[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1617 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 1617

To consolidate and reform workforce development and literacy programs, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 11, 1995

 Mr. McKeon (for himself, Mr. Goodling, Mr. Cunningham, Mr. Gunderson, 
Mr. Riggs, Mr. DeLay, Mr. Boehner, Mr. Kasich, Mr. McIntosh, Mr. Petri, 
 Mrs. Roukema, Mr. Funderburk, Mr. Souder, Mr. Fawell, Mr. Ballenger, 
   Mr. Barrett of Nebraska, Mr. Hoekstra, Mr. Castle, Mrs. Meyers of 
   Kansas, Mr. Sam Johnson of Texas, Mr. Talent, Mr. Greenwood, Mr. 
  Hutchinson, Mr. Knollenberg, Mr. Graham, Mr. Weldon of Florida, Mr. 
   Norwood, and Mr. Davis) introduced the following bill; which was 
  referred to the Committee on Economic and Educational Opportunities

_______________________________________________________________________

                                 A BILL


 
To consolidate and reform workforce development and literacy programs, 
                        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.

    This Act may be cited as the--
            (1) ``Consolidated and Reformed Education, Employment, and 
        Rehabilitation Systems Act''; or
            (2) ``CAREERS Act''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Findings and purpose.
Sec. 4. Authorizations of appropriations.
Sec. 5. Definitions.
             TITLE I--WORKFORCE DEVELOPMENT INFRASTRUCTURE

Sec. 101. Purpose of title.
              Subtitle A--State and Local Responsibilities

Sec. 102. State requirements.
Sec. 103. Collaborative process regarding State system.
Sec. 104. Consolidated State workforce development and literacy plan.
Sec. 105. Designation of State administrative agent.
Sec. 106. Establishment of workforce development areas.
Sec. 107. Provisions regarding local workforce development boards.
Sec. 108. Establishment of one-stop career center systems.
Sec. 109. Certification of education, training, and vocational 
                            rehabilitation service providers.
Sec. 110. Management information systems.
              Subtitle B--Amendments to Wagner-Peyser Act

Sec. 131. General program requirements.
Sec. 132. Labor market information.
  TITLE II--YOUTH WORKFORCE PREPARATION AND DEVELOPMENT CONSOLIDATION 
                                 GRANT

Sec. 201. Purposes.
Sec. 203. Definitions.
                       Subtitle A--State Funding

Sec. 211. National and State funding.
Sec. 212. Within State allocation.
       Subtitle B--State Organizational, Planning, and Reporting 
                            Responsibilities

Sec. 221. State plan.
Sec. 222. State programs and State activities.
Sec. 223. Incentive awards.
Sec. 224. Core standards, performance goals and measures.
     Subtitle C--Subgrants for In-School and At-Risk Youth Programs

Sec. 231. Partnership agreements.
Sec. 232. Distribution of funds.
                  Chapter 1--In-School Youth Programs

Sec. 241. Uses of funds for in-school youth programs.
                   Chapter 2--At-Risk Youth Programs

Sec. 245. Uses of funds for at-risk youth.
Sec. 246. At-risk youth providers.
                     Subtitle D--National Programs
Sec. 251. Research activities.
Sec. 252. Annual assessment and data collection of vocational education 
                            programs.
Sec. 253. National center or centers for research.
      TITLE III--ADULT EMPLOYMENT AND TRAINING CONSOLIDATION GRANT

     Subtitle A--Adult Employment and Training Consolidation Grant

Sec. 301. Purpose.
Sec. 302. Authorization.
Sec. 303. Allotment among States.
Sec. 304. Allocation within States.
Sec. 305. Additional State plan requirements.
Sec. 306. Use of amounts.
Sec. 307. Core standards, performance goals, and measures.
                      Subtitle B--Federal Programs

Sec. 311. National discretionary grants.
Sec. 312. Disaster relief employment assistance.
Sec. 313. Research, demonstration, evaluation, and capacity building.
Sec. 314. Workforce skills and development loans.
Sec. 315. Employment, training, and education assistance for Native 
                            Americans.
Sec. 316. Employment, training, and education assistance for migrant 
                            and seasonal farmworkers.
  TITLE IV--ADULT EDUCATION, FAMILY LITERACY, AND LIBRARY TECHNOLOGY 
                          CONSOLIDATION GRANT

Sec. 401. Findings and purpose.
Sec. 402. Definitions.
                          Subtitle A--Funding

Sec. 411. Reservations from amounts appropriated.
Sec. 412. Allotment.
                      Subtitle B--Grants to States

Sec. 421. Requirement to make grants.
Sec. 422. Uses of funds.
Sec. 423. Additional grant requirements.
Sec. 424. Performance measures.
                     Subtitle C--National Programs

Sec. 431. National competitive incentive grants.
Sec. 432. National Institute for Literacy.
Sec. 433. National leadership activities.
           TITLE V--AMENDMENTS TO REHABILITATION ACT OF 1973

       Subtitle A--Vocational Rehabilitation Consolidation Grant

                      Chapter 1--Transition Period

Sec. 501. Transition.
      Chapter 2--Revision Of Title I of Rehabilitation Act of 1973

Sec. 511. Comprehensive revision.
       Subtitle B--Other Amendments to Rehabilitation Act of 1973

Sec. 521. Training and demonstration projects.
Sec. 522. Employment opportunities for individuals with disabilities.
        TITLE VI--AMENDMENTS TO THE HIGHER EDUCATION ACT OF 1965

Sec. 601. Purpose of title.
             Subtitle A--Student Loan Marketing Association

Sec. 611. Reorganization of the student loan marketing association 
                            through the formation of a holding company.
      Subtitle B--College Construction Loan Insurance Association

Sec. 621. Privatization of college construction loan insurance 
                            association.
               TITLE VII--REPEALERS AND OTHER AMENDMENTS.

Sec. 701. Carl D. Perkins Vocational and Applied Technology Education 
                            Act.
Sec. 702. School-to-Work Opportunities Act.
Sec. 703. Adult Education Act.
Sec. 704. National Literacy Act.
Sec. 705. Library Services and Construction Act.
Sec. 706. Technology for Education Act of 1994.
Sec. 707. Job Training Partnership Act.
Sec. 708. Stewart B. Mckinney Homeless Assistance Act.
Sec. 709. Higher education provisions.
Sec. 710. Effective date.
SEC. 3. FINDINGS AND PURPOSE.

    (a) Findings.--The Congress finds the following:
            (1) The knowledge and skills of the United States workforce 
        are fundamental to the economic competitiveness of the Nation 
        today and in the future, however, the United States does not 
        currently possess a comprehensive, effective, and efficient 
        system of workforce preparation and development.
            (2) Due to global competition, emerging technologies in the 
        workplace, the emergence of quality managing, corporate 
        realignments, and the loss of many low-skilled jobs, United 
        States workers will increasingly need to enhance their skills 
        on a continuing, lifelong basis through such a workforce 
        preparation and development system.
            (3) Reports from the Comptroller General of the United 
        States have identified 163 different Federal programs, totaling 
        $20,000,000,000, and administered by 14 different Federal 
        agencies, that offer some form of education, job training, or 
        employment assistance to youths and adults.
            (4) Such reports point to the many problems of duplication 
        and fragmentation that exist within the varied Federal 
        workforce preparation and development programs, including--
                    (A) the additional costs of administering 
                overlapping workforce preparation and development 
                programs at the Federal, State, and local levels which 
                divert scarce resources that could be better used to 
                assist all individuals in preparing for and entering 
                the workforce; and
                    (B) conflicting eligibility requirements, annual 
                budgeting and operating cycles, planning and reporting 
                requirements, and performance measurement systems which 
                serve as barriers to the integration of Federal 
                workforce preparation and development programs and 
                result in an inefficient use of resources.
            (5) Major goals of any reform of the Federal workforce 
        preparation and development system must be--
                    (A) to streamline and consolidate individual 
                workforce preparation and development programs, 
                eliminating unnecessary duplication and fragmentation 
                in such programs;
                    (B) to provide maximum authority and responsibility 
                to States and local communities for operation of State 
                and local workforce preparation and development 
                programs;
                    (C) to stress private sector partnerships and 
                encourage increased leadership and responsibility on 
                the part of the private sector through the use of 
                creative incentives for investment in workforce 
                training (which may include reduced regulatory burdens, 
                tax incentives, and employer loans for the training of 
                incumbent workers);
                    (D) to establish a system which is market-driven, 
                accountable, provides customer choice and easy access 
                to services, and reinforces individual responsibility;
                    (E) to improve education, literacy, job training, 
                rehabilitation, and employment assistance programs in 
                the United States, encouraging lifelong learning and 
                skills upgrading through a seamless system connecting 
                elementary, secondary, postsecondary, rehabilitation, 
                adult, and work-based training and education; and
                    (F) to establish a comprehensive, integrated labor 
                market information system to ensure that workforce 
                preparation and 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, occupations in demand, 
                skill requirements for such occupations, and the 
                performance of education, rehabilitation, and training 
                providers, are available to job seekers, employers, 
                teachers, students, and decision-makers.
            (6) Early exposure to career opportunities can enrich the 
        education experience and provide incentives for students to 
        stay in school and achieve higher levels of learning.
            (7) Millions of families in the United States are trapped 
        in a cycle of poverty, dependency, and inadequate education 
        that is linked to illiteracy and low educational achievement, 
        for which adult education and family literacy programs have 
        been shown to be successful in improving the educational 
        attainment and job skills of parents and their children, 
        contributing to reductions in crime, welfare dependency, and 
        enhancing employment opportunities for such individuals.
            (8) In recent years, a number of innovative States and 
        local communities have begun successful efforts to integrate 
        Federal workforce preparation and development programs through 
        one-stop service delivery systems, however, without exception, 
        such States and communities have experienced numerous Federal 
        barriers to such program integration.
            (9) An extremely high percentage of Americans with 
        disabilities are unemployed, and need access to high quality, 
        specialized rehabilitation services that lead to employment, 
        independence, and full participation in the mainstream of life 
        in America.
    (b) Purpose.--The purpose of this Act is to transform the vast 
array of Federal workforce development and literacy programs from a 
collection of fragmented and duplicative categorical programs into a 
streamlined, comprehensive, coherent, high-quality, cost-effective, 
market-based, and accountable Federal workforce development and 
literacy system that is designed to meet the education, employment, and 
training needs of the workforce and the competitiveness needs of 
employers of the United States, both today and in the future.

SEC. 4. AUTHORIZATIONS OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out titles II 
through IV such sums as may be necessary for each of the fiscal years 
1997, 1998, 1999, 2000, 2001, and 2002.

SEC. 5. DEFINITIONS.

    For purposes of this Act:
            (1) Adult.--The term ``adult'' means an individual who is 
        16 years of age, or beyond the age of compulsory school 
        attendance under State law, and who is not enrolled or required 
        to be enrolled in secondary school.
            (2) Adult education.--The term ``adult education'' means 
        services or instruction below the postsecondary level for 
        adults--
                    (A) who are not enrolled in secondary school;
                    (B) who lack sufficient mastery of basic 
                educational skills to enable them to function 
                effectively in society or who do not have a certificate 
                of graduation from a school providing secondary 
                education and who have not achieved an equivalent level 
                of education;
                    (C) who are not currently required to be enrolled 
                in school; and
                    (D) whose lack of mastery of basic skills results 
                in an inability to speak, read, or write the English 
                language which constitutes a substantial impairment of 
                their ability to get or retain employment commensurate 
                with their real ability, and thus are in need of 
                programs to help eliminate such inability and raise the 
                level of education of such individuals with a view to 
                making them less likely to become dependent on others.
            (3) Area vocational education school.--The term ``area 
        vocational education school'' means--
                    (A) a specialized high school used exclusively or 
                principally for the provision of vocational education 
                to individuals who are available for study in 
                preparation for entering the labor market;
                    (B) the department of a high school exclusively or 
                principally used for providing vocational education in 
                not less than 5 different occupational fields to 
                individuals who are available for study in preparation 
                for entering the labor market;
                    (C) a technical institute or vocational school used 
                exclusively or principally for the provision of 
                vocational education to individuals who have completed 
                or left high school and who are available for study in 
                preparation for entering the labor market; or
                    (D) the department or division of a junior college, 
                community college or university operating under the 
                policies of the State board and which provides 
                vocational education in not less than 5 different 
                occupational fields leading to immediate employment but 
                not necessarily leading to a baccalaureate degree, if, 
                in the case of a school, department, or division 
                described in subparagraph (C) or this subparagraph, it 
                admits as regular students both individuals who have 
                completed high school and individuals who have left 
                high school.
            (4) At-risk youth.--The term ``at-risk youth'' means in-
        school youth who are determined to be at risk of dropping out 
        of school prior to receipt of a high school diploma, out-of-
        school youth, and school dropouts.
            (5) Career exploration and guidance counseling.--The term 
        ``career exploration and guidance counseling'' means programs--
                    (A) which pertain to the body of subject matter and 
                related techniques and methods organized for the 
                development in individuals of career awareness, career 
                planning, career decisionmaking, placement skills, and 
                knowledge and understanding of local, State, and 
                national occupational, educational, and labor market 
                needs, trends, and opportunities;
                    (B) which assist such individuals in making and 
                implementing informed educational and occupational 
                choices; and
                    (C) that begin not later than the sixth grade.
            (6) Case management.--The term ``case management'' means 
        the provision of a client-centered approach in the delivery of 
        services designed to--
                    (A) prepare and coordinate comprehensive employment 
                plans, such as service strategies for participants, to 
                ensure access to necessary training and supportive 
                services, using where feasible, computer-based 
                technologies; and
                    (B) provide job and career counseling during 
                program participation and after job placement.
            (7) Chief elected official.--The term ``chief elected 
        official'' means the chief elected executive officer of a unit 
        of general local government in a workforce development area.
            (8) Community-based organization.--The term ``community-
        based organization'' means a private nonprofit organization 
        that is representative of a community or significant segments 
        of a community
         that provides education, vocational rehabilitation, job 
training, or internship services and programs.
            (9) Dislocated workers.--The term ``dislocated workers'' 
        means individuals who--
                    (A) have been terminated or laid off or who have 
                received a notice of termination or layoff from 
                employment, are eligible for or have exhausted their 
                entitlement to unemployment compensation, and are 
                unlikely to return to their previous industry or 
                occupation;
                    (B) have been terminated or have received a notice 
                of termination of employment, as a result of any 
                permanent closure of or any substantial layoff at a 
                plant, facility, or enterprise;
                    (C) are long-term unemployed and have limited 
                opportunities for employment or reemployment in the 
                same or a similar occupation in the area in which such 
                individuals reside, including older individuals who may 
                have substantial barriers to employment by reason of 
                age; or
                    (D) were self-employed (including farmers and 
                ranchers) who are unemployed as a result of general 
                economic conditions in the community in which they 
                reside or because of natural disasters, subject to 
                regulations prescribed by the Secretary.
            (10) Earnings.--The term ``earnings'' means gross hourly 
        wages before any deduction, plus the estimated hourly value of 
        bonuses, tips, gratuities, commissions, and overtime pay either 
        expected or received. In the case of individuals in subsidized 
        employment, total hourly earnings include any wage subsidy paid 
        to the individual.
            (11) Economic development agencies.--The term ``economic 
        development agencies'' means State and local planning and 
        zoning commissions or boards, community development agencies, 
        and other State and local agencies and institutions responsible 
        for regulating, promoting, or assisting in State and local 
        economic development.
            (12) Economically disadvantaged.--The term ``economically 
        disadvantaged'' means an individual who--
                    (A) receives, or is a member of a family which 
                receives, cash welfare payments under a Federal, State, 
                or local welfare program;
                    (B) has, or is a member of a family which has, 
                received a total family income for the 6-month period 
                prior to application for the program involved 
                (exclusive of unemployment compensation, child support 
                payments, and welfare payments) which, in relation to 
                family size, was not in excess of the higher of--
                            (i) the official poverty line (as defined 
                        by the Office of Management and Budget, and 
                        revised annually in accordance with section 
                        673(2) of the Omnibus Budget Reconciliation Act 
                        of 1981 (42 U.S.C. 9902(2)), or
                            (ii) 70 percent of the lower living 
                        standard income level;
                    (C) is receiving (or has been determined within the 
                6-month period prior to the application for the program 
                involved to be eligible to receive) food stamps 
                pursuant to the Food Stamp Act of 1977;
                    (D) qualifies as a homeless individual under 
                subsections (a) and (c) of section 103 of the Stewart 
                B. McKinney Homeless Assistance Act;
                    (E) is a foster child on behalf of whom State or 
                local government payments are made;
                    (F) in cases permitted by regulations of the 
                Secretary, is an individual with a disability whose own 
                income meets the requirements of subparagraph (A) or 
                (B), but who is a member of a family whose income does 
                not meet such requirements; or
                    (G) is an individual meeting appropriate criteria 
                approved by a State.
            (13) Employed.--The term ``employed'' means an individual 
        who is currently--
                    (A) a paid employee;
                    (B) works in his or her own business, profession, 
                or farm;
                    (C) works 15 hours or more per week as an unpaid 
                worker in an enterprise operated by a family member; or 
                is one who is not working, but has a job or business 
                from which he or she is temporarily absent due to 
                illness, bad weather, vacation, labor-management 
                dispute, or personal reasons; or
                    (D) is active duty military.
            (14) English literacy program.--The term ``English literacy 
        program'' means a program of instruction designed to help 
        limited English proficient adults, out-of-school youths, or 
        both, achieve full competence in the English language.
            (15) Excess number.--The term ``excess number'' means, with 
        respect to the excess number of unemployed individuals within a 
        State, the number that represents the number of unemployed 
        individuals in excess of 4.5 percent of the civilian labor 
        force in the State, or the number that represents the number of 
        unemployed individuals in excess of 4.5 percent of the civilian 
        labor force in areas of substantial unemployment in such State.
            (16) Governor.--The term ``Governor'' means the chief 
        executive of any State.
            (17) Individual of limited english proficiency.--The term 
        ``individual of limited English proficiency'' means an adult or 
        out-of-school youth who has limited ability in speaking, 
        reading, writing, or understanding the English language and--
                    (A) whose native language is a language other than 
                English; or
                    (B) who lives in a family or community environment 
                where a language other than English is the dominant 
                language.
            (18) Individuals with disabilities.--The term ``individuals 
        with disabilities'' has the meaning given such term in the 
        Vocational Rehabilitation Act of 1973.
            (19) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given such 
        term in section 481 of the Higher Education Act of 1965.
            (20) Intermediate educational agency.--The term 
        ``intermediate educational agency'' means a combination of 
        school districts or counties (as defined in section 14101 of 
        the Elementary and Secondary Education Act of 1965) that is 
        recognized in a State as an administrative agency for such 
        State's vocational or technical education schools or for 
        vocational programs within its public elementary or secondary 
        schools. Such term includes any other public institution or 
        agency having administrative control and direction over a 
        public elementary or secondary school.
            (21) Job search assistance.--The term ``job search 
        assistance'' means a service that helps a job-ready individual 
        seek, locate, apply for, and obtain employment. Such services 
        may include, but are not limited to, job-finding skills, 
        orientation to the labor market, resume preparation assistance, 
        job finding clubs, job search workshops, vocational 
        exploration, and other services.
            (22) Labor market area.--The term ``labor market area'' 
        means an economically integrated geographic area within which 
        individuals can reside and find employment within a reasonable 
        distance or can readily change employment without changing 
        their place of residence. Such areas shall be identified in 
        accordance with criteria used by the Bureau of Labor Statistics 
        of the Department of Labor in defining such areas or similar 
        criteria established by a Governor.
            (23) Literacy.--The term ``literacy'' means an individual's 
        ability to read, write, and speak in English, and compute and 
        solve problems, at levels of proficiency necessary--
                    (A) to function on the job, in the individual's 
                family and in society;
                    (B) to achieve the individual's goals; and
                    (C) to develop the individual's knowledge 
                potential.
            (24) Local educational agency.--The term ``local 
        educational agency'' has the same meaning given such term in 
        section 14101 of the Elementary and Secondary Education Act of 
        1965.
            (25) Native americans.--The term ``Native Americans'' means 
        individuals eligible for education, employment, and job 
        training assistance under title III of this Act.
            (26) On-the-job training.--The term ``on-the-job training'' 
        means training in the public or private sector that is provided 
        to a paid employee while he or she is engaged in productive 
        work that--
                    (A) provides knowledge or skills essential to the 
                full and adequate performance of the job;
                    (B) provides reimbursement to employers, up to 50 
                percent of the participant's wage rate, for the costs 
                of providing training and additional supervision; and
                    (C) is based on the Occupational Employment 
                Statistics Program Dictionary.
            (27) Out-of-school youth.--The term ``out-of-school youth'' 
        means a youth who is no longer attending any school and who has 
        not received a secondary school diploma or a certificate from a 
        program of equivalency for such a diploma.
            (28) Postsecondary educational institution.--The term 
        ``postsecondary educational institution'' means an institution 
        of higher education (as such term is defined in section 481 of 
        the Higher Education Act of 1965) which continues to meet the
         eligibility and certification requirements under title IV of 
such Act (20 U.S.C. 1070 et seq.).
            (29) Preemployment skills training; job readiness skills 
        training.--The terms ``preemployment skills training'' and 
        ``job readiness skills training'' mean training that helps 
        prepare individuals for work by assuring that they are familiar 
        with general workplace expectations and exhibit work behavior 
        and attitudes necessary to compete successfully in the job 
        market.
            (30) Public assistance.--The term ``public assistance'' 
        means Federal, State, or local government cash payments for 
        which eligibility is determined by a needs or income test.
            (31) Rapid response.--The term ``rapid response'' means 
        assistance that is directly provided by the State, or by local 
        grantees with funds provided by the State, in the case of mass 
        layoffs or plant closures, that establishes on-site contact 
        with employer and employee representatives within a short 
        period of time (preferably 48 hours or less) after becoming 
        aware of a current or projected permanent closure or 
        substantial layoff in order to--
                    (A) provide information on and facilitate access to 
                available public programs and services for workers 
                losing jobs as a result of such layoff or closure;
                    (B) provide emergency assistance adapted to the 
                particular closure or layoff;
                    (C) promote the formation of labor-management 
                committees, where appropriate;
                    (D) collect information related to economic 
                dislocation and available resources within the State 
                for dislocated workers;
                    (E) provide or obtain appropriate financial and 
                technical advice and liaison with economic development 
                agencies and other organizations to assist in efforts 
                to avert worker dislocation; and
                    (F) assist the local community in developing its 
                own coordinated response and in obtaining access to 
                State economic development assistance.
            (32) Registered apprenticeship.--The term ``registered 
        apprenticeship'' means a program registered by the Bureau of 
        Apprenticeship and Training in the United States Department of 
        Labor, or a State Apprenticeship Agency recognized and approved 
        by the Bureau of Apprenticeship and Training as the appropriate 
        body for State registration or approval of local apprenticeship 
        programs and agreements.
            (33) School dropout.--The term ``school dropout'' means a 
        youth who is no longer attending any school and who has not 
        received a secondary school diploma or a certificate from a 
        program of equivalency for such a diploma.
            (34) Skill certificate.--The term ``skill certificate'' 
        means a portable, industry-recognized credential issued by 
        programs authorized under this Act, that certifies that an 
        individual has mastered skills at levels that are at least as 
        challenging as skill standards endorsed by the National Skill 
        Standards Board, except that until such skill standards are 
        developed, the term ``skill certificate'' means a credential 
        issued under a process determined by the State.
            (35) State.--The term ``State'' means any of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the Virgin Islands, American Samoa, Guam, and the 
        Commonwealth of the Northern Mariana Islands.
            (36) State educational agency.--The term ``State 
        educational agency'' has the meaning given such term in section 
        14101 of the Elementary and Secondary Education Act of 1965.
            (37) State library administrative agency.--The term ``State 
        library administrative agency'' means the official agency of a 
        State charged by the law of the State with the extension and 
        development of public library services throughout the State.
            (38) Supportive services.--The term ``supportive services'' 
        means services which are necessary to enable an individual 
        eligible for training under this Act, but who cannot afford to 
        pay for such services, to participate in a training program 
        funded under this Act. Such supportive services may include 
        transportation, individual and family counseling, special 
        services and materials for individuals with disabilities, child 
        care and dependent care, meals, temporary shelter, financial 
        counseling, needs-based payments, and other reasonable expenses 
        required for participation in a training program. Such services 
        may be provided in-kind or through cash assistance, except that 
        such services will be provided with funds provided under this 
        Act only after alternative funding sources specifically 
        designated for such services have been exhausted.
            (39) Unemployed.--The term ``unemployed'' refers to an 
        individual who is not employed, who is available for work, and 
        who has made specific efforts to find a job within the prior 4 
        weeks. Included as unemployed are individuals who are not 
        working, are available for work, and are waiting to be called 
        back to a job from which they have been laid off.
            (40) Unit of general local government.--The term ``unit of 
        general local government'' means any general purpose political 
        subdivision of a State which has the power to levy taxes and 
        spend funds, as well as general corporate and police powers.
            (41) Veteran.--The term ``veteran'' means an individual who 
        served in the active military, naval, or air service, and who 
        was discharged or released therefrom under conditions other 
        than dishonorable discharge.
            (42) Work experience.--The term ``work experience'' means a 
        time-limited work activity that provides an individual with the 
        opportunity to acquire the general skills and knowledge 
        necessary to obtain employment.
            (43) Workplace mentor.--The term ``workplace mentor'' means 
        an employee or other individual, approved by the employer at a 
        workplace, who possesses the skills and knowledge to be 
        mastered by a student or program participant, and who 
        instructs, critiques the performance, and challenges the 
        student or program participant to perform well, and works in 
        consultation with classroom teachers, training providers, and 
        the employer of the student or program participant.
            (44) Youth.--The term ``youth'' means an individual between 
        the ages of 14 and 24.
             TITLE I--WORKFORCE DEVELOPMENT INFRASTRUCTURE

SEC. 101. PURPOSE OF TITLE.

