[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 143 Reported in Senate (RS)]

                                                       Calendar No. 153

104th CONGRESS

  1st Session

                                 S. 143

                          [Report No. 104-118]

_______________________________________________________________________

                                 A BILL

 To consolidate Federal employment training programs and create a new 
process and structure for funding the programs, and for other purposes.

_______________________________________________________________________

                July 24 (legislative day, July 10), 1995

        Reported with an amendment and an amendment to the title
                                                       Calendar No. 153
104th CONGRESS
  1st Session
                                 S. 143

                          [Report No. 104-118]

 To consolidate Federal employment training programs and create a new 
process and structure for funding the programs, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 4, 1995

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

                July 24 (legislative day, July 10), 1995

 Reported by Mrs. Kassebaum, with an amendment and an amendment to the 
                                 title
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL


 
 To consolidate Federal employment training programs and create a new 
process and structure for funding the programs, and for other purposes.
    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,
<DELETED>SECTION 1. SHORT TITLE; TABLE OF CONTENTS.</DELETED>

<DELETED>    (a) Short Title.--This Act may be cited as the ``Job 
Training Consolidation Act of 1995''.</DELETED>
<DELETED>    (b) Table of Contents.--The table of contents is as 
follows:</DELETED>

<DELETED>Sec. 1. Short title; table of contents.
<DELETED>Sec. 2. Findings.
<DELETED>Sec. 3. Definitions.
 <DELETED>TITLE I--USE OF FEDERAL FUNDS FOR STATE EMPLOYMENT TRAINING 
                               ACTIVITIES

<DELETED>Sec. 101. Formula assistance.
<DELETED>Sec. 102. Discretionary assistance.
<DELETED>Sec. 103. Trade adjustment assistance services.
<DELETED>Sec. 104. Employment training activities.
<DELETED>Sec. 105. Reports.
    <DELETED>TITLE II--CONSOLIDATION OF EMPLOYMENT TRAINING PROGRAMS

<DELETED>Sec. 201. Repeals of employment training programs.
<DELETED>SEC. 2. FINDINGS.</DELETED>

<DELETED>    Congress finds that--</DELETED>
        <DELETED>    (1) according to the General Accounting Office--
        </DELETED>
                <DELETED>    (A) there are currently 154 Federal 
                employment training programs; and</DELETED>
                <DELETED>    (B) these programs cost nearly 
                $25,000,000,000 annually and are administered by 14 
                different Federal agencies;</DELETED>
        <DELETED>    (2) these programs target individual populations 
        such as economically disadvantaged persons, dislocated workers, 
        youth, and persons with disabilities;</DELETED>
        <DELETED>    (3) many of these programs provide similar 
        services, such as counseling, assessment, and literacy skills 
        enhancement, resulting in overlapping services, wasted funds, 
        and confusion on the part of local service providers and 
        individuals seeking assistance;</DELETED>
        <DELETED>    (4) the Federal agencies administering these 
        programs fail to collect enough performance data to know 
        whether the programs are working effectively;</DELETED>
        <DELETED>    (5) the additional cost of administering 
        overlapping employment training programs at the Federal, State, 
        and local levels diverts scarce resources that could be better 
        used to assist all persons in entering the work force, gaining 
        basic skills, or retraining for new jobs;</DELETED>
        <DELETED>    (6) the conflicting eligibility requirements, and 
        annual budgeting or operating cycles, of employment training 
        programs create barriers to coordination of the programs that 
        may restrict access to services and result in inefficient use 
        of resources;</DELETED>
        <DELETED>    (7) despite more than 30 years of federally funded 
        employment training programs, the Federal Government has no 
        single, coherent policy guiding its employment training 
        efforts;</DELETED>
        <DELETED>    (8) the Federal Government has failed to 
        adequately maximize the effectiveness of the substantial public 
        and private sector resources of the United States for training 
        and work-related education; and</DELETED>
        <DELETED>    (9) the Federal Government lacks a national labor 
        market information system, which is needed to provide current 
        data on jobs and skills in demand in different regions of the 
        country.</DELETED>

<DELETED>SEC. 3. DEFINITIONS.</DELETED>

<DELETED>    As used in this Act:</DELETED>
        <DELETED>    (1) Covered act.--The term ``covered Act'' means 
        an Act described in paragraph (3).</DELETED>
        <DELETED>    (2) Covered activity.--The term ``covered 
        activity'' means an activity authorized to be carried out under 
        a covered provision.</DELETED>
        <DELETED>    (3) Covered provision.--The term ``covered 
        provision'' means a provision of--</DELETED>
                <DELETED>    (A) the Job Training Partnership Act (29 
                U.S.C. 1501 et seq.);</DELETED>
                <DELETED>    (B) the Carl D. Perkins Vocational and 
                Applied Technology Education Act (20 U.S.C. 2301 et 
                seq.);</DELETED>
                <DELETED>    (C) part B of title III of the Adult 
                Education Act (20 U.S.C. 1203 et seq.);</DELETED>
                <DELETED>    (D) part F of title IV of the Social 
                Security Act (42 U.S.C. 681 et seq.);</DELETED>
                <DELETED>    (E) section 235 or 236, or paragraph (1) 
                or (2) of section 250(d), of the Trade Act of 1974 (19 
                U.S.C. 2295, 2296, or 2331(d));</DELETED>
                <DELETED>    (F) the Wagner-Peyser Act (29 U.S.C. 49 et 
                seq.);</DELETED>
                <DELETED>    (G) title I of the Rehabilitation Act of 
                1973 (29 U.S.C. 720 et seq.);</DELETED>
                <DELETED>    (H) section 6(d)(4) of the Food Stamp Act 
                of 1977 (7 U.S.C. 2015(d)(4));</DELETED>
                <DELETED>    (I) the Refugee Education Assistance Act 
                of 1980 (8 U.S.C. 1522 note);</DELETED>
                <DELETED>    (J) section 204 of the Immigration Reform 
                and Control Act of 1986 (8 U.S.C. 1255a 
                note);</DELETED>
                <DELETED>    (K) title VII of the Stewart B. McKinney 
                Homeless Assistance Act (42 U.S.C. 11421 et 
                seq.);</DELETED>
                <DELETED>    (L) title V of the Older Americans Act of 
                1965 (42 U.S.C. 3056 et seq.); and</DELETED>
                <DELETED>    (M) the School-to-Work Opportunities Act 
                of 1994 (20 U.S.C. 6101 et seq.).</DELETED>
        <DELETED>    (4) Local entity.--The term ``local entity'' 
        includes public and private entities.</DELETED>

 <DELETED>TITLE I--USE OF FEDERAL FUNDS FOR STATE EMPLOYMENT TRAINING 
                          ACTIVITIES</DELETED>

<DELETED>SEC. 101. FORMULA ASSISTANCE.</DELETED>

<DELETED>    (a) Use of Funds.--Notwithstanding any other provision of 
Federal law, a State that receives State formula assistance for a 
covered activity for a fiscal year may use the assistance to carry out 
activities as described in section 104 for the fiscal year. 
Notwithstanding any other provision of Federal law, a local entity that 
receives local formula assistance for a covered activity for a fiscal 
year may use the assistance to carry out activities as described in 
section 104 for the fiscal year.</DELETED>
<DELETED>    (b) Requirements.--</DELETED>
        <DELETED>    (1) In general.--Except as otherwise provided in 
        this subsection, a State may use such State formula assistance, 
        and a local entity may use such local formula assistance, to 
        carry out activities as described in section 104, without 
        regard to the requirements of any covered Act.</DELETED>
        <DELETED>    (2) Remaining program requirements.--</DELETED>
                <DELETED>    (A) Allocation and enforcement.--Any head 
                of a Federal agency that allocates State formula 
                assistance, and any State that allocates local formula 
                assistance, for a covered activity--</DELETED>
                        <DELETED>    (i) shall allocate such assistance 
                        in accordance with allocation requirements that 
                        are specified in the covered Acts and that 
                        relate to the covered activity, including 
                        provisions relating to minimum or maximum 
                        allocations; and</DELETED>
                        <DELETED>    (ii)(I) if the State or local 
                        entity uses such assistance to carry out the 
                        covered activity, shall exercise the 
                        enforcement and oversight authorities that are 
                        specified in the covered Acts and that relate 
                        to the covered activity; and</DELETED>
                        <DELETED>    (II) if the State or local entity 
                        does not use such assistance to carry out the 
                        covered activity, shall exercise such 
                        authorities solely for the purpose of ensuring 
                        that the assistance is used to carry out 
                        activities as described in section 104, and in 
                        accordance with the applicable requirements of 
                        this title.</DELETED>
                <DELETED>    (B) Administrative expense limits.--Each 
                State that receives State formula assistance, and each 
                local entity that receives local formula assistance, 
                for a covered activity--</DELETED>
                        <DELETED>    (i) shall comply with any limits 
                        on administrative expenses that are specified 
                        in the covered Acts and that relate to the 
                        covered activity; and</DELETED>
                        <DELETED>    (ii) for any fiscal year, may not 
                        use a greater percentage of the State formula 
                        assistance or local formula assistance to pay 
                        for the administrative expenses of activities 
                        carried out under section 104 than the State or 
                        entity used to pay for such administrative 
                        expenses relating to the covered activity for 
                        fiscal year 1995.</DELETED>
                <DELETED>    (C) Conditional benefits.--Any State that 
                receives State formula assistance to carry out a 
                covered activity described in a covered provision 
                specified in subparagraph (D) or (H) of section 3(3) 
                and that uses the assistance to carry out activities as 
                described in section 104 shall carry out an activity 
                that is appropriate for persons who would otherwise be 
                eligible to participate in the covered activity. Any 
                person in the State who would otherwise be required to 
                participate in the covered activity in order to obtain 
                Federal assistance under a covered Act shall be 
                eligible to receive the assistance by participating in 
                such appropriate activity.</DELETED>
                <DELETED>    (D) Availability of appropriations.--
                Nothing in this section shall affect the period for 
                which any appropriation under a covered Act remains 
                available.</DELETED>
<DELETED>    (c) Definitions.--As used in this section:</DELETED>
        <DELETED>    (1) Local formula assistance.--The term ``local 
        formula assistance'' means assistance made available by a State 
        to a local entity under--</DELETED>
                <DELETED>    (A)(i) subsections (a)(2) and (b) of 
                section 202 of the Job Training Partnership Act (29 
                U.S.C. 1602);</DELETED>
                <DELETED>    (ii) section 252(b) of such Act (29 U.S.C. 
                1631(b)) in accordance with subsections (a)(2) and (b) 
                of section 262 of such Act (29 U.S.C. 1642);</DELETED>
                <DELETED>    (iii) subsections (a)(2) and (b) of 
                section 262 of such Act (29 U.S.C. 1642); or</DELETED>
                <DELETED>    (iv) subsections (a)(1), (b), and (d) of 
                section 302 of such Act (29 U.S.C. 1652); or</DELETED>
                <DELETED>    (B)(i) section 102(a)(1), and section 
                231(a) or 232 of the Carl D. Perkins Vocational 
                Education Act (20 U.S.C. 2312(a)(1), and 2341(a) or 
                2341a); or</DELETED>
                <DELETED>    (ii) section 353(b) of such Act (20 U.S.C. 
                2395b(b)).</DELETED>
        <DELETED>    (2) State formula assistance.--The term ``State 
        formula assistance'' means assistance made available by an 
        agency of the Federal Government to a State under--</DELETED>
                <DELETED>    (A)(i) subsections (a)(2) and (c) of 
                section 202 of the Job Training Partnership Act (29 
                U.S.C. 1602);</DELETED>
                <DELETED>    (ii) subsections (a)(2) and (c) of section 
                262 of such Act (29 U.S.C. 1642);</DELETED>
                <DELETED>    (iii) subsections (a)(1), (b), and (c)(1) 
                of section 302 of such Act (29 U.S.C. 1652); 
                or</DELETED>
                <DELETED>    (iv) sections 502(d) and 503 of such Act 
                (29 U.S.C. 1791a(d));</DELETED>
                <DELETED>    (B)(i) section 101(a)(2) of the Carl D. 
                Perkins Vocational Education Act (20 U.S.C. 2311(a)(2)) 
                (other than assistance made available under section 
                231(a) or 232 of such Act (20 U.S.C. 2341(a) or 2341a) 
                to local educational agencies or other local entities 
                within the State);</DELETED>
                <DELETED>    (ii) section 112(f) of such Act (20 U.S.C. 
                2322(f)); or</DELETED>
                <DELETED>    (iii) section 343(b)(1) of such Act (20 
                U.S.C. 2394a(b)(1));</DELETED>
                <DELETED>    (C) section 313(b) of the Adult Education 
                Act (20 U.S.C. 1201b(b)) (other than assistance 
                reserved to carry out part D of title III of such Act 
                (20 U.S.C. 1213 et seq.));</DELETED>
                <DELETED>    (D) subsection (k) or (l) of section 403 
                of the Social Security Act (42 U.S.C. 603);</DELETED>
                <DELETED>    (E) section 6(b)(1) of the Wagner-Peyser 
                Act (29 U.S.C. 49e(b)(1));</DELETED>
                <DELETED>    (F)(i) subsection (a) or (b) of section 
                110 of the Rehabilitation Act of 1973 (29 U.S.C. 730) 
                (less any amount reserved under subsection (d) of such 
                section);</DELETED>
                <DELETED>    (ii) section 112(e) of such Act (29 U.S.C. 
                732(e)); or</DELETED>
                <DELETED>    (iii) section 124 of such Act (29 U.S.C. 
                744);</DELETED>
                <DELETED>    (G) section 16(h)(1) of the Food Stamp Act 
                of 1977 (7 U.S.C. 2025(h)(1)) (other than funds made 
                available under subparagraph (B) of such 
                section);</DELETED>
                <DELETED>    (H)(i) section 201(b) of the Refugee 
                Education Assistance Act of 1980 (8 U.S.C. 1522 
                note);</DELETED>
                <DELETED>    (ii) section 301(b) of such Act (8 U.S.C. 
                1522 note); or</DELETED>
                <DELETED>    (iii) section 401(b) of such Act (8 U.S.C. 
                1522 note);</DELETED>
                <DELETED>    (I) section 204(b) of the Immigration 
                Reform and Control Act of 1986 (8 U.S.C. 1255a 
                note);</DELETED>
                <DELETED>    (J)(i) section 722(c) of the Stewart B. 
                McKinney Homeless Assistance Act; or</DELETED>
                <DELETED>    (ii) section 752(a) of such Act (42 U.S.C. 
                11462(a)); or</DELETED>
                <DELETED>    (K) section 506(a)(3) of the Older 
                Americans Act of 1965 (42 U.S.C. 
                3056d(a)(3)).</DELETED>

<DELETED>SEC. 102. DISCRETIONARY ASSISTANCE.</DELETED>

<DELETED>    (a) In General.--</DELETED>
        <DELETED>    (1) Prior assistance.--Notwithstanding any other 
        provision of Federal law, a State or local entity that 
        received, prior to the date of enactment of this Act, 
        discretionary assistance for a covered activity for a fiscal 
        year may use the assistance to carry out activities as 
        described in section 104 for the fiscal year.</DELETED>
        <DELETED>    (2) Future assistance.--Notwithstanding any other 
        provision of Federal law, a State or local entity that is 
        eligible to apply for discretionary assistance for a covered 
        activity for a fiscal year may apply, as described in 
        subsection (c), for the assistance to carry out activities as 
        described in section 104 for the fiscal year.</DELETED>
<DELETED>    (b) Use of Funds.--</DELETED>
        <DELETED>    (1) In general.--Except as otherwise provided in 
        this subsection, a State or local entity that receives 
        discretionary assistance prior to the date of enactment of this 
        Act or on approval of an application submitted under subsection 
        (c) may use the discretionary assistance to carry out 
        activities as described in section 104, without regard to the 
        requirements of any covered Act.</DELETED>
        <DELETED>    (2) Remaining program requirements.--A State or 
        local entity that uses discretionary assistance to carry out 
        such activities shall use the assistance in accordance with the 
        requirements of subparagraphs (A), (B), and (D) of section 
        101(b)(2), which shall apply to such assistance in the same 
        manner and to the same extent as the requirements apply to 
        State formula assistance or local formula assistance, as 
        appropriate, used under section 101.</DELETED>
<DELETED>    (c) Additional Information in Application.--A State or 
local entity seeking to use discretionary assistance as described in 
subsection (a)(2) shall include in the application (under the covered 
provision involved) of the State or local entity for the assistance (in 
lieu of any information otherwise required to be submitted)--</DELETED>
        <DELETED>    (1) a description of the funds the State or local 
        entity proposes to use to carry out activities as described in 
        section 104;</DELETED>
        <DELETED>    (2) a description of the activities to be carried 
        out with such funds;</DELETED>
        <DELETED>    (3) a description of the specific outcomes 
        expected of participants in the activities; and</DELETED>
        <DELETED>    (4) such other information as the head of the 
        agency with responsibility for evaluating the application may 
        require.</DELETED>
<DELETED>    (d) Evaluation of Application.--In evaluating an 
application described in subsection (c), the agency with responsibility 
for evaluating the application shall evaluate the application by 
determining the likelihood that the State or local entity submitting 
the application will be able to carry out activities as described in 
section 104. In evaluating applications for discretionary assistance, 
the agency shall not give preference to applications proposing covered 
activities over applications proposing activities described in section 
104.</DELETED>
<DELETED>    (e) Definition.--As used in this section, the term 
``discretionary assistance'' means assistance that--</DELETED>
        <DELETED>    (1) is not State formula assistance or local 
        formula assistance, as defined in section 101(c);</DELETED>
        <DELETED>    (2) is not Federal assistance available to provide 
        services described in section 235 or 236, or paragraph (1) or 
        (2) of section 250(d), of the Trade Act of 1974 (19 U.S.C. 
        2295, 2296, or 2331(d)); and</DELETED>
        <DELETED>    (3) is made available by an agency of the Federal 
        Government, or by a State, to a State or local entity to enable 
        the State or local entity to carry out an activity under a 
        covered provision.</DELETED>

<DELETED>SEC. 103. TRADE ADJUSTMENT ASSISTANCE SERVICES.</DELETED>

<DELETED>    (a) Use of Assistance.--</DELETED>
        <DELETED>    (1) In general.--Notwithstanding any other 
        provision of Federal law, if the Secretary of Labor initiates 
        efforts under section 235 of the Trade Act of 1974 (19 U.S.C. 
        2295) to secure services described in such section 235 
        (including services that are provided under section 250(d)(1) 
        of such Act (19 U.S.C. 2331(d)(1))) for a worker, or if the 
        Secretary makes a determination under section 236(a) of the 
        Trade Act of 1974 (19 U.S.C. 2296(a)) that entitles a worker to 
        payments described in such section for services (including 
        services for which payment is provided under section 250(d)(2) 
        of such Act), the Secretary shall notify the State in which the 
        worker is located.</DELETED>
        <DELETED>    (2) Activities.--A State that receives such 
        notification may apply under subsection (c) for the Federal 
        assistance that would otherwise have been expended to provide 
        services described in paragraph (1) to the worker, to enable 
        the State to carry out activities as described in section 104 
        for the fiscal year. If the State has received such assistance 
        in advance, the State may apply under subsection (c) to use 
        such assistance to enable the State to carry out activities as 
        described in section 104 for the fiscal year.</DELETED>
<DELETED>    (b) Requirements.--</DELETED>
        <DELETED>    (1) In general.--Except as otherwise provided in 
        this subsection, a State that receives such Federal assistance 
        and receives approval of an application submitted under 
        subsection (c) may use the assistance to carry out activities 
        as described in section 104, without regard to the requirements 
        of any covered Act.</DELETED>
        <DELETED>    (2) Remaining program requirements.--A State that 
        uses such Federal assistance to carry out such activities shall 
        use the assistance in accordance with the requirements of 
        subparagraphs (A)(ii), (B), and (D) of section 101(b)(2), which 
        shall apply to such assistance in the same manner and to the 
        same extent as the requirements apply to State formula 
        assistance or local formula assistance, as appropriate, used 
        under section 101.</DELETED>
        <DELETED>    (3) Conditional benefits.--Any State that receives 
        Federal assistance that would otherwise have been expended to 
        provide services described in subsection (a)(1) to a worker, 
        and that uses the assistance to carry out activities as 
        described in section 104, shall carry out eligible alternative 
        activities that are appropriate for the worker. If the worker 
        would otherwise be required to receive such services in order 
        to obtain Federal funds under another provision of chapter 2 of 
        title II of the Trade Act of 1974 (19 U.S.C. 2291 et seq.), the 
        worker shall be eligible to receive the funds by participating 
        in such eligible alternative activities.</DELETED>
<DELETED>    (c) Additional Information in Application.--A State 
seeking to use Federal assistance that would otherwise have been 
expended to provide services described in subsection (a)(1) to a worker 
shall submit an application to the Secretary of Labor, at such time and 
in such manner as the Secretary may require, that contains--</DELETED>
        <DELETED>    (1) a description of the Federal assistance the 
        State proposes to use to carry out activities as described in 
        section 104;</DELETED>
        <DELETED>    (2) a description of the activities to be carried 
        out with such assistance;</DELETED>
        <DELETED>    (3) a description of the specific outcomes 
        expected of participants in the activities; and</DELETED>
        <DELETED>    (4) such other information as the Secretary of 
        Labor may require.</DELETED>
<DELETED>    (d) Evaluation of Application.--In evaluating an 
application described in subsection (c), the Secretary of Labor shall 
evaluate the application by determining the likelihood that the State 
submitting the application will be able to carry out activities as 
described in section 104. In evaluating applications for such Federal 
assistance, the Secretary of Labor shall not give preference to 
applications proposing covered activities over applications proposing 
activities described in section 104.</DELETED>

<DELETED>SEC. 104. EMPLOYMENT TRAINING ACTIVITIES.</DELETED>

<DELETED>    A State or local entity that receives State formula 
assistance or local formula assistance as described in section 101(a), 
receives discretionary assistance as described in section 102(b), or 
receives Federal assistance as described in section 103(b), may--
</DELETED>
        <DELETED>    (1) use the assistance to carry out activities to 
        develop a comprehensive statewide employment training system 
        that--</DELETED>
                <DELETED>    (A) is primarily designed and implemented 
                by communities to serve local labor markets in the 
                State involved;</DELETED>
                <DELETED>    (B) requires the participation and 
                involvement of private sector employers in all phases 
                of the planning, development, and implementation of the 
                system, including--</DELETED>
                        <DELETED>    (i) determining the skills to be 
                        developed by each employment training program 
                        carried out through the system; and</DELETED>
                        <DELETED>    (ii) designing the training to be 
                        provided by each such program;</DELETED>
                <DELETED>    (C) assures that State and local training 
                efforts are linked to available employment 
                opportunities;</DELETED>
                <DELETED>    (D) includes standards for determining the 
                effectiveness of such programs; and</DELETED>
                <DELETED>    (E) is an integrated system that assures 
                that individuals seeking employment in the State will 
                receive information about all available employment 
                training services provided in the State, regardless of 
                where the individuals initially enter the system; 
                or</DELETED>
        <DELETED>    (2) may use the assistance that would otherwise 
        have been used to carry out 2 or more covered activities--
        </DELETED>
                <DELETED>    (A) to address the high priority needs of 
                unemployed persons in the State or community involved 
                for employment training services;</DELETED>
                <DELETED>    (B) to improve efficiencies in the 
                delivery of the covered activities; or</DELETED>
                <DELETED>    (C) in the case of overlapping or 
                duplicative activities--</DELETED>
                        <DELETED>    (i) by combining the covered 
                        activities and funding the combined activities; 
                        or</DELETED>
                        <DELETED>    (ii) by eliminating one of the 
                        covered activities and increasing the funding 
                        to the remaining covered activity.</DELETED>

<DELETED>SEC. 105. REPORTS.</DELETED>

<DELETED>    (a) State Reports.--</DELETED>
        <DELETED>    (1) Preparation.--A State that receives State 
        formula assistance as described in section 101(a), receives 
        discretionary assistance as described in section 102(b), or 
        receives Federal assistance as described in section 103(b), and 
        that uses the assistance to carry out activities as described 
        in section 104 shall annually prepare a report containing--
        </DELETED>
                <DELETED>    (A) information on the amount and origin 
                of such assistance;</DELETED>
                <DELETED>    (B) information on the activities carried 
                out with such assistance;</DELETED>
                <DELETED>    (C) information regarding the populations 
                to be served with such assistance, such as</DELETED>
                 economically disadvantaged persons, dislocated 
workers, youth, and individuals with disabilities;</DELETED>
                <DELETED>    (D) a summary of the reports received by 
                the State under subsection (b); and</DELETED>
                <DELETED>    (E) such other information as the 
                committees described in paragraph (2) may 
                require.</DELETED>
        <DELETED>    (2) Submission.--The State shall submit the report 
        described in paragraph (1) to the Committee on Education and 
        Labor of the House of Representatives, and the Committee on 
        Labor and Human Resources of the Senate, not later than 60 days 
        after the end of each year.</DELETED>
<DELETED>    (b) Local Entity Reports.--</DELETED>
        <DELETED>    (1) Preparation.--A local entity that receives 
        local formula assistance as described in section 101(a), or 
        that receives discretionary assistance as described in section 
        102(b), and uses the assistance to carry out activities as 
        described in section 104 shall annually prepare a report 
        containing--</DELETED>
                <DELETED>    (A) information on the amount and origin 
                of such assistance;</DELETED>
                <DELETED>    (B) information on the activities carried 
                out with such assistance;</DELETED>
                <DELETED>    (C) information regarding the populations 
                to be served with such assistance, such as economically 
                disadvantaged persons, dislocated workers, youth, and 
                individuals with disabilities; and</DELETED>
                <DELETED>    (D) such other information as the State 
                that allocated the assistance may require.</DELETED>
        <DELETED>    (2) Submission.--The local entity shall submit the 
        report described in paragraph (1) to the State not later than 
        30 days after the end of each year.</DELETED>

        <DELETED>TITLE II--CONSOLIDATION OF EMPLOYMENT TRAINING 
                           PROGRAMS</DELETED>

<DELETED>SEC. 201. REPEALS OF EMPLOYMENT TRAINING PROGRAMS.</DELETED>

<DELETED>    (a) In General.--The following provisions are 
repealed:</DELETED>
        <DELETED>    (1) The Job Training Partnership Act (29 U.S.C. 
        1501 et seq.).</DELETED>
        <DELETED>    (2) The Carl D. Perkins Vocational and Applied 
        Technology Education Act (20 U.S.C. 2301 et seq.).</DELETED>
        <DELETED>    (3) Part B of title III of the Adult Education Act 
        (20 U.S.C. 1203 et seq.).</DELETED>
        <DELETED>    (4) Part F of title IV of the Social Security Act 
        (42 U.S.C. 681 et seq.).</DELETED>
        <DELETED>    (5) Sections 235 and 236 of the Trade Act of 1974 
        (19 U.S.C. 2295 and 2296), and paragraphs (1) and (2) of 
        section 250(d) of such Act (19 U.S.C. 2331(d)).</DELETED>
        <DELETED>    (6) The Wagner-Peyser Act (29 U.S.C. 49 et 
        seq.).</DELETED>
        <DELETED>    (7) Title I of the Rehabilitation Act of 1973 (29 
        U.S.C. 720 et seq.).</DELETED>
        <DELETED>    (8) Section 6(d)(4) of the Food Stamp Act of 1977 
        (7 U.S.C. 2015(d)(4)).</DELETED>
        <DELETED>    (9) The Refugee Education Assistance Act of 1980 
        (8 U.S.C. 1522 note).</DELETED>
        <DELETED>    (10) Section 204 of the Immigration Reform and 
        Control Act of 1986 (8 U.S.C. 1255a note).</DELETED>
        <DELETED>    (11) Title VII of the Stewart B. McKinney Homeless 
        Assistance Act (42 U.S.C. 11421 et seq.).</DELETED>
        <DELETED>    (12) Title V of the Older Americans Act of 1965 
        (42 U.S.C. 3056 et seq.).</DELETED>
        <DELETED>    (13) The School-to-Work Opportunities Act of 1994 
        (20 U.S.C. 6101 et seq.).</DELETED>
<DELETED>    (b) Technical and Conforming Amendments.--Section 250(d) 
of the Trade Act of 1974 (as amended by subsection (a)(5)) is amended 
by redesignating paragraphs (3), (4), and (5) as paragraphs (1), (2), 
and (3), respectively.</DELETED>
<DELETED>    (c) Effective Date.--The repeals made by subsection (a), 
and the amendments made by subsection (b), shall take effect 24 months 
after the date of enactment of this Act.</DELETED>
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Workforce 
Development Act of 1995''.
    (b) Table of Contents.--The table of contents is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Definitions.

