[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 2516 Introduced in Senate (IS)]

103d CONGRESS
  2d Session
                                S. 2516

  To consolidate and reform Federal job training programs to create a 
world class workforce development system for the 21st century, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

            October 6 (legislative day, September 12), 1994

  Mr. Kennedy introduced the following bill; which was read twice and 
         referred to the Committee on Labor and Human Resources

_______________________________________________________________________

                                 A BILL


 
  To consolidate and reform Federal job training programs to create a 
world class workforce development system for the 21st century, 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 ``Job Training 
Consolidation and Reform Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purpose.
Sec. 3. Authorization of appropriations.
Sec. 4. Definitions.
                   TITLE I--FEDERAL RESPONSIBILITIES

Sec. 101. National Workforce Development Board.
Sec. 102. National Report Card.
Sec. 103. Mechanisms for building high quality integrated workforce 
                            development systems.
Sec. 104. Centralized waivers.
Sec. 105. Quality assurance system.
                    TITLE II--STATE RESPONSIBILITIES

Sec. 201. State Workforce Development Councils.
Sec. 202. Membership.
Sec. 203. Chairperson.
Sec. 204. Duties and responsibilities.
Sec. 205. Development of quality assurance systems and consumer 
                            reports.
Sec. 206. Administration.
Sec. 207. Establishment of unified service delivery areas.
Sec. 208. Financial and management information systems.
Sec. 209. Capacity building grants.
Sec. 210. Performance standards for unified service delivery areas.
                   TITLE III--LOCAL RESPONSIBILITIES

Sec. 301. Workforce development boards.
Sec. 302. Workforce development board policy blueprint.
Sec. 303. Report card.
Sec. 304. One-stop career centers.
Sec. 305. Progress reports.
Sec. 306. Capacity building.
Sec. 307. Incentive grants for incumbent worker training.
                        TITLE IV--CONSOLIDATION

Sec. 401. Purpose; findings; sense of the Congress.
Sec. 402. Integration of youth programs.
Sec. 403. Consolidation of workforce development programs.
Sec. 404. Integration of programs at the local level.
Sec. 405. Sunset of major workforce development programs.
          TITLE V--INTEGRATED LABOR MARKET INFORMATION SYSTEM

Sec. 501. Integrated labor market information.
Sec. 502. Responsibilities of the National Board.
Sec. 503. Responsibilities of the Secretary.
Sec. 504. Responsibilities of Governors.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds that--
            (1) increasing international competition, technological 
        advances, and structural changes in the United States economy 
        present new challenges to private firms and public policy 
        makers in creating a skilled workforce with the ability to 
        adapt to change and technological progress;
            (2) the Federal Government should work with the private 
        sector to create a high performance workforce development 
        system to encourage collaboration among private sector firms 
        and publicly funded education and training efforts to assist 
        jobseekers and workers adjust to structural economic changes;
            (3) according to the General Accounting Office, there are 
        currently 154 federally funded employment and training programs 
        (hereafter referred to in section as the ``programs'');
            (4) the programs cost more than $25,000,000,000 annually 
        and are administered by 14 different Federal departments and 
        agencies;
            (5) although it is necessary for the Federal Government to 
        consolidate or eliminate unnecessary programs, the primary goal 
        of Federal workforce development policy should be to help 
        facilitate transactions taking place between jobseekers, 
        workers, and business in local labor markets;
            (6) in order to bring more coherence to Federal workforce 
        development policy, there should be a single entity at the 
        Federal, State, or local level vested with the necessary 
        authority to strategically plan ways to transform the separate 
        training and employment programs into an integrated and 
        accountable workforce development system;
            (7) these Federal, State, and local strategic planning 
        bodies should be structured in such a way to give businesses 
        and workers a meaningful role in shaping policy and overseeing 
        the quality of workforce development programs;
            (8) while the Federal Government must maintain its 
        commitment to provide economically and educationally 
        disadvantaged individuals with skills and support services 
        necessary to succeed in the labor market, Federal workforce 
        development policy must also begin to provide incentives to 
        assist firms to help upgrade the skills of their front-line 
        workers;
            (9) the United States needs a comprehensive integrated 
        labor market information system to ensure that workforce 
        development programs are related to the demand for particular 
        skills in local labor markets, and to ensure that information 
        about the employment and earnings of the local workforce, and 
        the performance of education and training institutions, will be 
        available to citizens and decision makers;
            (10) in recent years, many States and communities have made 
        progress in developing new approaches to better integrate 
        Federal employment and training programs;
            (11) the Federal Government should take more systematic 
        measures to encourage experimentation and flexibility, and to 
        disseminate best practices in the design and implementation of 
        a comprehensive workforce development system throughout the 
        country; and
            (12) the Federal Government should address the findings of 
        this subsection through the implementation of immediate and 
        long-term improvements that result in the establishment of a 
        high quality workforce development system needed for the 
        economy of the 21st century.
    (b) Purpose.--It is the purpose of this Act to take certain 
immediate actions, and to establish a process for bringing about longer 
term improvements, that are needed to begin the transformation of 
federally funded education and job training efforts from a collection 
of fragmented programs into a coherent, integrated, accountable 
workforce development system that--
            (1) is based on the needs of jobseekers, workers, and 
        employers, rather than bureaucratic requirements;
            (2) is accessible to any jobseeker, worker, or employer;
            (3) focuses on accountability, performance, and accurate 
        information;
            (4) provides flexibility and responsibility to the States, 
        and in turn to local communities, for design and implementation 
        of workforce development systems;
            (5) requires the active involvement of firms and workers in 
        the governance, design, and implementation of such system;
            (6) is linked directly to employment and training 
        opportunities in the private sector; and
            (7) adopts best practices of quality administration and 
        management that have been successful in the private sector.

SEC. 3. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--Subject to subsection (b), there is authorized to 
be appropriated to carry out titles I, II, III, and IV--
            (1) $160,000,000 for fiscal year 1996; and
            (2) such sums as may be necessary for each of fiscal years 
        1997 through 1999.
    (b) Limitations.--
            (1) Fiscal year 1996.--In fiscal year 1996, of the funds 
        made available pursuant to subsection (a)--
                    (A) not more than 5 percent shall be used for the 
                activities of the National Board;
                    (B) not more than 10 percent shall be used for 
                incentive grants, pursuant to section 307;
                    (C) not more than 15 percent shall be used for 
                development grants, pursuant to section 103(a); and
                    (D) not less than 70 percent shall be used for 
                implementation grants, pursuant to section 103(b).
            (2) Fiscal years 1997 through 1999.--In each of fiscal 
        years 1997 through 1999, of the funds made available pursuant 
        to subsection (a)--
                    (A) not more than 5 percent shall be used for the 
                activities of the National Board;
                    (B) not more than 10 percent shall be used for 
                incentive grants, pursuant to section 307; and
                    (C) not less than 85 percent shall be used for 
                implementation grants, pursuant to section 103(b).
    (c) Integrated Labor Market Information System.--To carry out title 
V, there is authorized to be appropriated--
            (1) $90,000,000 for fiscal year 1996; and
            (2) such sums as may be necessary for each succeeding 
        fiscal year.

SEC. 4. DEFINITIONS.

    For purposes of this Act--
            (1) the term ``development grant'' means a grant provided 
        to each State under section 103(a);
            (2) the term ``implementation grant'' means a grant 
        provided under section 103(b);
            (3) the term ``leading edge State'' means a State that has 
        been awarded an implementation grant under section 103(b);
            (4) the term ``workforce development program'' means any of 
        the more than 150 federally funded job training programs 
        identified by the General Accounting Office in testimony on 
        March 3, 1994, before the Subcommittee on Employment, Housing 
        and Aviation of the Committee on Government Operations of the 
        House of Representatives, and any State-funded program that 
        provides job training assistance to individuals or assists 
        employers to identify or train workers;
            (5) the terms ``integrated workforce development system'' 
        and ``integrated system'' mean the system of employment, 
        training, and employment-related education programs, including 
        the mandatory programs described in section 404(a) and any 
        additional Federal or State programs designated by the Governor 
        of a State, comprising the consolidated system pursuant to 
        section 404(b);
            (6) the term ``National Board'' means the National 
        Workforce Development Board established under section 101(b);
            (7) the term ``Federal Blueprint'' means the National 
        Workforce Development Strategic Plan issued by the National 
        Board pursuant to section 101(c)(1);
            (8) the term ``National Report Card'' means the Nation's 
        Workforce Development Report Card prepared pursuant to section 
        102;
            (9) the term ``State Council'' means a State Workforce 
        Development Council established pursuant to section 201;
            (10) the term ``State Blueprint'' means the State Workforce 
        Development Policy Blueprint prepared pursuant to section 
        204(a);
            (11) the term ``State Report Card'' means the State 
        Workforce Development Report Card issued pursuant to section 
        204(b);
            (12) the term ``workforce development board'' means a local 
        board established pursuant to section 301;
            (13) the term ``unified service delivery area'' means the 
        common geographic service area boundaries established pursuant 
        to section 207 and overseen by a workforce development board;
            (14) the term ``one-stop career center'' means an access 
        point for intake, assessment, referral, and placement services, 
        including services provided electronically, that is part of the 
        network established pursuant to section 304;
            (15) the term ``hard-to-serve'' means an individual meeting 
        the requirements of section 203(b) of the Job Training 
        Partnership Act (29 U.S.C. 1603(b)); and
            (16) the term ``Secretary'' means the Secretary of Labor, 
        unless the context suggests otherwise.

                   TITLE I--FEDERAL RESPONSIBILITIES

SEC. 101. NATIONAL WORKFORCE DEVELOPMENT BOARD.