    The purpose of this title is to provide for the establishment of an 
infrastructure within the States of a system on which to build a 
comprehensive system of workforce development and literacy.

              Subtitle A--State and Local Responsibilities

SEC. 102. STATE REQUIREMENTS.

    (a) In General.--For fiscal year 1997 and subsequent fiscal years, 
a State that desires to receive a grant under one or more of the 
programs specified in subsection (b) shall--
            (1) establish a collaborative process, pursuant to section 
        103;
            (2) develop a State workforce development and literacy 
        plan, pursuant to section 104; and
            (3) otherwise comply with the requirements of this Act.
    (b) Workforce Development and Literacy Programs.--
            (1) In general.--The programs referred to in subsection (a) 
        are the following:
                    (A) The program under title II, the Youth Workforce 
                Preparation and Development Consolidation Grant.
                    (B) The program under title III, the Adult 
                Employment and Training Consolidation Grant.
                    (C) The program under title IV, the Adult 
                Education, Family Literacy, and Library Technology 
                Consolidation Grant.
                    (D) The program amended by subtitle A of title V 
                (relating to title I of the Rehabilitation Act of 
                1973).
            (2) Definition.--For purposes of this title, the term 
        ``Workforce Development and Literacy programs'' means the 
        programs specified in paragraph (1).
SEC. 103. COLLABORATIVE PROCESS REGARDING STATE SYSTEM.

    (a) In General.--The Governor of a State that desires to receive a 
grant under one or more of the programs specified in section 102(b) 
shall certify to the Secretary of Education and the Secretary of Labor 
that a collaborative process, as described in subsection (b), has been 
used in complying with the applicable provisions of this Act.
    (b) Collaborative Process.--The collaborative process referred to 
in subsection (a) is a process for making decisions which includes as 
participants, at a minimum, the Governor and--
            (1) the lead State agency official or officials for--
                    (A) the State educational agency;
                    (B) the State agency responsible for economic 
                development;
                    (C) the State agency responsible for employment;
                    (D) the State agency responsible for job training;
                    (E) the State agency responsible for postsecondary 
                education;
                    (F) the State agency responsible for vocational 
                education;
                    (G) the State agency responsible for vocational 
                rehabilitation, and where applicable, the State agency 
                providing vocational rehabilitation services for the 
                blind;
                    (H) the State agency responsible for adult 
                education and literacy; and
                    (I) the State Library Administrative Agency; and
            (2) representatives of the following (which representatives 
        are appointed by the Governor)--
                    (A) business and industry;
                    (B) locally elected officials;
                    (C) local educational agencies;
                    (D) postsecondary institutions; and
                    (E) the State rehabilitation advisory council.
    (c) Rule of Construction.--With respect to compliance with 
subsection (b), a State may use any existing State process (including 
any council or similar entity) that meets the requirements of such 
subsection.

SEC. 104. CONSOLIDATED STATE WORKFORCE DEVELOPMENT AND LITERACY PLAN.

    (a) In General.--The Governor of a State that desires to receive a 
grant under one or more of the programs specified in section 102(b) 
shall submit a State workforce development and literacy plan that meets 
the requirements of this section to--
            (1) the Secretary of Education; and
            (2) the Secretary of Labor.
    (b) Contents.--A State workforce development and literacy plan 
shall include the following:
            (1) A description of the collaborative process under 
        section 103 used in developing the plan.
            (2) A statement of the goals of the State workforce 
        development and literacy system, that includes--
                    (A) an assessment of the needs of the State with 
                regard to current and projected demands for workers by 
                occupation, the skills and education levels of the 
                workforce, the skill and economic development needs of 
                the State, and an assessment of the type and 
                availability of workforce development, adult education, 
                and literacy programs in the State;
                    (B) the identification of progress indicators, 
                based on the performance measures described in titles 
                II through V and a model of continuous improvement, 
                that the State will use to measure progress made by the 
                State, local workforce development boards, and local 
                recipients of financial assistance under this Act in 
                meeting such goals; and
                    (C) a description of how performance measures are 
                consistent across the 4 grant programs established in 
                titles II through V.
            (3) A description of how the State has complied, or will 
        comply, with the provisions of sections 105 through 109.
            (4) A description of how a State will participate in the 
        National Labor Market Information system pursuant to subtitle 
        B.
            (5) Any information required to be included in the plan 
        under any of titles II through V (in the case of a State that 
        desires to receive a grant under any such title).
            (6) A description of the measures that will be taken by the 
        State to ensure coordination and consistency and avoid 
        duplication among programs receiving assistance under this Act, 
        including a description of common data collection and reporting 
        processes (including the establishment of a common management 
        information system) across such programs.
            (7) A description of the process used by the State to 
        provide an opportunity for public comment,
         and input into the development of the plan, prior to 
submission of the plan.
            (8) Assurances that the State will provide for fiscal 
        control and fund accounting procedures that may be necessary to 
        ensure the proper disbursement of, and accounting for, funds 
        paid to the State under this Act.
    (c) Authority of Governor.--If, after a reasonable effort, a 
Governor is unable to obtain agreement through the collaborative 
process described in subsection (b)(1), the Governor shall have final 
authority to make decisions and submit a plan for the design of a 
comprehensive system of workforce development and literacy for the 
State under subsection (a).
    (d) Modifications to Plan.--A plan submitted by a State in 
accordance with this section remains in effect until the State submits 
to the Secretary such modifications as the State determines necessary. 
This section applies to the modifications to the same extent and in the 
same manner as this section applies to the original plan.
    (e) Allocation of Responsibilities of Secretaries.--The Secretary 
of Education and the Secretary of Labor shall collaborate in 
establishing and using a common procedure in making determinations 
regarding compliance by the States with the requirements established in 
this title.

SEC. 105. DESIGNATION OF STATE ADMINISTRATIVE AGENT.

    (a) Designation.--The Governor of a State that desires to receive a 
grant under one or more of the programs specified in section 102(b) 
shall, through the collaborative process described in section 103, 
designate a State administrative agent for each grant requiring such an 
agent under this Act. The Governor may designate the same 
administrative agent to be responsible for more than one such grant.
    (b) Duties.--An administrative agent designated under subsection 
(a) shall administer funds received under this Act, including receipt, 
review, processing, monitoring, progress and financial report review, 
technical assistance, grant adjustments, accounting, auditing, and fund 
disbursements.

SEC. 106. ESTABLISHMENT OF WORKFORCE DEVELOPMENT AREAS.

    (a) Identification of Areas.--The Governor of a State that desires 
to receive a grant under one or more of the programs specified in 
section 102(b) shall, through the collaborative process established 
under section 103 and after consultation with locally elected 
officials, and after consideration of comments received through the 
public participation process as described in the State plan, shall 
publish a proposed designation of local workforce development areas 
within the State. Such areas shall be designated taking into 
consideration the following:
            (1) Existing labor market areas.
            (2) Units of general local government.
            (3) Geographic areas served by local educational agencies 
        and intermediate educational agencies.
            (4) Geographic areas served by postsecondary institutions 
        and area vocational education schools.
            (5) Service delivery areas established under section 101 of 
        the Job Training Partnership Act (29 U.S.C. 1511) (as such Act 
        was in effect on the day before the date of the enactment of 
        this Act).
            (6) The distance that individuals will need to travel to 
        receive services from one-stop career centers.

SEC. 107. PROVISIONS REGARDING LOCAL WORKFORCE DEVELOPMENT BOARDS.

    (a) In General.--The Governor of a State that desires to receive a 
grant under one or more of the programs specified in section 102(b) 
shall ensure the establishment
 of a local workforce development board in each local workforce 
development area within the State.
    (b) State Criteria.--The Governor, through the collaborative 
process described under section 103, shall establish criteria for use 
by locally elected officials in the workforce development area, in the 
selection of members of local workforce development boards, in 
accordance with requirements prescribed under subsections (c) and (d).
    (c) Representation Requirement.--Such criteria shall require, at a 
minimum, that a local workforce development board consist of--
            (1) a majority of members who are representatives of 
        business and industry, including individuals who are owners of 
        businesses, chief executives or chief operating officers of 
        private business, and other business executives with optimum 
        policymaking authority in local businesses, selected from among 
        a list of nominees submitted by local business organizations 
        and trade associations; and
            (2) an individual or individuals with disabilities, or 
        their representatives.
    (d) Establishment of Board.--
            (1) Selection of board members.--
                    (A) Single unit of local government in area.--In 
                the case of a workforce development area that is 
                comprised of only one unit of general local government, 
                the chief elected official of such unit shall select 
                the members of the local workforce development board 
                for such area, in accordance with the State criteria 
                developed pursuant to subsection (b).
                    (B) Multiple units in area.--In the case of a 
                workforce development area that is comprised of more 
                than one unit of general local government, the chief 
                elected official of each such unit shall select the 
                members of the local workforce development board for 
                such area in accordance with an agreement entered into 
                by such officials, in accordance with the State 
                criteria developed under subsection (b).
            (2) Certification.--The Governor shall certify one local 
        workforce development board for each workforce development area 
        by not later than October 1, 1996.
    (e) Duties of Local Workforce Development Board.--
            (1) Local workforce development plan.--Each local workforce 
        development board shall develop a biennial strategic plan and 
        provide policy guidance with respect to workforce development 
        programs operated within their respective workforce development 
        areas. Such strategic plan shall be consistent with the State's 
        collaborative workforce development and literacy plan and shall 
        be approved by the appropriate chief elected official or 
        officials. Such local plan shall include the following:
                    (A) Both short-term and long-term goals, and 
                related strategies, to ensure that workforce 
                preparation and development programs, including 
                programs established pursuant to this Act, title I of 
                the Rehabilitation Act of 1973, and the Wagner Peyser 
                Act, contribute to a coherent workforce development 
                system in the workforce development area.
                    (B) A description of the performance measures to be 
                used by the local workforce development board for 
                measuring the performance of local service providers 
                under chapter 2 of title II, title III, and title I of 
                the Rehabilitation Act of 1973, and the performance of 
                one-stop career center operators, with whom the Board 
                contracts.
                    (C) A description of the local one-stop career 
                center system to be established in the workforce 
                development area, including--
                            (i) a description of the process the local 
                        workforce development board will use to 
                        designate or establish career centers which 
                        ensures that the most effective and efficient 
                        service providers are chosen; and
                            (ii) an identification of the roles of 
                        individual workforce development programs, 
                        including programs authorized by the Wagner 
                        Peyser Act, and the process for determining the 
                        financial contribution that such programs will 
                        make in the operation of the career centers.
                    (D) A description of strategies the local workforce 
                development board will undertake to fully involve local 
                employers, local educational agencies and postsecondary 
                education institutions, adult education and literacy 
                providers, local service providers, and other 
                consumers, including individuals with disabilities, in 
                the development of the workforce development system.
                    (E) Such other information as requested by the 
                State.
            (2) Identification of occupations in demand and training 
        needs.--The local workforce development board shall use 
        available labor market information and other appropriate 
        methods in order to identify and assess the needs of the 
        workforce development area with regard to--
                    (A) current and projected demand for workers by 
                occupation;
                    (B) skill levels of the local workforce and the 
                needs of business and industry for a skilled workforce;
                    (C) economic development needs of the area; and
                    (D) the type and availability of workforce 
                preparation and development programs in the area.
        Such information shall be used to develop the goals of, and 
        activities provided by the workforce development programs in 
        the local area.
            (3) Budget and program oversight.--
                    (A) Budgeting.--
                            (i) The local workforce development board, 
                        working through the State administrative agent 
                        designated pursuant to section 105, shall 
                        develop a budget for the purpose of carrying 
                        out local programs established under chapter 2 
                        of title II, title III, and title I of the 
                        Rehabilitation Act of 1973, and for one-stop 
                        career center systems established or designated 
                        under section 108.
                            (ii) Such budget shall be subject to the 
                        approval of the appropriate chief elected 
                        official or officials in the workforce 
                        development area.
                    (B) Program oversight.--The local workforce 
                development board, in partnership with the chief 
                elected official or officials in the workforce 
                development area, shall conduct oversight of the 
                workforce development programs listed in subparagraph 
                (A), of one-stop career centers established under this 
                title, and of programs established under the Wagner 
                Peyser Act.
            (4) Administration.--
                    (A) Fiscal agent.--
                            (i) The local workforce development board 
                        may receive and disburse funds made available 
                        for carrying out programs authorized under 
                        chapter 2 of title II, title III, and title I 
                        of the Rehabilitation Act of 1973 of this Act, 
                        or to designate a fiscal agent (which may 
                        include the State through a mutual agreement 
                        between the local board and the State), for the 
                        purpose of disbursement of funds to one-stop 
                        centers and other service providers, as 
                        designated by the local workforce development 
                        board.
                            (ii) The Board may employ its own staff, 
                        independent of local programs and service 
                        providers.
                    (B) Limitation.--The workforce development board 
                may not operate programs established under this Act.
                    (C) Conflict of interest.--No member of a workforce 
                development board may 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.
            (5) Other.--Each local workforce development board shall 
        carry out such other duties as determined to be appropriate by 
        the Governor and the individuals and entities described in 
        section 103, through the collaborative process described in the 
        State plan.
SEC. 108. ESTABLISHMENT OF ONE-STOP CAREER CENTER SYSTEMS.

    (a) In General.--The Governor of a State that desires to receive a 
grant under one or more of the programs specified in section 102(b) 
shall ensure that each local workforce development board shall 
establish or designate a one-stop career center system in the workforce 
development area of such board, consistent with criteria established 
under subsection (b), and not later than July 1, 1997.
    (b) State Criteria.--The Governor, through the collaborative 
process described under section 103, shall establish statewide criteria 
for use by local workforce development boards in the designation or 
establishment of one-stop career center systems to ensure that the most 
effective and efficient service providers are chosen. Such criteria 
shall be consistent with the requirements prescribed under subsection 
(c).
    (c) One-Stop Career Center System Requirements.--At a minimum, one-
stop career center systems shall include--
            (1) common intake;
            (2) preliminary assessment;
            (3) integrated job development and placement for multiple 
        workforce development programs;
            (4) unified and linked computer systems, including the 
        availability of labor market information as described under 
        subtitle B, and linkages through uniform management information 
        systems; and
            (5) to the extent practicable, at least one physical, co-
        located site which provides comprehensive and fully integrated 
        workforce development services to any individual seeking such 
        services.
Local workforce development areas are encouraged to establish a network 
of comprehensive and fully-integrated co-located one-stop career 
centers, combined with multiple affiliated sites that are linked 
through electronic and technological access points.
    (d) Common Access.--Information pertaining to the labor market 
which is compiled pursuant to the Wagner Peyser Act, as described in 
subtitle B of this title, shall be available, to the extent 
practicable, through integrated electronic networks, at all one-stop 
career center systems.
    (e) Eligibility for Designation.--Any entity or consortium of 
entities located in the workforce development area may be designated by 
the local workforce development board to operate a one-stop career 
center or to participate in a one-stop career center system. Such 
entities may include the following:
            (1) Institutions of higher education.
            (2) Local educational agencies.
            (3) Area vocational education schools.
            (4) Local employment service offices, established under the 
        Wagner Peyser Act.
            (5) Private nonprofit organizations.
            (6) Private for-profit entities.
            (7) Agencies of local governments.
            (8) Other interested organizations and entities of 
        demonstrated effectiveness, consistent with State criteria 
        established pursuant to subsection (b).
    (f) Duties.--Each one-stop career center shall carry out the 
following duties:
            (1) Provision of core services.--A center shall make 
        available the following information and core services to 
        individuals on a universal basis, in the workforce development 
        area in which such center is located:
                    (A) Outreach and intake for services provided under 
                chapter 2 of title II, title III, title IV, and title I 
                of the Rehabilitation Act of 1973.
                    (B) A preliminary assessment of the skill levels 
                and the need for services under chapter 2 of title II, 
                title III, title IV, and title I of the Rehabilitation 
                Act of 1973 of individuals, which may include such 
                factors as basic skills, occupational skills, career 
                development skills, prior work experience, 
                employability, interests, aptitudes, vocational 
                rehabilitation needs, and supportive service needs.
                    (C) Information relating to local and State, and if 
                appropriate, to regional or national, occupations in 
                demand and skill requirements for such occupations.
                    (D) Information relating to youth services, 
                including information on at-risk youth workforce 
                development programs authorized under title II, on 
                school-to-work opportunities, and on youth 
                apprenticeship opportunities.
                    (E) Career counseling and career planning based on 
                a preliminary assessment of the individual.
                    (F) Employability development services, which may 
                include assistance in the preparation of a resume, job 
                interview techniques, and work deportment.
                    (G) Information related to vocational 
                rehabilitation services, as provided for in title I of 
                the Rehabilitation Act of 1973.
                    (H) Information relating to federally funded 
                education and job training programs (including 
                registered apprenticeships), and student aid programs, 
                including the eligibility requirements of and services 
                provided by such programs.
                    (I) Information on, and assistance in accessing 
                referral to additional services through programs 
                providing adult education and literacy services, 
                vocational rehabilitation, workforce preparation and 
                development, and supportive services, including those 
                programs authorized in titles II through V, available 
                in the workforce development area.
                    (J) Information on the extent to which the services 
                provided under title II through V meet or exceed the 
                performance standards established under section 108, 
                and other information as developed in the workforce 
                development areas consumer-feedback process.
                    (K) Information on industry-recognized skill 
                standards and assessments.
                    (L) Job listings for local labor market 
                opportunities, and job search assistance.
                    (M) Acceptance of applications for unemployment 
                compensation.
                    (N) Other appropriate activities to assist 
                individuals into employment.
            (2) Distribution of vouchers.--A center shall serve as the 
        point of distribution of vouchers for education, training, and 
        vocational rehabilitation services to eligible individuals in 
        accordance with section 109.

SEC. 109. CERTIFICATION OF EDUCATION, TRAINING, AND VOCATIONAL 
              REHABILITATION SERVICE PROVIDERS.

    (a) Eligibility Requirements.--A provider of education and training 
services shall be eligible to receive funds under this title, through 
the receipt of vouchers, or otherwise, if such provider--
            (1) is either--
                    (A) eligible to participate in title IV of the 
                Higher Education Act of 1965, or
                    (B) determined to be eligible under the procedures 
                described in subsection (b); and
            (2) provides the performance-based information required 
        pursuant to subsection (c).
    (b) Alternative Eligibility Procedure.--(1) The Governor shall 
establish an alternative eligibility procedure for providers of 
education and training services in any State desiring to receive funds 
under titles III and V, but that are not eligible to participate in 
title IV of the Higher Education Act of 1965. Such procedure shall 
establish minimum acceptable levels of performance for such providers, 
and shall utilize local workforce development boards, for the 
certification of providers of education, training, and vocational 
rehabilitation services.
    (2) Notwithstanding paragraph (1), if the participation of an 
institution of higher education in any of the programs under such title 
of such Act is terminated, such institution shall not be eligible to 
receive funds under this Act for a period of two years.
    (c) Performance-Based Information.--The State shall identify 
performance-based information that is to be submitted by providers of 
services desiring to be eligible under this section. Such information 
may include information relating to--
            (1) the percentage of students completing the programs 
        conducted by the provider;
            (2) the rates of licensure of graduates of the programs 
        conducted by the provider;
            (3) the percentage of graduates of the programs meeting 
        skill standards and certification requirements endorsed by the 
        National Skill Standards Board established under the Goals 
        2000: Educate America Act;
            (4) the rates of placement and retention in employment, and 
        earnings of the graduates of the programs conducted by the 
        provider;
            (5) the percentage of students who obtained employment in 
        an occupation related to the program conducted by the provider;
            (6) the warranties or guarantees provided by such provider 
        relating to the skill levels or employment to be attained by 
        students; and
            (7) other information for providers of services under title 
        I of the Rehabilitation Act of 1973 that reflects the goal of 
        serving individuals with the most severe disabilities.
    (d) Administration.--
            (1) State agency.--The Governor shall designate a State 
        agency to collect, verify, and disseminate the performance-
        based information submitted pursuant to subsection (c).
            (2) Application.--A provider of education and training 
        services that desires to be eligible to receive funds under 
        this title shall submit the information required under 
        subsection (c) to the State agency designated under paragraph 
        (1) at such time and in such form as such State agency may 
        require.
            (3) List of eligible providers.--The State agency shall 
        compile a list of eligible providers, accompanied by the 
        performance-based information submitted, and disseminate such 
        list and information to the local workforce development boards 
        within the State.
            (4) Accuracy of information.--
                    (A) In general.--If the State agency determines 
                that information concerning a provider is inaccurate, 
                such provider shall be disqualified from receiving 
                funds under this title for a period of two years, 
                unless such provider can demonstrate to the 
                satisfaction of the Governor or his or her designee, 
                that the information was provided in good faith.
                    (B) Appeal.--The Governor shall establish a 
                procedure for a service provider to appeal a 
                determination by a State agency that results in a 
                disqualification under subparagraph (A). Such procedure 
                shall provide an opportunity for a hearing and 
                prescribe appropriate time limits to ensure prompt 
                resolution of the appeal.
            (5) Assistance in developing information.--The State agency 
        established pursuant to paragraph (1) may provide technical 
        assistance to education and training providers in developing 
        the information required under subsection (b). Such assistance 
        may include facilitating the utilization of State 
        administrative records, such as unemployment compensation wage 
        records, and other appropriate coordination activities.
    (e) On-The-Job Training Exception.--
            (1) In general.--Providers of on-the-job training shall not 
        be subject to the requirements of subsections (a), (b), and 
        (c).
            (2) Collection and dissemination of information.--The 
        Workforce Development Board shall collect such performance-
        based information from on-the-job training providers as the 
        Governor may require, and shall disseminate such information to 
        the one-stop career centers.

SEC. 110. MANAGEMENT INFORMATION SYSTEMS.

    (a) In General.--Each State shall use a portion of the funds it 
receives under this Act to design a unified management information 
system.
    (b) Requirements.--Each unified management information system 
shall--
            (1) notwithstanding any other provision of Federal law, be 
        utilized for federally required fiscal reporting and monitoring 
        for each of the programs authorized under this Act;
            (2) 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 workforce development areas, 
        and to inform policymakers as to the results being achieved 
        through that investment;
            (3) contain a common structure of financial reporting 
        requirements, fiscal systems and monitoring for all workforce 
        development expenditures included in the workforce development 
        system that shall utilize the common data elements and 
        definitions included in title I; and
            (4) support local efforts to establish workforce 
        development systems, including intake and eligibility 
        determination for all services.
              Subtitle B--Amendments to Wagner-Peyser Act

SEC. 131. GENERAL PROGRAM REQUIREMENTS.

    (a) Purpose.--Section 1 of the Act of June 6, 1933 (commonly known 
as the ``Wagner-Peyser Act''; 29 U.S.C. 49) is amended by striking 
``public employment offices'' and inserting ``local employment service 
offices open to the public''.
    (b) Definitions.--Section 2 of such Act (29 U.S.C. 49a) is 
amended--
            (1) in paragraph (1), by striking ``Job Training 
        Partnership Act'' and inserting ``Consolidated and Reformed 
        Education, Employment, and Rehabilitation Systems Act'';
            (2) in paragraph (2) to read as follows:
            ``(2) the term `local workforce development board' means a 
        local workforce development board established under title I of 
        the Consolidated and Reformed Education, Employment, and 
        Rehabilitation Systems Act;'';
            (3) in paragraph (4) to read as follows:
            ``(4) the term `local workforce development area' means a 
        local workforce development area established under title I of 
        the Consolidated and Reformed Education, Employment, and 
        Rehabilitation Systems Act;'';
            (4) in paragraph (5), by striking the period at the end and 
        inserting a semicolon; and
            (5) by adding at the end the following new paragraphs:
            ``(6) the term `local employment service office' means an 
        office which provides employment services to the general public 
        under a one-stop career center system; and
            ``(7) the term `one-stop career center system' means a one-
        stop career center system established under title I of the 
        Consolidated and Reformed Education, Employment, and 
        Rehabilitation Systems Act.''.
    (c) Duties.--Section 3(a) of such Act (29 U.S.C. 49b(a)) is amended 
to read as follows:
    ``(a) The Secretary of Labor shall--
            ``(1) assist in the coordination and development of a 
        nationwide system of labor exchange services for the general 
        public, provided through the one-stop career center system;
            ``(2) assist in the development of performance standards, 
        benchmarks, and continuous improvement models for such 
        nationwide system which ensures private sector satisfaction and 
        meets the demands of jobseekers; and
            ``(3) ensure the continued services for individuals 
        receiving unemployment compensation.''.
    (d) Requirements for Receipt of Funds.--Section 4 of such Act (29 
U.S.C. 49c) is amended by striking ``a State shall, through its 
legislature'' and inserting ``the Governor of a State, through the 
collaborative process described in title I of the Consolidated and 
Reformed Education, Employment, and Rehabilitation Systems Act''.
    (e) Authorization of Appropriations.--Section 5 of such Act (29 
U.S.C. 49d) is amended by inserting before the period at the end the 
following: ``, of which not less than 25 percent shall be for carrying 
out title II of this Act''.
    (f) Use of Funds Under This Act.--Section 7(c)(2) of such Act (29 
U.S.C. 49f(c)(2)) is amended by striking ``any of the following 
provisions of law'' and all that follows and inserting ``the 
Consolidated and Reformed Education, Employment, and Rehabilitation 
Systems Act.''.
    (g) State Plan.--Section 8 of such Act (29 U.S.C. 49g) is amended--
            (1) in subsection (a) to read as follows:
    ``(a) Any State desiring to receive assistance under this Act shall 
submit to the Secretary, as part of the State workforce development and 
literacy plan authorized under title I of the Consolidated and Reformed 
Education, Employment, and Rehabilitation Systems Act, detailed plans 
for carrying out the provisions of this Act within such State.'';
            (2) by striking subsections (b), (c), and (e); and
            (3) by redesignating subsection (d) as subsection (b).
    (h) Elimination of Federal Advisory Council.--Section 11 of such 
Act (29 U.S.C. 49j) is hereby repealed.
    (i) Conforming Amendments.--
            (1) After section 2 of such Act insert the following new 
        heading:

               ``TITLE I--GENERAL PROGRAM REQUIREMENTS''.