            TITLE I--STATEWIDE WORKFORCE DEVELOPMENT SYSTEMS

                      Subtitle A--State Provisions

Sec. 101. Statewide workforce development systems established.
Sec. 102. State allotments.
Sec. 103. State apportionment by activity.
Sec. 104. State plans.
Sec. 105. State workforce development boards.
Sec. 106. Use of funds.

                      Subtitle B--Local Provisions

Sec. 111. Local apportionment by activity.
Sec. 112. Distribution for secondary school vocational education.
Sec. 113. Distribution for postsecondary and adult vocational 
                            education.
Sec. 114. Distribution for adult education.
Sec. 115. Special rule for minimal allocation.
Sec. 116. Redistribution.
Sec. 117. Local application for workforce education activities.
Sec. 118. Local partnerships, agreements, and workforce development 
                            boards.

               Subtitle C--Provisions for Other Entities

Sec. 121. Indian workforce development activities.
Sec. 122. Grants to outlying areas.

                     Subtitle D--General Provisions

Sec. 131. Accountability.
Sec. 132. Incentives and sanctions.
Sec. 133. Unemployment trust fund.
Sec. 134. Authorization of appropriations.
Sec. 135. Effective date.

                    TITLE II--TRANSITION PROVISIONS

Subtitle A--Transition Provisions Relating to Use of Federal Funds for 
                       State and Local Activities

Sec. 201. Waivers.

  Subtitle B--Transition Provisions Relating to Applications and Plans

Sec. 211. Interim State plans.
Sec. 212. Applications and plans under covered Acts.

 Subtitle C--Job Corps and Other Workforce Preparation Activities for 
                             At-Risk Youth

                Chapter 1--General Job Corps Provisions

Sec. 221. Purposes.
Sec. 222. Definitions.
Sec. 223. General authority.
Sec. 224. Individuals eligible for the Job Corps.
Sec. 225. Screening and selection of applicants.
Sec. 226. Enrollment and assignment.
Sec. 227. Job Corps centers.
Sec. 228. Program activities.
Sec. 229. Support.
Sec. 230. Operating plan.
Sec. 231. Standards of conduct.
Sec. 232. Community participation.
Sec. 233. Counseling and placement.
Sec. 234. Leases and sales of centers.
Sec. 235. Closure of Job Corps centers.
Sec. 236. Interim operating plans for Job Corps centers.
Sec. 237. Effective date.

  Chapter 2--Other Workforce Preparation Activities for At-risk Youth

Sec. 241. Workforce preparation activities for at-risk youth.

     Subtitle D--Interim Administration of School-to-Work Programs

Sec. 251. Administration of school-to-work programs.

     Subtitle E--Amendments Relating to Certain Authorizations of 
                             Appropriations

Sec. 261. Older American Community Service Employment Act.
Sec. 262. Carl D. Perkins Vocational and Applied Technology Education 
                            Act.
Sec. 263. Adult Education Act.

                     TITLE III--NATIONAL ACTIVITIES

Sec. 301. Federal Partnership.
Sec. 302. National assessment of vocational education programs.
Sec. 303. Labor market information.
Sec. 304. National Center for Research in Education and Workforce 
                            Development.
Sec. 305. Transfers to Federal Partnership.
Sec. 306. Transfers to other Federal agencies and offices.
Sec. 307. Elimination of certain offices.

         TITLE IV--AMENDMENTS TO THE REHABILITATION ACT OF 1973

Sec. 401. References.
Sec. 402. Findings and purposes.
Sec. 403. Consolidated rehabilitation plan.
Sec. 404. Definitions.
Sec. 405. Administration.
Sec. 406. Reports.
Sec. 407. Evaluation.
Sec. 408. Declaration of policy.
Sec. 409. State plans.
Sec. 410. Individualized employment plans.
Sec. 411. Scope of vocational rehabilitation services.
Sec. 412. State Rehabilitation Advisory Council.
Sec. 413. Evaluation standards and performance indicators.
Sec. 414. Repeals.
Sec. 415. Effective date.

                        TITLE V--OTHER PROGRAMS

       Subtitle A--Amendments to Immigration and Nationality Act

Sec. 501. Prohibition on use of funds for certain employment 
                            activities.

                      Subtitle B--Welfare Programs

Sec. 511. Welfare reform.

 TITLE VI--REPEALS OF EMPLOYMENT AND TRAINING AND VOCATIONAL AND ADULT 
                           EDUCATION PROGRAMS

Sec. 601. Repeals.
Sec. 602. Conforming amendments.
SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
            (1) increasing international competition, technological 
        advances, and structural changes in the United States economy 
        present new challenges to private businesses and public 
        policymakers in creating a skilled workforce with the ability 
        to adapt to change and technological progress;
            (2) despite more than 60 years of federally funded 
        employment training programs, the Federal Government has no 
        single, coherent policy guiding employment training efforts;
            (3) according to the General Accounting Office, there are 
        over 100 federally funded employment training programs, which 
        are administered by 15 different Federal agencies and cost more 
        than $20,000,000,000 annually;
            (4) many of the programs fail to collect enough performance 
        data to determine the relative effectiveness of each of the 
        programs or the effectiveness of the programs as a whole;
            (5) because of the fragmentation, duplication, and lack of 
        accountability that currently exist within and among Federal 
        employment training programs it is often difficult for workers, 
        jobseekers, and businesses to easily access the services they 
        need;
            (6) high quality, innovative vocational education programs 
        provide youth with skills and knowledge on which to build 
        successful careers and, in providing the skills and knowledge, 
        vocational education serves as the foundation of a successful 
        workforce development system;
            (7) in recent years, several States and communities have 
        begun to develop promising new initiatives such as--
                    (A) school-to-work programs to better integrate 
                youth employment and education programs; and
                    (B) one-stop systems to make workforce development 
                activities more accessible to workers, jobseekers, and 
                businesses; and
            (8) Federal, State, and local governments have failed to 
        adequately allow for private sector leadership in designing 
        workforce development activities that are responsive to local 
        labor market needs.
    (b) Purposes.--The purposes of this Act are--
            (1) to make the United States more competitive in the world 
        economy by eliminating the fragmentation in Federal employment 
        training efforts and creating coherent, integrated statewide 
        workforce development systems designed to develop more fully 
        the academic, occupational, and literacy skills of all segments 
        of the workforce;
            (2) to ensure that all segments of the workforce will 
        obtain the skills necessary to earn wages sufficient to 
        maintain the highest quality of living in the world; and
            (3) to promote the economic development of each State by 
        developing a skilled workforce that is responsive to the labor 
        market needs of the businesses of each State.
SEC. 3. DEFINITIONS.

    As used in this Act:
            (1) Adult education.--
                    (A) In general.--The term ``adult education'' means 
                services or instruction below the college level for 
                adults who--
                            (i) lack sufficient education or literacy 
                        skills to enable the adults to function 
                        effectively in society; or
                            (ii) do not have a certificate of 
                        graduation from a school providing secondary 
                        education (as determined under State law) and 
                        who have not achieved an equivalent level of 
                        education.
                    (B) Adult.--As used in subparagraph (A), the term 
                ``adult'' means an individual who is age 16 or older, 
                or beyond the age of compulsory school attendance under 
                State law, and who is not enrolled in secondary school.
            (2) Area vocational education school.--The term ``area 
        vocational education school'' means--
                    (A) a specialized secondary 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 secondary school 
                exclusively or principally used for providing 
                vocational education in not fewer 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 secondary school and who are available for 
                study in preparation for entering the labor market, if 
                the institute or school admits as regular students both 
                individuals who have completed secondary school and 
                individuals who have left secondary school; or
                    (D) the department or division of a junior college, 
                community college, or university that provides 
                vocational education in not fewer than 5 different 
                occupational fields leading to immediate employment but 
                not necessarily leading to a baccalaureate degree, if 
                the department or division admits as regular students 
                both individuals who have completed secondary school 
                and individuals who have left secondary school.
            (3) At-risk youth.--The term ``at-risk youth'' means an 
        individual who--
                    (A) is not less than age 15 and not more than age 
                24; and
                    (B)(i) is determined under guidelines developed by 
                the Governing Board to be low-income, using the most 
                recent available data provided by the Bureau of the 
                Census, prior to the determination; or
                    (ii) is a dependent of a family that is determined 
                under guidelines developed by the Governing Board to be 
                low-income, using such data.
            (4) Chief elected official.--The term ``chief elected 
        official'' means the chief elected officer of a unit of general 
        local government in a substate area.
            (5) Community-based organization.--The term ``community-
        based organization'' means a private nonprofit organization of 
        demonstrated effectiveness that is representative of a 
        community or a significant segment of a community and that 
        provides workforce development activities.
            (6) Covered activity.--The term ``covered activity'' means 
        an activity authorized to be carried out under a provision 
        described in section 601(b) (as such provision was in effect on 
        the day before the date of enactment of this Act).
            (7) Dislocated worker.--The term ``dislocated worker'' 
        means an individual who--
                    (A) has been terminated from employment and is 
                eligible for unemployment compensation;
                    (B) has received a notice of termination of 
                employment as a result of any permanent closure, or any 
                layoff of 50 or more people, at a plant, facility, or 
                enterprise;
                    (C) is long-term unemployed;
                    (D) was self-employed (including a farmer and a 
                rancher) but is unemployed due to local economic 
                conditions;
                    (E) is a displaced homemaker; or
                    (F) has become unemployed as a result of a Federal 
                action that limits the use of, or restricts access to, 
                a marine natural resource.
            (8) Displaced homemaker.--The term ``displaced homemaker'' 
        means an individual who was a full-time homemaker for a 
        substantial number of years, as determined under guidelines 
        developed by the Governing Board, and who no longer receives 
        financial support previously provided by a spouse or by public 
        assistance.
            (9) Economic development activities.--The term ``economic 
        development activities'' means the activities described in 
        section 106(e).
            (10) Educational service agency.--The term ``educational 
        service agency'' means a regional public multiservice agency 
        authorized by State statute to develop and manage a service or 
        program, and provide the service or program to a local 
        educational agency.
            (11) Elementary school; local educational agency; secondary 
        school.--The terms ``elementary school'', ``local educational 
        agency'' and ``secondary school'' have the meanings given the 
        terms in section 14101 of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 8801).
            (12) Federal partnership.--The term ``Federal Partnership'' 
        means the Workforce Development Partnership established in 
        section 301.
            (13) Flexible workforce activities.--The term ``flexible 
        workforce activities'' means the activities described in 
        section 106(d).
            (14) Governing board.--The term ``Governing Board'' means 
        the Governing Board of the Federal Partnership.
            (15) Individual with a disability.--
                    (A) In general.--The term ``individual with a 
                disability'' means an individual with any disability 
                (as defined in section 3 of the Americans with 
                Disabilities Act of 1990 (42 U.S.C. 12102)).
                    (B) Individuals with disabilities.--The term 
                ``individuals with disabilities'' means more than 1 
                individual with a disability.
            (16) Local entity.--The term ``local entity'' means a 
        public or private entity responsible for local workforce 
        development activities or workforce preparation activities for 
        at-risk youth.
            (17) Local partnership.--The term ``local partnership'' 
        means a partnership referred to in section 118(a).
            (18) Older worker.--The term ``older worker'' means an 
        individual who is age 55 or older and who is determined under 
        guidelines developed by the Governing Board to be low-income, 
        using the most recent available data provided by the Bureau of 
        the Census, prior to the determination.
            (19) Outlying area.--The term ``outlying area'' means the 
        United States Virgin Islands, Guam, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, the Republic of 
        the Marshall Islands, the Federated States of Micronesia, and 
        the Republic of Palau.
            (20) Participant.--The term ``participant'' means an 
        individual participating in workforce development activities or 
        workforce preparation activities for at-risk youth, provided 
        through a statewide system.
            (21) Postsecondary educational institution.--The term 
        ``postsecondary educational institution'' means an institution 
        of higher education, as defined in section 481(a) of the Higher 
        Education Act of 1965 (20 U.S.C. 1088(a)), that offers--
                    (A) a 2-year program of instruction leading to an 
                associate's degree or a certificate of mastery; or
                    (B) a 4-year program of instruction leading to a 
                bachelor's degree.
            (22) Rapid response assistance.--The term ``rapid response 
        assistance'' means workforce employment assistance provided in 
        the case of a permanent closure, or layoff of 50 or more 
        people, at a plant, facility, or enterprise, including the 
        establishment of on-site contact with employers and employee 
        representatives immediately after the State is notified of a 
        current or projected permanent closure, or layoff of 50 or more 
        people.
            (23) School-to-work activities.--The term ``school-to-work 
        activities'' means activities for youth that--
                    (A) integrate school-based learning and work-based 
                learning;
                    (B) integrate academic and occupational learning;
                    (C) establish effective linkages between secondary 
                education and postsecondary education;
                    (D) provide each youth participant with the 
                opportunity to complete a career major; and
                    (E) provide assistance in the form of connecting 
                activities that link each youth participant with an 
                employer in an industry or occupation relating to the 
                career major of the youth participant.
            (24) State.--The term ``State'' means each of the several 
        States of the United States, the District of Columbia, and the 
        Commonwealth of Puerto Rico.
            (25) State benchmarks.--The term ``State benchmarks'', used 
        with respect to a State, means--
                    (A) the quantifiable indicators established under 
                section 131(c) and identified in the report submitted 
                under section 131(a); and
                    (B) such other quantifiable indicators of the 
                statewide progress of the State toward meeting the 
                State goals as the State may identify in the report 
                submitted under section 131(a).
            (26) State educational agency.--The term ``State 
        educational agency'' means the State board of education or 
        other agency or officer primarily responsible for the State 
        supervision of public elementary or secondary schools, or, if 
        there is no such officer or agency, an officer or agency 
        designated by the chief Governor or by State law.
            (27) State goals.--The term ``State goals'', used with 
        respect to a State, means--
                    (A) the goals specified in section 131(b); and
                    (B) such other major goals of the statewide system 
                of the State as the State may identify in the report 
                submitted under section 131(a).
            (28) Statewide system.--The term ``statewide system'' means 
        a statewide workforce development system, referred to in 
        section 101, that is designed to integrate workforce employment 
        activities, workforce education activities, flexible workforce 
        activities, economic development activities (in a State that is 
        eligible to carry out such activities), vocational 
        rehabilitation program activities, and workforce preparation 
        activities for at-risk youth in the State in order to enhance 
        and develop more fully the academic, occupational, and literacy 
        skills of all segments of the population of the State and 
        assist participants in obtaining meaningful unsubsidized 
        employment.
            (29) Substate area.--The term ``substate area'' means a 
        geographic area designated by a Governor that reflects, to the 
        extent feasible, a local labor market in a State.
            (30) Tech-prep program.--The term ``tech-prep program'' 
        means a program of study that--
                    (A) combines at least 2 years of secondary 
                education (as determined under State law) and 2 years 
                of postsecondary education in a nonduplicative 
                sequence;
                    (B) integrates academic and vocational instruction 
                and utilizes worksite learning where appropriate;
                    (C) provides technical preparation in an area such 
                as engineering technology, applied science, a 
                mechanical, industrial, or practical art or trade, 
                agriculture, a health occupation, 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 a certificate 
                in a specific career field; and
                    (F) leads to placement in appropriate employment or 
                further education.
            (31) Vocational education.--The term ``vocational 
        education'' means organized educational programs that--
                    (A) offer a sequence of courses that provide 
                individuals with the academic knowledge and skills the 
                individuals need to prepare for further education and 
                careers in current or emerging employment sectors; and
                    (B) include competency-based applied learning that 
                contributes to the academic knowledge, higher-order 
                reasoning and problem-solving skills, work attitudes, 
                general employability skills, and occupational-specific 
                skills, of an individual.
            (32) Vocational rehabilitation program.--The term 
        ``vocational rehabilitation program'' means a program assisted 
        under title I of the Rehabilitation Act of 1973 (29 U.S.C. 720 
        et seq.).
            (33) Welfare assistance.--The term ``welfare assistance'' 
        means a Federal, State, or local government cash payment for 
        which eligibility is determined by need or by an income test.
            (34) Welfare recipient.--The term ``welfare recipient'' 
        means an individual who receives welfare assistance.
            (35) Workforce development activities.--The term 
        ``workforce development activities'' means workforce education 
        activities, workforce employment activities, flexible workforce 
        activities, and economic development activities (within a State 
        that is eligible to carry out such activities).
            (36) Workforce education activities.--The term ``workforce 
        education activities'' means the activities described in 
        section 106(b).
            (37) Workforce employment activities.--The term ``workforce 
        employment activities'' means the activities described in 
        paragraphs (2) through (8) of section 106(a), including 
        activities described in section 106(a)(6) provided through a 
        voucher described in section 106(a)(9).
            (38) Workforce preparation activities for at-risk youth.--
        The term ``workforce preparation activities for at-risk youth'' 
        means the activities described in section 241(b), carried out 
        for at-risk youth.

           TITLE I--STATEWIDE WORK- FORCE DEVELOPMENT SYSTEMS

                      Subtitle A--State Provisions

SEC. 101. STATEWIDE WORKFORCE DEVELOPMENT SYSTEMS ESTABLISHED.

    For program year 1998 and each subsequent program year, the 
Governing Board shall make allotments under section 102 to States to 
assist the States in paying for the cost of establishing and carrying 
out activities through statewide workforce development systems, in 
accordance with this title.

SEC. 102. STATE ALLOTMENTS.

    (a) In General.--The Governing Board shall allot to each State with 
a State plan approved under section 104 an amount equal to the total of 
the amounts made available under subparagraphs (A), (B), (C), and (D) 
of subsection (b)(2), adjusted in accordance with subsection (c).
    (b) Allotments Based on Populations.--
            (1) Definitions.--As used in this subsection:
                    (A) Adult recipient of aid to families with 
                dependent children.--The term ``adult recipient of aid 
                to families with dependent children'' means a recipient 
                of aid to families with dependent children under part A 
                of title IV of the Social Security Act (42 U.S.C. 601 
                et seq.) who is not a dependent child (as defined in 
                section 406(a) of such Act (42 U.S.C. 606(a))).
                    (B) Individual in poverty.--The term ``individual 
                in poverty'' means an individual who--
                            (i) is not less than age 18;
                            (ii) is not more than age 64; and
                            (iii) is a member of a family (of 1 or more 
                        members) with an income at or below the poverty 
                        line.
                    (C) Poverty line.--The term ``poverty line'' means 
                the poverty line (as defined by the Office of 
                Management and Budget, and revised annually in 
                accordance with section 673(2) of the Community 
                Services Block Grant Act (42 U.S.C. 9902(2)) applicable 
                to a family of the size involved, using the most recent 
                available data provided by the Bureau of the Census, 
                prior to the program year for which the allotment is 
                made, and applying the definition of poverty used by 
                the Bureau of the Census in compiling the 1990 
                decennial census.
            (2) Calculation.--Except as provided in subsection (c), 
        from the amount reserved under section 134(b)(1), the Governing 
        Board--
                    (A) using funds equal to 60 percent of such 
                reserved amount, shall make available to each State an 
                amount that bears the same relationship to such funds 
                as the total number of individuals who are not less 
                than 15 and not more than 65 (as determined by the 
                Governing Board using the most recent available data 
                provided by the Bureau of the Census, prior to the 
                program year for which the allotment is made) in the 
                State bears to the total number of such individuals in 
                all States;
                    (B) using funds equal to 10 percent of such 
                reserved amount, shall make available to each State an 
                amount that bears the same relationship to such funds 
                as the total number of individuals in poverty in the 
                State bears to the total number of individuals in 
                poverty in all States;
                    (C) using funds equal to 10 percent of such 
                reserved amount, shall make available to each State an 
                amount that bears the same relationship to such funds 
                as the average number of unemployed individuals (as 
                determined by the Secretary of Labor for the most 
                recent 24-month period for which data are available, 
                prior to the program year for which the allotment is 
                made) in the State bears to the average number of 
                unemployed individuals (as so determined) in all 
                States; and
                    (D) using funds equal to 20 percent of such 
                reserved amount, shall make available to each State an 
                amount that bears the same relationship to such funds 
                as the average monthly number of adult recipients of 
                aid to families with dependent children (as determined 
                by the Secretary of Health and Human Services for the 
                most recent 12-month period for which data are 
                available, prior to the program year for which the 
                allotment is made) in the State bears to the average 
                monthly number of adult recipients of aid to families 
                with dependent children (as so determined) in all 
                States.
    (c) Adjustments.--
            (1) Definition.--As used in this subsection, the term 
        ``national average per capita payment'', used with respect to a 
        program year, means the amount obtained by dividing--
                    (A) the total amount allotted to all States under 
                this section for the program year; by
                    (B) the total number of individuals who are not 
                less than 15 and not more than 65 (as determined by the 
                Governing Board using the most recent available data 
                provided by the Bureau of the Census, prior to the 
                program year for which the allotment is made) in all 
                States.
            (2) Minimum allotment.--Except as provided in paragraph 
        (3), no State with a State plan approved under section 104 for 
        a program year shall receive an allotment under this section 
        for the program year in an amount that is less than 0.5 percent 
        of the amount reserved under section 134(b)(1) for the program 
        year.
            (3) Limitation.--No State that receives an increase in an 
        allotment under this section for a program year as a result of 
        the application of paragraph (2) shall receive an allotment 
        under this section for the program year in an amount that is 
        more than the product obtained by multiplying--
                    (A) the total number of individuals who are not 
                less than 15 and not more than 65 (as determined by the 
                Governing Board using the most recent available data 
                provided by the Bureau of the Census, prior to the 
                program year for which the allotment is made) in the 
                State; and
                    (B) the product obtained by multiplying--
                            (i) 1.3; and
                            (ii) the national average per capita 
                        payment for the program year.

SEC. 103. STATE APPORTIONMENT BY ACTIVITY.

    (a) Activities.--From the sum of the funds made available to a 
State through an allotment received under section 102 and the funds 
made available under section
 901(c)(1)(A) of the Social Security Act (42 U.S.C. 1101(c)(1)(A)) to 
carry out this Act for a program year--
            (1) a portion equal to 25 percent of such sum (which 
        portion shall include the amount allotted to the State from 
        funds made available under section 901(c)(1)(A) of the Social 
        Security Act) shall be made available for workforce employment 
        activities;
            (2) a portion equal to 25 percent of such sum shall be made 
        available for workforce education activities; and
            (3) a portion (referred to in this Act as the ``flex 
        account'') equal to 50 percent of such sum shall be made 
        available for flexible workforce activities.
    (b) Recipients.--In making an allotment under section 102 to a 
State, the Governing Board shall make a payment--
            (1) to the Governor of the State for the portion described 
        in subsection (a)(1), and such part of the flex account as the 
        Governor may be eligible to receive, as determined under the 
        State plan of the State submitted under section 104; and
            (2) to the State educational agency of the State for the 
        portion described in subsection (a)(2), and such part of the 
        flex account as the State educational agency may be eligible to 
        receive, as determined under the State plan of the State 
        submitted under section 104.

SEC. 104. STATE PLANS.

