanced career training program shall
demonstrate that participants in such program have achieved a
satisfactory rate of completion and placement in training-related
jobs before the operator may carry out such additional enrollment.
(d) Continued Services.--The Secretary shall also provide continued
services to graduates, including providing counseling regarding the
workplace for 12 months after the date of graduation of the graduates.
In selecting a provider for such services, the Secretary shall give
priority to one-stop partners.
(e) Child Care.--The Secretary shall, to the extent practicable,
provide child care at or near Job Corps centers, for individuals who
require child care for their children in order to participate in the
Job Corps.
SEC. 149. COUNSELING AND JOB PLACEMENT.
(a) Counseling and Testing.--The Secretary shall arrange for
counseling and testing for each enrollee at regular intervals to
measure progress in the education and vocational training programs
carried out through the Job Corps.
(b) Placement.--The Secretary shall arrange for counseling and
testing for enrollees prior to their scheduled graduations to determine
their capabilities and, based on their capabilities, shall make every
effort to arrange to place the enrollees in jobs in the vocations for
which the enrollees are trained or to assist the enrollees in obtaining
further activities described in this subtitle. In arranging for the
placement of graduates in jobs, the Secretary shall utilize the one-
stop delivery system to the fullest extent possible.
(c) Status and Progress.--The Secretary shall determine the status
and progress of enrollees scheduled for graduation and make every
effort to assure that their needs for further activities described in
this subtitle are met.
(d) Services to Former Enrollees.--The Secretary may provide such
services as the Secretary determines to be appropriate under this
subtitle to former enrollees.
SEC. 150. SUPPORT.
(a) Personal Allowances.--The Secretary may provide enrollees
assigned to Job Corps centers with such personal allowances as the
Secretary may determine to be necessary or appropriate to meet the
needs of the enrollees.
(b) Readjustment Allowances.--
(1) Graduates.--The Secretary shall arrange for a readjustment
allowance to be paid to graduates. The Secretary shall arrange for
the allowance to be paid at the one-stop center nearest to the home
of the graduate who is returning home, or at the one-stop center
nearest to the location where the graduate has indicated an intent
to seek employment. If the Secretary uses any organization, in lieu
of a one-stop center, to provide placement services under this Act,
the Secretary shall arrange for that organization to pay the
readjustment allowance.
(2) Former enrollees.--The Secretary may provide for a
readjustment allowance to be paid to former enrollees. The
provision of the readjustment allowance shall be subject to the
same requirements as are applicable to the provision of the
readjustment allowance paid to graduates under paragraph (1).
SEC. 151. OPERATING PLAN.
(a) In General.--The provisions of the contract between the
Secretary and an entity selected to operate a Job Corps center shall,
at a minimum, serve as an operating plan for the Job Corps center.
(b) Additional Information.--The Secretary may require the
operator, in order to remain eligible to operate the Job Corps center,
to submit such additional information as the Secretary may require,
which shall be considered part of the operating plan.
(c) Availability.--The Secretary shall make the operating plan
described in subsections (a) and (b), excluding any proprietary
information, available to the public.
SEC. 152. STANDARDS OF CONDUCT.
(a) Provision and Enforcement.--The Secretary shall provide, and
directors of Job Corps centers shall stringently enforce, standards of
conduct within the centers. Such standards of conduct shall include
provisions forbidding the actions described in subsection (b)(2)(A).
(b) Disciplinary Measures.--
(1) In general.--To promote the proper moral and disciplinary
conditions in the Job Corps, the directors of Job Corps centers
shall take appropriate disciplinary measures against enrollees. If
such a director determines that an enrollee has committed a
violation of the standards of conduct, the director shall dismiss
the enrollee from the Job Corps if the director determines that the
retention of the enrollee in the Job Corps will jeopardize the
enforcement of such standards or diminish the opportunities of
other enrollees.
(2) Zero tolerance policy and drug testing.--
(A) Guidelines.--The Secretary shall adopt guidelines
establishing a zero tolerance policy for an act of violence,
for use, sale, or possession of a controlled substance, for
abuse of alcohol, or for other illegal or disruptive activity.
(B) Drug testing.--The Secretary shall require drug testing
of all enrollees for controlled substances in accordance with
procedures prescribed by the Secretary under section 145(a).
(C) Definitions.--In this paragraph:
(i) Controlled substance.--The term ``controlled
substance'' has the meaning given the term in section 102
of the Controlled Substances Act (21 U.S.C. 802).
(ii) Zero tolerance policy.--The term ``zero tolerance
policy'' means a policy under which an enrollee shall be
automatically dismissed from the Job Corps after a
determination by the director that the enrollee has carried
out an action described in subparagraph (A).
(c) Appeal.--A disciplinary measure taken by a director under this
section shall be subject to expeditious appeal in accordance with
procedures established by the Secretary.
SEC. 153. COMMUNITY PARTICIPATION.
(a) Business and Community Liaison.--Each Job Corps center shall
have a Business and Community Liaison (referred to in this Act as a
``Liaison''), designated by the director of the center.
(b) Responsibilities.--The responsibilities of the Liaison shall
include--
(1) establishing and developing relationships and networks
with--
(A) local and distant employers; and
(B) applicable one-stop centers and applicable local
boards,
for the purpose of providing job opportunities for Job Corps
graduates; and
(2) establishing and developing relationships with members of
the community in which the Job Corps center is located, informing
members of the community about the projects of the Job Corps center
and changes in the rules, procedures, or activities of the center
that may affect the community, and planning events of mutual
interest to the community and the Job Corps center.
(c) New Centers.--The Liaison for a Job Corps center that is not
yet operating shall establish and develop the relationships and
networks described in subsection (b) at least 3 months prior to the
date on which the center accepts the first enrollee at the center.
SEC. 154. INDUSTRY COUNCILS.
(a) In General.--Each Job Corps center shall have an industry
council, appointed by the director of the center after consultation
with the Liaison, in accordance with procedures established by the
Secretary.
(b) Industry Council Composition.--
(1) In general.--An industry council shall be comprised of--
(A) a majority of members who shall be local and distant
owners of business concerns, chief executives or chief
operating officers of nongovernmental employers, or other
private sector employers, who--
(i) have substantial management, hiring, or policy
responsibility; and
(ii) represent businesses with employment opportunities
that reflect the employment opportunities of the applicable
local area;
(B) representatives of labor organizations (where present)
and representatives of employees; and
(C) enrollees and graduates of the Job Corps.
(2) Local board.--The industry council may include members of
the applicable local boards who meet the requirements described in
paragraph (1).
(c) Responsibilities.--The responsibilities of the industry council
shall be--
(1) to work closely with all applicable local boards in order
to determine, and recommend to the Secretary, appropriate
vocational training for the center;
(2) to review all the relevant labor market information to--
(A) determine the employment opportunities in the local
areas in which the enrollees intend to seek employment after
graduation;
(B) determine the skills and education that are necessary
to obtain the employment opportunities; and
(C) recommend to the Secretary the type of vocational
training that should be implemented at the center to enable the
enrollees to obtain the employment opportunities; and
(3) to meet at least once every 6 months to reevaluate the
labor market information, and other relevant information, to
determine, and recommend to the Secretary, any necessary changes in
the vocational training provided at the center.
(d) New Centers.--The industry council for a Job Corps center that
is not yet operating shall carry out the responsibilities described in
subsection (c) at least 3 months prior to the date on which the center
accepts the first enrollee at the center.
SEC. 155. ADVISORY COMMITTEES.
The Secretary may establish and use advisory committees in connection with the operation of the Job Corps program, and the operation of Job Corps centers, whenever the Secretary determines that the availability of outside advice and counsel on a regular basis would be of substantial benefit in identifying and overcoming problems, in planning program or center development, or in strengthening relationships between the Job Corps and agencies, institutions, or groups engaged in related activities.
SEC. 156. EXPERIMENTAL, RESEARCH, AND DEMONSTRATION PROJECTS.
The Secretary may carry out experimental, research, or demonstration projects relating to carrying out the Job Corps program and may waive any provisions of this subtitle that the Secretary finds would prevent the Secretary from carrying out the projects.
SEC. 157. APPLICATION OF PROVISIONS OF FEDERAL LAW.
(a) Enrollees Not Considered To Be Federal Employees.--
(1) In general.--Except as otherwise provided in this
subsection and in section 8143(a) of title 5, United States Code,
enrollees shall not be considered to be Federal employees and shall
not be subject to the provisions of law relating to Federal
employment, including such provisions regarding hours of work,
rates of compensation, leave, unemployment compensation, and
Federal employee benefits.
(2) Provisions relating to taxes and social security
benefits.--For purposes of the Internal Revenue Code of 1986 and
title II of the Social Security Act (42 U.S.C. 401 et seq.),
enrollees shall be deemed to be employees of the United States and
any service performed by an individual as an enrollee shall be
deemed to be performed in the employ of the United States.
(3) Provisions relating to compensation to federal employees
for work injuries.--For purposes of subchapter I of chapter 81 of
title 5, United States Code (relating to compensation to Federal
employees for work injuries), enrollees shall be deemed to be civil
employees of the Government of the United States within the meaning
of the term ``employee'' as defined in section 8101 of title 5,
United States Code, and the provisions of such subchapter shall
apply as specified in section 8143(a) of title 5, United States
Code.
(4) Federal tort claims provisions.--For purposes of the
Federal tort claims provisions in title 28, United States Code,
enrollees shall be considered to be employees of the Government.
(b) Adjustments and Settlements.--Whenever the Secretary finds a
claim for damages to a person or property resulting from the operation
of the Job Corps to be a proper charge against the United States, and
the claim is not cognizable under section 2672 of title 28, United
States Code, the Secretary may adjust and settle the claim in an amount
not exceeding $1,500.
(c) Personnel of the Uniformed Services.--Personnel of the
uniformed services who are detailed or assigned to duty in the
performance of agreements made by the Secretary for the support of the
Job Corps shall not be counted in computing strength under any law
limiting the strength of such services or in computing the percentage
authorized by law for any grade in such services.
SEC. 158. SPECIAL PROVISIONS.
(a) Enrollment.--The Secretary shall ensure that women and men have
an equal opportunity to participate in the Job Corps program,
consistent with section 145.
(b) Studies, Evaluations, Proposals, and Data.--The Secretary shall
assure that all studies, evaluations, proposals, and data produced or
developed with Federal funds in the course of carrying out the Job
Corps program shall become the property of the United States.
(c) Transfer of Property.--
(1) In general.--Notwithstanding title II of the Federal
Property and Administrative Services Act of 1949 (40 U.S.C. 481 et
seq.) and any other provision of law, the Secretary and the
Secretary of Education shall receive priority by the Secretary of
Defense for the direct transfer, on a nonreimbursable basis, of the
property described in paragraph (2) for use in carrying out
programs under this Act or under any other Act.
(2) Property.--The property described in this paragraph is real
and personal property under the control of the Department of
Defense that is not used by such Department, including property
that the Secretary of Defense determines is in excess of current
and projected requirements of such Department.
(d) Gross Receipts.--Transactions conducted by a private for-profit
or nonprofit entity that is an operator or service provider for a Job
Corps center shall not be considered to be generating gross receipts.
Such an operator or service provider shall not be liable, directly or
indirectly, to any State or subdivision of a State (nor to any person
acting on behalf of such a State or subdivision) for any gross receipts
taxes, business privilege taxes measured by gross receipts, or any
similar taxes imposed on, or measured by, gross receipts in connection
with any payments made to or by such entity for operating or providing
services to a Job Corps center. Such an operator or service provider
shall not be liable to any State or subdivision of a State to collect
or pay any sales, excise, use, or similar tax imposed on the sale to or
use by such operator or service provider of any property, service, or
other item in connection with the operation of or provision of services
to a Job Corps center.
(e) Management Fee.--The Secretary shall provide each operator and
(in an appropriate case, as determined by the Secretary) service
provider with an equitable and negotiated management fee of not less
than 1 percent of the amount of the funding provided under the
appropriate agreement specified in section 147.
(f) Donations.--The Secretary may accept on behalf of the Job Corps
or individual Job Corps centers charitable donations of cash or other
assistance, including equipment and materials, if such donations are
available for appropriate use for the purposes set forth in this
subtitle.
(g) Sale of Property.--Notwithstanding any other provision of law,
if the Administrator of General Services sells a Job Corps center
facility, the Administrator shall transfer the proceeds from the sale
to the Secretary, who shall use the proceeds to carry out the Job Corps
program.
SEC. 159. MANAGEMENT INFORMATION.
(a) Financial Management Information System.--
(1) In general.--The Secretary shall establish procedures to
ensure that each operator, and each service provider, maintains a
financial management information system that will provide--
(A) accurate, complete, and current disclosures of the
costs of Job Corps operations; and
(B) sufficient data for the effective evaluation of
activities carried out through the Job Corps program.
(2) Accounts.--Each operator and service provider shall
maintain funds received under this subtitle in accounts in a manner
that ensures timely and accurate reporting as required by the
Secretary.
(3) Fiscal responsibility.--Operators shall remain fiscally
responsible and control costs, regardless of whether the funds made
available for Job Corps centers are incrementally increased or
decreased between fiscal years.
(b) Audit.--
(1) Access.--The Secretary, the Inspector General of the
Department of Labor, the Comptroller General of the United States,
and any of their duly authorized representatives, shall have access
to any books, documents, papers, and records of the operators and
service providers described in subsection (a) that are pertinent to
the Job Corps program, for purposes of conducting surveys, audits,
and evaluations of the operators and service providers.
(2) Surveys, audits, and evaluations.--The Secretary shall
survey, audit, or evaluate, or arrange for the survey, audit, or
evaluation of, the operators and service providers, using Federal
auditors or independent public accountants. The Secretary shall
conduct such surveys, audits, or evaluations not less often than
once every 3 years.
(c) Information on Indicators of Performance.--
(1) Establishment.--The Secretary shall, with continuity and
consistency from year to year, establish indicators of performance,
and expected levels of performance for Job Corps centers and the
Job Corps program, relating to--
(A) the number of graduates and the rate of such
graduation, analyzed by type of vocational training received
through the Job Corps program and by whether the vocational
training was provided by a local or national service provider;
(B) the number of graduates who entered unsubsidized
employment related to the vocational training received through
the Job Corps program and the number who entered unsubsidized
employment not related to the vocational training received,
analyzed by whether the vocational training was provided by a
local or national service provider and by whether the placement
in the employment was conducted by a local or national service
provider;
(C) the average wage received by graduates who entered
unsubsidized employment related to the vocational training
received through the Job Corps program and the average wage
received by graduates who entered unsubsidized employment
unrelated to the vocational training received;
(D) the average wage received by graduates placed in
unsubsidized employment after completion of the Job Corps
program--
(i) on the first day of the employment;
(ii) 6 months after the first day of the employment;
and
(iii) 12 months after the first day of the employment,
analyzed by type of vocational training received through the
Job Corps program;
(E) the number of graduates who entered unsubsidized
employment and were retained in the unsubsidized employment--
(i) 6 months after the first day of the employment; and
(ii) 12 months after the first day of the employment;
(F) the number of graduates who entered unsubsidized
employment--
(i) for 32 hours per week or more;
(ii) for not less than 20 but less than 32 hours per
week; and
(iii) for less than 20 hours per week;
(G) the number of graduates who entered post- secondary
education or advanced training programs, including
apprenticeship programs, as appropriate; and
(H) the number of graduates who attained job readiness and
employment skills.
(2) Performance of recruiters.--The Secretary shall also
establish performance measures, and expected performance levels on
the performance measures, for local and national recruitment
service providers serving the Job Corps program. The performance
measures shall relate to the number of enrollees retained in the
Job Corps program for 30 days and for 60 days after initial
placement in the program.
(3) Report.--The Secretary shall collect, and annually submit a
report to the appropriate committees of Congress containing
information on the performance of each Job Corps center, and the
Job Corps program, on the core performance measures, as compared to
the expected performance level for each performance measure. The
report shall also contain information on the performance of the
service providers described in paragraph (2) on the performance
measures established under such paragraph, as compared to the
expected performance levels for the performance measures.
(d) Additional Information.--The Secretary shall also collect, and
submit in the report described in subsection (c), information on the
performance of each Job Corps center, and the Job Corps program,
regarding--
(1) the number of enrollees served;
(2) the average level of learning gains for graduates and
former enrollees;
(3) the number of former enrollees and graduates who entered
the Armed Forces;
(4) the number of former enrollees who entered post- secondary
education;
(5) the number of former enrollees who entered unsubsidized
employment related to the vocational training received through the
Job Corps program and the number who entered unsubsidized
employment not related to the vocational training received;
(6) the number of former enrollees and graduates who obtained a
secondary school diploma or its recognized equivalent;
(7) the number and percentage of dropouts from the Job Corps
program including the number dismissed under the zero tolerance
policy described in section 152(b); and
(8) any additional information required by the Secretary.
(e) Methods.--The Secretary may collect the information described
in subsections (c) and (d) using methods described in section 136(f)(2)
consistent with State law.
(f) Performance Assessments and Improvements.--
(1) Assessments.--The Secretary shall conduct an annual
assessment of the performance of each Job Corps center. Based on
the assessment, the Secretary shall take measures to continuously
improve the performance of the Job Corps program.
(2) Performance improvement plans.--With respect to a Job Corps
center that fails to meet the expected levels of performance
relating to the core performance measures specified in subsection
(c), the Secretary shall develop and implement a performance
improvement plan. Such a plan shall require action including--
(A) providing technical assistance to the center;
(B) changing the vocational training offered at the center;
(C) changing the management staff of the center;
(D) replacing the operator of the center;
(E) reducing the capacity of the center;
(F) relocating the center; or
(G) closing the center.
(3) Additional performance improvement plans.--In addition to
the performance improvement plans required under paragraph (2), the
Secretary may develop and implement additional performance
improvement plans. Such a plan shall require improvements,
including the actions described in paragraph (2), for a Job Corps
center that fails to meet criteria established by the Secretary
other than the expected levels of performance described in
paragraph (2).
(g) Closure of Job Corps Center.--Prior to the closure of any Job
Corps center, the Secretary shall ensure--
(1) that the proposed decision to close the center is announced
in advance to the general public through publication in the Federal
Register or other appropriate means;
(2) the establishment of a reasonable comment period, not to
exceed 30 days, for interested individuals to submit written
comments to the Secretary; and
(3) that the Member of Congress who represents the district in
which such center is located is notified within a reasonable period
of time in advance of any final decision to close the center.
SEC. 160. GENERAL PROVISIONS.
The Secretary is authorized to--
(1) disseminate, with regard to the provisions of section 3204
of title 39, United States Code, data and information in such forms
as the Secretary shall determine to be appropriate, to public
agencies, private organizations, and the general public;
(2) subject to section 157(b), collect or compromise all
obligations to or held by the Secretary and exercise all legal or
equitable rights accruing to the Secretary 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 subtitle--
(A) for printing and binding, in accordance with applicable
law (including regulation); and
(B) without regard to any other law (including regulation),
for rent of buildings and space in buildings and for repair,
alteration, and improvement of buildings and space in buildings
rented by the Secretary, except that the Secretary shall not
expend funds under the authority of this subparagraph--
(i) except when necessary to obtain an item, service,
or facility, that is required in the proper administration
of this subtitle, and that otherwise could not be obtained,
or could not be obtained in the quantity or quality needed,
or at the time, in the form, or under the conditions in
which the item, service, or facility is needed; and
(ii) prior to having given written notification to the
Administrator of General Services (if the expenditure would
affect an activity that otherwise would be under the
jurisdiction of the General Services Administration) of the
intention of the Secretary to make the expenditure, and the
reasons and justifications for the expenditure.
SEC. 161. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out this subtitle such sums as may be necessary for each of the fiscal years 1999 through 2003.
Subtitle D--National Programs
SEC. 166. NATIVE AMERICAN PROGRAMS.
(a) Purpose.--
(1) In general.--The purpose of this section is to support
employment and training activities for Indian, Alaska Native, and
Native Hawaiian individuals in order--
(A) to develop more fully the academic, occupational, and
literacy skills of such individuals;
(B) to make such individuals more competitive in the
workforce; and
(C) to promote the economic and social development of
Indian, Alaska Native, and Native Hawaiian communities in
accordance with the goals and values of such communities.
(2) Indian policy.--All programs assisted under this section
shall be administered in a manner consistent with the principles of
the Indian Self-Determination and Education Assistance Act (25
U.S.C. 450 et seq.) and the government-to-government relationship
between the Federal Government and Indian tribal governments.
(b) Definitions.--As used in this section:
(1) Alaska native.--The term ``Alaska Native'' means a Native
as such term is defined in section 3(b) of the Alaska Native Claims
Settlement Act (43 U.S.C. 1602(b)).
(2) Indian, indian tribe, and tribal organization.--The terms
``Indian'', ``Indian tribe'', and ``tribal organization'' have the
meanings given such terms in subsections (d), (e), and (l),
respectively, of section 4 of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 450b).
(3) Native hawaiian and native hawaiian organization.--The
terms ``Native Hawaiian'' and ``Native Hawaiian organization'' have
the meanings given such terms in paragraphs (1) and (3),
respectively, of section 9212 of the Native Hawaiian Education Act
(20 U.S.C. 7912).
(c) Program Authorized.--
(1) In general.--The Secretary shall, on a competitive basis,
make grants to, or enter into contracts or cooperative agreements
with, Indian tribes, tribal organizations, Alaska Native entities,
Indian-controlled organizations serving Indians, or Native Hawaiian
organizations to carry out the authorized activities described in
subsection (d).
(2) Exception.--The competition for grants, contracts, or
cooperative agreements conducted under paragraph (1) shall be
conducted every 2 years, except that if a recipient of such a
grant, contract, or agreement has performed satisfactorily, the
Secretary may waive the requirements for such competition on
receipt from the recipient of a satisfactory 2-year program plan
for the succeeding 2-year period of the grant, contract, or
agreement.
(d) Authorized Activities.--
(1) In general.--Funds made available under subsection (c)
shall be used to carry out the activities described in paragraph
(2) that--
(A) are consistent with this section; and
(B) are necessary to meet the needs of Indians or Native
Hawaiians preparing to enter, reenter, or retain unsubsidized
employment.
(2) Workforce investment activities and supplemental
services.--
(A) In general.--Funds made available under subsection (c)
shall be used for--
(i) comprehensive workforce investment activities for
Indians or Native Hawaiians; or
(ii) supplemental services for Indian or Native
Hawaiian youth on or near Indian reservations and in
Oklahoma, Alaska, or Hawaii.
(B) Special rule.--Notwithstanding any other provision of
this section, individuals who were eligible to participate in
programs under section 401 of the Job Training Partnership Act
(29 U.S.C. 1671) (as such section was in effect on the day
before the date of enactment of this Act) shall be eligible to
participate in an activity assisted under this section.
(e) Program Plan.--In order to receive a grant or enter into a
contract or cooperative agreement under this section an entity
described in subsection (c) shall submit to the Secretary a program
plan that describes a 2-year strategy for meeting the needs of Indian,
Alaska Native, or Native Hawaiian individuals, as appropriate, in the
area served by such entity. Such plan shall--
(1) be consistent with the purpose of this section;
(2) identify the population to be served;
(3) identify the education and employment needs of the
population to be served and the manner in which the activities to
be provided will strengthen the ability of the individuals served
to obtain or retain unsubsidized employment;
(4) describe the activities to be provided and the manner in
which such activities are to be integrated with other appropriate
activities; and
(5) describe, after the entity submitting the plan consults
with the Secretary, the performance measures to be used to assess
the performance of entities in carrying out the activities assisted
under this section.