            (2) Section 4 of such Act is amended by striking ``United 
        States Employment Service'' and inserting ``Secretary of 
        Labor''.
            (3) Section 7(b) of such Act is amended--
                    (A) in paragraph (1), by striking ``public 
                employment service offices'' and inserting ``local 
                employment service offices''; and
                    (B) in paragraph (2), by striking ``private 
                industry council'' and inserting ``local workforce 
                development board''.
            (4) Section 7(d) of such Act is amended--
                    (A) by striking ``United States Employment 
                Service'' and inserting ``Secretary of Labor''; and
                    (B) by striking ``Job Training Partnership Act'' 
                and inserting ``Consolidated and Reformed Education, 
                Employment, and Rehabilitation Systems Act''.
            (5) Section 12 of such Act is amended by striking ``The 
        Director, with the approval of the Secretary of Labor,'' and 
        inserting ``The Secretary of Labor''.

SEC. 132. LABOR MARKET INFORMATION.

    The Act of June 6, 1933 (commonly known as the ``Wagner-Peyser 
Act''; 29 U.S.C. 49), as amended by section 131, is further by adding 
at the end the following new title:

                  ``TITLE II--LABOR MARKET INFORMATION

``SEC. 21. PURPOSE.

    ``The purpose of this title is to ensure a comprehensive and 
coordinated system of labor market information which will provide 
locally based, accurate, up-to-date, easily accessible, and user 
friendly labor market information through a cooperative Federal, State, 
and local governance structure which includes partnerships with the 
private sector at all levels.
``SEC. 22. SYSTEM CONTENT.

    ``The Secretary of Labor, in accordance with the provisions of this 
title, shall oversee the development, maintenance, and continuous 
improvement of a nationwide system of labor market information using 
data from all available and appropriate sources, which shall include--
            ``(1) statistical data from survey and projection programs 
        and data from administrative reporting systems, which, taken 
        together, shall enumerate, estimate, and project the supply and 
        demand for labor at national, State, and local levels in a 
        timely manner, including data on--
                    ``(A) the demography, socioeconomic 
                characteristics, and current employment status of the 
                population, including self-employed, part-time, and 
                seasonal workers;
                    ``(B) the job duties, education and training 
                requirements, skills, wages, benefits, working 
                conditions, and industrial distribution of occupations, 
                as well as current and projected employment 
                opportunities and trends by industry and occupation;
                    ``(C) the educational attainment, training, skills, 
                skill levels, and occupations of the population;
                    ``(D) information maintained in a longitudinal 
                manner on the quarterly earnings, establishment and 
                industry affiliation, and geographic location of 
                employment for all individuals for whom such 
                information is collected by the States; and
                    ``(E) the incidence, industrial and geographical 
                location, and number of workers displaced by permanent 
                layoffs and plant closings;
            ``(2) State and local employment and consumer information, 
        which shall be current, comprehensive, localized, and 
        automated, and which shall be accessible, easy to understand, 
        and in a form useful for immediate employment, entry into 
        education and training programs, and career exploration, on--
                    ``(A) job openings, locations, hiring requirements, 
                and application procedures, as well as profiles of 
                employers in the local labor market describing the 
                nature of work performed, employment requirements, 
                wages, benefits, and hiring patterns;
                    ``(B) job seekers, including their education and 
                training, skills, skill levels, employment experience, 
                and employment goals; and
                    ``(C) education courses, training programs, and job 
                placement programs, including--
                            ``(i) performance information, such as the 
                        ratio of program completion, acquisition of 
                        industry-recognized skill standards, job 
                        placement, earnings, and the level of 
                        satisfaction of the participants and their 
                        employers; and
                            ``(ii) descriptive information, such as 
                        eligibility requirements, costs, financial 
                        support, or other supportive services, and 
                        other appropriate information which may be 
                        available with these courses and programs;
            ``(3) technical standards for data and information that 
        will--
                    ``(A) ensure compatability and additivity of data 
                and information from local to State and national 
                levels;
                    ``(B) support standardization and aggregation of 
                data and information from the administrative reporting 
                systems of employment-related programs; and
                    ``(C) include--
                            ``(i) classification and coding systems for 
                        industries, occupations, skills, programs, and 
                        courses;
                            ``(ii) nationally standardized definitions 
                        of terms;
                            ``(iii) a common system for designating 
                        geographic areas;
                            ``(iv) quality control mechanisms for data 
                        collection and analysis; and
                            ``(v) common schedules for data collection 
                        and dissemination;
            ``(4) analysis of data and information for uses including--
                    ``(A) national, State, and local economic 
                policymaking;
                    ``(B) the implementation of Federal policies, 
                including the allocation of Federal funds to States and 
                localities and the facilitation of job search and 
                hiring in local labor markets;
                    ``(C) national, State, and local program planning 
                and evaluation; and
                    ``(D) research on labor market dynamics;
            ``(5) dissemination mechanisms for data and analysis, 
        including mechanisms which may be standardized among the States 
        and technical standards in the design of automated data bases, 
        and the design of user interfaces and communications protocols;
            ``(6) programs of technical assistance for States and 
        localities in the development, maintenance, and utilization of 
        data, analysis, and dissemination mechanisms, including 
        assistance in adopting and utilizing automated systems and 
        improving the access, through electronic and other means, of 
        youth, adults, and employers to labor market information for 
        localities, States, and the Nation;
            ``(7) programs of research and demonstration, which may be 
        carried out by States and other public or private entities, on 
        ways to improve the products and processes authorized in this 
        title; and
            ``(8) objective performance measures, which will allow for 
        the continuous monitoring of the progress of the labor market 
        information system at national, State, and local levels.

``SEC. 23. FEDERAL RESPONSIBILITIES.

    ``(a) In General.--The Nation's labor market information system 
shall be planned, administered, overseen, and evaluated by a 
cooperative governance structure involving the Federal Government and 
the States.
    ``(b) Duties.--The Secretary, with respect to data collection, 
analysis, and dissemination of labor market information, shall carry 
out the following duties:
            ``(1) Reconcile all statistical and administrative data 
        collection activities within the Department of Labor, including 
        the Employment and Training Administration, Employment 
        Standards Administration, and Occupational Health and Safety 
        Administration, to those of the Bureau of Labor Statistics.
            ``(2) Assign responsibilities, as appropriate, to agencies 
        such as the Employment and Training Administration, to assist 
        the Bureau of Labor Statistics in the collection, analysis and, 
        particularly, in the dissemination of labor market information, 
        and in the provision of training and technical assistance to 
        users of information, including the States, employers, youth, 
        and adults.
            ``(3) In cooperation with other Federal agencies, including 
        but not limited to the Departments of Commerce, Defense, 
        Treasury, Education, Health and Human Services, Agriculture, 
        and the Office of Management and Budget, establish and maintain 
        mechanisms for ensuring complementarity and nonduplication in 
        the development and operation of statistical and administrative 
        data collection activities, in order to ensure a comprehensive 
        labor market information system.
            ``(4) Actively seek the participation of other Federal 
        agencies, particularly the National Center for Education 
        Statistics and the Division of Adult and Vocational Education 
        of the Department of Education, in the design and provision of 
        standardized information to the States to support section 
        102(a)(2), and in the dissemination of labor market 
        information.
    ``(c) Additional Duties.--The Secretary, acting through the Bureau 
of Labor Statistics, and in cooperation with other Federal agencies, 
shall--
            ``(1) establish and maintain, with the cooperation of the 
        States, elements of the system described in sections 102(a)(1) 
        and 102(a)(3);
            ``(2) develop and promulgate standards, definitions, 
        formats, collection methodologies, and other necessary system 
        elements for the use of the States in their assembling and 
        presentation of the employment information specified in section 
        102(a)(2);
            ``(3) eliminate gaps and duplication in statistical 
        undertakings, with the systemization of wage surveys as an 
        early priority;
            ``(4) recommend any needed improvements in administrative 
        reporting systems to support the development of labor market 
        information from their data; and
            ``(5) ensure that--
                    ``(A) data are sufficiently timely and locally 
                detailed for uses including those specified in section 
                102(a)(4);
                    ``(B) administrative records are standardized to 
                facilitate the aggregation of data from local to State 
                and national levels and to support the creation of new 
                statistical series from program records; and
                    ``(C) paperwork and reporting requirements on 
                employers and individuals are reduced.

``SEC. 24. ANNUAL PLAN.

    ``(a) In General.--The Secretary of Labor, working through the 
Bureau of Labor Statistics, and in consultation with other appropriate 
Federal agencies, shall prepare an annual plan, which shall be the 
operational mechanism for achieving a cooperative Federal/State 
governance structure for labor market information. The annual plan 
shall provide the verbal justification for the Department of Labor's 
budget request to Congress by describing the activities of the Bureau, 
other agencies of the Department of Labor, and other Federal agencies 
with regard to data collection, analysis, and dissemination of labor 
market information for fiscal years succeeding the fiscal year in which 
the plan is developed and shall include--
            ``(1) the results of a periodic review of users' needs, 
        including the identification of new employment issues and the 
        attendant emergence of new needs, on the part of Congress, the 
        States, employers, youth, and adults, for data, analysis, and 
        dissemination;
            ``(2) an evaluation, including the results of objective 
        measures, of the performance of the labor market information 
        system in meeting these needs and the steps to be taken to 
        overcome deficiencies;
            ``(3) a summary of ongoing data programs and activities 
        under section 102 and a description of the development of new 
        data programs, analytical techniques, definitions and 
        standards, dissemination mechanisms, training and technical 
        assistance, governance mechanisms, and funding processes to 
        meet new needs; and
            ``(4) the results of an annual review of the costs to the 
        States of meeting contract requirements for data production 
        under this title, including a description of how the 
        Secretary's requested budget will cover these costs.
    ``(b) Cooperation With the States.--The Secretary shall involve the 
States with the Bureau of Labor Statistics in a cooperative manner in 
the development of the plan by--
            ``(1) establishing procedures and mechanisms for holding 
        formal and periodic consultations on products and 
        administration of the system, at least once each quarter, with 
        elected representatives from each of the 8 Federal regions of 
        the Department of Labor and with representatives of the States 
        (by and from among the State directors of labor market 
        information, according to a process set forth by the 
        Secretary); and
            ``(2) incorporating in the annual plan, for its submission 
        to Congress, the results of these consultations, including any 
        supplementary or dissenting views from representatives of the 
        States.
    ``(c) Representatives of States Deemed To Be Federal Employees.--
For purposes of the development of the annual plan and to meet the 
provisions of Office of Management and Budget Circular A-11, the 
representatives of the States, elected in accordance with subsection
 (b)(1), shall be considered to be employees of the Department of 
Labor.

``SEC. 25. GOVERNOR'S RESPONSIBILITIES.

    ``(a) Designation of State Agency.--The Governor of each State 
shall designate a single State agency to be the agency responsible for 
the management and oversight of a statewide comprehensive labor market 
information system and for the State's participation in the cooperative 
Federal/State governance structure for the nationwide labor market 
information system.
    ``(b) Duties.--In order to receive Federal financial assistance 
under this Act, the State agency shall--
            ``(1) develop, maintain, and continuously improve a 
        comprehensive labor market information system, which shall--
                    ``(A) include all the elements specified in section 
                102; and
                    ``(B) be responsive to the needs of the State and 
                its localities for planning and evaluative data, 
                including employment and economic analyses and 
                projections, as required by this Act, the Consolidated 
                and Reformed Education, Employment, and Rehabilitation 
                Systems Act, the Social Security Act, and other 
                provisions of law under which Congress has required the 
                use of labor market information;
            ``(2) ensure the performance of contract and grant 
        responsibilities for data collection, analysis, and 
        dissemination;
            ``(3) conduct such other data collection, analysis, and 
        dissemination activities as will ensure comprehensive State and 
        local labor market information;
            ``(4) actively seek the participation of other State and 
        local agencies, with particular attention to State education, 
        economic development, human services, and welfare agencies, in 
        data collection, analysis, and dissemination activities in 
        order to ensure complementarity and compatability among data; 
        and
            ``(5) participate in the development of the national annual 
        plan.
    ``(c) Rule of Construction.--Nothing in this Act shall be construed 
as limiting the State agency's ability to conduct additional data 
collection, analysis, and dissemination activities with State funds or 
with Federal funds from sources other than this Act.''.
  TITLE II--YOUTH WORKFORCE PREPARATION AND DEVELOPMENT CONSOLIDATION 
                                 GRANT

SEC. 201. PURPOSES.

    It is the purpose of this title to provide States and local 
communities maximum flexibility in designing workforce preparation 
programs that--
            (1) best suit the needs of in-school and at-risk youth in 
        their communities, as well as the skill needs of State and 
        local employers;
            (2) promote strong connections between in-school and at-
        risk programs, to ensure that youth are prepared for good jobs 
        and further education opportunities;
            (3) promote the formation of business and education 
        partnerships that are dedicated to linking the worlds of school 
        and work; and
            (4) promote high academic and occupational standards.

SEC. 203. DEFINITIONS.

    For purposes of this title:
            (1) The term ``administration'' means activities of a State 
        necessary for the proper and efficient performance of its 
        duties under this title, including supervision, but does not 
        include curriculum development activities, personnel 
        development, or research activities.
            (2) The term ``all aspects of the industry'' means strong 
        experience in, and understanding of, all aspects of the 
        industry the students are preparing to enter, including 
        planning, management, finances, technical and production 
        skills, underlying principles of technology, labor issues, and 
        health and safety.
            (3) The term ``articulation agreement'' means a commitment 
        to a program designed to provide students with a nonduplicative 
        sequence of progressive achievement leading to competencies in 
        a tech-prep education program.
            (4) The term ``cooperative education'' means a method of 
        instruction of vocational education for individuals who, 
        through written cooperative arrangements between the school and 
        employers, receive instruction, including required academic 
        courses and related vocational instruction by alternation of 
        study in school with a job in any occupational field. Such 
        alternation shall be planned and supervised by the school and 
        employers so that each contributes to the student's education 
        and to his or her employability.
         Work periods and school attendance may be on alternate half 
days, full days, weeks, or other periods of time in fulfilling the 
cooperative program.
            (5) The term ``corrections vocational education'' means 
        programs administered by the State to assist juvenile and adult 
        criminal offenders in correctional institutions in the State, 
        including correctional institutions operated by local 
        authorities.
            (6) The term ``curricula'' means instructional and related 
        or supportive material, including materials using advanced 
        learning technology, in any occupational field which is 
        designed to strengthen the academic foundation and prepare 
        individuals for employment at the entry level or to upgrade 
        occupational competencies of those previously or presently 
        employed in any occupational field, and appropriate counseling 
        and guidance material.
            (7) The term ``displaced homemaker'' means an individual 
        who--
                    (A) is an adult; and
                    (B)(i) has worked as an adult primarily without 
                remuneration to care for the home and family, and for 
                that reason has diminished marketable skills;
                    (ii) has been dependent on public assistance or on 
                the income of a relative but is no longer supported by 
                such income;
                    (iii) is a parent whose youngest dependent child 
                will become ineligible to receive assistance under the 
                program for aid to families with dependent children 
                under part A of title IV of the Social Security Act 
                within 2 years of the parent's application for 
                assistance under this title; or
                    (iv) is unemployed or underemployed and is 
                experiencing difficulty in obtaining any employment or 
                suitable employment, as appropriate, or
                    (C) is described in subparagraph (A) or (B) and is 
                a criminal offender.
            (8) Except as otherwise provided, the term ``eligible 
        institution'' means a local educational agency, an area 
        vocational education school, an intermediate educational 
        agency, a postsecondary educational institution, or a State 
        corrections educational agency.
            (9) The term ``Secretary'' means the Secretary of 
        Education.
            (10) The term ``sequential course of study'' means an 
        integrated series of courses which are directly related to the 
        educational and occupational skills preparation of individuals 
        for jobs, or preparation for postsecondary education.
            (11) The term ``single parent'' means an individual who--
                    (A) is unmarried or legally separated from a 
                spouse; and
                    (B)(i) has a minor child or children for which the 
                parent has either custody or joint custody; or
                    (ii) is pregnant.
            (12) The term ``specific job training'' means training and 
        education for skills required by the employer that provides the 
        individual student with the ability to obtain employment and to 
        adapt to the changing demands of the workplace.
            (13) The term ``tech-prep education program'' means a 
        combined secondary and postsecondary program which--
                    (A) leads to an associate degree or 2-year 
                certificate;
                    (B) provides technical preparation in at least 1 
                field of engineering technology, applied science, 
                mechanical, industrial, or practical art or trade, or 
                agriculture, health, or business;
                    (C) builds student competence in mathematics, 
                science, and communications (including through applied 
                academics) through a sequential course of study; and
                    (D) leads to placement in employment.
            (14) The term ``vocational education'' means organized 
        educational programs offering a sequence of courses which are 
        directly related to the preparation of individuals in paid or 
        unpaid employment in current or emerging occupations requiring 
        other than a baccalaureate or advanced degree. Such programs 
        shall include competency-based applied learning which 
        contributes to an individual's academic knowledge, higher-order 
        reasoning, and problem-solving skills, work attitudes, general 
        employability skills, and the occupational-specific skills 
        necessary for economic independence as a productive and 
        contributing member of society. Such term also includes applied 
        technology education.

                       Subtitle A--State Funding

SEC. 211. NATIONAL AND STATE FUNDING.

    (a) National Programs.--In each fiscal year, of the amounts made 
available under section 3, the Secretary shall reserve 20 percent or 
$25,000,000, whichever is less, to carry out the provisions of subtitle 
D.
    (b) State Allotment.--
            (1) In general.--In each fiscal year from the amounts made 
        available under section 3, the Secretary shall allot to each 
        State for each fiscal year an amount which bears the same ratio 
        as an average of--
                    (A) the funding allotted in fiscal year 1995 under 
                section 101 and 101A of the Carl D. Perkins Vocational 
                and Applied Technology Education Act as such Act was in 
                effect on the day before the date of the enactment of 
                this Act; and
                    (B) the funding allotted in fiscal year 1995 under 
                section 252 and 262 of the Job Training Partnership Act 
                as such Act was in effect on the day before the date of 
                the enactment of this Act.
            (2) Definition.--For the purposes of this subsection the 
        term ``State'' means, in addition to the several States, the 
        District of Columbia, the Commonwealth of Puerto Rico, the 
        Virgin Islands, Guam, American Samoa, and the Northern Mariana 
        Islands.
    (c) Funding for State Programs.--Of the funds allotted to a State 
under subsection (b) for each fiscal year, the Governor shall--
            (1) make available not less than 90 percent to local 
        providers;
            (2) use not more than 8 percent for State programs 
        described in section 222; and
            (3) use not more than 2 percent for administrative 
        purposes.

SEC. 212. WITHIN STATE ALLOCATION.

    (a) In General.--Subject to the provisions of section 211, from the 
remainder of the allotment made to each State from funds appropriated 
to carry out this title for each fiscal year, the Governor shall 
allocate--
            (1) to eligible institutions an amount equal to not less 
        than 40 percent of such amount for in-school youth programs 
        described in section 241;
            (2) to local workforce development boards an amount equal 
        to not less than 40 percent of such amount for at-risk youth 
        programs described in section 245; and
            (3) the remainder of any amounts under this subsection to 
        carry out the purposes of paragraph (1) or (2).
    (b) Minimum Grant Amounts.--
            (1) Local educational agencies.--A local educational agency 
        or consortium of such agencies that receives a subgrant from a 
        State under this subtitle for any fiscal year shall receive not 
        less than $15,000.
            (2) Postsecondary institutions.--A postsecondary 
        institution or consortium of such institutions that receives a 
        subgrant from a State under this subtitle for any fiscal year 
        shall receive not less than $50,000.
            (3) Local development board.--A local development board 
        that receives a subgrant from a State under this subtitle for 
        any fiscal year shall receive not less than $15,000.
    (c) Reallocation.--
            (1) In general.--In any academic year that a local 
        workforce development board or an eligible institution does not 
        expend all of the amounts it is allocated for such year, such 
        workforce development board or eligible institution shall 
        return any unexpended amounts to the State to be reallocated 
        under subsection (a).
            (2) Reallocation of amounts returned late in an academic 
        year.--In any academic year in which amounts are returned to 
        the State and the State is unable to reallocate such amounts 
        according to such sections in time for such amounts to be 
        expended in such academic year, the State may retain such 
        amounts to be distributed in combination with amounts provided 
        under this subtitle for the following academic year.

       Subtitle B--State Organizational, Planning, and Reporting 
                            Responsibilities

SEC. 221. STATE PLAN.

    In addition to the requirements described in title I, a State that 
desires to receive funds for any fiscal year under this title shall 
submit to the Secretary of Education a State plan that includes--
            (1) a description of how the State will adopt, develop, or 
        assist local providers to adopt or develop model curricula and 
        innovative instructional methodologies, to be used in the 
        secondary, and where possible, the elementary grades, and in 
        programs for at-risk youth that integrate academic, vocational, 
        and work-based learning, stressing applied and contextual 
        learning, and promote career awareness;
            (2) a description of how the State will expand and improve 
        career exploration and guidance counseling in the elementary 
        and secondary grades, which may include linkages to career 
        exploration and guidance counseling and labor market 
        information services outside of the school system;
            (3) a description of the strategy of the State for 
        integrating academic, vocational, and work-based learning.
            (4) a description of how the State will develop a State 
        process for issuing skill certificates that, to the extent 
        feasible, are consistent with the skill standards certification 
        systems endorsed by the National Skill Standards Board; and
            (5) a description of how the State will promote the active 
        involvement of business (including small- and medium-sized 
        businesses) in the planning, development, and implementation of 
        youth workforce development programs authorized under this 
        title.

SEC. 222. STATE PROGRAMS AND STATE ACTIVITIES.

    (a) General Authority.--From amounts made available to a State 
under section 211, each State shall conduct State programs and 
activities.
    (b) Required Uses of Funds.--The programs and activities described 
in subsection (a) shall include an assessment of programs conducted 
with assistance under this title, including the development of--
            (1) performance standards and measures for such programs; 
        and
            (2) program improvement and accountability with respect to 
        such programs.
    (c) Additional Uses of Funds.--The programs and activities 
described in subsection (a) may include--
            (1) the support for tech-prep education;
            (2) support for workforce preparation programs for single 
        parents, displaced homemakers, and single pregnant women;
            (3) support for corrections vocational education;
            (4) professional development activities for vocational 
        teachers, academic teachers, school administrators, counselors, 
        workplace mentors, and local providers regarding integration of 
        vocational, academic, and work-based curricula, including 
        inservice and preservice training of teachers in state-of-the-
        art programs and techniques;
            (5) development, dissemination, and field testing of work-
        based learning curricula, especially--
                    (A) curricula that integrate vocational, academic, 
                and work-based methodologies; and
                    (B) curricula that provide a coherent sequence of 
                courses through which academic and occupational skills 
                may be measured;
            (6) leadership and instructional programs in technology 
        education;
            (7) data collection;
            (8) support for 1-stop career centers described in section 
        108; and
            (9) support for cooperative education programs.

SEC. 223. INCENTIVE AWARDS.

    The State, may, from the amount made available under section 
211(c)(2) for any fiscal year make performance awards to 1 or more 
eligible institutions or local providers that have--
            (1) exceeded in the performance goals described in section 
        224; or
            (2) implemented exemplary workforce development systems at 
        the local level in accordance with the purposes described in 
        section 201.

SEC. 224. CORE STANDARDS, PERFORMANCE GOALS AND MEASURES.

    (a) General Authority.--
            (1) Standards and measures.--In addition to the State's 
        goals under section 104, each State receiving funds under this 
        title shall have developed or shall develop and implement a 
        statewide system of core standards and measures of performance 
        for workforce development programs serving youth in 
        coordination with other titles of this Act.
            (2) Statewide system.--Each statewide system, in accordance 
        with the provisions of section 104, shall--
                    (A) establish or have established performance goals 
                to define the level of performance to be achieved by 
                youth served under this title and to evaluate the 
                quality and effectiveness of services and activities 
                under this title;
                    (B) express such goals in an objective, 
                quantifiable, and measurable form;
                    (C) establish progress indicators that the State 
                and local recipients will use in measuring or assessing 
                progress toward achieving such goals; and
                    (D) provide biennial reports to the public and to 
                the Secretary on the State's progress in achieving its 
                goals.
    (b) Requirements.--Each system developed under subsection (a) shall 
include--
            (1) measures of academic and occupational competency gains, 
        including progress in the achievement of the following:
                    (A) Academic and occupational competency attainment 
                which includes--
                            (i) attainment of challenging State 
                        academic standards;
                            (ii) attainment of challenging vocational-
                        technical education standards; and
                            (iii) attainment of industry-recognized 
                        occupational standards, including basic 
                        workplace competencies and industry-recognized 
                        skill standards (endorsed by the National Skill 
                        Standards Board), which may include the receipt 
                        of a skill certificate in the occupation for 
                        which the student has been prepared;
                    (B) retention in school or completion of secondary 
                school or the equivalent;
                    (C) placement into additional training or 
                postsecondary education, military service, registered 
                apprenticeship, or employment;
                    (D) employment retention and earnings levels;
            (2) reduction of the drop-out rate; and
            (3) success of special populations in meeting these 
        performance standards.
    (c) Performance Goals and Measures.--The Governor shall, acting 
through the collaborative process, work to ensure that the performance 
goals are consistent with challenging State academic standards, 
industry-recognized skill standards once established by the National 
Skills Standard Board and the State goals established under this title.

     Subtitle C--Subgrants for In-School and At-Risk Youth Programs

SEC. 231. PARTNERSHIP AGREEMENTS.

    (a) Partnership.--A local workforce development board and an 
eligible institution that desires to receive a subgrant from a State 
under this subtitle in any fiscal year shall form a partnership.
    (b) Plan.--The partnership referred to in subsection (a) shall, in 
collaboration, develop and submit to the Governor through the State 
collaborative process a comprehensive workforce development plan for 
in-school and at-risk youth. Such plan shall describe how the youth 
workforce development system meets the requirements of sections 241 and 
245.