    (a) Findings.--Congress finds that a national workforce development 
board is necessary to--
            (1) oversee the establishment and continuous improvement of 
        the national workforce development system;
            (2) provide policy guidance to enhance strategic planning 
        among the Federal agencies responsible for administering job 
        training programs;
            (3) bring private sector expertise to the governance of the 
        national workforce development system; and
            (4) take active steps to remove the legislative and 
        regulatory barriers to service integration.
    (b) Establishment.--
            (1) In general.--There is established the National 
        Workforce Development Board (referred to in this Act as the 
        ``National Board'').
            (2) Composition.--The National Board shall be comprised of 
        9 members, of whom--
                    (A) one member shall be the Secretary of Labor;
                    (B) one member shall be the Secretary of Education;
                    (C) one member shall be the Secretary of Health and 
                Human Services;
                    (D) three members shall be representatives of 
                business (including representatives of small businesses 
                and large employers);
                    (E) two members shall be representatives of 
                organized labor; and
                    (F) one member shall be selected from 
                representatives of--
                            (i) community-based organizations;
                            (ii) State and local governments; or
                            (iii) nongovernmental organizations that 
                        have a history of successfully protecting the 
                        rights of individuals with disabilities or 
                        older persons.
            (3) Additional requirements.--The members described in 
        subparagraphs (D), (E), and (F) of paragraph (2) shall--
                    (A) in the aggregate, represent a broad cross-
                section of occupations and industries;
                    (B) to the extent feasible, be geographically 
                representative of the United States, and reflect the 
                racial, ethnic, and gender diversity of the United 
                States; and
                    (C) one member shall be a member of the National 
                Skill Standards Board established pursuant to the 
                National Skill Standards Act of 1994.
            (4) Expertise.--The National Board and the staff shall have 
        sufficient expertise to effectively carry out the duties and 
        functions of the National Board.
            (5) Business and labor advisory committees.--The National 
        Board may establish a business advisory committee and a labor 
        advisory committee which shall be comprised of members who are 
        appointed to the National Board pursuant to subparagraphs (D) 
        and (E) of paragraph (2), respectively, and members who are not 
        on the National Board, to assist the National Board to carry 
        out its duties pursuant to subsection (c).
            (6) Appointment.--The members described in subparagraphs 
        (D), (E), and (F) of paragraph (2) shall be appointed by the 
        President, by and with the advice and consent of the Senate.
            (7) Ex officio nonvoting members.--The Director of the 
        Office of Management and Budget, the Secretary of Commerce, the 
        chairpersons and ranking minority members of the Committee on 
        Labor and Human Resources of the Senate and the Committee on 
        Education and Labor of the House of Representatives shall be ex 
        officio, nonvoting members of the National Board.
            (8) Terms.--Each member of the National Board appointed 
        under subparagraph (D), (E), and (F) of paragraph (2) shall be 
        appointed for a term of 4 years, except that of the initial 
        members of the National Board appointed under such 
        subparagraphs--
                    (A) two members shall be appointed for a term of 2 
                years;
                    (B) two members shall be appointed for a term of 3 
                years; and
                    (C) two members shall be appointed for a term of 4 
                years.
            (9) Vacancies.--Any vacancy on the National Board shall not 
        affect the powers of the National Board, but shall be filled in 
        the same manner as the original appointments.
            (10) Chairpersons.--The President, by and with the advice 
        and consent of the Senate, shall select one co-chairperson of 
        the National Board from among the members of the National Board 
        appointed under paragraph (2)(D) and one co-chairperson from 
        among the members appointed pursuant to paragraph (2)(E).
            (11) Compensation and expenses.--
                    (A) Compensation.--Each member of the National 
                Board who is not a full-time employee or officer of the 
                Federal Government shall serve without compensation. 
                Each member of the National Board who is an officer or 
                employee of the Federal Government shall serve without 
                compensation in addition to that received for the 
                services of such member as an officer or employee of 
                the Federal Government.
                    (B) Expenses.--The members of the National Board 
                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 National Board.
            (12) Executive director and staff.--
                    (A) Executive director.--The co-chairpersons of the 
                National Board shall appoint an Executive Director who 
                shall be compensated at a rate determined by the 
                National Board, not to exceed the rate payable for 
                level V of the Executive Schedule under section 5316 of 
                title 5, United States Code.
                    (B) Staff.--The Executive Director may--
                            (i) appoint and compensate such additional 
                        staff as may be necessary to enable the 
                        National Board to perform its duties; and
                            (ii) fix the compensation of the staff 
                        without regard to the provisions of chapter 51 
                        and subchapter III of chapter 53 of title 5, 
                        United States Code, relating to classifications 
                        of positions and General Schedule pay rates, 
                        except that the rate of pay for the staff may 
                        not exceed the rate payable for level V of the 
                        Executive Schedule under section 5316 of such 
                        title.
            (13) Voluntary and uncompensated services.--Notwithstanding 
        section 1342 of title 31, United States Code, the National 
        Board is authorized, in carrying out this Act, to accept 
        voluntary and uncompensated services.
            (14) Agency support.--
                    (A) Use of facilities.--The National Board may use 
                the research, equipment, services, and facilities of 
                any agency or instrumentality of the United States with 
                the consent of such agency or instrumentality.
                    (B) Staff of federal agencies.--Upon the request of 
                the National Board, the head of any Federal agency may 
                detail to the National Board, on a reimbursable basis, 
                any of the personnel of such Federal agency to assist 
                the National Board in carrying out this Act. Such 
                detail shall be without interruption or loss of civil 
                service status or privilege.
            (15) Procurement of temporary and intermittent services.--
        The co-chairpersons of the National Board may procure temporary 
        and intermittent services of experts and consultants under 
        section 3109(b) of title 5, United States Code.
            (16) National commission for employment policy.--
                    (A) In general.--Part F of title IV of the Job 
                Training Partnership Act (29 U.S.C. 1771 et seq.) is 
                repealed.
                    (B) Conforming amendment.--Subsection (i) of 
                section 106 of such Act (29 U.S.C. 1516(i)) is amended 
                by striking ``(i) Functions of NCEP.--The National 
                Commission for Employment Policy'' and inserting ``(i) 
                Functions of National Workforce Development Board.--The 
                National Workforce Development Board established under 
                section 101 of the Job Training Consolidation and 
                Reform Act''.
    (c) Duties.--
            (1) National workforce development strategic plan.--
                    (A) In general.--Not later than July 1, 1995, and 
                every 2 years thereafter, the National Board shall 
                issue a National Workforce Development Strategic Plan 
                (referred to in this Act as the ``Federal Blueprint'').
                    (B) Requirements.--The Federal Blueprint shall 
                evaluate the progress being made toward streamlining, 
                consolidating, and reforming the workforce development 
                system of the United States, and toward the purposes 
                described in section 2(b). The Federal Blueprint 
                shall--
                            (i) compare the preparedness of the 
                        workforce of the United States with the 
                        workforce of other countries;
                            (ii) serve as a strategic plan to guide the 
                        integration of federally funded workforce 
                        development programs into a streamlined system;
                            (iii) assess the lessons learned from the 
                        experience of leading edge States, and States 
                        that waive certain program requirements to 
                        experiment with alternative workforce 
                        development strategies;
                            (iv) analyze how businesses are--
                                    (I) progressing in the 
                                restructuring of the workplace to 
                                provide continuous learning for their 
                                employees;
                                    (II) improving the skills and 
                                abilities of the front-line workers of 
                                such businesses; and
                                    (III) taking measures to integrate 
                                public workforce development programs 
                                into private sector training systems;
                            (v) make recommendations to Congress and 
                        the President on ways to improve linkages 
                        between federally funded business modernization 
                        programs and federally funded workforce 
                        development programs;
                            (vi) include a research agenda for the 
                        National Board to carry out its activities;
                            (vii) evaluate the labor market information 
                        of the Nation and recommend areas in need of 
                        improvement; and
                            (viii) based on the evaluation of the 
                        progress being made toward the development of 
                        an integrated, accountable, effective workforce 
                        development system, as described in the 
                        National Report Card, make recommendations to 
                        Congress and the President on ways to promote 
                        further streamlining, consolidation, and 
                        reform.
            (2) Congressional testimony.--The co-chairpersons of the 
        National Board shall, at least annually, provide testimony, 
        during a joint hearing before the Committee on Labor and Human 
        Resources of the Senate and the Committee on Education and 
        Labor of the House of Representatives on the progress being 
        made in developing a more integrated and accountable public and 
        private workforce development system in the United States.
            (3) Employer and worker training.--Not later than 180 days 
        after the date of enactment of this Act, the National Board 
        shall make recommendations to Congress and the President on 
        what measures can be taken, including changes in the tax codes, 
        to encourage employers and workers to invest in training and 
        skills upgrading, and to encourage employers to hire and train 
        hard-to-serve individuals.
            (4) Review of grant proposals.--The National Board shall 
        review the implementation grant proposals pursuant to section 
        103(b) and the incentive grant proposals submitted pursuant to 
        section 307, and make recommendations to the Secretary 
        regarding such proposals.
            (5) Coordination with the national skill standards board.--
        The National Board shall annually hold a joint meeting with the 
        National Skill Standards Board established pursuant to section 
        503 of the National Skill Standards Act to ensure that Federal 
        efforts to reform and streamline the Nation's workforce 
        development system are integrated and coordinated.
            (6) Final recommendations.--Not later than June 1, 1999, 
        the National Board shall submit recommendations in the form of 
        a joint resolution to the President and Congress, pursuant to 
        section 403(b).

SEC. 102. NATIONAL REPORT CARD.

    (a) In General.--Not later than July 1, 1996, and each July 1 
thereafter, the National Board shall prepare a report to be known as 
the Nation's Workforce Development Report Card (referred to in this Act 
as the ``National Report Card'').
    (b) Requirements.--The National Report Card shall assess the 
performance of the workforce development system of the United States, 
based on the earnings and employment gains and other nonemployment-
related outcomes of individuals assisted by the programs comprising 
such system. The National Report Card shall evaluate all workforce 
development programs that receive Federal funding, and shall--
            (1) assess the performance of each program;
            (2) assess performance based on the type of assistance 
        provided, including the categories of services identified in 
        section 105(b)(1)(C);
            (3) assess year-to-year changes in performance;
            (4) report on the extent to which hard-to-serve populations 
        are receiving services and the related outcomes in relation to 
        services received in the preceding three years;
            (5) determine the annual Federal investment in workforce 
        development in each State; and
            (6) assess the performance of the workforce development 
        system in each State.

SEC. 103. MECHANISMS FOR BUILDING HIGH QUALITY INTEGRATED WORKFORCE 
              DEVELOPMENT SYSTEMS.