    (a) In General.--For a State to be eligible to receive an allotment 
under section 102, the Governor of the State shall submit to the 
Governing Board, and obtain approval of, a single comprehensive State 
workforce development plan (referred to in this section as a ``State 
plan''), outlining a 3-year strategy for the statewide system of the 
State.
    (b) Parts.--
            (1) In general.--The State plan shall contain 3 parts.
            (2) Strategic plan and flexible workforce activities.--The 
        first part of the State plan shall describe a strategic plan 
        for the statewide system, including the flexible workforce 
        activities, and, if appropriate, economic development 
        activities, that are designed to meet the State goals and reach 
        the State benchmarks and are to be carried out with the 
        allotment. The Governor shall develop the first part of the 
        State plan, using procedures that are consistent with the 
        procedures described in subsection (d).
            (3) Workforce employment activities.--The second part of 
        the State plan shall describe the workforce employment 
        activities that are designed to meet the State goals and reach 
        the State benchmarks and are to be carried out with the 
        allotment. The Governor shall develop the second part of the 
        State plan.
            (4) Workforce education activities.--The third part of the 
        State plan shall describe the workforce education activities 
        that are designed to meet the State goals and reach the State 
        benchmarks and are to be carried out with the allotment. The 
        State educational agency of the State shall develop the third 
        part of the State plan.
    (c) Contents of the Plan.--The State plan shall include--
            (1) with respect to the strategic plan for the statewide 
        system--
                    (A) information describing how the State will 
                identify the current and future workforce development 
                needs of the industry sectors most important to the 
                economic competitiveness of the State;
                    (B) information describing how the State will 
                identify the current and future workforce development 
                needs of all segments of the population of the State;
                    (C) information identifying the State goals and 
                State benchmarks and how the goals and benchmarks will 
                make the statewide system relevant and responsive to 
                labor market and education needs at the local level;
                    (D) information describing how the State will 
                coordinate workforce development activities to meet the 
                State goals and reach the State benchmarks;
                    (E) information describing the allocation within 
                the State of the funds made available through the flex 
                account for the State, and how the flexible workforce 
                activities, including school-to-work activities, to be 
                carried out with such funds will be carried out to meet 
                the State goals and reach the State benchmarks;
                    (F) information identifying how the State will 
                obtain the active and continuous participation of 
                business, industry, and labor in the development and 
                continuous improvement of the statewide system;
                    (G) information identifying how any funds that a 
                State receives under this title will be leveraged with 
                other public and private resources to maximize the 
                effectiveness of such resources for all workforce 
                development activities, and expand the participation of 
                business, industry, labor, and individuals in the 
                statewide system;
                    (H) information describing how the State will 
                eliminate duplication in the administration and 
                delivery of services under this Act;
                    (I) information describing the process the State 
                will use to independently evaluate and continuously 
                improve the performance of the statewide system, on a 
                yearly basis, including the development of specific 
                performance indicators to measure progress toward 
                meeting the State goals;
                    (J) an assurance that the funds made available 
                under this title will supplement and not supplant other 
                public funds expended to provide workforce development 
                activities;
                    (K) information identifying the steps that the 
                State will take over the 3 years covered by the plan to 
                establish common data collection and reporting 
                requirements for workforce development activities and 
                vocational rehabilitation program activities;
                    (L) with respect to economic development 
                activities, information--
                            (i) describing the activities to be carried 
                        out with the funds made available under this 
                        title;
                            (ii) describing how the activities will 
                        lead directly to increased earnings of 
                        nonmanagerial employees in the State; and
                            (iii) describing whether the labor 
                        organization, if any, representing the 
                        nonmanagerial employees supports the 
                        activities;
                    (M) the description referred to in subsection 
                (d)(1); and
                    (N)(i) information demonstrating the support of 
                individuals and entities described in subsection (d)(1) 
                for the plan; or
                    (ii) in a case in which the Governor is unable to 
                obtain the support of such individuals and entities as 
                provided in subsection (d)(2), the comments referred to 
                in subsection (d)(2)(B),
            (2) with respect to workforce employment activities, 
        information--
                    (A)(i) identifying and designating substate areas, 
                including urban and rural areas, to which funds 
                received through the allotment will be distributed, 
                which areas shall, to the extent feasible, reflect 
                local labor market areas; or
                    (ii) stating that the State will be treated as a 
                substate area for purposes of the application of this 
                title, if the State receives an increase in an 
                allotment under section 102 for a program year as a 
                result of the application of section 102(c)(2); and
                    (B) describing the basic features of one-stop 
                delivery of core services described in section 
                106(a)(2) in the State, including information 
                regarding--
                            (i) the strategy of the State for 
                        developing fully operational one-stop delivery 
                        of core services described in section 
                        106(a)(2);
                            (ii) the time frame for achieving the 
                        strategy;
                            (iii) the estimated cost for achieving the 
                        strategy;
                            (iv) the steps that the State will take 
                        over the 3 years covered by the plan to provide 
                        individuals with access to one-stop delivery of 
                        core services described in section 106(a)(2);
                            (v) the steps that the State will take over 
                        the 3 years covered by the plan to provide 
                        information through the one-stop delivery to 
                        individuals on the quality of workforce 
                        employment activities, workforce education 
                        activities, and vocational rehabilitation 
                        program activities, provided through the 
                        statewide system;
                            (vi) the steps that the State will take 
                        over the 3 years covered by the plan to link 
                        services provided through the one-stop delivery 
                        with services provided through State welfare 
                        agencies; and
                            (vii) in a case in which the State chooses 
                        to use vouchers to deliver workforce employment 
                        activities, the steps that the State will take 
                        over the 3 years covered by the plan to comply 
                        with the requirements in section 106(a)(9) and 
                        the information required in such section;
                    (C) identifying performance indicators that relate 
                to the State goals, and to the State benchmarks, 
                concerning workforce employment activities;
                    (D) describing the workforce employment activities 
                to be carried out with funds received through the 
                allotment;
                    (E) describing the steps that the State will take 
                over the 3 years covered by the plan to establish a 
                statewide comprehensive labor market information system 
                described in section 303(c) that will be utilized by 
                all the providers of one-stop delivery of core services 
                described in section 106(a)(2), providers of other 
                workforce employment activities, and providers of 
                workforce education activities, in the State;
                    (F) describing the steps that the State will take 
                over the 3 years covered by the plan to establish a job 
                placement accountability system described in section 
                131(d); and
                    (G)(i) describing the steps that the State will 
                take to segregate the amount allotted to the State from 
                funds made available under section 901(c)(1)(A) of the 
                Social Security Act (42 U.S.C. 1101(c)(1)(A)) from the 
                remainder of the portion described in section 
                103(a)(1); and
                    (ii) describing how the State will use the amount 
                allotted to the State from funds made available under 
                such section 901(c)(1)(A) to carry out--
                            (I) the required activities described in 
                        clauses (ii) through (v) of section 
                        106(a)(2)(B) and section 303; and
                            (II) any permissive activities carried out 
                        by the State that consist of--
                                    (aa) the evaluation of programs 
                                provided through the statewide system 
                                of the State;
                                    (bb) the provision of services 
                                through the statewide system for 
                                workers who have received notice of 
                                permanent or impending layoff, or 
                                workers in occupations that are 
                                experiencing limited demand due to 
                                technological change, the impact of 
                                imports, or plant closures; or
                                    (cc) the administration of the work 
                                test for the State unemployment 
                                compensation system and provision of 
                                job finding and placement services for 
                                unemployment insurance claimants; and
            (3) with respect to workforce education activities, 
        information--
                    (A) describing how funds received through the 
                allotment will be allocated among--
                            (i) secondary school vocational education, 
                        or postsecondary and adult vocational 
                        education, or both; and
                            (ii) adult education;
                    (B) identifying performance indicators that relate 
                to the State goals, and to the State benchmarks, 
                concerning workforce education activities;
                    (C) describing the workforce education activities 
                that will be carried out with funds received through 
                the allotment;
                    (D) describing how the State will address the adult 
                education needs of the State;
                    (E) describing how the State will disaggregate data 
                relating to at-risk youth in order to adequately 
                measure the progress of at-risk youth toward 
                accomplishing the results measured by the State goals, 
                and the State benchmarks;
                    (F) describing how the State will adequately 
                address the needs of both at-risk youth who are in 
                school, and out-of-school youth, in alternative 
                education programs that teach to the same challenging 
                academic, occupational, and skill proficiencies as are 
                provided for in-school youth;
                    (G) describing how the workforce education 
                activities described in the State plan and the State 
                allocation of funds received through the allotment for 
                such activities are an integral part of comprehensive 
                efforts of the State to improve education for all 
                students and adults;
                    (H) describing how the State will annually evaluate 
                the effectiveness of the State plan with respect to 
                workforce education activities;
                    (I) describing how the State will address the 
                professional development needs of the State with 
                respect to workforce education activities;
                    (J) describing how the State will provide local 
                educational agencies in the State with technical 
                assistance; and
                    (K) describing how the State will assess the 
                progress of the State in implementing student 
                performance measures.
    (d) Procedure for Development of Part of Plan Relating to Strategic 
Plan.--
            (1) Description of development.--The part of the State plan 
        relating to the strategic plan shall include a description of 
        the manner in which--
                    (A) the Governor;
                    (B) the State educational agency;
                    (C) representatives of business and industry, 
                including representatives of key industry sectors, and 
                of small- and medium-size and large employers, in the 
                State;
                    (D) representatives of labor and workers;
                    (E) local elected officials from throughout the 
                State;
                    (F) the State agency officials responsible for 
                vocational education;
                    (G) the State agency officials responsible for 
                postsecondary education;
                    (H) the State agency officials responsible for 
                adult education;
                    (I) the State agency officials responsible for 
                vocational rehabilitation;
                    (J) such other State agency officials, including 
                officials responsible for economic development and 
                employment, as the Governor may designate;
                    (K) representatives of elected officials of tribal 
                governments;
                    (L) the representative of the Veterans' Employment 
                Training Service assigned to the State under section 
                4103 of title 38, United States Code; and
                    (M) other appropriate officials, including members 
                of the State workforce development board described in 
                section 105, if the State has established such a board;
        collaborated in the development of such part of the plan.
            (2) Failure to obtain support.--If, after a reasonable 
        effort, the Governor is unable to obtain the support of the 
        individuals and entities described in paragraph (1) for the 
        strategic plan the Governor shall--
                    (A) provide such individuals and entities with 
                copies of the strategic plan;
                    (B) allow such individuals and entities to submit 
                to the Governor, not later than the end of the 30-day 
                period beginning on the date on which the Governor 
                provides such individuals and entities with copies of 
                such plan under subparagraph (A), comments on such 
                plan; and
                    (C) include any such comments in such plan.
    (e) Approval.--The Governing Board shall approve a State plan if 
the Governing Board--
            (1) determines that the plan contains the information 
        described in subsection (c);
            (2) determines that the State has prepared the plan in 
        accordance with the requirements of this section, including the 
        requirements relating to development of any part of the plan; 
        and
            (3) has negotiated State benchmarks with the State in 
        accordance with section 131(c).
    (f) No Entitlement to a Service.--Nothing in this Act shall be 
construed to provide any individual with an entitlement to a service 
provided under this Act.

SEC. 105. STATE WORKFORCE DEVELOPMENT BOARDS.

    (a) Establishment.--A Governor of a State that receives an 
allotment under section 102 may establish a State workforce development 
board--
            (1) on which a majority of the members are representatives 
        of business and industry;
            (2) on which not less than 25 percent of the members shall 
        be representatives of labor, workers, and community-based 
        organizations;
            (3) that shall include representatives of veterans;
            (4) that shall include a representative of the State 
        educational agency and a representative from the State agency 
        responsible for vocational rehabilitation;
            (5) that may include any other individual or entity that 
        participates in the collaboration described in section 
        104(d)(1); and
            (6) that may include any other individual or entity the 
        Governor may designate.
    (b) Chairperson.--The State workforce development board shall 
select a chairperson from among the members of the board who are 
representatives of business and industry.
    (c) Functions.--The functions of the State workforce development 
board shall include--
            (1) advising the Governor on the development of the 
        statewide system, the State plan described in section 104, and 
        the State goals and State benchmarks;
            (2) assisting in the development of specific performance 
        indicators to measure progress toward meeting the State goals 
        and reaching the State benchmarks and providing guidance on how 
        such progress may be improved;
            (3) serving as a link between business, industry, labor, 
        and the statewide system;
            (4) assisting the Governor in preparing the annual report 
        to the Governing Board regarding progress in reaching the State 
        benchmarks, as described in section 131(a);
            (5) receiving and commenting on the State plan developed 
        under section 101 of the Rehabilitation Act of 1973 (29 U.S.C. 
        721);
            (6) assisting the Governor in developing the statewide 
        comprehensive labor market information system described in 
        section 303(c) to provide information that will be utilized by 
        all the providers of one-stop delivery of core services 
        described in section 106(a)(2), providers of other workforce 
        employment activities, and providers of workforce education 
        activities, in the State; and
            (7) assisting in the monitoring and continuous improvement 
        of the performance of the statewide system, including 
        evaluation of the effectiveness of workforce development 
        activities funded under this Act.
SEC. 106. USE OF FUNDS.

    (a) Workforce Employment Activities.--
            (1) In general.--Funds made available to a State under this 
        title to carry out workforce employment activities through a 
        statewide system--
                    (A) shall be used to carry out the activities 
                described in paragraphs (2), (3), and (4); and
                    (B) may be used to carry out the activities 
                described in paragraphs (5), (6), (7), and (8), 
                including providing activities described in paragraph 
                (6) through vouchers described in paragraph (9).
            (2) One-stop delivery of core services.--
                    (A) Access.--The State shall use a portion of the 
                funds described in paragraph (1) to establish a means 
                of providing access to the statewide system through 
                core services described in subparagraph (B) available--
                            (i) through multiple, connected access 
                        points, linked electronically or otherwise;
                            (ii) through a network that assures 
                        participants that such core services will be 
                        available regardless of where the participants 
                        initially enter the statewide system;
                            (iii) at not less than 1 physical location 
                        in each substate area of the State; or
                            (iv) through some combination of the 
                        options described in clauses (i), (ii), and 
                        (iii).
                    (B) Core services.--The core services referred to 
                in subparagraph (A) shall, at a minimum, include--
                            (i) outreach, intake, and orientation to 
                        the information and other services available 
                        through one-stop delivery of core services 
                        described in this subparagraph;
                            (ii) initial assessment of skill levels, 
                        aptitudes, abilities, and supportive service 
                        needs;
                            (iii) job search and placement assistance 
                        and, where appropriate, career counseling;
                            (iv) customized screening and referral of 
                        qualified applicants to employment;
                            (v) provision of accurate information 
                        relating to local labor market conditions, 
                        including employment profiles of growth 
                        industries and occupations within a substate 
                        area, the educational and skills requirements 
                        of jobs in the industries and occupations, and 
                        the earnings potential of the jobs;
                            (vi) provision of accurate information 
                        relating to the quality and availability of 
                        other workforce employment activities, 
                        workforce education activities, and vocational 
                        rehabilitation program activities;
                            (vii) provision of information regarding 
                        how the substate area is performing on the 
                        State benchmarks;
                            (viii) provision of initial eligibility 
                        information on forms of public financial 
                        assistance that may be available in order to 
                        enable persons to participate in workforce 
                        employment activities, workforce education 
                        activities, or vocational rehabilitation 
                        program activities; and
                            (ix) referral to other appropriate 
                        workforce employment activities, workforce 
                        education activities, and vocational 
                        rehabilitation employment activities.
            (3) Labor market information system.--The State shall use a 
        portion of the funds described in paragraph (1) to establish a 
        statewide comprehensive labor market information system 
        described in section 303(c).
            (4) Job placement accountability system.--The State shall 
        use a portion of the funds described in paragraph (1) to 
        establish a job placement accountability system described in 
        section 131(d).
            (5) Permissible one-stop delivery activities.--The State 
        may provide, through one-stop delivery--
                    (A) co-location of services related to workforce 
                development activities, such as unemployment insurance, 
                vocational rehabilitation program activities, welfare 
                assistance, veterans' employment services, or other 
                public assistance;
                    (B) intensive services for participants who are 
                unable to obtain employment through the core services 
                described in paragraph (2)(B), as determined by the 
                State; and
                    (C) dissemination to employers of information on 
                activities carried out through the statewide system.
            (6) Other permissible activities.--The State may use a 
        portion of the funds described in paragraph (1) to provide 
        services through the statewide system that may include--
                    (A) on-the-job training;
                    (B) occupational skills training;
                    (C) entrepreneurial training;
                    (D) training to develop work habits to help 
                individuals obtain and retain employment;
                    (E) customized training conducted with a commitment 
                by an employer or group of employers to employ an 
                individual after successful completion of the training;
                    (F) rapid response assistance for dislocated 
                workers;
                    (G) skill upgrading and retraining for persons not 
                in the workforce;
                    (H) preemployment and work maturity skills training 
                for youth;
                    (I) connecting activities that organize consortia 
                of small- and medium-size businesses to provide work-
                based learning opportunities for youth participants in 
                school-to-work programs;
                    (J) programs for adults that combine workplace 
                training with related instruction;
                    (K) services to assist individuals in attaining 
                certificates of mastery with respect to industry-based 
                skill standards;
                    (L) case management services;
                    (M) supportive services, such as transportation and 
                financial assistance, that enable individuals to 
                participate in the statewide system; and
                    (N) followup services for participants who are 
                placed in unsubsidized employment.
            (7) Staff development and training.--The State may use a 
        portion of the funds described in paragraph (1) for the 
        development and training of staff of providers of one-stop 
        delivery of core services described in paragraph (2), including 
        development and training relating to principles of quality 
        management.
            (8) Incentive grant awards.--The State may use a portion of 
        the funds described in paragraph (1) to award incentive grants 
        to substate areas that reach or exceed the State benchmarks 
        established under section 131(c), with an emphasis on 
        benchmarks established under section 131(c)(3). A substate area 
        that receives such a grant may use the funds made available 
        through the grant to carry out any workforce development 
        activities authorized under this Act.
            (9) Vouchers.--
                    (A) In general.--A State may deliver some or all of 
                the workforce employment activities described in 
                paragraph (6) that are provided under this title 
                through a system of vouchers administered through the 
                one-stop delivery of core services described in 
                paragraph (2) in the State.
                    (B) Eligibility requirements.--
                            (i) In general.--A State that chooses to 
                        deliver the activities described in 
                        subparagraph (A) through vouchers shall 
                        indicate in the State plan described in section 
                        104 the criteria that will be used to 
                        determine--
                                    (I) which workforce employment 
                                activities described in paragraph (6) 
                                will be delivered through the voucher 
                                system;
                                    (II) eligibility requirements for 
                                participants to receive the vouchers 
                                and the amount of funds that 
                                participants will be able to access 
                                through the voucher system; and
                                    (III) which employment, training, 
                                and education providers are eligible to 
                                receive payment through the vouchers.
                            (ii) Considerations.--In establishing State 
                        criteria for service providers eligible to 
                        receive payment through the vouchers under 
                        clause (i)(III), the State shall take into 
                        account industry-recognized skills standards 
                        promoted by the National Skills Standards 
                        Board.
                    (C) Accountability requirements.--A State that 
                chooses to deliver the activities described in 
                paragraph (6) through vouchers shall indicate in the 
                State plan--
                            (i) information concerning how the State 
                        will utilize the statewide comprehensive labor 
                        market information system described in section 
                        303(c) and the job placement accountability 
                        system established under section 131(d) to 
                        provide timely and accurate information to 
                        participants about the performance of eligible 
                        employment, training, and education providers;
                            (ii) other information about the 
                        performance of eligible providers of services 
                        that the State believes is necessary for 
                        participants receiving the vouchers to make 
                        informed career choices; and
                            (iii) the timeframe in which the 
                        information developed under clauses (i) and 
                        (ii) will be widely available through the one-
                        stop delivery of core services described in 
                        paragraph (2) in the State.
    (b) Workforce Education Activities.--The State educational agency 
shall use the funds made available to the State educational agency 
under this title for workforce education activities to carry out, 
through the statewide system, activities that include--
            (1) integrating academic and vocational education;
            (2) linking secondary education (as determined under State 
        law) and postsecondary education, including implementing tech-
        prep programs;
            (3) providing career guidance and counseling for students 
        at the earliest possible age, including the provision of career 
        awareness, exploration, and guidance information to students 
        and their parents that is, to the extent possible, in a 
        language and form that the students and their parents 
        understand;
            (4) providing literacy and basic education services for 
        adults and out-of-school youth, including adults and out-of-
        school youth in correctional institutions;
            (5) providing programs for adults and out-of-school youth 
        to complete their secondary education;
            (6) expanding, improving, and modernizing quality 
        vocational education programs; and
            (7) improving access to quality vocational education 
        programs for at-risk youth.
    (c) Fiscal Requirements for Workforce Education Activities.--
            (1) Supplement not supplant.--Funds made available under 
        this title for workforce education activities shall supplement, 
        and may not supplant, other public funds expended to carry out 
        workforce education activities.
            (2) Maintenance of effort.--
                    (A) Determination.--No payments shall be made under 
                this title for any program year to a State for 
                workforce education activities unless the Governing 
                Board determines that the fiscal effort per student or 
                the aggregate expenditures of such State for workforce 
                education for the program year preceding the program 
                year for which the determination is made, equaled or 
                exceeded such effort or expenditures for workforce 
                education for the second program year preceding the 
                fiscal year for which the determination is made.
                    (B) Waiver.--The Governing Board may waive the 
                requirements of this section (with respect to not more 
                than 5 percent of expenditures by any State educational 
                agency) for 1 program year only, on making a 
                determination that such waiver would be equitable due 
                to exceptional or uncontrollable circumstances 
                affecting the ability of the applicant to meet such 
                requirements, such as a natural disaster or an 
                unforeseen and precipitous decline in financial 
                resources. No level of funding permitted under such a 
                waiver may be used as the basis for computing the 
                fiscal effort or aggregate expenditures required under 
                this section for years subsequent to the year covered 
                by such waiver. The fiscal effort or aggregate 
                expenditures for the subsequent years shall be computed 
                on the basis of the level of funding that would, but 
                for such waiver, have been required.
    (d) Flexible Workforce Activities.--
            (1) Core flexible workforce activities.--The State shall 
        use a portion of the funds made available to the State under 
        this title through the flex account to carry out school-to-work 
        activities through the statewide system, except that any State 
        that received a grant under subtitle B of title II of the 
        School-to-Work Opportunities Act of 1994 (20 U.S.C. 6141 et 
        seq.) shall use such portion to support the continued 
        development of the statewide School-to-Work Opportunities 
        system of the State through the continuation of activities that 
        are carried out in accordance with the terms of such grant.
            (2) Permissible flexible workforce activities.--The State 
        may use a portion of the funds made available to the State 
        under this title through the flex account--
                    (A) to carry out workforce employment activities 
                through the statewide system; and
                    (B) to carry out workforce education activities 
                through the statewide system.
    (e) Economic Development Activities.--In the case of a State that 
meets the requirements of section 118(c), the State may use a portion 
of the funds made available to the State under this title through the 
flex account to supplement other funds provided by the State or private 
sector--
            (1) to provide customized assessments of the skills of 
        workers and an analysis of the skill needs of employers;
            (2) to assist consortia of small- and medium-size employers 
        in upgrading the skills of their workforces;
            (3) to provide productivity and quality improvement 
        training programs for the workforces of small- and medium-size 
        employers;
            (4) to provide recognition and use of voluntary industry-
        developed skills standards by employers, schools, and training 
        institutions;
            (5) to carry out training activities in companies that are 
        developing modernization plans in conjunction with State 
        industrial extension service offices; and
            (6) to provide on-site, industry-specific training programs 
        supportive of industrial and economic development;
through the statewide system.
    (f) Limitations.--
            (1) Wages.--No funds provided under this title shall be 
        used to pay the wages of incumbent workers during their 
        participation in economic development activities provided 
        through the statewide system.
            (2) Relocation.--No funds provided under this title shall 
        be used or proposed for use to encourage or induce the 
        relocation, of a business or part of a business, that results 
        in a loss of employment for any employee of such business at 
        the original location.
            (3) Training and assessments following relocation.--No 
        funds provided under this title shall be used for customized or 
        skill training, on-the-job training, or company specific 
        assessments of job applicants or workers, for any business or 
        part of a business, that has relocated, until 120 days after 
        the date on which such business commences operations at the new 
        location, if the relocation of such business or part of a 
        business, results in a loss of employment for any worker of 
        such business at the original location.
    (g) Limitations on Participants.--
            (1) Diploma or equivalent.--
                    (A) In general.--No individual may participate in 
                workforce employment activities described in 
                subparagraph (A), (B), (C), (E), (G), (J), or (K) of 
                section 106(a)(6) until the individual has obtained a 
                secondary school diploma or its recognized equivalent, 
                or is enrolled in a program or course of study to 
                obtain a secondary school diploma or its recognized 
                equivalent.
                    (B) Exception.--Nothing in subparagraph (A) shall 
                prevent participation in workforce employment 
                activities described under subparagraph (A), (B), (C), 
                (E), (G), (J), or (K) of section 106(a)(6) by 
                individuals who, after testing and in the judgment of 
                medical, psychiatric, academic, or other appropriate 
                professionals, lack the requisite capacity to complete 
                successfully a course of study that would lead to a 
                secondary school diploma or its recognized equivalent.
            (2) Services.--
                    (A) Referral.--If an individual who has not 
                obtained a secondary school diploma or its recognized 
                equivalent applies to participate in workforce 
                employment activities described under subparagraph (A), 
                (B), (C), (E), (G), (J), or (K) of section 106(a)(6), 
                such individual shall be referred to State approved 
                adult education services that provide instruction 
                designed to help such individual obtain a secondary 
                school diploma or its recognized equivalent.
                    (B) State provision of services.--Notwithstanding 
                any other provision of this Act, a State may use funds 
                made available under section 103(a)(1) to provide State 
                approved adult education services that provide 
                instruction designed to help individuals obtain a 
                secondary school diploma or its recognized equivalent, 
                to individuals who--
                            (i) are seeking to participate in workforce 
                        employment activities described under 
                        subparagraph (A), (B), (C), (E), (G), (J), or 
                        (K) of section 106(a)(6); and
                            (ii) are otherwise unable to obtain such 
                        services.

                      Subtitle B--Local Provisions

SEC. 111. LOCAL APPORTIONMENT BY ACTIVITY.