SEC. 232. DISTRIBUTION OF FUNDS.

    (a) In-School Programs.--A State shall distribute funds made 
available in a fiscal year as provided in section 212(a)(1) to carry 
out in-school youth programs described in section 241 to eligible 
institutions.
    (b) At-Risk Youth Programs.--A State shall distribute funds made 
available in any fiscal year as provided in section 212(a)(2) to local 
workforce development boards to carry out at-risk youth programs 
described in section 245.

                  CHAPTER 1--IN-SCHOOL YOUTH PROGRAMS

SEC. 241. USES OF FUNDS FOR IN-SCHOOL YOUTH PROGRAMS.

    (a) General Authority.--Each eligible institution that receives a 
subgrant under this chapter shall use funds provided under such grant 
to improve workforce development and career-related education programs.
    (b) Requirements for Uses of Funds.--Funds provided by a State 
pursuant to section 212(a)(1) shall be used to provide in-school 
workforce development and career-related education programs that--
            (1) are of such size, scope, and quality as to be 
        effective;
            (2) integrate academic, vocational, and work-based 
        learning, stressing applied and contextual learning, through a 
        coherent sequence of courses so that youth achieve both 
        academic and occupational competencies;
            (3) involve employers in the design and implementation of 
        programs, including the development of curriculum;
            (4) establish effective linkages between at-risk youth 
        programs, secondary and postsecondary education;
            (5) provide work-based learning experiences; and
            (6) provide career exploration, career awareness and career 
        guidance opportunities, beginning in the earliest grades 
        possible, but not later than grade 6.
    (c) Additional Uses of Funds.--In carrying out the provisions of 
subsection (b), funds may be used by schools for in-school youth 
activities such as--
            (1) purchasing or upgrading of equipment, including 
        instructional aides and material;
            (2) inservice training of vocational instructors, academic 
        instructors, employers, and workplace mentors, to integrate 
        academic and vocational education, and provide high-quality 
        work-based learning experiences;
            (3) tech prep education programs;
            (4) supplementary services designed to meet the needs of 
        special populations;
            (5) adaptation of equipment;
            (6) apprenticeship programs;
            (7) programs which train students for all aspects of 
        industry in which job openings are projected or available;
            (8) comprehensive mentoring programs in institutions of 
        higher education offering comprehensive programs in teacher 
        preparation which seek to fully use the skills and work 
        experience of individuals currently or formerly employed in 
        business and industry who are interested in becoming classroom 
        instructors and to meet the need of vocational educators who 
        wish to upgrade their teaching competencies; and
            (9) local education/business partnerships for developing 
        and implementing workforce preparation systems.

                   CHAPTER 2--AT-RISK YOUTH PROGRAMS

SEC. 245. USES OF FUNDS FOR AT-RISK YOUTH.

    (a) General Authority.--Each local workforce development board that 
receives a subgrant under this chapter shall use funds provided under 
such grant to improve workforce development and career-related 
education programs.
    (b) Requirements for Uses of Funds.--Funds provided by a State 
pursuant to section 212(a)(2) shall be used to provide workforce 
development and career-related education programs for at-risk youth 
that--
            (1) are of such size, scope, and quality as to be 
        effective;
            (2) integrate academic, vocational, and work-based 
        learning, stressing applied and contextual learning, through a 
        coherent sequence of courses so that students and at-risk youth 
        achieve both academic and occupational competencies;
            (3) involve employers in the design and implementation of 
        programs, including the development of curriculum;
            (4) establish effective linkages between at-risk youth 
        programs, and secondary and postsecondary education;
            (5) provide work-based learning experiences;
            (6) provide adult mentoring as a core component of the 
        program;
            (7) provide an objective assessment of the academic and 
        skill levels, and service needs of each participant; and
            (8) provide career exploration and counseling.
    (c) Additional Uses of Funds.--In carrying out the provisions of 
subsection (b), providers of at-risk youth programs as selected by the 
local workforce development board may provide activities such as--
            (1) tutoring study skills training and instruction leading 
        to high school;
            (2) alternative high school services;
            (3) training or education that is combined with community 
        and service learning opportunities;
            (4) paid work experience, including limited internships, 
        entry-employment experience programs, and summer employment 
        opportunities that are integrated with the year-round school-
        based or alternative school-based program;
            (5) drop-out prevention strategies and strategies to 
        encourage at-risk youth to reenter high school or alternative 
        high school programs;
            (6) preemployment and work maturity skills training;
            (7) peer-centered activities encouraging responsibility and 
        other positive social behaviors during non-school hours; and
            (8) training-related supportive services.

SEC. 246. AT-RISK YOUTH PROVIDERS.

    (a) Role of Workforce Development Board.--A workforce development 
board that receives funds under this chapter shall not operate 
programs, but shall contract with eligible providers of demonstrated 
effectiveness, or with eligible providers utilizing service 
methodologies with demonstrated effectiveness in serving the workforce 
preparation needs of at-risk youth, for the purpose of providing 
services under this chapter.
    (b) Eligible Providers.--For purposes of this chapter, eligible 
providers may include--
            (1) an ``eligible institution'' as defined under section 
        212(d);
            (2) a unit of local government;
            (3) a private, nonprofit organization;
            (4) a private, for profit entity;
            (5) a designated 1-stop career center; or
            (6) other organizations or entities of demonstrated 
        effectiveness and approved by the local Board.

                     Subtitle D-- National Programs

SEC. 251. RESEARCH ACTIVITIES.

    (a) General Authority.--(1) In order to carry out the purpose of 
this title, the Secretary may, directly or through grants, contracts, 
or cooperative agreements, carry out research, development, 
dissemination, demonstration programs, evaluation, capacity-building, 
and technical assistance activities with regard to the services and 
activities carried out under this title.
    (2) Activities carried out under this section may include support 
for occupational and career information systems.
    (b) Dissemination.--The Secretary shall establish a system for 
disseminating information resulting from research and development 
activities carried out under this title.

SEC. 252. ANNUAL ASSESSMENT AND DATA COLLECTION OF VOCATIONAL EDUCATION 
              PROGRAMS.

    (a) In General.--(1) The Secretary through the Office of 
Educational Research and Improvement shall conduct an annual assessment 
of services and activities assisted under this title, through studies 
and analyses conducted independently through competitive awards.
    (b) Contents.--The assessment required under subsection (a) shall 
examine the extent to which services and activities assisted under this 
title have achieved their intended purposes and results, including the 
extent to which--
            (1) State and local services and activities have developed, 
        implemented, or improved systems established under this title;
            (2) services and activities assisted under this title 
        succeed in preparing students, including students who are 
        members of special populations, for postsecondary education, 
        further learning, or entry into high-skill, high-wage careers;
            (3) students who participate in services and activities 
        supported under this title succeed in meeting challenging State 
        academic and industry-based skill standards; and
            (4) the system improvement, participation, local and State 
        assessment, and accountability provisions of this title, 
        including the performance goals and indicators established 
        under section 223, are effective.

SEC. 253. NATIONAL CENTER OR CENTERS FOR RESEARCH.

    (a) General Authority.--(1) The Secretary may, through a grant or 
contract, establish one or more national centers in the areas of 
applied research, development, and dissemination. The Secretary shall 
consult with States prior to establishing one or more such centers.
    (2) Entities eligible to receive funds under this section are 
institutions of higher education, other public or private nonprofit 
organizations or agencies, and consortia of such institutions, 
organizations, or agencies.
    (3) The national center in existence on the date of the enactment 
of the this Act shall continue to receive assistance under this section 
in accordance with the terms of its current award.
    (b) Activities.--(1) The applied research, development, and 
dissemination activities carried out by the national center or centers 
shall include--
            (A) activities that assist recipients of funds under this 
        title to meet the requirements of section 224; and
            (B) such other activities as the Secretary determines to be 
        appropriate to achieve the purpose of this Act.
    (2) The center or centers conducting the activities described in 
paragraph (1) shall annually prepare a summary of key research findings 
of such center or centers and shall submit copies of the summary to the 
Secretaries of Education and Labor. The Secretary shall submit that 
summary to the Committee on Labor and Human Resources of the Senate, 
and the Committee on Economic and Educational Opportunities of the 
House of Representatives.
      TITLE III--ADULT EMPLOYMENT AND TRAINING CONSOLIDATION GRANT

     Subtitle A--Adult Employment and Training Consolidation Grant

SEC. 301. PURPOSE.

    The purpose of this title is to establish an efficient, high-
quality, and equitable system of employment, job training, and related 
assistance designed to facilitate the transition of adults into 
productive private sector employment.

SEC. 302. AUTHORIZATION.

    (a) In General.--In the case of each State that in accordance with 
the requirements of section 102 submits to the Secretary of Labor 
(hereinafter in this title referred to as the ``Secretary'') a State 
workforce development and literacy plan under section 104, the 
Secretary shall provide a grant to the State for the purpose of 
providing employment, job training, and related assistance for adults 
in the State.
    (b) Amount.--The grant shall consist of the allotment determined 
for the State under section 303.

SEC. 303. ALLOTMENT AMONG STATES.

    (a) In General.--Of the amount appropriated pursuant to section 
4(b) to carry out this title for a fiscal year, the Secretary shall--
            (1) allot 85 percent of such amounts in accordance with 
        subsection (b); and
            (2) reserve 15 percent for use under subtitle B.
    (b) Allotment Among States.--
            (1) Reservation for the territories.--Of the amount 
        allotted under subsection (a)(1), the Secretary shall allot not 
        more than one quarter of one percent among the Commonwealth of 
        the Northern Mariana Islands, American Samoa, Guam, and the 
        Virgin Islands.
            (2) States.--After determining the amount to be allotted 
        under paragraph (1), the Secretary shall allot the remaining 
        amount to the remaining States so that each State receives an 
        amount that bears the same proportion to such remaining amount 
        as--
                    (A) the amount allotted to each such State from 
                allotments under sections 202 and 302 of the Job 
                Training Partnership Act (29 U.S.C. 1602 and 1652) (as 
                in effect before the date of the enactment of this Act) 
                for fiscal year 1995; bears to
                    (B) the aggregate of the amounts allotted to all 
                such States from allotments under such sections for 
                such fiscal year.

SEC. 304. ALLOCATION WITHIN STATES.

    (a) Reservations for State Activities.--
            (1) In general.--The Governor of the State shall reserve 
        not more than 20 percent of the amount allotted to the State 
        under section 303(b) for a fiscal year for statewide activities 
        for employment, job training, and related assistance for 
        adults.
            (2) Mandatory activities.--Such activities shall include--
                    (A) rapid response activities; and
                    (B) additional assistance to areas that experience 
                disasters, mass layoffs or plant closings, or other 
                events which precipitate substantial increases in the 
                number of unemployed workers, to be expended in 
                accordance with the local plan of the relevant 
                workforce development area.
            (3) Discretionary activities.--
                    (A) In general.--Such activities may include--
                            (i) subject to subparagraph (B), 
                        administration by the State of programs under 
                        this subtitle;
                            (ii) capacity building and technical 
                        assistance to local workforce development 
                        areas, one-stop career centers, and service 
                        providers, including the development and 
                        training of staff and the development of 
                        exemplary program activities;
                            (iii) incentives for program coordination, 
                        performance awards, and research and 
                        demonstrations;
                            (iv) implementation of innovative incumbent 
                        worker training programs, which may include the 
                        establishment and implementation of an employer 
                        loan program to assist in skills upgrading for 
                        non-managerial employees (in accordance with 
                        the requirements of section 315); and
                            (v) additional assistance for the 
                        development and implementation of the one-stop 
                        delivery system of the State established in 
                        accordance with title I of this Act.
                    (B) Limitation.--Not more than 5 percent of the 
                amount reserved by the Governor under paragraph (1) may 
                be used for administration by the State of programs 
                under this subtitle.
    (b) Within State Allocation.--The Governor of the State shall 
allocate the remainder of the amount allotted to the State under 
section 303(b) to workforce development areas designated under title I 
of this Act for the purpose of providing employment, job training, and 
related assistance for adults in such areas in accordance with section 
306.

SEC. 305. ADDITIONAL STATE PLAN REQUIREMENTS.

    The State shall, as part of the State workforce development and 
literacy plan under title I of this Act, submit to the Secretary the 
following additional information:
            (1) A description of how the State will serve the 
        employment and training needs of dislocated workers, 
        economically disadvantaged individuals, older workers, 
        individuals with disabilities, and individuals with multiple 
        barriers to employment, including individuals who are basic 
        skills deficient.
            (2) A description of how the State will provide rapid 
        response assistance to workers experiencing dislocation as a 
        result of mass layoffs and plant closings, either through the 
        direct provision of services or through the transfer of funds 
        to local workforce development areas for the provision of such 
        services.

SEC. 306. USE OF AMOUNTS.

    (a) Core Services.--Amounts allocated under section 304(b) shall be 
used to provide core services to adults through one-stop career centers 
in accordance with title I of this Act.
    (b) Intensive Services.--
            (1) In general.--Amounts allocated under section 304(b) may 
        be used to provide intensive services to adults--
                    (A) who are unable to obtain employment through 
                core services under subsection (a); and
                    (B) who have been determined to be in need of more 
                intensive services in order to gain employment.
            (2) Delivery of services.--Such intensive services shall be 
        provided--
                    (A) directly through one-stop career centers in 
                accordance with title I of this Act; or
                    (B) through contracts through such centers with 
                service providers approved by the local workforce 
                development board.
            (3) Types of services.--Such intensive services may include 
        the following:
                    (A) Comprehensive and specialized assessments of 
                the skill levels and service needs of adults, which may 
                include--
                            (i) diagnostic testing and other assessment 
                        tools; and
                            (ii) in-depth interviewing and evaluation 
                        to identify employment barriers and appropriate 
                        employment goals.
                    (B) Development of an individual employment plan, 
                to identify the employment goals, appropriate 
                achievement objectives, and the appropriate combination 
                of services for the adult to achieve the employment 
                goal.
                    (C) Group counseling.
                    (D) Individual counseling and career planning.
                    (E) Case management for adults receiving education 
                and training services under subsection (c) or 
                supportive services under subsection (d).
                    (F) Followup counseling for adults placed in 
                training or employment, for up to 1 year.
    (c) Education and Training Services.--
            (1) In general.--Amounts allocated under section 304(b) may 
        be used to provide education and training services to adults--
                    (A) who are unable to obtain employment through 
                core services under subsection (a); and
                    (B) who are in need of education and training 
                services in order to gain employment as a result of 
                determinations made through--
                            (i) preliminary assessments under section 
                        108(f)(1)(B) of this Act; or
                            (ii) comprehensive and specialized 
                        assessments under subsection (b)(3)(A).
            (2) Delivery of services.--Such education and training 
        services shall be provided through education and training 
        providers certified in accordance with title I of this Act.
            (3) Types of services.--Such education and training 
        services may include the following:
                    (A) Basic skills training, including remedial 
                education, literacy training, and English literacy 
                program instruction.
                    (B) Occupational skills training.
                    (C) On-the-job training.
                    (D) Programs that combine workplace training with 
                related instruction.
                    (E) Training programs operated by the private 
                sector.
                    (F) Skill upgrading and retraining.
                    (G) Entrepreneurial training.
                    (H) Employability training to enhance basic 
                workplace competencies.
                    (I) Customized training conducted with a commitment 
                by an employer or group of employers to employ an 
                individual upon successful completion of the training.
            (4) Additional requirements.--
                    (A) Use of vouchers.--(i) To the extent 
                practicable, education and training services under this 
                subsection shall be provided through the use of 
                vouchers in accordance with section 109.
                    (ii) A portion of the total payment for the 
                education and training provided by a service provider 
                to a participant pursuant to a voucher issued under 
                this subparagraph may be withheld from such provider 
                until--
                            (I) the participant has successfully 
                        completed the training; and
                            (II) the participant has been employed and 
                        retained employment for a period not less than 
                        90 days.
                    (B) Linkage to occupations in demand.--Education 
                and training services under this subsection shall be 
                directly linked to occupations for which there is a 
                demand in the local workforce development area, or in 
                another area to which an adult receiving such services 
                is willing to relocate.
    (d) Additional Services.--
            (1) Supportive services.--Supportive services may be 
        provided for individuals--
                    (A) who are receiving assistance under any of 
                subsections (a) through (c); and
                    (B) who are unable to receive such services through 
                other programs providing such services.
            (2) Needs-related payments.--
                    (A) In general.--Amounts allocated under section 
                304(b) may be used to provide needs-related payments to 
                adults who are unemployed and do not qualify for (or 
                have ceased to qualify for) unemployment compensation 
                for the purpose of enabling such adults to participate 
                in education and training programs under subsection 
                (c).
                    (B) Additional eligibility requirements.--In 
                addition to the requirements contained in subparagraph 
                (A), a dislocated worker who has exhausted unemployment 
                insurance benefits shall be eligible to receive needs-
                related payments under this paragraph only if such 
                worker was enrolled in education or training by the end 
                of the 8th week of the worker's initial unemployment 
                compensation benefit period, or, if later, by the end 
                of the 8th week after the worker is informed that a 
                short-term layoff will in fact exceed 6 months.
    (e) Prohibition on Private Right of Action.--Nothing in this 
section shall be construed to establish a right for a participant to 
bring an action to obtain services under a program established under 
this section.

SEC. 307. CORE STANDARDS, PERFORMANCE GOALS, AND MEASURES.

    (a) General Authority.--
            (1) Standards and measures.--Each State receiving a grant 
        under this title shall have developed or shall develop and 
        implement a statewide system of core standards and measures of 
        performance for programs established under this title, based 
        upon performance standards described in paragraph (2), and 
        consistent with the State's goals and objectives, and 
        benchmarking process described in the State plan required under 
        section 104.
            (2) Statewide system.--Each statewide system shall--
                    (A) establish or have established performance goals 
                to define the level of performance to be achieved by 
                adults served under this title and to evaluate the 
                quality and effectiveness of services and activities 
                under this title;
                    (B) express such goals in an objective, 
                quantifiable, and measurable form;
                    (C) establish performance indicators or benchmarks 
                that the State and local recipients of funds will use 
                in measuring or assessing progress toward achieving 
                such goals; and
                    (D) provide biennial reports to the public and to 
                the Secretary on the States progress in achieving its 
                goals.
    (b) Requirements.--Each system developed under subsection (a) shall 
include measures of--
            (1) placement, retention, and earnings of participants in 
        unsubsidized employment, including retention and earnings at 6 
        months, and at one year after program termination, 
        respectively;
            (2) the provision of services to dislocated workers, 
        economically disadvantaged individuals, older workers, 
        individuals with disabilities and individuals with multiple 
        barriers to employment, including individuals who are basic 
        skills deficient; and
            (3) acquisition of skills certificates pursuant to a skill 
        standards and skill certification system endorsed by the 
        National Skill Standards Board, once such system is 
        established.

                      Subtitle B--Federal Programs

SEC. 311. NATIONAL DISCRETIONARY GRANTS.

    (a) Grants for Dislocated Workers.--
            (1) In general.--From amounts reserved under section 
        303(a)(2) for any fiscal year, the Secretary is authorized to 
        award national discretionary grants to address major economic 
        dislocations that result from plant closures, base closures, or 
        mass layoffs.
            (2) Application.--To receive a grant under this section, an 
        eligible entity shall submit an application to the Secretary at 
        such time, in such manner, and accompanied by such information 
        as the Secretary determines is appropriate.
            (3) Eligible entities.--Grants under this section may be 
        awarded to--
                    (A) the State;
                    (B) a local workforce development board 
                administering assistance under this Act;
                    (C) employers and employer associations;
                    (D) worker-management transition assistance 
                committees and other employer-employee entities;
                    (E) representatives of employees;
                    (F) community development corporations and 
                community-based organizations; and
                    (G) industry consortia.
    (b) Incentive Grants.--From amounts reserved under section 
303(a)(2) for any fiscal year, the Secretary may provide performance 
awards to States that have achieved exceptional performance through the 
implementation of statewide workforce development systems.

SEC. 312. DISASTER RELIEF EMPLOYMENT ASSISTANCE.

    (a) In General.--From amounts reserved under section 303(a)(2) for 
any fiscal year, the Secretary may provide assistance to the Governor 
of any State within which is located an area that has suffered an 
emergency or a major disaster as defined in paragraphs (1) and (2), 
respectively, of section 102 of the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (referred to in this section as the 
``disaster area'').
    (b) Use of Funds.--
            (1) Projects restricted to disaster areas.--Funds made 
        available under this section--
                    (A) shall be used exclusively to provide employment 
                on projects to provide food, clothing, shelter, and 
                other humanitarian assistance for disaster victims and 
                on projects regarding demolition, cleanup, repair, 
                renovation, and reconstruction of damaged and destroyed 
                structures, facilities, and lands located within the 
                disaster area; and
                    (B) may be expended through public and private 
                agencies and organizations engaged in such projects.
            (2) Eligibility requirements.--An individual shall be 
        eligible to be offered disaster employment under this section 
        if such individual is a dislocated worker or is temporarily or 
        permanently laid off as a consequence of the disaster.
            (3) Limitations on disaster relief employment.--No 
        individual shall be employed under this part for more than 6 
        months for work related to recovery from a single natural 
        disaster.

SEC. 313. RESEARCH, DEMONSTRATION, EVALUATION, AND CAPACITY BUILDING.

    (a) In General.--From amounts reserved under section 303(a)(2) for 
any fiscal year, the Secretary shall establish and carry out research, 
demonstration, and capacity building activities in accordance with this 
section.
    (b) Activities.--The Secretary shall carry out the following 
activities under this section:
            (1) Research.--The Secretary shall conduct continuing 
        research, which may include studies and other methods and 
        techniques, that will aid in the solution of the employment and 
        training problems of the United States.
            (2) Demonstrations.--The Secretary shall conduct pilot and 
        demonstration projects for the purpose of developing and 
        improving methods and techniques for addressing employment and 
        training needs. The Secretary may award grants and enter into 
        contracts with entities to carry out such projects.
            (3) Evaluation.--
                    (A) Activities.--
                            (i) Job training activities.--The Secretary 
                        shall provide for the continuing evaluation of 
                        activities conducted under this Act, including 
                        the cost-effectiveness of such activities in 
                        achieving the purposes of this Act.
                            (ii) Other programs.--The Secretary may 
                        conduct evaluations of other federally funded 
                        employment-related activities including 
                        programs administered under--
                                    (I) the Wagner-Peyser Act (29 
                                U.S.C. 49 et seq.);
                                    (II) the National Apprenticeship 
                                Act (29 U.S.C. 50 et seq.);
                                    (III) the Older Americans Act of 
                                1965 (42 U.S.C. 3001 et seq.); and
                                    (IV) the Federal unemployment 
                                insurance program under titles III, IX, 
                                and XII of the Social Security Act (42 
                                U.S.C. 501 et seq., 1101 et seq., and 
                                1321 et seq.).
                    (B) Effectiveness.--The Secretary shall evaluate 
                the effectiveness of programs authorized under this Act 
                with respect to--
                            (i) the statutory goals;
                            (ii) the performance standards established 
                        by the Secretary; and
                            (iii) the extent to which such programs 
                        enhance the employment and earnings of 
                        participants, reduce income support costs, 
                        improve the employment competencies of 
                        participants in comparison to comparable 
                        persons who did not participate in such 
                        programs, and to the extent feasible, increase 
                        the level of total employment over the level 
                        that would have existed in the absence of such 
                        programs.
            (4) National partnership and special training.--The 
        Secretary may award special grants to eligible entities to 
        carry out activities that are most appropriately administered 
        at the national level. Such activities may include--
                    (A) partnerships with national organizations with 
                special expertise in developing, organizing, and 
                administering employment and training services at the 
                national, State, and local levels, such as industry and 
                labor associations, public interests groups, community-
                based organizations representative of groups that 
                encounter special difficulties in the labor market, in 
                education and training; and
                    (B) activities that--
                            (i) address industrywide skill shortages;
                            (ii) meet training needs that are best 
                        addressed on a multistate basis;
                            (iii) further the goals of increasing the 
                        competitiveness of the United States labor 
                        force; and
                            (iv) require technical expertise available 
                        at the national level to serve the needs of 
                        particular client groups that encounter 
                        significant barriers to employment and who the 
                        Secretary determines requires special 
                        assistance.
            (5) Capacity building and technical assistance.--
                    (A) In general.--The Secretary shall provide, 
                through grants, contracts, or other arrangements, staff 
                training and technical assistance to States, local 
                workforce development boards, career centers, 
                communities, business and labor organizations, service 
                providers, industry consortia, and other entities, to 
                enhance their capacity to develop and deliver effective 
                employment and training services.
                    (B) Activities.--The staff training and technical 
                assistance authorized under subparagraph (A) may 
                include--
                            (i) development of management information 
                        systems;
                            (ii) development and maintenance of a 
                        national capacity building, information and 
                        dissemination network; and
                            (iii) grants for the replication of 
                        successful employment and training models and 
                        activities.

SEC. 314. WORKFORCE SKILLS AND DEVELOPMENT LOANS.