    (a) State Development Grants.--
            (1) Purpose.--The purpose of this subsection is to assist 
        States and communities in strategic planning for integrated 
        workforce development systems, including the development of a 
        financial and management information system, a quality 
        assurance system, and an integrated labor market information 
        system.
            (2) Grants to states.--On the application of the Governor 
        of a State, on behalf of the State, the Secretary may provide a 
        development grant to the State in such amount as the Secretary, 
        in consultation with the National Board, determines to be 
        necessary to enable such State to develop a strategic plan 
        pursuant to paragraph (1) for the development of a 
        comprehensive statewide integrated workforce development 
        system.
            (3) Application.--To be eligible to receive a development 
        grant under this subsection, the Governor of a State, on behalf 
        of the State, shall submit to the National Board and the 
        Secretary an application, at such time, in such form, and 
        containing such information as the Secretary may require.
    (b) Implementation Grants to Leading Edge States.--
            (1) Purpose.--The purpose of this subsection is to assist 
        States in the implementation of statewide high quality 
        integrated workforce development systems that are accountable 
        for achieving results.
            (2) Grants to states.--On the application of a Governor of 
        a State, on behalf of the State, in accordance with paragraph 
        (6), the Secretary, in consultation with the National Board, 
        may provide an implementation grant to the State in such amount 
        as the Secretary determines to be necessary to enable such 
        State to implement an integrated workforce development system.
            (3) Period of grant.--The provision of payments under a 
        grant under this subsection shall not exceed 4 fiscal years, 
        and shall be subject to the annual approval of the Secretary, 
        in consultation with the National Board, and the availability 
        of appropriations for the fiscal year involved.
            (4) Allocation requirements.--
                    (A) First year.--In the first fiscal year in which 
                a State receives amounts from an implementation grant 
                under subsection (b), the State shall use not less than 
                75 percent of such amount to provide subgrants to local 
                workforce development boards.
                    (B) Second year.--In the second fiscal year in 
                which a State receives amounts from an implementation 
                grant under subsection (b), the State shall use not 
                less than 80 percent of such amount to provide 
                subgrants to local workforce development boards.
                    (C) Third and succeeding years.--In the third, and 
                each succeeding, fiscal year in which a State receives 
                amounts from an implementation grant under subsection 
                (b), the State shall use not less than 85 percent of 
                such amount to provide subgrants to local workforce 
                development boards.
            (5) Limitation.--A State shall be eligible to receive not 
        more than 1 implementation grant under this subsection.
            (6) Application.--To be eligible to receive an 
        implementation grant under this subsection, the Governor of a 
        State, on behalf of the State, shall submit to the National 
        Board and the Secretary an application that shall include a 
        copy of the State Blueprint and such other information as the 
        Secretary, with the advice of the National Board, may require.
    (c) Dissemination of Information on Best Practices.--
            (1) In general.--The Secretary, in consultation with the 
        National Board, shall--
                    (A) collect and disseminate information that will 
                assist State and local communities undertaking 
                activities to streamline and reform their job training 
                systems, including information on--
                            (i) the successful experiences of States 
                        and localities that have received development 
                        or implementation grants, or that have been 
                        granted waivers; and
                            (ii) research concerning the restructuring 
                        of workforce development systems; and
                    (B) facilitate the exchange of information and 
                ideas among States and local entities carrying out job 
                training reform initiatives.
            (2) Use of information clearinghouses and other entities.--
        To carry out this subsection, the Secretary and the National 
        Board shall utilize such mechanisms as--
                    (A) the Capacity Building and Information 
                Dissemination Network established pursuant to section 
                453(b) of the Job Training Partnership Act (29 U.S.C. 
                1733(b));
                    (B) the education resources information center 
                clearinghouses referred to in the General Education 
                Provisions Act (20 U.S.C. 1221e);
                    (C) the National Network for Curriculum 
                Coordination in Vocational and Technical Education 
                established under section 402(c)(2) of the Carl D. 
                Perkins Vocational and Applied Technology Education Act 
                (20 U.S.C. 2402(c)(2));
                    (D) the National Institute for Literacy established 
                under section 384 of the Adult Education Act (20 U.S.C. 
                1213c); and
                    (E) the State Literacy Resource Centers established 
                under section 356 of such Act (20 U.S.C. 1208aa).
    (d) Workforce Development Impact Reports.--
            (1) Submission.--For each bill or resolution concerning 
        workforce development reported by any committee of the Senate 
        or the House of Representatives, the National Board shall 
        determine whether proposed Federal job training legislation 
        complies with the data reporting, common definitions, and 
        common funding cycles described in subsections (b) and (e) of 
        section 105. A determination of compliance by the National 
        Board under this subsection shall be included in the committee 
        report accompanying such legislation, if timely submitted to 
        such committee before such report is filed.
            (2) Procedure.--It shall not be in order in the Senate or 
        the House of Representatives to consider any bill or resolution 
        concerning workforce development that would not comply with the 
        national workforce development system, as determined by the 
        National Board under paragraph (1).
            (3) Waiver.--This subsection may be waived or suspended in 
        the Senate or the House of Representatives only by the 
        affirmative vote of three-fifths of the members of such House.

SEC. 104. CENTRALIZED WAIVERS.

    (a) Expedited Process.--Not later than 180 days after the date of 
enactment of this Act, the President shall establish an expedited 
process to consider and act on waiver requests submitted by the States 
under this section.
    (b) States Not Receiving Implementation Grants.--
            (1) In general.--Any State may apply, in accordance with 
        this section, for a waiver relating to provisions of law or 
        regulations for one or more of the programs listed in section 
        404(a), for a period of 2 years to facilitate the provision of 
        assistance for workforce development.
            (2) Waiver authority.--A waiver may be granted under this 
        subsection only if--
                    (A) the requirement sought to be waived impedes the 
                ability of the State, or a local entity in the States, 
                to carry out the State or local workforce development 
                plan;
                    (B) the State has waived, or agrees to waive, 
                similar requirements of State law; and
                    (C) in the case of a statewide waiver, the State--
                            (i) provides all State and local agencies 
                        and appropriate organizations in the State with 
                        notice and an opportunity to comment on the 
                        State's proposal to seek a waiver; and
                            (ii) submits the affected agency's comments 
                        with the waiver application.
            (3) Application.--Each application submitted under this 
        subsection shall--
                    (A) identify the statutory or regulatory 
                requirements that are requested to be waived and the 
                goals that the State or local agency intends to 
                achieve;
                    (B) describe the action that the State has 
                undertaken to remove State statutory or regulatory 
                barriers identified in the application;
                    (C) describe the goals of the waiver and the 
                expected programmatic outcomes if the request is 
                granted;
                    (D) describe the numbers and types of people to be 
                affected by such waiver;
                    (E) describe a timetable for implementing the 
                waiver;
                    (F) describe the process the State will use to 
                monitor, on a biannual basis, the progress in 
                implementing the waiver; and
                    (G) describe how the goals of the waived program or 
                programs will continue to be met.
    (c) States Receiving Implementation Grants.--Subject to subsection 
(d), each State receiving an implementation grant under section 103(b) 
shall have the provisions of law, or regulations under such provisions, 
described in its grant application or State Blueprint of such State 
waived for the duration of the implementation grant.
    (d) Limitations.--
            (1) In general.--A waiver shall not be granted of a 
        provision of law (or a regulation under such provision) under a 
        workforce development program if such waiver would alter--
                    (A) the purposes or goals of such program;
                    (B) the allocation of funds under such program;
                    (C) any provision of law under such program 
                relating to public health or safety, civil rights, 
                protections granted under title I and sections 503 and 
                504 of the Rehabilitation Act of 1973 (29 U.S.C. 701 et 
                seq.), occupational safety and health, environmental 
                protection, displacement of current employees, or fraud 
                and abuse; or
                    (D) eligibility requirements under such program, 
                except that a waiver may be granted with respect to an 
                eligibility requirement if such waiver would provide 
                for increased flexibility in developing common 
                definitions for individuals eligible for such program.
            (2) Circulars and related regulations.--The following 
        circulars promulgated by the Office of Management and Budget 
        shall be subject to the waiver authority of this subsection:
                    (A) A-87, relating to cost principles for State and 
                local governments.
                    (B) A-102, relating to grants and cooperative 
                agreements with State and local governments.
                    (C) A-122, relating to nonprofit organizations.
                    (D) A-110, relating to administrative requirements 
                for grants and cooperative agreements with nonprofit 
                organizations and institutions of higher education.
                    (E) A-21, relating to cost principles for 
                institutions of higher education.
            (3) Effective date.--A waiver granted under this section 
        shall take effect on the date such waiver is granted.
            (4) Review of application.--Each application submitted by a 
        State pursuant to paragraph (3) shall be reviewed by the 
        Secretary or agency head who has jurisdiction over the 
        workforce development program or programs to which such waiver 
        request relates.
            (5) Approval or disapproval of application.--
                    (A) Timing.--Each application submitted by a State 
                in accordance with subsection (b)(3) shall be reviewed 
                promptly upon receipt, and shall be approved or 
                disapproved not later than the end of the 60-day period 
                beginning on the date such application is received.
                    (B) Approval.--Waiver or waivers proposed in an 
                application may be approved for the 2-year period 
                beginning on the date such application is approved, if 
                the State demonstrates in the application that such 
                waiver or waivers would achieve coordination, 
                expansion, and improvement in the quality of services 
                under its workforce development system.
                    (C) Disapproval and resubmission.--If an 
                application is incomplete or unsatisfactory, the 
                appropriated Federal official shall, before the end of 
                the period referred to in subparagraph (A)--
                            (i) notify the State of the reasons for the 
                        failure to approve the application;
                            (ii) notify the State that the application 
                        may be resubmitted during the period referred 
                        to in clause (iii); and
                            (iii) permit the State to resubmit a 
                        corrected or amended application during the 60-
                        day period beginning on notification under this 
                        subparagraph.
                    (D) Review of resubmitted application.--Any 
                application resubmitted under subparagraph (C) shall be 
                approved or disapproved before the expiration of the 
                60-day period beginning on the date of the 
                resubmission.
            (6) Revocation of waiver.--If, after approving an 
        application under this subsection, it is found that the waiver 
        or waivers do not achieve coordination, expansion, and 
        improvement in the quality of services under the workforce 
        development programs to which such waiver or waivers relate, 
        the waiver or waivers may be revoked in whole or in part.
            (7) Notification of inspector general.--The inspector 
        general of any Federal agency that has jurisdiction over a 
        workforce development program for which a waiver or waivers has 
        been approved shall be notified of the grant of such waiver.

SEC. 105. QUALITY ASSURANCE SYSTEM.

