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





                                                  Union Calendar No. 70

104th CONGRESS

  1st Session

                               H. R. 1617

                          [Report No. 104-152]

_______________________________________________________________________

                                 A BILL

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

_______________________________________________________________________

                             June 22, 1995

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
                                                  Union Calendar No. 70
104th CONGRESS
  1st Session
                                H. R. 1617

                          [Report No. 104-152]

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

                             June 22, 1995

   Additional sponsors: Mr. Weller, Mr. Herger, Mrs. Seastrand, Mr. 
  Linder, Mrs. Johnson of Connecticut, Mr. Rogers, Mr. Goodlatte, Mr. 
                     Hancock, and Mr. Sensenbrenner

                             June 22, 1995

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
[For text of introduced bill, see copy of bill as introduced on May 11, 
                                 1995]

_______________________________________________________________________

                                 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. Authorization of appropriations.
Sec. 5. Definitions.
Sec. 6. Transition.

             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. Establishment of workforce development areas.
Sec. 106. Provisions regarding local workforce development boards.
Sec. 107. Establishment of one-stop career center systems.
Sec. 108. Certification of education, training, and vocational 
                            rehabilitation service providers.
Sec. 109. Management information systems.
Sec. 110. Performance accountability system.

              Subtitle B--Amendments to Wagner-Peyser Act

Sec. 131. General program requirements.
Sec. 132. Labor market information.

                       Subtitle C--Worker Rights

Sec. 141. Requirements.

 TITLE II--YOUTH DEVELOPMENT AND CAREER PREPARATION CONSOLIDATION GRANT

Sec. 201. Purposes.
Sec. 202. 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

Sec. 231. Partnership agreements.
Sec. 232. Distribution of funds.

                       Chapter 1--In-School Youth

Sec. 241. Uses of funds for in-school youth.

                        Chapter 2--At-Risk Youth

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. Assessment and data collection of youth development and 
                            career preparation 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 AND FAMILY LITERACY CONSOLIDATION GRANT AND 
          LIBRARY SERVICES AND TECHNOLOGY CONSOLIDATION GRANT

Sec. 401. Findings.
Sec. 402. Definitions.

  Subtitle A--Adult Education and Family Literacy Consolidation Grant

Sec. 411. Purposes.

                           Chapter 1--Funding

Sec. 421. Reservations from amounts appropriated.
Sec. 422. Allotment.

                      Chapter 2--Grants to States

Sec. 431. Requirement to make grants.
Sec. 432. Uses of funds.
Sec. 433. Additional grant requirements.
Sec. 434. Performance measures.

                      Chapter 3--National Programs

Sec. 441. National Institute for Literacy.
Sec. 442. National leadership activities.

    Subtitle B--Library Services and Technology Consolidation Grant

Sec. 451. Purposes.
Sec. 452. Authorization of appropriations.
Sec. 453. Allotments.
Sec. 454. Grants to States.
Sec. 455. Uses of funds.
Sec. 456. Annual applications.

           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. Revision of title I.

       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--REPEALERS AND OTHER AMENDMENTS

Sec. 601. Carl D. Perkins Vocational and Applied Technology Education 
                            Act.
Sec. 602. School-to-Work Opportunities Act.
Sec. 603. Adult Education Act.
Sec. 604. National Literacy Act.
Sec. 605. Library Services and Construction Act.
Sec. 606. Technology for Education Act of 1994.
Sec. 607. Job Training Partnership Act.
Sec. 608. Stewart B. McKinney Homeless Assistance Act.
Sec. 609. 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 youth 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, 
                including the use of private sector service providers 
                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 decisionmakers.
            (6) Early exposure to career opportunities, including 
        opportunities in the practical arts or trade, 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. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated--
            (1) for title II, $2,308,200,000 for fiscal year 1997 and 
        such sums as may be necessary for each of the fiscal years 1998 
        through 2002 to carry out the programs under such title;
            (2) for title III, $2,263,400,000 for fiscal year 1997 and 
        such sums as may be necessary for each of the fiscal years 1998 
        through 2002 to carry out the programs under such title; and
            (3) for subtitle A of title IV, $280,000,000 for fiscal 
        year 1997 and such sums as may be necessary for each of the 
        fiscal years 1998 through 2002 to carry out the programs under 
        such subtitle.
    (b) Program Year.--
            (1) In general.--Beginning with fiscal year 1997, and 
        thereafter, appropriations for any fiscal year for programs and 
        activities under this Act shall be available for obligation 
        only on the basis of a program year. The program year shall 
        begin on July 1 in the fiscal year for which the appropriation 
        is made.
            (2) Obligation.--Funds obligated for any program year under 
        titles II, III, and IV, may be expended by each recipient 
        during that program year and the two succeeding program years, 
        except that the Secretary shall, in accordance with paragraph 
        (3), reallot to eligible States the funds allotted to States 
        from funds appropriated for reallotments.
            (3) Amounts available for reallotment.--The amount 
        available for reallotment is equal to--
                    (A) the amount by which the unobligated balance of 
                the State allotment at the end of the program year 
                prior to the program year for which the determination 
                under this section is made exceeds 20 percent of such 
                allotment for the prior program year; plus
                    (B) the unexpended balance of the State allotment 
                from any program year prior to the program year in 
                which there is such excess.

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--
                    (A) an out-of-school, at-risk youth who is an 
                individual age 24 or younger and who is not enrolled in 
                a secondary or postsecondary education program, has not 
                received a high school diploma or equivalent and must 
                overcome barriers to employment such as economic 
                disadvantages, disability, or limited English 
                proficiency; or
                    (B) an in-school, at-risk youth who is an 
                individual age 24 or younger who is enrolled in an 
                accredited secondary or postsecondary education program 
                but is at risk of dropping out of school or must 
                overcome barriers to complete an education program, 
                such as economic disadvantages, disability, or limited 
                English proficiency.
            (5) Career exploration and guidance counseling.--The term 
        ``career exploration and guidance counseling'' means a 
        program--
                    (A) which pertains 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 assists such individuals in making and 
                implementing informed educational and occupational 
                choices; and
                    (C) which is comprehensive in nature and provided 
                through an educational program beginning in as early a 
                grade as possible, including late elementary and middle 
                school grades.
            (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, supportive services, or 
        internship services and programs.
            (9) Demographic characteristics.--The term ``demographic 
        characteristics'' means information on population, especially 
        with reference to size, density, distribution, and vital 
        statistics including, age, race, sex, ethnic origin, and income 
        status.
            (10) Dislocated worker.--The term ``dislocated worker'' 
        means an individual who--
                    (A) has been terminated or laid off or who has 
                received a notice of termination or layoff from 
                employment, is eligible for or has exhausted 
                entitlement to unemployment compensation, and is 
                unlikely to return to a previous industry or 
                occupation;
                    (B) has been terminated, or has 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) has been unemployed long-term and has limited 
                opportunities for employment or reemployment in the 
                same or a similar occupation in the area in which such 
                individual resides, including an older individual who 
                may have substantial barriers to employment by reason 
                of age; or
                    (D) was self-employed (including farmers and 
                ranchers) but is unemployed as a result of general 
                economic conditions in the community in which they 
                reside or because of natural disasters.
            (11) Displaced homemaker.--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 title II of this Act; or
                    (iv) is unemployed or underemployed and is 
                experiencing difficulty in obtaining any employment or 
                suitable employment, as appropriate.
            (12) 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.
            (13) 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.
            (14) 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.
            (15) Educational service agency.--The term ``educational 
        service agency'' means a regional public multiservice agency 
        authorized by State statute to develop, manage, and provide 
        services or programs to local education agencies, and is 
        recognized 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.
            (16) 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) on active military duty.
            (17) 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.
            (18) 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.
            (19) Governor.--The term ``Governor'' means the chief 
        executive of State.
            (20) 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.
            (21) Individuals with disabilities.--The term ``individuals 
        with disabilities'' has the meaning given such term in the 
        Vocational Rehabilitation Act of 1973.
            (22) 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.
            (23) 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 employability services.
            (24) 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.
            (25) 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 Act.
            (26) 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.
            (27) 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.
            (28) Native american.--The term ``native American'' means 
        Indians, Alaskan natives, and Hawaiian natives.
            (29) Nontraditional employment.--The term ``nontraditional 
        employment'' as applied to women refers to occupations or 
        fields of work where women comprise less than 25 percent of the 
        individuals employed in such occupation or field of work.
            (30) 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.
            (31) 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.).
            (32) 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.
            (33) 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.
            (34) 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, and 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.
            (35) 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.
            (36) 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.
            (37) 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.
            (38) 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.
            (39) 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.
            (40) 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.
            (41) 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 or 
        vocational rehabilitation program or job search activities 
        funded under this Act. Such supportive services may include 
        transportation, individual and family counseling, child care 
        and dependent care, meals, temporary shelter, financial 
        counseling, needs-based payments, and other reasonable expenses 
        required for participation in a training, job preparation, or 
        job placement 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.
            (42) 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.
            (43) 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.
            (44) Veteran.--The term ``veteran'' has the meaning given 
        such term in section 101(2) of title 38, United States Code.
            (45) 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.
            (46) 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.
            (47) Youth.--The term ``youth'' means an individual under 
        the age of 24.

SEC. 6. TRANSITION.

    The Secretary of Education and the Secretary of Labor shall take 
such steps as they determine to be appropriate to provide for the 
orderly transition from any authority under provisions of statutes 
amended or repealed by this Act or any related authority under 
provisions of this Act.
             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 States 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 
                Development and Career Preparation Consolidation Grant.
                    (B) The program under title III, the Adult 
                Employment and Training Consolidation Grant.
                    (C) The program under subtitle A of title IV, the 
                Adult Education and Family Literacy 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 Act, 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) or (c), 
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) representatives of the following (which representatives 
        are appointed by the Governor)--
                    (A) business and industry;
                    (B) local chief elected officials (representing 
                both cities and counties);
                    (C) local educational agencies (including 
                vocational educators);
                    (D) postsecondary institutions (including community 
                and technical colleges);
                    (E) the State rehabilitation advisory council;
                    (F) organizations representing individuals served 
                by programs established under this Act (including 
                community-based organizations); and
                    (G) employees.
            (2) the lead State agency official or officials for--
                    (A) the State educational agency (including 
                representatives of vocational education, adult 
                education and literacy, and libraries);
                    (B) the State agency responsible for economic 
                development;
                    (C) the State agency responsible for employment; 
                security (and the State agency responsible for job 
                training where different from such agency);
                    (D) the State agency responsible for postsecondary 
                education;
                    (E) the State agency responsible for vocational 
                rehabilitation, and where applicable, the State agency 
                providing vocational rehabilitation services for the 
                blind;
                    (F) the State agency responsible for welfare; and
                    (G) the representative of the Veterans' Service 
                assigned to the State under section 4103 of title 38, 
                United States Code.
    (c) Rule of Construction.--With respect to compliance with 
subsection (b)--
            (1) a State may use any existing State process (including 
        any council or similar entity) that substantially meets the 
        purposes of such subsection; or
            (2) if prior to the date of enactment of this Act, a State 
        has developed a one-stop career center system or a school-to-
        work system through a collaborative process substantially 
        similar to the process described in subsection (b), the State 
        may use such process.