(f) Consolidation of Funds.--Each entity receiving assistance under
subsection (c) may consolidate such assistance with assistance received
from related programs in accordance with the provisions of the Indian
Employment, Training and Related Services Demonstration Act of 1992 (25
U.S.C. 3401 et seq.).
(g) Nonduplicative and Nonexclusive Services.--Nothing in this
section shall be construed--
(1) to limit the eligibility of any entity described in
subsection (c) to participate in any activity offered by a State or
local entity under this Act; or
(2) to preclude or discourage any agreement, between any entity
described in subsection (c) and any State or local entity, to
facilitate the provision of services by such entity or to the
population served by such entity.
(h) Administrative Provisions.--
(1) Organizational unit established.--The Secretary shall
designate a single organizational unit within the Department of
Labor that shall have primary responsibility for the administration
of the activities authorized under this section.
(2) Regulations.--The Secretary shall consult with the entities
described in subsection (c) in--
(A) establishing regulations to carry out this section,
including performance measures for entities receiving
assistance under such subsection, taking into account the
economic circumstances of such entities; and
(B) developing a funding distribution plan that takes into
consideration previous levels of funding (prior to the date of
enactment of this Act) to such entities.
(3) Waivers.--
(A) In general.--With respect to an entity described in
subsection (c), the Secretary, notwithstanding any other
provision of law, may, pursuant to a request submitted by such
entity that meets the requirements established under paragraph
(2), waive any of the statutory or regulatory requirements of
this title that are inconsistent with the specific needs of the
entities described in such subsection, except that the
Secretary may not waive requirements relating to wage and labor
standards, worker rights, participation and protection of
workers and participants, grievance procedures, and judicial
review.
(B) Request and approval.--An entity described in
subsection (c) that requests a waiver under subparagraph (A)
shall submit a plan to the Secretary to improve the program of
workforce investment activities carried out by the entity,
which plan shall meet the requirements established by the
Secretary and shall be generally consistent with the
requirements of section 189(i)(4)(B).
(4) Advisory council.--
(A) In general.--Using funds made available to carry out
this section, the Secretary shall establish a Native American
Employment and Training Council to facilitate the consultation
described in paragraph (2).
(B) Composition.--The Council shall be composed of
individuals, appointed by the Secretary, who are
representatives of the entities described in subsection (c).
(C) Duties.--The Council shall advise the Secretary on all
aspects of the operation and administration of the programs
assisted under this section, including the selection of the
individual appointed as the head of the unit established under
paragraph (1).
(D) Personnel matters.--
(i) Compensation of members.--Members of the Council
shall serve without compensation.
(ii) Travel expenses.--The members of the Council shall
be allowed travel expenses, including per diem in lieu of
subsistence, at rates authorized for employees of agencies
under subchapter I of chapter 57 of title 5, United States
Code, while away from their homes or regular places of
business in the performance of services for the Council.
(iii) Administrative support.--The Secretary shall
provide the Council with such administrative support as may
be necessary to perform the functions of the Council.
(E) Chairperson.--The Council shall select a chairperson
from among its members.
(F) Meetings.--The Council shall meet not less than twice
each year.
(G) Application.--Section 14 of the Federal Advisory
Committee Act (5 U.S.C. App.) shall not apply to the Council.
(5) Technical assistance.--The Secretary, acting through the
unit established under paragraph (1), is authorized to provide
technical assistance to entities described in subsection (c) that
receive assistance under subsection (c) to enable such entities to
improve the activities authorized under this section that are
provided by such entities.
(6) Agreement for certain federally recognized indian tribes to
transfer funds to the program.--A federally recognized Indian tribe
that administers funds provided under this section and funds
provided by more than one State under other sections of this title
may enter into an agreement with the Secretary and the Governors of
the affected States to transfer the funds provided by the States to
the program administered by the tribe under this section.
(i) Compliance With Single Audit Requirements; Related
Requirement.--Grants, contracts, and cooperative agreements entered
into under this section shall be subject to the requirements of chapter
75 of subtitle V of title 31, United States Code (enacted by the Single
Audit Act of 1984) and charging of costs under this section shall be
subject to appropriate circulars issued by the Office of Management and
Budget.
(j) Assistance to American Samoans in Hawaii.--
(1) In general.--Notwithstanding any other provision of law,
the Secretary is authorized to provide assistance to American
Samoans who reside in Hawaii for the co-location of federally
funded and State-funded workforce investment activities.
(2) Authorization of appropriations.--There are authorized to
be appropriated for fiscal year 1999 such sums as may be necessary
to carry out this subsection.
SEC. 167. MIGRANT AND SEASONAL FARMWORKER PROGRAMS.
(a) In General.--Every 2 years, the Secretary shall, on a
competitive basis, make grants to, or enter into contracts with,
eligible entities to carry out the activities described in subsection
(d).
(b) Eligible Entities.--To be eligible to receive a grant or enter
into a contract under this section, an entity shall have an
understanding of the problems of eligible migrant and seasonal
farmworkers (including dependents), a familiarity with the area to be
served, and the ability to demonstrate a capacity to administer
effectively a diversified program of workforce investment activities
(including youth activities) and related assistance for eligible
migrant and seasonal farmworkers.
(c) Program Plan.--
(1) In general.--To be eligible to receive a grant or enter
into a contract under this section, an entity described in
subsection (b) shall submit to the Secretary a plan that describes
a 2-year strategy for meeting the needs of eligible migrant and
seasonal farmworkers in the area to be served by such entity.
(2) Contents.--Such plan shall--
(A) identify the education and employment needs of the
population to be served and the manner in which the services to
be provided will strengthen the ability of the eligible migrant
and seasonal farmworkers and dependents to obtain or retain
unsubsidized employment or stabilize their unsubsidized
employment;
(B) describe the related assistance and supportive services
to be provided and the manner in which such assistance and
services are to be integrated and coordinated with other
appropriate services; and
(C) describe the indicators of performance to be used to
assess the performance of such entity in carrying out the
activities assisted under this section.
(3) Administration.--Grants and contracts awarded under this
section shall be centrally administered by the Department of Labor
and competitively awarded by the Secretary using procedures
consistent with standard Federal Government competitive procurement
policies.
(4) Competition.--
(A) In general.--The competition for grants made and
contracts entered into under this section shall be conducted
every 2 years.
(B) Exception.--Notwithstanding subparagraph (A), if a
recipient of such a grant or contract has performed
satisfactorily under the terms of the grant agreement or
contract, the Secretary may waive the requirement for such
competition for such recipient upon receipt from the recipient
of a satisfactory 2-year plan described in paragraph (1) for
the succeeding 2-year grant or contract period. The Secretary
may exercise the waiver authority of the preceding sentence not
more than once during any 4-year period with respect to any
single recipient.
(d) Authorized Activities.--Funds made available under this section
shall be used to carry out workforce investment activities (including
youth activities) and provide related assistance for eligible migrant
and seasonal farmworkers, which may include employment, training,
educational assistance, literacy assistance, an English language
program, worker safety training, housing, supportive services, dropout
prevention activities, followup services for those individuals placed
in employment, self-employment and related business enterprise
development education as needed by eligible migrant and seasonal
farmworkers and identified pursuant to the plan required by subsection
(c), and technical assistance relating to capacity enhancement in such
areas as management information technology.
(e) Consultation With Governors and Local Boards.--In making grants
and entering into contracts under this section, the Secretary shall
consult with the Governors and local boards of the States in which the
eligible entities will carry out the activities described in subsection
(d).
(f) Regulations.--The Secretary shall consult with eligible migrant
and seasonal farmworkers groups and States in establishing regulations
to carry out this section, including performance measures for eligible
entities that take into account the economic circumstances and
demographics of eligible migrant and seasonal farmworkers.
(g) Compliance With Single Audit Requirements; Related
Requirement.--Grants and contracts entered into under this section
shall be subject to the requirements of chapter 75 of subtitle V of
title 31, United States Code (enacted by the Single Audit Act of 1984)
and charging of costs under this section shall be subject to
appropriate circulars issued by the Office of Management and Budget.
(h) Definitions.--In this section:
(1) Disadvantaged.--The term ``disadvantaged'', used with
respect to a farmworker, means a farmworker whose income, for 12
consecutive months out of the 24 months prior to application for
the program involved, does not exceed the higher of--
(A) the poverty line (as defined in section 334(a)(2)(B))
for an equivalent period; or
(B) 70 percent of the lower living standard income level,
for an equivalent period.
(2) Eligible migrant and seasonal farmworkers.--The term
``eligible migrant and seasonal farmworkers'' means individuals who
are eligible migrant farmworkers or are eligible seasonal
farmworkers.
(3) Eligible migrant farmworker.--The term ``eligible migrant
farmworker'' means--
(A) an eligible seasonal farmworker described in paragraph
(4)(A) whose agricultural labor requires travel to a job site
such that the farmworker is unable to return to a permanent
place of residence within the same day; and
(B) a dependent of the farmworker described in subparagraph
(A).
(4) Eligible seasonal farmworker.--The term ``eligible seasonal
farmworker'' means--
(A) a disadvantaged person who, for 12 consecutive months
out of the 24 months prior to application for the program
involved, has been primarily employed in agricultural labor
that is characterized by chronic unemployment or
underemployment; and
(B) a dependent of the person described in subparagraph (A).
SEC. 168. VETERANS' WORKFORCE INVESTMENT PROGRAMS.
(a) Authorization.--
(1) In general.--The Secretary shall conduct, directly or
through grants or contracts, programs to meet the needs for
workforce investment activities of veterans with service-connected
disabilities, veterans who have significant barriers to employment,
veterans who served on active duty in the armed forces during a war
or in a campaign or expedition for which a campaign badge has been
authorized, and recently separated veterans.
(2) Conduct of programs.--Programs supported under this section
may be conducted through grants and contracts with public agencies
and private nonprofit organizations, including recipients of
Federal assistance under other provisions of this title, that the
Secretary determines have an understanding of the unemployment
problems of veterans described in paragraph (1), familiarity with
the area to be served, and the capability to administer effectively
a program of workforce investment activities for such veterans.
(3) Required activities.--Programs supported under this section
shall include--
(A) activities to enhance services provided to veterans by
other providers of workforce investment activities funded by
Federal, State, or local government;
(B) activities to provide workforce investment activities
to such veterans that are not adequately provided by other
public providers of workforce investment activities; and
(C) outreach and public information activities to develop
and promote maximum job and job training opportunities for such
veterans and to inform such veterans about employment, job
training, on-the-job training and educational opportunities
under this title, under title 38, United States Code, and under
other provisions of law, which activities shall be coordinated
with activities provided through the one-stop centers described
in section 134(c).
(b) Administration of Programs.--
(1) In general.--The Secretary shall administer programs
supported under this section through the Assistant Secretary for
Veterans' Employment and Training.
(2) Additional responsibilities.--In carrying out
responsibilities under this section, the Assistant Secretary for
Veterans' Employment and Training shall--
(A) be responsible for the awarding of grants and contracts
and the distribution of funds under this section and for the
establishment of appropriate fiscal controls, accountability,
and program performance measures for recipients of grants and
contracts under this section; and
(B) consult with the Secretary of Veterans Affairs and take
steps to ensure that programs supported under this section are
coordinated, to the maximum extent feasible, with related
programs and activities conducted under title 38, United States
Code, including programs and activities conducted under
subchapter II of chapter 77 of such title, chapters 30, 31, 32,
and 34 of such title, and sections 1712A, 1720A, 3687, and
4103A of such title.
SEC. 169. YOUTH OPPORTUNITY GRANTS.
(a) Grants.--
(1) In general.--Using funds made available under section
127(b)(1)(A), the Secretary shall make grants to eligible local
boards and eligible entities described in subsection (d) to provide
activities described in subsection (b) for youth to increase the
long-term employment of youth who live in empowerment zones,
enterprise communities, and high poverty areas and who seek
assistance.
(2) Definition.--In this section, the term ``youth'' means an
individual who is not less than age 14 and not more than age 21.
(3) Grant period.--The Secretary may make a grant under this
section for a 1-year period, and may renew the grant for each of
the 4 succeeding years.
(4) Grant awards.--In making grants under this section, the
Secretary shall ensure that grants are distributed equitably among
local boards and entities serving urban areas and local boards and
entities serving rural areas, taking into consideration the poverty
rate in such urban and rural areas, as described in subsection
(c)(3)(B).
(b) Use of Funds.--
(1) In general.--A local board or entity that receives a grant
under this section shall use the funds made available through the
grant to provide activities that meet the requirements of section
129, except as provided in paragraph (2), as well as youth
development activities such as activities relating to leadership
development, citizenship, and community service, and recreation
activities.
(2) Intensive placement and followup services.--In providing
activities under this section, a local board or entity shall
provide--
(A) intensive placement services; and
(B) followup services for not less than 24 months after the
completion of participation in the other activities described
in this subsection, as appropriate.
(c) Eligible Local Boards.--To be eligible to receive a grant under
this section, a local board shall serve a community that--
(1) has been designated as an empowerment zone or enterprise
community under section 1391 of the Internal Revenue Code of 1986;
(2)(A) is a State without a zone or community described in
paragraph (1); and
(B) has been designated as a high poverty area by the Governor
of the State; or
(3) is 1 of 2 areas in a State that--
(A) have been designated by the Governor as areas for which
a local board may apply for a grant under this section; and
(B) meet the poverty rate criteria set forth in subsections
(a)(4), (b), and (d) of section 1392 of the Internal Revenue
Code of 1986.
(d) Eligible Entities.--To be eligible to receive a grant under
this section, an entity (other than a local board) shall--
(1) be a recipient of financial assistance under section 166;
and
(2) serve a community that--
(A) meets the poverty rate criteria set forth in
subsections (a)(4), (b), and (d) of section 1392 of the
Internal Revenue Code of 1986; and
(B) is located on an Indian reservation or serves Oklahoma
Indians or Alaska Native villages or Native groups (as such
terms are defined in section 3 of the Alaska Native Claims
Settlement Act (43 U.S.C. 1602)).
(e) Application.--To be eligible to receive a grant under this
section, a local board or entity shall submit an application to the
Secretary at such time, in such manner, and containing such information
as the Secretary may require, including--
(1) a description of the activities that the local board or
entity will provide under this section to youth in the community
described in subsection (c);
(2) a description of the performance measures negotiated under
subsection (f), and the manner in which the local boards or
entities will carry out the activities to meet the performance
measures;
(3) a description of the manner in which the activities will be
linked to activities described in section 129; and
(4) a description of the community support, including financial
support through leveraging additional public and private resources,
for the activities.
(f) Performance Measures.--
(1) In general.--The Secretary shall negotiate and reach
agreement with the local board or entity on performance measures
for the indicators of performance referred to in subparagraphs (A)
and (B) of section 136(b)(2) that will be used to evaluate the
performance of the local board or entity in carrying out the
activities described in subsection (b). Each local performance
measure shall consist of such a indicator of performance, and a
performance level referred to in paragraph (2).
(2) Performance levels.--The Secretary shall negotiate and
reach agreement with the local board or entity regarding the levels
of performance expected to be achieved by the local board or entity
on the indicators of performance.
(g) Role Model Academy Project.--
(1) In general.--Using the funds made available pursuant to
section 127(b)(1)(A)(iv) for fiscal year 1999, the Secretary shall
provide assistance to an entity to carry out a project establishing
a role model academy for out-of-school youth.
(2) Residential center.--The entity shall use the assistance to
establish an academy that consists of a residential center located
on the site of a military installation closed or realigned pursuant
to a law providing for closures and realignments of such
installations.
(3) Services.--The academy established pursuant to this
subsection shall provide services that--
(A) utilize a military style model that emphasizes
leadership skills and discipline, or another model of
demonstrated effectiveness; and
(B) include vocational training, secondary school course
work leading to a secondary school diploma or recognized
equivalent, and the use of mentors who serve as role models and
who provide academic training and career counseling to the
youth.
SEC. 170. TECHNICAL ASSISTANCE.
(a) General Technical Assistance.--
(1) In general.--The Secretary shall provide, coordinate, and
support the development of, appropriate training, technical
assistance, staff development, and other activities, including
assistance in replicating programs of demonstrated effectiveness,
to States and localities, and, in particular, to assist States in
making transitions from carrying out activities under the
provisions of law repealed under section 199 to carry out
activities under this title.
(2) Form of assistance.--In carrying out paragraph (1) on
behalf of a State, or recipient of financial assistance under any
of sections 166 through 169, the Secretary, after consultation with
the State or grant recipient, may award grants and enter into
contracts and cooperative agreements.
(3) Limitation.--Grants or contracts awarded under paragraph
(1) to entities other than States or local units of government that
are for amounts in excess of $100,000 shall only be awarded on a
competitive basis.
(b) Dislocated Worker Technical Assistance.--
(1) Authority.--Of the amounts available pursuant to section
132(a)(2), the Secretary shall reserve not more than 5 percent of
such amounts to provide technical assistance to States that do not
meet the State performance measures described in section 136 with
respect to employment and training activities for dislocated
workers. Using such reserved funds, the Secretary may provide such
assistance to other States, local areas, and other entities
involved in providing assistance to dislocated workers, to promote
the continuous improvement of assistance provided to dislocated
workers, under this title.
(2) Training.--Amounts reserved under this subsection may be
used to provide for the training of staff, including specialists,
who provide rapid response services. Such training shall include
instruction in proven methods of promoting, establishing, and
assisting labor-management committees. Such projects shall be
administered through the dislocated worker office described in
section 174(b).
SEC. 171. DEMONSTRATION, PILOT, MULTISERVICE, RESEARCH, AND MULTISTATE PROJECTS.
(a) Strategic Plan.--
(1) In general.--After consultation with States, localities,
and other interested parties, the Secretary shall, every 2 years,
publish in the Federal Register, a plan that describes the
demonstration and pilot (including dislocated worker demonstration
and pilot), multiservice, research, and multistate project
priorities of the Department of Labor concerning employment and
training for the 5-year period following the submission of the
plan. Copies of the plan shall be transmitted to the appropriate
committees of Congress.
(2) Factors.--The plan published under paragraph (1) shall
contain strategies to address national employment and training
problems and take into account factors such as--
(A) the availability of existing research (as of the date
of the publication);
(B) the need to ensure results that have interstate
validity;
(C) the benefits of economies of scale and the efficiency
of proposed projects; and
(D) the likelihood that the results of the projects will be
useful to policymakers and stakeholders in addressing
employment and training problems.
(b) Demonstration and Pilot Projects.--
(1) In general.--Under a plan published under subsection (a),
the Secretary shall, through grants or contracts, carry out
demonstration and pilot projects for the purpose of developing and
implementing techniques and approaches, and demonstrating the
effectiveness of specialized methods, in addressing employment and
training needs. Such projects shall include the provision of direct
services to individuals to enhance employment opportunities and an
evaluation component and may include--
(A) the establishment of advanced manufacturing technology
skill centers developed through local partnerships of industry,
labor, education, community-based organizations, and economic
development organizations to meet unmet, high-tech skill needs
of local communities;
(B) projects that provide training to upgrade the skills of
employed workers who reside and are employed in enterprise
communities or empowerment zones;
(C) programs conducted jointly with the Department of
Defense to develop training programs utilizing computer-based
and other innovative learning technologies;
(D) projects that promote the use of distance learning,
enabling students to take courses through the use of media
technology such as videos, teleconferencing computers, and the
Internet;
(E) projects that assist in providing comprehensive
services to increase the employment rates of out-of-school
youth residing in targeted high poverty areas within
empowerment zones and enterprise communities;
(F) the establishment of partnerships with national
organizations with special expertise in developing, organizing,
and administering employment and training services, for
individuals with disabilities, at the national, State, and
local levels;
(G) projects to assist public housing authorities that
provide, to public housing residents, job training programs
that demonstrate success in upgrading the job skills and
promoting employment of the residents; and
(H) projects that assist local areas to develop and
implement local self-sufficiency standards to evaluate the
degree to which participants in programs under this title are
achieving self-sufficiency.
(2) Limitations.--
(A) Competitive awards.--Grants or contracts awarded for
carrying out demonstration and pilot projects under this
subsection shall be awarded only on a competitive basis, except
that a noncompetitive award may be made in the case of a
project that is funded jointly with other public or private
sector entities that provide a portion of the funding for the
project.
(B) Eligible entities.--Grants or contracts may be awarded
under this subsection only to--
(i) entities with recognized expertise in--
(I) conducting national demonstration projects;
(II) utilizing state-of-the-art demonstration
methods; or
(III) conducting evaluations of workforce
investment projects; or
(ii) State and local entities with expertise in
operating or overseeing workforce investment programs.
(C) Time limits.--The Secretary shall establish appropriate
time limits for carrying out demonstration and pilot projects
under this subsection.
(c) Multiservice Projects, Research Projects, and Multistate
Projects.--
(1) Multiservice projects.--Under a plan published under
subsection (a), the Secretary shall, through grants or contracts,
carry out multiservice projects--
(A) that will test an array of approaches to the provision
of employment and training services to a variety of targeted
populations;
(B) in which the entity carrying out the project, in
conjunction with employers, organized labor, and other groups
such as the disability community, will design, develop, and
test various training approaches in order to determine
effective practices; and
(C) that will assist in the development and replication of
effective service delivery strategies for targeted populations
for the national employment and training system as a whole.
(2) Research projects.--
(A) In general.--Under a plan published under subsection
(a), the Secretary shall, through grants or contracts, carry
out research projects that will contribute to the solution of
employment and training problems in the United States.
(B) Formula improvement study and report.--
(i) Study.--The Secretary shall conduct a 2-year study
concerning improvements in the formulas described in
section 132(b)(1)(B) and paragraphs (2)(A) and (3) of
section 133(b) (regarding distributing funds under subtitle
B to States and local areas for adult employment and
training activities). In conducting the study, the
Secretary shall examine means of improving the formulas
by--
(I) developing formulas based on statistically
reliable data;
(II) developing formulas that are consistent with
the goals and objectives of this title; and
(III) developing formulas based on organizational
and financial stability of State boards and local
boards.
(ii) Report.--The Secretary shall prepare and submit to
Congress a report containing the results of the study,
including recommendations for improved formulas.
(3) Multistate projects.--
(A) In general.--
(i) Authority.--Under a plan published under subsection
(a), the Secretary may, through grants or contracts, carry
out multistate projects that require demonstrated expertise
that is available at the national level to effectively
disseminate best practices and models for implementing
employment and training services, address the specialized
employment and training needs of particular service
populations, or address industry-wide skill shortages.
(ii) Design of grants.--Grants or contracts awarded
under this subsection shall be designed to obtain
information relating to the provision of services under
different economic conditions or to various demographic
groups in order to provide guidance at the national and
State levels about how best to administer specific
employment and training services.
(4) Limitations.--
(A) Competitive awards.--Grants or contracts awarded for
carrying out projects under this subsection in amounts that
exceed $100,000 shall be awarded only on a competitive basis,
except that a noncompetitive award may be made in the case of a
project that is funded jointly with other public or private
sector entities that provide a substantial portion of
assistance under the grant or contract for the project.
(B) Time limits.--A grant or contract shall not be awarded
under this subsection to the same organization for more than 3
consecutive years unless such grant or contract is
competitively reevaluated within such period.