    (a) Purpose.--The purpose of this section is to improve the quality 
of all Federal programs directed at improving the knowledge, skills, 
and abilities of members of the workforce by strengthening 
accountability and encouraging the adoption of quality improvement 
processes at all levels of the workforce development system. In order 
to accomplish this purpose, this Act--
            (1) directs the Secretaries of Labor, Education, and Health 
        and Human Services to jointly, in consultation with the 
        National Board--
                    (A) develop common terms and definitions as 
                described in subsection (b);
                    (B) develop a placement accountability system as 
                described in subsection (c); and
                    (C) adjust existing program performance standards 
                as described in section 210; and
            (2) directs the National Board to recommend a system of 
        performance standards in its joint resolution submitted to 
        Congress pursuant to section 403(b) that includes standard 
        outcome measures relating to--
                    (A) employment;
                    (B) job retention;
                    (C) earnings; and
                    (D) nonemployment outcome measures (such as 
                learning and competency gains).
    (b) Common Terms and Definitions.--
            (1) In general.--Each workforce development program that 
        receives Federal funds shall collect and report to the Governor 
        and the State Council, if applicable, for each participant to 
        whom assistance is provided, the following information:
                    (A) The quarterly employment status and earnings 
                for 1 year after the participant no longer receives 
                assistance under such program.
                    (B) Economic and demographic characteristics, 
                including the participant's--
                            (i) social security number;
                            (ii) date of birth;
                            (iii) gender;
                            (iv) race or ethnicity;
                            (v) disability status;
                            (vi) education (highest formal grade level 
                        achieved at commencement of participation in 
                        program);
                            (vii) academic degrees and credentials at 
                        time of entry into the program; and
                            (viii) employment status at time of entry 
                        into the program, including--
                                    (I) scheduled hours of work per 
                                week (if employed);
                                    (II) weeks of unemployment (if not 
                                employed);
                                    (III) status as a homeless 
                                individual;
                                    (IV) veteran status; and
                                    (V) information regarding the 
                                receipt by the individual of public 
                                financial assistance (including 
                                Federal, State, and local assistance).
                    (C) Services received, the extent, when 
                appropriate, and spending for such services, 
                including--
                            (i) assessments;
                            (ii) testing;
                            (iii) counseling;
                            (iv) job development or job search 
                        assistance;
                            (v) occupational skills training, including 
                        on-the-job training;
                            (vi) work experience;
                            (vii) job readiness training;
                            (viii) basic skills education;
                            (ix) postsecondary academic education 
                        (nonoccupational); and
                            (x) supportive and supplementary services.
                    (D) Program outcomes, as specified by the State, 
                such as--
                            (i) advancement to higher level education 
                        or training;
                            (ii) attainment of additional degrees or 
                        credentials (including skill standards as such 
                        standards become available);
                            (iii) assessment of learning gain in basic 
                        skills programs;
                            (iv) attainment and retention of subsidized 
                        or unsubsidized employment;
                            (v) quarterly earnings; and
                            (vi) reduction in welfare dependency.
                    (E) Other data elements that may be added to the 
                items required to be collected and reported for all 
                program participants, as the National Board develops 
                additional standard definitions, including--
                            (i) date of entry into the program and date 
                        of exit from the program;
                            (ii) program applicant, program 
                        participant, and program terminee; and
                            (iii) attainment of recognized skills 
                        standards.
            (2) Replacement of existing requirements.--Program 
        monitoring under this section shall supplant existing 
        monitoring and reporting requirements for program participants.
            (3) Adoption of common terms and definitions.--
                    (A) Report.--Not later than 180 days after the date 
                of enactment of this Act, each Federal department and 
                agency with responsibility for a workforce development 
                program shall report to the National Board on its 
                progress in adopting the common terms and definitions 
                for program participants, service activities, and 
                outcomes by program operators and grant recipients.
                    (B) Implementation.--Not later than 1 year after 
                the date of enactment of this Act, each workforce 
                development program receiving Federal funds shall use 
                the common terms and definitions.
                    (C) Use.--Upon adoption by the appropriate Federal 
                agencies, the common definitions for terminology 
                developed and reported pursuant to section 455 of the 
                Job Training Partnership Act (29 U.S.C. 1735(b)) shall 
                be utilized in interpreting and compiling the core data 
                elements. Notwithstanding any other provision of 
                Federal law, such common definitions shall be utilized 
                in lieu of existing program definitions for similar 
                data elements.
            (4) Recommendations.--Not later than 180 days after the 
        date all of the Members of the National Board are appointed, 
        the National Board shall make recommendations to the 
        Secretaries of Labor, Education, and Health and Human Services, 
        and the heads of other agencies operating workforce development 
        programs, on common definitions for other terms, including 
        terms relating to--
                    (A) program status, including--
                            (i) applicant;
                            (ii) participant;
                            (iii) terminee; and
                            (iv) training-related placement;
                    (B) program eligibility, including--
                            (i) family income; and
                            (ii) economically disadvantaged 
                        individuals; and
                    (C) other terms considered appropriate by the 
                National Board, such as common cost categories.
            (5) Amendments.--If any of the proposed common definitions 
        require amendment to existing laws, the National Board shall 
        submit to Congress recommendations for legislative action not 
        later than 9 months after the date all of the members of the 
        National Board are appointed.
    (c) Placement Accountability.--
            (1) In general.--The purpose of this subsection is to 
        establish a placement accountability system using a cost-
        effective data source with information on job placement, 
        earnings, and job retention, to foster accountability by all 
        federally funded workforce development programs.
            (2) Performance monitoring.--Each workforce development 
        program that receives Federal funds shall--
                    (A) engage in continuous performance self-
                monitoring by measuring, at a minimum, the quarterly 
                employment status and earnings of each recipient of 
                assistance under such program; and
                    (B) monitor each recipient of assistance for a 
                period of not less than 1 year, beginning on the date 
                on which the recipient no longer receives assistance 
                under such program.
            (3) Information matching.--
                    (A) Core data.--Each workforce development program 
                that receives Federal funds shall provide the 
                information described in subsection (b) regarding 
                program participants to the State agency responsible 
                for labor market information designated in title V.
                    (B) Matching.--The State agency responsible for 
                labor market information designated in title V shall, 
                in conjunction with the Bureau of Labor Statistics, 
                match the information provided pursuant to subparagraph 
                (A) with quarterly employment and earnings records.
            (4) Reimbursement.--Requesting programs shall reimburse the 
        State agency responsible for wage record data for the cost of 
        matching such information. Notwithstanding any other provision 
        of Federal law, requesting programs may use Federal funds for 
        such reimbursement.
            (5) Confidentiality.--Requesting pro- grams--
                    (A) shall protect the confidentiality of wage 
                record data through the use of recognized security 
                procedures; and
                    (B) may not retain such data for more than 10 
                years.
            (6) Submission to state council.--The State agency 
        responsible for labor market information shall submit the 
        results of the matching to the State Council, in accordance 
        with procedures and schedules specified by the National Board 
        and the Secretary.
            (7) Responsibility of governors.--The Governor of each 
        State shall ensure the submission of the matched data to the 
        State Council, the National Board, the Secretary, and other 
        Federal entities, as required by the National Board.
    (d) Dissemination of Quality Assurance.--The information obtained 
under subsection (c) shall be made available to--
            (1) the State Council of the State in which the program is 
        located;
            (2) the local workforce development boards in the State in 
        which the program is located; and
            (3) consumers of labor market information to judge 
        individual program performance in an easily accessible format.
    (e) Consistent Funding Cycles.--
            (1) In general.--All federally funded workforce development 
        training activities shall, to the extent practicable, be funded 
        on a consistent funding cycle basis.
            (2) Recommendations for funding cycle.--Not later than 180 
        days after the date on which all of the members of the National 
        Board are appointed, the National Board shall make 
        recommendations to Congress on the appropriate funding cycle to 
        be used for all workforce development programs and activities.

                    TITLE II--STATE RESPONSIBILITIES

SEC. 201. STATE WORKFORCE DEVELOPMENT COUNCILS.

    (a) Establishment.--Each State desiring to participate in the 
development of an integrated and accountable workforce development 
system under the procedures specified in section 103(b) shall establish 
a State Workforce Development Council (referred to in this Act as a 
``State Council'') or have located within such State an existing entity 
that is similar to a State Council and that includes members who are 
representatives of employers and workers.
    (b) Purpose.--Each State Council shall serve as the principal 
advisory board for the Governor of such State for all programs included 
in the State's integrated workforce development system.
    (c) Functions.--Each State Council shall assume the functions and 
responsibilities of councils and commissions required under Federal law 
that are part of the integrated workforce development system of such 
State.

SEC. 202. MEMBERSHIP.

    (a) In General.--
            (1) Representatives of business and industry and organized 
        labor.--Each State Council shall be comprised of individuals 
        who are appointed by the Governor for a term of not less than 2 
        years from among--
                    (A) representatives of business and industry, who 
                shall constitute not less than 33 percent of the 
                membership of the State Council, including individuals 
                who are members of local workforce development boards; 
                and
                    (B) representatives of organized labor who shall 
                constitute not less than 25 percent of the membership 
                of the State Council and shall be selected from among 
                individuals nominated by recognized State labor 
                federations.
            (2) Additional members.--Each State Council may include one 
        or more qualified members who are appointed by the Governor 
        from among representatives of the following:
                    (A) Postsecondary institutions.
                    (B) Secondary or postsecondary vocational education 
                institutions.
                    (C) Community-based organizations.
                    (D) Nongovernmental organizations that have a 
                history of successfully protecting the rights of 
                individuals with disabilities or older persons.
                    (E) Units of general local government or consortia 
                of such units.
                    (F) State officials responsible for administering 
                programs listed in sections 402 and 404(a), and 
                included in the integrated system.
                    (G) The State legislature.
                    (H) Any local program that receives Federal funding 
                from any program included in the integrated workforce 
                development system of the State.
    (b) Ex Officio.--
            (1) Nonvoting members.--The Governor may appoint ex officio 
        additional nonvoting members to the State Council.
            (2) Expertise.--The Governor of the State shall ensure that 
        the State Council and the staff of the State Council have 
        sufficient expertise to effectively carry out the duties and 
        functions of the State Council described under the laws 
        relating to the applicable program.
    (c) Advisory Committees.--Each State Council may establish a 
business and a labor advisory committee to assist the State Council in 
carrying out its duties pursuant to section 204. Membership on such 
advisory committees shall include State Council members from the 
business and labor communities and such additional members as the State 
Council requires.

SEC. 203. CHAIRPERSON.

    The Governor of the State shall appoint a chairperson of the State 
Council who is a representative of the business community.

SEC. 204. DUTIES AND RESPONSIBILITIES.

    (a) State Workforce Development Policy Blueprint.--The State 
Council shall assist the Governor to prepare and submit to the National 
Board a biennial report to be known as the State Workforce Development 
Policy Blueprint (referred to in this Act as the ``State Blueprint''). 
The State Blueprint shall--
            (1) serve as a strategic plan for integrating federally 
        funded workforce development programs included in an integrated 
        system of the State, established pursuant to section 103(b), 
        with State-funded job training, employment, employment-related 
        education, and economic development activities;
            (2) summarize and analyze information about training needs 
        of critical industries in the State contained in the local 
        workforce development policy blueprints developed by the 
        workforce development board;
            (3) establish State goals for the integrated workforce 
        development system and a common core set of performance 
        measures and standards for programs included in the system, to 
        be used in lieu of existing performance measures and standards 
        for each of the included programs;
            (4) analyze how the businesses of the State are--
                    (A) progressing in the restructuring of the 
                workplace to provide continuous learning;
                    (B) improving the skills and abilities of front-
                line workers of such businesses; and
                    (C) participating in State and local efforts to 
                transform federally funded education and job training 
                programs into a coherent and accountable workforce 
                development system;
            (5) utilize information available from the State Report 
        Card and other sources to analyze the relative effectiveness of 
        individual workforce development programs within the State and 
        of the State's workforce development system as a whole;
            (6) evaluate the progress being made within the State in 
        streamlining, consolidating, and reforming the workforce 
        development system of the State in accordance with the purposes 
        contained in section 2(b) and the framework for State 
        implementation contained in the implementation grant proposal 
        of the State;
            (7) describe how service to special hard-to-serve 
        populations is to be maintained;
            (8) identify how any funds that a State may be receiving 
        under section 103(b) are to be utilized in conjunction with 
        existing resources to continuously improve the effectiveness of 
        the workforce development system of the State;
            (9) describe the method to be used to allocate funds 
        received under section 103(b) in a fair and equitable manner 
        among unified service delivery areas;
            (10) specify the additional elements, if any, to be 
        included in operating agreements between local workforce 
        development boards and one-stop career centers;
            (11) specify additional criteria, if any, for selection of 
        one-stop career centers;
            (12) specify the conditions under which the requirements of 
        section 304(g) may be waived;
            (13) specify the nonemployment-related outcome measures 
        that will be used for the workforce development system;
            (14) specify the nature and scope of the budget authority 
        for local workforce development boards in the State; and
            (15) supplant federally required planning reports for 
        programs under the integrated workforce development system of 
        the State.
    (b) State Workforce Development Report Card.--The State Council 
shall assist the Governor of the State to issue an annual report to be 
known as the State Workforce Development Report Card (referred to in 
this Act as the ``State Report Card''). The State Report Card shall 
describe the performance of all workforce development programs 
operating in the State that receive Federal funding and any additional 
State-funded programs that the Governor may choose to include. The 
State Report Card shall--
            (1) include an integrated budget that documents the annual 
        spending, number of clients served, and types of services 
        provided for workforce development programs for the State as a 
        whole and for each unified service delivery area within the 
        State;
            (2) assess the maintenance of effort to hard-to-serve 
        populations in relation to the number served and outcomes for 
        those populations in the preceding 3 years;
            (3) utilize information available from the quality 
        assurance system established under section 105 to assess--
                    (A) employment and earnings experiences of 
                individuals who have received assistance from each 
                workforce development program operated in the State; 
                and
                    (B) relative employment and earnings experiences of 
                participants receiving services from each one-stop 
                career center in the State;
            (4) include an analysis of other nonemployment-related 
        results for each workforce development program operating within 
        the State; and
            (5) include a report of annual employment trends and 
        earnings (by industry and occupation) in the State and each 
        unified service delivery area, to assist State and local policy 
        makers, training providers, and users of the system to link the 
        training provided to the skill and labor force needs of local 
        employers.
    (c) Workforce Development Board Certification and Effectiveness 
Criteria.--Each State Council shall--
            (1) assist the Governor to certify each local workforce 
        development board; and
            (2) make recommendations to the Governor for criteria that 
        will be used to judge the effectiveness of each of the 
        workforce development boards of the State.