    (a) Workforce Employment Activities.--
            (1) In general.--The sum of the funds made available to a 
        State for any program year under paragraphs (1) and (3) of 
        section 103(a) for workforce employment activities shall be 
        made available to the Governor of such State for use in 
        accordance with paragraph (2).
            (2) Distribution.--Of the sum described in paragraph (1), 
        for a program year--
                    (A) 25 percent shall be reserved by the Governor to 
                carry out workforce employment activities through the 
                statewide system; and
                    (B) 75 percent shall be distributed by the Governor 
                to local entities to carry out workforce employment 
                activities through the statewide system, based on--
                            (i) such factors as the relative 
                        distribution among substate areas of 
                        individuals who are not less than 15 and not 
                        more than 65, individuals in poverty, 
                        unemployed individuals, and adult recipients of 
                        aid to families with dependent children, as 
                        determined using the definitions specified and 
                        the determinations described in section 102(b); 
                        and
                            (ii) such additional factors as the 
                        Governor (in consultation with local 
                        partnerships described in section 118(a) or, 
                        where established, local workforce development 
                        boards described in section 118(b)), determines 
                        to be necessary.
    (b) Workforce Education Activities.--
            (1) In general.--The sum of the funds made available to a 
        State for any program year under paragraphs (2) and (3) of 
        section 103(a) for workforce education activities shall be made 
        available to the State educational agency serving such State 
        for use in accordance with paragraph (2).
            (2) Distribution.--Of the sum described in paragraph (1), 
        for a program year--
                    (A) 20 percent shall be reserved by the State 
                educational agency to carry out statewide workforce 
                education activities through the statewide system, of 
                which not more than 5 percent of such 20 percent may be 
                used for administrative expenses; and
                    (B) 80 percent shall be distributed by the State 
                educational agency to entities eligible for financial 
                assistance under section 112, 113, or 114, to carry out 
                workforce education activities through the statewide 
                system.
            (3) State determinations.--From the amount available to a 
        State educational agency under paragraph (2)(B) for a program 
        year, such agency shall determine the percentage of such amount 
        that will be distributed in accordance with sections 112, 113, 
        and 114 for such year for workforce education activities in 
        such State in each of the following areas:
                    (A) Secondary school vocational education, or 
                postsecondary and adult vocational education, or both; 
                and
                    (B) Adult education.
    (c) Special Rule.--Nothing in this title shall be construed to 
prohibit any individual or agency in a State (other than the State 
educational agency) that is administering workforce education 
activities on the day preceding the date of enactment of this Act from 
continuing to administer such activities under this title.

SEC. 112. DISTRIBUTION FOR SECONDARY SCHOOL VOCATIONAL EDUCATION.

    (a) Allocation.--Except as otherwise provided in this section and 
section 115, each State educational agency shall distribute the portion 
of the funds made available for any program year (from funds made 
available for the corresponding fiscal year, as determined under 
section 134(c)) by such agency for secondary school vocational 
education under section 111(b)(3)(A) to local educational agencies 
within the State as follows:
            (1) Seventy percent.--From 70 percent of such portion, each 
        local educational agency shall be allocated an amount that 
        bears the same relationship to such 70 percent as the amount 
        such local educational agency was allocated under section 1124 
        of the Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 6333) for the preceding fiscal year bears to the total 
        amount received under such section by all local educational 
        agencies in the State for such year.
            (2) Twenty percent.--From 20 percent of such portion, each 
        local educational agency shall be allocated an amount that 
        bears the same relationship to such 20 percent as the number of 
        students with disabilities who have individualized education 
        programs under section 614(a)(5) of the Individuals with 
        Disabilities Education Act (20 U.S.C. 1414(a)(5)) served by 
        such local educational agency for the preceding fiscal year 
        bears to the total number of such students served by all local 
        educational agencies in the State for such year.
            (3) Ten percent.--From 10 percent of such portion, each 
        local educational agency shall be allocated an amount that 
        bears the same relationship to such 10 percent as the number of 
        students enrolled in schools and adults enrolled in training 
        programs under the jurisdiction of such local educational 
        agency for the preceding fiscal year bears to the number of 
        students enrolled in schools and adults enrolled in training 
        programs under the jurisdiction of all local educational 
        agencies in the State for such year.
    (b) Minimum Allocation.--
            (1) In general.--Except as provided in paragraph (2), no 
        local educational agency shall receive an allocation under 
        subsection (a) unless the amount allocated to such agency under 
        subsection (a) is not less than $15,000. A local educational 
        agency may enter into a consortium with other local educational 
        agencies for purposes of meeting the minimum allocation 
        requirement of this paragraph.
            (2) Waiver.--The State educational agency may waive the 
        application of paragraph (1) in any case in which the local 
        educational agency--
                    (A) is located in a rural, sparsely-populated area; 
                and
                    (B) demonstrates that such agency is unable to 
                enter into a consortium for purposes of providing 
                services under this section.
            (3) Redistribution.--Any amounts that are not allocated by 
        reason of paragraph (1) or (2) shall be redistributed to local 
        educational agencies that meet the requirements of paragraph 
        (1) or (2) in accordance with the provisions of this section.
    (c) Limited Jurisdiction Agencies.--
            (1) In general.--In applying the provisions of subsection 
        (a), no State educational agency receiving assistance under 
        this title shall allocate funds to a local educational agency 
        that serves only elementary schools, but shall distribute such 
        funds to the local educational agency or regional educational 
        agency that provides secondary school services to secondary 
        school students in the same attendance area.
            (2) Special rule.--The amount to be allocated under 
        paragraph (1) to a local educational agency that has 
        jurisdiction only over secondary schools shall be determined 
        based on the number of students that entered such secondary 
        schools in the previous year from the elementary schools 
        involved.
    (d) Allocations to Area Vocational Education Schools and 
Educational Service Agencies.--
            (1) In general.--Each State educational agency shall 
        distribute the portion of funds made available for any program 
        year by such agency for secondary school vocational education 
        under section 111(b)(3)(A) to the appropriate area vocational 
        education school or educational service agency in any case in 
        which--
                    (A) the area vocational education school or 
                educational service agency, and the local educational 
                agency concerned--
                            (i) have formed or will form a consortium 
                        for the purpose of receiving funds under this 
                        section; or
                            (ii) have entered into or will enter into a 
                        cooperative arrangement for such purpose; and
                    (B)(i) the area vocational education school or 
                educational service agency serves an approximately 
                equal or greater proportion of students who are 
                individuals with disabilities or are low-income than 
                the proportion of such students attending the secondary 
                schools under the jurisdiction of all of the local 
                educational agencies sending students to the area 
                vocational education school or the educational service 
                agency; or
                    (ii) the area vocational education school, 
                educational service agency, or local educational agency 
                demonstrates that the vocational education school or 
                educational service agency is unable to meet the 
                criterion described in clause (i) due to the lack of 
                interest by students described in clause (i) in 
                attending vocational education programs in that area 
                vocational education school or educational service 
                agency.
            (2) Allocation basis.--If an area vocational education 
        school or educational service agency meets the requirements of 
        paragraph (1), then--
                    (A) the amount that will otherwise be distributed 
                to the local educational agency under this section 
                shall be allocated to the area vocational education 
                school, the educational service agency, and the local 
                educational agency, based on each school's or agency's 
                relative share of students described in paragraph 
                (1)(B)(i) who are attending vocational education 
                programs (based, if practicable, on the average 
                enrollment for the prior 3 years); or
                    (B) such amount may be allocated on the basis of an 
                agreement between the local educational agency and the 
                area vocational education school or educational service 
                agency.
            (3) State determination.--
                    (A) In general.--For the purposes of this 
                subsection, the State educational agency may determine 
                the number of students who are low-income on the basis 
                of--
                            (i) eligibility for--
                                    (I) free or reduced-price meals 
                                under the National School Lunch Act (7 
                                U.S.C. 1751 et seq.);
                                    (II) the program for aid to 
                                families with dependent children under 
                                part A of title IV of the Social 
                                Security Act (42 U.S.C. 601 et seq.);
                                    (III) benefits under the Food Stamp 
                                Act of 1977 (7 U.S.C. 2011 et seq.); or
                                    (IV) services under title I of the 
                                Elementary and Secondary Education Act 
                                of 1965 (20 U.S.C. 6301 et seq.); and
                            (ii) another index of economic status, 
                        including an estimate of such index, if the 
                        State educational agency demonstrates to the 
                        satisfaction of the Governing Board that such 
                        index is a more representative means of 
                        determining such number.
                    (B) Data.--If a State educational agency elects to 
                use more than 1 factor described in subparagraph (A) 
                for purposes of making the determination described in 
                such subparagraph, the State educational agency shall 
                ensure that the data used is not duplicative.
            (4) Appeals procedure.--The State educational agency shall 
        establish an appeals procedure for resolution of any dispute 
        arising between a local educational agency and an area 
        vocational education school or an educational service agency 
        with respect to the allocation procedures described in this 
        section, including the decision of a local educational agency 
        to leave a consortium.
            (5) Special rule.--Notwithstanding the provisions of 
        paragraphs (1), (2), (3), and (4), any local educational agency 
        receiving an allocation that is not sufficient to conduct a 
        secondary school vocational education program of sufficient 
        size, scope, and quality to be effective may--
                    (A) form a consortium or enter into a cooperative 
                agreement with an area vocational education school or 
                educational service agency offering secondary school 
                vocational education programs of sufficient size, 
                scope, and quality to be effective and that are 
                accessible to students who are individuals with 
                disabilities or are low-income, and are served by such 
                local educational agency; and
                    (B) transfer such allocation to the area vocational 
                education school or educational service agency.
    (e) Special Rule.--Each State educational agency distributing funds 
under this section shall treat a secondary school funded by the Bureau 
of Indian Affairs within the State as if such school were a local 
educational agency within the State for the purpose of receiving a 
distribution under this section.

SEC. 113. DISTRIBUTION FOR POSTSECONDARY AND ADULT VOCATIONAL 
              EDUCATION.

    (a) Allocation.--
            (1) In general.--Except as provided in subsection (b) and 
        section 115, each State educational agency, using the portion 
        of the funds made available for any program year by such agency 
        for postsecondary and adult vocational education under section 
        111(b)(3)(A)--
                    (A) shall reserve funds to carry out subsection 
                (d); and
                    (B) shall distribute the remainder to eligible 
                institutions or consortia of the institutions within 
                the State.
            (2) Formula.--Each such eligible institution or consortium 
        shall receive an amount for the program year (from funds made 
        available for the corresponding fiscal year, as determined 
        under section 134(c)) from such remainder bears the same 
        relationship to such remainder as the number of individuals who 
        are Pell Grant recipients or recipients of assistance from the 
        Bureau of Indian Affairs and are enrolled in programs offered 
        by such institution or consortium for the preceding fiscal year 
        bears to the number of all such individuals who are enrolled in 
        any such program within the State for such preceding year.
            (3) Consortium requirements.--In order for a consortium of 
        eligible institutions described in paragraph (1) to receive 
        assistance pursuant to such paragraph such consortium shall 
        operate joint projects that--
                    (A) provide services to all postsecondary 
                institutions participating in the consortium; and
                    (B) are of sufficient size, scope, and quality to 
                be effective.
    (b) Waiver for More Equitable Distribution.--The Governing Board 
may waive the application of subsection (a) in the case of any State 
educational agency that submits to the Governing Board an application 
for such a waiver that--
            (1) demonstrates that the formula described in subsection 
        (a) does not result in a distribution of funds to the 
        institutions or consortia within the State that have the 
        highest numbers of low-income individuals and that an 
        alternative formula will result in such a distribution; and
            (2) includes a proposal for an alternative formula that may 
        include criteria relating to the number of individuals 
        attending the institutions or consortia within the State who--
                    (A) receive need-based postsecondary financial aid 
                provided from public funds;
                    (B) are members of families participating in the 
                program of aid to families with dependent children 
                under part A of title IV of the Social Security Act (42 
                U.S.C. 601 et seq.);
                    (C) are enrolled in postsecondary educational 
                institutions that--
                            (i) are funded by the State;
                            (ii) do not charge tuition; and
                            (iii) serve only low-income students;
                    (D) are enrolled in programs serving low-income 
                adults; or
                    (E) are Pell Grant recipients.
    (c) Minimum Amount.--
            (1) In general.--No distribution of funds provided to any 
        institution or consortium for a program year under this section 
        shall be for an amount that is less than $50,000.
            (2) Redistribution.--Any amounts that are not distributed 
        by reason of paragraph (1) shall be redistributed to eligible 
        institutions or consortia in accordance with the provisions of 
        this section.
    (d) Special Rule for Criminal Offenders.--Each State educational 
agency shall distribute the funds reserved under subsection (a)(1)(A) 
to 1 or more State corrections agencies to enable the State corrections 
agencies to administer vocational education programs for juvenile and 
adult criminal offenders in correctional institutions in the State, 
including correctional institutions operated by local authorities.
    (e) Definition.--For the purposes of this section--
            (1) the term ``eligible institution'' means an institution 
        of higher education, a local educational agency serving adults, 
        or an area vocational education school serving adults that 
        offers or will offer a program that seeks to receive financial 
        assistance under this section;
            (2) the term ``institution of higher education'', 
        notwithstanding section 427(b)(2) of the Higher Education 
        Amendments of 1992 (20 U.S.C. 1085 note), has the meaning given 
        the term in section 435(b) of the Higher Education Act of 1965 
        as such section was in effect on July 22, 1992;
            (3) the term ``low-income'', used with respect to a person, 
        means a person who is determined under guidelines developed by 
        the Governing Board to be low-income, using the most recent 
        available data provided by the Bureau of the Census, prior to 
        the determination; and
            (4) the term ``Pell Grant recipient'' means a recipient of 
        financial aid under subpart 1 of part A of title IV of the 
        Higher Education Act of 1965 (20 U.S.C. 1070a et seq.).

SEC. 114. DISTRIBUTION FOR ADULT EDUCATION.

    (a) In General.--Except as provided in subsection (b)(3), from the 
amount made available by a State educational agency for adult education 
under section 111(b)(3)(B) for a program year, such agency shall award 
grants, on a competitive basis, to local educational agencies, 
correctional education agencies, community-based organizations of 
demonstrated effectiveness, volunteer literacy organizations, public or 
private nonprofit agencies, postsecondary educational institutions, 
public housing authorities, and other nonprofit institutions that have 
the ability to provide literacy services to adults and families, or 
consortia of agencies, organizations, or institutions described in this 
subsection, to enable such agencies, organizations, institutions, and 
consortia to establish or expand adult education programs.
    (b) Grant Requirements.--
            (1) Access.--Each State educational agency making funds 
        available for any program year for adult education under 
        section 111(b)(3)(B) shall ensure that the entities described 
        in subsection (a) will be provided direct and equitable access 
        to all Federal funds provided under this section.
            (2) Considerations.--In awarding grants under this section, 
        the State educational agency shall consider--
                    (A) the past effectiveness of applicants in 
                providing services (especially with respect to 
                recruitment and retention of educationally 
                disadvantaged adults and the learning gains 
                demonstrated by such adults);
                    (B) the degree to which an applicant will 
                coordinate and utilize other literacy and social 
                services available in the community; and
                    (C) the commitment of the applicant to serve 
                individuals in the community who are most in need of 
                literacy services.
            (3) Consortia.--A State educational agency may award a 
        grant under subsection (a) to a consortium that includes an 
        entity described in subsection (a) and a for-profit agency, 
        organization, or institution, if such agency, organization, or 
        institution--
                    (A) can make a significant contribution to carrying 
                out the purposes of this Act; and
                    (B) enters into a contract with the entity 
                described in subsection (a) for the purpose of 
                establishing or expanding adult education programs.
    (c) Local Administrative Costs Limits.--
            (1) In general.--Except as provided in paragraph (2), of 
        the funds provided under this section by a State educational 
        agency to an agency, organization, institution, or consortium 
        described in subsection (a), at least 95 percent shall be 
        expended for provision of adult education instructional 
        activities. The remainder shall be used for planning, 
        administration, personnel development, and interagency 
        coordination.
            (2) Special rule.--In cases where the cost limits described 
        in paragraph (1) will be too restrictive to allow for adequate 
        planning, administration, personnel development, and 
        interagency coordination supported under this section, the 
        State educational agency shall negotiate with the agency, 
        organization, institution, or consortium described in 
        subsection (a) in order to determine an adequate level of funds 
        to be used for noninstructional purposes.
SEC. 115. SPECIAL RULE FOR MINIMAL ALLOCATION.

    (a) General Authority.--For any program year for which a minimal 
amount is made available by a State educational agency for distribution 
under section 112 or 113 such agency may, notwithstanding the 
provisions of section 112 or 113, respectively, in order to make a more 
equitable distribution of funds for programs serving the highest 
numbers of low-income individuals (as defined in section 113(e)), 
distribute such minimal amount--
            (1) on a competitive basis; or
            (2) through any alternative method determined by the State 
        educational agency.
    (b) Minimal Amount.--For purposes of this section, the term 
``minimal amount'' means not more than 15 percent of the total amount 
made available by the State educational agency under section 
111(b)(3)(A) for section 112 or 113, respectively, for such program 
year.

SEC. 116. REDISTRIBUTION.

    (a) In General.--In any program year that an entity receiving 
financial assistance under section 112 or 113 does not expend all of 
the amounts distributed to such entity for such year under section 112 
or 113, respectively, such entity shall return any unexpended amounts 
to the State educational agency for distribution under section 112 or 
113, respectively.
    (b) Redistribution of Amounts Returned Late in an Program Year.--In 
any program year in which amounts are returned to the State educational 
agency under subsection (a) for programs described in section 112 or 
113 and the State educational agency is unable to redistribute such 
amounts according to section 112 or 113, respectively, in time for such 
amounts to be expended in such program year, the State educational 
agency shall retain such amounts for distribution in combination with 
amounts provided under such section for the following program year.
SEC. 117. LOCAL APPLICATION FOR WORKFORCE EDUCATION ACTIVITIES.

    (a) In General.--
            (1) In general.--Each eligible entity desiring financial 
        assistance under this title for workforce education activities 
        shall submit an application to the State educational agency at 
        such time, in such manner and accompanied by such information 
        as such agency (in consultation with such other educational 
        entities as the State educational agency determines to be 
        appropriate) may require. Such application shall cover the same 
        period of time as the period of time applicable to the State 
        workforce development plan.
            (2) Definition.--For the purpose of this section the term 
        ``eligible entity'' means an entity eligible for financial 
        assistance under section 112, 113, or 114 from a State 
        educational agency.
    (b) Contents.--Each application described in subsection (a) shall, 
at a minimum--
            (1) describe how the workforce education activities 
        required under section 106(b), and other workforce education 
        activities, will be carried out with funds received under this 
        title;
            (2) describe how the activities to be carried out relate to 
        meeting the State goals, and reaching the State benchmarks, 
        concerning workforce education activities;
            (3) describe how the activities to be carried out are an 
        integral part of the comprehensive efforts of the eligible 
        entity to improve education for all students and adults;
            (4) describe the process that will be used to independently 
        and continuously improve the performance of the eligible 
        entity; and
            (5) describe how the eligible entity will coordinate the 
        activities of the entity with the activities of the local 
        workforce development board, if any, in the substate area.

SEC. 118. LOCAL PARTNERSHIPS, AGREEMENTS, AND WORKFORCE DEVELOPMENT 
              BOARDS.

    (a) Local Agreements.--
            (1) In general.--After a Governor submits the State plan 
        described in section 104 to the Governing Board, the Governor 
        shall negotiate and enter into a local agreement regarding the 
        workforce employment activities, school-to-work activities, and 
        economic development activities (within a State that is 
        eligible to carry out such activities, as described in 
        subsection (c)) to be carried out in each substate area in the 
        State with local partnerships (or, where established, local 
        workforce development boards described in subsection (b)).
            (2) Local partnerships.--
                    (A) In general.--A local partnership referred to in 
                paragraph (1) shall be established by the local chief 
                elected official, in accordance with subparagraphs (B) 
                and (C), and shall consist of individuals representing 
                business, industry, and labor, local secondary schools, 
                local postsecondary education institutions, local adult 
                education providers, local elected officials, 
                rehabilitation agencies and organizations, and 
                community-based organizations, within the appropriate 
                substate area.
                    (B) Multiple jurisdictions.--In any case in which 
                there are 2 or more units of general local government 
                in the substate area involved, the chief elected 
                official of each such unit shall appoint members of the 
                local partnership in accordance with an agreement 
                entered into by such chief elected officials. In the 
                absence of such an agreement, such appointments shall 
                be made by the Governor of the State involved from the 
                individuals nominated or recommended by the chief 
                elected officials.
                    (C) Selection of business and industry 
                representatives.--Individuals representing business and 
                industry in the local partnership shall be appointed by 
                the chief elected official from nominations submitted 
                by business organizations in the substate area 
                involved. Such individuals shall reasonably represent 
                the industrial and demographic composition of the 
                business community. Where possible, at least 50 percent 
                of such business and industry representatives shall be 
                representatives of small business.
            (3) Business and industry involvement.--The business and 
        industry representatives shall have a lead role in the design, 
        management, and evaluation of the activities to be carried out 
        in the substate area under the local agreement.
            (4) Contents.--
                    (A) State goals and state benchmarks.--Such an 
                agreement shall include a description of the manner in 
                which funds allocated to a substate area under this 
                title will be spent to meet the State goals and reach 
                the State benchmarks in a manner that reflects local 
                labor market conditions.
                    (B) Collaboration.--The agreement shall also 
                include information that demonstrates the manner in 
                which--
                            (i) the Governor; and
                            (ii) the local partnership (or, where 
                        established, the local workforce development 
                        board);
                collaborated in reaching the agreement.
            (5) Failure to reach agreement.--If, after a reasonable 
        effort, the Governor is unable to enter into an agreement with 
        the local partnership (or, where established, the local 
        workforce development board), the Governor shall notify the 
        partnership or board, as appropriate, and provide the 
        partnership or board, as appropriate, with the opportunity to 
        comment, not later than 30 days after the date of the 
        notification, on the manner in which funds allocated to such 
        substate area will be spent to meet the State goals and reach 
        the State benchmarks.
            (6) Exception.--A State that indicates in the State plan 
        described in section 104 that the State will be treated as a 
        substate area for purposes of the application of this title 
        shall not be subject to this subsection.
    (b) Local Workforce Development Boards.--
            (1) In general.--Each State may facilitate the 
        establishment of local workforce development boards in each 
        substate area to set policy and provide oversight over the 
        workforce development activities in the substate area.
            (2) Membership.--
                    (A) State criteria.--The Governor shall establish 
                criteria for use by local chief elected officials in 
                each substate area in the selection of members of the 
                local workforce development boards, in accordance with 
                the requirements of subparagraph (B).
                    (B) Representation requirement.--Such criteria 
                shall require, at a minimum, that a local workforce 
                development board consist of--
                            (i) representatives of business and 
                        industry in the substate area, who shall 
                        constitute a majority of the board;
                            (ii) representatives of labor, workers, and 
                        community-based organizations, who shall 
                        constitute not less than 25 percent of the 
                        members of the board;
                            (iii) representatives of local secondary 
                        schools, postsecondary education institutions, 
                        and adult education providers;
                            (iv) representatives of veterans; and
                            (v) 1 or more individuals with 
                        disabilities, or their representatives.
                    (C) Chair.--Each local workforce development board 
                shall select a chairperson from among the members of 
                the board who are representatives of business and 
                industry.
            (3) Conflict of interest.--No member of a local workforce 
        development board shall vote on a matter relating to the 
        provision of services by the member (or any organization that 
        the member directly represents) or vote on a matter that would 
        provide direct financial benefit to such member or the 
        immediate family of such member or engage in any other activity 
        determined by the Governor to constitute a conflict of 
        interest.
            (4) Functions.--The functions of the local workforce 
        development board shall include--
                    (A) submitting to the Governor a single 
                comprehensive 3-year strategic plan for workforce 
                development activities in the substate area that 
                includes information--
                            (i) identifying the workforce development 
                        needs of local industries, students, 
                        jobseekers, and workers;
                            (ii) identifying the workforce development 
                        activities to be carried out in the substate 
                        area with funds received through the allotment 
                        made to the State under section 102, to meet 
                        the State goals and reach the State benchmarks; 
                        and
                            (iii) identifying how the local workforce 
                        development board will obtain the active and 
                        continuous participation of business, industry, 
                        and labor in the development and continuous 
                        improvement of the workforce development 
                        activities carried out in the substate area;
                    (B) entering into local agreements with the 
                Governor as described in subsection (a);
                    (C) overseeing the operations of the one-stop 
                delivery of core services described in section 
                106(a)(2) in the substate area, including the 
                responsibility to--
                            (i) designate local entities to operate the 
                        one-stop delivery in the substate area, 
                        consistent with the criteria referred to in 
                        section 106(a)(2); and
                            (ii) develop and approve the budgets and 
                        annual operating plans of the providers of the 
                        one-stop delivery; and
                    (D) submitting annual reports to the Governor on 
                the progress being made in the substate area toward 
                meeting the State goals and reaching the State 
                benchmarks.
            (5) Consultation.--A local workforce development board that 
        serves a substate area shall conduct the functions described in 
        paragraph (4) in consultation with the chief elected officials 
        in the substate area.
    (c) Economic Development Activities.--A State shall be eligible to 
use the funds made available through the flex account for flexible 
workforce activities to carry out economic development activities if--
            (1) the boards described in section 105 and subsection (b) 
        are established in the State; or
            (2) in the case of a State that indicates in the State plan 
        described in section 104 that the State will be treated as a 
        substate area for purposes of the application of this title, 
        the board described in section 105 is established in the State.

               Subtitle C--Provisions for Other Entities

SEC. 121. INDIAN WORKFORCE DEVELOPMENT ACTIVITIES.