    (a) Authorization.--
            (1) In general.--From amounts reserved under section 
        303(a)(2) for any fiscal year, the Secretary of Labor may use a 
        portion of such amounts to provide grants to States to provide 
        loans to eligible entities described in paragraph (2) to assist 
        such entities in providing skills upgrading for non-managerial 
        employees.
            (2) Eligible entities.--An eligible entity described in 
        this paragraph is--
                    (A) an employer;
                    (B) a representative of employees;
                    (C) a business association;
                    (D) a trade organization; or
                    (E) a consortium consisting of--
                            (i) more than 1 of the entities described 
                        in subparagraphs (A) through (D); or
                            (ii) an institution of higher education (as 
                        such term is defined in section 481 of the 
                        Higher Education Act of 1965 (20 U.S.C. 1088) 
                        which continues to meet the eligibility and 
                        certification requirements under section 498 of 
                        such Act) and 1 or more of the entities 
                        described in subparagraphs (A) through (D).
    (b) Application.--The Secretary may provide a grant to a State 
under subsection (a) only if such State submits to the Secretary an 
application which contains such information as the Secretary may 
reasonably require.
    (c) Use of Amounts.--A State shall use amounts received from a 
grant under subsection (a) to establish a loan guarantee program to 
assist eligible entities described in paragraph (2) of such subsection 
to provide skills upgrading for non-managerial employees. In carrying 
out such program, the State shall meet the following requirements:
            (1) Establishment of reserve fund for loan guarantees.--The 
        State shall establish a reserve fund from amounts received from 
        such grant for the purpose of making commitments to guarantee 
        the payment of principal and interest on loans made by 
        financial institutions to such eligible entities to provide 
        skills upgrading for non-managerial employees.
            (2) Criteria for loan guarantees.--The State, in 
        conjunction with appropriate financial institutions, shall 
        establish and publish criteria for providing loan guarantees to 
        eligible entities under the program, including criteria that 
        provides for the following:
                    (A) A loan guarantee may be issued under the 
                program only if, at the time such guarantee is issued 
                the eligible entity agrees to pay as an insurance 
                premium an amount equal to 1 percent of the principal 
                received by such entity under the loan to the State's 
                reserve fund.
                    (B)(i) Subject to clause (ii), the eligible entity 
                will use amounts received from the loan to provide 
                skills upgrading for mid- and lower-level employees, 
                which may include--
                            (I) training in total quality management, 
                        statistical process control, production 
                        techniques, office automation, materials 
                        resource planning; and
                            (II) training to improve basic skills, 
                        including reading, writing, and arithmetic.
                    (ii) In providing such skills upgrading, the 
                eligible entity shall give priority to nonmanagerial 
                employees who--
                            (I) directly produce or deliver goods or 
                        services; or
                            (II) are in danger of being terminated or 
                        laid off as a result of modernization in the 
                        workplace, corporate downsizing, foreign or 
                        domestic competition, or Federal policies 
                        adversely affecting 1 or more industries.
                    (C) Amounts from a loan shall not be used to pay 
                the wages or other benefits of any employee receiving 
                assistance under the program.
            (3) Payment by state to financial institutions in cases of 
        default.--
                    (A) In general.--In accordance with criteria 
                developed by the Secretary, the State shall make 
                payments from the State's reserve fund to financial 
                institutions that have provided loans to eligible 
                entities that have defaulted on such loans for the 
                purpose of reimbursing such institutions for the amount 
                of principal and interest remaining unpaid to the 
                institutions by reason of such default.
                    (B) No full faith and credit of the united 
                states.--Loans provided by financial institutions to 
                eligible entities under loan guarantee programs under 
                this section shall not be obligations of, or guaranteed 
                in any respect by, the United States.
            (4) Limitations on loan guarantees.--The authority of a 
        State to extend loan guarantees under this section shall not at 
        any time exceed an amount equal to 1,000 percent of the 
        aggregate principal amount in the State's reserve fund.
            (5) Interest from amounts in reserve fund.--Any interest 
        earned from amounts in the State's reserve fund shall be 
        credited to such fund.
    (d) Federal and State Share.--
            (1) Federal share.--The Federal share under this section 
        may not exceed 50 percent of the total cost of the program 
        established under subsection (c) for any fiscal year.
            (2) State share.--The State share shall be provided from 
        non-Federal sources and may be in cash or in-kind, fairly 
        evaluated.

SEC. 315. EMPLOYMENT, TRAINING, AND EDUCATION ASSISTANCE FOR NATIVE 
              AMERICANS.

    (a) Authorization.--From amounts reserved under section 303(a)(2) 
for any fiscal year, the Secretary of Labor shall provide grants to, or 
enter into contracts or cooperative agreements with, Indian tribes and 
tribal organizations, tribally-controlled colleges, tribally-controlled 
postsecondary vocational institutions, Indian-controlled organizations 
serving off-reservation areas, Alaska Native village and regional 
entities serving areas as described in the Alaska Native Claims 
Settlement Act and Hawaiian Native-controlled organizations to provide 
employment, training, vocational rehabilitation, library services, and 
education assistance for Native Americans.
    (b) Transfer of Authority for Vocational Education Activities.--In 
carrying out subsection (a), the Secretary of Labor may enter into an 
agreement with the Secretary of Education to carry out any portion of 
assistance under such subsection devoted to vocational educational 
activities, including support for the United Tribes Technical College 
and Crowpoint Institute of Technology.
    (c) Consolidation of Funds.--Entities receiving assistance under 
subsection (a) may consolidate such assistance with assistance received 
from related programs in accordance with the provisions of the Indian 
Employment, Training and Related Services Demonstration Act (Public Law 
102-477).
    (d) Regulations.--The Secretary shall consult with Indian, Alaska 
Native and Hawaiian Native groups in establishing regulations to carry 
out this section, including performance standards for entities 
receiving assistance under subsection (a), taking into account the 
economic circumstances of such groups.

SEC. 316. EMPLOYMENT, TRAINING, AND EDUCATION ASSISTANCE FOR MIGRANT 
              AND SEASONAL FARMWORKERS.

    (a) Authorization.--
            (1) In general.--From amounts reserved under section 
        303(a)(2) for any fiscal year, the Secretary of Labor shall 
        provide grants to, or enter into contracts or cooperative 
        agreements with, entities described in paragraph (2) to provide 
        employment, training, and education assistance for migrant and 
        seasonal farmworkers.
            (2) Entities described.--An entity described in this 
        paragraph is an entity the Secretary determines to have the 
        capacity to administer effectively a diversified development 
        program for migrant and seasonal farmworkers.
    (b) Use of Amounts.--An entity shall use amounts received under 
subsection (a) to provide employment, training, educational 
development, high school equivalency, postsecondary education 
assistance, vocational rehabilitation, literacy, English as a second 
language, work-based education and development, worker safety training, 
employability enhancements, emergency or other disaster relief, 
technical assistance, outreach, intake, assessment, follow-up, stipend 
support, supportive services, other needs-based assistance, and self-
employment and related business enterprise development education.
    (c) Transfer of Authority for Education Activities.--In carrying 
out subsection (b), the Secretary of Labor may enter into an agreement 
with the Secretary of Education to carry out any portion of assistance 
under such subsection devoted to education activities.
  TITLE IV--ADULT EDUCATION, FAMILY LITERACY, AND LIBRARY TECHNOLOGY 
                          CONSOLIDATION GRANT

SEC. 401. FINDINGS AND PURPOSE.

    (a) Findings.--The Congress finds as follows:
            (1) According to the 1990 census, 21 percent of our 
        Nation's adults (more than 38 million persons) lack a high 
        school credential or are limited English proficient.
            (2) The National Adult Literacy Survey, conducted under the 
        Adult Education Act, found that 20 percent of all adults in the 
        United States, or about 40 million people, have minimal levels 
        of literacy skills and that the lack of such skills is related 
        to unemployment, low wages, and fewer weeks worked.
            (3) The success of State efforts to reform and improve 
        public education are dependent on the ability of the United 
        States to break intergenerational cycles of illiteracy and 
        inadequate education by ensuring that parents possess a strong 
        educational foundation and, as the first and most continuous 
        teachers of their children, model for, and instill in, their 
        children a commitment to family literacy and life-long 
        learning.
            (4) Generations of immigrants have contributed to our 
        communities and our economy, but for them to continue to do so 
        given recent technologies and the competitive global economy, 
        they must master English as rapidly as possible.
            (5) Studies have found that incarcerated adults are twice 
        as likely as nonincarcerated adults to lack a good education 
        and that such lack is a significant statistical indicator of 
        recidivism.
            (6) Certain short-term and long-term goals of the Nation 
        may not be met unless the United States improves its current 
        system of adult education and lifelong learning through Federal 
        leadership.
    (b) Purpose.--The purposes of this title are as follows:
            (1) To assist States to provide--
                    (A) to adults, the basic educational skills 
                necessary for employment and self-sufficiency;
                    (B) to adults who are parents, the educational 
                skills necessary to be full partners in the educational 
                development of their children;
                    (C) to adults, the basic English language skills 
                necessary to participate in the civic, social, and 
                economic life of the United States; and
                    (D) to adults, the opportunity to attain a high 
                school degree or its equivalent in order to permit them 
                to pursue further education and training or improve 
                their family and work situations.
            (2) To provide electronic linkages among libraries and one-
        stop career center systems.

SEC. 402. DEFINITIONS.

    As used in this title:
            (1) Correctional education agency.--The term ``correctional 
        education agency'' means an entity that provides programs for 
        criminal offenders in corrections institutions and for other 
        institutionalized individuals which include academic programs 
        for basic education, special education, bilingual or English 
        language instruction, vocational training, library development, 
        corrections education programs, guidance and counseling, and 
        other supportive services for criminal offenders which may 
        emphasize coordination of educational services with educational 
        institutions, community-based organizations of demonstrative 
        effectiveness, and the private sector, designed to provide 
        education and training.
            (2) Educationally disadvantaged adult.--The term 
        ``educationally disadvantaged adult'' means an adult who--
                    (A) demonstrates basic skills equivalent to or 
                below that of students at the fifth grade level; or
                    (B) has been placed in the lowest or beginning 
                level of an adult education program when that program 
                does not use grade level equivalencies as a measure of 
                students' basic skills.
            (3) Family literacy services.--The term ``family literacy 
        services'' means services that integrate all of the following 
        activities and are of sufficient intensity in terms of hours, 
        and of sufficient duration, to make sustainable changes in a 
        family:
                    (A) Interactive literacy activities between parents 
                and their children.
                    (B) Training for parents on how to be their 
                children's primary teacher and full partners in the 
                education of their children.
                    (C) Parent literacy training.
                    (D) Early childhood education.
            (4) Library.--The term ``library'' includes--
                    (A) a public library;
                    (B) a public elementary or secondary school 
                library;
                    (C) an academic library;
                    (D) a research library; and
                    (E) a private library, but only if the State in 
                which such private library is located determines that 
                the library should be considered a library for purposes 
                of this title.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Education.

                          Subtitle A--Funding

SEC. 411. RESERVATIONS FROM AMOUNTS APPROPRIATED.

    (a) National Competitive Incentive Grants.--For fiscal year 1998 
and any succeeding fiscal year, the Secretary shall reserve $20,000,000 
of the amount appropriated under section 4 to provide the grants under 
section 431.
    (b) National Institute for Literacy.--For any fiscal year, the 
Secretary shall reserve $4,500,000 of the amount appropriated under 
section 4 to carry out the activities of the National Institute for 
Literacy described in section 432.
    (c) National Leadership Activities.--For any fiscal year, the 
Secretary shall reserve $4,500,000 of the amount appropriated under 
section 4 to establish and carry out the program of national leadership 
and evaluation activities described in section 433.

SEC. 412. ALLOTMENT.

    (a) Initial Allotment.--From the sums available for the purpose of 
making grants under subtitle B for any fiscal year, the Secretary shall 
allot--
            (1) $100,000 each to Guam, American Samoa, the Commonwealth 
        of the Northern Mariana Islands, and the Virgin Islands; and
            (2) $250,000 to each of the other States.
    (b) Additional Allotment.--
            (1) Division of remaining amounts.--For any fiscal year, 
        the Secretary shall divide the remainder of the sums available 
        for the purpose of making grants under subtitle B for the year 
        after the application of subsection (a) into--
                    (A) a portion equal to 66 and \2/3\ percent of such 
                remainder; and
                    (B) a portion equal to 33 and \1/3\ percent of such 
                remainder.
            (2) Formulas.--
                    (A) In general.--The additional allotment to a 
                State for a fiscal year shall equal the sum of the 
                allotment to the State under subparagraph (B) and the 
                allotment to the State under subparagraph (C) for the 
                year.
                    (B) Allotment based on qualifying adults.--From the 
                portion referred to in paragraph (1)(A), the Secretary 
                shall allot to each State an amount which bears the 
                same ratio to such portion as the number of qualifying 
                adults in the State bears to the number of such adults 
                in all States.
                    (C) Allotment based on population.--From the 
                portion referred to in paragraph (1)(B), the Secretary 
                shall allot to each State an amount which bears the 
                same ratio to such portion as the population of the 
                State bears to the population of all the States.
            (3) Qualifying adult.--For purposes of paragraph (2)(B), 
        the term ``qualifying adult'' means an adult who--
                    (A) is at least 16 years of age, but less than 61 
                years of age;
                    (B) is beyond the age of compulsory school 
                attendance under State law;
                    (C) does not have a certificate of graduation from 
                a school providing secondary education (or its 
                equivalent); and
                    (D) is not currently enrolled in elementary or 
                secondary school.

                      Subtitle B--Grants to States

SEC. 421. REQUIREMENT TO MAKE GRANTS.

    The Secretary shall make a grant for a fiscal year to a State in an 
amount equal to the initial and additional allotments of the State for 
the year if the State--
            (1) has satisfied the requirements of title I and section 
        423(a)(1);
            (2) enters into a written agreement with the Secretary that 
        the State--
                    (A) will not expend the grant for any purpose other 
                than in accordance with section 422;
                    (B) will satisfy the grant requirements in section 
                423(a)(2) and 423(b); and
                    (C) will not expend the grant for the purpose of 
                supporting or providing programs, services, or 
                activities for individuals who are not adults, except 
                if such programs, services, or activities are related 
                to family literacy services.

SEC. 422. USES OF FUNDS.

    (a) State Uses of Funds.--
            (1) Grants to local service providers.--Of the funds paid 
        to a State under this title, at least 55 percent shall be 
        distributed as grants made by the State on a competitive basis, 
        and consistent with subsection (b) and section 423(b)(2), to 
        local service providers to establish, conduct, or expand 
        programs, services, or activities to achieve the purposes of 
        this title. Such local service providers may include the 
        following:
                    (A) Local educational agencies.
                    (B) Correctional educational agencies.
                    (C) Community-based organizations.
                    (D) Public or private nonprofit agencies.
                    (E) Institutions of higher education.
                    (F) Libraries.
                    (G) Other institutions that the State determines to 
                have the ability to provide literacy services to adults 
                and families.
            (2) Library technology.--Of the funds paid to a State under 
        this title, the State shall provide 30 percent to the State 
        library administrative agency for the State. Such agency shall 
        expend such funds for one or more of the following purposes:
                    (A) Electronically connecting libraries with one-
                stop career center systems designated or established 
                under section 108 and local service providers receiving 
                grants under paragraph (1).
                    (B) Establishing or enhancing linkages among 
                libraries.
                    (C) Assisting libraries in accessing information 
                through electronic networks.
                    (D) Encouraging libraries in different Federal, 
                State, and local jurisdictions, and different types of 
                libraries, to establish consortia and share resources.
                    (E) Paying costs for libraries to acquire or share 
                computer systems and telecommunications technologies.
            (3) Other State activities.--A State may use not more than 
        10 percent of the funds paid to the State under this title for 
        one or more of the following purposes:
                    (A) The establishment or operation of professional 
                development programs to improve the quality of 
                instruction provided in local adult education and 
                literacy programs, including instruction provided by 
                volunteers.
                    (B) The provision of technology assistance to local 
                service providers to enable them to improve the quality 
                of their programs, services, and activities that 
                achieve the purposes of this title, including--
                            (i) providing hardware and software;
                            (ii) paying for service connection fees 
                        associated with gaining access to computerized 
                        databases; and
                            (iii) upgrading the technological 
                        capabilities of local service providers to 
                        improve the quality of their services and to 
                        assist them in providing services on a flexible 
                        schedule that meets the needs of diverse 
                        populations.
                    (C) The support of State or regional networks of 
                literacy resource centers that--
                            (i) enhance the coordination of literacy 
                        services across public and private programs and 
                        State agencies;
                            (ii) enhance the capacity of the State and 
                        local service providers to provide literacy 
                        services through the diffusion and adoption of 
                        state-of-the-art teaching methods and 
                        technologies;
                            (iii) provide linkages between the National 
                        Institute for Literacy established under 
                        section 432 and local service providers for the 
                        sharing of literacy information, research, and 
                        resources;
                            (iv) encourage government and industry 
                        partnerships; and
                            (v) provide training and technical 
                        assistance to literacy instructors in reading 
                        instruction, the use of state-of-the-art 
                        methodologies, instructional materials, and 
                        technologies, and professional development.
                    (D) Monitoring and evaluating the quality of, and 
                the improvement in, services and activities conducted 
                with Federal financial assistance under this title, 
                including carrying out section 423(a)(2).
                    (E) Carrying out other activities of statewide 
                significance that promote the purposes of this Act.
            (4) Administrative expenses.--In any fiscal year, a State 
        may use not more than 5 percent of the funds paid to the State 
        under this title or $50,000, whichever is greater, for--
                    (A) planning, administration, technical assistance 
                to local service providers, and interagency 
                coordination, associated with a grant under this title; 
                and
                    (B) support for one-stop career center systems 
                described in section 108.
    (b) Local Uses of Funds.--A State shall require that a local 
service provider that receives a grant from the State under subsection 
(a)(1) use the grant to establish or operate one or more programs that 
provide instruction or services within one or more of the following 
categories:
            (1) Adult basic education that is designed for an adult 
        who--
                    (A) has minimal competence in reading, writing, or 
                computation;
                    (B) is not sufficiently competent in reading, 
                writing, or computation to meet the requirements of 
                adult life in the United States; or
                    (C) is not sufficiently competent in speaking, 
                reading, or writing the English language to obtain 
                employment commensurate with the adult's intellectual 
                abilities.
            (2) Adult secondary education that is designed for an adult 
        who is literate and can function in everyday life, but who--
                    (A) has not acquired basic educational skills, 
                including reading, writing, and computation; or
                    (B) does not have a certificate of graduation from 
                a school providing education to students in grade 12, 
                or its equivalent.
            (3) English literacy instruction that is designed for an 
        adult--
                    (A) who--
                            (i) has limited ability in speaking, 
                        reading, writing, or understanding the English 
                        language and whose native language is a 
                        language other than English; or
                            (ii) lives in a family or community 
                        environment where a language other than English 
                        is the dominant language; and
                    (B) who, by reason of a condition described in 
                subparagraph (A), has sufficient difficulty reading, 
                writing, or understanding the English language the 
                adult is unable--
                            (i) to learn successfully in a classroom 
                        where the language of instruction is English; 
                        or
                            (ii) to participate fully in the society of 
                        the United States.
            (4) Family literacy services.

SEC. 423. ADDITIONAL GRANT REQUIREMENTS.

    (a) Goals, Progress Indicators, Performance Measures.--
            (1) Planning requirements.--A State that desires to receive 
        a grant under this title shall accomplish the following:
                    (A) Establish, through the collaborative process 
                described in section 103, measurable goals for 
                improving literacy levels, retention in
                 literacy programs, and long-term learning gains of 
individuals in the State.
                    (B) Based on such goals and the performance 
                measures described in section 424, establish, through 
                such collaborative process, progress indicators to be 
                used to evaluate the performance of local service 
                providers receiving a grant under section 422(a)(1).
                    (C) Describe such goals and progress indicators in 
                the State workforce development and literacy plan 
                submitted to the Secretary under section 104.
            (2) Implementation requirements.--A State that receives a 
        grant under this title shall accomplish the following:
                    (A) With respect to each local service provider 
                receiving a grant under section 422(a)(1), based on the 
                goals and progress indicators established under 
                paragraph (1), measure the performance measures 
                described in section 424 and use the data produced by 
                such measurement to improve the quality of services 
                provided to program participants or service recipients.
                    (B) Beginning on the date that is 2 years after the 
                first date that a local service provider receives a 
                grant under section 422(a)(1), annually assess the 
                degree to which the provider is meeting or exceeding 
                the progress indicators applicable to the provider.
                    (C) Annually report to the Secretary on the 
                performance measures described in section 424 for each 
                category described in such section.
    (b) Other Requirements.--A State that receives a grant under this 
title shall ensure the following:
            (1) Expenditures of non-federal funds.--For any fiscal year 
        for which a grant is made to the State under this title, the 
        State shall expend, on programs and activities relating to 
        adult education and family literacy services, an amount, 
        derived from sources other than the Federal Government, equal 
        to 25 percent of the State's initial and additional allotments 
        for the year.
            (2) Priority for planning with boards and systems.--In 
        awarding grants to local service providers under section 
        422(a)(1), the State shall give priority to providers that 
        demonstrate joint planning with local workforce development 
        boards and one-stop career center systems.
            (3) Equitable access.--Local educational agencies, public 
        or private nonprofit agencies, community-based organizations, 
        correctional education agencies, institutions of higher 
        education, libraries, and institutions which serve 
        educationally disadvantaged adults shall be provided equitable 
        access to Federal funds provided under this title in accordance 
        with this title.
            (4) Payments by one-stops to local service providers.--A 
        one-stop career center system that refers an individual to a 
        local service provider that--
                    (A) is receiving a grant from the State under 
                section 422(a)(1) shall pay to such provider, in 
                accordance with the biennial strategic plan of the 
                local workforce development board pursuant to which 
                such center is established or designated, an amount 
                appropriate to pay for the services required by the 
                individual with respect to which the reference is made; 
                or
                    (B) is not receiving such a grant but is providing 
                adult education or literacy services shall pay to such 
                provider, in accordance with such plan, such amount if 
                the State has certified that such provider is eligible 
                to receive such funds.
SEC. 424. PERFORMANCE MEASURES.

    A State that receives a grant under this title for a fiscal year 
shall measure the performance in the following categories for such year 
of the programs, services, and activities carried out by each local 
service provider receiving a grant under section 422(a)(1):
            (1) The percentage of adults served who, based on skills or 
        abilities acquired through such a program, service, or 
        activity--
                    (A) read to their children;
                    (B) provide support to their children in the 
                completion of homework assignments;
                    (C) participate on an ongoing basis in activities 
                that support their childrens' schools;
                    (D) enrolled in institutions of higher education or 
                occupational training;
                    (E) obtained a job;
                    (F) advanced in their job; or
                    (G) performed new job requirements essential to 
                retaining their job.
            (2) The percentage of adults served who, based on skills or 
        abilities acquired through such a program, service, or 
        activity--
                    (A) obtained a high school diploma;
                    (B) obtained a high school equivalency diploma; or
                    (C) increased their literacy skills in a manner 
                that enabled them to operate more effectively in their 
                home and community.
            (3) The percentage of adults served who, based on skills or 
        abilities acquired through such a program, service, or 
        activity--
                    (A) register to vote;
                    (B) obtain United States citizenship; or
                    (C) seek preventive health services.
            (4) The percentage of incarcerated adults served who, based 
        on skills or abilities acquired through such a program, 
        service, or activity, upon the termination of the period of 
        their incarceration--
                    (A) enrolled in job training or education programs;
                    (B) obtained employment; or
                    (C) returned to society prepared to function 
                independently.

                     Subtitle C--National Programs

SEC. 431. NATIONAL COMPETITIVE INCENTIVE GRANTS.

    (a) Authority to Select Eligible States.--
            (1) State plan.--A State that desires to receive an 
        incentive grant under this section shall submit to the 
        Secretary, by a date specified by the Secretary, a plan, to be 
        implemented in the fiscal year preceding any fiscal year for 
        which the State desires the grant, that describes--
                    (A) a methodology by which the State educational 
                agency for the State will collaborate with other State 
                agencies to provide to the target populations described 
                in subsection (c) services to raise their level of 
                education and improve their employment skills; and
                    (B) goals and performance measures that permit the 
                success of such methodology and services to be measured 
                objectively.
            (2) Selection of states.--Based on the quality of the plans 
        submitted under paragraph (1) for a fiscal year, the Secretary 
        shall designate not more than 10 States as meeting the 
        preliminary criterion for receipt of an incentive grant under 
        this section for such year.
            (3) Plan implementation.--A State designated under 
        paragraph (2) that desires to receive an incentive grant shall 
        implement the plan submitted under paragraph (1).
            (4) Evaluation of success.--Not earlier than the 
        termination of the 1-year period beginning on the date a State 
        is designated under paragraph
         (2), the Secretary shall determine whether the State is 
successfully implementing the plan submitted by the State under 
paragraph (1) and achieving the goals set forth in the plan.
    (b) Requirement to Make Grants.--
            (1) In general.--Beginning in fiscal year 1998 and 
        thereafter, the Secretary shall make an incentive grant for a 
        fiscal year to each State that the Secretary determines, under 
        subsection (a)(4), is successfully implementing the plan 
        submitted by the State under subsection (a)(1) and achieving 
        the goals set forth in the plan.
            (2) Amount of grant.--A grant to a State for a fiscal year 
        under paragraph (1) shall be in an amount equal to the 
        allotment of the State for the year under paragraph (3).
            (3) Allotment.--
                    (A) In general.--From the sums available for a 
                fiscal year for the purpose of making grants under this 
                section, the Secretary shall allot to each State 
                described in paragraph (1) an amount determined through 
                the application of the formula described in 
                subparagraph (B).
                    (B) Formula.--The Secretary shall develop a formula 
                for determining an appropriate allotment to a State 
                under this subsection. Such formula shall be based on 
                the population of the State and the success of the 
                State in achieving the goals set forth in the plan 
                submitted by the State under subsection (a)(1).
    (c) Target Populations.--The target populations referred to in 
subsection (a) are the following:
            (1) Parents who are educationally disadvantaged adults and 
        who have a child who is less than 8 years of age.
            (2) Families on public assistance (as determined by the 
        State submitting the plan under subsection (a)(1)).
            (3) Adults with more than one barrier to self-sufficiency 
        such as being unemployed or an educationally disadvantaged 
        adult.

SEC. 432. NATIONAL INSTITUTE FOR LITERACY.