SEC. 205. DEVELOPMENT OF QUALITY ASSURANCE SYSTEMS AND CONSUMER 
              REPORTS.

    (a) In General.--The State Council shall develop a quality 
assurance system to complement and expand upon the quality assurance 
system established in section 105 in order to provide customers of job 
training services with consumer reports on the supply, demand, price, 
and quality of job training services in each unified service delivery 
area in the State.
    (b) Selection of Tools and Measures.--Each State shall select the 
tools and measures that are appropriate to the needs of such State, 
including, but not limited to--
            (1) collecting and organizing service provider performance 
        data in accordance with information generated from the State 
        Report Card under section 204(b), the financial and management 
        information system designed pursuant to section 208, and the 
        labor market information system of the State described in 
        section 501; and
            (2) conducting surveys as appropriate to ascertain customer 
        satisfaction.
    (c) Collection and Dissemination.--The State Council shall, in 
conjunction with the local workforce development boards, establish 
mechanisms for collecting and disseminating the quality assurance 
information on a regular basis to--
            (1) individuals seeking employment;
            (2) employers;
            (3) policymakers at the Federal, State, and local levels; 
        and
            (4) training and education providers.
    (d) Assurances.--Each public and private education, training, and 
career development service provider receiving Federal funds under a 
program in an integrated system of the State pursuant to section 103(b) 
shall collect and provide the quality assurance information required 
under this section.

SEC. 206. ADMINISTRATION.

    (a) Authorities.--Each State Council shall be independent of other 
State workforce development agencies and have the authority to--
            (1) employ staff; and
            (2) receive and disburse funds.
    (b) Special Projects.--Each State Council may fund and operate 
special pilot or demonstration projects for purposes of research or 
continuous improvement of system performance.
    (c) Limitation on Use of Funds.--Not more than 5 percent of the 
funds received by the State from an implementation grant under section 
103(b) shall be used for the administration of the State Council.

SEC. 207. ESTABLISHMENT OF UNIFIED SERVICE DELIVERY AREAS.

    (a) Recommendations.--Each State Council shall make recommendations 
to the Governor of such State for the establishment of unified service 
delivery areas that may be used as intrastate geographic boundaries, to 
the extent practicable, for all workforce development programs in an 
integrated system of the State pursuant to section 103(b).
    (b) Establishment.--Each State receiving an implementation grant 
under section 103(b) shall, based upon the recommendations of the State 
Council, and in consultation and cooperation with local communities, 
establish unified service delivery areas throughout the State for the 
purpose of providing community wide workforce development assistance in 
one-stop career centers under section 304.
    (c) Responsibilities.--In establishing unified service delivery 
areas, the Governor, in consultation with the State Council and local 
communities--
            (1) shall take into consideration existing--
                    (A) labor market areas;
                    (B) units of general local government;
                    (C) service delivery areas established under 
                section 101 of the Job Training Partnership Act (29 
                U.S.C. 1511); and
                    (D) the distance traveled by individuals to receive 
                services;
            (2) may merge existing service delivery areas; and
            (3) may not approve a total number of unified service 
        delivery areas that is greater than the total number of service 
        delivery areas in existence in the State on the date of 
        enactment of this Act.

SEC. 208. FINANCIAL AND MANAGEMENT INFORMATION SYSTEMS.

    (a) In General.--Each State shall use a portion of the funds it 
receives under section 103(a) to design a unified financial and 
management information system. Each State that receives an 
implementation grant under section 103(b) shall require that all 
programs designated in the integrated system use the unified financial 
and management information system.
    (b) Requirements.--Each unified financial and management 
information system shall--
            (1) be used by all agencies involved in workforce 
        development activities, including one-stop career centers which 
        shall have the capability to track the overall public 
        investments within the State and unified service delivery 
        areas, and to inform policymakers as to the results being 
        achieved through that investment;
            (2) contain a common structure of financial reporting 
        requirements, fiscal systems, and monitoring for all workforce 
        development expenditures included in the integrated system that 
        shall utilize the common data elements and definitions included 
        in subsections (b) and (c) of section 105;
            (3) support local efforts to establish unified service 
        systems, including intake and eligibility determination for all 
        financial aid sources; and
            (4) notwithstanding any other provision of Federal law, 
        supplant federally required fiscal reporting and monitoring for 
        each individual program included in the integrated system.

SEC. 209. CAPACITY BUILDING GRANTS.

    From funds made available to a State for implementation pursuant to 
section 103(b) or development pursuant to section 103(a), the State 
shall develop a strategy to enhance the capacity of the institutions, 
organizations, and staff involved in State and local workforce 
development activities by providing services such as--
            (1) training for members of the local workforce development 
        boards;
            (2) training for front-line staff of any local education or 
        training service provider or one-stop career center;
            (3) technical assistance regarding managing systemic 
        change;
            (4) customer service training;
            (5) organization of peer-to-peer networks for training, 
        technical assistance, and information sharing;
            (6) organizing a best practices database covering the 
        various workforce development system components; and
            (7) training for State and local staff on the principles of 
        quality management and decentralizing decisionmaking.

SEC. 210. PERFORMANCE STANDARDS FOR UNIFIED SERVICE DELIVERY AREAS.

    (a) In General.--The Governor of each State that implements an 
integrated workforce development system under section 103(b) may, in 
consultation with the State Council, the local workforce development 
boards in the State, and employees of any of the job training programs 
included in the integrated system or the employee organizations of such 
employees, make adjustments to existing performance standards for 
programs in such system in the unified service delivery area of the 
State.
    (b) Criteria.--Criteria developed pursuant to subsection (a) may 
include such factors as--
            (1) placement, retention, and earnings of participants in 
        unsubsidized employment, including--
                    (A) earnings at 1, 2, and 4 quarters after 
                termination from the program; and
                    (B) comparability of wages 1 year after termination 
                from the program with wages prior to participation in 
                the program;
            (2) acquisition of skills pursuant to a skill standards and 
        skill certification system endorsed by the National Skill 
        Standards Board established pursuant to section 503 of the 
        National Skill Standards Act of 1994;
            (3) the satisfaction of participants and employers with 
        services provided and employment outcomes; and
            (4) the quality of services provided and the maintenance of 
        effort to hard-to-serve populations, such as low-income 
        individuals and older workers.
    (c) Adjustments.--Each Governor of a State that implements an 
integrated workforce development system under section 103(b) shall, 
within parameters established by the National Board, and after 
consultation with the workforce development boards in the State, 
prescribe adjustments to the performance criteria prescribed under 
subsections (a) and (b) for the unified service delivery areas based 
on--
            (1) specific economic, geographic, and demographic factors 
        in the State and in regions within the State; and
            (2) the characteristics of the population to be served, 
        including the demonstrated difficulties in serving special 
        populations.
    (d) Use of Criteria.--The performance criteria developed pursuant 
to this section shall be utilized in lieu of similar criteria for 
programs receiving Federal funding included in the integrated system of 
the State, to the extent determined by the State Council subject to the 
approval of the National Board.

                   TITLE III--LOCAL RESPONSIBILITIES

SEC. 301. WORKFORCE DEVELOPMENT BOARDS.

    (a) Establishment.--In each State receiving an implementation grant 
under section 103(b), and subject to subsection (b) of this section, 
the local elected officials of each unified service delivery area shall 
establish a workforce development board to administer the workforce 
development assistance provided by all the programs in the integrated 
workforce development system in such area.
    (b) Exception.--States with a single unified delivery area with 
contiguous borders shall not be subject to the requirement of 
subsection (a).
    (c) Membership.--Each workforce development board shall be 
comprised of--
            (1) representatives of business and industry, who shall 
        constitute a majority of the board and who shall be business 
        leaders in the unified service delivery area;
            (2)(A)(i) representatives of organized labor organizations, 
        who shall be selected from among individuals nominated by 
        recognized State labor federations; and
            (ii) representatives of community-based organizations, who 
        shall be selected from among those individuals nominated by 
        officers of such organizations; and
            (B) who shall comprise not less than 30 percent of the 
        membership of the board;
            (3) representatives of educational institutions;
            (4) community leaders, such as leaders of--
                    (A) economic development agencies;
                    (B) human service agencies and institutions;
                    (C) veterans organizations; and
                    (D) entities providing job training;
            (5) representatives of nongovernmental organizations that 
        have a history of successfully protecting the rights of 
        individuals with disabilities or older persons; and
            (6) a local elected official, who shall be a nonvoting 
        member.
    (d) Nominations.--
            (1) Business and industry representatives.--
                    (A) In general.--The representatives of business 
                and industry under paragraph (1) of subsection (c) 
                shall be selected by local elected officials from among 
                individuals nominated by general purpose business 
                organizations after consultation with, and receiving 
                recommendations from, other business organizations in 
                the unified service delivery area.
                    (B) Definition.--For purposes of this paragraph, 
                the term ``general purpose business organization'' 
                means an organization that admits to membership any 
                for-profit business operating within the unified 
                service delivery area.
            (2) Labor representatives.--The representatives of 
        organized labor under paragraph (2) of subsection (c) shall be 
        selected from among individuals recommended by recognized State 
        and local labor federations. If the State or local labor 
        federation fails to nominate a sufficient number of 
        individuals, individual workers may be included on the 
        workforce development board as labor representatives.
            (3) Other members.--The members of the workforce 
        development board described in paragraphs (1), (4), and (5) of 
        subsection (c) shall be selected by chief local elected 
        officials in accordance with subsection (e) from individuals 
        recommended by interested organizations.
            (4) Expertise.--The State Council and Governor of each 
        State shall ensure that the workforce development board and the 
        staff of the State Council have sufficient expertise to 
        effectively carry out the duties and functions of existing 
        local boards described under the laws relating to the 
        applicable program. Such expertise shall include, where 
        appropriate, knowledge of--
                    (A) the long-term needs of individuals preparing to 
                enter the workforce;
                    (B) the needs of State, local, and regional labor 
                markets; and
                    (C) the methods for evaluating the effectiveness of 
                education and job training programs in serving various 
                populations.
    (e) Appointment Process.--In the case of a unified service delivery 
area--
            (1) in which there is one unit of general local government, 
        the chief elected official of such unit shall determine the 
        number and appoint members to the board from the individuals 
        nominated or recommended under subsection (d); and
            (2) in which there are 2 or more units of general local 
        government, the chief elected officials of such units shall 
        determine the number and appoint members to the workforce 
        development board from the individuals nominated or recommended 
        under subsection (d), in accordance with an agreement entered 
        into by such units of general local government or, in the 
        absence of such an agreement, by the Governor of the State in 
        which the unified service delivery area is located.
    (f) Terms.--Each workforce development board shall establish, in 
its bylaws, terms to be served by its members, who may serve until the 
successors of such members are appointed.
    (g) Vacancies.--Any vacancy on a workforce development board shall 
be filled in the same manner as the original appointment was made.
    (h) Removal for Cause.--Any member of a workforce development board 
may be removed for cause in accordance with procedures established by 
the workforce development board.
    (i) Chairperson.--Each workforce development board shall select a 
chairperson, by a majority vote of the members of the board, from among 
the members of the workforce development board who are from business or 
industry. The term of the chairperson shall be determined by the board.
    (j) Subcommittees.--Each workforce development board may establish 
business and labor subcommittees to advise the board on workforce 
development issues. Such subcommittees shall have as members 
representatives of the business and labor communities, and such other 
members as the board determines necessary.
    (k) Duties.--Each workforce development board shall--
            (1) prepare a workforce development board policy blueprint 
        in accordance with section 302;
            (2) issue an annual unified service delivery area report 
        card in accordance with section 303;
            (3) review and comment on the local plans for all programs 
        included in the integrated workforce development system of the 
        State and operating within the unified service delivery area, 
        prior to the submission of such plans to the appropriate State 
        Council, or the relevant Federal agency, if no State approval 
        is required;
            (4) oversee the operations of the one-stop career center 
        established in the unified service delivery area under section 
        304, including the responsibility to--
                    (A) designate one-stop career center operators 
                within the unified service delivery area consistent 
                with selection criteria specified in section 204(a);
                    (B) develop and approve the budgets and annual 
                operating plans of the one-stop career centers;
                    (C) establish annual performance standards, 
                customer service quality criteria, and outcome measures 
                for the one-stop career centers, consistent with 
                measures developed pursuant to sections 210;
                    (D) assess the results of programs and services;
                    (E) ensure that services and skills provided 
                through the centers are of high quality and are 
                relevant to labor market demands; and
                    (F) determine priorities for client services from 
                Federal funding sources in the system;
            (5) develop a strategy to disseminate consumer reports 
        produced under section 205 to workers, jobseekers, and 
        employers, and other individuals in the unified service 
        delivery area; and
            (6) upon recommendation of a business or labor advisory 
        committee, the local board may apply to the Secretary for a 
        grant in the amount of 50 percent of the cost of establishing 
        innovative models of workplace training and upgrading of 
        incumbent workers pursuant to section 307.
    (k) Administration.--
            (1) In general.--Each local workforce development board 
        shall have the authority to receive and disburse funds made 
        available for carrying out the provisions of this Act and shall 
        employ its own staff, independent of local programs and service 
        providers.
            (2) Funding.--Each workforce development board shall 
        receive a portion of its funding from the implementation grant 
        of the State, with additional funds made available from 
        participating programs.
    (l) Conflict of Interest.--No member of a workforce development 
board shall cast a vote on the provision of services by that member (or 
any organization which that member directly represents) or vote on any 
matter that would provide direct financial benefit to such member.