(C) Peer review.--
(i) In general.--The Secretary shall utilize a peer
review process--
(I) to review and evaluate all applications for
grants in amounts that exceed $500,000 that are
submitted under this section; and
(II) to review and designate exemplary and
promising programs under this section.
(ii) Availability of funds.--The Secretary is
authorized to use funds provided under this section to
carry out peer review activities under this subparagraph.
(D) Priority.--In awarding grants or contracts under this
subsection, priority shall be provided to entities with
nationally recognized expertise in the methods, techniques, and
knowledge of workforce investment activities and shall include
appropriate time limits, established by the Secretary, for the
duration of such projects.
(d) Dislocated Worker Projects.--Of the amount made available
pursuant to section 132(a)(2)(A) for any program year, the Secretary
shall use not more than 10 percent of such amount to carry out
demonstration and pilot projects, multiservice projects, and multistate
projects, relating to the employment and training needs of dislocated
workers. Of the requirements of this section, such projects shall be
subject only to the provisions relating to review and evaluation of
applications under subsection (c)(4)(C). Such projects may include
demonstration and pilot projects relating to promoting self-employment,
promoting job creation, averting dislocations, assisting dislocated
farmers, assisting dislocated fishermen, and promoting public works.
Such projects shall be administered through the dislocated worker
office described in section 173(b).
SEC. 172. EVALUATIONS.
(a) Programs and Activities Carried Out Under This Title.--For the
purpose of improving the management and effectiveness of programs and
activities carried out under this title, the Secretary shall provide
for the continuing evaluation of the programs and activities, including
those programs and activities carried out under section 171. Such
evaluations shall address--
(1) the general effectiveness of such programs and activities
in relation to their cost, including the extent to which the
programs and activities--
(A) improve the employment competencies of participants in
comparison to comparably-situated individuals who did not
participate in such programs and activities; and
(B) to the extent feasible, increase the level of total
employment over the level that would have existed in the
absence of such programs and activities;
(2) the effectiveness of the performance measures relating to
such programs and activities;
(3) the effectiveness of the structure and mechanisms for
delivery of services through such programs and activities;
(4) the impact of the programs and activities on the community
and participants involved;
(5) the impact of such programs and activities on related
programs and activities;
(6) the extent to which such programs and activities meet the
needs of various demographic groups; and
(7) such other factors as may be appropriate.
(b) Other Programs and Activities.--The Secretary may conduct
evaluations of other federally funded employment-related programs and
activities under other provisions of law.
(c) Techniques.--Evaluations conducted under this section shall
utilize appropriate methodology and research designs, including the use
of control groups chosen by scientific random assignment methodologies.
The Secretary shall conduct as least 1 multisite control group
evaluation under this section by the end of fiscal year 2005.
(d) Reports.--The entity carrying out an evaluation described in
subsection (a) or (b) shall prepare and submit to the Secretary a draft
report and a final report containing the results of the evaluation.
(e) Reports to Congress.--Not later than 30 days after the
completion of such a draft report, the Secretary shall transmit the
draft report to the Committee on Education and the Workforce of the
House of Representatives and the Committee on Labor and Human Resources
of the Senate. Not later than 60 days after the completion of such a
final report, the Secretary shall transmit the final report to such
committees of the Congress.
(f) Coordination.--The Secretary shall ensure the coordination of
evaluations carried out by States pursuant to section 136(e) with the
evaluations carried out under this section.
SEC. 173. NATIONAL EMERGENCY GRANTS.
(a) In General.--The Secretary is authorized to award national
emergency grants in a timely manner--
(1) to an entity described in subsection (c) to provide
employment and training assistance to workers affected by major
economic dislocations, such as plant closures, mass layoffs, or
closures and realignments of military installations;
(2) to provide assistance to the Governor of any State within
the boundaries of which is an area that has suffered an emergency
or a major disaster as defined in paragraphs (1) and (2),
respectively, of section 102 of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42 U.S.C. 5122 (1) and (2))
(referred to in this section as the ``disaster area'') to provide
disaster relief employment in the area; and
(3) to provide additional assistance to a State or local board
for eligible dislocated workers in a case in which the State or
local board has expended the funds provided under this section to
carry out activities described in paragraphs (1) and (2) and can
demonstrate the need for additional funds to provide appropriate
services for such workers, in accordance with requirements
prescribed by the Secretary.
(b) Administration.--The Secretary shall designate a dislocated
worker office to coordinate the functions of the Secretary under this
title relating to employment and training activities for dislocated
workers, including activities carried out under the national emergency
grants.
(c) Employment and Training Assistance Requirements.--
(1) Grant recipient eligibility.--
(A) Application.--To be eligible to receive a grant under
subsection (a)(1), an entity shall submit an application to the
Secretary at such time, in such manner, and containing such
information as the Secretary may require.
(B) Eligible entity.--In this paragraph, the term
``entity'' means a State, a local board, an entity described in
section 166(c), entities determined to be eligible by the
Governor of the State involved, and other entities that
demonstrate to the Secretary the capability to effectively
respond to the circumstances relating to particular
dislocations.
(2) Participant eligibility.--
(A) In general.--In order to be eligible to receive
employment and training assistance under a national emergency
grant awarded pursuant to subsection (a)(1), an individual
shall be--
(i) a dislocated worker;
(ii) a civilian employee of the Department of Defense
or the Department of Energy employed at a military
installation that is being closed, or that will undergo
realignment, within the next 24 months after the date of
the determination of eligibility;
(iii) an individual who is employed in a nonmanagerial
position with a Department of Defense contractor, who is
determined by the Secretary of Defense to be at-risk of
termination from employment as a result of reductions in
defense expenditures, and whose employer is converting
operations from defense to nondefense applications in order
to prevent worker layoffs; or
(iv) a member of the Armed Forces who--
(I) was on active duty or full-time National Guard
duty;
(II)(aa) is involuntarily separated (as defined in
section 1141 of title 10, United States Code) from
active duty or full-time National Guard duty; or
(bb) is separated from active duty or full-time
National Guard duty pursuant to a special separation
benefits program under section 1174a of title 10,
United States Code, or the voluntary separation
incentive program under section 1175 of that title;
(III) is not entitled to retired or retained pay
incident to the separation described in subclause (II);
and
(IV) applies for such employment and training
assistance before the end of the 180-day period
beginning on the date of that separation.
(B) Retraining assistance.--The individuals described in
subparagraph (A)(iii) shall be eligible for retraining
assistance to upgrade skills by obtaining marketable skills
needed to support the conversion described in subparagraph
(A)(iii).
(C) Additional requirements.--The Secretary shall establish
and publish additional requirements related to eligibility for
employment and training assistance under the national emergency
grants to ensure effective use of the funds available for this
purpose.
(D) Definitions.--In this paragraph, the terms ``military
institution'' and ``realignment'' have the meanings given the
terms in section 2910 of the Defense Base Closure and
Realignment Act of 1990 (Public Law 101-510; 10 U.S.C. 2687
note).
(d) Disaster Relief Employment Assistance Requirements.--
(1) In general.--Funds made available under subsection (a)(2)--
(A) shall be used to provide disaster relief employment on
projects that provide food, clothing, shelter, and other
humanitarian assistance for disaster victims, and projects
regarding demolition, cleaning, repair, renovation, and
reconstruction of damaged and destroyed structures, facilities,
and lands located within the disaster area;
(B) may be expended through public and private agencies and
organizations engaged in such projects; and
(C) may be expended to provide employment and training
activities.
(2) Eligibility.--An individual shall be eligible to be offered
disaster relief employment under subsection (a)(2) if such
individual is a dislocated worker, is a long-term unemployed
individual, or is temporarily or permanently laid off as a
consequence of the disaster.
(3) Limitations on disaster relief employment.--No individual
shall be employed under subsection (a)(2) for more than 6 months
for work related to recovery from a single natural disaster.
SEC. 174. AUTHORIZATION OF APPROPRIATIONS.
(a) Native American Programs; Migrant and Seasonal Farmworker
Programs; Veterans' Workforce Investment Programs.--
(1) In general.--Subject to paragraph (2), there are authorized
to be appropriated to carry out sections 166 through 168 such sums
as may be necessary for each of the fiscal years 1999 through 2003.
(2) Reservations.--Of the amount appropriated pursuant to the
authorization of appropriations under paragraph (1) for a fiscal
year, the Secretary shall--
(A) reserve not less than $55,000,000 for carrying out
section 166;
(B) reserve not less than $70,000,000 for carrying out
section 167; and
(C) reserve not less than $7,300,000 for carrying out
section 168.
(b) Technical Assistance; Demonstration and Pilot Projects;
Evaluations; Incentive Grants.--
(1) In general.--Subject to paragraph (2), there are authorized
to be appropriated to carry out sections 170 through 172 and
section 503 such sums as may be necessary for each of the fiscal
years 1999 through 2003.
(2) Reservations.--Of the amount appropriated pursuant to the
authorization of appropriations under paragraph (1) for a fiscal
year, the Secretary shall--
(A)(i) for fiscal year 1999, reserve up to 40 percent for
carrying out section 170 (other than subsection (b) of such
section);
(ii) for fiscal year 2000, reserve up to 25 percent for
carrying out section 170 (other than subsection (b) of such
section); and
(iii) for each of the fiscal years 2001 through 2003,
reserve up to 20 percent for carrying out section 170 (other
than subsection (b) of such section);
(B)(i) for fiscal year 1999, reserve not less than 50
percent for carrying out section 171; and
(ii) for each of the fiscal years 2000 through 2003,
reserve not less than 45 percent for carrying out section 171;
(C)(i) for fiscal year 1999, reserve not less than 10
percent for carrying out section 172; and
(ii) for each of the fiscal years 2000 through 2003,
reserve not less than 10 percent for carrying out section 172;
and
(D)(i) for fiscal year 1999, reserve no funds for carrying
out section 503;
(ii) for fiscal year 2000, reserve up to 20 percent for
carrying out section 503; and
(iii) for each of the fiscal years 2001 through 2003,
reserve up to 25 percent for carrying out section 503.
Subtitle E--Administration
SEC. 181. REQUIREMENTS AND RESTRICTIONS.
(a) Benefits.--
(1) Wages.--
(A) In general.--Individuals in on-the-job training or
individuals employed in activities under this title shall be
compensated at the same rates, including periodic increases, as
trainees or employees who are similarly situated in similar
occupations by the same employer and who have similar training,
experience, and skills, and such rates shall be in accordance
with applicable law, but in no event less than the higher of
the rate specified in section 6(a)(1) of the Fair Labor
Standards Act of 1938 (29 U.S.C. 206(a)(1)) or the applicable
State or local minimum wage law.
(B) Rule of construction.--The reference in subparagraph
(A) to section 6(a)(1) of the Fair Labor Standards Act of 1938
(29 U.S.C. 206(a)(1))--
(i) shall be deemed to be a reference to section
6(a)(3) of that Act for individuals in American Samoa; and
(ii) shall not be applicable for individuals in other
territorial jurisdictions in which section 6 of the Fair
Labor Standards Act of 1938 does not apply.
(2) Treatment of allowances, earnings, and payments.--
Allowances, earnings, and payments to individuals participating in
programs under this title shall not be considered as income for the
purposes of determining eligibility for and the amount of income
transfer and in-kind aid furnished under any Federal or federally
assisted program based on need, other than as provided under the
Social Security Act (42 U.S.C. 301 et seq.).
(b) Labor Standards.--
(1) Limitations on activities that impact wages of employees.--
No funds provided under this title shall be used to pay the wages
of incumbent employees during their participation in economic
development activities provided through a statewide workforce
investment system.
(2) Displacement.--
(A) Prohibition.--A participant in a program or activity
authorized under this title (referred to in this section as a
``specified activity'') shall not displace (including a partial
displacement, such as a reduction in the hours of nonovertime
work, wages, or employment benefits) any currently employed
employee (as of the date of the participation).
(B) Prohibition on impairment of contracts.--A specified
activity shall not impair an existing contract for services or
collective bargaining agreement, and no such activity that
would be inconsistent with the terms of a collective bargaining
agreement shall be undertaken without the written concurrence
of the labor organization and employer concerned.
(3) Other prohibitions.--A participant in a specified activity
shall not be employed in a job if--
(A) any other individual is on layoff from the same or any
substantially equivalent job;
(B) the employer has terminated the employment of any
regular employee or otherwise reduced the workforce of the
employer with the intention of filling the vacancy so created
with the participant; or
(C) the job is created in a promotional line that will
infringe in any way upon the promotional opportunities of
currently employed individuals (as of the date of the
participation).
(4) Health and safety.--Health and safety standards established
under Federal and State law otherwise applicable to working
conditions of employees shall be equally applicable to working
conditions of participants engaged in specified activities. To the
extent that a State workers' compensation law applies, workers'
compensation shall be provided to participants on the same basis as
the compensation is provided to other individuals in the State in
similar employment.
(5) Employment conditions.--Individuals in on-the-job training
or individuals employed in programs and activities under this
title, shall be provided benefits and working conditions at the
same level and to the same extent as other trainees or employees
working a similar length of time and doing the same type of work.
(6) Opportunity to submit comments.--Interested members of the
public, including representatives of businesses and of labor
organizations, shall be provided an opportunity to submit comments
to the Secretary with respect to programs and activities proposed
to be funded under subtitle B.
(7) No impact on union organizing.--Each recipient of funds
under this title shall provide to the Secretary assurances that
none of such funds will be used to assist, promote, or deter union
organizing.
(c) Grievance Procedure.--
(1) In general.--Each State and local area receiving an
allotment under this title shall establish and maintain a procedure
for grievances or complaints alleging violations of the
requirements of this title from participants and other interested
or affected parties. Such procedure shall include an opportunity
for a hearing and be completed within 60 days after the filing of
the grievance or complaint.
(2) Investigation.--
(A) In general.--The Secretary shall investigate an
allegation of a violation described in paragraph (1) if--
(i) a decision relating to such violation has not been
reached within 60 days after the date of the filing of the
grievance or complaint and either party appeals to the
Secretary; or
(ii) a decision relating to such violation has been
reached within such 60 days and the party to which such
decision is adverse appeals such decision to the Secretary.
(B) Additional requirement.--The Secretary shall make a
final determination relating to an appeal made under
subparagraph (A) no later than 120 days after receiving such
appeal.
(3) Remedies.--Remedies that may be imposed under this section
for a violation of any requirement of this title shall be limited--
(A) to suspension or termination of payments under this
title;
(B) to prohibition of placement of a participant with an
employer that has violated any requirement under this title;
(C) where applicable, to reinstatement of an employee,
payment of lost wages and benefits, and reestablishment of
other relevant terms, conditions, and privileges of employment;
and
(D) where appropriate, to other equitable relief.
(4) Rule of construction.--Nothing in paragraph (3) shall be
construed to prohibit a grievant or complainant from pursuing a
remedy authorized under another Federal, State, or local law for a
violation of this title.
(d) Relocation.--
(1) Prohibition on use of funds to encourage or induce
relocation.--No funds provided under this title shall be used, or
proposed for use, to encourage or induce the relocation of a
business or part of a business if such relocation would result in a
loss of employment for any employee of such business at the
original location and such original location is within the United
States.
(2) Prohibition on use of funds for customized or skill
training and related activities after relocation.--No funds
provided under this title for an employment and training activity
shall be used for customized or skill training, on-the-job
training, or company-specific assessments of job applicants or
employees, for any business or part of a business that has
relocated, until the date that is 120 days after the date on which
such business commences operations at the new location, if the
relocation of such business or part of a business results in a loss
of employment for any employee of such business at the original
location and such original location is within the United States.
(3) Repayment.--If the Secretary determines that a violation of
paragraph (1) or (2) has occurred, the Secretary shall require the
State that has violated such paragraph to repay to the United
States an amount equal to the amount expended in violation of such
paragraph.
(e) Limitation on Use of Funds.--No funds available under this
title shall be used for employment generating activities, economic
development activities, investment in revolving loan funds,
capitalization of businesses, investment in contract bidding resource
centers, and similar activities that are not directly related to
training for eligible individuals under this title. No funds available
under subtitle B shall be used for foreign travel.
(f) Testing and Sanctioning for Use of Controlled Substances.--
(1) In general.--Notwithstanding any other provision of law, a
State shall not be prohibited by the Federal Government from--
(A) testing participants in programs under subtitle B for
the use of controlled substances; and
(B) sanctioning such participants who test positive for the
use of such controlled substances.
(2) Additional requirements.--
(A) Period of sanction.--In sanctioning participants in
programs under subtitle B who test positive for the use of
controlled substances--
(i) with respect to the first occurrence for which a
participant tests positive, a State may exclude the
participant from the program for a period not to exceed 6
months; and
(ii) with respect to the second occurrence and each
subsequent occurrence for which a participant tests
positive, a State may exclude the participant from the
program for a period not to exceed 2 years.
(B) Appeal.--The testing of participants and the imposition
of sanctions under this subsection shall be subject to
expeditious appeal in accordance with due process procedures
established by the State.
(C) Privacy.--A State shall establish procedures for
testing participants for the use of controlled substances that
ensure a maximum degree of privacy for the participants.
(4) Funding requirement.--In testing and sanctioning of
participants for the use of controlled substances in accordance
with this subsection, the only Federal funds that a State may use
are the amounts made available for the administration of statewide
workforce investment activities under section 134(a)(3)(B).
SEC. 182. PROMPT ALLOCATION OF FUNDS.
(a) Allotments Based on Latest Available Data.--All allotments to
States and grants to outlying areas under this title shall be based on
the latest available data and estimates satisfactory to the Secretary.
All data relating to disadvantaged adults and disadvantaged youth shall
be based on the most recent satisfactory data from the Bureau of the
Census.
(b) Publication in Federal Register Relating to Formula Funds.--
Whenever the Secretary allots funds required to be allotted under this
title, the Secretary shall publish in a timely fashion in the Federal
Register the proposed amount to be distributed to each recipient of the
funds.
(c) Requirement for Funds Distributed by Formula.--All funds
required to be allotted under section 127 or 132 shall be allotted
within 45 days after the date of enactment of the Act appropriating the
funds, except that, if such funds are appropriated in advance as
authorized by section 189(g), such funds shall be allotted or allocated
not later than the March 31 preceding the program year for which such
funds are to be available for obligation.
(d) Publication in Federal Register Relating to Discretionary
Funds.--Whenever the Secretary utilizes a formula to allot or allocate
funds made available for distribution at the Secretary's discretion
under this title, the Secretary shall, not later than 30 days prior to
such allotment or allocation, publish such formula in the Federal
Register for comments along with the rationale for the formula and the
proposed amounts to be distributed to each State and local area. After
consideration of any comments received, the Secretary shall publish
final allotments and allocations in the Federal Register.
(e) Availability of Funds.--Funds shall be made available under
sections 128 and 133 for a local area not later than 30 days after the
date the funds are made available to the Governor involved, under
section 127 or 132 (as the case may be), or 7 days after the date the
local plan for the area is approved, whichever is later.
SEC. 183. MONITORING.
(a) In General.--The Secretary is authorized to monitor all
recipients of financial assistance under this title to determine
whether the recipients are complying with the provisions of this title,
including the regulations issued under this title.
(b) Investigations.--The Secretary may investigate any matter the
Secretary determines to be necessary to determine the compliance of the
recipients with this title, including the regulations issued under this
title. The investigations authorized by this subsection may include
examining records (including making certified copies of the records),
questioning employees, and entering any premises or onto any site in
which any part of a program or activity of such a recipient is
conducted or in which any of the records of the recipient are kept.
(c) Additional Requirement.--For the purpose of any investigation
or hearing conducted under this title by the Secretary, the provisions
of section 9 of the Federal Trade Commission Act (15 U.S.C. 49)
(relating to the attendance of witnesses and the production of
documents) apply to the Secretary, in the same manner and to the same
extent as the provisions apply to the Federal Trade Commission.
SEC. 184. FISCAL CONTROLS; SANCTIONS.
(a) Establishment of Fiscal Controls by States.--
(1) In general.--Each State shall establish such fiscal control
and fund accounting procedures as may be necessary to assure the
proper disbursal of, and accounting for, Federal funds allocated to
local areas under subtitle B. Such procedures shall ensure that all
financial transactions carried out under subtitle B are conducted
and records maintained in accordance with generally accepted
accounting principles applicable in each State.
(2) Cost principles.--
(A) In general.--Each State (including the Governor of the
State), local area (including the chief elected official for
the area), and provider receiving funds under this title shall
comply with the applicable uniform cost principles included in
the appropriate circulars of the Office of Management and
Budget for the type of entity receiving the funds.
(B) Exception.--The funds made available to a State for
administration of statewide workforce investment activities in
accordance with section 134(a)(3)(B) shall be allocable to the
overall administration of workforce investment activities, but
need not be specifically allocable to--
(i) the administration of adult employment and training
activities;
(ii) the administration of dislocated worker employment
and training activities; or
(iii) the administration of youth activities.
(3) Uniform administrative requirements.--
(A) In general.--Each State (including the Governor of the
State), local area (including the chief elected official for
the area), and provider receiving funds under this title shall
comply with the appropriate uniform administrative requirements
for grants and agreements applicable for the type of entity
receiving the funds, as promulgated in circulars or rules of
the Office of Management and Budget.
(B) Additional requirement.--Procurement transactions under
this title between local boards and units of State or local
governments shall be conducted only on a cost-reimbursable
basis.
(4) Monitoring.--Each Governor of a State shall conduct on an
annual basis onsite monitoring of each local area within the State
to ensure compliance with the uniform administrative requirements
referred to in paragraph (3).
(5) Action by governor.--If the Governor determines that a
local area is not in compliance with the uniform administrative
requirements referred to in paragraph (3), the Governor shall--
(A) require corrective action to secure prompt compliance;
and
(B) impose the sanctions provided under subsection (b) in
the event of failure to take the required corrective action.
(6) Certification.--The Governor shall, every 2 years, certify
to the Secretary that--
(A) the State has implemented the uniform administrative
requirements referred to in paragraph (3);
(B) the State has monitored local areas to ensure
compliance with the uniform administrative requirements as
required under paragraph (4); and
(C) the State has taken appropriate action to secure
compliance pursuant to paragraph (5).
(7) Action by the secretary.--If the Secretary determines that
the Governor has not fulfilled the requirements of this subsection,
the Secretary shall--
(A) require corrective action to secure prompt compliance;
and
(B) impose the sanctions provided under subsection (e) in
the event of failure of the Governor to take the required
appropriate action to secure compliance.
(b) Substantial Violation.--
(1) Action by governor.--If, as a result of financial and
compliance audits or otherwise, the Governor determines that there
is a substantial violation of a specific provision of this title,
and corrective action has not been taken, the Governor shall--
(A) issue a notice of intent to revoke approval of all or
part of the local plan affected; or
(B) impose a reorganization plan, which may include--
(i) decertifying the local board involved;
(ii) prohibiting the use of eligible providers;
(iii) selecting an alternative entity to administer the
program for the local area involved;
(iv) merging the local area into one or more other
local areas; or
(v) making other such changes as the Secretary or
Governor determines necessary to secure compliance.
(2) Appeal.--
(A) In general.--The actions taken by the Governor pursuant
to subparagraphs (A) and (B) of paragraph (1) may be appealed
to the Secretary and shall not become effective until--
(i) the time for appeal has expired; or
(ii) the Secretary has issued a decision.
(B) Additional requirement.--The Secretary shall make a
final decision under subparagraph (A) not later than 45 days
after the receipt of the appeal.