    (a) Establishment.--
            (1) In general.--There shall be established a National 
        Institute for Literacy (in this section referred to as the 
        ``Institute''). The Institute shall be administered under the 
        terms of an interagency agreement entered into by the Secretary 
        of Education with the Secretary of Labor and the Secretary of 
        Health and Human Services (in this section referred to as the 
        ``Interagency Group''). The Secretary may include in the 
        Institute any research and development center, institute, or 
        clearinghouse established within the Department of Education 
        whose purpose is determined by the Secretary to be related to 
        the purpose of the Institute.
            (2) Board recommendations.--The Interagency Group shall 
        consider the recommendations of the National Institute for 
        Literacy Advisory Board (in this section referred to as the 
        ``Board'') established under subsection (d) in planning the 
        goals of the Institute and in the implementation of any 
        programs to achieve such goals.
            (3) Daily operations.--The daily operations of the 
        Institute shall be carried out by the Director of the Institute 
        appointed under subsection (g).
    (b) Duties.--
            (1) In general.--The Institute shall--
                    (A) provide national leadership for the improvement 
                and expansion of the system for delivery of literacy 
                services;
                    (B) coordinate the delivery of such services;
                    (C) support the creation of new methods of offering 
                improved services; and
                    (D) serve as a national resource for adult 
                education and family literacy services by providing to 
                the public the best and most current information 
                available on the subjects.
            (2) Authorized activities.--In order to carry out the 
        duties described in paragraph (1), the Institute may--
                    (A) establish a national electronic database of 
                information that includes--
                            (i) information on--
                                    (I) effective practices in the 
                                provision of literacy and basic skills 
                                instruction;
                                    (II) public and private literacy 
                                and basic skills programs and Federal, 
                                State, and local policies affecting the 
                                provision of literacy services at the 
                                national, State, and local levels; and
                                    (III) technical assistance, 
                                meetings, conferences, and other 
                                opportunities that lead to the 
                                improvement of literacy and basic 
                                skills services; and
                            (ii) a communication network for literacy 
                        programs, providers, and students;
                    (B) coordinate support for the provision of 
                literacy and basic skills services across Federal 
                agencies and at the State and local level;
                    (C) coordinate the support of research and 
                development on literacy and basic skills in families 
                and adults across Federal agencies and carry out basic 
                and applied research and development on topics that are 
                not being investigated by other organizations or 
                agencies.
                    (D) collect and disseminate information on methods 
                of advancing literacy that show promise of success.
                    (E) work with the National Education Goals Panel 
                established under Goals 2000: Educate America Act to 
                assist local, State, and national organizations and 
                agencies in making and measuring progress toward the 
                National Education Goals established under such Act; 
                and
                    (F) assist in the development of policy with 
                respect to literacy and basic skills.
            (3) Grants, contracts, and agreements.--The Institute may 
        enter into contracts or cooperative agreements with, or make 
        grants to, individuals, public or private institutions, 
        agencies, organizations, or consortia of such institutions, 
        agencies, or organizations to carry out the activities of the 
        Institute. Such grants, contracts, or agreements shall be 
        subject to the laws and regulations that generally apply to 
        grants, contracts, or agreements entered into by Federal 
        agencies.
    (c) Literacy Leadership.--
            (1) Fellowships.--The Institute, in consultation with the 
        Board, may award fellowships, with such stipends and allowances 
        as the Director considers necessary, to outstanding individuals 
        pursuing careers in adult education or literacy in the areas of 
        instruction, management, research, or innovation.
            (2) Use of fellowships.--Fellowships awarded under this 
        subsection shall be used, under the auspices of the Institute, 
        to engage in research, education, training, technical 
        assistance, or other activities to advance the field of adult 
        education or literacy, including the training of volunteer 
        literacy providers at the national, State, or local level.
            (3) Interns and volunteers.--The Institute, in consultation 
        with the Board, may award paid and unpaid internships to 
        individuals seeking to assist the Institute in carrying out its 
        mission. Notwithstanding section 1342 of title 31, United 
        States Code, the Institute may accept and use voluntary and 
        uncompensated services as the Institute determines necessary.
    (d) National Institute for Literacy Advisory Board.--
            (1) Establishment.--
                    (A) In general.--There shall be a National 
                Institute for Literacy Advisory Board. The Board shall 
                consist of 10 individuals appointed by the President 
                with the advice and consent of the Senate from 
                individuals who--
                            (i) are not otherwise officers or employees 
                        of the Federal Government; and
                            (ii) are representative of entities or 
                        groups described in subparagraph (B).
                    (B) Entities or groups described.--The entities or 
                groups referred to in subparagraph (A) are--
                            (i) literacy organizations and providers of 
                        literacy services, including--
                                    (I) nonprofit providers of literacy 
                                services;
                                    (II) providers of programs and 
                                services involving English language 
                                instruction; and
                                    (III) providers of services 
                                receiving assistance under this title;
                            (ii) businesses that have demonstrated 
                        interest in literacy programs;
                            (iii) literacy students;
                            (iv) experts in the area of literacy 
                        research;
                            (v) State and local governments; and
                            (vi) organized labor.
            (2) Duties.--The Board shall--
                    (A) make recommendations concerning the appointment 
                of the Director and staff of the Institute;
                    (B) provide independent advice on the operation of 
                the Institute; and
                    (C) receive reports from the Interagency Group and 
                the Director.
            (3) Terms.--
                    (A) In general.--Each member of the Board shall be 
                appointed for a term of 3 years, except that the 
                initial terms for members may be 1, 2, or 3 years in 
                order to establish a rotation in which \1/3\ of the 
                members are selected each year.
                    (B) Vacancy appointments.--Any member appointed to 
                fill a vacancy occurring before the expiration of the 
                term for which the member's predecessor was appointed 
                shall be appointed only for the remainder of that term. 
                A member may serve after the expiration of that 
                members' term until a successor has taken office. A 
                vacancy in the Board shall be filled in the manner in 
                which the original appointment was made. A vacancy in 
                the Board shall not affect the powers of the Board.
            (4) Quorum.--A majority of the members of the Board shall 
        constitute a quorum but a lesser number may hold hearings. Any 
        recommendation may be passed only by a majority of its members 
        present.
            (5) Chairperson and vice chairperson.--The chairperson and 
        vice chairperson of the Board shall be elected by the members. 
        The term of office of the chairperson and vice chairperson 
        shall be 1 year.
            (6) Meetings.--The Board shall meet at the call of the 
        chairperson or a majority of its members.
    (e) Gifts, Bequests, and Devises.--The Institute may accept, 
administer, and use gifts or donations of services, money, or property, 
both real and personal.
    (f) Mails.--The Board and the Institute may use the United States 
mails in the same manner and under the same conditions as other 
departments and agencies of the United States.
    (g) Staff.--The Interagency Group, after considering 
recommendations made by the Board, shall appoint and fix the pay of a 
Director.
    (h) Applicability of Certain Civil Service Laws.--The Director and 
staff of the Institute may be appointed without regard to the 
provisions of title 5, United States Code, governing appointments in 
the competitive service, and may be paid without regard to the 
provisions of chapter 51 and subchapter III of chapter 53 of that title 
relating to classification and General Schedule pay rates, except that 
an individual so appointed may not receive pay in excess of the maximum 
rate payable under section 5376 of title 5, United States Code.
    (i) Experts and Consultants.--The Board and the Institute may 
procure temporary and intermittent services under section 3109(b) of 
title 5, United States Code.
    (j) Report.--The Institute shall submit a biennial report to the 
Interagency Group and the Congress.

SEC. 433. NATIONAL LEADERSHIP ACTIVITIES.

    (a) In General.--The Secretary may establish and carry out a 
program of national leadership and evaluation activities to enhance the 
quality of adult education and family literacy programs nationwide. 
Such activities may include the following:
            (1) Research and development.
            (2) Demonstration of model and innovative programs.
            (3) Evaluations, including independent evaluations of adult 
        education and family literacy programs carried out with 
        financial assistance received pursuant to this title.
            (4) Data collection.
            (5) Professional development.
            (6) Technical assistance to States and local service 
        providers receiving Federal financial assistance pursuant to 
        this title.
            (7) Other activities to enhance the quality of adult 
        education and family literacy programs nationwide.
    (b) Grants, Contracts, and Cooperative Agreements.--The Secretary 
may carry out the activities described in subsection (a) directly or 
through grants, contracts, and cooperative agreements.
           TITLE V--AMENDMENTS TO REHABILITATION ACT OF 1973

       Subtitle A--Vocational Rehabilitation Consolidation Grant

                      CHAPTER 1--TRANSITION PERIOD

SEC. 501. TRANSITION.

    With respect to the amendment made by section 511(4) to title I of 
the Rehabilitation Act of 1973, the Secretary of Education, acting 
through the Commissioner of the Rehabilitation Services Administration, 
shall administer the amendment in accordance with the following:
            (1) During fiscal year 1996, the Secretary shall develop 
        administrative policies for implementing the amendment.
            (2) During the fiscal years 1997 and 1998, the Secretary 
        shall begin implementing the amendment in accordance with 
        paragraph (4).
            (3) The Secretary shall ensure that, by the first day of 
        fiscal year 1999, the amendment is fully implemented.
            (4) For purposes of paragraph (2), the Secretary shall 
        ensure that, before the first day of fiscal year 1999, the 
        following requirements (administered as conditions on the 
        receipt of grants under such title) have been met:
                    (A) The States have complied with section 103(b)(4) 
                of such title (as amended by section 511) regarding the 
                participation of certain providers.
                    (B) The States have established policies and made 
                arrangements for the operation of the system of 
                vouchers described in section 103(c) of such title, 
                including with respect to the reimbursement of 
                providers.
                    (C) The States have established policies and made 
                arrangements under section 103(b)(11) of such title 
                regarding the training of the management and staff of 
                one-stop career centers with respect to individuals 
                with disabilities.
                    (D) The States have established policies and made 
                arrangements under section 104 of such title regarding 
                the establishment of such centers, including providing 
                for the significant participation of community-based 
                providers in the program carried out by the State 
                pursuant to such title.
                    (E) Such other requirements under the amendment as 
                the Secretary determines to be appropriate.
            (5)(A) Notwithstanding the amendment, during the fiscal 
        years 1996 through 1998, the provisions of title I of the 
        Rehabilitation Act of 1973 that were in effect on the day 
        before the date of the enactment of this Act continue to be in 
        effect, subject to paragraphs (1) through (4). In implementing 
        the amendment, the Secretary shall seek to avoid unnecessarily 
        disrupting the provision of services under such title to 
        individuals who, as of the date of the enactment of this Act, 
        were receiving services pursuant to an individualized plan 
        under such title.
            (B) On and after the first day of fiscal year 1999, the 
        provisions referred to in the first sentence of subparagraph 
        (A) do not have any legal effect.

      CHAPTER 2--REVISION OF TITLE I OF REHABILITATION ACT OF 1973

SEC. 511. COMPREHENSIVE REVISION.

    Effective October 1, 1995, the Rehabilitation Act of 1973 (29 
U.S.C. 701 et seq.) is amended--
            (1) by transferring section 112 from the current placement 
        of the section;
            (2) by redesignating such section as section 510;
            (3) by adding such section at the end of title V; and
            (4) by amending title I to read as follows:

             ``TITLE I--VOCATIONAL REHABILITATION SERVICES

``SEC. 100. PURPOSE.

    ``The purpose of this title is to assist States in making available 
to individuals with disabilities a program of employment, training, and 
rehabilitation services that maximizes an individual's control over 
their vocational and career choices, and is in accordance with the goal 
of assuring equality of opportunity, full participation, independent 
living, and economic self-sufficiency for such individuals.

``SEC. 101. FORMULA GRANTS.

    ``(a) In General.--
            ``(1) Formula grants.--In the case of each State that 
        submits to the Secretary a workforce development and literacy 
        plan for fiscal year 1999 or any subsequent fiscal year that 
        meets the requirement of section 103 of the Consolidated and 
        Reformed Education, Employment, and Rehabilitation Systems Act, 
        the Secretary shall make a grant for the year to the State as 
        the Federal share of carrying out the purposes specified in 
        this title. The grant shall consist of the allotment determined 
        for the State under section 107.
            ``(2) Conditions for grant.--A State may receive a grant 
        under paragraph (1) for a fiscal year only if the State meets 
        the conditions described in this title for the State for the 
        fiscal year.
    ``(b) Administrator of Federal Program.--The Secretary shall carry 
out this title acting through the Commissioner of the Rehabilitation 
Services Administration, except as indicated otherwise.
    ``(c) Rule of Construction.--The purpose specified in section 100 
shall be carried out only in accordance with the other provisions of 
this title.
    ``(d) Funding.--
            ``(1) Authorization of appropriations.--For the purpose of 
        carrying out this title, there are authorized to be 
        appropriated such sums as may be necessary for each of the 
        fiscal years 1999 through 2002, except that the amount to be 
        appropriated for a fiscal year shall not be less than the 
        amount of the appropriation under this subsection for the 
        immediately preceding fiscal year, plus the amount of the 
        Consumer Price Index addition determined under
         paragraph (2) for the immediately preceding fiscal year.
            ``(2) Adjustments pursuant to consumer price index.--
                    ``(A) Not later than November 15 of each fiscal 
                year, the Secretary of Labor shall publish in the 
                Federal Register the percentage change in the Consumer 
                Price Index published for October of the preceding 
                fiscal year and October of the fiscal year in which 
                such publication is made.
                    ``(B) If in any fiscal year the percentage change 
                published under subparagraph (A) indicates an increase 
                in the Consumer Price Index, then the amount to be 
                appropriated under paragraph (1) for the subsequent 
                fiscal year shall be at least the amount appropriated 
                for the fiscal year in which the publication is made 
                under subparagraph (A) increased by such percentage 
                change.
                    ``(C) If in any fiscal year the percentage change 
                published under subparagraph (A) does not indicate an 
                increase in the Consumer Price Index, then the amount 
                to be appropriated under paragraph (1) for the 
                subsequent fiscal year shall be at least the amount 
                appropriated for the fiscal year in which the 
                publication is made under subparagraph (A).
                    ``(D) For purposes of this paragraph, the term 
                `Consumer Price Index' means the Consumer Price Index 
                for All Urban Consumers, published monthly by the 
                Bureau of Labor Statistics.
            ``(3) Automatic extension of authorization.--
                    ``(A) Unless, in the regular session that ends 
                prior to the beginning of the last fiscal year for 
                which an authorization of appropriations is provided in 
                paragraph (1), legislation has been enacted that has 
                the effect of extending such authorization, such 
                authorization is automatically extended for one 
                additional year.
                    ``(B) The amount authorized to be appropriated for 
                the additional fiscal year described in subparagraph 
                (A) shall be an amount equal to the amount appropriated 
                for such program for fiscal year 2002, plus the amount 
                of the Consumer Price Index addition determined under 
                paragraph (2) for the immediately preceding fiscal 
                year.
                    ``(C) In any case where the Commissioner is 
                required under an applicable statute to carry out 
                certain acts or make certain determinations that are 
                necessary for the continuation of the program 
                authorized by this title, and such acts or 
                determinations are required during the last fiscal year 
                for which an authorization of appropriations is 
                provided in paragraph (1), such acts and determinations 
                shall be required during any fiscal year for which 
                subparagraph (A) is in operation.

``SEC. 102. ALLOCATION WITHIN STATE OF ADMINISTRATIVE RESPONSIBILITIES.

    ``(a) In General.--For purposes of section 101(a), a State, subject 
to subsection (b)--
            ``(1) will reserve not more than 10 percent of the grant 
        under such section for the fiscal year involved for carrying 
        out the responsibilities of a State administrative agent under 
        section 103; and
            ``(2) will reserve not less than 90 percent of the grant 
        for carrying out the responsibilities under section 104 of 
        local workforce development boards and one-stop career centers 
        with respect to workforce development areas.
    ``(b) Waiver.--With respect to the expenditure by a State of a 
grant under section 101(a) for a fiscal year, the Secretary may provide 
to the State a waiver under which the State is authorized to reduce the 
reservation of funds under subsection (a)(2) by 10 percent and expend 
the resulting funds for the administration, by the State administrative 
agent, of responsibilities that otherwise would be carried out under 
section 104 by local workforce development boards or one-stop career 
centers. The Secretary may provide such a waiver only if the Secretary 
determines that the waiver is justified for reasons regarding the 
efficient and equitable provision in the State of services under this 
title.
    ``(c) Certain Definitions.--For purposes of this Act, the terms 
`State administrative agent', `local workforce development area', 
`local workforce development board', and `one-stop career center' have 
the meanings given such terms in sections 105 through 108, 
respectively, of the Consolidated and Reformed Education, Employment, 
and Rehabilitation Systems Act.

``SEC. 103. RESPONSIBILITIES OF STATE ADMINISTRATIVE AGENT.

    ``(a) State Administrative Agent.--In carrying out the requirement 
of section 105 of the Consolidated and Reformed Education, Employment, 
and Rehabilitation Systems Act that a Governor must designate a State 
administrative agent to carry out this title, a Governor may 
designate--
            ``(1) one State administrative agent to be responsible for 
        carrying out this title for individuals who are blind; and
            ``(2) a different State administrative agent to carry out 
        the remaining responsibilities in this title.
    ``(b) Responsibilities.--For purposes of section 101(a) and the 
operation in a State of the program under this title:
            ``(1) This subsection, and subsection (d) (as applicable), 
        will be carried out by State administrative agents designated 
        by the Governor in accordance with subsection (a), through the 
        collaborative process established under section 103 of the 
        Consolidated and Reformed Education, Employment, and 
        Rehabilitation Systems Act.
            ``(2)(A) The State will provide to the public an 
        explanation of the methods by which the State will provide 
        vocational rehabilitation services to all eligible individuals 
        (as defined in section 105(d)) in the State.
            ``(B) In the event that such services cannot be provided to 
        all eligible individuals who apply for the services, the State 
        will show and provide the justification for the order to be 
        followed in selecting individuals to whom the services will be 
        provided.
            ``(C) The order of selection under subparagraph (B) will be 
        determined on the basis of serving first those individuals with 
        the most severe disabilities, in accordance with criteria 
        established by the State.
            ``(3) The State will establish guidelines providing that, 
        in the case of an individual to whom the State will provide a 
        service (in accordance with the order of selection under 
        paragraph (2) and the assessment of needs under section 
        105(b)(2)(A)), the individual will have the option of receiving 
        the service from a provider designated by the center or from a 
        provider selected by the individual pursuant to vouchers under 
        subsection (c).
            ``(4) Pursuant to section 109 of the Consolidated and 
        Reformed Education, Employment, and Rehabilitation Systems Act, 
        the State will make significant efforts to encourage the 
        participation in the State program of community-based private 
        providers, with special consideration given to providers who 
        have been recipients of funds under this Act regarding projects 
        with industry or supported employment services.
            ``(5) The State will establish provisions to govern 
        determinations under section 105 (relating to the eligibility 
        of individuals).
            ``(6) The State will establish provisions to govern 
        assessments under section 104(b)(1) (relating to the need of 
        individuals for services).
            ``(7) The State will ensure that vocational rehabilitation 
        services under this title are provided by personnel who are 
        qualified to provide the services involved.
            ``(8) The State will establish plans, policies, and 
        procedures to be followed in carrying out the program under 
        this title in the State (including entering into a formal 
        interagency cooperative agreement with education officials 
        responsible for the provision of a free appropriate public 
        education to students who are individuals with disabilities). 
        The State will ensure that such plans, policies, and procedures 
        are designed in accordance with the following:
                    ``(A)(i) To facilitate the development and 
                accomplishment of the goals and objectives described in 
                clause (ii) (including the specification of plans for 
                coordination with the educational agencies in the 
                provision of transition services), to the extent that 
                the goals and objectives are included in an 
                individualized education program of a student.
                    ``(ii) The goals and objectives referred to in 
                clause (i) are long-term rehabilitation goals; 
                intermediate rehabilitation objectives; and goals and 
                objectives related to enabling a student to live 
                independently before the student leaves a school 
                setting.
                    ``(B) To facilitate the transition from the 
                provision of a free appropriate public education under 
                the responsibility of an educational agency to the 
                provision of vocational rehabilitation services under 
                this title, including the specification of plans for 
                coordination with educational agencies in the provision 
                of transition services to an individual.
                    ``(C) To provide for--
                            ``(i) provisions for determining State lead 
                        agencies and qualified personnel responsible 
                        for transition services;
                            ``(ii) procedures for outreach to and 
                        identification of youth in need of such 
                        services; and
                            ``(iii) a timeframe for evaluation and 
                        followup of youth who have received such 
                        services.
            ``(9) The State will provide for coordination and working 
        relationships with the Statewide Independent Living Council 
        established under section 705 and independent living centers 
        within the State.
            ``(10) The State will provide for interagency cooperation 
        with, and the utilization of the services and facilities of, 
        the State agencies administering the State's public assistance 
        programs, and other programs for individuals with disabilities.
            ``(11) With respect to the one-stop career centers operated 
        pursuant to section 104, the State will provide for the 
        appropriate training of the management and staff of the centers 
        regarding the effective provision of services to individuals 
        with disabilities.
    ``(c) Availability of Voucher System Regarding Services.--For 
purposes of section 101(a) and the operation in a State of the program 
under this title:
            ``(1) The State will provide for the establishment of a 
        system to carry out this subsection.
            ``(2) In the case of an eligible individual who (in 
        accordance with the order of selection under subsection (b)(2) 
        and the assessment of needs under section 105(b)(2)(A)) will 
        receive vocational rehabilitation services under this title, 
        the one-stop career center involved will, upon request of the 
        individual, provide to the individual vouchers in accordance 
        with this subsection.
            ``(3) Vouchers under this subsection will enable such 
        individual to obtain the vocational rehabilitation services 
        involved from providers selected by the individual from among a 
        list of providers approved by the State for such purpose in 
        accordance with section 109 of the Consolidated and Reformed 
        Education, Employment, and Rehabilitation Systems Act.
            ``(4) The State will ensure that the monetary value of a 
        voucher provided to the individual for a particular type of 
        service is calculated at a fair market value.
            ``(5) To the extent practicable, the list of providers 
        under paragraph (3) will provide for the availability within 
        each local workforce development area of a broad range of 
        services.
    ``(d) State Options.--With respect to compliance with this section, 
a State may, in the discretion of the State, expend a grant under 
section 101 for the following:
            ``(1) To provide technical assistance to local boards, one-
        stop career centers, and providers relating to the provision of 
        vocational rehabilitation services under this title.
            ``(2) To disseminate findings from research regarding 
        vocational rehabilitation services, after consideration of 
        requests from local workforce development boards and one-stop 
        career centers regarding the types of information needed by 
        such boards and centers.
            ``(3) To conduct demonstration projects regarding 
        improvements with respect to vocational rehabilitation 
        services, subject to providing the results of such projects to 
        the Commissioner and as appropriate disseminating the results 
        within the State.

``SEC. 104. RESPONSIBILITIES FOR LOCAL BOARDS AND SERVICE CENTERS.

    ``(a) Provision of Vocational Rehabilitation Services.--For 
purposes of section 101(a) and the operation in a State of the program 
under this title:
            ``(1) This section will be carried out by the one-stop 
        career centers in the State, with each such center acting under 
        the guidance of the local workforce development board for the 
        local workforce area within which the center operates.
            ``(2) In accordance with the order of selection under 
        section 103(b)(2), a one-stop career center will, in expending 
        amounts provided to the center from a grant under section 101--
                    ``(A) make determinations under section 105 of the 
                eligibility of individuals for vocational 
                rehabilitation services; and
                    ``(B) provide for such goods or services for 
                eligible individuals as are--
                            ``(i) necessary to render the individuals 
                        employable and achieve an employment outcome; 
                        and
                            ``(ii) provided in response to needs that 
                        arise, to a significant extent, from the 
                        disability involved and do not duplicate, to 
                        any significant extent, the core services 
                        available under title I of the Consolidated and 
                        Reformed Education, Employment, and 
                        Rehabilitation Systems Act.
    ``(b) Certain Services.--With respect to compliance with this 
section, vocational rehabilitation services under this title (as 
defined in subsection (f)) may include the following:
            ``(1) An assessment of the needs of eligible individuals 
        for such services.
            ``(2) Counseling, guidance, and work-related placement 
        services for individuals with disabilities, including job 
        search assistance, placement assistance, job retention 
        services, personal assistance services, and followup, follow-
        along, and specific postemployment services necessary to assist 
        such individuals to maintain, regain, or advance in employment.
            ``(3) Vocational and other training services for 
        individuals with disabilities, including personal and 
        vocational adjustment, books, or other training materials, and 
        such services to the families of such individuals as are 
        necessary to the adjustment or rehabilitation of such 
        individuals.
            ``(4) Development of written plans for the provision of 
        services.
            ``(5) Rehabilitation technology services.
            ``(6) Supported employment services.
            ``(7) Physical and mental restoration services.
            ``(8) Interpreter services for individuals who are deaf, 
        and reader services for individuals who are blind.
            ``(9) Rehabilitation teaching services and orientation and 
        mobility services for individuals who are blind.
            ``(10) Referral and other services designed to assist 
        individuals with disabilities in securing needed services from 
        other agencies through agreements developed under section 
        103(b)(9), if such services are not available under this Act.
            ``(11) Any other vocational rehabilitation service.
    ``(c) Allocation for Core Services.--For purposes of section 
101(a):
            ``(1) With respect to a fiscal year, a local workforce 
        development board receiving amounts from a grant under section 
        101 will reserve an amount for the provision of core services 
        under title I of the Consolidated and Reformed Education, 
        Employment, and Rehabilitation Systems Act.
            ``(2) The amount so reserved will be based on the number of 
        eligible individuals with disabilities in the local workforce 
        development area, exceptional costs of facilitating the 
        provision of core services to eligible individuals, and 
        training of employees of the one-stop career centers to provide 
        high-quality services to individuals with disabilities, and 
        other factors relating to disability that the board considers 
        appropriate.
    ``(d) Performance Payments Regarding Vouchers.--For purposes of 
section 101(a), the local board will ensure that, in providing for the 
payment of services provided pursuant to vouchers, a provider does not 
receive full payment until the delivery of the services involved is 
completed in reasonable accordance with the outcome designated for the 
service pursuant to a prior understanding with the provider.
    ``(e) Payor of Last Resort Regarding Medical Services and 
Educational Assistance.--For purposes of section 101(a), a State will 
not expend a grant under section 101 to pay for training services in 
institutions of higher education, or to pay for medical services, 
unless maximum efforts have been made to secure payments, in whole or 
in part, from other sources.
    ``(f) Definition.--For purposes of this title, the term `vocational 
rehabilitation services' means goods and services described in 
subsection (a)(2)(B).