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 strategic State workforce development and literacy plan 
to provide policy guidance with respect to workforce development 
programs operated in the State, and 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) a description of how the State will progress 
                toward achieving the goals and purpose of this Act as 
                established in sections 3(a)(5) and 3(b);
                    (B) 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 vocational rehabilitation needs of 
                individuals with severe disabilities residing in the 
                State, the skill and economic development needs of the 
                State, and an assessment of the type and availability 
                of workforce development, adult education, vocational 
                rehabilitation, and literacy programs in the State;
                    (C) the identification of progress indicators, 
                based on the performance measures described in titles 
                II and III, subtitle A of title IV, and title I of the 
                Vocational Rehabilitation Act of 1973, and a model of 
                continuous improvement, that the State will use to 
                measure progress made by the State, local workforce 
                development boards, and other applicable local entities 
                who are recipients of financial assistance under this 
                Act in meeting such goals; and
                    (D) a description of how performance measures are 
                consistent across the 4 grant programs established in 
                titles II and III, subtitle A of title IV, and title I 
                of the Vocational Rehabilitation Act of 1973.
            (3) A description of how the State has complied, or will 
        comply, with the provisions of sections 105 through 108.
            (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 IV, and title I of the 
        Vocational Rehabilitation Act of 1973, (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) A description of the process used by the State to 
        consult with representatives of business and industry with 
        respect to the requirements of subparagraphs (A), (B), and (C) 
        of paragraph (2) of this subsection.
            (9) 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.
            (10) A description of the sanctions which the State may 
        impose (including restrictions from future participation or 
        consideration for funding) in instances where recipients of 
        funds under this Act fail to achieve agreed upon performance 
        measures, fail to adhere to State mandated fiscal control and 
        funds accounting procedures, or take or fail to take other 
        actions required under the State plan, contracts, or other 
        agreements.
    (c) Authority of Governor.--
            (1) Final authority.--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).
            (2) Disagreement.--The Governor shall accept and include 
        with the plan submitted under paragraph (1) any disagreeing 
        views submitted by a participant of the collaborative process 
        if such views represent disagreement in the area in which such 
        participant was selected for representation.
            (3) Exception.--Nothing in this Act shall be construed to 
        negate or supersede the legal authority, under State law or 
        other applicable law, of any State agency, State entity, or 
        State public official over programs that are under the 
        jurisdiction of the agency, entity, or official. Nothing in 
        this Act shall be construed to interfere with the authority of 
        such agency, entity, or official to enter into a contract under 
        any provision of law.
    (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. ESTABLISHMENT OF WORKFORCE DEVELOPMENT 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 local chief elected officials, and after 
consideration of comments received through the public participation 
process as described in the State plan, designate 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. 106. 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 local chief 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 
        nominees submitted by local business organizations and trade 
        associations;
            (2) an individual or individuals with disabilities, who 
        have special knowledge or expertise in the area of vocational 
        rehabilitation;
            (3) representatives of education, including local 
        educational agencies and postsecondary institutions, selected 
        from among individuals nominated by regional or local 
        educational agencies, vocational education institutions, 
        institutions of postsecondary institutions (including community 
        colleges), or general organizations of such institutions within 
        the workforce development area; and
            (4) representatives of community-based organizations, 
        employees, and veterans as nominated or recommended to the 
        board through a process established by the Governors through 
        the collaborative process.
    (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 such units shall select the members 
                of the local workforce development board from the 
                individuals so nominated or recommended for such area 
                in accordance with an agreement entered into by such 
                officials and with the State criteria developed under 
                subsection (b). In the absence of such an agreement, 
                the appointments shall be made by the Governor, through 
                the collaborative process, from the individuals so 
                nominated or recommended.
            (2) Certification.--The Governor shall biennially certify 
        one local workforce development board for each workforce 
        development area.
            (3) Exception.--In any case in which a local workforce 
        development area is a State, the individuals comprising the 
        Governor's collaborative process as described in section 103, 
        may be reconstituted to meet the requirements of this section.
    (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, shall be 
        approved by the appropriate chief elected official or 
        officials, and shall be submitted to the Governor for approval. 
        If after a reasonable effort, a local workforce development 
        board is unable to obtain the approval of the chief elected 
        official or officials, the Board has the authority to forward 
        the plan, with the comments of the chief elected official or 
        officials, to the Governor for final approval or disapproval. 
        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 center system 
                        which ensures that the most effective and 
                        efficient service providers are chosen;
                            (ii) an identification of the roles of 
                        individual workforce development programs, 
                        including programs authorized by the Wagner-
                        Peyser Act; and
                            (iii) a description of the funding sources 
                        to be used in the operation of the career 
                        center system.
                    (D) A description of strategies the local workforce 
                development board will undertake to fully involve local 
                employers, local educational agencies, 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, including literacy and basic 
                skills, of the local workforce and the needs of 
                business and industry for a skilled workforce;
                    (C) economic development needs of the area;
                    (D) the type and availability of workforce 
                preparation and development programs in the area; and
                    (E) the needs for vocational rehabilitation among 
                individuals with disabilities.
        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, 
                        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 107.
                            (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), and of one-stop career centers established under 
                this title.
            (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 the local workforce development board may 
                        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, and may solicit or accept grants and 
                        contributions from sources other than from this 
                        Act.
                    (B) Limitation.--The workforce development board, 
                or employees of such board, may not operate programs 
                established under this Act.
                    (C) Conflict of interest.--A member of a workforce 
                development board may not--
                            (i) discuss or participate in board 
                        consideration; or
                            (ii) cast a vote;
                regarding the provision of services by such member (or 
                by an organization that such member represents) or 
                regarding any matter that would provide direct 
                financial benefit to such member.
                The Governor may enforce more rigorous conflict of 
                interest standards, as determined appropriate.
                    (D) Independent authority.--
                            (i) The Board shall elect its own 
                        chairperson from among the members of the 
                        board.
                            (ii) The board may adopt bylaws and other 
                        operating procedures as consistent with the 
                        purposes of this Act, and with the policies 
                        established in the State workforce development 
                        and literacy plan.
            (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. 107. 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).
    (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 search assistance;
            (4) to the extent practicable, as determined by the 
        Governor, 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, as determined by the 
        Governor, 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 to provide the services described in subsection (f), 
supplemented with multiple affiliated sites or satellites that provide 
one or more of such services and are linked through electronic and 
technological access points. Such affiliated sites may include entities 
designated as having a specialization in addressing special needs, such 
as the needs of individuals with disabilities.
    (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 centers and affiliated sites.
    (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 (including community-
        based organizations).
            (6) Private for-profit entities.
            (7) Agencies of local governments.
            (8) Other interested organizations and entities of 
        demonstrated effectiveness, including local chambers of 
        commerce and other business organizations, 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 and nondiscriminatory basis, with 
        reasonable accommodations to address the needs of individuals 
        with disabilities, 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, subtitle A of title 
                IV, and title I of the Rehabilitation Act of 1973.
                    (B) A preliminary assessment of the skill levels 
                and the need for services of the individual for 
                programs under chapter 2 of title II, title III, 
                subtitle A of 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) Job search assistance.
                    (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 IV, title I of 
                the Vocational Rehabilitation Act of 1973, available in 
                the workforce development area.
                    (J) Information on the extent to which the services 
                provided under titles II and III, subtitle A of title 
                IV, and title I of the Vocational Rehabilitation Act of 
                1973, meet or exceed the performance standards 
                described in the State plan, and the performance-based 
                information provided by the State to local workforce 
                development boards on certified providers of education 
                and training, as required under section 108(d)(3).
                    (K) Information on industry-recognized skill 
                standards and assessments.
                    (L) Job listings for local labor market 
                opportunities.
                    (M) Acceptance of applications for unemployment 
                compensation.
                    (N) Other appropriate activities to assist 
                individuals into employment.
            (2) Distribution of vouchers and skill grants.--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 108.
            (3) Special arrangements.--For the purpose of providing 
        core services to individuals with severe disabilities in the 
        most effective and efficient manner possible, the one-stop 
        career center may arrange to have such core services provided 
        to an individual by a certified provider, either on a contract 
        basis or through the use of vouchers.
    (g) Additional Services.--One-stop career centers may provide 
customized workforce development services to employers on a fee-for-
service basis, as determined by the local workforce development board.
    (h) Alternative State Procedure.--Through the collaborative process 
described in section 103, the Governor has the authority to develop 
alternative procedures to the one-stop career center system, which are 
designed to accomplish the full integration of workforce development 
programs. These alternative procedures shall be described in a proposal 
to the Secretaries of Education and Labor for joint review and approval 
or disapproval within 60 days.

SEC. 108. CERTIFICATION OF EDUCATION, TRAINING, AND VOCATIONAL 
              REHABILITATION SERVICE PROVIDERS.

    (a) Eligibility Requirements.--A program offered by a provider of 
education and training services shall be eligible to receive funds 
under title III, and title I of the Vocational Rehabilitation Act of 
1973 through the receipt of vouchers, skill grants, or through 
contract, if such program and provider--
            (1) are 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), except that providers eligible 
        under subparagraph (A) only have to provide information for 
        programs other than programs leading to a degree.
    (b) Alternative Eligibility Procedure.--(1) The Governor shall 
establish an alternative eligibility procedure for providers of 
education, training, and vocational rehabilitation services in any 
State desiring to receive funds under title III of this Act and title I 
of the Vocational Rehabilitation Act of 1973, 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 be based on guidelines developed by the 
Secretaries of Labor and Education. The Governor shall utilize the 
local workforce development boards, for the identification and 
certification of qualified providers of education, training, and 
vocational rehabilitation services. During a transition period, not to 
exceed 2 years, certification of programs and providers under this 
subsection shall be based on the performance of such programs and 
providers under the Job Training Partnership Act, the Vocational 
Rehabilitation Act, or other objective measures of previous 
performance, such as employer evaluations.
    (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 for programs to be eligible under this section. Such 
information may include information, consistent with guidelines 
developed by the Secretaries of Education and Labor, 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 priority 
        of serving individuals with 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 programs and 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 not less than 
                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, training, and vocational 
        rehabilitation 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), (c), 
        and (d).
            (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. 109. 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 that is in accordance with guidelines established jointly by the 
Secretaries in consultation with the Governors.
    (b) Requirements.--Each unified management information system 
shall, to the extent practicable as determined by the Governor--
            (1) 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 and 
        the demographic characteristics of the individuals served 
        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 common data elements and the 
        definitions included in section 5;
            (4) support local efforts to establish workforce 
        development systems, including intake and eligibility 
        determination for all services;
            (5) contain data on the demographic characteristics on the 
        individual participants served by programs authorized under 
        this Act, which shall be collected, produced, and published by 
        the Secretaries; and
            (6) be in accordance with guidelines established jointly by 
        the Secretaries in consultation with the States.
SEC. 110. PERFORMANCE ACCOUNTABILITY SYSTEM.