(3) Action by the secretary.--If the Governor fails to promptly
take the actions required under paragraph (1), the Secretary shall
take such actions.
(c) Repayment of Certain Amounts to the United States.--
(1) In general.--Every recipient of funds under this title
shall repay to the United States amounts found not to have been
expended in accordance with this title.
(2) Offset of repayment.--If the Secretary determines that a
State has expended funds made available under this title in a
manner contrary to the requirements of this title, the Secretary
may offset repayment of such expenditures against any other amount
to which the State is or may be entitled, except as provided under
subsection (d)(1).
(3) Repayment from deduction by state.--If the Secretary
requires a State to repay funds as a result of a determination that
a local area of the State has expended funds contrary to the
requirements of this title, the Governor of the State may use an
amount deducted under paragraph (4) to repay the funds, except as
provided under subsection (e)(1).
(4) Deduction by state.--The Governor may deduct an amount
equal to the misexpenditure described in paragraph (3) from
subsequent program year allocations to the local area from funds
reserved for the administrative costs of the local programs
involved, as appropriate.
(5) Limitations.--A deduction made by a State as described in
paragraph (4) shall not be made until such time as the Governor has
taken appropriate corrective action to ensure full compliance
within such local area with regard to appropriate expenditures of
funds under this title.
(d) Repayment of Amounts.--
(1) In general.--Each recipient of funds under this title shall
be liable to repay the amounts described in subsection (c)(1), from
funds other than funds received under this title, upon a
determination by the Secretary that the misexpenditure of funds was
due to willful disregard of the requirements of this title, gross
negligence, failure to observe accepted standards of
administration, or a pattern of misexpenditure as described in
paragraphs (2) and (3) of subsection (c). No such determination
shall be made under this subsection or subsection (c) until notice
and opportunity for a fair hearing has been given to the recipient.
(2) Factors in imposing sanctions.--In determining whether to
impose any sanction authorized by this section against a recipient
for violations by a subgrantee or contractor of such recipient
under this title (including the regulations issued under this
title), the Secretary shall first determine whether such recipient
has adequately demonstrated that the recipient has--
(A) established and adhered to an appropriate system for
the award and monitoring of grants and contracts with
subgrantees and contractors that contains acceptable standards
for ensuring accountability;
(B) entered into a written grant agreement or contract with
such subgrantee or contractor that established clear goals and
obligations in unambiguous terms;
(C) acted with due diligence to monitor the implementation
of the grant agreement or contract, including the carrying out
of the appropriate monitoring activities (including audits) at
reasonable intervals; and
(D) taken prompt and appropriate corrective action upon
becoming aware of any evidence of a violation of this title,
including regulations issued under this title, by such
subgrantee or contractor.
(3) Waiver.--If the Secretary determines that the recipient has
demonstrated substantial compliance with the requirements of
paragraph (2), the Secretary may waive the imposition of sanctions
authorized by this section upon such recipient. The Secretary is
authorized to impose any sanction consistent with the provisions of
this title and any applicable Federal or State law directly against
any subgrantee or contractor for violation of this title, including
regulations issued under this title.
(e) Immediate Termination or Suspension of Assistance in Emergency
Situations.--In emergency situations, if the Secretary determines it is
necessary to protect the integrity of the funds or ensure the proper
operation of the program or activity involved, the Secretary may
immediately terminate or suspend financial assistance, in whole or in
part, to the recipient if the recipient is given prompt notice and the
opportunity for a subsequent hearing within 30 days after such
termination or suspension. The Secretary shall not delegate any of the
functions or authority specified in this subsection, other than to an
officer whose appointment is required to be made by and with the advice
and consent of the Senate.
(f) Discrimination Against Participants.--If the Secretary
determines that any recipient under this title has discharged or in any
other manner discriminated against a participant or against any
individual in connection with the administration of the program
involved, or against any individual because such individual has filed
any complaint or instituted or caused to be instituted any proceeding
under or related to this title, or has testified or is about to testify
in any such proceeding or investigation under or related to this title,
or otherwise unlawfully denied to any individual a benefit to which
that individual is entitled under the provisions of this title or the
Secretary's regulations, the Secretary shall, within 30 days, take such
action or order such corrective measures, as necessary, with respect to
the recipient or the aggrieved individual, or both.
(g) Remedies.--The remedies described in this section shall not be
construed to be the exclusive remedies available for violations
described in this section.
SEC. 185. REPORTS; RECORDKEEPING; INVESTIGATIONS.
(a) Reports.--
(1) In general.--Recipients of funds under this title shall
keep records that are sufficient to permit the preparation of
reports required by this title and to permit the tracing of funds
to a level of expenditure adequate to ensure that the funds have
not been spent unlawfully.
(2) Submission to the secretary.--Every such recipient shall
maintain such records and submit such reports, in such form and
containing such information, as the Secretary may require regarding
the performance of programs and activities carried out under this
title. Such records and reports shall be submitted to the Secretary
but shall not be required to be submitted more than once each
quarter unless specifically requested by Congress or a committee of
Congress, in which case an estimate may be provided.
(3) Maintenance of standardized records.--In order to allow for
the preparation of the reports required under subsection (c), such
recipients shall maintain standardized records for all individual
participants and provide to the Secretary a sufficient number of
such records to provide for an adequate analysis of the records.
(4) Availability to the public.--
(A) In general.--Except as provided in subparagraph (B),
records maintained by such recipients pursuant to this
subsection shall be made available to the public upon request.
(B) Exception.--Subparagraph (A) shall not apply to--
(i) information, the disclosure of which would
constitute a clearly unwarranted invasion of personal
privacy; and
(ii) trade secrets, or commercial or financial
information, that is obtained from a person and privileged
or confidential.
(C) Fees to recover costs.--Such recipients may charge fees
sufficient to recover costs applicable to the processing of
requests for records under subparagraph (A).
(b) Investigations of Use of Funds.--
(1) In general.--
(A) Secretary.--In order to evaluate compliance with the
provisions of this title, the Secretary shall conduct, in
several States, in each fiscal year, investigations of the use
of funds received by recipients under this title.
(B) Comptroller general of the united states.--In order to
ensure compliance with the provisions of this title, the
Comptroller General of the United States may conduct
investigations of the use of funds received under this title by
any recipient.
(2) Prohibition.--In conducting any investigation under this
title, the Secretary or the Comptroller General of the United
States may not request the compilation of any information that the
recipient is not otherwise required to compile and that is not
readily available to such recipient.
(3) Audits.--
(A) In general.--In carrying out any audit under this title
(other than any initial audit survey or any audit investigating
possible criminal or fraudulent conduct), either directly or
through grant or contract, the Secretary, the Inspector General
of the Department of Labor, or the Comptroller General of the
United States shall furnish to the State, recipient, or other
entity to be audited, advance notification of the overall
objectives and purposes of the audit, and any extensive
recordkeeping or data requirements to be met, not later than 14
days (or as soon as practicable), prior to the commencement of
the audit.
(B) Notification requirement.--If the scope, objectives, or
purposes of the audit change substantially during the course of
the audit, the entity being audited shall be notified of the
change as soon as practicable.
(C) Additional requirement.--The reports on the results of
such audits shall cite the law, regulation, policy, or other
criteria applicable to any finding contained in the reports.
(D) Rule of construction.--Nothing contained in this title
shall be construed so as to be inconsistent with the Inspector
General Act of 1978 (5 U.S.C. App.) or government auditing
standards issued by the Comptroller General of the United
States.
(c) Accessibility of Reports.--Each State, each local board, and
each recipient (other than a subrecipient, subgrantee, or contractor of
a recipient) receiving funds under this title--
(1) shall make readily accessible such reports concerning its
operations and expenditures as shall be prescribed by the
Secretary;
(2) shall prescribe and maintain comparable management
information systems, in accordance with guidelines that shall be
prescribed by the Secretary, designed to facilitate the uniform
compilation, cross tabulation, and analysis of programmatic,
participant, and financial data, on statewide, local area, and
other appropriate bases, necessary for reporting, monitoring, and
evaluating purposes, including data necessary to comply with
section 188; and
(3) shall monitor the performance of providers in complying
with the terms of grants, contracts, or other agreements made
pursuant to this title.
(d) Information To Be Included in Reports.--
(1) In general.--The reports required in subsection (c) shall
include information regarding programs and activities carried out
under this title pertaining to--
(A) the relevant demographic characteristics (including
race, ethnicity, sex, and age) and other related information
regarding participants;
(B) the programs and activities in which participants are
enrolled, and the length of time that participants are engaged
in such programs and activities;
(C) outcomes of the programs and activities for
participants, including the occupations of participants, and
placement for participants in nontraditional employment;
(D) specified costs of the programs and activities; and
(E) information necessary to prepare reports to comply with
section 188.
(2) Additional requirement.--The Secretary shall ensure that
all elements of the information required for the reports described
in paragraph (1) are defined and reported uniformly.
(e) Quarterly Financial Reports.--
(1) In general.--Each local board in the State shall submit
quarterly financial reports to the Governor with respect to
programs and activities carried out under this title. Such reports
shall include information identifying all program and activity
costs by cost category in accordance with generally accepted
accounting principles and by year of the appropriation involved.
(2) Additional requirement.--Each State shall submit to the
Secretary, on a quarterly basis, a summary of the reports submitted
to the Governor pursuant to paragraph (1).
(f) Maintenance of Additional Records.--Each State and local board
shall maintain records with respect to programs and activities carried
out under this title that identify--
(1) any income or profits earned, including such income or
profits earned by subrecipients; and
(2) any costs incurred (such as stand-in costs) that are
otherwise allowable except for funding limitations.
(g) Cost Categories.--In requiring entities to maintain records of
costs by category under this title, the Secretary shall require only
that the costs be categorized as administrative or programmatic costs.
SEC. 186. ADMINISTRATIVE ADJUDICATION.
(a) In General.--Whenever any applicant for financial assistance
under this title is dissatisfied because the Secretary has made a
determination not to award financial assistance in whole or in part to
such applicant, the applicant may request a hearing before an
administrative law judge of the Department of Labor. A similar hearing
may also be requested by any recipient for whom a corrective action has
been required or a sanction has been imposed by the Secretary under
section 184.
(b) Appeal.--The decision of the administrative law judge shall
constitute final action by the Secretary unless, within 20 days after
receipt of the decision of the administrative law judge, a party
dissatisfied with the decision or any part of the decision has filed
exceptions with the Secretary specifically identifying the procedure,
fact, law, or policy to which exception is taken. Any exception not
specifically urged shall be deemed to have been waived. After the 20-
day period the decision of the administrative law judge shall become
the final decision of the Secretary unless the Secretary, within 30
days after such filing, has notified the parties that the case involved
has been accepted for review.
(c) Time Limit.--Any case accepted for review by the Secretary
under subsection (b) shall be decided within 180 days after such
acceptance. If the case is not decided within the 180-day period, the
decision of the administrative law judge shall become the final
decision of the Secretary at the end of the 180-day period.
(d) Additional Requirement.--The provisions of section 187 shall
apply to any final action of the Secretary under this section.
SEC. 187. JUDICIAL REVIEW.
(a) Review.--
(1) Petition.--With respect to any final order by the Secretary
under section 186 by which the Secretary awards, declines to award,
or only conditionally awards, financial assistance under his title,
or any final order of the Secretary under section 186 with respect
to a corrective action or sanction imposed under section 184, any
party to a proceeding which resulted in such final order may obtain
review of such final order in the United States Court of Appeals
having jurisdiction over the applicant or recipient of funds
involved, by filing a review petition within 30 days after the date
of issuance of such final order.
(2) Action on petition.--The clerk of the court shall transmit
a copy of the review petition to the Secretary who shall file the
record on which the final order was entered as provided in section
2112 of title 28, United States Code. The filing of a review
petition shall not stay the order of the Secretary, unless the
court orders a stay. Petitions filed under this subsection shall be
heard expeditiously, if possible within 10 days after the date of
filing of a reply to the petition.
(3) Standard and scope of review.--No objection to the order of
the Secretary shall be considered by the court unless the objection
was specifically urged, in a timely manner, before the Secretary.
The review shall be limited to questions of law and the findings of
fact of the Secretary shall be conclusive if supported by
substantial evidence.
(b) Judgment.--The court shall have jurisdiction to make and enter
a decree affirming, modifying, or setting aside the order of the
Secretary in whole or in part. The judgment of the court regarding the
order shall be final, subject to certiorari review by the Supreme Court
as provided in section 1254(1) of title 28, United States Code.
SEC. 188. NONDISCRIMINATION.
(a) In General.--
(1) Federal financial assistance.--For the purpose of applying
the prohibitions against discrimination on the basis of age under
the Age Discrimination Act of 1975 (42 U.S.C. 6101 et seq.), on the
basis of disability under section 504 of the Rehabilitation Act of
1973 (29 U.S.C. 794), on the basis of sex under title IX of the
Education Amendments of 1972 (20 U.S.C. 1681 et seq.), or on the
basis of race, color, or national origin under title VI of the
Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.), programs and
activities funded or otherwise financially assisted in whole or in
part under this Act are considered to be programs and activities
receiving Federal financial assistance.
(2) Prohibition of discrimination regarding participation,
benefits, and employment.--No individual shall be excluded from
participation in, denied the benefits of, subjected to
discrimination under, or denied employment in the administration of
or in connection with, any such program or activity because of
race, color, religion, sex (except as otherwise permitted under
title IX of the Education Amendments of 1972), national origin,
age, disability, or political affiliation or belief.
(3) Prohibition on assistance for facilities for sectarian
instruction or religious worship.--Participants shall not be
employed under this title to carry out the construction, operation,
or maintenance of any part of any facility that is used or to be
used for sectarian instruction or as a place for religious worship
(except with respect to the maintenance of a facility that is not
primarily or inherently devoted to sectarian instruction or
religious worship, in a case in which the organization operating
the facility is part of a program or activity providing services to
participants).
(4) Prohibition on discrimination on basis of participant
status.--No person may discriminate against an individual who is a
participant in a program or activity that receives funds under this
title, with respect to the terms and conditions affecting, or
rights provided to, the individual, solely because of the status of
the individual as a participant.
(5) Prohibition on discrimination against certain
noncitizens.--Participation in programs and activities or receiving
funds under this title shall be available to citizens and nationals
of the United States, lawfully admitted permanent resident aliens,
refugees, asylees, and parolees, and other immigrants authorized by
the Attorney General to work in the United States.
(b) Action of Secretary.--Whenever the Secretary finds that a State
or other recipient of funds under this title has failed to comply with
a provision of law referred to in subsection (a)(1), or with paragraph
(2), (3), (4), or (5) of subsection (a), including an applicable
regulation prescribed to carry out such provision or paragraph, the
Secretary shall notify such State or recipient and shall request that
the State or recipient comply. If within a reasonable period of time,
not to exceed 60 days, the State or recipient fails or refuses to
comply, the Secretary may--
(1) refer the matter to the Attorney General with a
recommendation that an appropriate civil action be instituted;
or
(2) take such other action as may be provided by law.
(c) Action of Attorney General.--When a matter is referred to the
Attorney General pursuant to subsection (b)(1), or whenever the
Attorney General has reason to believe that a State or other recipient
of funds under this title is engaged in a pattern or practice of
discrimination in violation of a provision of law referred to in
subsection (a)(1) or in violation of paragraph (2), (3), (4), or (5) of
subsection (a), the Attorney General may bring a civil action in any
appropriate district court of the United States for such relief as may
be appropriate, including injunctive relief.
(d) Job Corps.--For the purposes of this section, Job Corps members
shall be considered as the ultimate beneficiaries of Federal financial
assistance.
(e) Regulations.--The Secretary shall issue regulations necessary
to implement this section not later than one year after the date of the
enactment of the Workforce Investment Act of 1998. Such regulations
shall adopt standards for determining discrimination and procedures for
enforcement that are consistent with the Acts referred to in a
subsection (a)(1), as well as procedures to ensure that complaints
filed under this section and such Acts are processed in a manner that
avoids duplication of effort.
SEC. 189. ADMINISTRATIVE PROVISIONS.
(a) In General.--The Secretary may, in accordance with chapter 5 of
title 5, United States Code, prescribe rules and regulations to carry
out this title only to the extent necessary to administer and ensure
compliance with the requirements of this title. Such rules and
regulations may include provisions making adjustments authorized by
section 204 of the Intergovernmental Cooperation Act of 1968. All such
rules and regulations shall be published in the Federal Register at
least 30 days prior to their effective dates. Copies of each such rule
or regulation shall be transmitted to the appropriate committees of
Congress on the date of such publication and shall contain, with
respect to each material provision of such rule or regulation, a
citation to the particular substantive section of law that is the basis
for the provision.
(b) Acquisition of Certain Property and Services.--The Secretary is
authorized, in carrying out this title, to accept, purchase, or lease
in the name of the Department of Labor, and employ or dispose of in
furtherance of the purposes of this title, any money or property, real,
personal, or mixed, tangible or intangible, received by gift, devise,
bequest, or otherwise, and to accept voluntary and uncompensated
services notwithstanding the provisions of section 1342 of title 31,
United States Code.
(c) Authority To Enter Into Certain Agreements and To Make Certain
Expenditures.--The Secretary may make such grants, enter into such
contracts or agreements, establish such procedures, and make such
payments, in installments and in advance or by way of reimbursement, or
otherwise allocate or expend such funds under this title, as may be
necessary to carry out this title, including making expenditures for
construction, repairs, and capital improvements, and including making
necessary adjustments in payments on account of over-payments or
underpayments.
(d) Annual Report.--The Secretary shall prepare and submit to
Congress an annual report regarding the programs and activities carried
out under this title. The Secretary shall include in such report--
(1) a summary of the achievements, failures, and problems of
the programs and activities in meeting the objectives of this
title;
(2) a summary of major findings from research, evaluations,
pilot projects, and experiments conducted under this title in the
fiscal year prior to the submission of the report;
(3) recommendations for modifications in the programs and
activities based on analysis of such findings; and
(4) such other recommendations for legislative or
administrative action as the Secretary determines to be
appropriate.
(e) Utilization of Services and Facilities.--The Secretary is
authorized, in carrying out this title, under the same procedures as
are applicable under subsection (c) or to the extent permitted by law
other than this title, to accept and use the services and facilities of
departments, agencies, and establishments of the United States. The
Secretary is also authorized, in carrying out this title, to accept and
use the services and facilities of the agencies of any State or
political subdivision of a State, with the consent of the State or
political subdivision.
(f) Obligational Authority.--Notwithstanding any other provision of
this title, the Secretary shall have no authority to enter into
contracts, grant agreements, or other financial assistance agreements
under this title except to such extent and in such amounts as are
provided in advance in appropriations Acts.
(g) Program Year.--
(1) In general.--
(A) Program year.--Except as provided in subparagraph (B),
appropriations for any fiscal year for programs and activities
carried out under this title shall be available for obligation
only on the basis of a program year. The program year shall
begin on July 1 in the fiscal year for which the appropriation
is made.
(B) Youth activities.--The Secretary may make available for
obligation, beginning April 1 of any fiscal year, funds
appropriated for such fiscal year to carry out youth activities
under subtitle B.
(2) Availability.--Funds obligated for any program year for a
program or activity carried out under this title may be expended by
each State receiving such funds during that program year and the 2
succeeding program years. Funds obligated for any program year for
a program or activity carried out under section 171 or 172 shall
remain available until expended. Funds received by local areas from
States under this title during a program year may be expended
during that program year and the succeeding program year. No amount
of the funds described in this paragraph shall be deobligated on
account of a rate of expenditure that is consistent with a State
plan, an operating plan described in section 151, or a plan, grant
agreement, contract, application, or other agreement described in
subtitle D, as appropriate.
(h) Enforcement of Military Selective Service Act.--The Secretary
shall ensure that each individual participating in any program or
activity established under this title, or receiving any assistance or
benefit under this title, has not violated section 3 of the Military
Selective Service Act (50 U.S.C. App. 453) by not presenting and
submitting to registration as required pursuant to such section. The
Director of the Selective Service System shall cooperate with the
Secretary to enable the Secretary to carry out this subsection.
(i) Waivers and Special Rules.--
(1) Existing waivers.--With respect to a State that has been
granted a waiver under the provisions relating to training and
employment services of the Department of Labor in title I of the
Departments of Labor, Health and Human Services, and Education, and
Related Agencies Appropriations Act, 1997 (Public Law 104-208; 110
Stat. 3009-234), the authority provided under such waiver shall
continue in effect and apply, and include a waiver of the related
provisions of subtitle B and this subtitle, for the duration of the
initial waiver.
(2) Special rule regarding designated areas.--A State that has
enacted, not later than December 31, 1997, a State law providing
for the designation of service delivery areas for the delivery of
workforce investment activities, may use such areas as local areas
under this title, notwithstanding section 116.
(3) Special rule regarding sanctions.--A State that enacts, not
later than December 31, 1997, a State law providing for the
sanctioning of such service delivery areas for failure to meet
performance measures for workforce investment activities, may use
the State law to sanction local areas for failure to meet State
performance measures under this title.
(4) General waivers of statutory or regulatory requirements.--
(A) General authority.--Notwithstanding any other provision
of law, the Secretary may waive for a State, or a local area in
a State, pursuant to a request submitted by the Governor of the
State (in consultation with appropriate local elected
officials) that meets the requirements of subparagraph (B)--
(i) any of the statutory or regulatory requirements of
subtitle B or this subtitle (except for requirements
relating to wage and labor standards, including
nondisplacement protections, worker rights, participation
and protection of workers and participants, grievance
procedures and judicial review, nondiscrimination,
allocation of funds to local areas, eligibility of
providers or participants, the establishment and functions
of local areas and local boards, and procedures for review
and approval of plans); and
(ii) any of the statutory or regulatory requirements of
sections 8 through 10 of the Wagner-Peyser Act (29 U.S.C.
49g through 49i) (excluding requirements relating to the
provision of services to unemployment insurance claimants
and veterans, and requirements relating to universal access
to basic labor exchange services without cost to jobseekers).
(B) Requests.--A Governor requesting a waiver under
subparagraph (A) shall submit a plan to the Secretary to
improve the statewide workforce investment system that--
(i) identifies the statutory or regulatory requirements
that are requested to be waived and the goals that the
State or local area in the State, as appropriate, intends
to achieve as a result of the waiver;
(ii) describes the actions that the State or local
area, as appropriate, has undertaken to remove State or
local statutory or regulatory barriers;
(iii) describes the goals of the waiver and the
expected programmatic outcomes if the request is granted;
(iv) describes the individuals impacted by the waiver; and
(v) describes the process used to monitor the progress
in implementing such a waiver, and the process by which
notice and an opportunity to comment on such request has
been provided to the local board.
(C) Conditions.--Not later than 90 days after the date of
the original submission of a request for a waiver under
subparagraph (A), the Secretary shall provide a waiver under
this paragraph if and only to the extent that--
(i) the Secretary determines that the requirements
requested to be waived impede the ability of the State or
local area, as appropriate, to implement the plan described
in subparagraph (B); and
(ii) the State has executed a memorandum of
understanding with the Secretary requiring such State to
meet, or ensure that the local area meets, agreed-upon
outcomes and to implement other appropriate measures to
ensure accountability.
SEC. 190. REFERENCE.
Effective on the date of the enactment of the Workforce Investment Act of 1998, all references in any other provision of law (other than section 665 of title 18, United States Code) to the Comprehensive Employment and Training Act, or to the Job Training Partnership Act, as the case may be, shall be deemed to refer to the ``Workforce Investment Act of 1998.''.