    (a) Purpose.--
            (1) In general.--The purpose of this section is to support 
        workforce development activities for Indian and Native Hawaiian 
        individuals in order--
                    (A) to develop more fully the academic, 
                occupational, and literacy skills of such individuals;
                    (B) to make such individuals more competitive in 
                the workforce; and
                    (C) to promote the economic and social development 
                of Indian and Native Hawaiian communities in accordance 
                with the goals and values of such communities.
            (2)  Indian policy.--All programs assisted under this 
        section shall be administered in a manner consistent with the 
        principles of the Indian Self-Determination and Education 
        Assistance Act (25 U.S.C. 450 et seq.) and the government-to-
        government relationship between the Federal Government and 
        Indian tribal governments.
    (b) Definitions.--As used in this section:
            (1) Alaska native.--The term ``Alaska Native'' means a 
        Native as such term is defined in section 3(b) of the Alaska 
        Native Claims Settlement Act (43 U.S.C. 1602(b)).
            (2) Indian, indian tribe, and tribal organization.--The 
        terms ``Indian'', ``Indian tribe'', and ``tribal organization'' 
        have the same meanings given such terms in subsections (d), (e) 
        and (l), respectively, of section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).
            (3) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given the 
        term in section 1201(a) of the Higher Education Act of 1965 (20 
        U.S.C. 1141(a)).
            (4) Native hawaiian and native hawaiian organization.--The 
        terms ``Native Hawaiian'' and ``Native Hawaiian organization'' 
        have the same meanings given such terms in paragraphs (1) and 
        (3), respectively, of section 9212 of the Native Hawaiian 
        Education Act (20 U.S.C. 7912).
            (5) Tribally controlled community college.--The term 
        ``tribally controlled community college'' has the same meaning 
        given such term in section 2(a)(4) of the Tribally Controlled 
        Community College Assistance Act of 1978 (25 U.S.C. 
        1801(a)(4)).
            (6) Tribally controlled postsecondary vocational 
        institution.--The term ``tribally controlled postsecondary 
        vocational institution'' means an institution of higher 
        education that--
                    (A) is formally controlled, or has been formally 
                sanctioned or chartered, by the governing body of an 
                Indian tribe or Indian tribes;
                    (B) offers a technical degree or certificate 
                granting program;
                    (C) is governed by a board of directors or 
                trustees, a majority of whom are Indians;
                    (D) demonstrates adherence to stated goals, a 
                philosophy, or a plan of operation, that fosters 
                individual Indian economic and self-sufficiency 
                opportunity, including programs that are appropriate to 
                stated tribal goals of developing individual 
                entrepreneurships and self-sustaining economic 
                infrastructures on reservations;
                    (E) has been in operation for at least 3 years;
                    (F) holds accreditation with or is a candidate for 
                accreditation by a nationally recognized accrediting 
                authority for postsecondary vocational education; and
                    (G) enrolls the full-time equivalent of not fewer 
                than 100 students, of whom a majority are Indians.
    (c) Program Authorized.--
            (1) Assistance authorized.--From amounts made available 
        under section 134(b)(2), the Governing Board shall make grants 
        to, or enter into contracts or cooperative agreements with, 
        Indian tribes and tribal organizations, Alaska Native entities, 
        tribally controlled community colleges, tribally controlled 
        postsecondary vocational institutions, Indian-controlled 
        organizations serving Indians or Alaska Natives, and Native 
        Hawaiian organizations to carry out the authorized activities 
        described in subsection (d).
            (2) Formula.--The Governing Board shall make grants to, or 
        enter into contracts and cooperative agreements with, entities 
        as described in paragraph (1) to carry out the activities 
        described in paragraphs (2) and (3) of subsection (d) on the 
        basis of a formula developed by the Governing Board in 
        consultation with entities described in paragraph (1).
    (d) Authorized Activities.--
            (1) In general.--Funds made available under this section 
        shall be used to carry out the activities described in 
        paragraphs (2) and (3) that--
                    (A) are consistent with this section; and
                    (B) are necessary to meet the needs of Indians and 
                Native Hawaiians preparing to enter, reenter, or retain 
                unsubsidized employment.
            (2) Workforce development activities and supplemental 
        services.--
                    (A) In general.--Funds made available under this 
                section shall be used for--
                            (i) comprehensive workforce development 
                        activities for Indians and Native Hawaiians;
                            (ii) supplemental services for Indian or 
                        Native Hawaiian youth on or near Indian 
                        reservations in Oklahoma, Alaska, or Hawaii; 
                        and
                            (iii) supplemental services to recipients 
                        of public assistance on or near Indian 
                        reservations or former reservation areas in 
                        Oklahoma or in Alaska.
                    (B) Special rule.--Notwithstanding any other 
                provision of this section, individuals who were 
                eligible to participate in programs under section 401 
                of the Job Training Partnership Act (29 U.S.C. 1671) 
                (as such section was in effect on the day before the 
                date of enactment of this Act) shall be eligible to 
                participate in an activity assisted under subparagraph 
                (A)(i).
            (3) Vocational education, adult education, and literacy 
        services.--Funds made available under this section shall be 
        used for--
                    (A) workforce education activities conducted by 
                entities described in subsection (c)(1); and
                    (B) the support of tribally controlled 
                postsecondary vocational institutions in order to 
                ensure continuing and expanded educational 
                opportunities for Indian students.
    (e) Program Plan.--In order to receive a grant or enter into a 
contract or cooperative agreement under this section an entity 
described in subsection (c)(1) shall submit to the Governing Board a 
plan that describes a 3-year strategy for meeting the needs of Indian 
and Native Hawaiian individuals, as appropriate, in the area served by 
such entity. Such plan shall--
            (1) be consistent with the purposes of this section;
            (2) identify the population to be served;
            (3) identify the education and employment needs of the 
        population to be served and the manner in which the services to 
        be provided will strengthen the ability of the individuals 
        served to obtain or retain unsubsidized employment;
            (4) describe the services to be provided and the manner in 
        which such services are to be integrated with other appropriate 
        services; and
            (5) describe the goals and benchmarks to be used to assess 
        the performance of entities in carrying out the activities 
        assisted under this section.
    (f) Further Consolidation of Funds.--Each entity receiving 
assistance under this section may consolidate such assistance with 
assistance received from related programs in accordance with the 
provisions of the Indian Employment, Training and Related Services 
Demonstration Act of 1992 (25 U.S.C. 3401 et seq.).
    (g) Nonduplicative and Nonexclusive Services.--Nothing in this 
section shall be construed--
            (1) to limit the eligibility of any entity described in 
        subsection (c)(1) to participate in any program offered by a 
        State or local entity under this Act; or
            (2) to preclude or discourage any agreement, between any 
        entity described in subsection (c)(1) and any State or local 
        entity, to facilitate the provision of services by such entity 
        or to the population served by such entity.
    (h) Partnership Provisions.--
            (1) Office established.--The Governing Board shall 
        establish an office within the Federal Partnership to 
        administer the activities assisted under this section.
            (2) Consultation required.--
                    (A) In general.--The Governing Board, through the 
                office established under paragraph (1), shall develop 
                regulations and policies for activities assisted under 
                this section in consultation with tribal organizations 
                and Native Hawaiian organizations. Such regulations and 
                policies shall take into account the special 
                circumstances under which such activities operate.
                    (B) Administrative support.--The Governing Board 
                shall provide such administrative support to the office 
                established under paragraph (1) as the Governing Board 
                determines to be necessary to carry out the 
                consultation required by subparagraph (A).
            (3) Technical assistance.--The Governing Board, through the 
        office established under paragraph (1), is authorized to 
        provide technical assistance to entities described in 
        subsection (c)(1) that receive assistance under this section to 
        enable such entities to improve the workforce development 
        activities provided by such entities.

SEC. 122. GRANTS TO OUTLYING AREAS.

    (a) General Authority.--Using funds made available under section 
134(b)(3), the Governing Board shall make grants to outlying areas to 
carry out workforce development activities.
    (b) Application.--The Governing Board shall issue regulations 
specifying the provisions of this Act that shall apply to outlying 
areas that receive funds under this title.

                     Subtitle D--General Provisions

SEC. 131. ACCOUNTABILITY.

    (a) Report.--Each State that receives an allotment under section 
102 shall annually prepare and submit to the Governing Board a report 
that states how the State is performing on State benchmarks specified 
in this section, which relate to workforce development activities 
carried out through the statewide system of the State. In preparing the 
report, the State may include information on such additional benchmarks 
as the State may establish to meet the State goals.
    (b) Goals.--
            (1) Meaningful employment.--Each statewide system supported 
        by an allotment under section 102 shall be designed to meet the 
        goal of assisting participants in obtaining meaningful 
        unsubsidized employment opportunities in the State.
            (2) Education.--Each statewide system supported by an 
        allotment under section 102 shall be designed to meet the goal 
        of enhancing and developing more fully the academic, 
        occupational, and literacy skills of all segments of the 
        population of the State.
    (c) Benchmarks.--
            (1) Meaningful employment.--To be eligible to receive an 
        allotment under section 102, a State shall develop, in 
        accordance with paragraph (5), and identify in the State plan 
        of the State, proposed quantifiable benchmarks to measure the 
        statewide progress of the State toward meeting the goal 
        described in subsection (b)(1), which shall include, at a 
        minimum, measures of--
                    (A) placement in unsubsidized employment of 
                participants;
                    (B) retention of the participants in such 
                employment (12 months after completion of the 
                participation); and
                    (C) increased earnings for the participants.
            (2) Education.--To be eligible to receive an allotment 
        under section 102, a State shall develop, in accordance with 
        paragraph (5), and identify in the State plan of the State, 
        proposed quantifiable benchmarks to measure the statewide 
        progress of the State toward meeting the goal described in 
        subsection (b)(2), which shall include, at a minimum, measures 
        of--
                    (A) student mastery of academic knowledge and work 
                readiness skills;
                    (B) student mastery of occupational and industry-
                recognized skills according to skill proficiencies for 
                students in career preparation programs;
                    (C) placement in, retention in, and completion of 
                secondary education (as determined under State law) and 
                postsecondary education, and placement and retention in 
                employment and in military service; and
                    (D) mastery of the literacy, knowledge, and skills 
                adults need to be productive and responsible citizens 
                and to become more actively involved in the education 
                of their children.
            (3) Populations.--To be eligible to receive an allotment 
        under section 102, a State shall develop, in accordance with 
        paragraph (5), and identify in the State plan of the State, 
        proposed quantifiable benchmarks to measure progress toward 
        meeting the goals described in subsection (b) for populations 
        including, at a minimum--
                    (A) welfare recipients;
                    (B) individuals with disabilities;
                    (C) older workers;
                    (D) at-risk youth; and
                    (E) dislocated workers.
            (4) Special rule.--If a State has developed performance 
        indicators, attainment levels, or assessments for skills 
        according to challenging academic, occupational, or industry-
        recognized skill proficiencies, the State shall use such 
        performance indicators, attainment levels, or assessments in 
        measuring the progress of all students in attaining the skills.
            (5) Negotiations.--
                    (A) Initial determination.--On receipt of a State 
                plan submitted under section 104, the Governing Board 
                shall, not later than 30 days after the date of the 
                receipt, determine--
                            (i) how the proposed State benchmarks 
                        identified by the State in the State plan 
                        compare to the model benchmarks established by 
                        the Governing Board under section 
                        301(b)(4)(B)(ii);
                            (ii) how the proposed State benchmarks 
                        compare with State benchmarks proposed by other 
                        States in their State plans;
                            (iii) whether the proposed State 
                        benchmarks, taken as a whole, are sufficient--
                                    (I) to enable the State to meet the 
                                State goals; and
                                    (II) to make the State eligible for 
                                an incentive grant under section 
                                132(a).
                    (B) Notification.--The Governing Board shall 
                immediately notify the State of the determinations 
                referred to in subparagraph (A). If the Governing Board 
                determines that the proposed State benchmarks are not 
                sufficient to make the State eligible for an incentive 
                grant under section 132(a), the Governing Board shall 
                provide the State with guidance on the steps the State 
                may take to allow the State to become eligible for the 
                grant.
                    (C) Revision.--Not later than 30 days after the 
                date of receipt of the notification referred to in 
                subparagraph (B), the State may revise some or all of 
                the State benchmarks identified in the State plan in 
                order to become eligible for the incentive grant or 
                provide reasons why the State benchmarks should be 
                sufficient to make the State eligible for the incentive 
                grant.
                    (D) Final determination.--After reviewing any 
                revised State benchmarks or information submitted by 
                the State in accordance with subparagraph (C), the 
                Governing Board shall issue a final determination on 
                the eligibility of the State for the incentive grant.
            (6) Incentive grants.--Each State that sets high benchmarks 
        under paragraph (1), (2), or (3) and reaches or exceeds the 
        benchmarks, as determined by the Governing Board, shall be 
        eligible to receive an incentive grant under section 132(a).
            (7) Sanctions.--A State that has failed to demonstrate 
        sufficient progress toward reaching the State benchmarks 
        established under this subsection for the 3 years covered by a 
        State plan described in section 104, as determined by the 
        Governing Board, may be subject to sanctions under section 
        132(b).
    (d) Job Placement Accountability System.--
            (1) In general.--Each State that receives an allotment 
        under section 102 shall establish a job placement 
        accountability system, which will provide a uniform set of data 
        to track the progress of the State toward reaching the State 
        benchmarks.
            (2) Data.--
                    (A) In general.--In order to maintain data relating 
                to the measures described in subsection (c)(1), each 
                such State shall establish a job placement 
                accountability system using quarterly wage records 
                available through the unemployment insurance system. 
                The State agency or entity within the State responsible 
                for labor market information, as designated in section 
                303(c)(1)(B), in conjunction with the Commissioner of 
                Labor Statistics, shall maintain the job placement 
                accountability system and match information on 
                participants served by the statewide systems of the 
                State and other States with quarterly employment and 
                earnings records.
                    (B) Reimbursement.--Each local entity that carries 
                out workforce employment activities or workforce 
                education activities and that receives funds under this 
                title shall provide information regarding the social 
                security numbers of the participants served by the 
                entity and such other information as the State may 
                require to the State agency or entity within the State 
                responsible for labor market information, as designated 
                in section 303(c)(1)(B).
                    (C) Confidentiality.--The State agency or entity 
                within the State responsible for labor market 
                information, as designated in section 303(c)(1)(B), 
                shall protect the confidentiality of information 
                obtained through the job placement accountability 
                system through the use of recognized security 
                procedures.

SEC. 132. INCENTIVES AND SANCTIONS.

    (a) Incentives.--
            (1) In general.--The Governing Board may award incentive 
        grants of not more than $15,000,000 per program year to a State 
        that--
                    (A) reaches or exceeds State benchmarks established 
                under section 131(c), with an emphasis on the 
                benchmarks established under section 131(c)(3), in 
                accordance with section 131(c)(6); or
                    (B) demonstrates to the Governing Board that the 
                State has made substantial reductions in the number of 
                adult recipients of aid to families with dependent 
                children, as defined in section 102(b)(1)(A), resulting 
                from increased placement of such adult recipients in 
                unsubsidized employment.
            (2) Use of funds.--A State that receives such a grant may 
        use the funds made available through the grant to carry out any 
        workforce development activities authorized under this Act.
    (b) Sanctions.--
            (1) Failure to demonstrate sufficient progress.--If the 
        Governing Board determines, after notice and an opportunity for 
        a hearing, that a State has failed to demonstrate sufficient 
        progress toward reaching the State benchmarks established under 
        section 131(c) for the 3 years covered by a State plan 
        described in section 104, the Governing Board may reduce the 
        allotment of the State under section 102 by not more than 10 
        percent per program year for not more than 3 years. The 
        Governing Board may determine that the failure of the State to 
        demonstrate such progress is attributable to the workforce 
        employment activities, workforce education activities, or 
        flexible workforce activities, of the State, and reduce only 
        the portion of the allotment for such activities.
            (2) Expenditure contrary to act.--If the Governor of a 
        State determines that a local entity that carries out workforce 
        employment activities in a substate area of the State has 
        expended funds made available under this Act in a manner 
        contrary to the purposes of this Act, and such expenditures do 
        not constitute fraudulent activity, the Governor may deduct an 
        amount equal to the funds from a subsequent program year 
        allocation to the substate area.
    (c) Funds Resulting From Reduced Allotments.--The Governing Board 
may use an amount retained as a result of a reduction in an allotment 
made under subsection (b)(1) to award an incentive grant under 
subsection (a).

SEC. 133. UNEMPLOYMENT TRUST FUND.

    (a) In General.--Section 901(c) of the Social Security Act (42 
U.S.C. 1101(c)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A), by striking clause (ii) 
                and inserting the following:
                            ``(ii) the establishment and maintenance of 
                        statewide workforce development systems, to the 
                        extent the systems are used to carry out 
                        activities described in section 303, or in any 
                        of clauses (ii) through (v) of section 
                        106(a)(2)(B), of the Workforce Development Act 
                        of 1995, and''; and
                    (B) in subparagraph (B)--
                            (i) in the matter preceding clause (i), by 
                        striking ``Department of Labor'' and inserting 
                        ``Department of Labor or the Workforce 
                        Development Partnership, as appropriate,''; and
                            (ii) by striking clause (iii) and inserting 
                        the following:
                            ``(iii) the Workforce Development Act of 
                        1995,''; and
            (2) in the first sentence of paragraph (4), by striking 
        ``the total cost'' and all that follows through ``the President 
        determines'' and inserting ``the total cost of administering 
        the statewide workforce development systems, to the extent the 
        systems are used to carry out activities described in section 
        303, or in any of clauses (ii) through (v) of section 
        106(a)(2)(B), of the Workforce Development Act of 1995, and of 
        the necessary expenses of the Workforce Development Partnership 
        for the performance of the functions of the partnership under 
        such Act, as the President determines''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect July 1, 1998.

SEC. 134. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated to carry 
out this Act (other than subtitle C of title II) $7,000,000,000 for 
each of fiscal years 1998 through 2001.
    (b) Reservations.--Of the amount appropriated under subsection 
(a)--
            (1) 92.7 percent shall be reserved for making allotments 
        under section 102;
            (2) 1.25 percent shall be reserved for carrying out section 
        121;
            (3) 0.2 percent shall be reserved for carrying out section 
        122;
            (4) 4.3 percent shall be reserved for making incentive 
        grants under section 132(a) and for the administration of this 
        Act;
            (5) 0.15 percent shall be reserved for carrying out 
        sections 302 and 304; and
            (6) 1.4 percent shall be reserved for carrying out section 
        303.
    (c) Program Year.--
            (1) In general.--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) Administration.--Funds obligated for any program year 
        may be expended by each recipient during the program year and 
        the 2 succeeding program years and no amount shall be 
        deobligated on account of a rate of expenditure that is 
        consistent with the provisions of the State plan specified in 
        section 104 that relate to workforce employment activities.

SEC. 135. EFFECTIVE DATE.

    This title shall take effect July 1, 1998.
                    TITLE II--TRANSITION PROVISIONS

Subtitle A--Transition Provisions Relating to Use of Federal Funds for 
                       State and Local Activities

SEC. 201. WAIVERS.

    (a) Waiver Authority.--
            (1) In general.--Notwithstanding any other provision of 
        Federal law, and except as provided in subsection (d), the 
        Secretary may waive any requirement under any provision of law 
        relating to a covered activity, or of any regulation issued 
        under such a provision, for--
                    (A) a State that requests such a waiver and submits 
                an application as described in subsection (b); or
                    (B) a local entity that requests such a waiver and 
                complies with the requirements of subsection (c);
        in order to assist the State or local entity in planning or 
        developing a statewide system or workforce development 
        activities to be carried out through the statewide system.
            (2) Term.--
                    (A) In general.--Except as provided in subparagraph 
                (B), each waiver approved pursuant to this section 
                shall be for a period beginning on the date of the 
                approval and ending on June 30, 1998.
                    (B) Failure to submit interim plan.--If a State 
                receives a waiver under this section and fails to 
                submit an interim plan under section 211 by June 30, 
                1997, the waiver shall be deemed to terminate on 
                September 30, 1997. If a local entity receives a waiver 
                under this section, and the State in which the local 
                entity is located fails to submit an interim plan under 
                section 211 by June 30, 1997, the waiver shall be 
                deemed to terminate on September 30, 1997.
    (b) State Request for Waiver.--
            (1) In general.--A State may submit to the Secretary a 
        request for a waiver of 1 or more requirements referred to in 
        subsection (a). The request may include a request for different 
        waivers with respect to different areas within the State.
            (2) Application.--To be eligible to receive a waiver 
        described in subsection (a), a State shall submit an 
        application to the Secretary at such time, in such manner, and 
        containing such information as the Secretary may require, 
        including information--
                    (A) identifying the requirement to be waived and 
                the goal that the State (or the local agency applying 
                to the State under subsection (c)) intends to achieve 
                through the waiver;
                    (B) identifying, and describing the actions that 
                the State will take to remove, similar State 
                requirements;
                    (C) describing the activities to which the waiver 
                will apply, including information on how the activities 
                may be continued, or related to activities carried out, 
                under the statewide system of the State;
                    (D) describing the number and type of persons to be 
                affected by such waiver; and
                    (E) providing evidence of support for the waiver 
                request by the State agencies or officials with 
                jurisdiction over the requirement to be waived.
    (c) Local Entity Request for Waiver.--
            (1) In general.--A local entity that seeks a waiver of such 
        a requirement shall submit to the State a request for the 
        waiver and an application containing sufficient information to 
        enable the State to comply with the requirements of subsection 
        (b)(2). The State shall determine whether to submit a request 
        and an application for a waiver to the Secretary, as provided 
        in subsection (b).
            (2) Time limit.--
                    (A) In general.--The State shall make a 
                determination concerning whether to submit the request 
                and application for a waiver as described in paragraph 
                (1) not later than 30 days after the date on which the 
                State receives the application from the local entity.
                    (B) Direct submission.--
                            (i) In general.--If the State does not make 
                        a determination to submit or does not submit 
                        the request and application within the 30-day 
                        time period specified in subparagraph (A), the 
                        local entity may submit the request and 
                        application to the Secretary.
                            (ii) Requirements.--In submitting such a 
                        request, the local entity shall obtain the 
                        agreement of the State involved to comply with 
                        the requirements of this section that would 
                        otherwise apply to a State submitting a request 
                        for a waiver. In reviewing an application 
                        submitted by a local entity, the Secretary 
                        shall comply with the requirements of this 
                        section that would otherwise apply to the 
                        Secretary with respect to review of such an 
                        application submitted by a State.
    (d) Waivers Not Authorized.--The Secretary may not waive any 
requirement of any provision referred to in subsection (a), or of any 
regulation issued under such provision, relating to--
            (1) the allocation of funds to States, local entities, or 
        individuals;
            (2) public health or safety, civil rights, occupational 
        safety and health, environmental protection, displacement of 
        employees, or fraud and abuse;
            (3) the eligibility of an individual for participation in a 
        covered activity, except in a case in which the State or local 
        entity can demonstrate that the individuals who would have been 
        eligible to participate in such activity without the waiver 
        will participate in a similar covered activity; or
            (4) a required supplementation of funds by the State or a 
        prohibition against the State supplanting such funds.
    (e) Activities.--Subject to subsection (d), the Secretary may 
approve a request for a waiver described in subsection (a) that would 
enable a State or local entity to--
            (1) use the assistance that would otherwise have been used 
        to carry out 2 or more covered activities (if the State or 
        local entity were not using the assistance as described in this 
        section)--
                    (A) to address the high priority needs of 
                unemployed persons and at-risk youth in the appropriate 
                State or community for workforce employment activities 
                or workforce education activities;
                    (B) to improve efficiencies in the delivery of the 
                covered activities; or
                    (C) in the case of overlapping or duplicative 
                activities--
                            (i) by combining the covered activities and 
                        funding the combined activities; or
                            (ii) by eliminating 1 of the covered 
                        activities and increasing the funding to the 
                        remaining covered activity; and
            (2) use the assistance that would otherwise have been used 
        for administrative expenses relating to a covered activity (if 
        the State or local entity were not using the assistance as 
        described in this section) to pay for the cost of developing an 
        interim State plan described in section 211 or a State plan 
        described in section 104.
    (f) Approval or Disapproval.--The Secretary shall approve or 
disapprove any request submitted pursuant to subsection (b) or (c), not 
later than 45 days after the date of the submission and shall issue a 
decision that shall include the reasons for approving or disapproving 
the request.
    (g) Failure To Act.--If the Secretary fails to approve or 
disapprove the request within the 45-day period described in subsection 
(f), the request shall be deemed to be approved on the day after such 
period ends. If the Secretary subsequently determines that the waiver 
relates to a matter described in subsection (d) and issues a decision 
that includes the reasons for the determination, the waiver shall be 
deemed to terminate on the date of issuance of the decision.
    (h) Definition.--As used in this section:
            (1) Local entity.--The term ``local entity'' means--
                    (A) a local educational agency, with respect to any 
                act by a local agency or organization relating to a 
                covered activity that is a workforce education 
                activity; and
                    (B) the local public or private agency or 
                organization responsible for carrying out the covered 
                activity at issue, with respect to any act by a local 
                agency or organization relating to any other covered 
                activity.
            (2) Secretary.--The term ``Secretary'' means--
                    (A) the Secretary of Labor, with respect to any act 
                relating to a covered activity carried out by the 
                Secretary of Labor;
                    (B) the Secretary of Education, with respect to any 
                act relating to a covered activity carried out by the 
                Secretary of Education; and
                    (C) the Secretary of Health and Human Services, 
                with respect to any act relating to a covered activity 
                carried out by the Secretary of Health and Human 
                Services.
            (3) State.--The term ``State'' means--
                    (A) a State educational agency, with respect to any 
                act by a State entity relating to a covered activity 
                that is a workforce education activity; and
                    (B) the Governor, with respect to any act by a 
                State entity relating to any other covered activity.
    (i) Conforming Amendments.--
            (1) Section 501 of the School-to-Work Opportunities Act of 
        1994 (20 U.S.C. 6211) is amended--
                    (A) in subsection (a), by striking ``sections 502 
                and 503'' and inserting ``section 502'';
                    (B) in subsection (b)(2)(B)(ii)--
                            (i) by striking ``section 502(a)(1)(C) or 
                        503(a)(1)(C), as appropriate,'' and inserting 
                        ``section 502(a)(1)(C)''; and
                            (ii) by striking ``section 502 or 503, as 
                        appropriate,'' and inserting ``section 502'';
                    (C) in subsection (c), by striking ``section 502 or 
                503'' and inserting ``section 502''; and
                    (D) by striking ``Secretaries'' each place the term 
                appears and inserting ``Secretary of Education''.
            (2) Section 502(b) of such Act (20 U.S.C. 6212(b)) is 
        amended--
                    (A) in paragraph (4), by striking the semicolon and 
                inserting ``; and'';
                    (B) in paragraph (5), by striking ``; and'' and 
                inserting a period; and
                    (C) by striking paragraph (6).
            (3) Section 503 of such Act (20 U.S.C. 6213) is repealed.
            (4) Section 504 of such Act (20 U.S.C. 6214) is amended--
                    (A) in subsection (a)(2)(B), by striking clauses 
                (i) and (ii) and inserting the following clauses:
                            ``(i) the provisions of law listed in 
                        paragraphs (2) through (5) of section 502(b);
                            ``(ii) the Job Training Partnership Act (29 
                        U.S.C. 1501 et seq.); and
                            ``(iii) the Carl D. Perkins Vocational and 
                        Applied Technology Education Act (20 U.S.C. 
                        2301 et seq.).''; and
                    (B) in subsection (b), by striking ``paragraphs (1) 
                through (3), and paragraphs (5) and (6), of section 
                503(b)'' and inserting ``paragraphs (2) through (4) and 
                paragraphs (6) and (7) of section 505(b)''.
            (5) Section 505(b) of such Act (20 U.S.C. 6215(b)) is 
        amended to read as follows:
    ``(b) Use of Funds.--A State may use, under the requirements of 
this Act, Federal funds that are made available to the State and 
combined under subsection (a) to carry out school-to-work activities, 
except that the provisions relating to--
            ``(1) the matters specified in section 502(c);
            ``(2) basic purposes or goals;
            ``(3) maintenance of effort;
            ``(4) distribution of funds;
            ``(5) eligibility of an individual for participation;
            ``(6) public health or safety, labor standards, civil 
        rights, occupational safety and health, or environmental 
        protection; or
            ``(7) prohibitions or restrictions relating to the 
        construction of buildings or facilities;
that relate to the program through which the funds described in 
subsection (a)(2)(B) were made available, shall remain in effect with 
respect to the use of such funds.''.
  Subtitle B--Transition Provisions Relating to Applications and Plans

SEC. 211. INTERIM STATE PLANS.