    (a) In General.--In order to promote high levels of performance and 
to ensure an appropriate return on the Nation's investment in the 
workforce development and literacy system, each State receiving funds 
under this Act shall develop, or have developed, a statewide 
performance accountability system in accordance with the provisions of 
this section.
    (b) Indicators of Performance.--
            (1) In general.--Each State receiving funds under this Act 
        shall identify indicators of performance for each of the 
        programs established under titles II through IV of this Act and 
        title I of the Vocational Rehabilitation Act of 1973, 
        consistent with State goals as described in the State plan in 
        accordance with section 104. Such indicators shall at a minimum 
        include core indicators described in such titles. Such 
        indicators may also take into account post-program surveys 
        measuring customer satisfaction of both employers and program 
        participants.
            (2) Technical definitions of core indicators.--In order to 
        ensure nationwide comparability of performance data, the 
        Secretary of Labor and the Secretary of Education, in 
        collaboration with the States and with representatives of 
        business and industry, employees, educational agencies, service 
        providers, participants, and other interested parties, shall 
        promulgate technical definitions of each of the core indicators 
        described in titles II through IV of this Act and in title I of 
        the Vocational Rehabilitation Act. Such definitions shall be 
        used under this Act in measuring performance.
    (c) Expected Levels of Performance.--
            (1) In general.--(A) Each State shall identify the level of 
        performance, consistent with State goals described under 
        section 104, that is expected for local workforce development 
        areas and other applicable local administrative entities under 
        this Act. In determining such levels, the State shall take into 
        account the world class levels identified under paragraph (2), 
        and shall initially develop baseline levels of performance upon 
        which States will measure continuous improvement.
            (B) The Governor, through the collaborative process, may 
        adjust the expected level of performance with respect to each 
        local area taking into account specific economic, demographic, 
        and geographic factors, and the characteristics of the 
        population to be served.
            (2) World class levels of performance.--In order to 
        encourage high levels of performance and advance the Nation's 
        competitiveness in the global economy, the Secretary of Labor 
        and the Secretary of Education, in collaboration with the 
        States and with representatives of business and industry, 
        employees, educational agencies, service providers, 
        participants, and other interested parties, shall identify 
        world class levels of performance with respect to appropriate 
        core indicators selected from among the core indicators 
        described in titles II through IV and in title I of the 
        Vocational Rehabilitation Act of 1973. Where applicable, such 
        world class standards shall reflect industry-recognized skill 
        standards and the National Education Goals.
    (d) Report on Performance.--
            (1) In general.--The State shall report to the Secretary of 
        Labor and the Secretary of Education, the levels of performance 
        achieved by local workforce development areas and other 
        applicable local administrative entities with respect to the 
        indicators identified pursuant to subsection (b)(1) for each 
        program year. The Secretaries shall make such information 
        available to the general public through publication and other 
        appropriate methods, and shall disseminate State-by-State 
        comparisons, and comparisons with other industrialized nations 
        (where appropriate).
            (2) Reporting options.--In the collection and reporting of 
        such data, States are encouraged to utilize administrative 
        reporting data on quarterly earnings, establishment and 
        industry affiliation, and geographic location of employment, 
        such as unemployment insurance wage-data records.
    (e) Consequences for Poor Performance.--
            (1) Criteria.--The Governor, through the collaborative 
        process, shall establish criteria for determining whether local 
        workforce development areas and other applicable local 
        administrative entities have failed to meet expected levels of 
        performance with respect to programs under this Act.
            (2) Consequences for poor performance.--
                    (A) State consequences.--If a State fails to meet 
                expected levels of performance for a program for any 
                program year as established pursuant to subsection (a), 
                the Secretary of Education or the Secretary of Labor, 
                as appropriate to the particular program, may provide 
                technical assistance, including assistance in the 
                development of a performance improvement plan. If such 
                failure continues for a second consecutive year, the 
                appropriate Secretary may reduce by not more than 5 
                percent, the amount of the grant that would (in the 
                absence of this paragraph) be payable to the State 
                under such program for the immediately succeeding 
                program year. Such penalty shall be based on the degree 
                of failure to meet expected levels of performance.
                    (B) Local consequences.--(i) If a local workforce 
                development area, or other applicable local 
                administrative entity, fails to meet expected levels of 
                performance for a program for any program year under 
                the criteria established in paragraph (1), the 
                Governor, through the collaborative process, may 
                provide technical assistance, including the development 
                of a performance improvement plan.
                    (ii) If such failure continues for a second 
                consecutive year, the Governor may take corrective 
                actions, such as the withholding of funds, the 
                redesignation of a local administrative entity, or such 
                other actions as the Governor, through the 
                collaborative process, determines are appropriate, 
                consistent with State law, section 104(c)(3) of this 
                Act, and the requirements of this Act.
              Subtitle B--Amendments to Wagner-Peyser Act

SEC. 131. GENERAL PROGRAM REQUIREMENTS.

    (a) Definitions.--Section 2 of the Act of June 6, 1933 (commonly 
known as the ``Wagner-Peyser 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 public 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.''.
    (b) 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, pursuant to title II of the 
Wagner-Peyser Act--
            ``(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, in 
        coordination with the public employment services;
            ``(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.''.
    (c) 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''.
    (d) 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 both section 14 and title II of this Act''.
    (e) 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.''.
    (f) 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).
    (g) Elimination of Federal Advisory Council.--Section 11 of such 
Act (29 U.S.C. 49j) is hereby repealed.
    (h) 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)(2) of such Act is amended 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 amended 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 demographic characteristics, as defined 
                in title I of the Careers Act, socioeconomic 
                characteristics, and current employment status of the 
                population, including self-employed, part-time, and 
                seasonal workers, and individuals with severe 
                disabilities;
                    ``(B) job vacancies, 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 by 
                demographic characteristics such as unemployment 
                insurance wage data records;
                    ``(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 
        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, job 
                placement programs, and vocational rehabilitation 
                programs (where appropriate), 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 compatibility 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 databases, 
        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) Ensure that all statistical and administrative data 
        collection activities within the Department of Labor, including 
        the Employment and Training Administration, Veterans' 
        Employment and Training Service, Employment Standards 
        Administration, and Occupational Health and Safety 
        Administration, are consistent with those of the Bureau of 
        Labor Statistics.
            ``(2) Assign responsibilities, as appropriate, to agencies 
        such as the Employment and Training Administration to work with 
        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, 
        Veterans' Affairs, 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, 
        and the Rehabilitation Services Administration of the 
        Department of Education, the Veterans' Employment and Training 
        Service of the Department of Labor and the Department of 
        Veterans' Affairs with respect to vocational rehabilitation 
        programs in the design and provision of standardized 
        information to the States to support section 22(2), and in the 
        dissemination of labor market information.
            ``(5) Establish confidentiality standards for the labor 
        market information system at national, State, and local levels, 
        including such provisions as may be necessary, to be taken in 
        coordination with the States, to ensure that privacy and 
        confidentiality protections are guaranteed with respect to 
        individuals and firm data.
    ``(c) Additional Duties.--The Secretary, in collaboration with the 
Bureau of Labor Statistics, with the assistance of other agencies of 
the Department where appropriate, shall--
            ``(1) establish and maintain, with the cooperation of the 
        States, elements of the system described in sections 22(1) and 
        22(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 
        22(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 
                22(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 22 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 
        representatives of the States from each of the 10 Federal 
        regions of the Department of Labor, elected 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 
                22; 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 compatibility 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.''.
                       Subtitle C--Worker Rights

SEC. 141. REQUIREMENTS.

    The following requirements shall apply to programs under titles II 
and III of this Act:
            (1) Prohibition on displacement.--A participant in a 
        program under titles II or III shall not displace any currently 
        employed worker (including a partial displacement, such as a 
        reduction in the hours of non-overtime work, wages, or 
        employment benefits).
            (2) Prohibition on impairment of contracts.--A program 
        under title II or III shall not impair existing contracts for 
        services or collective bargaining agreements, and no such 
        program that would be inconsistent with the terms of a 
        collective bargaining agreement shall be undertaken without the 
        written concurrence of the labor organization and employer 
        concerned.
            (3) Prohibition on replacement.--A participant in a program 
        under title II or III shall not be employed--
                    (A) when any other individual is on temporary 
                layoff, with the clear possibility of recall, from the 
                same or any substantially equivalent job with the 
                participating employer; or
                    (B) when the employer has terminated the employment 
                of any regular employee or otherwise reduced the 
                workforce of the employer with the intention of filling 
                the vacancy so created with the student.
            (4) Workplaces.--A participant in a program under title II 
        or III shall be provided with adequate and safe equipment and 
        safe and healthful workplaces in conformity with all health and 
        safety requirements of Federal, State, and local law.
            (5) Effect on other laws.--Nothing in this Act shall be 
        construed to modify or affect any Federal or State law 
        prohibiting discrimination on the basis of race, religion, 
        color, ethnicity, national origin, gender, age, or disability, 
        or to modify or affect any right to enforcement of this Act 
        that may exist under other Federal laws, except as expressly 
        provided by this Act.
 TITLE II--YOUTH DEVELOPMENT AND CAREER PREPARATION 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) help individuals attain the academic skills, as well as 
        occupational skills, needed to be successful in a global 
        economy and for lifelong learning;
            (2) 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;
            (3) promote strong connections between in-school and at-
        risk programs, to ensure that youth are prepared for good jobs 
        and further education opportunities, and promote youth 
        development and career preparation programs that provide 
        opportunities for individuals to receive postsecondary 
        education and occupational training;
            (4) promote the formation of business and education 
        partnerships that are dedicated to linking the worlds of school 
        and work; and
            (5) promote high academic and occupational standards and 
        quality vocational-technical education, including improved 
        secondary and postsecondary programs, by focusing resources on 
        program improvement initiatives that help prepare students for 
        further education and training and high-wage jobs in high-
        performance workplaces.