SEC. 191. STATE LEGISLATIVE AUTHORITY.
(a) Authority of State Legislature.--Nothing in this title shall be
interpreted to preclude the enactment of State legislation providing
for the implementation, consistent with the provisions of this title,
of the activities assisted under this title. Any funds received by a
State under this title shall be subject to appropriation by the State
legislature, consistent with the terms and conditions required under
this title.
(b) Interstate Compacts and Cooperative Agreements.--In the event
that compliance with provisions of this title would be enhanced by
compacts and cooperative agreements between States, the consent of
Congress is given to States to enter into such compacts and agreements
to facilitate such compliance, subject to the approval of the
Secretary.
SEC. 192. WORKFORCE FLEXIBILITY PLANS.
(a) Plans.--A State may submit to the Secretary, and the Secretary
may approve, a workforce flexibility plan under which the State is
authorized to waive, in accordance with the plan--
(1) any of the statutory or regulatory requirements applicable
under this title to local areas, pursuant to applications for such
waivers from the local areas, except for requirements relating to
the basic purposes of this title, wage and labor standards,
grievance procedures and judicial review, nondiscrimination,
eligibility of participants, allocation of funds to local areas,
establishment and functions of local areas and local boards, review
and approval of local plans, and worker rights, participation, and
protection;
(2) any of the statutory or regulatory requirements applicable
under sections 8 through 10 of the Wagner-Peyser Act (29 U.S.C. 49g
through 49i), to the State, except for requirements relating to the
provision of services to unemployment insurance claimants and
veterans, and to universal access to basic labor exchange services
without cost to jobseekers; and
(3) any of the statutory or regulatory requirements applicable
under the Older Americans Act of 1965 (42 U.S.C. 3001 et seq.), to
State agencies on aging with respect to activities carried out
using funds allotted under section 506(a)(3) of such Act (42 U.S.C.
3056d(a)(3)), except for requirements relating to the basic
purposes of such Act, wage and labor standards, eligibility of
participants in the activities, and standards for agreements.
(b) Content of Plans.--A workforce flexibility plan implemented by
a State under subsection (a) shall include descriptions of--
(1)(A) the process by which local areas in the State may submit
and obtain approval by the State of applications for waivers of
requirements applicable under this title; and
(B) the requirements described in subparagraph (A) that are
likely to be waived by the State under the plan;
(2) the requirements applicable under sections 8 through 10 of
the Wagner-Peyser Act that are proposed to be waived, if any;
(3) the requirements applicable under the Older Americans Act
of 1965 that are proposed to be waived, if any;
(4) the outcomes to be achieved by the waivers described in
paragraphs (1) through (3); and
(5) other measures to be taken to ensure appropriate
accountability for Federal funds in connection with the waivers.
(c) Periods.--The Secretary may approve a workforce flexibility
plan for a period of not more than 5 years.
(d) Opportunity for Public Comments.--Prior to submitting a
workforce flexibility plan to the Secretary for approval, the State
shall provide to all interested parties and to the general public
adequate notice and a reasonable opportunity for comment on the waiver
requests proposed to be implemented pursuant to such plan.
SEC. 193. USE OF CERTAIN REAL PROPERTY.
(a) In General.--Notwithstanding any other provision of law, the
Governor may authorize a public agency to make available, for the use
of a one-stop service delivery system within the State which is carried
out by a consortium of entities that includes the public agency, real
property in which, as of the date of the enactment of the Workforce
Investment Act of 1998, the Federal Government has acquired equity
through the use of funds provided under title III of the Social
Security Act (42 U.S.C. 501 et seq.), section 903(c) of such Act (42
U.S.C. 1103(c)), or the Wagner-Peyser Act (29 U.S.C. 49 et seq.).
(b) Use of Funds.--Subsequent to the commencement of the use of the
property described in subsection (a) for the functions of a one-stop
service delivery system, funds provided under the provisions of law
described in subsection (a) may only be used to acquire further equity
in such property, or to pay operating and maintenance expenses relating
to such property in proportion to the extent of the use of such
property attributable to the activities authorized under such
provisions of law.
SEC. 194. CONTINUATION OF STATE ACTIVITIES AND POLICIES.
(a) In General.--Notwithstanding any other provision of this title,
the Secretary may not deny approval of a State plan for a covered
State, or an application of a covered State for financial assistance,
under this title or find a covered State (including a State board or
Governor), or a local area (including a local board or chief elected
official) in a covered State, in violation of a provision of this
title, on the basis that--
(1)(A) the State proposes to allocate or disburse, allocates,
or disburses, within the State, funds made available to the State
under section 127 or 132 in accordance with the allocation formula
for the type of activities involved, or in accordance with a
disbursal procedure or process, used by the State under prior
consistent State laws; or
(B) a local board in the State proposes to disburse, or
disburses, within the local area, funds made available to a State
under section 127 or 132 in accordance with a disbursal procedure
or process used by a private industry council under prior
consistent State law;
(2) the State proposes to carry out or carries out a State
procedure through which local areas use, as fiscal agents for funds
made available to the State under section 127 or 132 and allocated
within the State, fiscal agents selected in accordance with a
process established under prior consistent State laws;
(3) the State proposes to carry out or carries out a State
procedure through which the local board in the State (or the local
boards, the chief elected officials in the State, and the Governor)
designate or select the one-stop partners and one-stop operators of
the statewide system in the State under prior consistent State
laws, in lieu of making the designation, or certification described
in section 121 (regardless of the date the one-stop delivery
systems involved have been established);
(4) the State proposes to carry out or carries out a State
procedure through which the persons responsible for selecting
eligible providers for purposes of subtitle B are permitted to
determine that a provider shall not be selected to provide both
intake services under section 134(d)(2) and training services under
section 134(d)(4), under prior consistent State laws;
(5) the State proposes to designate or designates a State
board, or proposes to assign or assigns functions and roles of the
State board (including determining the time periods for development
and submission of a State plan required under section 112), for
purposes of subtitle B in accordance with prior consistent State
laws; or
(6) a local board in the State proposes to use or carry out,
uses, or carries out a local plan (including assigning functions
and roles of the local board) for purposes of subtitle B in
accordance with the authorities and requirements applicable to
local plans and private industry councils under prior consistent
State laws.
(b) Definition.--In this section:
(1) Covered state.--The term ``covered State'' means a State
that enacted State laws described in paragraph (2).
(2) Prior consistent state laws.--The term ``prior consistent
State laws'' means State laws, not inconsistent with the Job Training
Partnership Act or any other applicable Federal law, that took effect
on September 1, 1993, September 1, 1995, and September 1, 1997.
SEC. 195. GENERAL PROGRAM REQUIREMENTS.
Except as otherwise provided in this title, the following
conditions are applicable to all programs under this title:
(1) Each program under this title shall provide employment and
training opportunities to those who can benefit from, and who are
most in need of, such opportunities. In addition, efforts shall be
made to develop programs which contribute to occupational
development, upward mobility, development of new careers, and
opportunities for nontraditional employment.
(2) Funds provided under this title shall only be used for
activities that are in addition to those that would otherwise be
available in the local area in the absence of such funds.
(3)(A) Any local area may enter into an agreement with another
local area (including a local area that is a city or county within
the same labor market) to pay or share the cost of educating,
training, or placing individuals participating in programs assisted
under this title, including the provision of supportive services.
(B) Such agreement shall be approved by each local board
providing guidance to the local area and shall be described in the
local plan under section 118.
(4) On-the-job training contracts under this title shall not be
entered into with employers who have received payments under
previous contracts and have exhibited a pattern of failing to
provide on-the-job training participants with continued long-term
employment as regular employees with wages and employment benefits
(including health benefits) and working conditions at the same
level and to the same extent as other employees working a similar
length of time and doing the same type of work.
(5) No person or organization may charge an individual a fee
for the placement or referral of the individual in or to a
workforce investment activity under this title.
(6) The Secretary shall not provide financial assistance for
any program under this title that involves political activities.
(7)(A) Income under any program administered by a public or
private nonprofit entity may be retained by such entity only if
such income is used to continue to carry out the program.
(B) Income subject to the requirements of subparagraph (A)
shall include--
(i) receipts from goods or services (including conferences)
provided as a result of activities funded under this title;
(ii) funds provided to a service provider under this title
that are in excess of the costs associated with the services
provided; and
(iii) interest income earned on funds received under this
title.
(C) For purposes of this paragraph, each entity receiving
financial assistance under this title shall maintain records
sufficient to determine the amount of such income received and the
purposes for which such income is expended.
(8)(A) The Secretary shall notify the Governor and the
appropriate local board and chief elected official of, and consult
with the Governor and such board and official concerning, any
activity to be funded by the Secretary under this title within the
corresponding State or local area.
(B) The Governor shall notify the appropriate local board and
chief elected official of, and consult with such board and official
concerning, any activity to be funded by the Governor under this
title within the corresponding local area.
(9)(A) All education programs for youth supported with funds
provided under chapter 4 of subtitle B shall be consistent with
applicable State and local educational standards.
(B) Standards and procedures with respect to awarding academic
credit and certifying educational attainment in programs conducted
under such chapter shall be consistent with the requirements of
applicable State and local law, including regulation.
(10) No funds available under this title may be used for public
service employment except as specifically authorized under this
title.
(11) The Federal requirements governing the title, use, and
disposition of real property, equipment, and supplies purchased
with funds provided under this title shall be the Federal
requirements generally applicable to Federal grants to States and
local governments.
(12) Nothing in this title shall be construed to provide an
individual with an entitlement to a service under this title.
(13) Services, facilities, or equipment funded under this title
may be used, as appropriate, on a fee-for-service basis, by
employers in a local area in order to provide employment and
training activities to incumbent workers--
(A) when such services, facilities, or equipment are not in
use for the provision of services for eligible participants
under this title;
(B) if such use for incumbent workers would not have an
adverse affect on the provision of services to eligible
participants under this title; and
(C) if the income derived from such fees is used to carry
out the programs authorized under this title.
Subtitle F--Repeals and Conforming Amendments
SEC. 199. REPEALS.
(a) General Immediate Repeals.--The following provisions are
repealed:
(1) Section 204 of the Immigration Reform and Control Act of
1986 (8 U.S.C. 1255a note).
(2) Title II of Public Law 95-250 (92 Stat. 172).
(3) The Displaced Homemakers Self-Sufficiency Assistance Act
(29 U.S.C. 2301 et seq.).
(4) Section 211 of the Appalachian Regional Development Act of
1965 (40 U.S.C. App. 211).
(5) Subtitle C of title VII of the Stewart B. McKinney Homeless
Assistance Act (42 U.S.C. 11441 et seq.), except section 738 of
such title (42 U.S.C. 11448).
(6) Subchapter I of chapter 421 of title 49, United States
Code.
(b) Subsequent Repeals.--The following provisions are repealed:
(1) Title VII of the Stewart B. McKinney Homeless Assistance
Act (42 U.S.C. 11421 et seq.), except subtitle B and section 738 of
such title (42 U.S.C. 11431 et seq. and 11448).
(2) The Job Training Partnership Act (29 U.S.C. 1501 et seq.).
(c) Effective Dates.--
(1) Immediate repeals.--The repeals made by subsection (a)
shall take effect on the date of enactment of this Act.
(2) Subsequent repeals.--
(A) Stewart B. McKinney Homeless Assistance Act.--The repeal
made by subsection (b)(1) shall take effect on July 1, 1999.
(B) Job Training Partnership Act.--The repeal made by
subsection (b)(2) shall take effect on July 1, 2000.
SEC. 199A. CONFORMING AMENDMENTS.
(a) Preparation.--After consultation with the appropriate
committees of Congress and the Director of the Office of Management and
Budget, the Secretary shall prepare recommended legislation containing
technical and conforming amendments to reflect the changes made by this
subtitle.
(b) Submission to Congress.--Not later than 6 months after the date
of enactment of this Act, the Secretary shall submit to Congress the
recommended legislation referred to under subsection (a).
(c) References.--All references in any other provision of law to a
provision of the Comprehensive Employment and Training Act, or of the
Job Training Partnership Act, as the case may be, shall be deemed to
refer to the corresponding provision of this title.
TITLE II--ADULT EDUCATION AND LITERACY
SEC. 201. SHORT TITLE.
This title may be cited as the ``Adult Education and Family Literacy Act''.
SEC. 202. PURPOSE.
It is the purpose of this title to create a partnership among the
Federal Government, States, and localities to provide, on a voluntary
basis, adult education and literacy services, in order to--
(1) assist adults to become literate and obtain the knowledge
and skills necessary for employment and self-sufficiency;
(2) assist adults who are parents to obtain the educational
skills necessary to become full partners in the educational
development of their children; and
(3) assist adults in the completion of a secondary school
education.
SEC. 203. DEFINITIONS.
In this subtitle:
(1) Adult education.--The term ``adult education'' means
services or instruction below the postsecondary level for
individuals--
(A) who have attained 16 years of age;
(B) who are not enrolled or required to be enrolled in
secondary school under State law; and
(C) who--
(i) lack sufficient mastery of basic educational skills
to enable the individuals to function effectively in
society;
(ii) do not have a secondary school diploma or its
recognized equivalent, and have not achieved an equivalent
level of education; or
(iii) are unable to speak, read, or write the English
language.
(2) Adult education and literacy activities.--The term ``adult
education and literacy activities'' means activities described in
section 231(b).
(3) Educational service agency.--The term ``educational service
agency'' means a regional public multiservice agency authorized by
State statute to develop and manage a service or program, and to
provide the service or program to a local educational agency.
(4) Eligible agency.--The term ``eligible agency'' means the
sole entity or agency in a State or an outlying area responsible
for administering or supervising policy for adult education and
literacy in the State or outlying area, respectively, consistent
with the law of the State or outlying area, respectively.
(5) Eligible provider.--The term ``eligible provider'' means--
(A) a local educational agency;
(B) a community-based organization of demonstrated
effectiveness;
(C) a volunteer literacy organization of demonstrated
effectiveness;
(D) an institution of higher education;
(E) a public or private nonprofit agency;
(F) a library;
(G) a public housing authority;
(H) a nonprofit institution that is not described in any of
subparagraphs (A) through (G) and has the ability to provide
literacy services to adults and families; and
(I) a consortium of the agencies, organizations,
institutions, libraries, or authorities described in any of
subparagraphs (A) through (H).
(6) English literacy program.--The term ``English literacy
program'' means a program of instruction designed to help
individuals of limited English proficiency achieve competence in
the English language.
(7) Family literacy services.--The term ``family literacy
services'' means services that are of sufficient intensity in terms
of hours, and of sufficient duration, to make sustainable changes
in a family, and that integrate all of the following activities:
(A) Interactive literacy activities between parents and
their children.
(B) Training for parents regarding how to be the primary
teacher for their children and full partners in the education
of their children.
(C) Parent literacy training that leads to economic self-
sufficiency.
(D) An age-appropriate education to prepare children for
success in school and life experiences.
(8) Governor.--The term ``Governor'' means the chief executive
officer of a State or outlying area.
(9) Individual with a disability.--
(A) In general.--The term ``individual with a disability'' means
an individual with any disability (as defined in section 3 of
the Americans with Disabilities Act of 1990 (42 U.S.C. 12102)).
(B) Individuals with disabilities.--The term ``individuals
with disabilities'' means more than one individual with a
disability.
(10) Individual of limited english proficiency.--The term
``individual of limited English proficiency'' means an adult or
out-of-school youth who has limited ability in speaking, reading,
writing, or understanding the English language, and--
(A) whose native language is a language other than English; or
(B) who lives in a family or community environment where a
language other than English is the dominant language.
(11) Institution of higher education.--The term ``institution
of higher education'' has the meaning given the term in section
1201 of the Higher Education Act of 1965 (20 U.S.C. 1141).
(12) Literacy.--The term ``literacy'' means an individual's
ability to read, write, and speak in English, compute, and solve
problems, at levels of proficiency necessary to function on the
job, in the family of the individual, and in society.
(13) Local educational agency.--The term ``local educational
agency'' has the meaning given the term in section 14101 of the
Elementary and Secondary Education Act of 1965 (20 U.S.C. 8801).
(14) Outlying area.--The term ``outlying area'' has the meaning
given the term in section 101.
(15) Postsecondary educational institution.--The term
``postsecondary educational institution'' means--
(A) an institution of higher education that provides not
less than a 2-year program of instruction that is acceptable
for credit toward a bachelor's degree;
(B) a tribally controlled community college; or
(C) a nonprofit educational institution offering
certificate or apprenticeship programs at the postsecondary
level.
(16) Secretary.--The term ``Secretary'' means the Secretary of
Education.
(17) State.--The term ``State'' means each of the several
States of the United States, the District of Columbia, and the
Commonwealth of Puerto Rico.
(18) Workplace literacy services.--The term ``workplace
literacy services'' means literacy services that are offered for
the purpose of improving the productivity of the workforce through
the improvement of literacy skills.
SEC. 204. HOME SCHOOLS.
Nothing in this subtitle shall be construed to affect home schools, or to compel a parent engaged in home schooling to participate in an English literacy program, family literacy services, or adult education.
SEC. 205. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to carry out this subtitle such sums as may be necessary for each of the fiscal years 1999 through 2003.
Subtitle A--Adult Education and Literacy Programs
CHAPTER 1--FEDERAL PROVISIONS
SEC. 211. RESERVATION OF FUNDS; GRANTS TO ELIGIBLE AGENCIES; ALLOTMENTS.
(a) Reservation of Funds.--From the sum appropriated under section
205 for a fiscal year, the Secretary--
(1) shall reserve 1.5 percent to carry out section 242, except
that the amount so reserved shall not exceed $8,000,000;
(2) shall reserve 1.5 percent to carry out section 243, except
that the amount so reserved shall not exceed $8,000,000; and
(3) shall make available, to the Secretary of Labor, 1.72
percent for incentive grants under section 503.
(b) Grants to Eligible Agencies.--
(1) In general.--From the sum appropriated under section 205
and not reserved under subsection (a) for a fiscal year, the
Secretary shall award a grant to each eligible agency having a
State plan approved under section 224 in an amount equal to the sum
of the initial allotment under subsection (c)(1) and the additional
allotment under subsection (c)(2) for the eligible agency for the
fiscal year, subject to subsections (f) and (g), to enable the
eligible agency to carry out the activities assisted under this
subtitle.
(2) Purpose of grants.--The Secretary may award a grant under
paragraph (1) only if the eligible entity involved agrees to expend
the grant for adult education and literacy activities in accordance
with the provisions of this subtitle.
(c) Allotments.--
(1) Initial allotments.--From the sum appropriated under
section 205 and not reserved under subsection (a) for a fiscal
year, the Secretary shall allot to each eligible agency having a
State plan approved under section 224(f)--
(A) $100,000, in the case of an eligible agency serving an
outlying area; and
(B) $250,000, in the case of any other eligible agency.
(2) Additional allotments.--From the sum appropriated under
section 205, not reserved under subsection (a), and not allotted
under paragraph (1), for a fiscal year, the Secretary shall allot
to each eligible agency that receives an initial allotment under
paragraph (1) an additional amount that bears the same relationship
to such sum as the number of qualifying adults in the State or
outlying area served by the eligible agency bears to the number of
such adults in all States and outlying areas.
(d) Qualifying Adult.--For the purpose of subsection (c)(2), the
term ``qualifying adult'' means an adult who--
(1) is at least 16 years of age, but less than 61 years of age;
(2) is beyond the age of compulsory school attendance under the
law of the State or outlying area;
(3) does not have a secondary school diploma or its recognized
equivalent; and
(4) is not enrolled in secondary school.
(e) Special Rule.--
(1) In general.--From amounts made available under subsection
(c) for the Republic of the Marshall Islands, the Federated States
of Micronesia, and the Republic of Palau, the Secretary shall award
grants to Guam, American Samoa, the Commonwealth of the Northern
Mariana Islands, the Republic of the Marshall Islands, the
Federated States of Micronesia, or the Republic of Palau to carry
out activities described in this subtitle in accordance with the
provisions of this subtitle that the Secretary determines are not
inconsistent with this subsection.
(2) Award basis.--The Secretary shall award grants pursuant to
paragraph (1) on a competitive basis and pursuant to
recommendations from the Pacific Region Educational Laboratory in
Honolulu, Hawaii.
(3) Termination of eligibility.--Notwithstanding any other
provision of law, the Republic of the Marshall Islands, the
Federated States of Micronesia, and the Republic of Palau shall not
receive any funds under this subtitle for any fiscal year that
begins after September 30, 2001.
(4) Administrative costs.--The Secretary may provide not more
than 5 percent of the funds made available for grants under this
subsection to pay the administrative costs of the Pacific Region
Educational Laboratory regarding activities assisted under this
subsection.
(f) Hold-Harmless.--
(1) In general.--Notwithstanding subsection (c)--
(A) for fiscal year 1999, no eligible agency shall receive
an allotment under this subtitle that is less than 90 percent
of the payments made to the State or outlying area of the
eligible agency for fiscal year 1998 for programs for which
funds were authorized to be appropriated under section 313 of
the Adult Education Act (as such Act was in effect on the day
before the date of the enactment of the Workforce Investment
Act of 1998); and
(B) for fiscal year 2000 and each succeeding fiscal year,
no eligible agency shall receive an allotment under this
subtitle that is less than 90 percent of the allotment the
eligible agency received for the preceding fiscal year under
this subtitle.
(2) Ratable reduction.--If for any fiscal year the amount
available for allotment under this subtitle is insufficient to
satisfy the provisions of paragraph (1), the Secretary shall
ratably reduce the payments to all eligible agencies, as necessary.
(g) Reallotment.--The portion of any eligible agency's allotment
under this subtitle for a fiscal year that the Secretary determines
will not be required for the period such allotment is available for
carrying out activities under this subtitle, shall be available for
reallotment from time to time, on such dates during such period as the
Secretary shall fix, to other eligible agencies in proportion to the
original allotments to such agencies under this subtitle for such year.
SEC. 212. PERFORMANCE ACCOUNTABILITY SYSTEM.
(a) Purpose.--The purpose of this section is to establish a
comprehensive performance accountability system, comprised of the
activities described in this section, to assess the effectiveness of
eligible agencies in achieving continuous improvement of adult
education and literacy activities funded under this subtitle, in order
to optimize the return on investment of Federal funds in adult
education and literacy activities.
(b) Eligible Agency Performance Measures.--
(1) In general.--For each eligible agency, the eligible agency
performance measures shall consist of--
(A)(i) the core indicators of performance described in
paragraph (2)(A); and
(ii) additional indicators of performance (if any)
identified by the eligible agency under paragraph (2)(B); and
(B) an eligible agency adjusted level of performance for
each indicator described in subparagraph (A).
(2) Indicators of performance.--
(A) Core indicators of performance.--The core indicators of
performance shall include the following:
(i) Demonstrated improvements in literacy skill levels
in reading, writing, and speaking the English language,
numeracy, problem solving, English language acquisition,
and other literacy skills.
(ii) Placement in, retention in, or completion of,
postsecondary education, training, unsubsidized employment
or career advancement.
(iii) Receipt of a secondary school diploma or its
recognized equivalent.
(B) Additional indicators.--An eligible agency may identify
in the State plan additional indicators for adult education and
literacy activities authorized under this subtitle.