SEC. 302. WORKFORCE DEVELOPMENT BOARD POLICY BLUEPRINT.

    (a) In General.--Each workforce development board shall prepare and 
submit to the State Council a biennial report, to be known as the 
workforce development board policy blueprint, except that in States 
with a single unified service delivery area, the additional elements 
required in the regional blueprint shall be incorporated into the State 
Blueprint.
    (b) Requirements.--The workforce development board policy blueprint 
shall--
            (1) include a list of the key industries and industry 
        clusters of small- to mid-size firms that are most critical to 
        the current and future economic competitiveness of unified 
        service delivery area;
            (2) identify the workforce development needs of the 
        critical industries and industry clusters;
            (3) summarize the capacity of local education and training 
        providers to respond to the workforce development needs;
            (4) indicate how the local workforce development programs 
        intend to strategically deploy resources available from 
        implementation grants and existing programs operating in the 
        unified service delivery area to better meet the workforce 
        development needs of critical industries and industry clusters 
        in the unified service delivery area and enhance program 
        performance;
            (5) include a plan to develop one-stop career centers, as 
        described in section 304, including an estimate of the costs in 
        personnel and other resources to develop a network adequate to 
        provide universal access to such centers in the local labor 
        market;
            (6) describe how services will be maintained to all groups 
        served by the participating programs in accordance with their 
        legislative intent, including hard-to-serve populations;
            (7) identify actions for building the capacity of the 
        workforce development system in the unified service delivery 
        area; and
            (8) report on the level and recent changes in earned income 
        of workers in the local labor market, in relation to State and 
        national levels, by occupation and industry.
    (c) Use in Other Reports.--The workforce development board policy 
blueprint may be utilized in lieu of local planning reports required by 
any other Federal law for any program included in the integrated 
workforce development system, subject to the approval of the State 
Council.

SEC. 303. REPORT CARD.

    (a) In General.--Each workforce development board shall annually 
prepare and submit to the State Council a unified service delivery area 
report card in accordance with this section. The report card shall 
describe the performance of all workforce development programs and 
service providers, including the one-stop career centers, operating in 
the area that is included in the integrated workforce development 
system. In States with a single unified service delivery area, the 
State Council shall prepare the report card.
    (b) Requirements.--The report card shall--
            (1) report on the relationship between services provided 
        and the local labor market needs as described in the workforce 
        development board policy blueprint;
            (2) using the quality assurance system information 
        established pursuant to section 205, include an analysis of 
        employment-related, and other outcomes achieved by the programs 
        and service providers operating in the area;
            (3) identify the performance of the one-stop career 
        centers;
            (4) detail the economic and demographic characteristics of 
        individuals served compared to the characteristics of the 
        general population of the unified service delivery area, and 
        the jobseekers, workers, and businesses of such area; and
            (5) assess the maintenance of effort to hard-to-serve 
        populations in relation to the level of services and outcomes 
        during the preceding 3 years.

SEC. 304. ONE-STOP CAREER CENTERS.

    (a) Establishment.--Each workforce development board receiving 
funds under an implementation grant awarded under section 103(b) shall 
develop and implement a network of one-stop career centers in the 
unified service delivery area of the workforce development board. The 
one-stop career centers shall provide jobseekers, workers, and 
businesses universal access to a comprehensive array of quality 
employment, education, and training services.
    (b) Procedures.--Each workforce development board shall, in 
conjunction with local elected official or officials in the unified 
service delivery area, and consistent with criteria specified in 
section 204(a), select a method for establishing one-stop career 
centers.
    (c) Eligible Entities.--Each entity within the unified service 
delivery area that performs the functions specified in subsections (e) 
and (f) for any of the programs in the integrated workforce development 
system shall be eligible to be selected as a one-stop career center.
    (d) Period of Selection.--Each one-stop career center operator 
shall be designated for two-year periods. Every 2 years, one-stop 
career center designations shall be reevaluated by the workforce 
development board based on performance indicated in the unified service 
delivery area report card and other criteria established by the 
workforce development board and the State Council.
    (e) Brokerage Services to Individuals.--Each one-stop career center 
shall make available to the public, at no cost--
            (1) outreach to make individuals aware of, and encourage 
        the use of, services available from workforce development 
        programs operating in the unified service delivery area;
            (2) intake and orientation to the information and services 
        available through the one-stop career center;
            (3) preliminary assessments of the skill levels (including 
        appropriate testing) and service needs of individuals, 
        including--
                    (A) basic skills;
                    (B) occupational skills;
                    (C) prior work experience;
                    (D) employability;
                    (E) interests;
                    (F) aptitude; and
                    (G) supportive service needs;
            (4) job search assistance, including resume and interview 
        preparation and workshops;
            (5) information relating to the supply, demand, price, and 
        quality of job training services available in each unified 
        service delivery area in the State pursuant to section 501(c);
            (6) information relating to eligibility requirements and 
        sources of financial assistance for entering the programs 
        described in 501(c)(2)(C); and
            (7) referral to appropriate job training, employment, and 
        employment-related education or support services in the unified 
        service delivery area.
    (f) Brokerage Services to Employers.--Each one-stop career center 
shall provide to each requesting employer--
            (1) information relating to supply, demand, price, and 
        quality of job training services available in each unified 
        service delivery area in the State, consistent with the 
        consumer reports described in section 205;
            (2) customized screening and referral of individuals for 
        employment;
            (3) customized assessment of skills of the current workers 
        of the employer;
            (4) an analysis of the skill needs of the employer; and
            (5) other specialized employment and training services.
    (g) Conflicts.--
            (1) In general.--Except as provided in paragraph (2), any 
        entity that performs one-stop career center functions shall be 
        prohibited from making an education and training referral to 
        itself.
            (2) Waiver.--If the enforcement of paragraph (1) would 
        result in diminished access to either one-stop career center 
        services or to education and training services, as defined 
        under section 204(a), such prohibition may be waived by the 
        State council upon request of a regional board.
    (h) Fees.--
            (1) In general.--Except as provided in paragraph (2), each 
        one-stop career center may charge fees for the services 
        described in subsection (f), subject to approval by the 
        workforce development board.
            (2) Limitation.--No fee may be charged for any service that 
        an individual would be eligible to receive at no cost under a 
        participating program.
            (3) Income.--Income received by a one-stop career center 
        from the fees collected shall be used by the workforce 
        development board to expand or enhance one-stop career centers 
        available within the unified service delivery area.
    (i) Core Data Elements and Common Definitions.--Each one-stop 
career center shall adopt the core data elements and common definitions 
as specified in subsections (b) and (c) of section 105, and updated by 
the National Board.
    (j) Operating Agreements.--
            (1) In general.--Each one-stop career center operator shall 
        enter into a written agreement with the workforce development 
        board concerning the operation of the center.
            (2) Approval.--The agreement shall--
                    (A) be subject to the approval of--
                            (i) the local chief elected official or 
                        officials;
                            (ii) the State Council; and
                            (iii) the Governor of the State in which 
                        the center is located; and
                    (B) shall address--
                            (i) the services to be provided;
                            (ii) the financial and nonfinancial 
                        contributions to be made to the centers from 
                        funds made available pursuant to section 103(b) 
                        and all participating workforce development 
                        programs;
                            (iii) methods of administration;
                            (iv) procedures to be used to ensure 
                        compliance with statutory requirements of the 
                        programs in the integrated workforce 
                        development system; and
                            (v) other elements, as required by the 
                        workforce development board or the State 
                        Council under section 204(a).

SEC. 305. PROGRESS REPORTS.

    Each workforce development board shall annually report to the State 
Council on the progress such board is making with respect to the 
effectiveness criteria of the workforce development board established 
under section 210, assessing the implementation of the integrated 
system, except that in States with a single unified service delivery 
area the State Council shall be responsible for carrying out the 
activities under this section.

SEC. 306. CAPACITY BUILDING.