SEC. 202. 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 coursework in secondary and 
        postsecondary education.
            (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 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) Except as otherwise provided, the term ``eligible 
        institution'' means a local educational agency, an area 
        vocational education school, an intermediate educational 
        agency, an institution of higher education (as such term is 
        defined in section 1201(a) of the Higher Education Act of 
        1965), a State corrections educational agency, or consortia of 
        such entities.
            (8) The term ``partnership'' means a local entity that is 
        responsible for local youth development and career preparation 
        programs and may consist of employers, representatives of local 
        educational agencies and local postsecondary educational 
        institutions (including representatives of area vocational 
        education schools, where applicable), local educators (such as 
        teachers, counselors, or administrators), representative 
        employee organizations, and students; and include other 
        entities.
            (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 whom the 
                parent has either custody or joint custody; or
                    (ii) is pregnant.
            (12) The term ``special populations'' includes individuals 
        with disabilities, economically disadvantaged individuals, 
        individuals of limited English proficiency, and individuals in 
        nontraditional training and employment.
            (13) The term ``tech-prep education program'' means a 
        program of study which--
                    (A) combines at least 2 years of secondary and 2 
                years of postsecondary education in a nonduplicative 
                sequence;
                    (B) integrates academic and vocational instruction;
                    (C) provides technical preparation in at least 1 
                field of engineering technology, applied science, 
                mechanical, industrial, or practical art or trade, or 
                agriculture, health occupations, or business;
                    (D) builds student competence in mathematics, 
                science, communications, and workplace skills, through 
                applied academics and integrated instruction in a 
                coherent sequence of courses;
                    (E) leads to an associate degree or certificate in 
                a specific career field;
                    (F) leads to placement in appropriate employment or 
                further education; and
                    (G) enables a student to fulfill a career pathway 
                plan relating to labor market needs.
            (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, including 
        nonbaccalaureate certificate and degree programs and 
        baccalaureate vocational degree programs. Such programs 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.
            (15) The term ``vocational student organizations'' means 
        those organizations for individuals enrolled in vocational 
        education programs which engage in activities as an integral 
        part of the instructional program. Such organizations may have 
        State and national units which aggregate the work and purposes 
        of instruction in vocational education at the local level.

                       Subtitle A--State Funding

SEC. 211. NATIONAL AND STATE FUNDING.

    (a) National Programs.--In each fiscal year, of the amounts made 
available under section 4, 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.--Of the funds remaining after the 
        reservation under subsection (a), the Secretary shall allot to 
        each State for each fiscal year an amount based on that State's 
        allotment percentage.
            (2) Allotment percentage.--(A) Except as provided in 
        subparagraph (B), the allotment percentage of a State for a 
        fiscal year shall be the same percentage of funds allotted to 
        the State under this section in the preceding fiscal year.
            (B) The allotment percentage of a State for fiscal year 
        1996 shall be the percentage of funds allotted to the State in 
        fiscal year 1995 under--
                    (i) section 101 or 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
                    (ii) 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.
            (3) State minimum.--Notwithstanding any other provision of 
        law and subject to paragraph (1), any fiscal year for which the 
        amounts appropriated for programs authorized by this title 
        exceed the amounts available for fiscal year 1985, a State 
        shall not receive less than one-quarter of one percent of the 
        amount available for each such program for that fiscal year 
        under this subsection. Amounts necessary for increasing such 
        payments to States to comply with the preceding sentence shall 
        be obtained by ratably reducing the amounts to be paid to other 
        States.
            (4) 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, through the 
collaborative process, shall--
            (1) make available not less than 90 percent to local 
        providers;
            (2) make available not more than 8 percent for State 
        programs described in section 222; and
            (3) make available not more than 2 percent for 
        administrative purposes.

SEC. 212. WITHIN STATE ALLOCATION.

    (a) In General.--From the amounts made available pursuant to 
section 211(c)(1), the Governor, through the collaborative process, 
shall--
            (1) allocate 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) allocate 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;
            (3) provide an amount equal to 10 percent of the remainder 
        to eligible institutions or local workforce development boards; 
        and
            (4) allocate the remainder of any amounts under this 
        subsection to carry out the purposes of paragraph (1) or (2).
    (b) Within State Formula.--
            (1) Establishment.--The Governor, through the collaborative 
        process, and after consultation with local chief elected 
        officials in the local workforce development area and, where 
        appropriate, local educators in such area, shall develop a 
        formula for the allocation of funds in accordance with 
        paragraphs (1), (2), and (4) of subsection (a). Such formula 
        shall take into account--
                    (A) poverty rates within each local community, as 
                determined by the State;
                    (B) the proportion of the State's youth population 
                residing within each local community; and
                    (C) such other factors as considered appropriate.
            (2) Additional factors.--In establishing such formula, the 
        Governor shall ensure that funds are distributed equitably 
        throughout the State, and that the factors described in 
        paragraph (1) do not receive disproportionate weighting.
    (c) 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.
            (4) Secondary-postsecondary consortia.--One or more local 
        educational agencies and one or more eligible institutions may 
        enter into a consortium agreement. A consortium formed pursuant 
        to this paragraph that receives a subgrant from a State under 
        this subtitle shall receive not less than $50,000 in any fiscal 
        year.
    (d) Funds to Consortium.--Funds allocated to a consortium formed to 
meet the minimum grant requirements of this section shall be used only 
for purposes and activities that are mutually beneficial to all members 
of the consortium. Such funds may not be reallocated to individual 
members of the consortium for purposes or activities benefiting only 
one member of the consortium.
    (e) Waiver.--The State may waive the application of subsection (c) 
in any case in which a grant recipient--
            (1) is located in a rural, sparsely-populated area; and
            (2) demonstrates an inability to enter into a consortium 
        for purposes of providing services under this title.

       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, as 
part of the State Workforce Development and Literacy Plan under title 
I, submit to the Secretary of Education information 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 
        postsecondary, 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 for students in the 
        elementary and secondary grades, which may include linkages to 
        career exploration, guidance counseling and labor market 
        information services outside of the school system and shall 
        describe how the State will effectively demonstrate the system 
        of career preparation for youth, which includes elements such 
        as professional development, and secondary-postsecondary 
        collaborations;
            (3) a description of the strategy of the State for 
        integrating academic, vocational, and work-based learning, 
        including a description of how the State will promote 
        collaboration between secondary and postsecondary occupational 
        and academic programs and institutions;
            (4) a description of the State's plan to develop the 
        academic and occupational skills of students and provide the 
        attainment of challenging vocational-technical education 
        standards, including industry-approved skill standards and 
        workplace competencies, and 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;
            (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 development and career preparation programs authorized 
        under this title; and
            (6) a description of how the State will coordinate the 
        Goals 2000: Educate America Act, and Improving America's 
        Schools Act of 1994, and other State education improvement 
        plans.

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--
                    (A) inservice and preservice training of teachers 
                and faculty in state-of-the-art programs and techniques 
                and nontraditional training and employment; and
                    (B) support of public teacher-education programs to 
                ensure vocational teachers stay current with the needs, 
                expectations, and methods of industry to meet employer 
                standards;
            (5) development, dissemination, and field testing of 
        curricula, especially--
                    (A) curricula that integrate vocational, academic, 
                and work-based methodologies;
                    (B) curricula that provide a coherent sequence of 
                courses through which academic and occupational skills 
                may be measured; and
                    (C) curricula for work-based learning;
            (6) leadership and instructional programs in technology 
        education;
            (7) data collection, including support for management 
        information systems as defined in section 109;
            (8) support for 1-stop career centers described in section 
        107;
            (9) support for cooperative education and family and 
        consumer science programs;
            (10) creative use of technologies, including professional 
        development in the use of such technologies for instructional 
        purposes and to increase counselor's and students' knowledge 
        of, and use of, additional information resources to make career 
        pathways and coursework decisions;
            (11) support for vocational student organizations; and
            (12) improving career guidance and counseling.

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;
            (2) implemented exemplary youth development and career 
        preparation programs at the local level in accordance with the 
        purposes described in section 201; or
            (3) provided exemplary education services and activities 
        for at-risk youth.

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

    (a) General Authority.--
            (1) Standards and measures.--In addition to the State's 
        goals described in 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 youth development and career preparation 
        programs 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; and
                    (D) employment retention and earnings levels;
            (2) reduction of the drop-out rate; and
            (3) success of special populations in meeting these 
        performance standards, including nontraditional training and 
        employment.
    (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 
Skill Standards Board and the State goals established under this title.

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

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 for the 
purposes of collaborative planning, coordination of in-school and at-
risk programs, and effective public participation.
    (b) Plan.--The partnership referred to in subsection (a) shall, in 
collaboration, develop and submit for approval to the Governor through 
the State collaborative process a comprehensive youth development and 
career preparation plan for in-school and at-risk youth. Such plan 
shall describe how the youth development and career preparation system 
meets the requirements of sections 241 and 245 and shall address 
comments received through the collaborative process. The partnership 
shall assure the involvement of
 parents, teachers, and the community in the collaborative planning 
process which involves design of the standards, strategies, 
articulation, and cooperative agreements, assessments, and evaluation 
of program activities.

SEC. 232. DISTRIBUTION OF FUNDS.

    (a) In-School Programs.--Based upon an application submitted by the 
partnership to the Governor through the State collaborative process, a 
State shall distribute funds made available in a fiscal year as 
provided in section 212(a)(1) to eligible institutions to carry out in-
school youth programs described in section 241.
    (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

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

    (a) General Authority.--Each eligible institution that receives a 
subgrant under this chapter shall use funds provided under such grant 
to improve youth development and career preparation 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 youth 
development and career preparation 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 with adult 
        mentoring where appropriate; and, to the extent possible, with 
        strong experiences and understanding of all aspects of an 
        industry appropriately tied to the student's career major; and
            (6) provide career exploration, including exploration in 
        the practical arts or trade, career awareness and career 
        guidance opportunities, beginning in the earliest grades 
        possible.
    (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, leasing, 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) 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;
            (8) local education and business partnerships for 
        developing and implementing workforce preparation systems;
            (9) support for vocational student organizations; and
            (10) establishing effective activities and procedures to 
        enable program participants and their parents to participate 
        directly in decisions that influence the character of programs, 
        including providing information and assistance needed for 
        informed and effective participation.

                        CHAPTER 2--AT-RISK YOUTH

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 youth development and career preparation 
programs.
    (b) Requirements for Uses of Funds.--Funds provided by a State 
pursuant to section 212(a)(2) shall be used to provide youth 
development and career preparation 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, including 
        experiences in the practical arts or trade, if applicable;
            (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 completion of high school;
            (2) alternative high school services;
            (3) training or education that is combined with community 
        service, 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 and programs that encourage pregnant and 
        parenting youth to stay in school;
            (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.
    (d) Limitations on Use of Funds.--Not more than 10 percent of the 
funds provided under this chapter to a local workforce development 
board may be used for administrative purposes.