    (a) In General.--For a State or local entity in a State to use a 
waiver received under section 201 through June 30, 1998, and for a 
State to be eligible to submit a State plan described in section 104 
for program year 1998, the Governor of the State shall submit an 
interim State plan to the Governing Board. The Governor shall submit 
the plan not later than June 30, 1997.
    (b) Requirements.--The interim State plan shall comply with the 
requirements applicable to State plans described in section 104.
    (c) Program Year.--In submitting the interim State plan, the 
Governor shall indicate whether the plan is submitted--
            (1) for review and approval for program year 1997; or
            (2) solely for review.
    (d) Review.--In reviewing an interim State plan, the Governing 
Board may--
            (1) in the case of a plan submitted for review and approval 
        for program year 1997--
                    (A) approve the plan and permit the State to use a 
                waiver as described in section 201 to carry out the 
                plan; or
                    (B) disapprove the plan, and provide to the State 
                reasons for the disapproval and technical assistance 
                for developing an approvable plan to be submitted under 
                section 104 for program year 1998; and
            (2) in the case of a plan submitted solely for review, 
        review the plan and provide to the State technical assistance 
        for developing an approvable plan to be submitted under section 
        104 for program year 1998.
    (e) Effect of Disapproval.--Disapproval of an interim plan shall 
not affect the ability of a State to use a waiver as described in 
section 201 through June 30, 1998.

SEC. 212. APPLICATIONS AND PLANS UNDER COVERED ACTS.

    Notwithstanding any other provision of law, no State or local 
entity shall be required to comply with any provision of a covered Act 
that would otherwise require the entity to submit an application or a 
plan to a Federal agency during fiscal year 1996 or 1997 for funding of 
a covered activity. In determining whether to provide funding to the 
State or local entity for the covered activity, the Secretary of 
Education, the Secretary of Labor, or the Secretary of Health and Human 
Services, as appropriate, shall consider the last application or plan, 
as appropriate, submitted by the entity for funding of the covered 
activity.

 Subtitle C--Job Corps and Other Workforce Preparation Activities for 
                             At-Risk Youth

                CHAPTER 1--GENERAL JOB CORPS PROVISIONS

SEC. 221. PURPOSES.

    The purposes of this subtitle are--
            (1) to maintain a Job Corps for at-risk youth as part of 
        statewide systems;
            (2) to set forth standards and procedures for selecting 
        individuals as enrollees in the Job Corps;
            (3) to authorize the establishment of residential and 
        nonresidential Job Corps centers in which enrollees will 
        participate in intensive programs of workforce development 
        activities;
            (4) to prescribe various other powers, duties, and 
        responsibilities incident to the operation and continuing 
        development of the Job Corps; and
            (5) to assist at-risk youth who need and can benefit from 
        an unusually intensive program, operated in a group setting, to 
        become more responsible, employable, and productive citizens.

SEC. 222. DEFINITIONS.

    As used in this subtitle:
            (1) Enrollee.--The term ``enrollee'' means an individual 
        enrolled in the Job Corps.
            (2) Governor.--The term ``Governor'' means the chief 
        executive officer of a State.
            (3) Job corps.--The term ``Job Corps'' means the corps 
        described in section 223.
            (4) Job corps center.--The term ``Job Corps center'' means 
        a center described in section 223.
SEC. 223. GENERAL AUTHORITY.

    If a State receives an allotment under section 241, and a center 
located in the State received assistance under part B of title IV of 
the Job Training Partnership Act for fiscal year 1996 and was not 
closed in accordance with section 235, the State shall use a portion of 
the funds made available through the allotment to maintain the center, 
and carry out activities described in this subtitle for individuals 
enrolled in a Job Corps and assigned to the center.

SEC. 224. INDIVIDUALS ELIGIBLE FOR THE JOB CORPS.

    To be eligible to become an enrollee, an individual shall be an at-
risk youth.

SEC. 225. SCREENING AND SELECTION OF APPLICANTS.

    (a) Standards and Procedures.--
            (1) In general.--The State shall prescribe specific 
        standards and procedures for the screening and selection of 
        applicants for the Job Corps.
            (2) Implementation.--To the extent practicable, the 
        standards and procedures shall be implemented through 
        arrangements with--
                    (A) one-stop career centers;
                    (B) agencies and organizations such as community 
                action agencies, professional groups, and labor 
                organizations; and
                    (C) agencies and individuals that have contact with 
                youth over substantial periods of time and are able to 
                offer reliable information about the needs and problems 
                of the youth.
            (3) Consultation.--The standards and procedures shall 
        provide for necessary consultation with individuals and 
        organizations, including court, probation, parole, law 
        enforcement, education, welfare, and medical authorities and 
        advisers.
    (b) Special Limitations.--No individual shall be selected as an 
enrollee unless the individual or organization implementing the 
standards and procedures determines that--
            (1) there is a reasonable expectation that the individual 
        can participate successfully in group situations and 
        activities, is not likely to engage in behavior that would 
        prevent other enrollees from receiving the benefit of the 
        program or be incompatible with the maintenance of sound 
        discipline and satisfactory relationships between the Job Corps 
        center to which the individual might be assigned and 
        surrounding communities; and
            (2) the individual manifests a basic understanding of both 
        the rules to which the individual will be subject and of the 
        consequences of failure to observe the rules.

SEC. 226. ENROLLMENT AND ASSIGNMENT.

    (a) Relationship Between Enrollment and Military Obligations.--
Enrollment in the Job Corps shall not relieve any individual of 
obligations under the Military Selective Service Act (50 U.S.C. App. 
451 et seq.).
    (b) Assignment.--
            (1) In general.--Except as provided in paragraph (2), the 
        State shall assign an enrollee to the Job Corps center within 
        the State that is closest to the residence of the enrollee.
            (2) Agreements with other states.--The State may enter into 
        agreements with 1 or more States to enroll individuals from the 
        States in the Job Corps and assign the enrollees to Job Corps 
        centers in the State.

SEC. 227. JOB CORPS CENTERS.

    (a) Development.--The State shall enter into an agreement with a 
Federal, State, or local agency, which may be a State board or agency 
that operates or wishes to develop an area vocational education school 
facility or residential vocational school, or with a private 
organization, for the establishment and operation of a Job Corps 
center.
    (b) Character and Activities.--Job Corps centers may be residential 
or nonresidential in character, and shall be designed and operated so 
as to provide enrollees, in a well-supervised setting, with access to 
activities described in section 228.
    (c) Civilian Conservation Centers.--The Job Corps centers may 
include Civilian Conservation Centers, located primarily in rural 
areas, which shall provide, in addition to other training and 
assistance, programs of work experience to conserve, develop, or manage 
public natural resources or public recreational areas or to develop 
community projects in the public interest.
    (d) Job Corps Operators.--To be eligible to receive funds under 
this chapter, an entity who entered into a contract with the Secretary 
of Labor that is in effect on the effective date of this section to 
carry out activities through a center under part B of title IV of the 
Job Training Partnership Act (as in effect on the day before the 
effective date of this section), shall enter into a contract with the 
State in which the center is located that contains provisions 
substantially similar to the provisions of the contract with the 
Secretary of Labor, as determined by the State.

SEC. 228. PROGRAM ACTIVITIES.

    (a) Activities Provided Through Job Corps Centers.--Each Job Corps 
center shall provide enrollees assigned to the center with access to 
activities described in section 106(a)(2)(B), and such other workforce 
development activities as may be appropriate to meet the needs of the
 enrollees, including providing work-based learning throughout the 
enrollment of the enrollees and assisting the enrollees in obtaining 
meaningful unsubsidized employment on completion of their enrollment.
    (b) Arrangements.--The State shall arrange for enrollees assigned 
to Job Corps centers in the State to receive workforce development 
activities through the statewide system, including workforce 
development activities provided through local public or private 
educational agencies, vocational educational institutions, or technical 
institutes.
    (c) Job Placement Accountability.--Each Job Corps center located in 
a State shall be connected to the job placement accountability system 
of the State described in section 131(d).

SEC. 229. SUPPORT.

    The State shall provide enrollees assigned to Job Corps centers in 
the State with such personal allowances as the State may determine to 
be necessary or appropriate to meet the needs of the enrollees.

SEC. 230. OPERATING PLAN.

    To be eligible to operate a Job Corps center and receive assistance 
under section 241 for program year 1998 or any subsequent program year, 
an entity shall prepare and submit, to the Governor of the State in 
which the center is located, and obtain the approval of the Governor 
for, an operating plan that shall include, at a minimum, information 
indicating--
            (1) in quantifiable terms, the extent to which the center 
        will contribute to the achievement of the proposed State goals 
        and State benchmarks identified in the State plan for the State 
        submitted under section 104;
            (2) the extent to which workforce employment activities and 
        workforce education activities delivered through the Job Corps 
        center are directly linked to the workforce development needs 
        of the industry sectors most important to the economic 
        competitiveness of the State; and
            (3) an implementation strategy to ensure that all enrollees 
        assigned to the Job Corps center will have access to services 
        through the one-stop delivery of core services described in 
        section 106(a)(2) by the State.

SEC. 231. STANDARDS OF CONDUCT.

    (a) Provision and Enforcement.--The State shall provide, and 
directors of Job Corps center shall stringently enforce, standards of 
conduct within the centers. Such standards of conduct shall include 
provisions forbidding violence, drug abuse, and other criminal 
activity.
    (b) Disciplinary Measures.--To promote the proper moral and 
disciplinary conditions in the Job Corps, the directors of Job Corps 
centers shall take appropriate disciplinary measures against enrollees. 
If such a director determines that an enrollee has committed a 
violation of the standards of conduct, the director shall dismiss the 
enrollee from the Corps if the director determines that the retention 
of the enrollee in the Corps will jeopardize the enforcement of such 
standards or diminish the opportunities of other enrollees. If the 
director determines that an enrollee has engaged in an incident 
involving violence, drug abuse, or other criminal activity, the 
director shall immediately dismiss the enrollee from the Corps.
    (c) Appeal.--A disciplinary measure taken by a director under this 
section shall be subject to expeditious appeal in accordance with 
procedures established by the State.

SEC. 232. COMMUNITY PARTICIPATION.

    The State shall encourage and cooperate in activities to establish 
a mutually beneficial relationship between Job Corps centers in the 
State and nearby communities. The activities may include the use of any 
local workforce development boards established in the State under 
section 118(b) to provide a mechanism for joint discussion of common 
problems and for planning programs of mutual interest.

SEC. 233. COUNSELING AND PLACEMENT.

    The State shall ensure that enrollees assigned to Job Corps centers 
in the State receive counseling and job placement services, which shall 
be provided, to the maximum extent practicable, through the delivery of 
core services described in section 106(a)(2).

SEC. 234. LEASES AND SALES OF CENTERS.

    (a) Leases.--
            (1) In general.--The Secretary of Labor shall offer to 
        enter into a lease with each State that has an approved State 
        plan submitted under section 104 and in which 1 or more Job 
        Corps centers are located.
            (2) Nominal consideration.--Under the terms of the lease, 
        the Secretary of Labor shall lease the Job Corps centers in the 
        State to the State in return for nominal consideration.
            (3) Indemnity agreement.--To be eligible to lease such a 
        center, a State shall enter into an agreement to hold harmless 
        and indemnify the United States from any liability or claim for 
        damages or injury to any person or property arising out of the 
        lease.
    (b) Sales.--Notwithstanding the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 471 et seq.), the Secretary of Labor 
shall offer each State described in subsection (a)(1) the opportunity 
to purchase the Job Corps centers in the State in return for nominal 
consideration.
SEC. 235. CLOSURE OF JOB CORPS CENTERS.

    (a) National Job Corps Audit.--Not later than March 31, 1997, the 
Governing Board shall conduct an audit of the activities carried out 
under part B of title IV of the Job Training Partnership Act (29 U.S.C. 
1691 et seq.), and submit to the appropriate committees of Congress a 
report containing the results of the audit, including information 
indicating--
            (1) the amount of funds expended for fiscal year 1996 to 
        carry out activities under such part, for each State and for 
        the United States;
            (2) for each Job Corps center funded under such part 
        (referred to in this subtitle as a ``Job Corps center''), the 
        amount of funds expended for fiscal year 1996 under such part 
        to carry out activities related to the direct operation of the 
        center, including funds expended for student training, outreach 
        or intake activities, meals and lodging, student allowances, 
        medical care, placement or settlement activities, and 
        administration;
            (3) for each Job Corps center, the amount of funds expended 
        for fiscal year 1996 under such part through contracts to carry 
        out activities not related to the direct operation of the 
        center, including funds expended for student travel, national 
        outreach, screening, and placement services, national 
        vocational training, and national and regional administrative 
        costs;
            (4) for each Job Corps center, the amount of funds expended 
        for fiscal year 1996 under such part for facility construction, 
        rehabilitation, and acquisition expenses; and
            (5) the amount of funds required to be expended under such 
        part to complete each new or proposed Job Corps center, and to 
        rehabilitate and repair each existing Job Corps center, as of 
        the date of the submission of the report.
    (b) Recommendations of Governing Board.--
            (1) Recommendations.--The Governing Board shall, based on 
        the results of the audit described in subsection (a), make 
        recommendations to the Secretary of Labor, including 
        identifying 25 Job Corps centers to be closed by September 30, 
        1997.
            (2) Considerations.--
                    (A) In general.--In determining whether to 
                recommend that the Secretary of Labor close a Job Corps 
                center, the Governing Board shall consider whether the 
                center--
                            (i) has consistently received low 
                        performance measurement ratings under the 
                        Department of Labor or the Office of Inspector 
                        General Job Corps rating system;
                            (ii) is among the centers that have 
                        experienced the highest number of serious 
                        incidents of violence or criminal activity in 
                        the past 5 years;
                            (iii) is among the centers that require the 
                        largest funding for renovation or repair, as 
                        specified in the Department of Labor Job Corps 
                        Construction/Rehabilitation Funding Needs 
                        Survey, or for rehabilitation or repair, as 
                        reflected in the portion of the audit described 
                        in subsection (a)(5);
                            (iv) is among the centers for which the 
                        highest relative or absolute fiscal year 1996 
                        expenditures were made, for any of the 
                        categories of expenditures described in 
                        paragraph (2), (3), or (4) of subsection (a), 
                        as reflected in the audit described in 
                        subsection (a);
                            (v) is among the centers with the least 
                        State and local support; or
                            (vi) is among the centers with the lowest 
                        rating on such additional criteria as the 
                        Governing Board may determine to be 
                        appropriate.
                    (B) Coverage of states and regions.--
                Notwithstanding subparagraph (A), the Governing Board 
                shall not recommend that the Secretary of Labor close 
                the only Job Corps center in a State or a region of the 
                United States.
                    (C) Allowance for new job corps centers.--
                Notwithstanding any other provision of this section, if 
                the planning or construction of a Job Corps center that 
                received Federal funding for fiscal year 1994 or 1995 
                has not been completed by the date of enactment of this 
                Act--
                            (i) the appropriate entity may complete the 
                        planning or construction and begin operation of 
                        the center; and
                            (ii) the Governing Board shall not evaluate 
                        the center under this Act sooner than 3 years 
                        after the first date of operation of the 
                        center.
            (3)  Report.--Not later than June 30, 1997, the Governing 
        Board shall submit a report to the Secretary of Labor, which 
        shall contain a detailed statement of the findings and 
        conclusions of the Governing Board resulting from the audit 
        described in subsection (a) together with the recommendations 
        described in paragraph (1).
    (c) Closure.--The Secretary of Labor shall, after reviewing the 
report submitted under subsection (b)(3), close 25 Job Corps centers by 
September 30, 1997.

SEC. 236. INTERIM OPERATING PLANS FOR JOB CORPS CENTERS.

    Part B of title IV of the Job Training Partnership Act (29 U.S.C. 
1691 et seq.) is amended by inserting after section 439 the following 
section:

``SEC. 439A. OPERATING PLAN.

    ``(a) Submission of Plan.--To be eligible to operate a Job Corps 
center and receive assistance under this part for fiscal year 1997, an 
entity shall prepare and submit to the Secretary and the Governor of 
the State in which the center is located, and obtain the approval of 
the Secretary for, an operating plan that shall include, at a minimum, 
information indicating--
            ``(1) in quantifiable terms, the extent to which the center 
        will contribute to the achievement of the proposed State goals 
        and State benchmarks identified in the interim plan for the 
        State submitted under section 211 of the Workforce Development 
        Act of 1995;
            ``(2) the extent to which workforce employment activities 
        and workforce education activities delivered through the Job 
        Corps center are directly linked to the workforce development 
        needs of the industry sectors most important to the economic 
        competitiveness of the State; and
            ``(3) an implementation strategy to ensure that all 
        enrollees assigned to the Job Corps center will have access to 
        services through the one-stop delivery of core services 
        described in section 106(a)(2) by the State as identified in 
        the interim plan.
    ``(b) Submission of Comments.--Not later than 30 days after 
receiving an operating plan described in subsection (a), the Governor 
of the State in which the center is located may submit comments on the 
plan to the Secretary.
    ``(c) Approval.--The Secretary shall not approve an operating plan 
described in subsection (a) for a center if the Secretary determines 
that the activities proposed to be carried out through the center are 
not sufficiently integrated with the activities carried out through the 
statewide system of the State in which the center is located.''.

SEC. 237. EFFECTIVE DATE.

    (a) In General.--Except as provided in subsection (b), this chapter 
shall take effect on July 1, 1998.
    (b) Interim Provisions.--Sections 234 and 235, and the amendment 
made by section 236, shall take effect on the date of enactment of this 
Act.

  CHAPTER 2--OTHER WORKFORCE PREPARATION ACTIVITIES FOR AT-RISK YOUTH

SEC. 241. WORKFORCE PREPARATION ACTIVITIES FOR AT-RISK YOUTH.

    (a) In General.--For program year 1998 and each subsequent program 
year, the Governing Board shall make allotments under subsection (c) to 
States to assist the States in paying for the cost of carrying out 
workforce preparation activities for at-risk youth, as described in 
this section.
    (b) State Use of Funds.--
            (1) Core activities.--The State shall use a portion of the 
        funds made available to the State through an allotment received 
        under subsection (c) to establish and operate Job Corps centers 
        as described in chapter 1, if a center located in the State 
        received assistance under part B of title IV of the Job 
        Training Partnership Act for fiscal year 1996 and was not 
        closed in accordance with section 235.
            (2) Permissible activities.--The State may use a portion of 
        the funds described in paragraph (1) to--
                    (A) make grants to eligible entities, as described 
                in subsection (e), to assist the entities in carrying 
                out innovative programs to assist out-of-school at-risk 
                youth in participating in school-to-work activities;
                    (B) make grants to eligible entities, as described 
                in subsection (e), to assist the entities in providing 
                work-based learning as a component of school-to-work 
                activities, including summer jobs linked to year-round 
                school-to-work programs; and
                    (C) carry out other workforce development 
                activities specifically for at-risk youth.
    (c) Allotments.--
            (1) In general.--The Governing Board shall allot to each 
        State an amount equal to the total of--
                    (A) the amount made available to the State under 
                paragraph (2); and
                    (B) the amounts made available to the State under 
                subparagraphs (C), (D), and (E) of paragraph (3).
            (2) Allotments based on fiscal year 1996 appropriations.--
        Using a portion of the funds appropriated under subsection (g) 
        for a fiscal year, the Governing Board shall make available to 
        each State the amount that Job Corps centers in the State 
        expended for fiscal year 1996 under part B of title IV of the 
        Job Training Partnership Act to carry out activities related to 
        the direct operation of the centers, as determined under 
        section 235(a)(2).
            (3) Allotments based on populations.--
                    (A) Definitions.--As used in this paragraph:
                            (i) Individual in poverty.--The term 
                        ``individual in poverty'' means an individual 
                        who--
                                    (I) is not less than age 18;
                                    (II) is not more than age 64; and
                                    (III) is a member of a family (of 1 
                                or more members) with an income at or 
                                below the poverty line.
                            (ii) Poverty line.--The term ``poverty 
                        line'' means the poverty line (as defined by 
                        the Office of Management and Budget, and 
                        revised annually in accordance with section 
                        673(2) of the Community Services Block Grant 
                        Act (42 U.S.C. 9902(2)) applicable to a family 
                        of the size involved, using the most recent 
                        available data provided by the Bureau of the 
                        Census, prior to the program year for which the 
                        allotment is made, and applying the definition 
                        of poverty used by the Bureau of the Census in 
                        compiling the 1990 decennial census.
                    (B) Total allotments.--The Governing Board shall 
                use the remainder of the funds that are appropriated 
                under subsection (g) for a fiscal year, and that are 
                not made available under paragraph (2), to make amounts 
                available under this paragraph.
                    (C) Unemployed individuals.--From funds equal to 
                33\1/3\ percent of such remainder, the Governing Board 
                shall make available to each State an amount that bears 
                the same relationship to such funds as the average 
                number of unemployed individuals (as determined by the 
                Secretary of Labor for the most recent 24-month period 
                for which data are available, prior to the program year 
                for which the allotment is made) in the State bears to 
                the average number of unemployed individuals (as so 
                determined) in the United States.
                    (D) Individuals in poverty.--From funds equal to 
                33\1/3\ percent of such remainder, the Governing Board 
                shall make available to each State an amount that bears 
                the same relationship to such funds as the total number 
                of individuals in poverty in the State bears to the 
                total number of individuals in poverty in the United 
                States.
                    (E) At-risk youth.--From funds equal to 33\1/3\ 
                percent of such remainder, the Governing Board shall 
                make available to each State an amount that bears the 
                same relationship to such funds as the total number of 
                at-risk youth in the State bears to the total number of 
                at-risk youth in the United States.
    (d) State Plan.--
            (1) Information.--To be eligible to receive an allotment 
        under subsection (c), a State shall include, in the State plan 
        to be submitted under section 104, information describing the 
        allocation within the State of the funds made available through 
        the allotment, and how the programs and activities described in 
        subsection (b)(2) will be carried out to meet the State goals 
        and reach the State benchmarks.
            (2) Limitation.--The Governing Board may not require a 
        State to include the information described in paragraph (1) in 
        the State plan to be submitted under section 104 to be eligible 
        to receive an allotment under section 102.
    (e) Application.--To be eligible to receive a grant under 
subparagraph (A) or (B) of subsection (b)(2) from a State, an entity 
shall prepare and submit to the Governor of the State an application at 
such time, in such manner, and containing such information as the 
Governor may require.
    (f) Within State Distribution.--Of the funds allotted to a State 
under subsection (c)(3) for workforce preparation activities for at-
risk youth for a program year--
            (1) 15 percent shall be reserved by the Governor to carry 
        out such activities through the statewide system; and
            (2) 85 percent shall be distributed to local entities to 
        carry out such activities through the statewide system.
    (g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this subtitle, $2,100,000,000 for each of 
fiscal years 1998 through 2001.
    (h) Effective Date.--This chapter shall take effect on July 1, 
1998.
     Subtitle D--Interim Administration of School-to-Work Programs

SEC. 251. ADMINISTRATION OF SCHOOL-TO-WORK PROGRAMS.

    (a) In General.--Any provision of the School-to-Work Opportunities 
Act of 1994 (20 U.S.C. 6101 et seq.) that grants authority to the 
Secretary of Labor or the Secretary of Education shall be considered to 
grant the authority to the Governing Board.
    (b) Effective Date.--Subsection (a) shall take effect on October 1, 
1996.

     Subtitle E--Amendments Relating to Certain Authorizations of 
                             Appropriations

SEC. 261. OLDER AMERICAN COMMUNITY SERVICE EMPLOYMENT ACT.

    Section 508(a)(1) of the Older American Community Service 
Employment Act (42 U.S.C. 3056f(a)(1)) is amended by striking ``for 
fiscal years 1993, 1994, and 1995'' and inserting ``for each of fiscal 
years 1993 through 1998''.

SEC. 262. CARL D. PERKINS VOCATIONAL AND APPLIED TECHNOLOGY EDUCATION 
              ACT.

    (a) In General.--Section 3(a) of the Carl D. Perkins Vocational and 
Applied Technology Education Act (20 U.S.C. 2302(a)) is amended by 
striking ``for each of the fiscal years'' and all that follows through 
``1995'' and inserting ``for each of fiscal years 1992 through 1998''.
    (b) Research.--Section 404(d) of such Act (20 U.S.C. 2404(d)) is 
amended by striking ``for each of the fiscal years'' and all that 
follows through ``1995'' and inserting ``for each of fiscal years 1992 
through 1998''.