(3) Levels of performance.--
(A) Eligible agency adjusted levels of performance for core
indicators.--
(i) In general.--For each eligible agency submitting a
State plan, there shall be established, in accordance with
this subparagraph, levels of performance for each of the
core indicators of performance described in paragraph
(2)(A) for adult education and literacy activities
authorized under this subtitle. The levels of performance
established under this subparagraph shall, at a minimum--
(I) be expressed in an objective, quantifiable, and
measurable form; and
(II) show the progress of the eligible agency
toward continuously improving in performance.
(ii) Identification in state plan.--Each eligible
agency shall identify, in the State plan submitted under
section 224, expected levels of performance for each of the
core indicators of performance for the first 3 program
years covered by the State plan.
(iii) Agreement on eligible agency adjusted levels of
performance for first 3 years.--In order to ensure an
optimal return on the investment of Federal funds in adult
education and literacy activities authorized under this
subtitle, the Secretary and each eligible agency shall
reach agreement on levels of performance for each of the
core indicators of performance, for the first 3 program
years covered by the State plan, taking into account the
levels identified in the State plan under clause (ii) and
the factors described in clause (iv). The levels agreed to
under this clause shall be considered to be the eligible
agency adjusted levels of performance for the eligible
agency for such years and shall be incorporated into the
State plan prior to the approval of such plan.
(iv) Factors.--The agreement described in clause (iii)
or (v) shall take into account--
(I) how the levels involved compare with the
eligible agency adjusted levels of performance
established for other eligible agencies, taking into
account factors including the characteristics of
participants when the participants entered the program,
and the services or instruction to be provided; and
(II) the extent to which such levels involved
promote continuous improvement in performance on the
performance measures by such eligible agency and ensure
optimal return on the investment of Federal funds.
(v) Agreement on eligible agency adjusted levels of
performance for 4th and 5th years.--Prior to the fourth
program year covered by the State plan, the Secretary and
each eligible agency shall reach agreement on levels of
performance for each of the core indicators of performance
for the fourth and fifth program years covered by the State
plan, taking into account the factors described in clause
(iv). The levels agreed to under this clause shall be
considered to be the eligible agency adjusted levels of
performance for the eligible agency for such years and
shall be incorporated into the State plan.
(vi) Revisions.--If unanticipated circumstances arise
in a State resulting in a significant change in the factors
described in clause (iv)(II), the eligible agency may
request that the eligible agency adjusted levels of
performance agreed to under clause (iii) or (v) be revised.
The Secretary, after collaboration with the representatives
described in section 136(j), shall issue objective criteria
and methods for making such revisions.
(B) Levels of performance for additional indicators.--The
eligible agency may identify, in the State plan, eligible
agency levels of performance for each of the additional
indicators described in paragraph (2)(B). Such levels shall be
considered to be eligible agency adjusted levels of performance
for purposes of this subtitle.
(c) Report.--
(1) In general.--Each eligible agency that receives a grant
under section 211(b) shall annually prepare and submit to the
Secretary a report on the progress of the eligible agency in
achieving eligible agency performance measures, including
information on the levels of performance achieved by the eligible
agency with respect to the core indicators of performance.
(2) Information dissemination.--The Secretary--
(A) shall make the information contained in such reports
available to the general public through publication and other
appropriate methods;
(B) shall disseminate State-by-State comparisons of the
information; and
(C) shall provide the appropriate committees of Congress
with copies of such reports.
CHAPTER 2--STATE PROVISIONS
SEC. 221. STATE ADMINISTRATION.
Each eligible agency shall be responsible for the State or outlying
area administration of activities under this subtitle, including--
(1) the development, submission, and implementation of the
State plan;
(2) consultation with other appropriate agencies, groups, and
individuals that are involved in, or interested in, the development
and implementation of activities assisted under this subtitle; and
(3) coordination and nonduplication with other Federal and
State education, training, corrections, public housing, and social
service programs.
SEC. 222. STATE DISTRIBUTION OF FUNDS; MATCHING REQUIREMENT.
(a) State Distribution of Funds.--Each eligible agency receiving a
grant under this subtitle for a fiscal year--
(1) shall use not less than 82.5 percent of the grant funds to
award grants and contracts under section 231 and to carry out
section 225, of which not more than 10 percent of the 82.5 percent
shall be available to carry out section 225;
(2) shall use not more than 12.5 percent of the grant funds to
carry out State leadership activities under section 223; and
(3) shall use not more than 5 percent of the grant funds, or
$65,000, whichever is greater, for the administrative expenses of
the eligible agency.
(b) Matching Requirement.--
(1) In general.--In order to receive a grant from the Secretary
under section 211(b) each eligible agency shall provide, for the
costs to be incurred by the eligible agency in carrying out the
adult education and literacy activities for which the grant is
awarded, a non-Federal contribution in an amount equal to--
(A) in the case of an eligible agency serving an outlying
area, 12 percent of the total amount of funds expended for
adult education and literacy activities in the outlying area,
except that the Secretary may decrease the amount of funds
required under this subparagraph for an eligible agency; and
(B) in the case of an eligible agency serving a State, 25
percent of the total amount of funds expended for adult
education and literacy activities in the State.
(2) Non-Federal contribution.--An eligible agency's non-Federal
contribution required under paragraph (1) may be provided in cash
or in kind, fairly evaluated, and shall include only non-Federal
funds that are used for adult education and literacy activities in
a manner that is consistent with the purpose of this subtitle.
SEC. 223. STATE LEADERSHIP ACTIVITIES.
(a) In General.--Each eligible agency shall use funds made
available under section 222(a)(2) for one or more of the following
adult education and literacy activities:
(1) The establishment or operation of professional development
programs to improve the quality of instruction provided pursuant to
local activities required under section 231(b), including
instruction incorporating phonemic awareness, systematic phonics,
fluency, and reading comprehension, and instruction provided by
volunteers or by personnel of a State or outlying area.
(2) The provision of technical assistance to eligible providers
of adult education and literacy activities.
(3) The provision of technology assistance, including staff
training, to eligible providers of adult education and literacy
activities to enable the eligible providers to improve the quality
of such activities.
(4) The support of State or regional networks of literacy
resource centers.
(5) The monitoring and evaluation of the quality of, and the
improvement in, adult education and literacy activities.
(6) Incentives for--
(A) program coordination and integration; and
(B) performance awards.
(7) Developing and disseminating curricula, including curricula
incorporating phonemic awareness, systematic phonics, fluency, and
reading comprehension.
(8) Other activities of statewide significance that promote the
purpose of this title.
(9) Coordination with existing support services, such as
transportation, child care, and other assistance designed to
increase rates of enrollment in, and successful completion of,
adult education and literacy activities, to adults enrolled in such
activities.
(10) Integration of literacy instruction and occupational skill
training, and promoting linkages with employers.
(11) Linkages with postsecondary educational institutions.
(b) Collaboration.--In carrying out this section, eligible agencies
shall collaborate where possible, and avoid duplicating efforts, in
order to maximize the impact of the activities described in subsection
(a).
(c) State-Imposed Requirements.--Whenever a State or outlying area
implements any rule or policy relating to the administration or
operation of a program authorized under this subtitle that has the
effect of imposing a requirement that is not imposed under Federal law
(including any rule or policy based on a State or outlying area
interpretation of a Federal statute, regulation, or guideline), the
State or outlying area shall identify, to eligible providers, the rule
or policy as being State- or outlying area-imposed.
SEC. 224. STATE PLAN.
(a) 5-Year Plans.--
(1) In general.--Each eligible agency desiring a grant under
this subtitle for any fiscal year shall submit to, or have on file
with, the Secretary a 5-year State plan.
(2) Comprehensive plan or application.--The eligible agency may
submit the State plan as part of a comprehensive plan or
application for Federal education assistance.
(b) Plan Contents.--In developing the State plan, and any revisions
to the State plan, the eligible agency shall include in the State plan
or revisions--
(1) an objective assessment of the needs of individuals in the
State or outlying area for adult education and literacy activities,
including individuals most in need or hardest to serve;
(2) a description of the adult education and literacy
activities that will be carried out with any funds received under
this subtitle;
(3) a description of how the eligible agency will evaluate
annually the effectiveness of the adult education and literacy
activities based on the performance measures described in section
212;
(4) a description of the performance measures described in
section 212 and how such performance measures will ensure the
improvement of adult education and literacy activities in the State
or outlying area;
(5) an assurance that the eligible agency will award not less
than one grant under this subtitle to an eligible provider who
offers flexible schedules and necessary support services (such as
child care and transportation) to enable individuals, including
individuals with disabilities, or individuals with other special
needs, to participate in adult education and literacy activities,
which eligible provider shall attempt to coordinate with support
services that are not provided under this subtitle prior to using
funds for adult education and literacy activities provided under
this subtitle for support services;
(6) an assurance that the funds received under this subtitle
will not be expended for any purpose other than for activities
under this subtitle;
(7) a description of how the eligible agency will fund local
activities in accordance with the considerations described in
section 231(e);
(8) an assurance that the eligible agency will expend the funds
under this subtitle only in a manner consistent with fiscal
requirements in section 241;
(9) a description of the process that will be used for public
participation and comment with respect to the State plan;
(10) a description of how the eligible agency will develop
program strategies for populations that include, at a minimum--
(A) low-income students;
(B) individuals with disabilities;
(C) single parents and displaced homemakers; and
(D) individuals with multiple barriers to educational
enhancement, including individuals with limited English
proficiency;
(11) a description of how the adult education and literacy
activities that will be carried out with any funds received under
this subtitle will be integrated with other adult education, career
development, and employment and training activities in the State or
outlying area served by the eligible agency; and
(12) a description of the steps the eligible agency will take
to ensure direct and equitable access, as required in section
231(c)(1).
(c) Plan Revisions.--When changes in conditions or other factors
require substantial revisions to an approved State plan, the eligible
agency shall submit the revisions to the State plan to the Secretary.
(d) Consultation.--The eligible agency shall--
(1) submit the State plan, and any revisions to the State plan,
to the Governor of the State or outlying area for review and
comment; and
(2) ensure that any comments by the Governor regarding the
State plan, and any revision to the State plan, are submitted to
the Secretary.
(e) Peer Review.--The Secretary shall establish a peer review
process to make recommendations regarding the approval of State plans.
(f) Plan Approval.--A State plan submitted to the Secretary shall
be approved by the Secretary unless the Secretary makes a written
determination, within 90 days after receiving the plan, that the plan
is inconsistent with the specific provisions of this subtitle.
SEC. 225. PROGRAMS FOR CORRECTIONS EDUCATION AND OTHER
INSTITUTIONALIZED INDIVIDUALS.
(a) Program Authorized.--From funds made available under section
222(a)(1) for a fiscal year, each eligible agency shall carry out
corrections education or education for other institutionalized
individuals.
(b) Uses of Funds.--The funds described in subsection (a) shall be
used for the cost of educational programs for criminal offenders in
correctional institutions and for other institutionalized individuals,
including academic programs for--
(1) basic education;
(2) special education programs as determined by the eligible
agency;
(3) English literacy programs; and
(4) secondary school credit programs.
(c) Priority.--Each eligible agency that is using assistance
provided under this section to carry out a program for criminal
offenders in a correctional institution shall give priority to serving
individuals who are likely to leave the correctional institution with 5
years of participation in the program.
(d) Definition of Criminal Offender.--
(1) Criminal offender.--The term ``criminal offender'' means
any individual who is charged with or convicted of any criminal
offense.
(2) Correctional institution.--The term ``correctional
institution'' means any--
(A) prison;
(B) jail;
(C) reformatory;
(D) work farm;
(E) detention center; or
(F) halfway house, community-based rehabilitation center,
or any other similar institution designed for the confinement
or rehabilitation of criminal offenders.
CHAPTER 3--LOCAL PROVISIONS
SEC. 231. GRANTS AND CONTRACTS FOR ELIGIBLE PROVIDERS.
(a) Grants and Contracts.--From grant funds made available under
section 211(b), each eligible agency shall award multiyear grants or
contracts, on a competitive basis, to eligible providers within the
State or outlying area to enable the eligible providers to develop,
implement, and improve adult education and literacy activities within
the State.
(b) Required Local Activities.--The eligible agency shall require
that each eligible provider receiving a grant or contract under
subsection (a) use the grant or contract to establish or operate one or
more programs that provide services or instruction in one or more of
the following categories:
(1) Adult education and literacy services, including workplace
literacy services.
(2) Family literacy services.
(3) English literacy programs.
(c) Direct and Equitable Access; Same Process.--Each eligible
agency receiving funds under this subtitle shall ensure that--
(1) all eligible providers have direct and equitable access to
apply for grants or contracts under this section; and
(2) the same grant or contract announcement process and
application process is used for all eligible providers in the State
or outlying area.
(d) Special Rule.--Each eligible agency awarding a grant or
contract under this section shall not use any funds made available
under this subtitle for adult education and literacy activities for the
purpose of supporting or providing programs, services, or activities
for individuals who are not individuals described in subparagraphs (A)
and (B) of section 203(1), except that such agency may use such funds
for such purpose if such programs, services, or activities are related
to family literacy services. In providing family literacy services
under this subtitle, an eligible provider shall attempt to coordinate
with programs and services that are not assisted under this subtitle
prior to using funds for adult education and literacy activities under
this subtitle for activities other than adult education activities.
(e) Considerations.--In awarding grants or contracts under this
section, the eligible agency shall consider--
(1) the degree to which the eligible provider will establish
measurable goals for participant outcomes;
(2) the past effectiveness of an eligible provider in improving
the literacy skills of adults and families, and, after the 1-year
period beginning with the adoption of an eligible agency's
performance measures under section 212, the success of an eligible
provider receiving funding under this subtitle in meeting or
exceeding such performance measures, especially with respect to
those adults with the lowest levels of literacy;
(3) the commitment of the eligible provider to serve
individuals in the community who are most in need of literacy
services, including individuals who are low-income or have minimal
literacy skills;
(4) whether or not the program--
(A) is of sufficient intensity and duration for
participants to achieve substantial learning gains; and
(B) uses instructional practices, such as phonemic
awareness, systematic phonics, fluency, and reading
comprehension that research has proven to be effective in
teaching individuals to read;
(5) whether the activities are built on a strong foundation of
research and effective educational practice;
(6) whether the activities effectively employ advances in
technology, as appropriate, including the use of computers;
(7) whether the activities provide learning in real life
contexts to ensure that an individual has the skills needed to
compete in the workplace and exercise the rights and
responsibilities of citizenship;
(8) whether the activities are staffed by well-trained
instructors, counselors, and administrators;
(9) whether the activities coordinate with other available
resources in the community, such as by establishing strong links
with elementary schools and secondary schools, postsecondary
educational institutions, one-stop centers, job training programs,
and social service agencies;
(10) whether the activities offer flexible schedules and
support services (such as child care and transportation) that are
necessary to enable individuals, including individuals with
disabilities or other special needs, to attend and complete
programs;
(11) whether the activities maintain a high-quality information
management system that has the capacity to report participant
outcomes and to monitor program performance against the eligible
agency performance measures; and
(12) whether the local communities have a demonstrated need for
additional English literacy programs.
SEC. 232. LOCAL APPLICATION.
Each eligible provider desiring a grant or contract under this
subtitle shall submit an application to the eligible agency containing
such information and assurances as the eligible agency may require,
including--
(1) a description of how funds awarded under this subtitle will
be spent; and
(2) a description of any cooperative arrangements the eligible
provider has with other agencies, institutions, or organizations
for the delivery of adult education and literacy activities.
SEC. 233. LOCAL ADMINISTRATIVE COST LIMITS.
(a) In General.--Subject to subsection (b), of the amount that is
made available under this subtitle to an eligible provider--
(1) not less than 95 percent shall be expended for carrying out
adult education and literacy activities; and
(2) the remaining amount, not to exceed 5 percent, shall be
used for planning, administration, personnel development, and
interagency coordination.
(b) Special Rule.--In cases where the cost limits described in
subsection (a) are too restrictive to allow for adequate planning,
administration, personnel development, and interagency coordination,
the eligible provider shall negotiate with the eligible agency in order
to determine an adequate level of funds to be used for noninstructional
purposes.
CHAPTER 4--GENERAL PROVISIONS
SEC. 241. ADMINISTRATIVE PROVISIONS.
(a) Supplement Not Supplant.--Funds made available for adult
education and literacy activities under this subtitle shall supplement
and not supplant other State or local public funds expended for adult
education and literacy activities.
(b) Maintenance of Effort.--
(1) In general.--
(A) Determination.--An eligible agency may receive funds
under this subtitle for any fiscal year if the Secretary finds
that the fiscal effort per student or the aggregate
expenditures of such eligible agency for adult education and
literacy activities, in the second preceding fiscal year, was
not less than 90 percent of the fiscal effort per student or
the aggregate expenditures of such eligible agency for adult
education and literacy activities, in the third preceding
fiscal year.
(B) Proportionate reduction.--Subject to paragraphs (2),
(3), and (4), for any fiscal year with respect to which the
Secretary determines under subparagraph (A) that the fiscal
effort or the aggregate expenditures of an eligible agency for
the preceding program year were less than such effort or
expenditures for the second preceding program year, the
Secretary--
(i) shall determine the percentage decreases in such
effort or in such expenditures; and
(ii) shall decrease the payment made under this
subtitle for such program year to the agency for adult
education and literacy activities by the lesser of such
percentages.
(2) Computation.--In computing the fiscal effort and aggregate
expenditures under paragraph (1), the Secretary shall exclude
capital expenditures and special one-time project costs.
(3) Decrease in federal support.--If the amount made available
for adult education and literacy activities under this subtitle for
a fiscal year is less than the amount made available for adult
education and literacy activities under this subtitle for the
preceding fiscal year, then the fiscal effort per student and the
aggregate expenditures of an eligible agency required in order to
avoid a reduction under paragraph (1)(B) shall be decreased by the
same percentage as the percentage decrease in the amount so made
available.
(4) Waiver.--The Secretary may waive the requirements of this
subsection for 1 fiscal year only, if the Secretary determines that
a waiver would be equitable due to exceptional or uncontrollable
circumstances, such as a natural disaster or an unforeseen and
precipitous decline in the financial resources of the State or
outlying area of the eligible agency. If the Secretary grants a
waiver under the preceding sentence for a fiscal year, the level of
effort required under paragraph (1) shall not be reduced in the
subsequent fiscal year because of the waiver.
SEC. 242. NATIONAL INSTITUTE FOR LITERACY.
(a) Purpose.--The purpose of this section is to establish a
National Institute for Literacy that--
(1) provides national leadership regarding literacy;
(2) coordinates literacy services and policy; and
(3) serves as a national resource for adult education and
literacy programs by--
(A) providing the best and most current information
available, including the work of the National Institute of
Child Health and Human Development in the area of phonemic
awareness, systematic phonics, fluency, and reading
comprehension, to all recipients of Federal assistance that
focuses on reading, including programs under titles I and VII
of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 6301 et seq. and 7401 et seq.), the Head Start Act
(42 U.S.C. 9831 et seq.), the Individuals with Disabilities
Education Act (20 U.S.C. 1400 et seq.), and this Act; and
(B) supporting the creation of new ways to offer services
of proven effectiveness.
(b) Establishment.--
(1) In general.--There is established the National Institute
for Literacy (in this section referred to as the ``Institute'').
The Institute shall be administered under the terms of an
interagency agreement entered into by the Secretary of Education
with the Secretary of Labor and the Secretary of Health and Human
Services (in this section referred to as the ``Interagency
Group''). The Interagency Group may include in the Institute any
research and development center, institute, or clearinghouse
established within the Department of Education, the Department of
Labor, or the Department of Health and Human Services the purpose
of which is determined by the Interagency Group to be related to
the purpose of the Institute.
(2) Offices.--The Institute shall have offices separate from
the offices of the Department of Education, the Department of
Labor, and the Department of Health and Human Services.
(3) Recommendations.--The Interagency Group shall consider the
recommendations of the National Institute for Literacy Advisory
Board (in this section referred to as the ``Board'') established
under subsection (e) in planning the goals of the Institute and in
the implementation of any programs to achieve the goals. If the
Board's recommendations are not followed, the Interagency Group
shall provide a written explanation to the Board concerning actions
the Interagency Group takes that are inconsistent with the Board's
recommendations, including the reasons for not following the
Board's recommendations with respect to the actions. The Board may
also request a meeting of the Interagency Group to discuss the
Board's recommendations.
(4) Daily operations.--The daily operations of the Institute
shall be administered by the Director of the Institute.
(c) Duties.--
(1) In general.--In order to provide leadership for the
improvement and expansion of the system for delivery of literacy
services, the Institute is authorized--
(A) to establish a national electronic data base of
information that disseminates information to the broadest
possible audience within the literacy and basic skills field,
and that includes--
(i) effective practices in the provision of literacy
and basic skills instruction, including instruction in
phonemic awareness, systematic phonics, fluency, and
reading comprehension, and the integration of literacy and
basic skills instruction with occupational skills training;
(ii) public and private literacy and basic skills
programs, and Federal, State, and local policies, affecting
the provision of literacy services at the national, State,
and local levels;
(iii) opportunities for technical assistance, meetings,
conferences, and other opportunities that lead to the
improvement of literacy and basic skills services; and
(iv) a communication network for literacy programs,
providers, social service agencies, and students;
(B) to coordinate support for the provision of literacy and
basic skills services across Federal agencies and at the State
and local levels;
(C) to coordinate the support of reliable and replicable
research and development on literacy and basic skills in
families and adults across Federal agencies, especially with
the Office of Educational Research and Improvement in the
Department of Education, and to carry out basic and applied
research and development on topics that are not being
investigated by other organizations or agencies, such as the
special literacy needs of individuals with learning
disabilities;
(D) to collect and disseminate information on methods of
advancing literacy that show great promise, including phonemic
awareness, systematic phonics, fluency, and reading
comprehension based on the work of the National Institute of
Child Health and Human Development;
(E) to provide policy and technical assistance to Federal,
State, and local entities for the improvement of policy and
programs relating to literacy;
(F) to fund a network of State or regional adult literacy
resource centers to assist State and local public and private
nonprofit efforts to improve literacy by--
(i) encouraging the coordination of literacy services;
(ii) enhancing the capacity of State and local
organizations to provide literacy services; and
(iii) serving as a link between the Institute and
providers of adult education and literacy activities for
the purpose of sharing information, data, research,
expertise, and literacy resources;
(G) to coordinate and share information with national
organizations and associations that are interested in literacy
and workforce investment activities;
(H) to advise Congress and Federal departments and agencies
regarding the development of policy with respect to literacy
and basic skills; and
(I) to undertake other activities that lead to the
improvement of the Nation's literacy delivery system and that
complement other such efforts being undertaken by public and
private agencies and organizations.
(2) Grants, contracts, and cooperative agreements.--The
Institute may award grants to, or enter into contracts or
cooperative agreements with, individuals, public or private
institutions, agencies, organizations, or consortia of such
institutions, agencies, or organizations to carry out the
activities of the Institute.
(d) Literacy Leadership.--
(1) In general.--The Institute, in consultation with the Board,
may award fellowships, with such stipends and allowances that the
Director considers necessary, to outstanding individuals pursuing
careers in adult education or literacy in the areas of instruction,
management, research, or innovation.
(2) Fellowships.--Fellowships awarded under this subsection
shall be used, under the auspices of the Institute, to engage in
research, education, training, technical assistance, or other
activities to advance the field of adult education or literacy,
including the training of volunteer literacy providers at the
national, State, or local level.