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 
        202(7);
            (2) a unit of local government;
            (3) a private, nonprofit organization (including community-
        based organizations);
            (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 general.--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, replication of model programs, 
        demonstration programs, evaluation, capacity-building, and 
        technical assistance activities with regard to the services and 
        activities carried out under this title.
            (2) Information systems.--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. ASSESSMENT AND DATA COLLECTION OF YOUTH DEVELOPMENT AND 
              CAREER PREPARATION PROGRAMS.

    (a) In General.--The Secretary, through the Office of Educational 
Research and Improvement, shall conduct a biennial 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 224, are effective.

SEC. 253. NATIONAL CENTER OR CENTERS FOR RESEARCH.

    (a) General Authority.--
            (1) National center.--The Secretary may, through a grant or 
        contract, establish one or more national centers for conducting 
        applied research, development, dissemination, and technical 
        assistance activities which would focus on improving the career 
        preparation of individuals. The Secretary shall consult with 
        States prior to establishing one or more such centers.
            (2) Eligibility.--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) Previous center.--The national center in existence on 
        the day before 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) In general.--The applied research, development, 
        dissemination, and technical assistance 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;
                    (B) research and development of activities that 
                combine academic, vocational education, and work-based 
                learning;
                    (C) developing new models for remediation of basic 
                academic skills which incorporate appropriate 
                instructional methods;
                    (D) identifying ways to establish links among 
                educational and job training activities at the State 
                and local levels;
                    (E) new models for career guidance, career 
                information, and counseling services;
                    (F) studies providing longitudinal information or 
                formative evaluation on programs funded under this 
                title, including an analysis of the effectiveness of 
                youth development and career preparation programs in 
                serving at-risk youth; and
                    (G) such other activities as the Secretary 
                determines to be appropriate to achieve the purpose of 
                this Act.
            (2) Duties.--The center or centers shall--
                    (A) provide assistance to States and local 
                recipients in developing and using systems of 
                performance measures and standards for improvement of 
                programs and services; and
                    (B) provide technical assistance and outreach.
            (3) Summary.--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.
    (c) Clearinghouse.--The center or centers shall maintain a 
clearinghouse that will provide data and information to Federal, State, 
and local organizations and agencies about the condition of systems and 
programs funded under this title.
      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, high skills, 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(a)(2) 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.
        Notwithstanding any other provision of law and subject to 
        paragraph (1), in any fiscal year for which the amounts 
        appropriated for programs authorized by title III exceed the 
        amounts so available for fiscal year 1985, no State shall 
        receive less than one-quarter of one percent of the amount 
        available for each such program for that fiscal year under this 
        subsection. Amounts necessary for increasing such payments to 
        States to comply with the preceding sentence shall be obtained 
        by ratably reducing the amounts to be paid to other States.
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 314);
                            (v) implementation of experimentation model 
                        activities, pilot projects, and demonstration 
                        projects which further the goals and purposes 
                        of this Act;
                            (vi) 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; and
                            (vii) support for a common management 
                        information system as described in section 109.
                    (B) Limitation.--Not more than \1/4\ 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.--
            (1) In general.--The Governor of the State, based upon an 
        allocation formula established in accordance with paragraph 
        (2), 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 accordance with section 306.
            (2) Within state formula.--
                    (A) Establishment.--The Governor, through the 
                collaborative process, and after consultation with 
                local chief elected officials in the local workforce 
                development area, shall develop a formula for the 
                allocation of funds to workforce development areas. 
                Such formula shall take into account--
                            (i) poverty rates within each local 
                        workforce development area, as determined by 
                        the State;
                            (ii) unemployment rates within each local 
                        workforce development area;
                            (iii) the proportion of the State's adult 
                        population residing within each local workforce 
                        development area; and
                            (iv) such other factors as considered 
                        appropriate.
                    (B) Additional factors.--In establishing such 
                formula, the Governor shall ensure that funds are 
                distributed equitably throughout the State, and that 
                the factors described in subparagraph (A) do not 
                receive disproportionate weighting.
            (3) Exception.--Notwithstanding the provisions of 
        paragraphs (1) and (2), the Governor shall provide 10 percent 
        of the remainder described in paragraph (1) to local workforce 
        areas designated under title I of this Act.

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, displaced homemakers, veterans, 
        and individuals with multiple barriers to employment (as 
        determined by the State), 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) 
        shall 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, which may include private, for-
                profit providers.
            (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) Follow-up 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) 
        shall be used to provide education and training services to 
        adults--
                    (A) who are unable to obtain employment through 
                core services under subsection (a);
                    (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 
                        107(f)(1)(B) of this Act; or
                            (ii) comprehensive and specialized 
                        assessments under subsection (b)(3)(A); and
                    (C) who are unable to obtain other grant assistance 
                for such services, such as through Pell Grants 
                established under title IV of the Higher Education Act.
            (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, including 
                training for nontraditional employment.
                    (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 skill grants.--
                            (i) In general.--Except as provided in 
                        clause (ii), education and training services 
                        under this section shall be provided through 
                        the use of skill grants in accordance with this 
                        subsection, and in accordance with section 108 
                        regarding the certification of education and 
                        training providers.
                            (ii) Exceptions.--Education and training 
                        services authorized under this title may be 
                        provided pursuant to a contract for services in 
                        lieu of a skill grant if--
                                    (I) such services are on-the-job 
                                training provided by an employer;
                                    (II) the local workforce 
                                development board determines there are 
                                an insufficient number of certified 
                                providers of education and training 
                                services in the workforce development 
                                area to accomplish the purposes of a 
                                skill grant system;
                                    (III) the local workforce 
                                development board determines that the 
                                certified providers of education and 
                                training in the workforce development 
                                area are unable to provide effective 
                                services to special participant 
                                populations; or
                                    (IV) the local workforce 
                                development board decides to enter into 
                                a direct training contract with a 
                                community based organization serving 
                                special populations.
                    (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) Priority.--Local workforce development boards shall establish a 
process through which priority is given to dislocated workers and 
economically disadvantaged individuals, for receipt of services 
provided under subsections (b) and (c), in the event that funds are 
limited within the workforce development area.
    (f) 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.
    (g) Limitations on Use of Funds.--Not more than 10 percent of the 
funds provided under this title to a local workforce development board 
may be used for administrative purposes.

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 State's 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, displaced homemakers, veterans, 
        and individuals with multiple barriers to employment (as 
        determined by the State), 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 awards to 
States--
            (1) to assist in the implementation of exemplary statewide 
        workforce development system designs; and
            (2) for the achievement of exceptional performance in the 
        statewide workforce development system.

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. Such studies may 
        include the extent to which individuals who participate in 
        programs established under this title achieve self-sufficiency 
        as a result of such participation, including the identification 
        by State and locality, to the extent practicable, of indicators 
        measuring such self-sufficiency.
            (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 which may include projects conducted jointly 
        with the Department of Defense to develop training programs 
        utilizing computer-based and other innovative learning 
        technologies. The Secretary may award grants and enter into 
        contracts with appropriate 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 industry-wide 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 require special 
                        assistance; and
                            (v) promote and experiment with model 
                        activities, pilot projects, and demonstration 
                        projects which further the goals and purposes 
                        of this Act.
            (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.
            (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 nonmanagerial 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 nonmanagerial 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) 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 Crownpoint 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, 
including housing, technical assistance, outreach, intake, assessment, 
follow-up, stipend support, supportive services, other needs-based 
assistance, self-employment and related business enterprise development 
education, and the management of a database on participating migrant 
and seasonal farmworkers.
    (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 assistance as described 
in--
            (1) a secondary and postsecondary high school equivalency 
        program to serve migrants and seasonal farmworkers; and
            (2) a college assistance migrant program to provide 
        outreach and recruitment services for migrants and seasonal 
        farmworkers.
 TITLE IV--ADULT EDUCATION AND FAMILY LITERACY CONSOLIDATION GRANT AND 
          LIBRARY SERVICES AND TECHNOLOGY CONSOLIDATION GRANT

SEC. 401. 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 life-long learning through 
        Federal leadership.

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) Secretary.--The term ``Secretary'' means the Secretary 
        of Education.

  Subtitle A--Adult Education and Family Literacy Consolidation Grant

SEC. 411. PURPOSES.

    The purposes of this subtitle are to assist States to provide--
            (1) to adults, the basic educational skills necessary for 
        employment and self-sufficiency;
            (2) to adults who are parents, the educational skills 
        necessary to be full partners in the educational development of 
        their children;
            (3) to adults, the basic English language skills necessary 
        to participate in the civic, social, and economic life of the 
        United States; and
            (4) 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.

                           CHAPTER 1--FUNDING

SEC. 421. RESERVATIONS FROM AMOUNTS APPROPRIATED.

    (a) National Institute for Literacy.--For any fiscal year, the 
Secretary shall reserve $4,500,000 of the amount appropriated under 
section 4(a)(3) to carry out the activities of the National Institute 
for Literacy described in section 441.
    (b) National Leadership Activities.--For any fiscal year, the 
Secretary shall reserve $4,500,000 of the amount appropriated under 
section 4(a)(3) to establish and carry out the program of national 
leadership and evaluation activities described in section 442.

SEC. 422. ALLOTMENT.

    (a) Initial Allotment.--From the sums available for the purpose of 
making grants under chapter 2 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) In general.--From the remainder of the sums described 
        in subsection (a) after the application of the subsection, the 
        Secretary shall allot to each State an amount which bears the 
        same ratio to such remainder as the number of qualifying adults 
        in the State bears to the number of such adults in all States.
            (2) Qualifying adult.--For purposes of this subsection, 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.

                      CHAPTER 2--GRANTS TO STATES

SEC. 431. REQUIREMENT TO MAKE GRANTS.

    For fiscal year 1997 and subsequent fiscal years, the Secretary 
shall make a grant 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 
        433(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 432;
                    (B) will satisfy the grant requirements in sections 
                433(a)(2) and 433(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. 432. USES OF FUNDS.