SEC. 263. ADULT EDUCATION ACT.

    (a) In General.--Section 313(a) of the Adult Education Act (20 
U.S.C. 1201b(a)) is amended by striking ``for each of the fiscal 
years'' and all that follows through ``1995'' and inserting ``for each 
of fiscal years 1993 through 1998''.
    (b) State Literacy Resource Centers.--Section 356(k) of such Act 
(20 U.S.C. 1208aa(k)) is amended by striking ``for each of the fiscal 
years 1994 and 1995'' and inserting ``for each of fiscal years 1994 
through 1998''.
    (c) Business, Industry, Labor, and Education Partnerships for 
Workplace Literacy.--Section 371(e)(1) of such Act (20 U.S.C. 
1211(e)(1)) is amended by striking ``for each of the fiscal years'' and 
all that follows through ``1995'' and inserting ``for each of fiscal 
years 1993 through 1998''.
    (d) National Institute for Literacy.--Section 384(n)(1) of such Act 
(20 U.S.C. 1213c(n)(1)) is amended by striking ``for each of the fiscal 
years'' and all that follows through ``1996'' and inserting ``for each 
of fiscal years 1992 through 1998''.

                     TITLE III--NATIONAL ACTIVITIES

SEC. 301. FEDERAL PARTNERSHIP.

    (a) Establishment.--There is established a Workforce Development 
Partnership that shall administer the activities established under this 
Act. The Federal Partnership shall be a Government corporation, as 
defined in section 103 of title 5, United States Code. The principal 
office of the Federal Partnership shall be located in the District of 
Columbia.
    (b) Governing Board.--
            (1) Composition.--There shall be in the Federal Partnership 
        a Governing Board that shall be composed of 13 individuals, 
        including--
                    (A) 7 individuals who are representative of 
                business and industry in the United States, appointed 
                by the President by and with the advice and consent of 
                the Senate;
                    (B) 2 individuals who are representative of labor 
                and workers in the United States, appointed by the 
                President by and with the advice and consent of the 
                Senate;
                    (C) 2 individuals who are representative of 
                education providers, 1 of whom is a State or local 
                adult education provider and 1 of whom is a State or 
                local vocational education provider, appointed by the 
                President by and with the advice and consent of the 
                Senate; and
                    (D) 2 Governors, representing different political 
                parties, appointed by the President by and with the 
                advice and consent of the Senate.
            (2) Terms.--Each member of the Governing Board shall serve 
        for a term of 3 years, except that, as designated by the 
        President--
                    (A) 5 of the members first appointed to the 
                Governing Board shall serve for a term of 2 years;
                    (B) 4 of the members first appointed to the 
                Governing Board shall serve for a term of 3 years; and
                    (C) 4 of the members first appointed to the 
                Governing Board shall serve for a term of 4 years.
            (3) Vacancies.--Any vacancy in the Governing Board shall 
        not affect the powers of the Governing Board, but shall be 
        filled in the same manner as the original appointment. Any 
        member appointed to fill such a vacancy shall serve for the 
        remainder of the term for which the predecessor of such member 
        was appointed.
            (4) Duties and powers.--
                    (A) Powers.--The powers of the Federal Partnership 
                shall be vested in the Governing Board.
                    (B) Duties.--The Governing Board shall--
                            (i) oversee the development and 
                        implementation of the nationwide integrated 
                        labor market information system described in 
                        section 303, and the job placement 
                        accountability system described in section 
                        131(d);
                            (ii) establish model benchmarks for each of 
                        the benchmarks referred to in paragraph (1), 
                        (2), or (3) of section 131(c), at achievable 
                        levels based on existing (as of the date of the 
                        establishment of the benchmarks) workforce 
                        development efforts in the States;
                            (iii) negotiate State benchmarks with 
                        States in accordance with section 131(c)(5);
                            (iv) review and approve plans under section 
                        104, and make allotments under section 102;
                            (v) receive and review reports described in 
                        section 131(a);
                            (vi) prepare and submit to the appropriate 
                        committees of Congress an annual report on the 
                        absolute and relative performance of States 
                        toward reaching the State benchmarks;
                            (vii) award annual incentive grants under 
                        section 132(a);
                            (viii) initiate sanctions described in 
                        section 132(b);
                            (ix) disseminate information to States on 
                        the best practices used by States to establish 
                        and carry out activities through statewide 
                        systems, including model programs to provide 
                        structured work and learning experiences for 
                        welfare recipients;
                            (x) perform the duties specified for the 
                        Governing Board in title II, including subtitle 
                        C of title II (relating to the Job Corps);
                            (xi) review all federally funded programs 
                        providing workforce development activities, 
                        other than programs carried out under this Act, 
                        and submit recommendations to Congress on how 
                        the federally funded programs could be 
                        integrated into the statewide systems of the 
                        States, including recommendations on the 
                        development of common terminology for 
                        activities and services provided through the 
                        programs;
                            (xii) review and approve the transition 
                        workplans developed by the Secretary of Labor 
                        and the Secretary of Education in accordance 
                        with sections 305 and 306; and
                            (xiii) oversee all activities of the 
                        Federal Partnership.
                    (C) Final determinations.--Notwithstanding any 
                other provision of this Act, the Secretary of Labor and 
                the Secretary of Education shall jointly make the final 
                determinations with respect to the approval of State 
                plans, and the disbursement of funds, under this Act.
            (5) Chairperson.--The position of Chairperson of the 
        Governing Board shall rotate annually among the appointed 
        members described in paragraph (1)(A).
            (6) Meetings.--The Governing Board shall meet at the call 
        of the Chairperson but not less often than 4 times during each 
        calendar year. Five members of the Governing Board shall 
        constitute a quorum. All decisions of the Governing Board with 
        respect to the exercise of the duties and powers of the 
        Governing Board shall be made by a majority vote of the members 
        of the Governing Board.
            (7) Compensation and travel expenses.--
                    (A) Compensation.--Each member of the Governing 
                Board who is not an officer or employee of the Federal 
                Government shall be compensated at a rate to be fixed 
                by the President but not to exceed the daily equivalent 
                of the maximum rate authorized for a position above GS-
                15 of the General Schedule under section 5108 of title 
                5, United States Code, for each day (including travel 
                time) during which such member is engaged in the 
                performance of the duties of the Governing Board. All 
                members of the Governing Board who are officers or 
                employees of the United States shall serve without 
                compensation in addition to compensation received for 
                their services as officers or employees of the United 
                States.
                    (B) Expenses.--While away from their homes or 
                regular places of business on the business of the 
                Governing Board, members of such Governing Board shall 
                be allowed travel expenses, including per diem in lieu 
                of subsistence, at rates authorized for employees of 
                agencies under subchapter I of chapter 57 of title 5, 
                United States Code, for persons employed intermittently 
                in the Government service.
            (8) Date of appointment.--The Governing Board shall be 
        appointed not later than September 30, 1996.
    (c) Director.--
            (1) In general.--There shall be in the Federal Partnership 
        a Director, who shall be appointed by the President, by and 
        with the advice and consent of the Senate.
            (2) Compensation.--The Director shall be compensated at the 
        rate provided for level IV of the Executive Schedule under 
        section 5315 of title 5, United States Code.
            (3) Duties.--The Director shall--
                    (A) make recommendations to the Governing Board 
                regarding the activities described in subsection 
                (b)(4)(B); and
                    (B) carry out the general administration and 
                enforcement of this Act.
            (4) Date of appointment.--The Director shall be appointed 
        not later than September 30, 1996.
    (d) Detail of Government Employees.--Any Federal Government 
employee may be detailed to the Federal Partnership without 
reimbursement, and such detail shall be without interruption or loss of 
civil service or privilege. The Secretary of Education, the Secretary 
of Labor, and the Secretary of Health and Human Services shall detail a 
sufficient number of employees to the Federal Partnership for the 
period beginning October 1, 1996 and ending June 30, 1998 to enable the 
Federal Partnership to carry out the functions of the Federal 
Partnership during such period.
    (e) Inspector General.--There shall be an Office of the Inspector 
General in the Federal Partnership. The Office shall be headed by an 
Inspector General appointed in accordance with the Inspector General 
Act of 1978 (5 U.S.C. App.). The Inspector General shall carry out the 
duties prescribed in such Act.
    (f) Authorization of Appropriations.--There is authorized to be 
appropriated for fiscal years 1996 and 1997 $500,000 to the Governing 
Board for the administration of this Act.
    (g) Conforming Amendment.--Section 11 of the Inspector General Act 
of 1978 (5 U.S.C. App.) is amended--
            (1) in paragraph (1), by inserting ``the Governing Board of 
        the Workforce Development Partnership;'' after ``the Attorney 
        General;''; and
            (2) in paragraph (2), by inserting ``the Workforce 
        Development Partnership;'' after ``Treasury;''.
SEC. 302. NATIONAL ASSESSMENT OF VOCATIONAL EDUCATION PROGRAMS.

    (a) In General.--The Assistant Secretary for Educational Research 
and Improvement (referred to in this section as the ``Assistant 
Secretary'') shall conduct a national assessment of vocational 
education programs assisted under this Act, through studies and 
analyses conducted independently through competitive awards.
    (b) Independent Advisory Panel.--The Assistant Secretary shall 
appoint an independent advisory panel, consisting of vocational 
education administrators, educators, researchers, and representatives 
of business, industry, labor, and other relevant groups, to advise the 
Assistant Secretary on the implementation of such assessment, including 
the issues to be addressed and the methodology of the studies involved, 
and the findings and recommendations resulting from the assessment. The 
panel, in the discretion of the panel, may submit to Congress an 
independent analysis of the findings and recommendations resulting from 
the assessment. The Federal Advisory Committee Act (5 U.S.C. App.) 
shall not apply to the panel established under this subsection.
    (c) Contents.--The assessment required under subsection (a) shall 
include descriptions and evaluations of--
            (1) the effect of this Act on State and tribal 
        administration of vocational education programs and on local 
        vocational education practices, including the capacity of 
        State, tribal, and local vocational education systems to 
        address the purposes of this Act;
            (2) expenditures at the Federal, State, tribal, and local 
        levels to address program improvement in vocational education, 
        including the impact of Federal allocation requirements (such 
        as within-State distribution formulas) on the delivery of 
        services;
            (3) preparation and qualifications of teachers of 
        vocational and academic curricula in vocational education 
        programs, as well as shortages of such teachers;
            (4) participation in vocational education programs;
            (5) academic and employment outcomes of vocational 
        education, including analyses of--
                    (A) the effect of educational reform on vocational 
                education;
                    (B) the extent and success of integration of 
                academic and vocational curricula;
                    (C) the success of the school-to-work transition; 
                and
                    (D) the degree to which vocational training is 
                relevant to subsequent employment;
            (6) employer involvement in, and satisfaction with, 
        vocational education programs;
            (7) the effect of benchmarks, performance measures, and 
        other measures of accountability on the delivery of vocational 
        education services; and
            (8) the degree to which minority students are involved in 
        vocational student organizations.
    (d) Consultation.--
            (1) In general.--The Secretary of Education shall consult 
        with the Committee on Economic and Educational Opportunities of 
        the House of Representatives and the Committee on Labor and 
        Human Resources of the Senate in the design and implementation 
        of the assessment required under subsection (a).
            (2) Reports.--The Secretary of Education shall submit to 
        Congress--
                    (A) an interim report regarding the assessment on 
                or before January 1, 2000; and
                    (B) a final report, summarizing all studies and 
                analyses that relate to the assessment and that are 
                completed after the assessment, on or before July 1, 
                2000.
            (3) Prohibition.--Notwithstanding any other provision of 
        law or regulation, the reports required by this subsection 
        shall not be subject to any review outside of the Office of 
        Educational Research and Improvement before their transmittal 
        to Congress, but the President, the Secretary, and the 
        independent advisory panel established under subsection (b) may 
        make such additional recommendations to Congress with respect 
        to the assessment as the President, Secretary, or panel 
        determine to be appropriate.
    (e) Effective Date.--This section shall take effect on July 1, 
1998.
SEC. 303. LABOR MARKET INFORMATION.

    (a) Federal Responsibilities.--The Governing Board, in accordance 
with the provisions of this section, shall oversee the development, 
maintenance, and continuous improvement of a nationwide integrated 
labor market information system that shall include--
            (1) statistical data from cooperative statistical survey 
        and projection programs and data from administrative reporting 
        systems, that, taken together, shall enumerate, estimate, and 
        project the supply and demand for labor at the substate, State, 
        and national levels in a timely manner, including data on--
                    (A) the demography, socioeconomic characteristics, 
                and current employment status of the substate, State, 
                and national populations (as of the date of the 
                collection of the data), including self-employed, part-
                time, and seasonal workers;
                    (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 populations;
                    (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 the 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 substate area employment and consumer 
        information (which shall be current, comprehensive, automated, 
        accessible, easy to understand, and in a form useful for 
        facilitating immediate employment, entry into education and 
        training programs, and career exploration) on--
                    (A) job openings, locations, hiring requirements, 
                and application procedures, including profiles of 
                industries in the local labor market that describe the 
                nature of work performed, employment requirements, and 
                patterns in wages and benefits;
                    (B) jobseekers, including the education, training, 
                and employment experience of the jobseekers; and
                    (C) the cost and effectiveness of providers of 
                workforce employment activities, workforce education 
                activities, and flexible workforce activities, 
                including the percentage of program completion, 
                acquisition of skills to meet industry-recognized skill 
                standards, continued education, job placement, and 
                earnings, by participants, and other information that 
                may be useful in facilitating informed choices among 
                providers by participants;
            (3) technical standards for labor market information that 
        will--
                    (A) ensure compatibility of the information and the 
                ability to aggregate the information from substate 
                areas to State and national levels;
                    (B) support standardization and aggregation of the 
                data from administrative reporting systems;
                    (C) include--
                            (i) classification and coding systems for 
                        industries, occupations, skills, programs, and 
                        courses;
                            (ii) nationally standardized definitions of 
                        labor market terms, including terms related to 
                        State benchmarks established pursuant to 
                        section 131(c);
                            (iii) quality control mechanisms for the 
                        collection and analysis of labor market 
                        information; and
                            (iv) common schedules for collection and 
                        dissemination of labor market information; and
                    (D) eliminate gaps and duplication in statistical 
                undertakings, with a high priority given to the 
                systemization of wage surveys;
            (4) an analysis of data and information described in 
        paragraphs (1) and (2) for uses such as--
                    (A) national, State, and substate area economic 
                policymaking;
                    (B) planning and evaluation of workforce 
                development activities;
                    (C) the implementation of Federal policies, 
                including the allocation of Federal funds to States and 
                substate areas; and
                    (D) research on labor market dynamics;
            (5) dissemination mechanisms for data and analysis, 
        including mechanisms that may be standardized among the States; 
        and
            (6) programs of technical assistance for States and 
        substate areas in the development, maintenance, utilization, 
        and continuous improvement of the data, information, standards, 
        analysis, and dissemination mechanisms, described in paragraphs 
        (1) through (5).
    (b) Joint Federal-State Responsibilities.--
            (1) In general.--The nationwide integrated labor market 
        information system shall be planned, administered, overseen, 
        and evaluated through a cooperative governance structure 
        involving the Federal Government and the States receiving 
        financial assistance under this Act.
            (2) Annual plan.--The Governing Board shall, with the 
        assistance of the Bureau of Labor Statistics and other Federal 
        agencies, where appropriate, prepare an annual plan that shall 
        be the mechanism for achieving the cooperative Federal-State 
        governance structure for the nationwide integrated labor market 
        information system. The plan shall--
                    (A) establish goals for the development and 
                improvement of a nationwide integrated labor market 
                information system based on information needs for 
                achieving economic growth and productivity, 
                accountability, fund allocation equity, and an 
                understanding of labor market characteristics and 
                dynamics;
                    (B) describe the elements of the system, 
                including--
                            (i) standards, definitions, formats, 
                        collection methodologies, and other necessary 
                        system elements, for use in collecting the data 
                        and information described in paragraphs (1) and 
                        (2) of subsection (a); and
                            (ii) assurances that--
                                    (I) data will be sufficiently 
                                timely and detailed for uses including 
                                the uses described in subsection 
                                (a)(4);
                                    (II) administrative records will be 
                                standardized to facilitate the 
                                aggregation of data from substate areas 
                                to State and national levels and to 
                                support the creation of new statistical 
                                series from program records; and
                                    (III) paperwork and reporting 
                                requirements on employers and 
                                individuals will be reduced;
                    (C) recommend needed improvements in administrative 
                reporting systems to be used for the nationwide 
                integrated labor market information system;
                    (D) describe the current spending on integrated 
                labor market information activities from all sources, 
                assess the adequacy of the funds spent, and identify 
                the specific budget needs of the Federal Government and 
                States with respect to implementing and improving the 
                nationwide integrated labor market information system;
                    (E) develop a budget for the nationwide integrated 
                labor market information system that--
                            (i) accounts for all funds described in 
                        subparagraph (D) and any new funds made 
                        available pursuant to this Act; and
                            (ii) describes the relative allotments to 
                        be made for--
                                    (I) operating the cooperative 
                                statistical programs pursuant to 
                                subsection (a)(1);
                                    (II) developing and providing 
                                employment and consumer information 
                                pursuant to subsection (a)(2);
                                    (III) ensuring that technical 
                                standards are met pursuant to 
                                subsection (a)(3); and
                                    (IV) providing the analysis, 
                                dissemination mechanisms, and technical 
                                assistance under paragraphs (4), (5), 
                                and (6) of subsection (a), and matching 
                                data;
                    (F) describe the involvement of States in 
                developing the plan by holding formal consultations 
                conducted in cooperation with representatives of the 
                Governors of each State or the State workforce 
                development board described in section 105, where 
                appropriate, pursuant to a process established by the 
                Governing Board; and
                    (G) provide for technical assistance to the States 
                for the development of statewide comprehensive labor 
                market information systems described in subsection (c), 
                including assistance with the development of easy-to-
                use software and hardware, or uniform information 
                displays.
        For purposes of applying Office of Management and Budget 
        Circular A-11 to determine persons eligible to participate in 
        deliberations relating to budget issues for the development of 
        the plan, the representatives of the Governors of each State 
        and the State workforce development board described in 
        subparagraph (F) shall be considered to be employees of the 
        Department of Labor.
    (c) State Responsibilities.--
            (1) Designation of state agency.--In order to receive 
        Federal financial assistance under this Act, the Governor of a 
        State shall--
                    (A) establish an interagency process for the 
                oversight of a statewide comprehensive labor market 
                information system and for the participation of the 
                State in the cooperative Federal-State governance 
                structure for the nationwide integrated labor market 
                information system; and
                    (B) designate a single State agency or entity 
                within the State to be responsible for the management 
                of the statewide comprehensive labor market information 
                system.
            (2) Duties.--In order to receive Federal financial 
        assistance under this Act, the State agency or entity within 
        the State designated under paragraph (1)(B) shall--
                    (A) consult with employers and local workforce 
                development boards described in section 118(b), where 
                appropriate, about the labor market relevance of the 
                data to be collected and displayed through the 
                statewide comprehensive labor market information 
                system;
                    (B) develop, maintain, and continuously improve the 
                statewide comprehensive labor market information 
                system, which shall--
                            (i) include all of the elements described 
                        in paragraphs (1), (2), (3), (4), (5), and (6) 
                        of subsection (a); and
                            (ii) provide the consumer information 
                        described in clauses (v) and (vi) of section 
                        106(a)(2)(B) in a manner that shall be 
                        responsive to the needs of business, industry, 
                        workers, and jobseekers;
                    (C) ensure the performance of contract and grant 
                responsibilities for data collection, analysis, and 
                dissemination, through the statewide comprehensive 
                labor market information system;
                    (D) conduct such other data collection, analysis, 
                and dissemination activities to ensure that State and 
                substate area labor market information is 
                comprehensive;
                    (E) 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;
                    (F) participate in the development of the national 
                annual plan described in subsection (b)(2); and
                    (G) ensure that the matches required for the job 
                placement accountability system by section 131(d)(2)(A) 
                are made for the State and for other States.
            (3) Rule of construction.--Nothing in this Act shall be 
        construed as limiting the ability of a State agency to conduct 
        additional data collection, analysis, and dissemination 
        activities with State funds or with Federal funds from sources 
        other than this Act.
    (d) Effective Date.--This section shall take effect on July 1, 
1998.

SEC. 304. NATIONAL CENTER FOR RESEARCH IN EDUCATION AND WORKFORCE 
              DEVELOPMENT.

    (a) Grants Authorized.--From amounts made available under section 
134(b)(5), the Governing Board is authorized--
            (1) for the period beginning on the date of enactment of 
        this Act and ending on December 31, 1997, to support a national 
        center that was established under section 404 of the Carl D. 
        Perkins Vocational and Applied Technology Education Act and 
        that was in existence on the day before the date of enactment 
        of this Act, in accordance with such section 404 (as such 
        section was in effect on the day before the date of enactment 
        of this Act); and
            (2) for the period after December 31, 1997, to award a 
        grant, on a competitive basis, to an institution of higher 
        education, public or private nonprofit organization or agency, 
        or a consortium of such institutions, organizations, or 
        agencies, to enable such institution, organization, agency, or 
        consortium to establish a national center to carry out the 
        activities described in subsection (b).
    (b) Authorized Activities.--Grant funds made available under this 
section shall be used by the national center assisted under subsection 
(a)(2)--
            (1) to increase the effectiveness and improve the 
        implementation of workforce development programs, including 
        conducting research and development and providing technical 
        assistance with respect to--
                    (A) combining academic and vocational education;
                    (B) connecting classroom instruction with work-
                based learning;
                    (C) creating a continuum of educational programs 
                that provide multiple exit points for employment, which 
                may include changes or development of instructional 
                materials or curriculum;
                    (D) establishing high quality support services for 
                all students to ensure access to workforce development 
                programs, educational success, and job placement 
                assistance;
                    (E) developing new models for remediation of basic 
                academic skills, which models shall incorporate 
                appropriate instructional methods, rather than using 
                rote and didactic methods;
                    (F) identifying ways to establish links among 
                educational and job training programs at the State and 
                local levels;
                    (G) developing new models for career guidance, 
                career information, and counseling services;
                    (H) identifying economic and labor market changes 
                that will affect workforce needs;
                    (I) conducting preparation of teachers and 
                professionals who work with programs funded under this 
                Act; and
                    (J) obtaining information on practices in other 
                countries that may be adapted for use in the United 
                States;
            (2) to provide assistance to States and local recipients of 
        assistance under this Act in developing and using systems of 
        performance measures and standards for improvement of programs 
        and services; and
            (3) to maintain a clearinghouse that will provide data and 
        information to Federal, State, and local organizations and 
        agencies about the condition of statewide systems and programs 
        funded under this Act, which data and information shall be 
        disseminated in a form that is useful to practitioners and 
        policymakers.
    (c) Other Activities.--The Governing Board may request that the 
national center assisted under subsection (a)(2) conduct activities not 
described in subsection (b), or study topics not described in 
subsection (b), as the Governing Board determines to be necessary to 
carry out this Act.
    (d) Identification of Current Needs.--The national center assisted 
under subsection (a)(2) shall identify current needs (as of the date of 
the identification) for research and technical assistance through a 
variety of sources including a panel of Federal, State, and local level 
practitioners.
    (e) Summary Report.--The national center assisted under subsection 
(a)(2) shall annually prepare and submit to the Governing Board and 
Congress a report summarizing the research findings obtained, and the 
results of development and technical assistance activities carried out, 
under this section.
    (f) Definition.--As used in this section, the term ``institution of 
higher education'' has the meaning given the term in section 1201(a) of 
the Higher Education Act of 1965 (20 U.S.C. 1141(a)).
    (g) Effective Date.--This section shall take effect on July 1, 
1998.
SEC. 305. TRANSFERS TO FEDERAL PARTNERSHIP.