``SEC. 105. ELIGIBLE INDIVIDUAL.

    ``(a) In General.--For purposes of section 101:
            ``(1) An individual will not receive vocational 
        rehabilitation services under this title unless the 
        individual--
                    ``(A) is an individual with a disability under 
                section 7(8)(A); and
                    ``(B) requires vocational rehabilitation services 
                to prepare for, enter, engage in, or retain gainful 
                employment.
            ``(2) If the individual has a disability or is blind as 
        determined pursuant to title II or title XVI of the Social 
        Security Act, the individual will be considered to have--
                    ``(A) a physical or mental impairment which for 
                such individual constitutes or results in a substantial 
                impediment to employment under section 7(8)(A)(i); and
                    ``(B) a severe physical or mental impairment which 
                seriously limits one or more functional capacities in 
                terms of an employment outcome under section 
                7(15)(A)(i).
    ``(b) Process.--For purposes of section 101(a), a State will ensure 
that, subject to the order of selection under section 102(b)(2), the 
following applies to an individual:
            ``(1) Once the individual makes a request in person for a 
        determination of eligibility:
                    ``(A) An adviser will be made available to the 
                individual regarding the process of obtaining services 
                under this title.
                    ``(B) An initial interview will be conducted, 
                followed by an initial assessment.
                    ``(C) A final determination will be made not later 
                than 30 days after the request (subject to the 
                cooperation of the individual in the process of 
                determination).
                    ``(D) The determination of eligibility will be 
                based on the review of existing data described in 
                clause (i) of section 7(22)(A), and, to the extent 
                necessary, the preliminary assessment described in 
                clause (ii) of such section.
                    ``(E) If it is determined that the individual is 
                not an eligible individual, the individual will be 
                provided a written statement explaining the basis of 
                the determination.
            ``(2) If it is determined that the individual is an 
        eligible individual:
                    ``(A) The needs of the individual for vocational 
                rehabilitation services will be assessed.
                    ``(B) Upon the request of the individual, 
                assistance will be provided to the individual in the 
                development of a written plan for the individual 
                regarding the provision of services pursuant to 
                subparagraph (A).
    ``(c) Rule of Construction.--This title may not be construed as 
establishing an entitlement in any individual.
    ``(d) Definition.--For purposes of this title, the term `eligible 
individual' means an individual described in subsection (a)(1).

``SEC. 106. STATE REHABILITATION ADVISORY COUNCIL.

    ``(a) In General.--For purposes of section 101(a):
            ``(1) A State will establish a State Rehabilitation 
        Advisory Council (referred to in this section as the `Council') 
        in accordance with this section.
            ``(2) The Council will be composed of the following:
                    ``(A) Representatives of organizations within the 
                State providing services to individuals with 
                disabilities and their families.
                    ``(B) Representatives of business, industry, and 
                labor.
                    ``(C) Representatives of disability advocacy groups 
                representing a cross section of--
                            ``(i) individuals with physical, cognitive, 
                        sensory, and mental disabilities; and
                            ``(ii) parents, family members, guardians, 
                        advocates, or authorized representatives, of 
                        individuals with disabilities who have 
                        difficulty in representing themselves or are 
                        unable due to their disabilities to represent 
                        themselves;
            ``(3) The State administrative agent will be an ex officio 
        member of the Council.
            ``(4) Members of the Council will be appointed by the 
        Governor or another entity that has appointment authority under 
        State law.
            ``(5) A majority of Council members will be persons who 
        are--
                    ``(A) individuals with disabilities described in 
                section 7(8)(B); and
                    ``(B) not employed by the designated State 
                administrative agent.
            ``(6)(A) Except as provided in subparagraph (B), the 
        Council will select a chairperson from among the membership of 
        the Council.
            ``(B) In States in which the Governor does not have veto 
        power pursuant to State law, the Governor will designate a 
        member of the Council to serve as the chairperson of the 
        Council or will require the Council to so designate such a 
        member.
            ``(7) Each member of the Council will serve for a term 
        determined by the Governor or another entity that has 
        appointment authority under State law.
            ``(8) Any vacancy occurring in the membership of the 
        Council will be filled in the same manner as the original 
        appointment. The vacancy will not affect the power of the 
        remaining members to execute the duties of the Council.
    ``(b) Functions of Council.--For purposes of section 101(a), the 
Council will carry out the following:
            ``(1) Advise the collaborative process under section 103 of 
        the Consolidated and Reformed Education, Employment, and 
        Rehabilitation Systems Act, and the State administrative agent, 
        in the preparation of the State workforce development and 
        literacy plan and other plans, reports, needs assessments, and 
        evaluations required by this title.
            ``(2) To the extent feasible, conduct a review and analysis 
        of the effectiveness of, and consumer satisfaction with, the 
        delivery of core services and vocational rehabilitation 
        services to individuals with disabilities within the State.
            ``(3) Prepare and submit an annual report to the 
        collaborative process or appropriate State administrative agent 
        and the Commissioner on the status of vocational rehabilitation 
        programs operated within the State, and make the report 
        available to the public.
            ``(4) Coordinate with other councils within the State 
        established to address the needs of individuals with 
        disabilities.
            ``(5) Perform such other functions, consistent with the 
        purpose of this title, as the State Rehabilitation Advisory 
        Council determines to be appropriate, that are comparable to 
        the other functions performed by the Council.
    ``(c) Resources.--
            ``(1) Plan.--For purposes of section 101(a), the Council 
        will prepare, in conjunction with the State administrative 
        agent, a plan for the provision of such resources, including 
        such staff and other personnel, as may be necessary to carry 
        out the functions of the Council under this section. The 
        resource plan shall, to the maximum extent possible, rely on 
        the use of resources in existence during the period of 
        implementation of the plan.
            ``(2) Resolution of disagreements.--For purposes of section 
        101(a), to the extent that there is a disagreement between the 
        Council and the State administrative agent in regard to the 
        resources necessary to carry out the functions of the Council 
        as set forth in this section, the disagreement will be resolved 
        by the Governor or appointing agency identified in subsection 
        (a)(4).
            ``(3) Supervision and evaluation.--For purposes of section 
        101(a), the Council will, consistent with State law, supervise 
        and evaluate such staff and other personnel as may be necessary 
        to carry out its functions under this section.
            ``(4) Personnel conflict of interest.--For purposes of 
        section 101(a), while assisting the Council in carrying out its 
        duties, staff and other personnel will not be assigned duties 
        by the State administrative agent or any other agency or office 
        of the State, that would create a conflict of interest.
    ``(d) Conflict of Interest.--For purposes of section 101(a), no 
member of the Council will cast a vote on any matter that would provide 
direct financial benefit to the member or otherwise give the appearance 
of a conflict of interest under State law.
    ``(e) Meetings.--For purposes of section 101(a), the Council will 
convene meetings and conduct such forums or hearings as the Council 
considers appropriate. The meetings, hearings, and forums will be 
publicly announced. The meetings will be open and accessible to the 
general public unless there is a valid reason for an executive session.
    ``(f) Compensation and Expenses.--For purposes of section 101(a), 
the Council may use funds appropriated under this title to reimburse 
members of the Council for reasonable and necessary expenses of 
attending Council meetings and performing Council duties (including 
child care and personal assistance services), and to pay compensation 
to a member of the Council, if such member is not employed or must 
forfeit wages from other employment, for each day the member is engaged 
in performing the duties of the Council.
    ``(g) Rule of Construction.--Nothing in this section prohibits a 
State from establishing and providing funds to a separate council to 
carry out functions described in subsection (b) with respect to 
vocational rehabilitation services for individuals who are blind.

``SEC. 107. AMOUNT OF ALLOTMENT.

    ``(a)(1) Subject to the provisions of subsection (d), for each 
fiscal year beginning before October 1, 1978, each State shall be 
entitled to an allotment of an amount bearing the same ratio to the 
amount authorized to be appropriated under section 101(d) for allotment 
under this section as the product of (A) the population of the State, 
and (B) the square of its allotment percentage, bears to the sum of the 
corresponding products for all the States.
    ``(2)(A) For each fiscal year beginning on or after October 1, 
1978, each State shall be entitled to an allotment in an amount equal 
to the amount such State received under paragraph (1) for the fiscal 
year ending September 30, 1978, and an additional amount determined 
pursuant to subparagraph (B) of this paragraph.
    ``(B) For each fiscal year beginning on or after October 1, 1978, 
each State shall be entitled to an allotment, from any amount 
authorized to be appropriated for such fiscal year under section 101(d) 
for allotment under this section in excess of the amount appropriated 
under such section for the fiscal year ending September 30, 1978, in an 
amount equal to the sum of--
            ``(i) an amount bearing the same ratio to 50 percent of 
        such excess amount as the product of the population of the 
        State and the square of its allotment percentage bears to the 
        sum of the corresponding products for all the States; and
            ``(ii) an amount bearing the same ratio to 50 percent of 
        such excess amount as the product of the population of the 
        State and its allotment percentage bears to the sum of the 
        corresponding products for all the States.
    ``(3) The sum of the payment to any State (other than Guam, 
American Samoa, the Virgin Islands, and the Northern Mariana Islands) 
under this subsection for any fiscal year which is less than one-third 
of 1 percent of the amount appropriated under section 101(d), or 
$3,000,000, whichever is greater, shall be increased to that amount, 
the total of the increases thereby required being derived by 
proportionately reducing the allotment to each of the remaining such 
States under this subsection, but with such adjustments as may be 
necessary to prevent the sum of the allotments made under this 
subsection to any such remaining State from being thereby reduced to 
less than that amount.
    ``(4) For each fiscal year beginning on or after October 1, 1984, 
for which any amount is appropriated pursuant to section 101(d), each 
State shall receive an allocation (from such appropriated amount) in 
addition to the allotment to which such State is entitled under 
paragraphs (2) and (3) of this subsection. Such additional allocation 
shall be an amount which bears the same ratio to the amount so 
appropriated as that State's allotment under paragraphs (2) and (3) of 
this subsection bears to the sum of such allotments of all the States.
    ``(b)(1) If the payment to a State pursuant to this section for a 
fiscal year is less than the total payments such State received under 
section 2 of the Vocational Rehabilitation Act for the fiscal year 
ending June 30, 1973, such State shall be entitled to an additional 
payment (subject to the same terms and conditions applicable to other 
payments under this part) equal to the difference between the payment 
under this section and the amount so received by it.
    ``(2) If a State receives as its Federal share pursuant to this 
section for any fiscal year less than the applicable Federal share of 
the expenditure of such State for fiscal year 1972 for vocational 
rehabilitation services under the plan for such State approved under 
section 101 as in effect for such year (including any amount expended 
by such State for the administration of the State plan but excluding 
any amount expended by such State from non-Federal sources for 
construction under such plan), such State shall be entitled to an 
additional payment for such fiscal year, subject to the same terms and 
conditions applicable to other payments under this part, equal to the 
difference between such the payment pursuant to this section and an 
amount equal to the applicable Federal share of such expenditure for 
vocational rehabilitation services.
    ``(3) Any payment attributable to the additional payment to a State 
under this subsection shall be made only from appropriations 
specifically made to carry out this subsection, and such additional 
appropriations are hereby authorized.''.
       Subtitle B--Other Amendments to Rehabilitation Act of 1973

SEC. 521. TRAINING AND DEMONSTRATION PROJECTS.

    (a) In General.--Effective October 1, 1995, the Rehabilitation Act 
of 1973 (29 U.S.C. 701 et seq.) is amended--
            (1) in title III--
                    (A) by striking section 303;
                    (B) by striking section 304;
                    (C) in section 311, by subsection (f);
                    (D) by striking section 312; and
                    (E) by striking section 316;
            (2)(A) by transferring subsection (a) of section 802 from 
        the current placement of the subsection;
            (B) by redesignating such subsection as subsection (f); and
            (C) by inserting such section at the end of section 311 (as 
        amended by paragraph (1)(C) of this subsection);
            (3)(A) by transferring subsection (g) of section 802 from 
        the current placement of the subsection;
            (B) by redesignating such subsection as subsection (g); and
            (C) by inserting such section at the end of section 311 (as 
        amended by paragraph (2)(C) of this subsection);
            (4)(A) by transferring subsection (b) of section 803 from 
        the current placement of the subsection;
            (B) by redesignating such subsection as subsection (j); and
            (C) by inserting such section at the end of section 302; 
        and
            (5) by striking the remaining provisions of title VIII.
    (b) Section 311(c).--Effective October 1, 1997, section 311 of the 
Rehabilitation Act of 1973 (29 U.S.C. 777a), as amended by subsection 
(a) of this subsection, is amended--
            (1) by striking subsection (c); and
            (2) by redesignating subsections (d) through (g) as 
        subsections (c) through (f), respectively.

SEC. 522. EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS WITH DISABILITIES.

    (a) In General.--Effective October 1, 1995, title VI of the 
Rehabilitation Act of 1973 (29 U.S.C. 795 et seq.) is amended--
            (1) by striking part A;
            (2) by striking part C;
            (3) by striking part D; and
            (4) in part B, by striking the part designation and 
        heading.
    (b) Projects With Industry.--Effective October 1, 1997, title VI of 
the Rehabilitation Act of 1973, as amended by subsection (a) of this 
section, is repealed.
        TITLE VI--AMENDMENTS TO THE HIGHER EDUCATION ACT OF 1965

SEC. 601. PURPOSE OF TITLE.

    The purpose of this title is to provide for the cessation of 
Federal sponsorship of two Government sponsored enterprises, the 
Student Loan Marketing Association and the College Construction Loan 
Insurance Association now that both corporations are economically 
viable and have successfully fulfilled the purposes for which they were 
created.

             Subtitle A--Student Loan Marketing Association

SEC. 611. REORGANIZATION OF THE STUDENT LOAN MARKETING ASSOCIATION 
              THROUGH THE FORMATION OF A HOLDING COMPANY.

    (a) Amendment.--Part B of title IV of the Higher Education Act of 
1965 (20 U.S.C. 1071 et seq. (1988))
 is amended by inserting after section 439 (20 U.S.C. 1087-2) the 
following new section:

``SEC. 440. REORGANIZATION OF THE STUDENT LOAN MARKETING ASSOCIATION 
              THROUGH THE FORMATION OF A HOLDING COMPANY.

    ``(a) Actions by the Association's Board of Directors.--The Board 
of Directors of the Association shall take or cause to be taken all 
such action as it deems necessary or appropriate to effect, upon the 
shareholder approval described in subsection (b), a restructuring of 
the common stock ownership of the Association, as set forth in a plan 
of reorganization adopted by the Board of Directors (the terms of which 
shall be consistent with this Act) so that all of the outstanding 
common shares shall be directly owned by an ordinary business 
corporation chartered under State or District of Columbia law (the 
`Holding Company'), as the Board of Directors may determine. Such 
actions may include, in the Board's discretion, a merger of a wholly 
owned subsidiary of the Holding Company with and into the Association, 
which would have the effect provided in the plan of reorganization and 
the law of the jurisdiction in which such subsidiary is incorporated. 
As part of the restructuring, the Board of Directors may cause (1) the 
common shares of the Association to be converted, at the reorganization 
effective date, to common shares of the Holding Company on a one for 
one basis, consistent with applicable State or District of Columbia 
law, and (2) Holding Company common shares to be registered with the 
Securities and Exchange Commission.
    ``(b) Shareholder Approval.--The plan of reorganization adopted by 
the Board of Directors pursuant to subsection (a) shall be submitted to 
common stockholders of the Association for their approval. The 
reorganization shall occur at the reorganization effective date, 
provided that the plan of reorganization has been approved by the 
affirmative votes, cast in person or by proxy, of the holders of a 
majority of the issued and outstanding shares of the Association common 
stock.
    ``(c) Transition.--
            ``(1) In general.--Except as specifically provided in this 
        section, until the dissolution date the Association shall 
        continue to have all of the rights, privileges and obligations 
        set forth in, and shall be subject to all of the limitations 
        and restrictions of, section 439 of this Act as in effect on 
        the effective date of this section. The Holding Company and its 
        affiliates other than the Association shall not be entitled to 
        any of the rights, privileges and obligations, and shall not be 
        subject to the limitations and restrictions, applicable to the 
        Association under section 439 of this Act as in effect on the 
        effective date of this section, except as specifically provided 
        in this section.
            ``(2) Transfer of certain property.--Except as specifically 
        provided in this section, at the reorganization effective date 
        or as soon as practicable thereafter, the Association shall use 
        its best efforts to transfer to the Holding Company or its 
        subsidiaries (or both), in each case, as directed by the 
        Holding Company, all real and personal property of the 
        Association (both tangible and intangible) other than the 
        remaining property. Without limiting the preceding sentence, 
        such transferred property shall include all right, title and 
        interest in (A) direct or indirect subsidiaries of the 
        Association (excluding any interest in any government sponsored 
        enterprise), (B) contracts, leases, and other agreements, (C) 
        licenses and other intellectual property, and (D) any other 
        property of the Association. Notwithstanding the preceding 
        provisions of this paragraph, nothing in this paragraph shall 
        be construed to prohibit the Association from transferring 
        remaining property from time to time to the Holding Company or
         its subsidiaries, subject to the provisions of paragraph (4).
            ``(3) Transfer of personnel.--At the reorganization 
        effective date, employees of the Association shall become 
        employees of the Holding Company (or of the subsidiaries), and 
        the Holding Company (or the subsidiaries or both) shall provide 
        all necessary and appropriate management and operational 
        support (including loan servicing) to the Association, as 
        requested by the Association. The Association may, however, 
        obtain such management and operational support from other 
        persons or entities.
            ``(4) Dividends.--The Association may pay dividends in the 
        form of cash or noncash distributions so long as at the time of 
        the declaration of such dividends, after giving effect to the 
        payment of such dividends as of the date of such declaration by 
        the Board of Directors of the Association, the Association's 
        capital would be in compliance with the capital standards set 
        forth in section 439(r) of this Act. If, at any time after the 
        reorganization effective date, the Association fails to comply 
        with such capital standards, the Holding Company shall be 
        obligated to transfer to the Association additional capital in 
        such amounts as are necessary to ensure that the Association 
        again complies with the capital standards, but not to exceed 
        that amount received by the Holding Company as dividends during 
        the 6-month period immediately preceding such failure.
            ``(5) Valuation of noncash distributions.--After the 
        reorganization effective date, any distribution of noncash 
        assets by the Association to the Holding Company shall be 
        valued at book value on the date the Association's Board of 
        Directors approved such distribution for purposes of 
        calculating compliance with section 439(r) of this Act.
            ``(6) Restrictions on new business activity or acquisition 
        of assets by association.--After the reorganization effective 
        date, the Association shall not engage in any new business 
        activities or acquire any additional assets other than--
                    ``(A) prior to the last day of the 36th full 
                calendar month immediately following the reorganization 
                effective date in connection with contractual 
                commitments for future student loan purchases or 
                warehousing advances or pursuant to letters of credit 
                or standby bond purchase agreements, in either case 
                which are outstanding as of the reorganization 
                effective date;
                    ``(B) in connection with its serving as a lender-
                of-last-resort pursuant to section 439 of this Act; and
                    ``(C) in connection with its purchase of loans 
                insured under this part, if the Secretary, with the 
                approval of the Secretary of the Treasury, requests the 
                Association to continue or resume its secondary market 
                purchase program because the Secretary determines there 
                is inadequate liquidity for loans made under this part, 
                the Secretary is authorized to enter into agreements 
                with the Association covering these additional 
                secondary market activities.
        Any agreement entered into under subparagraph (C) shall cover a 
        period of 12 months, but may be renewed if the Secretary 
        determines that liquidity remains inadequate. The fee provided 
        under section 439(h)(7) shall not apply to loans acquired under 
        any such agreement with the Secretary.
            ``(7) Restrictions on additional indebtedness of the 
        association; attributes of debt obligations.--After the 
        reorganization effective date, the Association shall not incur 
        indebtedness which at any given time would exceed the aggregate 
        book value of its assets, to the extent such assets are
         permitted to be held under this subsection. The Association 
shall not issue new debt obligations after the last day of the 36th 
full calendar month immediately following the reorganization effective 
date, except in connection with its serving as a lender-of-last-resort 
pursuant to section 439 of this Act or with purchasing loans under an 
agreement with the Secretary described in section 440(c)(6). 
Notwithstanding the foregoing, nothing in this subsection shall in any 
way whatsoever modify the attributes accorded the debt obligations of 
the Association by section 439 of this Act, regardless of whether such 
debt obligations are incurred (A) prior to the reorganization effective 
date, (B) after the reorganization effective date and prior to the last 
day of the 36th month period described above, or (C) after any such 
obligations are transferred to a trust in accordance with subsection 
(d).
            ``(8) Monitoring of safety and soundness.--
                    ``(A) Obligation to obtain, maintain, and report 
                information.--The Association shall obtain such 
                information and make and keep such records as the 
                Secretary of the Treasury may from time to time 
                prescribe concerning the Association's policies, 
                procedures, or systems for monitoring and controlling 
                financial risk to it resulting from the activities of 
                any of its associated persons, to the extent such 
                activities are reasonably likely to have a material 
                impact on the financial condition of the Association, 
                including its capital ratio, its liquidity, or its 
                ability to conduct and finance its operations, except 
                that the Association's obligations under this 
                subsection with respect to any associated person which 
                is a third party servicer (as defined in 34 C.F.R. 
                682.200(b)) shall be limited to providing to the 
                Secretary of the Treasury copies of any reports or 
                other information provided to the Secretary of 
                Education pursuant to 34 C.F.R. 682.200 et seq. The 
                Secretary of the Treasury may require summary reports 
                of such information to be filed no more frequently than 
                quarterly. For purposes of this paragraph, the term 
                `associated person' shall mean any person, other than a 
                natural person, directly or indirectly controlling, 
                controlled by, or under common control with the 
                Association.
                    ``(B) Maintenance of separate entities.--After the 
                reorganization effective date, the Holding Company and 
                other corporate affiliates of the Association shall 
                take all reasonable actions to--
                            ``(i) preserve the separate corporate 
                        identities of each company within the holding 
                        company structure for purposes of any legal or 
                        equitable proceeding that could involve the 
                        Association, including the maintenance of 
                        separate books and records and the separation 
                        of the funds and assets of the separate 
                        entities;
                            ``(ii) maintain arms length relationships 
                        between the Association and its corporate 
                        affiliates; and
                            ``(iii) maintain independent management 
                        between the Association and Holding Company and 
                        its other subsidiaries, including the 
                        disqualification of at least one officer of the 
                        Association from serving as an officer or 
                        employee of the Holding Company or such other 
                        subsidiaries.
                    ``(C) Encumbrance of assets.--Notwithstanding any 
                otherwise applicable Federal or State law, rule, or 
                regulation, or legal or equitable principle, doctrine, 
                or theory to the contrary, under no circumstances shall 
                the assets of--
                            ``(i) the Association be available or used 
                        to pay claims or debts of or incurred by the 
                        Holding Company; or
                            ``(ii) the Holding Company be available or 
                        used to pay claims or debts of or incurred by 
                        the Association.
                Nothing in this subparagraph shall limit the right of 
                the Association to pay dividends not otherwise 
                prohibited hereunder or limit any liability of the 
                Holding Company explicitly provided for in this part.
            ``(9) Association board of directors.--Notwithstanding any 
        other provision of part B of this title, after the 
        reorganization effective date, the 14 directors of the 
        Association elected by the Association's stockholders (which 
        immediately after the reorganization effective date shall be 
        the Holding Company) shall no longer be required to meet the 
        eligibility requirements set forth in section 439(c).
            ``(10) Issuance of stock warrants.--At the reorganization 
        effective date, the Holding Company shall issue to the 
        Secretary of the Treasury 100,000 stock warrants, each 
        entitling the holder of the stock
         warrant to purchase from the Holding Company one share of the 
registered common stock of the Holding Company at any time on or before 
December 31, 2004. The exercise price for such warrants shall be an 
amount equal to (A) the average closing price of the common stock of 
the Association for the 20 business days prior to and including the 
date of enactment of this section on the exchange or market which is 
then the primary exchange or market for the common stock of the 
Association, plus (B) 10 percent of the average price described in 
clause (A) subject to any adjustments necessary to reflect the 
conversion of Association common stock into Holding Company common 
stock as part of the plan of reorganization approved by the 
Association's shareholders.
            ``(11) Restrictions on transfer of association shares and 
        bankruptcy of association.--After the reorganization effective 
        date, the Holding Company shall not sell, pledge, or otherwise 
        transfer the outstanding shares of the Association, or agree to 
        or cause the Association to file bankruptcy, without prior 
        approval of the Secretary of the Treasury; except, that such 
        approval shall not be withheld if, after giving effect to such 
        event, the safety and soundness provisions of section 439(r) 
        are maintained.
    ``(d) Discharge of Remaining Obligations, Liquidation and 
Dissolution of the Association.--The Association shall dissolve and its 
separate existence shall terminate on December 31, 2004, after 
discharge of its remaining obligations and liquidation pursuant to this 
subsection. The Association may dissolve pursuant to this subsection 
prior to December 31, 2004 by notifying the Secretary of Education of 
its intention to dissolve, unless within 60 days of receipt of such 
notice the Secretary notifies the Association that it continues to be 
needed to serve as a lender of last resort pursuant to section 439(q) 
of this Act or continues to be needed to purchase loans under an 
agreement with the Secretary described in section 440(c)(6). On the 
dissolution date, the Association shall take the following actions:
            ``(1) Establishment of a trust.--The Association shall, 
        under the terms of an irrevocable trust agreement in form and 
        substance satisfactory to the Association and the appointed 
        trustee, irrevocably transfer the remaining obligations to the 
        trust and irrevocably deposit or cause to be deposited into 
        such trust the following assets, as trust funds solely for the 
        benefit of holders of the remaining obligations--
                    ``(A) money or noncallable obligations of or 
                guaranteed by the United States of America or any 
                agency thereof for which payment the full faith and 
                credit of the United States is pledged, maturing as to 
                principal and interest in such amounts and at such 
                times as are sufficient without consideration of any 
                significant reinvestment of such interest to pay the 
                principal of and interest on such remaining obligations 
                to stated maturity,
                    ``(B) securities or financial assets (which may 
                include student loans) in such amounts and of such kind 
                as to ensure the highest credit rating from a 
                nationally recognized bond rating agency for such 
                trust, and as to which the Holding Company shall agree 
                to take all actions necessary to maintain such rating, 
                or
                    ``(C) a combination of subparagraphs (A) and (B).
        All money, obligations, or financial assets deposited into the 
        trust pursuant to this subsection shall be applied by the 
        trustee to the payment of the obligations assumed by the trust. 
        Upon the fulfillment of
         the trustee's obligations under the trust, any remaining 
assets of the trust shall be transferred to the Holding Company or its 
subsidiaries, or both, as directed by the Holding Company. To the 
extent that such money, obligations, and financial assets are 
insufficient to pay the obligations assumed by the trust at the time 
such obligations become due, the Holding Company shall agree to fully 
and unconditionally guarantee the payment of such obligations.
            ``(2) Obligations not transferred to the trust.--The 
        Association shall make proper provision under applicable State 
        law (which, in the absence of any other applicable law shall be 
        deemed the District of Columbia law) for all other obligations 
        of the Association (including the repurchase or redemption or 
        the making of proper provision for the repurchase or redemption 
        on or prior to December 31, 2004 of any preferred stock of the 
        Association then outstanding).
            ``(3) Transfer of remaining assets and liabilities.--The 
        Association shall transfer to the Holding Company or its 
        subsidiaries, or both, as directed by the Holding Company, all 
        remaining assets and liabilities of the Association not 
        deposited in the trust.
    ``(e) Operation of the Holding Company.--
            ``(1) Holding company board of directors.--The number and 
        composition of the Board of Directors of the Holding Company 
        shall be determined as set forth in the Holding Company's 
        charter or like instrument (as amended from time to time) or 
        bylaws (as amended from time to time) and as permissible under 
        the laws of the jurisdiction of its incorporation.
            ``(2) Holding company name.--The names of the Holding 
        Company and any direct or indirect subsidiary of the Holding 
        Company other than the Association (A) may not contain the name 
        `Student Loan Marketing Association', and (B) may contain (to 
        the extent permitted by the applicable State or District of 
        Columbia law), `Sallie Mae', or variations thereof or such 
        other name as the Board of Directors of the Association or the 
        Holding Company shall deem appropriate.
    ``(f) Strict Construction.--Except as specifically set forth in 
this section, nothing contained in this section shall be construed to 
limit the authority of the Association as a federally chartered 
corporation, or of the Holding Company as a State or District of 
Columbia chartered corporation.
    ``(g) Deadline for Reorganization Effective Date.--This section 
shall be of no further force and effect in the event that the 
reorganization effective date does not occur on or before 18 months 
after the date of enactment of this section.
    ``(h) Definitions.--For purposes of this section--
            ``(1) The term `Association' means the Student Loan 
        Marketing Association.
            ``(2) The term `dissolution date' shall mean December 31, 
        2004, or such earlier date as the Secretary of Education 
        permits the transfer of remaining obligations in accordance 
        with subsection (d) of this section.
            ``(3) The term `reorganization effective date' means the 
        effective date of the reorganization as determined by the Board 
        of Directors of the Association, which shall not be earlier 
        than the date that stockholder approval is obtained pursuant to 
        subsection (b) of this section and shall not be later than the 
        date that is 18 months after the date of enactment of this 
        section.
            ``(4) The term `Holding Company' means the new business 
        corporation formed pursuant to this
         section by the Association under the laws of any State of the 
United States or the District of Columbia.
            ``(5) The term `remaining obligations' shall mean the debt 
        obligations of the Association outstanding as of the 
        dissolution date.
            ``(6) The term `remaining property' shall mean the 
        following assets and liabilities of the Association which are 
        outstanding as of the reorganization effective date: (A) debt 
        obligations issued by the Association, (B) contracts relating 
        to interest rate, currency, or commodity positions or 
        protections, (C) investment securities owned by the 
        Association, (D) any instruments, assets, or agreements 
        described in section 439(d) of this Act (including without 
        limitation all student loans, forward purchase and lending 
        commitments, warehousing advances, academic facilities 
        obligations, letters of credit, standby bond purchase 
        agreements, liquidity agreements, and student loan revenue 
        bonds or other loans), and (E) except as specifically 
        prohibited by this Act, any other nonmaterial assets or 
        liabilities of the Association which the Association's Board of 
        Directors determines to be necessary or appropriate to its 
        operations.
            ``(7) The term `reorganization' means the restructuring 
        event or events (including any merger event) giving effect to 
        the holding company structure described in subsection (a) of 
        this section.
            ``(8) The term `subsidiaries' shall mean one or more direct 
        or indirect subsidiaries of the Holding Company.''.
    (b) Technical Amendments.--
            (1) Amendments to the higher education act.--Effective on 
        the reorganization effective date (as defined in section 
        440(h)(3) of the Higher Education Act of 1965, as added by 
        subsection (a)), sections 435(d)(1)(F) and (G) and 
        428C(a)(1)(A) of such Act (20 U.S.C. 1085(d)(1)(F), (G); 1078-
        3(a)(1)(A)) are each amended by inserting after ``Student Loan 
        Marketing Association'' the following: ``or the Holding Company 
        of the Student Loan Marketing Association, including all 
        subsidiaries of such Holding Company, created pursuant to 
        section 440 of this Act,''.
            (2) Repeal of the association's charter.--Effective on the 
        dissolution date (as defined in section 440(h)(2) of the Higher 
        Education Act of 1965, as added by subsection (a)), section 439 
        of the Higher Education Act of 1965 (20 U.S.C. 1087-2) is 
        repealed.
      Subtitle B--College Construction Loan Insurance Association