    (a) State Uses of Funds.--
            (1) Grants to serve target populations.--
                    (A) In general.--Of the funds paid to a State under 
                this title for fiscal year 1998 and subsequent fiscal 
                years, 3 percent shall be distributed as performance 
                grants made by the State on a competitive basis, and 
                consistent with subsection (b) and section 433(b)(2), 
                to local service providers that have provided, during 
                the immediately preceding fiscal year, adult education 
                or family literacy services to the target populations 
                described in subparagraph (C).
                    (B) Local service providers.--The local service 
                providers referred to in subparagraph (A) may include 
                the following:
                            (i) Local educational agencies.
                            (ii) Correctional educational agencies.
                            (iii) Community-based organizations.
                            (iv) Public or private nonprofit agencies.
                            (v) Institutions of higher education.
                            (vi) Libraries.
                            (vii) Other institutions that the State 
                        determines to have the ability to provide 
                        literacy services to adults and families.
                    (C) Target populations.--The target populations 
                referred to in subparagraph (A) are the following:
                            (i) Adults with more than one barrier to 
                        self-sufficiency, such as being unemployed or 
                        an educationally disadvantaged adult.
                            (ii) Families on public assistance (as 
                        determined by the State).
                            (iii) Parents who are educationally 
                        disadvantaged adults and who have a child who 
                        is less than 8 years of age.
                            (iv) Adults who are individuals with 
                        disabilities or who have similar special needs.
            (2) Grants to local service providers.--Of the funds paid 
        to a State under this subtitle for any fiscal year that remain 
        after the application of paragraph (1), at least 85 percent 
        shall be distributed as grants made by the State on a 
        competitive basis, and consistent with subsection (b) and 
        section 433(b)(2), to local service providers to establish, 
        conduct, or expand programs, services, or activities to achieve 
        a purpose of this subtitle. Such local service providers may 
        include the local service providers described in paragraph 
        (1)(B).
            (3) Other state activities.--A State may use not more than 
        12 percent of the funds paid to the State under this subtitle 
        for any fiscal year that remain after the application of 
        paragraph (1) 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 technical assistance to local 
                service providers.
                    (C) The provision of technology assistance to local 
                service providers to enable them to improve the quality 
                of their programs, services, and activities that 
                achieve a purpose of this subtitle, 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.
                    (D) 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 441 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.
                    (E) Monitoring and evaluating the quality of, and 
                the improvement in, services and activities conducted 
                with Federal financial assistance under this subtitle, 
                including carrying out section 433(a)(2).
                    (F) The support of a common management information 
                system as described in section 109.
                    (G) Carrying out other activities of statewide 
                significance that promote the purposes of this Act.
            (4) Administrative expenses.--For any fiscal year, a State 
        may use not more than 3 percent of the funds paid to the State 
        under this subtitle that remain after the application of 
        paragraph (1) or $50,000, whichever is greater, for--
                    (A) planning, administration, and interagency 
                coordination associated with a grant under this 
                subtitle; and
                    (B) support for one-stop career center systems 
                described in section 107.
    (b) Local Uses of Funds.--A State shall require that a local 
service provider that receives a grant from the State under paragraph 
(1) or (2) of subsection (a) 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 that 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. 433. ADDITIONAL GRANT REQUIREMENTS.

    (a) Goals, Progress Indicators, Performance Measures.--
            (1) Planning requirements.--A State that desires to receive 
        a grant under this subtitle 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 434, establish, through 
                such collaborative process, progress indicators to be 
                used to evaluate the performance of local service 
                providers receiving a grant under paragraph (1) or (2) 
                of section 432(a).
                    (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 subtitle shall accomplish the following:
                    (A) With respect to each local service provider 
                receiving a grant under paragraph (1) or (2) of section 
                432(a), based on the goals and progress indicators 
                established under paragraph (1), measure the 
                performance measures described in section 434 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 paragraph (1) or (2) of section 432(a), 
                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 434 for each 
                category described in such section.
    (b) Other Requirements.--A State that receives a grant under this 
subtitle 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 subtitle, 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 paragraph (1) 
        or (2) of section 432(a), 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 direct and 
        equitable access to Federal funds provided under this subtitle 
        in accordance with this subtitle.
            (4) Payments by one-stops to local service providers.--A 
        one-stop career center system in a State that refers an adult 
        who is in need of adult education or literacy services in order 
        to achieve such adult's career goals to a local service 
        provider 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 such services if 
        such provider renders such services and--
                    (A) is receiving a grant from the State under 
                paragraph (1) or (2) of section 432(a); or
                    (B) is not receiving such a grant but has been 
                certified by the State as eligible to receive such 
                amounts.

SEC. 434. PERFORMANCE MEASURES.

    A State that receives a grant under this subtitle 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 paragraph (1) or (2) of 
section 432(a):
            (1) The percentage of adults served who, based on skills or 
        abilities acquired through such a program, service, or 
        activity--
                    (A) demonstrate skills necessary to assist their 
                children to succeed in school, such as the ability to--
                            (i) read to their children;
                            (ii) provide support to their children in 
                        the completion of homework assignments; or
                            (iii) participate on an ongoing basis in 
                        activities that support their childrens' 
                        schools;
                    (B) enrolled in institutions of higher education or 
                occupational training;
                    (C) obtained a job;
                    (D) advanced in their job; or
                    (E) 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; or
                    (B) obtained a high school equivalency diploma.
            (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, during their term of incarceration or 
        upon the termination of such term--
                    (A) enrolled in job training or education programs; 
                or
                    (B) obtained employment.

                      CHAPTER 3--NATIONAL PROGRAMS

SEC. 441. 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;
                    (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; and
                    (E) assist States in developing levels of 
                performance.
            (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 
                                subtitle;
                            (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. 442. NATIONAL LEADERSHIP ACTIVITIES.

    (a) In General.--The Secretary shall establish and carry out a 
program of national leadership and evaluation activities to enhance the 
quality of adult education and family literacy programs nationwide.
    (b) Required Activity.--
            (1) In general.--The program of national leadership and 
        evaluation activities under subsection (a) shall include a 
        national evaluation, conducted by the Secretary, of the 
        programs and activities carried out by States and local service 
        providers with Federal funds received under this subtitle. Such 
        evaluation shall include information on the following:
                    (A) The manner in which States and local service 
                providers use Federal funds, including the manner in 
                which States allocate such funds among such providers.
                    (B) The manner in which States establish goals and 
                performance standards and use such goals and standards 
                to manage and improve programs.
                    (C) The effectiveness of the funds used under 
                subparagraphs (B) and (C) of section 432(a)(3).
                    (D) The manner in which economically disadvantaged 
                individuals and educationally disadvantaged adults are 
                being served by States and local service providers.
                    (E) The coordination between programs and 
                activities carried out with Federal funds received 
                under titles II and III and programs and activities 
                carried out with Federal funds received under this 
                subtitle.
                    (F) The percentage of individuals receiving a 
                service from a one-stop career center system who are 
                referred by such system to a local service provider 
                providing adult education or literacy services.
            (2) Report.--Not later than September 30, 2001, the 
        Secretary shall provide to the Congress and publicly publish 
        the results of the evaluation conducted under paragraph (1).
    (c) Authorized Activities.--
            (1) In general.--The program of national leadership and 
        evaluation activities under subsection (a) may include the 
        following:
                    (A) Assisting States in developing levels of 
                performance.
                    (B) Research and development.
                    (C) Demonstration of model and innovative programs.
                    (D) Evaluations, including independent evaluations 
                of adult education and family literacy programs carried 
                out with financial assistance received pursuant to this 
                subtitle.
                    (E) Data collection.
                    (F) Professional development.
                    (G) Technical assistance to States and local 
                service providers receiving Federal financial 
                assistance pursuant to this subtitle.
                    (H) Making grants to State or regional networks of 
                literacy resource centers described in section 
                432(a)(3)(D).
                    (I) Other activities to enhance the quality of 
                adult education and family literacy programs 
                nationwide.
            (2) Grants, contracts, and cooperative agreements.--The 
        Secretary may carry out the activities described in paragraph 
        (1) directly or through grants, contracts, and cooperative 
        agreements.

    Subtitle B--Library Services and Technology Consolidation Grant

SEC. 451. PURPOSES.

    The purposes of this subtitle are--
            (1) to consolidate Federal library service programs;
            (2) to improve public access to information through 
        electronic networks; and
            (3) to provide linkages among and between libraries and 
        one-stop career center systems.

SEC. 452. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated to carry 
out this subtitle $110,000,000 for each of the fiscal years 1997 
through 2002.
    (b) Advance Notice of Funding.--For the purpose of affording 
adequate notice of funding available under this subtitle, an 
appropriation to carry out this subtitle is authorized to be included 
in an appropriation Act for the fiscal year preceding the fiscal year 
for which such appropriation is first available for obligation.

SEC. 453. ALLOTMENTS.

    (a) Initial Allotments.--
            (1) In general.--From the sums appropriated under section 
        452 for any fiscal year, the Secretary shall allot--
                    (A) $40,000 each to Guam, American Samoa, the 
                Commonwealth of the Northern Mariana Islands, and the 
                Virgin Islands; and
                    (B) $200,000 to each of the other States.
            (2) Ratable reduction.--If the sums appropriated under 
        section 452 for any fiscal year are insufficient to pay all of 
        the allotments under paragraph (1), each such allotment shall 
        be ratably reduced.
    (b) Additional Allotments.--
            (1) In general.--From the remainder of the sums 
        appropriated under section 452 for any fiscal year after the 
        application of subsection (a), the Secretary shall allot to 
        each State an amount which bears the same ratio to such 
        remainder as the population of the State bears to the 
        population of all States.
            (2) Determination of population of states.--For the purpose 
        of this subsection, the population of each State, and the total 
        population of all States, shall be determined by the Secretary 
        on the basis of the most recent census data available to the 
        Secretary, and the Secretary shall use for such purpose, if 
        available, the annual interim current census data produced by 
        the Secretary of Commerce pursuant to section 181 of title 13, 
        United States Code.

SEC. 454. GRANTS TO STATES.

    (a) In General.--The Secretary shall make a grant for a fiscal year 
to a State if the State--
            (1) has submitted to the Secretary for the year an annual 
        application that has been approved by the Secretary under 
        section 456; and
            (2) has entered into a written agreement with the Secretary 
        that--
                    (A) the State will provide 100 percent of the funds 
                paid to the State under this subtitle for the year to 
                the State library administrative agency for the State;
                    (B) such agency will be required to use such funds 
                to carry out activities that--
                            (i) are described in such annual 
                        application;
                            (ii) achieve the purposes of this subtitle; 
                        and
                            (iii) satisfy the requirements of section 
                        455;
                    (C) there will be available from State and local 
                sources for expenditure by such agency to carry out 
                such activities an amount that equals or exceeds 25 
                percent of the total cost (as determined by the 
                Secretary) of carrying out such activities for the 
                year; and
                    (D) such agency has the fiscal and legal authority 
                and capability to administer all aspects of such 
                activities.
    (b) Amount of Grants.--The amount of a grant to a State under 
subsection (a) for a fiscal year shall equal the lesser of the 
following:
            (1) The sum of the initial and additional allotments of the 
        State for the year.
            (2) 75 percent of the total cost (as determined by the 
        Secretary) of carrying out the activities described in 
        subsection (a)(2)(B) for the year.