    (a) In General.--Each workforce development board shall identify 
actions to be taken for building the capacity of the workforce 
development system in such unified service delivery, except that in 
States with a single unified delivery area, the State Council shall be 
responsible for carrying out the activities under this section.
    (b) Funding.--The State Council shall make funds available to each 
workforce development board for capacity building activities from funds 
made available under section 103(b) and any other funds within the 
integrated workforce development budget of the State. For the 
activities described in subsection (c), the workforce development board 
may also submit requests to the State Council to redirect a portion of 
training and technical assistance resources available from any of the 
workforce development programs included in the integrated system within 
the unified service development area of the workforce development 
board.
    (c) Types of Activities.--Capacity building activities may 
include--
            (1) training of workforce development board members;
            (2) staff training;
            (3) technical assistance regarding managing systemic 
        change;
            (4) customer service training;
            (5) organization of peer-to-peer networks for training, 
        technical assistance, and information sharing;
            (6) organizing a best practices database covering the 
        various system activities; and
            (7) training for local staff on the principles of quality 
        management and decentralized decisionmaking.

SEC. 307. INCENTIVE GRANTS FOR INCUMBENT WORKER TRAINING.

    (a) Purpose.--The purpose of this section is to establish a program 
to award competitive matching grants to assist local workforce 
development boards respond to the training needs of front-line workers 
in the communities in which such boards are located.
    (b) Application.--Each local workforce development board seeking a 
grant under this section shall submit an application to the State 
Council of the State in which such board is located, at such time, in 
such manner, and containing such information as the Secretary may 
prescribe. Not later than 30 days after receiving an application, the 
State Council shall review and forward the application, with comments, 
to the National Board and the Secretary.
    (c) Selection of Grantees.--
            (1) In general.--The Secretary, with the advice of the 
        National Board, shall award a grant under this section only if 
        the Secretary determines, from the grant application, that the 
        grant will be used to maintain or enhance the competitive 
        position of local industries that are committed to making the 
        investments necessary to develop the skills of their workers.
            (2) Criteria.--In awarding grants under this section, the 
        Secretary shall take into account--
                    (A) the policy priorities and training needs of 
                local industries identified in the local workforce 
                development policy blueprints;
                    (B) whether there is a demonstrated need for skill 
                upgrading to maintain firm or industry competitiveness;
                    (C) whether the application contains proposals for 
                training that will directly lead to increased earnings 
                of front-line workers;
                    (D) initiatives by firms or firm partnerships to 
                develop high performance work organizations;
                    (E) whether the grant proposal meets the training 
                needs of small and medium sized firms;
                    (F) whether the grant proposal is focused on 
                workers with substantial firm or industry tenure; and
                    (G) whether the proposed industry activities are 
                integrated with private sector activities under the 
                School-to-Work Opportunities Act of 1994.
    (d) Use of Funds.--Grants awarded under this section shall be used 
for skill enhancement and training activities that may include--
            (1) basic skills;
            (2) occupational skills;
            (3) statistical process control training;
            (4) total quality management techniques;
            (5) team building and problem solving skills; and
            (6) other training or activities that will result in the 
        increased likelihood of job retention, higher wages, or 
        increased firm competitiveness.
    (e) Funding.--
            (1) Cost share.--
                    (A) Federal share.--A grant awarded under this 
                section shall be in an amount equal to 50 percent of 
                the cost of carrying out the grant proposal.
                    (B) Local share.--As a condition to receiving 
                Federal funds under this section, local businesses, 
                industry associations, and worker organizations shall 
                provide funding in an amount equal to 50 percent of the 
                cost of carrying out the grant proposal.
            (2) Limitations.--
                    (A) Use of funds.--Amounts awarded under this 
                section shall not be used to pay the wages of workers 
                during the training of such workers.
                    (B) Additional funding.--Each recipient of funds 
                under this section shall certify that such funds shall 
                supplement and not supplant other public or private 
                funds otherwise spent on worker training.

                        TITLE IV--CONSOLIDATION

SEC. 401. PURPOSE; FINDINGS; SENSE OF THE CONGRESS.

    (a) Purpose.--The purpose of this title is to streamline the system 
of federally funded employment training services available to 
jobseekers, workers, and businesses.
    (b) Findings.--The Congress finds that--
            (1) the process of streamlining the system of federally 
        funded employment training services begins with consolidating 
        and eliminating separate employment training programs; and
            (2) as such programs are eliminated, the funding for such 
        programs should be invested back into such system to support 
        the creation of a workforce development system, as described in 
        section 2(b).
    (c) Sense of the Congress.--It is the sense of the Congress that--
            (1) any budget savings realized as a result of the 
        elimination or consolidation of programs pursuant to section 
        403(a) or through the sunsetting of programs pursuant to 
        section 405 should be reinvested in the Nation's job training 
        system as described in subsection (b); and
            (2) as programs are eliminated and merged, it is imperative 
        that such elimination and merging be done without in any way 
        reducing the commitment or level of effort of the Federal 
        Government to improving the education, employment, and earnings 
        of all workers, particularly hard-to-serve individuals, 
        including individuals with limited-English proficiency, and 
        other workers with special needs.

SEC. 402. INTEGRATION OF YOUTH PROGRAMS.

    Not later than 180 days after the date of enactment of this Act, 
the National Board shall study and report to the President and Congress 
on how best to integrate the programs, under the following statutes or 
portions of statutes, for in-school and out-of-school youth with the 
School-to-Work Opportunities Act of 1994:
            (1) Part C of title II of the Job Training Partnership Act 
        (29 U.S.C. 1641 et seq.).
            (2) Part B of title II of the Job Training Partnership Act 
        (29 U.S.C. 1630 et seq.).
            (3) Part H of title IV of the Job Training Partnership Act 
        (29 U.S.C. 1782 et seq.).
            (4) The Carl D. Perkins Vocational and Applied Technology 
        Education Act (20 U.S.C. 2301 et seq.).
            (5) Youthbuild programs under title IV of the Cranston-
        Gonzalez National Affordable Housing Act (42 U.S.C. 12899 et 
        seq.).
            (6) Part B of title IV of the Job Training Partnership Act 
        (29 U.S.C. 1691 et seq.).

SEC. 403. CONSOLIDATION OF WORKFORCE DEVELOPMENT PROGRAMS.

    (a) Annual Recommendations.--Not later than 180 days after the date 
of enactment of this Act, and each June 1 thereafter, the National 
Board shall make recommendations to the President and Congress for the 
elimination of Federal workforce development programs, or programs 
whose functions should be subsumed under other Federal programs.
    (b) Report.--Not later than June 1, 1999, the National Board, based 
on such board's analysis of the experience of leading edge States and 
the progress made toward establishing an integrated workforce 
development system, shall prepare and submit recommendations to the 
Committee on Education and Labor of the House of Representatives and 
the Committee on Labor and Human Resources of the Senate a report 
containing the findings of such board, and recommendations for proposed 
reforms. The National Board shall also submit to the Congress a draft 
of a joint resolution containing provisions to develop a streamlined, 
integrated, federally supported workforce development system, from the 
programs listed in section 404(a) and any other Federal workforce 
development program determined by the National Board as appropriate to 
be included that is consistent with this Act, pursuant to section 2(b). 
The joint resolution shall include recommendations for standard outcome 
measures as described in section 105(a) and shall describe how the new 
system will maintain services to hard-to-serve populations.

SEC. 404. INTEGRATION OF PROGRAMS AT THE LOCAL LEVEL.

    (a) Requirement.--Any State receiving an implementation grant to 
develop an integrated workforce development system shall, at a minimum, 
include the programs and activities carried out on the date of 
enactment of this Act under the following provisions and Acts in such 
State's reformed delivery system pursuant to section 103(b):
            (1) Part F of title IV of the Social Security Act (42 
        U.S.C. 681 et seq.).
            (2) Part A of title II, and title III of the Job Training 
        Partnership Act (29 U.S.C. 1601 et seq., 1651 et seq.).
            (3) The Wagner-Peyser Act (29 U.S.C. 49 et seq.).
            (4) Sections 235 and 236 of the Trade Act of 1974 (19 
        U.S.C. 2295 and 2296) and paragraphs (1) and (2) of section 
        250(d) of such Act (19 U.S.C. 2331(d)).
            (5) The Refugee Education Assistance Act of 1980 (8 U.S.C. 
        1522 note).
            (6) Title VII of the Stewart B. McKinney Homeless 
        Assistance Act (42 U.S.C. 11421 et seq.).
            (7) Section 6(d)(4) of the Food Stamp Act of 1977 (7 U.S.C. 
        2015(d)(4)).
    (b) Additional Programs.--Any State receiving an implementation 
grant to develop an integrated workforce development system may include 
the programs and activities carried out on the date of enactment of 
this Act under the following provisions and Acts in such State's 
reformed delivery system pursuant to section 103(b):
            (1) Part B of title III of the Adult Education Act (20 
        U.S.C. 1203 et seq.).
            (2) Title V of the Older Americans Act of 1965 (42 U.S.C. 
        3056 et seq.).
            (3) The Carl D. Perkins Vocational and Applied Technology 
        Education Act (20 U.S.C. 2301 et seq.).
            (4) Part C of title IV of the Job Training Partnership Act 
        (29 U.S.C. 1721).
            (5) Any other Federal or State workforce development 
        program identified by the Governor pursuant to section 103(b), 
        subject to a two-thirds vote of the National Board.

SEC. 405. SUNSET OF MAJOR WORKFORCE DEVELOPMENT PROGRAMS.

    (a) Repeal.--
            (1) In general.--Subject to paragraph (2), the provisions 
        and Acts listed in paragraphs (1) through (7) of section 404(a) 
        are repealed.
            (2) Effective date.--Paragraph (1) shall take effect on 
        September 30, 1999.
    (b) Technical and Conforming Amendments.--The National Board shall 
include in the draft joint resolution submitted under section 403(b), 
technical and conforming amendments regarding the provisions and Act 
repealed under subsection (a). Such proposed amendments should be 
consistent with the purposes of this Act.

          TITLE V--INTEGRATED LABOR MARKET INFORMATION SYSTEM

SEC. 501. INTEGRATED LABOR MARKET INFORMATION.