(3) Interns and volunteers.--The Institute, in consultation
with the Board, may award paid and unpaid internships to
individuals seeking to assist the Institute in carrying out its
mission. Notwithstanding section 1342 of title 31, United States
Code, the Institute may accept and use voluntary and uncompensated
services as the Institute determines necessary.
(e) National Institute for Literacy Advisory Board.--
(1) Establishment.--
(A) In general.--There shall be a National Institute for
Literacy Advisory Board (in this section referred to as the
``Board''), which shall consist of 10 individuals appointed by
the President with the advice and consent of the Senate.
(B) Composition.--The Board shall be comprised of
individuals who are not otherwise officers or employees of the
Federal Government and who are representative of entities such
as--
(i) literacy organizations and providers of literacy
services, including nonprofit providers, providers of
English literacy programs and services, social service
organizations, and eligible providers receiving assistance
under this subtitle;
(ii) businesses that have demonstrated interest in
literacy programs;
(iii) literacy students, including literacy students
with disabilities;
(iv) experts in the area of literacy research;
(v) State and local governments;
(vi) State Directors of adult education; and
(vii) representatives of employees, including
representatives of labor organizations.
(2) Duties.--The Board shall--
(A) make recommendations concerning the appointment of the
Director and staff of the Institute;
(B) provide independent advice on the operation of the
Institute; and
(C) receive reports from the Interagency Group and the
Director.
(3) Federal Advisory Committee Act.--Except as otherwise
provided, the Board established by this subsection shall be subject
to the provisions of the Federal Advisory Committee Act (5 U.S.C.
App.).
(4) Appointments.--
(A) In general.--Each member of the Board shall be
appointed for a term of 3 years, except that the initial terms
for members may be 1, 2, or 3 years in order to establish a
rotation in which one-third of the members are selected each
year. Any such member may be appointed for not more than 2
consecutive terms.
(B) Vacancies.--Any member appointed to fill a vacancy
occurring before the expiration of the term for which the
member's predecessor was appointed shall be appointed only for
the remainder of that term. A member may serve after the
expiration of that member's term until a successor has taken
office.
(5) Quorum.--A majority of the members of the Board shall
constitute a quorum but a lesser number may hold hearings. Any
recommendation of the Board may be passed only by a majority of the
Board's members present.
(6) Election of officers.--The Chairperson and Vice Chairperson
of the Board shall be elected by the members of the Board. The term
of office of the Chairperson and Vice Chairperson shall be 2 years.
(7) Meetings.--The Board shall meet at the call of the
Chairperson or a majority of the members of the Board.
(f) Gifts, Bequests, and Devises.--
(1) In general.--The Institute may accept, administer, and use
gifts or donations of services, money, or property, whether real or
personal, tangible or intangible.
(2) Rules.--The Board shall establish written rules setting
forth the criteria to be used by the Institute in determining
whether the acceptance of contributions of services, money, or
property whether real or personal, tangible or intangible, would
reflect unfavorably upon the ability of the Institute or any
employee to carry out the responsibilities of the Institute or
employee, or official duties, in a fair and objective manner, or
would compromise the integrity or the appearance of the integrity
of the Institute's programs or any official involved in those
programs.
(g) Mails.--The Board and the Institute may use the United States
mails in the same manner and under the same conditions as other
departments and agencies of the United States.
(h) Staff.--The Interagency Group, after considering
recommendations made by the Board, shall appoint and fix the pay of a
Director.
(i) Applicability of Certain Civil Service Laws.--The Director and
staff of the Institute may be appointed without regard to the
provisions of title 5, United States Code, governing appointments in
the competitive service, and may be paid without regard to the
provisions of chapter 51 and subchapter III of chapter 53 of that title
relating to classification and General Schedule pay rates, except that
an individual so appointed may not receive pay in excess of the annual
rate of basic pay payable for level IV of the Executive Schedule.
(j) Experts and Consultants.--The Institute may procure temporary
and intermittent services under section 3109(b) of title 5, United
States Code.
(k) Report.--The Institute shall submit a report biennially to the
Committee on Education and the Workforce of the House of
Representatives and the Committee on Labor and Human Resources of the
Senate. Each report submitted under this subsection shall include--
(1) a comprehensive and detailed description of the Institute's
operations, activities, financial condition, and accomplishments in
the field of literacy for the period covered by the report;
(2) a description of how plans for the operation of the
Institute for the succeeding 2 fiscal years will facilitate
achievement of the goals of the Institute and the goals of the
literacy programs within the Department of Education, the
Department of Labor, and the Department of Health and Human
Services; and
(3) any additional minority, or dissenting views submitted by
members of the Board.
(l) Funding.--Any amounts appropriated to the Secretary, the
Secretary of Labor, the Secretary of Health and Human Services, or any
other department that participates in the Institute for purposes that
the Institute is authorized to perform under this section may be
provided to the Institute for such purposes.
SEC. 243. NATIONAL LEADERSHIP ACTIVITIES.
The Secretary shall establish and carry out a program of national
leadership activities to enhance the quality of adult education and
literacy programs nationwide. Such activities may include the
following:
(1) Technical assistance, including--
(A) assistance provided to eligible providers in developing
and using performance measures for the improvement of adult
education and literacy activities, including family literacy
services;
(B) assistance related to professional development
activities, and assistance for the purposes of developing,
improving, identifying, and disseminating the most successful
methods and techniques for providing adult education and
literacy activities, including family literacy services, based
on scientific evidence where available; and
(C) assistance in distance learning and promoting and
improving the use of technology in the classroom.
(2) Funding national leadership activities that are not
described in paragraph (1), either directly or through grants,
contracts, or cooperative agreements awarded on a competitive basis
to or with postsecondary educational institutions, public or
private organizations or agencies, or consortia of such
institutions, organizations, or agencies, such as--
(A) developing, improving, and identifying the most
successful methods and techniques for addressing the education
needs of adults, including instructional practices using
phonemic awareness, systematic phonics, fluency, and reading
comprehension, based on the work of the National Institute of
Child Health and Human Development;
(B) increasing the effectiveness of, and improving the
qualify of, adult education and literacy activities, including
family literacy services;
(C) carrying out research, such as estimating the number of
adults functioning at the lowest levels of literacy
proficiency;
(D)(i) carrying out demonstration programs;
(ii) developing and replicating model and innovative
programs, such as the development of models for basic skill
certificates, identification of effective strategies for
working with adults with learning disabilities and with
individuals with limited English proficiency who are adults,
and workplace literacy programs; and
(iii) disseminating best practices information, including
information regarding promising practices resulting from
federally funded demonstration programs;
(E) providing for the conduct of an independent evaluation
and assessment of adult education and literacy activities
through studies and analyses conducted independently through
grants and contracts awarded on a competitive basis, which
evaluation and assessment shall include descriptions of--
(i) the effect of performance measures and other
measures of accountability on the delivery of adult
education and literacy activities, including family
literacy services;
(ii) the extent to which the adult education and
literacy activities, including family literacy services,
increase the literacy skills of adults (and of children, in
the case of family literacy services), lead the
participants in such activities to involvement in further
education and training, enhance the employment and earnings
of such participants, and, if applicable, lead to other
positive outcomes, such as reductions in recidivism in the
case of prison-based adult education and literacy activities;
(iii) the extent to which the provision of support
services to adults enrolled in adult education and family
literacy programs increase the rate of enrollment in, and
successful completion of, such programs; and
(iv) the extent to which eligible agencies have
distributed funds under section 231 to meet the needs of
adults through community-based organizations;
(F) supporting efforts aimed at capacity building at the
State and local levels, such as technical assistance in program
planning, assessment, evaluation, and monitoring of activities
carried out under this subtitle;
(G) collecting data, such as data regarding the improvement
of both local and State data systems, through technical assistance
and development of model performance data collection systems; and
(H) other activities designed to enhance the quality of
adult education and literacy activities nationwide.
Subtitle B--Repeals
SEC. 251. REPEALS.
(a) Repeals.--
(1) Adult Education Act.--The Adult Education Act (20 U.S.C.
1201 et seq.) is repealed.
(2) National Literacy Act of 1991.--The National Literacy Act
of 1991 (20 U.S.C. 1201 note) is repealed.
(b) Conforming Amendments.--
(1) Refugee Education Assistance Act.--Subsection (b) of
section 402 of the Refugee Education Assistance Act of 1980 (8
U.S.C. 1522 note) is repealed.
(2) Elementary and Secondary Education Act of 1965.--
(A) Section 1202 of esea.--Section 1202(c)(1) of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
6362(c)(1)) is amended by striking ``Adult Education Act'' and
inserting ``Adult Education and Family Literacy Act''.
(B) Section 1205 of ESEA.--Section 1205(8)(B) of such Act
(20 U.S.C. 6365(8)(B)) is amended by striking ``Adult Education
Act'' and inserting ``Adult Education and Family Literacy
Act''.
(C) Section 1206 of esea.--Section 1206(a)(1)(A) of such
Act (20 U.S.C. 6366(a)(1)(A)) is amended by striking ``an adult
basic education program under the Adult Education Act'' and
inserting ``adult education and literacy activities under the
Adult Education and Family Literacy Act''.
(D) Section 3113 of esea.--Section 3113(1) of such Act (20
U.S.C. 6813(1)) is amended by striking ``section 312 of the
Adult Education Act'' and inserting ``section 203 of the Adult
Education and Family Literacy Act''.
(E) Section 9161 of esea.--Section 9161(2) of such Act (20
U.S.C. 7881(2)) is amended by striking ``section 312(2) of the
Adult Education Act'' and inserting ``section 203 of the Adult
Education and Family Literacy Act''.
(3) Older Americans Act of 1965.--Section 203(b)(8) of the
Older Americans Act of 1965 (42 U.S.C. 3013(b)(8)) is amended by
striking ``Adult Education Act'' and inserting ``Adult Education
and Family Literacy Act''.
TITLE III--WORKFORCE INVESTMENT-RELATED ACTIVITIES
Subtitle A--Wagner-Peyser Act
SEC. 301. DEFINITIONS.
Section 2 of the Wagner-Peyser Act (29 U.S.C. 49a) is amended--
(1) in paragraph (1)--
(A) by striking ``or officials''; and
(B) by striking ``Job Training Partnership Act'' and
inserting ``Workforce Investment Act of 1998'';
(2) by striking paragraphs (2) and (4);
(3) by redesignating paragraph (3) as paragraph (4);
(4) by inserting after paragraph (1) the following:
``(2) the term `local workforce investment board' means a local
workforce investment board established under section 117 of the
Workforce Investment Act of 1998;
``(3) the term `one-stop delivery system' means a one-stop
delivery system described in section 134(c) of the Workforce
Investment Act of 1998;'';
and
(5) in paragraph (4) (as redesignated in paragraph (3)), by
striking the semicolon and inserting ``; and''.
SEC. 302. FUNCTIONS.
(a) In General.--Section 3 of the Wagner-Peyser Act (29 U.S.C. 49b)
is amended--
(1) in subsection (a), by striking ``United States Employment
Service'' and inserting ``Secretary''; and
(2) by adding at the end the following:
``(c) The Secretary shall--
``(1) assist in the coordination and development of a
nationwide system of public labor exchange services, provided as
part of the one-stop customer service systems of the States;
``(2) assist in the development of continuous improvement
models for such nationwide system that ensure private sector
satisfaction with the system and meet the demands of jobseekers
relating to the system; and
``(3) ensure, for individuals otherwise eligible to receive
unemployment compensation, the provision of reemployment services
and other activities in which the individuals are required to
participate to receive the compensation.''.
(b) Conforming Amendments.--Section 508(b)(1) of the Unemployment
Compensation Amendments of 1976 (42 U.S.C. 603a(b)(1)) is amended--
(1) by striking ``the third sentence of section 3(a)'' and
inserting ``section 3(b)''; and
(2) by striking ``49b(a)'' and inserting ``49b(b)''.
SEC. 303. DESIGNATION OF STATE AGENCIES.
Section 4 of the Wagner-Peyser Act (29 U.S.C. 49c) is amended--
(1) by striking ``, through its legislature,'' and inserting
``, pursuant to State statute,'';
(2) by inserting after ``the provisions of this Act and'' the
following: ``, in accordance with such State statute, the Governor
shall''; and
(3) by striking ``United States Employment Service'' and
inserting ``Secretary''.
SEC. 304. APPROPRIATIONS.
Section 5(c) of the Wagner-Peyser Act (29 U.S.C. 49d(c)) is amended by striking paragraph (3).
SEC. 305. DISPOSITION OF ALLOTTED FUNDS.
Section 7 of the Wagner-Peyser Act (29 U.S.C. 49f) is amended--
(1) in subsection (b)(2), by striking ``private industry
council'' and inserting ``local workforce investment board'';
(2) in subsection (c)(2), by striking ``any program under'' and
all that follows and inserting ``any workforce investment activity
carried out under the Workforce Investment Act of 1998.'';
(3) in subsection (d)--
(A) by striking ``United States Employment Service'' and
inserting ``Secretary''; and
(B) by striking ``Job Training Partnership Act'' and
inserting ``Workforce Investment Act of 1998''; and
(4) by adding at the end the following:
``(e) All job search, placement, recruitment, labor employment
statistics, and other labor exchange services authorized under
subsection (a) shall be provided, consistent with the other
requirements of this Act, as part of the one-stop delivery system
established by the State.''.
SEC. 306. STATE PLANS.
Section 8 of the Wagner-Peyser Act (29 U.S.C. 49g) is amended--
(1) in subsection (a) to read as follows:
``(a) Any State desiring to receive assistance under this Act shall
submit to the Secretary, as part of the State plan submitted under
section 112 of the Workforce Investment Act of 1998, detailed plans for
carrying out the provisions of this Act within such State.'';
(2) by striking subsections (b) and (c);
(3) by redesignating subsection (d) as subsection (b);
(4) by inserting after subsection (b) (as redesignated by
paragraph (3)) the following:
``(c) The part of the State plan described in subsection (a) shall
include the information described in paragraphs (8) and (14) of section
112(b) of the Workforce Investment Act of 1998.'';
(5) by redesignating subsection (e) as subsection (d); and
(6) in subsection (d) (as redesignated in paragraph (5)), by
striking ``such plans'' and inserting ``such detailed plans''.
SEC. 307. REPEAL OF FEDERAL ADVISORY COUNCIL.
Section 11 of the Wagner-Peyser Act (29 U.S.C. 49j) is amended--
(1) by striking ``11.'' and all that follows through ``(b) In''
and inserting ``11. In''; and
(2) by striking ``Director'' and inserting ``Secretary''.
SEC. 308. REGULATIONS.
Section 12 of the Wagner-Peyser Act (29 U.S.C. 49k) is amended by striking ``The Director, with the approval of the Secretary of Labor,'' and inserting ``The Secretary''.
SEC. 309. EMPLOYMENT STATISTICS.
The Wagner-Peyser Act is amended--
(1) by redesignating section 15 (29 U.S.C. 49 note) as section
16; and
(2) by inserting after section 14 (29 U.S.C. 49l-1) the
following:
``SEC. 15. EMPLOYMENT STATISTICS.
``(a) System Content.--
``(1) In general.--The Secretary, in accordance with the
provisions of this section, shall oversee the development,
maintenance, and continuous improvement of a nationwide employment
statistics system of employment statistics that includes--
``(A) statistical data from cooperative statistical survey
and projection programs and data from administrative reporting
systems that, taken together, enumerate, estimate, and project
employment opportunities and conditions at national, State, and
local levels in a timely manner, including statistics on--
``(i) employment and unemployment status of national,
State, and local populations, including self-employed,
part-time, and seasonal workers;
``(ii) industrial distribution of occupations, as well
as current and projected employment opportunities, wages,
benefits (where data is available), and skill trends by
occupation and industry, with particular attention paid to
State and local conditions;
``(iii) the incidence of, industrial and geographical
location of, and number of workers displaced by, permanent
layoffs and plant closings; and
``(iv) employment and earnings information maintained
in a longitudinal manner to be used for research and
program evaluation;
``(B) information on State and local employment
opportunities, and other appropriate statistical data related
to labor market dynamics, which--
``(i) shall be current and comprehensive;
``(ii) shall meet the needs identified through the
consultations described in subparagraphs (A) and (B) of
subsection (e)(2); and
``(iii) shall meet the needs for the information
identified in section 134(d);
``(C) technical standards (which the Secretary shall
publish annually) for data and information described in
subparagraphs (A) and (B) that, at a minimum, meet the criteria
of chapter 35 of title 44, United States Code;
``(D) procedures to ensure compatibility and additivity of
the data and information described in subparagraphs (A) and (B)
from national, State, and local levels;
``(E) procedures to support standardization and aggregation
of data from administrative reporting systems described in
subparagraph (A) of employment-related programs;
``(F) analysis of data and information described in
subparagraphs (A) and (B) for uses such as--
``(i) national, State, and local policymaking;
``(ii) implementation of Federal policies (including
allocation formulas);
``(iii) program planning and evaluation; and
``(iv) researching labor market dynamics;
``(G) wide dissemination of such data, information, and
analysis in a user-friendly manner and voluntary technical
standards for dissemination mechanisms; and
``(H) programs of--
``(i) training for effective data dissemination;
``(ii) research and demonstration; and
``(iii) programs and technical assistance.
``(2) Information to be confidential.--
``(A) In general.--No officer or employee of the Federal
Government or agent of the Federal Government may--
``(i) use any submission that is furnished for
exclusively statistical purposes under the provisions of
this section for any purpose other than the statistical
purposes of this section for which the submission is
furnished;
``(ii) make any publication or media transmittal of the
data contained in the submission described in clause (i)
that permits information concerning individual subjects to
be reasonably inferred by either direct or indirect means;
or
``(iii) permit anyone other than a sworn officer,
employee, or agent of any Federal department or agency, or
a contractor (including an employee of a contractor) of
such department or agency, to examine an individual
submission described in clause (i);
without the consent of the individual, agency, or other person
who is the subject of the submission or provides that
submission.
``(B) Immunity from legal process.--Any submission
(including any data derived from the submission) that is
collected and retained by a Federal department or agency, or an
officer, employee, agent, or contractor of such a department or
agency, for exclusively statistical purposes under this section
shall be immune from the legal process and shall not, without
the consent of the individual, agency, or other person who is
the subject of the submission or provides that submission, be
admitted as evidence or used for any purpose in any action,
suit, or other judicial or administrative proceeding.
``(C) Rule of construction.--Nothing in this section shall
be construed to provide immunity from the legal process for
such submission (including any data derived from the
submission) if the submission is in the possession of any
person, agency, or entity other than the Federal Government or
an officer, employee, agent, or contractor of the Federal
Government, or if the submission is independently collected,
retained, or produced for purposes other than the purposes of
this Act.
``(b) System Responsibilities.--
``(1) In general.--The employment statistics system described
in subsection (a) shall be planned, administered, overseen, and
evaluated through a cooperative governance structure involving the
Federal Government and States.
``(2) Duties.--The Secretary, with respect to data collection,
analysis, and dissemination of labor employment statistics for the
system, shall carry out the following duties:
``(A) Assign responsibilities within the Department of
Labor for elements of the employment statistics system
described in subsection (a) to ensure that all statistical and
administrative data collected is consistent with appropriate
Bureau of Labor Statistics standards and definitions.
``(B) Actively seek the cooperation of other Federal
agencies to establish and maintain mechanisms for ensuring
complementarity and nonduplication in the development and
operation of statistical and administrative data collection
activities.
``(C) Eliminate gaps and duplication in statistical
undertakings, with the systemization of wage surveys as an
early priority.
``(D) In collaboration with the Bureau of Labor Statistics
and States, develop and maintain the elements of the employment
statistics system described in subsection (a), including the
development of consistent procedures and definitions for use by
the States in collecting the data and information described in
subparagraphs (A) and (B) of subsection (a)(1).
``(E) Establish procedures for the system to ensure that--
``(i) such data and information are timely;
``(ii) paperwork and reporting for the system are
reduced to a minimum; and
``(iii) States and localities are fully involved in the
development and continuous improvement of the system at all
levels, including ensuring the provision, to such States
and localities, of budget information necessary for
carrying out their responsibilities under subsection (e).
``(c) Annual Plan.--The Secretary, working through the Bureau of
Labor Statistics, and in cooperation with the States, and with the
assistance of other appropriate Federal agencies, shall prepare an
annual plan which shall be the mechanism for achieving cooperative
management of the nationwide employment statistics system described in
subsection (a) and the statewide employment statistics systems that
comprise the nationwide system. The plan shall--
``(1) describe the steps the Secretary has taken in the
preceding year and will take in the following 5 years to carry out
the duties described in subsection (b)(2);
``(2) include a report on the results of an annual consumer
satisfaction review concerning the performance of the system,
including the performance of the system in addressing the needs of
Congress, States, localities, employers, jobseekers, and other
consumers;
``(3) evaluate the performance of the system and recommend
needed improvements, taking into consideration the results of the
consumer satisfaction review, with particular attention to the
improvements needed at the State and local levels;
``(4) justify the budget request for annual appropriations by
describing priorities for the fiscal year succeeding the fiscal
year in which the plan is developed and priorities for the 5
subsequent fiscal years for the system;
``(5) describe current (as of the date of the submission of the
plan) spending and spending needs to carry out activities under
this section, including the costs to States and localities of
meeting the requirements of subsection (e)(2); and
``(6) describe the involvement of States in the development of
the plan, through formal consultations conducted by the Secretary
in cooperation with representatives of the Governors of every
State, and with representatives of local workforce investment
boards, pursuant to a process established by the Secretary in
cooperation with the States.
``(d) Coordination With the States.--The Secretary, working through
the Bureau of Labor Statistics, and in cooperation with the States,
shall--
``(1) develop the annual plan described in subsection (c) and
address other employment statistics issues by holding formal
consultations, at least once each quarter (beginning with the
calendar quarter in which the Workforce Investment Act of 1998 is
enacted) on the products and administration of the nationwide
employment statistics system; and
``(2) hold the consultations with representatives from each of
the 10 Federal regions of the Department of Labor, elected
(pursuant to a process established by the Secretary) by and from
the State employment statistics directors affiliated with the State
agencies that perform the duties described in subsection (e)(2).
``(e) State Responsibilities.--
``(1) Designation of state agency.--In order to receive Federal
financial assistance under this section, the Governor of a State shall--
``(A) designate a single State agency to be responsible for
the management of the portions of the employment statistics
system described in subsection (a) that comprise a statewide
employment statistics system and for the State's participation
in the development of the annual plan; and
``(B) establish a process for the oversight of such system.
``(2) Duties.--In order to receive Federal financial assistance
under this section, the State agency shall--
``(A) consult with State and local employers, participants,
and local workforce investment boards about the labor market
relevance of the data to be collected and disseminated through
the statewide employment statistics system;
``(B) consult with State educational agencies and local
educational agencies concerning the provision of employment
statistics in order to meet the needs of secondary school and
postsecondary school students who seek such information;
``(C) collect and disseminate for the system, on behalf of
the State and localities in the State, the information and data
described in subparagraphs (A) and (B) of subsection (a)(1);
``(D) maintain and continuously improve the statewide
employment statistics system in accordance with this section;
``(E) perform contract and grant responsibilities for data
collection, analysis, and dissemination for such system;
``(F) conduct such other data collection, analysis, and
dissemination activities as will ensure an effective statewide
employment statistics system;
``(G) actively seek the participation of other State and
local agencies in data collection, analysis, and dissemination
activities in order to ensure complementary, compatibility, and
usefulness of data;
``(H) participate in the development of the annual plan
described in subsection (c); and
``(I) utilize the quarterly records described in section
136(f)(2) of the Workforce Investment Act of 1998 to assist the
State and other States in measuring State progress on State
performance measures.