SEC. 455. USES OF FUNDS.

    (a) In General.--Of the funds provided to a State library 
administrative agency under section 454(a)(2)(A),
 the agency shall expend at least 97 percent for one or more of the 
following purposes:
            (1) Electronically connecting libraries with one-stop 
        career center systems designated or established under section 
        107 and local service providers receiving grants under 
        paragraph (1) or (2) of section 432(a).
            (2) Establishing or enhancing linkages among libraries.
            (3) Assisting libraries in accessing information through 
        electronic networks.
            (4) Encouraging libraries in different Federal, State, and 
        local jurisdictions, and different types of libraries, to 
        establish consortia and share resources.
            (5) Paying costs for libraries to acquire or share computer 
        systems and telecommunications technologies.
            (6) Improving library and information services for 
        individuals who have difficulty using a library or who need 
        special library materials or services, including individuals 
        under the age of 18.
    (b) Administrative Expenses.--In any fiscal year, a State library 
administrative agency may use not more than 3 percent of the funds 
provided to the agency under section 454(a)(2)(A) for planning, 
administration, evaluations, and interagency coordination associated 
with a grant under this subtitle.

SEC. 456. ANNUAL APPLICATIONS.

    (a) Submission.--A State that desires to receive a grant under this 
subtitle for a fiscal year shall submit to the Secretary, in such form 
and manner and before such deadline as the Secretary shall specify in 
regulations, an application for such year. Such application shall--
            (1) establish goals, and specify priorities, for the State 
        consistent with the purposes of this subtitle;
            (2) describe activities that are consistent with such goals 
        and priorities, the purposes of this subtitle, and the 
        requirements of section 455 that the State library 
        administrative agency will carry out during such year using 
        such grant;
            (3) describe the procedures that such agency will use to 
        carry out such activities;
            (4) describe the methodology that such agency will use to 
        evaluate the success of such activities in achieving such goals 
        and meeting such priorities;
            (5) describe procedures that such agency will use to 
        involve libraries and library users throughout the State in 
        policy decisions regarding implementation of this subtitle; and
            (6) provide assurances satisfactory to the Secretary that 
        such agency will make such reports, in such form and containing 
        such information, as the Secretary may reasonably require to 
        carry out this subtitle and to determine the extent to which 
        funds provided under this subtitle have been effective in 
        carrying out its purposes.
    (b) Approval.--
            (1) In general.--The Secretary shall approve each 
        application submitted under subsection (a) that satisfies the 
        requirements of the subsection.
            (2) Rights of states upon disapproval.--If the Secretary 
        determines that an application submitted by a State under 
        subsection (a) does not satisfy the requirements of such 
        subsection, the Secretary shall--
                    (A) immediately notify the State of such 
                determination and the reasons for such determination; 
                and
                    (B) offer the State an opportunity to revise its 
                application to correct any deficiencies.
           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)(12) 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. REVISION OF TITLE I.

    (a) In General.--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 is consistent with their strengths, 
resources, priorities, concerns, abilities, and capabilities; that 
maximizes individuals' control over their vocational and career 
choices; and that 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 104 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 will--
            ``(1) subject to subsection (b), reserve not more than 20 
        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) reserve not less than 80 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) Additional State Responsibilities.--Amounts reserved by a 
State under subsection (a)(1) may be expended by the State 
administrative agent to carry out responsibilities that otherwise would 
be carried out under section 104 by local workforce development boards 
or one-stop career centers, if the State determines that such 
expenditures are justified to make available goods and services that 
could not otherwise be obtained within a local workforce development 
area, to provide services to individuals unable to utilize the one-stop 
career centers, or to otherwise ensure the efficient and equitable 
provision in the State of services under this title, including the 
provision of services for individuals in rural areas.
    ``(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 requirements 
of the Consolidated and Reformed Education, Employment, and 
Rehabilitation Systems Act, 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 the subsequent provisions of 
        this section, 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 (as defined in section 
        104(b))--
                    ``(i) to all eligible individuals (as defined in 
                section 105(d)); and
                    ``(ii) within all local workforce delivery areas 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 
        104(c)(1)), 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 received funds under this Act regarding projects with 
        industry or supported employment services, or under the Act 
        commonly known as the Javits-Wagner-O'Day Act (41 U.S.C. 46 et 
        seq.) for employment and training services.
            ``(5) The State will establish provisions to govern 
        determinations under section 105 (relating to the eligibility 
        of individuals).
            ``(6) The State will establish standards to govern the 
        conduct under section 104(c)(1) of assessments of need, 
        including the development of a methodology that will be applied 
        in a reasonably uniform manner to all individuals for whom such 
        assessments are conducted, and that (subject to the order of 
        selection under paragraph (2)) will be designed to prevent 
        substantial disparities, among individuals with comparable 
        circumstances, in the monetary value of the services to be 
        provided pursuant to the assessments.
            ``(7)(A) The State will establish procedures through which 
        an individual may request and obtain an impartial review, 
        utilizing an impartial hearing officer, of whether standards 
        for determinations of eligibility for services, assessments of 
        vocational rehabilitation needs, and development of 
        individualized rehabilitation and employment plans under this 
        title were correctly applied to the individual by the one-stop 
        career center involved.
            ``(B) The State will designate a number of days (applied 
        uniformly to all individuals) within which review under 
        subparagraph (A) will be conducted once a request for such 
        review is made by an individual, subject to subparagraph (C).
            ``(C)(i) The State will provide that there may be an 
        informal hearing, mediation, or alternatives to such review, if 
        agreed upon by the individual and the one-stop career center 
        involved.
            ``(ii) The State will provide that if, in a process 
        utilized under clause (i) by an individual, there is not a 
        final disposition of the matter involved, review under 
        subparagraph (A) will remain available to the individual.
            ``(8) The State will ensure that vocational rehabilitation 
        services under this title, and related core services, are 
        provided by personnel who are qualified to provide the services 
        involved. For purposes of the preceding sentence, the term 
        `core services' has the meaning indicated for such term under 
        title I of the Consolidated and Reformed Education, Employment, 
        and Rehabilitation Systems Act.
            ``(9) 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 
                        follow-up of youth who have received such 
                        services.
            ``(10) 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.
            ``(11) 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.
            ``(12) 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.
            ``(13) The State will provide technical assistance to local 
        boards, one-stop career centers, and providers relating to the 
        effective provision of vocational rehabilitation services under 
        this title, including the effective development of 
        individualized rehabilitation and employment plans, and will 
        ensure that such technical assistance is provided through 
        appropriate means.
    ``(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 monetary value of a voucher provided to the 
        individual for a particular type of service will be 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 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.
            ``(2) 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.
    ``(e) Core Standards, Performance Goals, and Measures.--For 
purposes of section 101(a):
            ``(1) The State involved will 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 (3), and 
        consistent with the State's goals and objectives and the 
        benchmarking process described in the workforce development and 
        literacy plan submitted by the State under section 104 of the 
        Consolidated and Reformed Education, Employment, and 
        Rehabilitation Systems Act.
            ``(2) The statewide system will--
                    ``(A) establish performance goals to define the 
                level of performance to be achieved by individuals 
                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 State's progress in achieving its 
                goals.
            ``(3) The statewide system will include measures of--
                    ``(A) placement, retention, and earnings of 
                participants in integrated employment, including 
                retention and earnings at 6 months, and at 1 year after 
                program termination, respectively;
                    ``(B) the percentage of individuals served who had 
                severe disabilities, including those individuals 
                determined to have a disability under title II or title 
                XVI of the Social Security Act; and
                    ``(C) other relevant measures of program 
                performance included in the standards and indicators 
                promulgated by the Commissioner under sections 621 and 
                106 (relating to projects with industry, and relating 
                to evaluation standards and indicators for vocational 
                rehabilitation, respectively), as such sections were in 
                effect for fiscal year 1995.
``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. Such 
        centers will provide services under this section directly or 
        through contract.
            ``(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, 
        carry out the following:
                    ``(A) Make determinations under section 105 of the 
                eligibility of individuals for vocational 
                rehabilitation services (as defined in subsection (b)).
                    ``(B) Provide for vocational rehabilitation 
                services for eligible individuals.
                    ``(C) In the case of individuals with severe 
                disabilities, conduct outreach and intake activities 
                for such individuals who are not able to directly 
                access the one-stop career centers because of the 
                nature of their disabilities.
            ``(3) A one-stop career center will, in expending amounts 
        provided to the center from a grant under section 101, make 
        vocational rehabilitation services available at a variety of 
        locations and, as appropriate for particular populations, in a 
        variety of environments.
    ``(b) Definition.--For purposes of this title, the term `vocational 
rehabilitation services' means such goods or services for eligible 
individuals as are--
            ``(1) necessary to render the individuals employable and 
        achieve an employment outcome; and
            ``(2) 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.
    ``(c) Certain Services.--For purposes of section 101(a), the 
vocational rehabilitation services available through one-stop career 
centers will include the following:
            ``(1) An assessment of the needs of eligible individuals 
        for such services.
            ``(2) Development, in accordance with section 105(b)(2), of 
        an individualized rehabilitation and employment plan for the 
        purpose of identifying employment goals, appropriate 
        intermediate rehabilitation objectives, and an appropriate 
        combination of goods and services for the individual to achieve 
        the employment goals.
            ``(3) Counseling, guidance, and work-related placement 
        services for individuals with disabilities, including job 
        search assistance, placement assistance, job retention 
        services, personal assistance services, and follow-up, follow-
        along, and specific postemployment services necessary to assist 
        such individuals to maintain, regain, or advance in employment.
            ``(4) 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.
            ``(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)(10), if such services are not available under this Act.
            ``(11) Transportation in connection with the rendering of 
        any vocational rehabilitation service.
            ``(12) Telecommunications, sensory, and other technological 
        aids and devices.
            ``(13) On-the-job, or other related personal-assistance 
        services, provided while eligible individuals are receiving 
        other vocational rehabilitation services under this title.
    ``(d) Certain Arrangements.--For purposes of section 101(a), a one-
stop career center will, with respect to the provision of vocational 
rehabilitation services to individuals with the most severe 
disabilities, provide for necessary arrangements with community-based 
providers, including arrangements regarding supported employment 
services and extended services, periodic reviews of individuals placed 
in extended employment, and services to promote movement from extended 
employment to integrated employment.
    ``(e) Optional Provision of Other Services.--For purposes of this 
title, a one-stop career center may provide such vocational 
rehabilitation services in addition to the services specified in 
subsection (c) as the center determines to be appropriate.
    ``(f) 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 and the costs of training employees of the 
        one-stop career centers to provide high-quality services to 
        individuals with disabilities.
    ``(g) Performance Payments Regarding Vouchers.--For purposes of 
section 101(a):
            ``(1) The local workforce development board involved will 
        ensure that, in providing for the payment of services provided 
        pursuant to vouchers, a portion of the total payment is 
        withheld from the provider 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.
            ``(2) In the case of education, training, and placement 
        services that are designed to lead to an employment outcome, a 
        portion of the total payment will be withheld from the provider 
        until--
                    ``(A) the participant has successfully completed 
                the training; and
                    ``(B) the participant has been employed, and has 
                retained employment for a period of not less than 90 
                days.
    ``(h) 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 significant efforts have been made to secure payments, in whole 
or in part, from other sources, except that such efforts are not 
required if making the efforts would delay the provision of such 
services to any eligible individual who is at extreme medical risk, or 
if making the efforts would result in the loss of a job placement that 
(but for the efforts) would be immediately available to an eligible 
individual.