    (a) Findings.--Congress finds that accurate, timely, and relevant 
data for the Nation, States, and localities is required to achieve 
Federal domestic policy goals, such as--
            (1) economic growth and productivity through--
                    (A) career planning and successful job training and 
                job searching by youth and adults; and
                    (B) efficient hiring, effective worker training, 
                and appropriate location and organization of work by 
                employers;
            (2) accountability, through planning and evaluation, in 
        workforce development and job placement programs funded by the 
        Federal Government or developed by other public or private 
        entities;
            (3) equity and efficiency in the allocation of Federal 
        funds; and
            (4) greater understanding of local labor market dynamics 
        through the support of research.
    (b) Purpose.--The purpose of this title is to provide for the 
development, maintenance, and continuous improvement of a nationwide 
integrated system for the collection, analysis, and dissemination of 
labor market information.
    (c) System.--
            (1) Development.--The Secretary, in cooperation with the 
        National Board, the State Councils, where appropriate, and the 
        Governors, shall oversee and ensure the development, 
        maintenance, and continuous improvement of a nationwide 
        integrated system of labor market information that will--
                    (A) promote comprehensive workforce development 
                planning, evaluation, and service integration;
                    (B) meet and be responsive to the customer needs of 
                jobseekers, employers, and public officials at all 
                government levels who develop economic and social 
                policy, allocate funds, plan and implement workforce 
                development systems, are involved in career planning or 
                exploration, and deliver integrated services;
                    (C) serve as the foundation for automated 
                information delivery systems that provide easy access 
                to labor market, occupational and career information; 
                and
                    (D) meet the Federal domestic policy goals 
                specified in section 501(a).
            (2) Information to be included.--The integrated system 
        described in paragraph (1) shall include statistical data from 
        survey and projection programs and data from administrative 
        reporting systems which, taken together, shall enumerate, 
        estimate, and project the supply of and demand for labor at 
        national, State, and local levels in a timely manner, 
        including, but not limited to, data on--
                    (A) labor market demand, such as--
                            (i) profiles of occupations that describe 
                        job duties, education, and training 
                        requirements, skills, wages, benefits, working 
                        conditions, and the industrial distribution of 
                        occupations;
                            (ii) current and projected employment 
                        opportunities and trends, by industry and 
                        occupation, including growth projections by 
                        industry, and growth and replacement need 
                        projections by occupation;
                            (iii) job openings, job locations, hiring 
                        requirements, and application procedures;
                            (iv) profiles of industries and employers 
                        in the local labor market describing the nature 
                        of the work performed, employment skill and 
                        experience requirements, specific occupations, 
                        wages, hours, and benefits, and hiring 
                        patterns;
                            (v) industries, occupations, and geographic 
                        locations facing significant change or 
                        dislocation; and
                            (vi) information maintained in a 
                        longitudinal manner on the quarterly earnings, 
                        establishment, industry affiliation, and 
                        geographic location of employment for all 
                        individuals for whom such information is 
                        collected by the States;
                    (B) labor supply, such as--
                            (i) educational attainment, training, 
                        skills, skill levels, and occupations of the 
                        population;
                            (ii) demographic, socioeconomic 
                        characteristics, and current employment status 
                        of the population, including self-employed, 
                        part-time, and seasonal workers;
                            (iii) job seekers, including their 
                        education and training, skills, skill levels, 
                        employment experience, and employment goals;
                            (iv) the number of workers displaced by 
                        permanent layoffs and plant closings by 
                        industry, occupation, and geographic location; 
                        and
                            (v) current and projected training 
                        completers who have acquired specific 
                        occupational or work skills and competencies; 
                        and
                    (C) consumer information, which shall be current, 
                comprehensive, localized, automated, and in a form 
                useful for immediate employment, entry into training 
                and education programs, and career exploration, 
                including--
                            (i) job openings, locations, hiring 
                        requirements, application procedures, and 
                        profiles of employers in the local labor market 
                        describing the nature of the work performed, 
                        employment requirements, wages, benefits, and 
                        hiring patterns;
                            (ii) jobseekers, including their education 
                        and training, skills, skill levels, employment 
                        experience, and employment goals;
                            (iii) the labor market experiences, in 
                        terms of wages and annual earnings, by industry 
                        and occupation, of workers in local labor 
                        markets, by sex and racial or ethnic group, 
                        including information on hard-to-serve 
                        populations;
                            (iv) education courses, training programs, 
                        and job placement programs, including 
                        information derived from statistically based 
                        performance evaluations and their user 
                        satisfaction ratings; and
                            (v) eligibility for funding and other 
                        assistance in job training, job search, income 
                        support, supportive services, and other 
                        employment services.
            (3) Technical standards.--The integrated labor market 
        information system shall use common standards that will 
        include--
                    (A) standard classification and coding systems for 
                industries, occupations, skills, programs, and courses;
                    (B) nationally standardized definitions of terms 
                consistent with sections 105 and 501(c)(2);
                    (C) a common system for designating geographic 
                areas consistent with the unified service delivery 
                areas;
                    (D) data standards and quality control mechanisms; 
                and
                    (E) common schedules for data collection and 
                dissemination.
            (4) Availability of information.--Data generated by the 
        labor market information system including information on 
        quarterly employment and earnings, together with matched data 
        on individuals who have participated in a federally supported 
        job training activity, shall be made available to the National 
        Board for use in the preparation of the National Report Card. 
        Aggregate level information will be made available to consumers 
        in automated information delivery systems.
            (5) Dissemination, technical assistance, and research.--The 
        Secretary, in cooperation with the National Board, the 
        Governors, and State Councils, where appropriate, shall oversee 
        the development, maintenance, and continuous improvement of--
                    (A) dissemination mechanisms for data and analysis, 
                including mechanisms that may be standardized among the 
                States;
                    (B) programs of technical assistance and staff 
                development for States and localities, including 
                assistance in adopting and utilizing automated systems 
                and improving the access, through electronic and other 
                means, to labor market information; and
                    (C) programs of research and demonstration, on ways 
                to improve the products and processes authorized by 
                this section.

SEC. 502. RESPONSIBILITIES OF THE NATIONAL BOARD.

    (a) In General.--The National Board shall plan, review, and 
evaluate the Nation's integrated labor market information system.
    (b) Duties.--The National Board shall--
            (1) be responsible for providing policy guidance;
            (2) evaluate the integrated labor market information system 
        and ensure the cooperation of participating agencies; and
            (3) recommend to the Secretary needed improvements in 
        Federal, State, and local information systems to support the 
        development of an integrated labor market information system.

SEC. 503. RESPONSIBILITIES OF THE SECRETARY.

    (a) In General.--The Secretary shall manage the investment in an 
integrated labor market information system by--
            (1) reviewing all requirements for labor market information 
        across all programs within the system;
            (2) developing a comprehensive annual budget, including 
        funds at the Federal level, funds allotted to States by 
        formula, and funds supplied to the States by contracts with 
        departmental entities;
            (3) administering grants allotted to States by formula;
            (4) negotiating and executing contracts with the States;
            (5) coordinating the activities of Federal workforce 
        development agencies responsible for collecting the statistics 
        and program administrative data that comprise the integrated 
        system and disseminating labor market information at the 
        National, State, regional, and local levels; and
            (6) ensuring that standards are designed to meet the 
        requirements of chapter 35 of title 44, United States Code, and 
        are coordinated and consistent with other appropriate Federal 
        standards established by the Bureau of Labor Statistics and 
        other statistical agencies;
    (b) Requirements.--In carrying out the duties of the Secretary 
under this section, the Secretary shall--
            (1) in consultation with the States and the private sector, 
        define a common core set of labor market information data 
        elements as specified in section 501(c)(2) that will be 
        consistently available across States in an integrated labor 
        market information system; and
            (2) ensure that data is sufficiently timely and locally 
        detailed for use, including uses specified in subsections (b) 
        and (c)(2) of section 501.
    (c) Annual Plan.--
            (1) In general.--The Secretary shall annually prepare and 
        submit to the National Board for review, a plan for improving 
        the Nation's integrated labor market information system. The 
        Secretary shall also submit the plan, together with the 
        comments and recommendations of the National Board, to the 
        President and Congress.
            (2) Contents.--The plan shall describe the budgetary needs 
        of the labor market information system, and shall describe the 
        activities of such Federal agencies with respect to data 
        collection, analysis, and dissemination for each fiscal year 
        succeeding the fiscal year in which the plan is developed. The 
        plan shall--
                    (A) establish goals for system development and 
                improvement based on information needs for achieving 
                economic growth and productivity, accountability, fund 
                allocation equity, and an understanding of labor market 
                characteristics and dynamics;
                    (B) specify the common core set of data that shall 
                be included in the integrated labor market information 
                system;
                    (C) describe the current spending on integrated 
                labor market information activities from all sources, 
                assess the adequacy of the funds and identify the 
                specific budget needs of the Federal and State 
                workforce development agencies with respect to 
                implementing and improving an integrated labor market 
                information system and the activities of such agencies 
                with respect to data compilation, analysis, and 
                dissemination for each fiscal year in which the plan is 
                developed;
                    (D) develop a budget for an integrated labor market 
                information system that accounts for all funds in 
                subparagraph (C) and any new funds made available 
                pursuant to this Act, and describes the relative 
                allotments to be made for--
                            (i) the operation of the cooperative 
                        statistical programs under section 501(c)(2);
                            (ii) ensuring that technical standards are 
                        met pursuant to section 501(c)(3); and
                            (iii) consumer information, analysis and 
                        dissemination, technical assistance, and 
                        research under paragraphs (2)(C), (4), and (6) 
                        of section 501(c);
                    (E) describe the existing system, information 
                needs, and the development of new data programs, 
                analytical techniques, definitions and standards, 
                dissemination mechanisms, governance mechanisms, and 
                funding processes to meet new needs;
                    (F) summarize the results of an annual review of 
                the costs to the States of meeting contract 
                requirements for data production, including a 
                description of how the budget request for an integrated 
                labor market information system will cover such costs;
                    (G) describe how the State Councils will be 
                reimbursed for carrying out the duties for labor market 
                information;
                    (H) recommend methods to simplify and integrate 
                automated client intake and eligibility determination 
                systems across workforce development programs to permit 
                easy determination of eligibility for funding and other 
                assistance in job training, job search, income support, 
                supportive services, and other reemployment services; 
                and
                    (I) provide for the involvement of States in 
                developing the plan by holding formal consultations 
                conducted in cooperation with representatives of the 
                Governor or State Council, where appropriate, pursuant 
                to a process established by the National Board.
    (d) Assistance From Other Agencies.--The Secretary may receive 
assistance from member and other Federal agencies (such as the Bureau 
of Labor Statistics and the Employment and Training Administration of 
the Department of Labor, the Administration on Children and Families of 
the Department of Health and Human Services, and the Office of Adult 
and Vocational Education and the National Commission for Education 
Statistics of the Department of Education) to assist in the collection, 
analysis, and dissemination of labor market information, and in the 
provision of training and technical assistance to users of information, 
including States, employers, youth, and adults.

SEC. 504. RESPONSIBILITIES OF GOVERNORS.

    (a) Designation of State Agency.--The Governor of each State and 
the State Council, where appropriate, shall designate one State agency 
to be the agency responsible for--
            (1) the management and oversight of a statewide 
        comprehensive integrated labor market information system; and
            (2) developing a State unified labor market information 
        budget on an annual basis.
    (b) Requirements.--As a condition of receiving Federal financial 
assistance under this title, the Governor or State Council, where 
appropriate, shall--
            (1) develop, maintain, and continuously improve a 
        comprehensive integrated labor market information system, which 
        shall--
                    (A) include the elements specified in section 
                501(c)(2);
                    (B) be responsive to the needs of the State and the 
                localities of such State for planning and evaluative 
                data, including employment and economic analyses and 
                projections, and program outcome data on employment and 
                earnings for the quality assurance system under section 
                205; and
                    (C) meet Federal standards under chapter 35 of 
                title 44, United States Code, and other appropriate 
                Federal standards established by the Bureau;
            (2) ensure the performance of contract and grant 
        responsibilities for data compilation, analysis, and 
        dissemination;
            (3) conduct such other data collection, analysis, and 
        dissemination activities as will ensure the availability of 
        comprehensive State and local labor market information;
            (4) coordinate the data collection, analysis, and 
        dissemination activities of other State and local agencies, 
        with particular attention to State education, economic 
        development, human services, and welfare agencies, to ensure 
        complementary and compatibility among data; and
            (5) cooperate with the National Board and the Secretary by 
        making available, as requested, data for the evaluation of 
        programs covered by the labor market information and the 
        quality assurance systems under section 205.
    (c) Noninterference With State Functions.--Nothing in this Act 
shall limit the ability of the State agency designated under this 
section to conduct additional data collection, analysis, and 
dissemination activities with funds derived from sources other than 
this Act.
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