``(3) Rule of construction.--Nothing in this section shall be
construed as limiting the ability of a State agency to conduct additional
data collection, analysis, and dissemination activities with State
funds or with Federal funds from sources other than this section.
``(f) Nonduplication Requirement.--None of the functions and
activities carried out pursuant to this section shall duplicate the
functions and activities carried out under the Carl D. Perkins
Vocational and Applied Technology Education Act (20 U.S.C. 2301 et seq.).
``(g) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as may be necessary
for each of the fiscal years 1999 through 2004.
``(h) Definition.--In this section, the term `local area' means the
smallest geographical area for which data can be produced with
statistical reliability.''.
SEC. 310. TECHNICAL AMENDMENTS.
Sections 3(b), 6(b)(1), and 7(d) of the Wagner-Peyser Act (29 U.S.C. 49b(b), 49e(b)(1), and 49f(d)) are amended by striking ``Secretary of Labor'' and inserting ``Secretary''.
SEC. 311. EFFECTIVE DATE.
The amendments made by this subtitle shall take effect on July 1, 1999.
Subtitle B--Linkages With Other Programs
SEC. 321. TRADE ACT OF 1974.
Section 239 of the Trade Act of 1974 (19 U.S.C. 2311) is amended by
adding at the end the following:
``(g) In order to promote the coordination of workforce investment
activities in each State with activities carried out under this
chapter, any agreement entered into under this section shall provide
that the State shall submit to the Secretary, in such form as the
Secretary may require, the description and information described in
paragraphs (8) and (14) of section 112(b) of the Workforce Investment
Act of 1998.''.
SEC. 322. VETERANS' EMPLOYMENT PROGRAMS.
Chapter 41 of title 38, United States Code, is amended by adding at the end the following:
``Sec. 4110B. Coordination and nonduplication
``In carrying out this chapter, the Secretary shall require that an appropriate administrative entity in each State enter into an agreement with the Secretary regarding the implementation of this Act that includes the description and information described in paragraphs (8) and (14) of section 112(b) of the Workforce Investment Act of 1998.''.
SEC. 323. OLDER AMERICANS ACT OF 1965.
Section 502(b)(1) of the Older Americans Act of 1965 (42 U.S.C.
3056(b)(1)) is amended--
(1) in subparagraph (O), by striking ``; and'' and inserting a
semicolon;
(2) in subparagraph (P), by striking the period and inserting
``; and''; and
(3) by adding at the end the following subparagraph:
``(Q) will provide to the Secretary the description and
information described in paragraphs (8) and (14) of section
112(b) of the Workforce Investment Act of 1998.''.
Subtitle C--Twenty-First Century Workforce Commission
SEC. 331. SHORT TITLE.
This subtitle may be cited as the ``Twenty-First Century Workforce Commission Act''.
SEC. 332. FINDINGS.
Congress finds that--
(1) information technology is one of the fastest growing areas
in the United States economy;
(2) the United States is a world leader in the information
technology industry;
(3) the continued growth and prosperity of the information
technology industry is important to the continued prosperity of the
United States economy;
(4) highly skilled employees are essential for the success of
business entities in the information technology industry and other
business entities that use information technology;
(5) employees in information technology jobs are highly paid;
(6) as of the date of enactment of this Act, these employees
are in high demand in all industries and all regions of the United
States; and
(7) through a concerted effort by business entities, the
Federal Government, the governments of States and political
subdivisions of States, and educational institutions, more
individuals will gain the skills necessary to enter into a
technology-based job market, ensuring that the United States
remains the world leader in the information technology industry.
SEC. 333. DEFINITIONS.
In this subtitle:
(1) Business entity.--The term ``business entity'' means a
firm, corporation, association, partnership, consortium, joint
venture, or other form of enterprise.
(2) Commission.--The term ``Commission'' means the Twenty-First
Century Workforce Commission established under section 334.
(3) Information technology.--The term ``information
technology'' has the meaning given that term in section 5002 of the
Information Technology Management Reform Act of 1996 (110 Stat.
679).
(4) State.--The term ``State'' means each of the several States
of the United States and the District of Columbia.
SEC. 334. ESTABLISHMENT OF TWENTY-FIRST CENTURY WORKFORCE COMMISSION.
(a) Establishment.--There is established a commission to be known
as the Twenty-First Century Workforce Commission.
(b) Membership.--
(1) Composition.--
(A) In general.--The Commission shall be composed of 15
voting members, of which--
(i) five members shall be appointed by the President;
(ii) five members shall be appointed by the Majority
Leader of the Senate; and
(iii) five members shall be appointed by the Speaker of
the House of Representatives.
(B) Governmental representatives.--Of the members appointed
under this subsection, three members shall be representatives
of the governments of States and political subdivisions of
States, one of whom shall be appointed by the President, one of
whom shall be appointed by the Majority Leader of the Senate,
and one of whom shall be appointed by the Speaker of the House
of Representatives.
(C) Educators.--Of the members appointed under this
subsection, three shall be educators who are selected from
among elementary, secondary, vocational, and postsecondary
educators--
(i) one of whom shall be appointed by the President;
(ii) one of whom shall be appointed by the Majority
Leader of the Senate; and
(iii) one of whom shall be appointed by the Speaker of
the House of Representatives.
(D) Business representatives.--
(i) In general.--Of the members appointed under this
subsection, eight shall be representatives of business
entities (at least three of which shall be individuals who
are employed by noninformation technology business
entities), two of whom shall be appointed by the President,
three of whom shall be appointed by the Majority Leader of
the Senate, and three of whom shall be appointed by the
Speaker of the House of Representatives.
(ii) Size.--Members appointed under this subsection in
accordance with clause (i) shall, to the extent
practicable, include individuals from business entities of
a size that is small or average.
(E) Labor representative.--Of the members appointed under
this subsection, one shall be a representative of a labor
organization who has been nominated by a national labor
federation and who shall be appointed by the President.
(F) Ex officio members.--The Commission shall include two
nonvoting members, of which--
(i) one member shall be an officer or employee of the
Department of Labor, who shall be appointed by the
President; and
(ii) one member shall be an officer or employee of the
Department of Education, who shall be appointed by the
President.
(2) Date.--The appointments of the members of the Commission
shall be made by the later of--
(A) October 31, 1998; or
(B) the date that is 45 days after the date of enactment of
this Act.
(c) Period of Appointment; Vacancies.--Members shall be appointed
for the life of the Commission. Any vacancy in the Commission shall not
affect its powers, but shall be filled in the same manner as the
original appointment.
(d) Initial Meeting.--No later than 30 days after the date on which
all members of the Commission have been appointed, the Commission shall
hold its first meeting.
(e) Meetings.--The Commission shall meet at the call of the
Chairperson.
(f) Quorum.--A majority of the members of the Commission shall
constitute a quorum, but a lesser number of members may hold hearings.
(g) Chairperson and Vice Chairperson.--The Commission shall select
by vote a chairperson and vice chairperson from among its voting
members.
SEC. 335. DUTIES OF THE COMMISSION.
(a) Study.--
(1) In general.--The Commission shall conduct a thorough study
of all matters relating to the information technology workforce in
the United States.
(2) Matters studied.--The matters studied by the Commission
shall include an examination of--
(A) the skills necessary to enter the information
technology workforce;
(B) ways to expand the number of skilled information
technology workers; and
(C) the relative efficacy of programs in the United States
and foreign countries to train information technology workers,
with special emphasis on programs that provide for secondary
education or postsecondary education in a program other than a
4-year baccalaureate program (including associate degree
programs and graduate degree programs).
(3) Public hearings.--As part of the study conducted under this
subsection, the Commission shall hold public hearings in each
region of the United States concerning the issues referred to in
subparagraphs (A) and (B) of paragraph (2).
(4) Existing information.--To the extent practicable, in
carrying out the study under this subsection, the Commission shall
identify and use existing information related to the issues
referred to in subparagraphs (A) and (B) of paragraph (2).
(5) Consultation with chief information officers council.--In
carrying out the study under this subsection, the Commission shall
consult with the Chief Information Officers Council established
under Executive Order No. 13011.
(b) Report.--Not later than 6 months after the first meeting of the
Commission, the Commission shall submit a report to the President and
the Congress that shall contain a detailed statement of the findings
and conclusions of the Commission resulting from the study, together
with its recommendations for such legislation and administrative
actions as the Commission considers to be appropriate.
(c) Facilitation of Exchange of Information.--In carrying out the
study under subsection (a), the Commission shall, to the extent
practicable, facilitate the exchange of information concerning the
issues that are the subject of the study among--
(1) officials of the Federal Government and the governments of
States and political subdivisions of States;
and
(2) educators from Federal, State, and local institutions of
higher education and secondary schools.
SEC. 336. POWERS OF THE COMMISSION.
(a) Hearings.--The Commission may hold such hearings, sit and act
at such times and places, take such testimony, and receive such
evidence as the Commission considers advisable to carry out the
purposes of this subtitle.
(b) Information From Federal Agencies.--The Commission may secure
directly from any Federal department or agency such information as the
Commission considers necessary to carry out the provisions of this
subtitle. Upon request of the Chairperson of the Commission, the head
of such department or agency shall furnish such information to the
Commission.
(c) Postal Services.--The Commission may use the United States
mails in the same manner and under the same conditions as other
departments and agencies of the Federal Government.
(d) Gifts.--The Commission may accept, use, and dispose of gifts or
donations of services or property.
SEC. 337. COMMISSION PERSONNEL MATTERS.
(a) Compensation of Members.--Except as provided in subsection (b),
each member of the Commission who is not an officer or employee of the
Federal Government shall serve without compensation. All members of the
Commission who are officers or employees of the United States shall
serve without compensation in addition to that received for their
services as officers or employees of the United States.
(b) Travel Expenses.--The members of the Commission shall be
allowed travel expenses, including per diem in lieu of subsistence, at
rates authorized for employees of agencies under subchapter I of
chapter 57 of title 5, United States Code, while away from their homes
or regular places of business in the performance of services for the
Commission.
(c) Staff.--
(1) In general.--The Chairperson of the Commission may, without
regard to the civil service laws and regulations, appoint and
terminate an executive director and such other additional personnel
as may be necessary to enable the Commission to perform its duties.
The employment of an executive director shall be subject to
confirmation by the Commission.
(2) Compensation.--The Chairperson of the Commission may fix
the compensation of the executive director and other personnel
without regard to the provisions of chapter 51 and subchapter III
of chapter 53 of title 5, United States Code, relating to
classification of positions and General Schedule pay rates, except
that the rate of pay for the executive director and other personnel
may not exceed the rate payable for level V of the Executive
Schedule under section 5316 of such title.
(d) Detail of Government Employees.--Any Federal Government
employee may be detailed to the Commission without reimbursement, and
such detail shall be without interruption or loss of civil service
status or privilege.
(e) Procurement of Temporary and Intermittent Services.--The
Chairperson of the Commission may procure temporary and intermittent
services under section 3109(b) of title 5, United States Code, at rates
for individuals that do not exceed the daily equivalent of the annual
rate of basic pay prescribed for level V of the Executive Schedule
under section 5316 of such title.
SEC. 338. TERMINATION OF THE COMMISSION.
The Commission shall terminate on the date that is 90 days after the date on which the Commission submits its report under section 335(b).
SEC. 339. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--There are authorized to be appropriated such sums
as may be necessary for fiscal year 1999 to the Commission to carry out
the purposes of this subtitle.
(b) Availability.--Any sums appropriated under the authorization
contained in this section shall remain available, without fiscal year
limitation, until expended.
Subtitle D--Application of Civil Rights and Labor-Management Laws to
the Smithsonian Institution
SEC. 341. APPLICATION OF CIVIL RIGHTS AND LABOR-MANAGEMENT LAWS TO THE
SMITHSONIAN INSTITUTION.
(a) Prohibition on Employment Discrimination on Basis of Race,
Color, Religion, Sex, and National Origin.--Section 717(a) of the Civil
Rights Act of 1964 (42 U.S.C. 2000e-16(a)) is amended by inserting ``in
the Smithsonian Institution,'' before ``and in the Government Printing
Office,''.
(b) Prohibition on Employment Discrimination on Basis of Age.--
Section 15(a) of the Age Discrimination in Employment Act of 1967 (29
U.S.C. 633a(a)) is amended by inserting ``in the Smithsonian
Institution,'' before ``and in the Government Printing Office,''.
(c) Prohibition on Employment Discrimination on Basis of Disability.--
Section 501 of the Rehabilitation Act of 1973 (29 U.S.C. 791) is amended--
(1) in the fourth sentence of subsection (a), in paragraph (1),
by inserting ``and the Smithsonian Institution'' after
``Government'';
(2) in the first sentence of subsection (b)--
(A) by inserting ``and the Smithsonian Institution'' after
``in the executive branch''; and
(B) by striking ``such department, agency, or
instrumentality'' and inserting ``such department, agency,
instrumentality, or Institution''; and
(3) in subsection (d), by inserting ``and the Smithsonian
Institution'' after ``instrumentality''.
(d) Application.--The amendments made by subsections (a), (b), and
(c) shall take effect on the date of enactment of this Act and shall
apply to and may be raised in any administrative or judicial claim or
action brought before such date of enactment but pending on such date,
and any administrative or judicial claim or action brought after such
date regardless of whether the claim or action arose prior to such
date, if the claim or action was brought within the applicable statute
of limitations.
(e) Labor-Management Laws.--Section 7103(a)(3) of title 5, United
States Code, is amended--
(1) by striking ``and'' after ``Library of Congress,''; and
(2) by inserting ``and the Smithsonian Institution'' after
``Government Printing Office,''.
TITLE IV--REHABILITATION ACT AMENDMENTS OF 1998
SEC. 401. SHORT TITLE.
This title may be cited as the ``Rehabilitation Act Amendments of 1998''.
SEC. 402. TITLE.
The title of the Rehabilitation Act of 1973 is amended by striking ``to establish special responsibilities'' and all that follows and inserting the following: ``to create linkage between State vocational rehabilitation programs and workforce investment activities carried out under title I of the Workforce Investment Act of 1998, to establish special responsibilities for the Secretary of Education for coordination of all activities with respect to individuals with disabilities within and across programs administered by the Federal Government, and for other purposes.''.
SEC. 403. GENERAL PROVISIONS.
The Rehabilitation Act of 1973 is amended by striking the matter preceding title I and inserting the following:
``Short Title; Table of Contents
``Sec. 1. (a) Short Title.--This Act may be cited as the
`Rehabilitation Act of 1973'.
``(b) Table of Contents.--The table of contents for this Act is as
follows:
``Sec. 1. Short title; table of contents.
``Sec. 2. Findings; purpose; policy.
``Sec. 3. Rehabilitation Services Administration.
``Sec. 4. Advance funding.
``Sec. 5. Joint funding.
``Sec. 6. Definitions.
``Sec. 7. Allotment percentage.
``Sec. 8. Nonduplication.
``Sec. 9. Application of other laws.
``Sec. 10. Administration of the Act.
``Sec. 11. Reports.
``Sec. 12. Evaluation.
``Sec. 13. Information clearinghouse.
``Sec. 14. Transfer of funds.
``Sec. 15. State administration.
``Sec. 16. Review of applications.
``Sec. 17. Carryover.
``Sec. 18. Client assistance information.
``Sec. 19. Traditionally underserved populations.
``TITLE I--VOCATIONAL REHABILITATION SERVICES
``Part A--General Provisions
``Sec. 100. Declaration of policy; authorization of appropriations.
``Sec. 101. State plans.
``Sec. 102. Eligibility and individualized plan for employment.
``Sec. 103. Vocational rehabilitation services.
``Sec. 104. Non-Federal share for establishment of program.
``Sec. 105. State Rehabilitation Council.
``Sec. 106. Evaluation standards and performance indicators.
``Sec. 107. Monitoring and review.
``Sec. 108. Expenditure of certain amounts.
``Sec. 109. Training of employers with respect to Americans with
Disabilities Act of 1990.
``Part B--Basic Vocational Rehabilitation Services
``Sec. 110. State allotments. ``Sec. 111. Payments to States. ``Sec. 112. Client assistance program.
``Part C--American Indian Vocational Rehabilitation Services
``Sec. 121. Vocational rehabilitation services grants.
``Part D--Vocational Rehabilitation Services Client Information
``Sec. 131. Data sharing.
``TITLE II--RESEARCH AND TRAINING
``Sec. 200. Declaration of purpose.
``Sec. 201. Authorization of appropriations.
``Sec. 202. National Institute on Disability and Rehabilitation
Research.
``Sec. 203. Interagency Committee.
``Sec. 204. Research and other covered activities.
``Sec. 205. Rehabilitation Research Advisory Council.
``TITLE III--PROFESSIONAL DEVELOPMENT AND SPECIAL PROJECTS AND
DEMONSTRATIONS
``Sec. 301. Declaration of purpose and competitive basis of grants and
contracts.
``Sec. 302. Training.
``Sec. 303. Demonstration and training programs.
``Sec. 304. Migrant and seasonal farmworkers.
``Sec. 305. Recreational programs.
``Sec. 306. Measuring of project outcomes and performance.
``TITLE IV--NATIONAL COUNCIL ON DISABILITY
``Sec. 400. Establishment of National Council on Disability. ``Sec. 401. Duties of National Council. ``Sec. 402. Compensation of National Council members. ``Sec. 403. Staff of National Council. ``Sec. 404. Administrative powers of National Council. ``Sec. 405. Authorization of Appropriations.
``TITLE V--RIGHTS AND ADVOCACY
``Sec. 501. Employment of individuals with disabilities. ``Sec. 502. Architectural and Transportation Barriers Compliance Board. ``Sec. 503. Employment under Federal contracts. ``Sec. 504. Nondiscrimination under Federal grants and programs. ``Sec. 505. Remedies and attorneys' fees. ``Sec. 506. Secretarial responsibilities. ``Sec. 507. Interagency Disability Coordinating Council. ``Sec. 508. Electronic and information technology regulations. ``Sec. 509. Protection and advocacy of individual rights.
``TITLE VI--EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS WITH DISABILITIES
``Sec. 601. Short title.
``Part A--Projects With Industry
``Sec. 611. Projects with industry. ``Sec. 612. Authorization of appropriations.
``Part B--Supported Employment Services for Individuals With the Most
Significant Disabilities
``Sec. 621. Purpose. ``Sec. 622. Allotments. ``Sec. 623. Availability of services. ``Sec. 624. Eligibility. ``Sec. 625. State plan. ``Sec. 626. Restriction. ``Sec. 627. Savings provision. ``Sec. 628. Authorization of appropriations.
``TITLE VII--INDEPENDENT LIVING SERVICES AND CENTERS FOR INDEPENDENT
LIVING
``Chapter 1--Individuals With Significant Disabilities
``Part A--General Provisions
``Sec. 701. Purpose. ``Sec. 702. Definitions. ``Sec. 703. Eligibility for receipt of services. ``Sec. 704. State plan. ``Sec. 705. Statewide Independent Living Council. ``Sec. 706. Responsibilities of the Commissioner.
``Part B--Independent Living Services
``Sec. 711. Allotments. ``Sec. 712. Payments to States from allotments. ``Sec. 713. Authorized uses of funds. ``Sec. 714. Authorization of appropriations.
``Part C--Centers for Independent Living
``Sec. 721. Program authorization.
``Sec. 722. Grants to centers for independent living in States in which
Federal funding exceeds State funding.
``Sec. 723. Grants to centers for independent living in States in which
State funding equals or exceeds Federal funding.
``Sec. 724. Centers operated by State agencies.
``Sec. 725. Standards and assurances for centers for independent living.
``Sec. 726. Definitions.
``Sec. 727. Authorization of appropriations.
``Chapter 2--Independent Living Services for Older Individuals Who Are
Blind
``Sec. 751. Definition. ``Sec. 752. Program of grants. ``Sec. 753. Authorization of appropriations.
``Findings; Purpose; Policy
``Sec. 2. (a) Findings.--Congress finds that--
``(1) millions of Americans have one or more physical or mental
disabilities and the number of Americans with such disabilities is
increasing;
``(2) individuals with disabilities constitute one of the most
disadvantaged groups in society;
``(3) disability is a natural part of the human experience and
in no way diminishes the right of individuals to--
``(A) live independently;
``(B) enjoy self-determination;
``(C) make choices;
``(D) contribute to society;
``(E) pursue meaningful careers; and
``(F) enjoy full inclusion and integration in the economic,
political, social, cultural, and educational mainstream of
American society;
``(4) increased employment of individuals with disabilities can
be achieved through implementation of statewide workforce
investment systems under title I of the Workforce Investment Act of
1998 that provide meaningful and effective participation for
individuals with disabilities in workforce investment activities
and activities carried out under the vocational rehabilitation
program established under title I, and through the provision of
independent living services, support services, and meaningful
opportunities for employment in integrated work settings through
the provision of reasonable accommodations;
``(5) individuals with disabilities continually encounter
various forms of discrimination in such critical areas as
employment, housing, public accommodations, education,
transportation, communication, recreation, institutionalization,
health services, voting, and public services; and
``(6) the goals of the Nation properly include the goal of
providing individuals with disabilities with the tools necessary
to--
``(A) make informed choices and decisions; and
``(B) achieve equality of opportunity, full inclusion and
integration in society, employment, independent living, and
economic and social self-sufficiency, for such individuals.
``(b) Purpose.--The purposes of this Act are--
``(1) to empower individuals with disabilities to maximize
employment, economic self-sufficiency, independence, and inclusion
and integration into society, through--
``(A) statewide workforce investment systems implemented in
accordance with title I of the Workforce Investment Act of 1998
that include, as integral components, comprehensive and
coordinated state-of-the-art programs of vocational
rehabilitation;
``(B) independent living centers and services;
``(C) research;
``(D) training;
``(E) demonstration projects; and
``(F) the guarantee of equal opportunity; and
``(2) to ensure that the Federal Government plays a leadership
role in promoting the employment of individuals with disabilities,
especially individuals with significant disabilities, and in
assisting States and providers of services in fulfilling the
aspirations of such individuals with disabilities for meaningful
and gainful employment and independent living.
``(c) Policy.--It is the policy of the United States that all
programs, projects, and activities receiving assistance under this Act
shall be carried out in a manner consistent with the principles of--
``(1) respect for individual dignity, personal responsibility,
self-determination, and pursuit of meaningful careers, based on
informed choice, of individuals with disabilities;
``(2) respect for the privacy, rights, and equal access
(including the use of accessible formats), of the individuals;
``(3) inclusion, integration, and full participation of the
individuals;
``(4) support for the involvement of an individual's
representative if an individual with a disability requests,
desires, or needs such support; and
``(5) support for individual and systemic advocacy and
community involvement.
``Rehabilitation Services Administration
``Sec. 3. (a) There is established in the Office of the Secretary a Rehabilitation Services Administration which shall be headed by a Commissioner (hereinafter in this Act referred to as the `Commissioner') appointed by the President by and with the advice and consent of the Senate. Except for titles IV and V and as otherwise specifically provided in this Act, such Administration shall be the principal agency, and the Commissioner shall be the principal officer, of such Department for carryi