SEC. 621. PRIVATIZATION OF COLLEGE CONSTRUCTION LOAN INSURANCE 
              ASSOCIATION.

    (a) Repeal of Statutory Restrictions.--Part D of title VII of the 
Higher Education Act of 1965 (20 U.S.C. 1132f et seq.) is repealed.
    (b) Status of the Corporation.--
            (1) Status of the corporation.--The Corporation shall not 
        be an agency, instrumentality, or establishment of the United 
        States Government and shall not be a ``Government corporation'' 
        nor a ``Government controlled corporation'' as defined in 
        section 103 of title 5, United States Code. No action under 
        section 1491 of title 28, United States Code (commonly known as 
        the Tucker Act) shall be allowable against the United States 
        based on the actions of the Corporation.
            (2) Corporate powers.--The Corporation shall have the power 
        to engage in any business or other activities for which 
        corporations may be organized under the laws of any State of 
        the United States or the District of Columbia. The Corporation 
        shall have the power to enter into contracts, to execute 
        instruments, to incur liabilities, to provide products and 
        services, and to do all things as are necessary or incidental 
        to the proper management of its affairs and the efficient 
        operation of a private, for-profit business.
    (c) Related Privatization Requirements.--
            (1) Notice requirements.--During the 5-year period 
        following the date of the enactment of this Act, the 
        Corporation shall include in any document offering the 
        Corporation's securities a statement that--
                    (A) the Corporation is not a Government-sponsored 
                enterprise or instrumentality of the United States; and
                    (B) the Corporation's obligations are not 
                guaranteed by the full faith and credit of the United 
                States.
            (2) Corporate charter.--The Corporation's charter shall be 
        amended as necessary and without delay to conform the 
        requirements of this Act.
            (3) Corporate name.--The name of the Corporation, or of any 
        direct or indirect subsidiary thereof, may not contain the term 
        ``College Construction Loan Insurance Association''.
            (4) Articles of incorporation.--The Corporation shall amend 
        its articles of incorporation without delay to reflect that one 
        of the purposes of the Corporation shall be to guarantee, 
        insure and reinsure bonds, leases, and other evidences of debt 
        of educational institutions, including Historically Black 
        Colleges and Universities and other academic institutions which 
        are ranked in the lower investment grade category using a 
        nationally recognized credit rating system.
            (5) Transition requirements.--
                    (A) Requirements until stock sale.--Notwithstanding 
                subsection (a), the requirements of section 754 of the 
                Higher Education Act of 1965 (20 U.S.C. 1132f-3), as in 
                existence as of the day before enactment of this Act, 
                shall continue to be effective until the day 
                immediately following the date of closing of the 
                purchase of the Secretary's stock (or the date of 
                closing of the final purchase, in the case of multiple 
                transactions) pursuant to subsection (d) of this 
                section.
                    (B) Reports after stock sale.--The Corporation 
                shall, not later than March 30 of the first full 
                calendar year immediately following the sale pursuant 
                to subsection (d), and each of the 2 succeeding years, 
                submit to the Secretary of Education a report 
                describing the Corporation's efforts to assist in the 
                financing of education facilities projects, including 
                projects for elementary, secondary, and postsecondary 
                educational institution infrastructure, and detailing, 
                on a project-by-project basis, the Corporation's 
                business dealings with educational institutions that 
                are rated by a nationally recognized statistical rating 
                organization at or below the organization's third 
                highest ratings.
    (d) Sale of Federally Owned Stock.--
            (1) Sale of stock required.--The Secretary of the Treasury 
        shall, upon the request of the Secretary of Education sell, 
        pursuant to section 324 of title 31, United States Code, the 
        voting common stock of the Corporation owned by the Secretary 
        of Education not later than one year after the date of the 
        enactment of this Act.
            (2) Purchase by the corporation.--In the event that the 
        Secretary of the Treasury is unable to sell the voting common 
        stock, or any portion thereof, at a price acceptable to the 
        Secretary of Education and the Secretary of the Treasury within 
        the period specified in paragraph (1), the Corporation shall 
        purchase such stock at a price determined by the Secretary of 
        the Treasury and acceptable to the Corporation based on 
        independent appraisal by one or more nationally recognized 
        financial advisory firms. Such firms shall be selected by the 
        Secretary of the Treasury in consultation with the Secretary of 
        Education and the Corporation.
            (3) Reimbursement of costs of sale.--The Secretary of the 
        Treasury shall be reimbursed from the proceeds of the sale of 
        the stock under this section for all reasonable costs of any 
        contracts related to such sale, including all reasonable 
        expenses relating to one or more independent appraisals under 
        this section.
    (e) Assistance by the Corporation.--The Corporation shall provide 
such assistance as the Secretary of the Treasury and the Secretary of 
Education may require to facilitate the sale of the stock under this 
section.
    (f) Definition.--As used in this section, the term ``Corporation'' 
means the Corporation established pursuant to the provision of law 
repealed by subsection (a).
               TITLE VII--REPEALERS AND OTHER AMENDMENTS.

SEC. 701. CARL D. PERKINS VOCATIONAL AND APPLIED TECHNOLOGY EDUCATION 
              ACT.

    The Carl D. Perkins Vocational and Applied Technology Education Act 
(20 U.S.C. 2301 et seq.) is repealed.

SEC. 702. SCHOOL-TO-WORK OPPORTUNITIES ACT.

     The School-to-Work Opportunities Act of 1994 (20 U.S.C. 6101 et 
seq.) is repealed.

SEC. 703. ADULT EDUCATION ACT.

    (a) In General.--The Adult Education Act (20 U.S.C. 1201 et seq.) 
is repealed.
    (b) Conforming Amendments.--
            (1) Esea.--The Elementary and Secondary Education Act of 
        1965 (20 U.S.C. 6301 et seq.) is amended--
                    (A) in section 1202(c)(1), by striking ``the Adult 
                Education Act,'' and inserting ``title IV of the 
                CAREERS Act,'';
                    (B) in section 1205(8)(B), by striking ``the Adult 
                Education Act,'' and inserting ``title IV of the 
                CAREERS Act,'';
                    (C) in section 1206(a)(1)(A), by striking ``the 
                Adult Education Act;'' and inserting ``title IV of the 
                CAREERS Act;''; and
                    (D) in section 9161(2), by striking ``section 
                312(2) of the Adult Education Act.'' and inserting 
                ``section 5 of the CAREERS Act.''.
            (2) Technology for education act.--The Technology for 
        Education Act of 1994 (20 U.S.C. 6801 et seq.) is amended in 
        section 3113(1) by striking ``section 312 of the Adult 
        Education Act;'' and inserting ``section 5 of the CAREERS 
        Act;'';

SEC. 704. NATIONAL LITERACY ACT.

    The National Literacy Act of 1991, except section 101 of such Act, 
is repealed.

SEC. 705. LIBRARY SERVICES AND CONSTRUCTION ACT.

    (a) In General.--The Library Services and Construction Act (20 
U.S.C. 351 et seq.) is repealed.
    (b) Conforming Amendment.--The Technology for Education Act of 1994 
(20 U.S.C. 6801 et seq.) is amended in section 3113(10) by striking 
``section 3 of the Library Services and Construction Act;'' and 
inserting ``section 5 of the CAREERS Act;''.

SEC. 706. TECHNOLOGY FOR EDUCATION ACT OF 1994.

    Sections 3601 through 3605 of the Technology for Education Act of 
1994 (20 U.S.C. 7001 et seq.) (relating to the library media resources 
program) are repealed.

SEC. 707. JOB TRAINING PARTNERSHIP ACT.
    (a) In General.--The Job Training Partnership Act (29 U.S.C. 1501 
et seq.), except sections 421 through 439 and section 441 of such Act 
(29 U.S.C. 1691 et seq.) (relating to the Job Corps), is hereby 
repealed.
    (b) Conforming Amendments to Job Corps.--The Job Training 
Partnership Act (29 U.S.C. 1501 et seq.) is amended--
            (1) by redesignating sections 421 through 439 as sections 1 
        through 20, respectively;
            (2) in section 1 (as redesignated), by striking ``part'' 
        each place it appears and inserting ``Act'';
            (3) in section 3(4) (as redesignated), by striking 
        ``sections 424 and 425'' and inserting ``sections 4 and 5'';
            (4) in section 4 (as redesignated)--
                    (A) in subsection (a), by striking ``entities 
                administering programs under title II of this Act,''; 
                and
                    (B) in subsection (b), by striking ``part'' and 
                inserting ``Act'';
            (5) in section 6 (as redesignated)--
                    (A) in subsection (a), by striking ``section 428'' 
                and inserting ``section 8''; and
                    (B) by striking subsection (d);
            (6) in section 7 (as redesignated)--
                    (A) by striking subsection (b); and
                    (B) by redesignating subsection (c) as subsection 
                (b);
            (7) in section 13 (as redesignated)--
                    (A) in subsection (a)(4), by striking ``part'' and 
                inserting ``Act'';
                    (B) in subsection (c)(1), by striking ``and 
                activities authorized under sections 452 and 453''; and
                    (C) in subsection (e), by striking ``section 431'' 
                and inserting ``section 11'';
            (8) in section 14 (as redesignated)--
                    (A) in subsection (a)--
                            (i) in the matter preceding paragraph (1), 
                        by striking ``section 427'' and inserting 
                        ``section 7''; and
                            (ii) in paragraph 4(A), by striking 
                        ``section 428'' and inserting ``section 8'';
                    (B) in subsection (c)(3), by striking ``section 
                423'' and inserting ``section 3'';
                    (C) in subsection (d), by striking ``sections 424 
                and 425'' and inserting ``sections 4 and 5''; and
                    (D) in subsection (e), by striking ``, pursuant to 
                section 452(d),'';
            (9) in section 16 (as redesignated), by striking ``part'' 
        each place it appears and inserting ``Act'';
            (10) in section 19 (as redesignated), by striking ``part'' 
        each place it appears and inserting ``Act'';
            (11) in section 20 (as redesignated), by striking ``part'' 
        and inserting ``Act''; and
            (12) by adding at the end the following new section:

                   ``authorization of appropriations

    ``Sec. 21. There are authorized to be appropriated such sums as are 
necessary to carry out this Act.''.

SEC. 708. STEWART B. McKINNEY HOMELESS ASSISTANCE ACT.

    (a) Adult Education.--Section 702 of the Stewart B. McKinney 
Homeless Assistance Act (42 U.S.C. 11421) is repealed.
    (b) Subtitle C.--
            (1) In general.--Subtitle C of title VII of the Stewart B. 
        McKinney Homeless Assistance Act (42 U.S.C. 11441 et seq.), 
        except section 738, is hereby repealed.
            (2) Table of contents.--The table of contents of such Act 
        is amended by striking the items relating to sections 731 
        through 737 and sections 739 through 741.

SEC. 709. HIGHER EDUCATION PROVISIONS.

    (a) Higher Education Act of 1965 Provisions.--The following 
provisions of the Higher Education Act of 1965 are repealed:
            (1) Part B of title I (20 U.S.C. 1011 et seq.), relating to 
        articulation agreements.
            (2) Part C of title I (20 U.S.C. 1015 et seq.), relating to 
        access and equity to education for all Americans through 
        telecommunications.
            (3) Title II (20 U.S.C. 1021 et seq.), relating to academic 
        libraries and information services.
            (4) Chapter 2 of subpart 2 of part A of title IV (20 U.S.C. 
        1070a-21 et seq.), relating to national early intervention 
        scholarships.
            (5) Chapter 3 of subpart 2 of part A of title IV (20 U.S.C. 
        1070a-31 et seq.), relating to presidential access 
        scholarships.
            (6) Chapter 4 of subpart 2 of part A of title IV (20 U.S.C. 
        1070a-41 et seq.), relating to model program community 
        partnerships and counseling grants.
            (7) Chapter 5 of subpart 2 of part A of title IV (20 U.S.C. 
        1070a-52 et seq.), relating to a database and information line 
        concerning student financial assistance.
            (8) Chapter 8 of subpart 2 of part A of title IV (20 U.S.C. 
        1070a-81), relating to technical assistance for teachers and 
        counselors.
            (9) Subpart 4 of part A of title IV (20 U.S.C. 1070c et 
        seq.), relating to State student incentive grants.
            (10) Subpart 5 of part A of title IV of the Higher 
        Education Act of 1965 (20 U.S.C. 1070d-2).
            (11) Subpart 8 of part A of title IV (20 U.S.C. 1070f), 
        relating to special child care services for disadvantaged 
        college students.
            (12) Section 428J (20 U.S.C. 1078-10), relating to loan 
        forgiveness for teachers, individuals performing national 
        community service and nurses.
            (13) Section 486 (20 U.S.C. 1093), relating to training in 
        financial aid services.
            (14) Subpart 1 of part H of title IV (20 U.S.C. 1099a et 
        seq.) relating to State postsecondary review entity programs.
            (15) Part A of title V (20 U.S.C. 1102 et seq.), relating 
        to State and local programs for teacher excellence.
            (16) Part B of title V (20 U.S.C. 1103 et seq.), relating 
        to national teacher academies.
            (17) Subpart 1 of part C of title V (20 U.S.C. 1104 et 
        seq.), relating to Douglas teacher scholarships.
            (18) Subpart 3 of part C of title V (20 U.S.C. 1106 et 
        seq.), relating to the teacher corps.
            (19) Subpart 3 of part D of title V (20 U.S.C. 1109 et 
        seq.), relating to class size demonstration grants.
            (20) Subpart 4 of part D of title V (20 U.S.C. 1110 et 
        seq.), relating to middle school teaching demonstration 
        programs.
            (21) Subpart 1 of part E of title V (20 U.S.C. 1111 et 
        seq.), relating to new teaching careers.
            (22) Subpart 1 of part F of title V (20 U.S.C. 1113 et 
        seq.), relating to the national mini corps programs.
            (23) Section 586 (20 U.S.C. 1114), relating to 
        demonstration grants for critical language and area studies.
            (24) Section 587 (20 U.S.C. 1114a), relating to development 
        of foreign languages and cultures instructional materials.
            (25) Subpart 3 of part F of title V (20 U.S.C. 1115), 
        relating to small State teaching initiatives.
            (26) Subpart 4 of part F of title V (20 U.S.C. 1116), 
        relating to faculty development grants.
            (27) Subpart 5 of part F of title V (20 U.S.C. 1117), 
        relating to early childhood staff training and professional 
        enhancement.
            (28) Section 605 (20 U.S.C. 1124a), relating to intensive 
        summer language institutes.
            (29) Section 607 (20 U.S.C. 1125a), relating to foreign 
        language periodicals.
            (30) Part A of title VII (20 U.S.C. 11326 et seq.), 
        relating to academic and library facilities.
            (31) Title VIII (20 U.S.C. 1133 et seq.), relating to 
        cooperative education programs.
            (32) Part A of title IX (20 U.S.C. 1134a et seq.), relating 
        to women and minority participation in graduate education.
            (33) Part B of title IX (20 U.S.C. 1134d et seq.), relating 
        to Harris fellowships.
            (34) Part C of title IX (20 U.S.C. 1134h et seq.), relating 
        to Javits fellowships.
            (35) Part E of title IX (20 U.S.C. 1134r et seq.), relating 
        to the faculty development fellowship program.
            (36) Part F of title IX (20 U.S.C. 1134s et seq.), relating 
        to legal training for the disadvantaged.
            (37) Part G of title IX (20 U.S.C. 1134u et seq.), relating 
        to law school clinical programs.
            (38) Section 1011 (20 U.S.C. 1135a-11), relating to special 
        projects in areas of national need.
            (39) Subpart 2 of part B of title X (20 U.S.C. 1135c et 
        seq.), relating to science and engineering access programs.
            (40) Part C of title X (20 U.S.C. 1135e et seq.), relating 
        to women and minorities science and engineering outreach 
        demonstration programs.
            (41) Part D of title X (20 U.S.C. 1135f), relating to 
        Eisenhower leadership programs.
            (42) Title XI (20 U.S.C. 1136 et seq.), relating to 
        community service programs.
    (b) Education Amendments of 1986 Provisions.--The following 
provisions of the Education Amendments of 1986 are repealed:
            (1) Part E of title XIII (20 U.S.C. 1221-1 note), relating 
        to a National Academy of Science study.
            (2) Title XV (20 U.S.C. 4401 et seq.), relating to American 
        Indian, Alaska Native, and Native Hawaiian culture and art 
        development.
    (c) Education Amendments of 1992 Provisions.--The following 
provisions of the Education Amendments of 1992 are repealed:
            (1) Part F of title XIII (25 U.S.C. 3351 et seq.), relating 
        to American Indian postsecondary economic development 
        scholarships.
            (2) Part G of title XIII (25 U.S.C. 3371), relating to 
        American Indian teacher training.
            (3) Section 1406 (20 U.S.C. 1221e-1 note), relating to a 
        national survey of factors associated with participation.
            (4) Section 1409 (20 U.S.C. 1132a note), relating to a 
        study of environmental hazards in institutions of higher 
        education.
            (5) Section 1412 (20 U.S.C. 1101 note), relating to a 
        national job bank for teacher recruitment.
            (6) Part B of title XV (20 U.S.C. 1452 note), relating to a 
        national clearinghouse for postsecondary education materials.
            (7) Part C of title XV (20 U.S.C. 1101 note), relating to 
        school-based decisionmakers.
            (8) Part D of title XV (20 U.S.C. 1145h note), relating to 
        grants for sexual offenses education.
            (9) Part E of title XV (20 U.S.C. 1070 note), relating to 
        Olympic scholarships.
            (10) Part G of title XV (20 U.S.C. 1070a-11 note), relating 
        to advanced placement fee payment programs.
    (d) Conforming Amendments.--The Higher Education Act of 1965 is 
amended--
            (1) in section 453(c)(2)--
                    (A) by striking subparagraph (E); and
                    (B) by redesignating subparagraphs (F) through (H) 
                as subparagraphs (E) through (G), respective;
            (2) in section 487(a)(3), by striking subparagraph (B) and 
        redesignating subparagraphs (C) and (D) as subparagraphs (B) 
        and (C), respectively;
            (3) in section 487(a)(15), by striking ``the Secretary of 
        Veterans Affairs, and State review entities under subpart 1 of 
        part H'' and inserting ``and the Secretary of Veterans 
        Affairs'';
            (4) in section 487(a)(21), by striking ``, State 
        postsecondary review entities,'';
            (5) in section 487(c)(1)(A)(i), by striking ``State 
        agencies, and the State review entities referred to in subpart 
        1 of part H'' and inserting ``and State agencies'';
            (6) in section 487(c)(4), by striking ``, after 
        consultation with each State review entity designated under 
        subpart 1 of part H,'';
            (7) in section 487(c)(5), by striking ``State review 
        entities designated under subpart 1 of part H,'';
            (8) in section 496(a)(7), by striking ``and the appropriate 
        State postsecondary review entity'';
            (9) in section 496(a)(8), by striking ``and the State 
        postsecondary review entity of the State in which the 
        institution of higher education is located'';
            (10) in section 498(g)(2), by striking everything after the 
        first sentence;
            (11) in section 498A(a)(2)(D), by striking ``by the 
        appropriate State postsecondary review entity designated under 
        subpart 1 of this part or'';
            (12) in section 498A(a)(2)--
                    (A) by inserting ``and'' after the semicolon at the 
                end of subparagraph (E);
                    (B) by striking subparagraph (F); and
                    (C) by redesignating subparagraph (G) as 
                subparagraph (F); and
            (13) in section 498A(a)(3)--
                    (A) by inserting ``and'' after the semicolon at the 
                end of subparagraph (C);
                    (B) by striking ``; and'' at the end of 
                subparagraph (D) and inserting a period; and
                    (C) by striking subparagraph (E).

SEC. 710. EFFECTIVE DATE.

    The repeals and amendments made by this title shall take effect on 
October 1, 1996.
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