``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).
            ``(3) It will be presumed that an individual can benefit in 
        terms of an employment outcome from vocational rehabilitation 
        services for purposes of section 7(8)(A)(ii), unless the one-
        stop career center involved can demonstrate by clear and 
        convincing evidence that such individual is incapable of 
        benefiting from vocational rehabilitation services in terms of 
        an employment outcome.
    ``(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) A qualified rehabilitation 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 following:
                            ``(i) The basis of the determination.
                            ``(ii) The availability of impartial review 
                        under section 103(b)(7).
                            ``(iii) The availability of services under 
                        the client assistance program under section 
                        510.
            ``(2)(A) If it is determined that the individual is an 
        eligible individual--
                            ``(i) the needs of the individual for 
                        vocational rehabilitation services will be 
                        assessed; and
                            ``(ii) subject to subparagraph (D), an 
                        individualized rehabilitation and employment 
                        plan will be developed for the individual 
                        regarding the provision of services pursuant to 
                        clause (i).
            ``(B) The plan under subparagraph (A) will be developed and 
        mutually agreed upon by the individual and an appropriate staff 
        member of the one-stop career center involved.
            ``(C) A plan under subparagraph (A) is individualized if 
        the plan is consistent with the unique strengths, resources, 
        priorities, concerns, abilities, and capabilities of the 
        individual for whom the plan is developed.
            ``(D) A plan under subparagraph (A) is not required for an 
        individual if the individual signs a waiver stating that such a 
        plan is not necessary for the individual.
    ``(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, including 
                representatives of the client assistance program under 
                section 510.
                    ``(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 title) 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 title, 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.''.
    (b) Certain Funding Provision.--Effective October 1, 1995, the 
Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.) is amended by 
inserting after section 3 the following section:

                        ``availability of funds

    ``Sec. 3A. Notwithstanding any other provision of law, funding to 
carry out titles II through VII for any fiscal year is available only 
to such extent as is provided, or in such amounts as are provided, in 
appropriations Acts.''.
    (c) Conforming Amendments.--Effective October 1, 1995, the 
Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.) is amended in the 
table of contents in the first section--
            (1) by inserting after the item relating to section 3 the 
        following item:

``Sec. 3A. Availability of funds.'';
            (2) by striking the items relating to sections 100 through 
        109, to sections 110 through 112, to sections 120 through 124, 
        to section 130, and to sections 140 and 141;
            (3) by striking the items relating to the title designation 
        and heading for title I, and to the part designations and 
        headings for parts A, B, C, D, and E of title I;
            (4) by inserting after the item relating to section 21 the 
        following items:

             ``TITLE I--VOCATIONAL REHABILITATION SERVICES

``Sec. 100. Purpose.
``Sec. 101. Formula Grants.
``Sec. 102. Allocation Within State of Administrative Responsibilities.
``Sec. 103. Responsibilities of State Administrative Agent.
``Sec. 104. Responsibilities for Local Boards and Service Centers.
``Sec. 105. Eligible Individual.
``Sec. 106. State Rehabilitation Advisory Council.
``Sec. 107. Amount of Allotment.''; and
            (5) by inserting after the item relating to section 509 the 
        following item:

``Sec. 510. Client assistance program.''.
       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 striking 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 subsection 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; and
            (B) by inserting such subsection at the end of section 311 
        (as amended by paragraph (2)(C) of this subsection);
            (4)(A) by transferring subsection (c) of section 803 from 
        the current placement of the subsection;
            (B) by redesignating such subsection as subsection (h); and
            (C) by inserting such subsection at the end of section 311 
        (as amended by paragraph (3)(B) of this subsection);
            (5)(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 subsection at the end of section 302; 
        and
            (6) by striking the remaining provisions of title VIII.
    (b) Section 311(c).--Effective October 1, 1998, 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 (h) as 
        subsections (c) through (g), respectively.
    (c) Conforming Amendments.--Effective October 1, 1995, the 
Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.) is amended in the 
table of contents in the first section--
            (1) by striking the items relating to sections 303, 304, 
        312, and 316;
            (2) by striking the items relating to sections 801 through 
        803 of title VIII; and
            (3) by striking the item relating to the title designation 
        and heading for title VIII.

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, 1998, title VI of 
the Rehabilitation Act of 1973, as amended by subsection (a) of this 
section, is repealed.
    (c) Conforming Amendments.--Effective October 1, 1995, the 
Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.) is amended in the 
table of contents in the first section by striking the items relating 
to sections 611 through 617, to sections 631 through 638, and to 
section 641; and by striking the items relating to the part 
designations and headings for parts A, B, C, and D of title VI. 
Effective October 1, 1998, such table of contents is amended by 
striking the items relating to sections 621 through 623; and by 
striking the item relating to the title designation and heading for 
title VI.
                TITLE VI--REPEALERS AND OTHER AMENDMENTS

SEC. 601. 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. 602. SCHOOL-TO-WORK OPPORTUNITIES ACT.

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

SEC. 603. 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. 604. NATIONAL LITERACY ACT.

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

SEC. 605. 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. 606. TECHNOLOGY FOR EDUCATION ACT OF 1994.

    Part F of the Technology for Education Act of 1994 (20 U.S.C. 7001 
et seq.) (relating to the library media resources program) is repealed.
SEC. 607. JOB TRAINING PARTNERSHIP ACT.
    (a) In General.--The Job Training Partnership Act (29 U.S.C. 1501 
et seq.), except section 1, sections 421 through 439 (relating to the 
Job Corps), and section 441 of such Act (relating to veterans' 
employment programs), is hereby repealed.
    (b) Conforming Amendments.--
            (1) Short title.--Section 1 of the Job Training Partnership 
        Act (29 U.S.C. 1501, note) is amended--
                    (A) in the heading, by striking ``; table of 
                contents''; and
                    (B) by striking all that follows after ``Job 
                Training Partnership Act''.
            (2) Job corps.--Such Act (29 U.S.C. 1501 et seq.), as 
        amended by this section, is further amended--
                    (A) by redesignating sections 421 through 439 as 
                sections 2 through 21, respectively;
                    (B) in section 2 (as redesignated), by striking 
                ``part'' each place it appears and inserting ``Act'';
                    (C) in section 4(4) (as redesignated), by striking 
                ``sections 424 and 425'' and inserting ``sections 5 and 
                6'';
                    (D) in section 5 (as redesignated)--
                            (i) in subsection (a), by striking 
                        ``entities administering programs under title 
                        II of this Act,''; and
                            (ii) in subsection (b), by striking 
                        ``part'' and inserting ``Act'';
                    (E) in section 7 (as redesignated)--
                            (i) in subsection (a), by striking 
                        ``section 428'' and inserting ``section 9''; 
                        and
                            (ii) by striking subsection (d);
                    (F) in section 8 (as redesignated)--
                            (i) by striking subsection (b); and
                            (ii) by redesignating subsection (c) as 
                        subsection (b);
                    (G) in section 14 (as redesignated)--
                            (i) in subsection (a)(4), by striking 
                        ``part'' and inserting ``Act'';
                            (ii) in subsection (c)(1), by striking 
                        ``and activities authorized under sections 452 
                        and 453''; and
                            (iii) in subsection (e), by striking 
                        ``section 431'' and inserting ``section 12'';
                    (H) in section 15 (as redesignated)--
                            (i) in subsection (a)--
                                    (I) in the matter preceding 
                                paragraph (1), by striking ``section 
                                427'' and inserting ``section 8''; and
                                    (II) in paragraph (4)(A), by 
                                striking ``section 428'' and inserting 
                                ``section 9'';
                            (ii) in subsection (c)(3), by striking 
                        ``section 423'' and inserting ``section 4'';
                            (iii) in subsection (d), by striking 
                        ``sections 424 and 425'' and inserting 
                        ``sections 5 and 6''; and
                            (iv) in subsection (e), by striking ``, 
                        pursuant to section 452(d),'';
                    (I) in section 17 (as redesignated), by striking 
                ``purpose of this part'' each place it appears and 
                inserting ``purpose of this Act'';
                    (J) in section 20 (as redesignated), by striking 
                ``part'' each place it appears and inserting ``Act''; 
                and
                    (K) in section 21 (as redesignated), by striking 
                ``part'' and inserting ``Act''.
            (3) Veterans' employment programs.--Such Act (29 U.S.C. 
        1501 et seq.), as amended by this section, is further amended--
                    (A) by redesignating section 441 as section 22;
                    (B) by striking the heading of such section 22 (as 
                redesignated), and inserting the following:

                 ``veterans' employment programs''; and

                    (C) in such section 22, by striking ``part'' each 
                place it appears and inserting ``section''.
            (4) Authorization of appropriations.--Such Act (29 U.S.C. 
        1501 et seq.), as amended by this section, is further amended 
        by adding at the end the following new section:

                   ``authorization of appropriations

    ``Sec. 23. There are authorized to be appropriated such sums as are 
necessary to carry out this Act.''.

SEC. 608. STEWART B. MCKINNEY HOMELESS ASSISTANCE ACT.

    (a) Adult Education.--
            (1) In general.--Subtitle A of title VII of the Stewart B. 
        McKinney Homeless Assistance Act (42 U.S.C. 11421 et seq.) is 
        repealed.
            (2) Table of contents.--The table of contents of such Act 
        is amended by striking the items relating to subtitle A of 
        title VII of such Act.
    (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--
                    (A) by striking the item relating to subtitle C of 
                title VII of such Act; and
                    (B) by striking the items relating to sections 731 
                through 737 and sections 739 through 741.

SEC. 609. EFFECTIVE DATE.

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