    (a) Definitions.--For purposes of this section, unless otherwise 
provided or indicated by the context--
            (1) the term ``Federal agency'' has the meaning given to 
        the term ``agency'' by section 551(1) of title 5, United States 
        Code;
            (2) the term ``function'' means any duty, obligation, 
        power, authority, responsibility, right, privilege, activity, 
        or program; and
            (3) the term ``office'' includes any office, 
        administration, agency, institute, unit, organizational entity, 
        or component thereof.
    (b) Transfer of Functions.--
            (1) In general.--There are transferred to the Federal 
        Partnership, in accordance with subsection (c), all functions 
        that the Secretary of Labor or the Secretary of Education 
        exercised before the effective date of this section (including 
        all related functions of any officer or employee of the 
        Department of Labor or the Department of Education) that relate 
        to a covered activity and that are minimally necessary to carry 
        out the functions of the Federal Partnership. The authority of 
        a transferred employee to carry out a function that relates to 
        a covered activity shall terminate on July 1, 1998.
            (2) Office of inspector general.--There are transferred to 
        the Federal Partnership, in accordance with subsection (c), all 
        functions that the Secretary of Labor or the Secretary of 
        Education, acting through the Office of Inspector General of 
        the Department of Labor or of the Department of Education, 
        exercised before the effective date of this section (including 
        all related functions of any officer or employee of the 
        Department of Labor or the Department of Education) that relate 
        to the auditing or investigation of a covered activity and that 
        are minimally necessary to carry out the functions of the 
        Federal Partnership. The authority of a transferred employee to 
        carry out a function that relates to the auditing or 
        investigation of a covered activity shall terminate on July 1, 
        1998.
    (c) Determinations of Functions by the Governing Board.--
            (1) Transition workplan.--
                    (A) In general.--Not later than the date of 
                appointment of the Governing Board, the Secretary of 
                Labor and the Secretary of Education shall prepare and 
                submit to the Governing Board a proposed workplan that 
                specifies the steps that the Secretaries will take, 
                during the period ending on July 1, 1998, to carry out 
                the transfers described in subsection (b).
                    (B) Contents.--The proposed workplan shall include, 
                at a minimum--
                            (i) an analysis of the functions that 
                        officers and employees of the Department of 
                        Labor and the Department of Education carry out 
                        (as of the date of the submission of the 
                        workplan) that relate to a covered activity or 
                        to the auditing or investigation of a covered 
                        activity;
                            (ii) information on the levels of personnel 
                        and funding used to carry out the functions (as 
                        of such date);
                            (iii) information on the proposed 
                        organizational structure for the Federal 
                        Partnership;
                            (iv) a determination of the functions 
                        described in clause (i) that are minimally 
                        necessary to carry out the functions of the 
                        Federal Partnership; and
                            (v) information on the levels of personnel 
                        and funding that are minimally necessary to 
                        carry out the functions of the Federal 
                        Partnership.
            (2) Review.--Not later than 30 days after the date of 
        submission of the workplan, the Governing Board shall--
                    (A) review the workplan;
                    (B) approve the workplan or prepare a revised 
                workplan that contains the analysis and information 
                described in paragraph (1)(B), including a 
                determination of the functions described in paragraph 
                (1)(B)(iv), which shall be transferred under subsection 
                (b); and
                    (C) submit the approved or revised workplan to the 
                appropriate committees of Congress.
    (d) Personnel Provisions.--
            (1) Appointments.--The Director may appoint and fix the 
        compensation of such officers and employees, including 
        investigators, attorneys, and administrative law judges, as may 
        be necessary to carry out the functions of the Federal 
        Partnership. Except as otherwise provided by law, such officers 
        and employees shall be appointed in accordance with the civil 
        service laws and their compensation fixed in accordance with 
        title 5, United States Code.
            (2) Experts and consultants.--The Director may obtain the 
        services of experts and consultants in accordance with section 
        3109 of title 5, United States Code, and compensate such 
        experts and consultants for each day (including travel time) at 
        rates not in excess of the rate of pay for level IV of the 
        Executive Schedule under section 5315 of such title. The 
        Director may pay experts and consultants who are serving away 
        from their homes or regular place of business travel expenses 
        and per diem in lieu of subsistence at rates authorized by 
        sections 5702 and 5703 of such title for persons in Government 
        service employed intermittently.
    (e) Delegation and Assignment.--Except where otherwise expressly 
prohibited by law or otherwise provided by this section, the Governing 
Board may delegate any function transferred or granted to such Federal 
Partnership after the effective date of this section to such officers 
and employees of the Federal Partnership as the Governing Board may 
designate, and may authorize successive redelegations of such functions 
as may be necessary or appropriate. No delegation of functions by the 
Governing Board under this subsection or under any other provision of 
this section shall relieve such Governing Board of responsibility for 
the administration of such functions.
    (f) Reorganization.--The Governing Board may allocate or reallocate 
any function transferred or granted to such Federal Partnership after 
the effective date of this section among the officers of the Federal 
Partnership, and establish, consolidate, alter, or discontinue such 
organizational entities in the Federal Partnership as may be necessary 
or appropriate.
    (g) Rules.--The Governing Board is authorized to prescribe, in 
accordance with the provisions of chapters 5 and 6 of title 5, United 
States Code, such rules and regulations as the Governing Board 
determines to be necessary or appropriate to administer and manage the 
functions of the Federal Partnership.
    (h) Transfer and Allocations of Appropriations and Personnel.--
            (1) In general.--Except as otherwise provided in this 
        section, the personnel employed in connection with, and the 
        assets, liabilities, contracts, property, records, and 
        unexpended balances of appropriations, authorizations, 
        allocations, and other funds employed, used, held, arising 
        from, available to, or to be made available in connection with 
        the functions transferred by this section, subject to section 
        1531 of title 31, United States Code, shall be transferred to 
        the Federal Partnership. Unexpended funds transferred pursuant 
        to this subsection shall be used only to carry out the 
        functions of the Federal Partnership.
            (2) Existing facilities and other federal resources.--
        Pursuant to paragraph (1), the Secretary of Labor and the 
        Secretary of Education shall supply such office facilities, 
        office supplies, support services, and related expenses as may 
        be minimally necessary to carry out the functions of the 
        Governing Board. None of the funds made available under this 
        Act may be used for the construction of office facilities for 
        the Federal Partnership.
    (i) Incidental Transfers.--The Director of the Office of Management 
and Budget, at such time or times as the Director shall provide, may 
make such determinations as may be necessary with regard to the 
functions transferred by this section, and to make such additional 
incidental dispositions of personnel, assets, liabilities, grants, 
contracts, property, records, and unexpended balances of 
appropriations, authorizations, allocations, and other funds held, 
used, arising from, available to, or to be made available in connection 
with such functions, as may be necessary to carry out the provisions of 
this section. The Director of the Office of Management and Budget shall 
provide for the termination of the affairs of all entities terminated 
by this section and for such further measures and dispositions as may 
be necessary to effectuate the objectives of this section.
    (j) Effect on Personnel.--
            (1) Termination of certain positions.--Positions whose 
        incumbents are appointed by the President, by and with the 
        advice and consent of the Senate, the functions of which are 
        transferred by this section, shall terminate on the effective 
        date of this section.
            (2) Actions.--
                    (A) In general.--The Secretary of Labor and the 
                Secretary of Education shall take such actions as may 
                be necessary, including reduction in force actions, 
                consistent with sections 3502 and 3595 of title 5, 
                United States Code, to ensure that the positions of 
                personnel that relate to a covered activity and are not 
                transferred under subsection (b)(1) are separated from 
                service.
                    (B) Scope.--The Secretary of Labor and the 
                Secretary of Education shall take the actions described 
                in subparagraph (A) with respect to not less than \1/3\ 
                of the positions of personnel that relate to a covered 
                activity.
                    (C) Definition.--As used in this paragraph, the 
                term ``positions of personnel that relate to a covered 
                activity'' shall not include any position in an Office 
                of Inspector General that relates to the auditing or 
                investigation of a covered activity.
    (k) Savings Provisions.--
            (1) Suits not affected.--The provisions of this section 
        shall not affect suits commenced before the effective date of 
        this section, and in all such suits, proceedings shall be had, 
        appeals taken, and judgments rendered in the same manner and 
        with the same effect as if this section had not been enacted.
            (2) Nonabatement of actions.--No suit, action, or other 
        proceeding commenced by or against the Department of Labor or 
        the Department of Education, or by or against any individual in 
        the official capacity of such individual as an officer of the 
        Department of Labor or the Department of Education, shall abate 
        by reason of the enactment of this section.
    (l) Transition.--The Governing Board may utilize--
            (1) the services of officers, employees, and other 
        personnel of the Department of Labor or the Department of 
        Education with respect to functions transferred to the Federal 
        Partnership by this section; and
            (2) funds appropriated to such functions;
for such period of time as may reasonably be needed to facilitate the 
orderly implementation of this section.
    (m) References.--A reference in any other Federal law, Executive 
order, rule, regulation, or delegation of authority, or any document of 
or relating to--
            (1) the Secretary of Labor or the Secretary of Education 
        with regard to functions transferred under subsection (b), 
        shall be deemed to refer to the Governing Board; and
            (2) the Department of Labor or the Department of Education 
        with regard to functions transferred under subsection (b), 
        shall be deemed to refer to the Federal Partnership.
    (n) Additional Conforming Amendments.--
            (1) Recommended legislation.--After consultation with the 
        appropriate committees of Congress and the Director of the 
        Office of Management and Budget, the Governing Board shall 
        prepare and submit to Congress recommended legislation 
        containing technical and conforming amendments to reflect the 
        changes made by this section.
            (2) Submission to congress.--Not later than March 31, 1997, 
        the Governing Board shall submit the recommended legislation 
        referred to in paragraph (1).
    (o) Effective Date.--
            (1) In general.--Except as provided in paragraphs (2) and 
        (3), this section shall take effect on June 30, 1998.
            (2) Regulations and conforming amendments.--Subsections (g) 
        and (n) shall take effect on September 30, 1996.
            (3) Workplan.--Subsection (c) shall take effect on the date 
        of enactment of this Act.

SEC. 306. TRANSFERS TO OTHER FEDERAL AGENCIES AND OFFICES.

    (a) Transfer.--There are transferred to the appropriate receiving 
agency, in accordance with subsection (b), all functions that the 
Secretary of Labor, acting through the Employment and Training 
Administration, or the Secretary of Education, acting through the 
Office of Vocational and Adult Education, exercised before the 
effective date of this section (including all related functions of any 
officer or employee of the Employment and Training Administration or 
the Office of Vocational and Adult Education) that do not relate to a 
covered activity.
    (b) Determinations of Functions and Appropriate Receiving 
Agencies.--
            (1) Transition workplan.--
                    (A) In general.--Not later than 90 days after the 
                date of appointment of the Governing Board, the 
                Secretary of Labor and the Secretary of Education shall 
                prepare and submit to the Governing Board a proposed 
                workplan that specifies the steps that the Secretaries 
                will take, during the period ending on July 1, 1998, to 
                carry out the transfer described in subsection (a).
                    (B) Contents.--The proposed workplan shall include, 
                at a minimum--
                            (i) a determination of the functions that 
                        officers and employees of the Employment and 
                        Training Administration and the Office of 
                        Vocational and Adult Education carry out (as of 
                        the date of the submission of the workplan) 
                        that do not relate to a covered activity; and
                            (ii) a determination of the appropriate 
                        receiving agencies for the functions, based on 
                        factors including increased efficiency and 
                        elimination of duplication of functions.
            (2) Review.--Not later than 30 days after the date of 
        submission of the workplan, the Governing Board shall--
                    (A) review the workplan;
                    (B) approve the workplan or prepare a revised 
                workplan that contains--
                            (i) a determination of the functions 
                        described in paragraph (1)(B)(i), which shall 
                        be transferred under subsection (a); and
                            (ii) a determination of the appropriate 
                        receiving agencies described in paragraph 
                        (1)(B)(ii), based on the factors described in 
                        such paragraph, to which the functions shall be 
                        transferred under subsection (a); and
                    (C) submit the approved or revised workplan to the 
                appropriate committees of Congress.
            (3) Report.--Not later than July 1, 1998, the Secretary of 
        Education and the Secretary of Labor shall submit to the 
        appropriate committees of Congress information on the transfers 
        required by this section.
    (c) Application of Authorities.--
            (1) In general.--
                    (A) Application.--Subsection (a), and subsections 
                (d) through (n), of section 305 (other than subsections 
                (g), (h)(2), (j)(2), and (n)) shall apply to transfers 
                under this section, in the same manner and to the same 
                extent as the subsections apply to transfers under 
                section 305.
                    (B) Regulations and conforming amendments.--
                Subsections (g) and (n) shall apply to transfers under 
                this section, in the same manner and to the same extent 
                as the subsections apply to transfers under section 
                305.
            (2) References.--For purposes of the application of the 
        subsections described in paragraph (1) (other than subsections 
        (h)(2) and (j)(2) of section 305) to transfers under this 
        section--
                    (A) references to the Federal Partnership shall be 
                deemed to be references to the appropriate receiving 
                agency, as determined in the approved or revised 
                workplan referred to in subsection (b)(2);
                    (B) references to the Director or Governing Board 
                shall be deemed to be references to the head of the 
                appropriate receiving agency; and
                    (C) references to transfers in subsections (e) and 
                (f) of section 305 shall be deemed to include transfers 
                under this section.
            (3) Administration.--Unexpended funds transferred pursuant 
        to this section shall be used only for the purposes for which 
        the funds were originally authorized and appropriated.
            (4) Continuing effect of legal documents.--All orders, 
        determinations, rules, regulations, permits, agreements, 
        grants, contracts, certificates, licenses, registrations, 
        privileges, and other administrative actions--
                    (A) that have been issued, made, granted, or 
                allowed to become effective by the President, any 
                Federal agency or official of a Federal agency, or by a 
                court of competent jurisdiction, in the performance of 
                functions that are transferred under this section; and
                    (B) that are in effect on the effective date of 
                this section or were final before the effective date of 
                this section and are to become effective on or after 
                the effective date of this section;
        shall continue in effect according to their terms until 
        modified, terminated, superseded, set aside, or revoked in 
        accordance with law by the President, the appropriate receiving 
        agency or other authorized official, a court of competent 
        jurisdiction, or by operation of law.
            (5) Proceedings not affected.--
                    (A) In general.--The provisions of this section 
                shall not affect any proceedings, including notices of 
                proposed rulemaking, or any application for any 
                license, permit, certificate, or financial assistance 
                pending before the Department of Labor or the 
                Department of Education on the date this section takes 
                effect, with respect to functions transferred by this 
                section.
                    (B) Continuation.--Such proceedings and 
                applications shall be continued. Orders shall be issued 
                in such proceedings, appeals shall be taken from the 
                orders, and payments shall be made pursuant to such 
                orders, as if this section had not been enacted, and 
                orders issued in any such proceedings shall continue in 
                effect until modified, terminated, superseded, or 
                revoked by a duly authorized official, by a court of 
                competent jurisdiction, or by operation of law.
                    (C) Construction.--Nothing in this paragraph shall 
                be deemed to prohibit the discontinuance or 
                modification of any such proceeding under the same 
                terms and conditions and to the same extent that such 
                proceeding could have been discontinued or modified if 
                this section had not been enacted.
            (6) Administrative actions relating to promulgation of 
        regulations.--Any administrative action relating to the 
        preparation or promulgation of a regulation by the Department 
        of Labor or the Department of Education relating to a function 
        transferred under this section may be continued by the 
        appropriate receiving agency with the same effect as if this 
        section had not been enacted.
    (d) Construction.--Nothing in this section shall be construed to 
require the transfer of any function described in subsection 
(b)(1)(B)(i) to the Federal Partnership.
    (e) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), this 
        section shall take effect on June 30, 1998.
            (2) Regulations and conforming amendments.--Subsection 
        (c)(1)(B) shall take effect on September 30, 1996.
            (3) Workplan.--Subsection (b) shall take effect on the date 
        of enactment of this Act.

SEC. 307. ELIMINATION OF CERTAIN OFFICES.

    (a) Termination.--The Office of Vocational and Adult Education and 
the Employment and Training Administration shall terminate on July 1, 
1998.
    (b) Office of Vocational and Adult Education.--
            (1) Title 5, united states code.--Section 5315 of title 5, 
        United States Code, is amended by striking ``Assistant 
        Secretaries of Education (10)'' and inserting ``Assistant 
        Secretaries of Education (9)''.
            (2) Department of education organization act.--
                    (A) Section 202 of the Department of Education 
                Organization Act (20 U.S.C. 3412) is amended--
                            (i) in subsection (b)(1)--
                                    (I) by striking subparagraph (C); 
                                and
                                    (II) by redesignating subparagraphs 
                                (D) through (F) as subparagraphs (C) 
                                through (E), respectively;
                            (ii) by striking subsection (h); and
                            (iii) by redesignating subsection (i) as 
                        subsection (h).
                    (B) Section 206 of such Act (20 U.S.C. 3416) is 
                repealed.
                    (C) Section 402(c)(1) of the Improving America's 
                Schools Act of 1994 (20 U.S.C. 9001(c)(1)) is amended 
                by striking ``established under'' and all that follows 
                and inserting a semicolon.
            (3) Goals 2000: educate america act.--Section 931(h)(3)(A) 
        of the Goals 2000: Educate America Act (20 U.S.C. 
        6031(h)(3)(A)) is amended--
                    (A) by striking clause (iii); and
                    (B) by redesignating clauses (iv) and (v) as 
                clauses (iii) and (iv), respectively.
    (c) Employment and Training Administration.--
            (1) Title 5, united states code.--Section 5315 of title 5, 
        United States Code, is amended by striking ``Assistant 
        Secretaries of Labor (10)'' and inserting ``Assistant 
        Secretaries of Labor (9)''.
            (2) Veterans' benefits and programs improvement act of 
        1988.--Section 402(d)(3) of the Veterans' Benefits and Programs 
        Improvement Act of 1988 (29 U.S.C. 1721 note) is amended by 
        striking ``and under any other program administered by the 
        Employment and Training Administration of the Department of 
        Labor''.
            (3) Title 38, united states code.--Section 4110(d) of title 
        38, United States Code, is amended--
                    (A) by striking paragraph (7); and
                    (B) by redesignating paragraphs (8) through (12) as 
                paragraphs (7) through (11), respectively.
            (4) National and community service act of 1990.--The last 
        sentence of section 162(b) of the National and Community 
        Service Act of 1990 (42 U.S.C. 12622(b)) is amended by striking 
        ``or the Office of Job Training''.
    (d) United States Employment Service.--
            (1) Title 5, united states code.--Section 3327 of title 5, 
        United States Code, is amended--
                    (A) in subsection (a), by striking ``the employment 
                offices of the United States Employment Service'' and 
                inserting ``Governors''; and
                    (B) in subsection (b), by striking ``of the United 
                States Employment Service''.
            (2) Title 10, united states code.--
                    (A) Section 1143a(d) of title 10, United States 
                Code, is amended by striking paragraph (3).
                    (B) Section 2410k(b) of title 10, United States 
                Code, is amended by striking ``, and where appropriate 
                the Interstate Job Bank (established by the United 
                States Employment Service),''.
            (3) Internal revenue code of 1986.--Section 51 of the 
        Internal Revenue Code of 1986 is amended by striking subsection 
        (g).
            (4) National defense authorization act for fiscal year 
        1993.--Section 4468 of the National Defense Authorization Act 
        for Fiscal Year 1993 (29 U.S.C. 1662d-1 note) is repealed.
            (5) Title 38, united states code.--Section 4110(d) of title 
        38, United States Code (as amended by subsection (c)(3)), is 
        further amended--
                    (A) by striking paragraph (10); and
                    (B) by redesignating paragraph (11) as paragraph 
                (10).
            (6) Title 39, united states code.--
                    (A) Section 3202(a)(1) of title 39, United States 
                Code is amended--
                            (i) in subparagraph (D), by striking the 
                        semicolon and inserting ``; and'';
                            (ii) by striking subparagraph (E); and
                            (iii) by redesignating subparagraph (F) as 
                        subparagraph (E).
                    (B) Section 3203(b) of title 39, United States 
                Code, is amended by striking ``(1)(E), (2), and (3)'' 
                and inserting ``(2) and (3)''.
                    (C) Section 3206(b) of title 39, United States 
                Code, is amended by striking ``(1)(F)'' and inserting 
                ``(1)(E)''.
            (7) National and community service act of 1990.--Section 
        162(b) of the National and Community Service Act of 1990 (42 
        U.S.C. 12622(b)) (as amended by subsection (c)(4)) is further 
        amended by striking the last sentence.
    (e) Reorganization Plans.--Except with respect to functions 
transferred under section 306, the authority granted to the Employment 
and Training Administration, the Office of Vocational and Adult 
Education, or any unit of the Employment and Training Administration or 
the Office of Vocational and Adult Education by any reorganization plan 
shall terminate on July 1, 1998.

         TITLE IV--AMENDMENTS TO THE REHABILITATION ACT OF 1973

SEC. 401. REFERENCES.

    Except as otherwise expressly provided in this title, whenever in 
this title an amendment or repeal is expressed in terms of an amendment 
to, or repeal of, a section or other provision, the reference shall be 
considered to be made to a section or other provision of the 
Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.).

SEC. 402. FINDINGS AND PURPOSES.

    Section 2 (29 U.S.C. 701) is amended--
            (1) in subsection (a)(4), by striking ``the provision of 
        individualized training, independent living services, 
        educational and support services,'' and inserting 
        ``implementation of a statewide workforce development system 
        that provides meaningful and effective participation for 
        individuals with disabilities in workforce development 
        activities and activities carried out through the vocational 
        rehabilitation program established under title I, and through 
        the provision of independent living services, support 
        services,''; and
            (2) in subsection (b)(1)(A), by inserting ``statewide 
        workforce development systems that include, as integral 
        components,'' after ``(A)''.

SEC. 403. CONSOLIDATED REHABILITATION PLAN.

    (a) In General.--Section 6 (29 U.S.C. 705) is repealed.
    (b) Conforming Amendment.--The table of contents for the Act is 
amended by striking the item relating to section 6.

SEC. 404. DEFINITIONS.

    Section 7 (29 U.S.C. 706) is amended by adding at the end the 
following new paragraphs:
    ``(36) The term `statewide workforce development system' means a 
statewide system, as defined in section 3 of the Workforce Development 
Act of 1995.
    ``(37) The term `workforce development activities' has the meaning 
given the term in section 3 of the Workforce Development Act of 1995.
    ``(38) The term `workforce employment activities' means the 
activities described in paragraphs (2) through (8) of section 106(a) of 
the Workforce Development Act of 1995, including activities described 
in section 106(a)(6) of such Act provided through a voucher described 
in section 106(a)(9) of such Act.''.

SEC. 405. ADMINISTRATION.

    Section 12(a)(1) (29 U.S.C. 711(a)(1)) is amended by inserting ``, 
including providing assistance to achieve the meaningful and effective 
participation by individuals with disabilities in the activities 
carried out through a statewide workforce development system'' before 
the semicolon.

SEC. 406. REPORTS.

    Section 13 (29 U.S.C. 712) is amended in the fourth sentence by 
striking ``The data elements'' and all that follows through ``age,'' 
and inserting the following: ``The information shall include all 
information that is required to be submitted in the report described in 
section 131(a) of the Workforce Development Act of 1995 and that 
pertains to the employment of individuals with disabilities, including 
information on age,''.

SEC. 407. EVALUATION.

    Section 14(a) (29 U.S.C. 713(a)) is amended in the third sentence 
by striking ``to the extent feasible,'' and all that follows through 
the end of the sentence and inserting the following: ``to the maximum 
extent appropriate, be consistent with the State benchmarks established 
under paragraphs (1) and (2) of section 131(c) of the Workforce 
Development Act of 1995. For purposes of this section, the Secretary 
may modify or supplement such benchmarks after consultation with the 
Governing Board established under section 301(b) of the Workforce 
Development Act of 1995, to the extent necessary to address unique 
considerations applicable to the participation of individuals with 
disabilities in the vocational rehabilitation program established under 
title I and activities carried out under other provisions of this 
Act.''.

SEC. 408. DECLARATION OF POLICY.

    Section 100(a) (29 U.S.C. 720(a)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (E), by striking ``; and'' and 
                inserting a semicolon;
                    (B) in subparagraph (F)--
                            (i) by inserting ``workforce development 
                        activities and'' before ``vocational 
                        rehabilitation services''; and
                            (ii) by striking the period and inserting 
                        ``; and''; and
                    (C) by adding at the end the following 
                subparagraph:
            ``(G) linkages between the vocational rehabilitation 
        program established under this title and other components of 
        the statewide workforce development system are critical to 
        ensure effective and meaningful participation by individuals 
        with disabilities in workforce development activities.''; and
            (2) in paragraph (2)--
                    (A) by striking ``a comprehensive'' and inserting 
                ``statewide comprehensive''; and
                    (B) by striking ``program of vocational 
                rehabilitation that is designed'' and inserting 
                ``programs of vocational rehabilitation, each of which 
                is--
            ``(A) an integral component of a statewide workforce 
        development system; and
            ``(B) designed''.

SEC. 409. STATE PLANS.

    (a) In General.--Section 101(a) (29 U.S.C. 721(a)) is amended--
            (1) in the first sentence, by striking ``, or shall 
        submit'' and all that follows through ``et seq.)'' and 
        inserting ``, and shall submit the State plan on the same dates 
        as the State submits the State plan described in section 104 of 
        the Workforce Development Act of 1995 to the Governing Board 
        established under section 301(b) of such Act'';
            (2) by inserting after the first sentence the following: 
        ``The State shall also submit the State plan for vocational 
        rehabilitation services for review and comment to any State 
        workforce development board established for the State under 
        section 105 of the Workforce Development Act of 1995, which 
        shall submit the comments on the State plan to the designated 
        State unit.'';
            (3) by striking paragraphs (10), (12), (13), (15), (17), 
        (19), (23), (27), (28), (30), (34), and (35);
            (4) in paragraph (20), by striking ``(20)'' and inserting 
        ``(B)'';
            (5) by redesignating paragraphs (3), (4), (5), (6), (7), 
        (8), (9), (14), (16), (18), (21), (22), (24), (25), (26), (29), 
        (31), (32), (33), and (36) as paragraphs (4), (5), (6), (7), 
        (8), (9), (10), (12), (13), (14), (15), (16), (17), (18), (19), 
        (20), (21), (22), (23), and (24), respectively;
            (6) in paragraph (1)(B)--
                    (A) by redesignating clauses (i), (ii), and (iii) 
                as clauses (ii), (iii), and (iv), respectively; and
                    (B) by inserting before clause (ii) (as 
                redesignated in subparagraph (A)) the following: ``(i) 
                a State entity primarily responsible for implementing 
                workforce employment activities through the statewide 
                workforce development system of the State,'';
            (7) in paragraph (2)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``(1)(B)(i)'' and inserting ``(1)(B)(ii)''; 
                and
                    (B) in subparagraph (B)(ii), by striking 
                ``(1)(B)(ii)'' and inserting ``(1)(B)(iii)'';
            (8) by inserting after paragraph (2) the following 
        paragraph:
    ``(3) provide a plan for expanding and improving vocational 
rehabilitation services for individuals with disabilities on a 
statewide basis, including--
            ``(A) a statement of values and goals;
            ``(B) evidence of ongoing efforts to use outcome measures 
        to make decisions about the effectiveness and future direction 
        of the vocational rehabilitation program established under this 
        title in the State; and
            ``(C) information on specific strategies for strengthening 
        the program as an integral component of the statewide workforce 
        development system established in the State, including specific 
        innovative, state-of-the-art approaches for achieving sustained 
        success in improving and expanding vocational rehabilitation 
        services provided through the program, for all individuals with 
        disabilities who seek employment, through plans, policies, and 
        procedures that link the program with other components of the 
        system, including plans, policies, and procedures relating to--
                    ``(i) entering into cooperative agreements, between 
                the designated State unit and appropriate entities 
                responsible for carrying out the other components of 
                the statewide workforce development system, which 
                agreements may provide for--
                            ``(I) provision of intercomponent staff 
                        training and technical assistance regarding the 
                        availability and benefits of, and eligibility 
                        standards for, vocational rehabilitation 
                        services, and regarding the provision of equal, 
                        effective, and meaningful participation by 
                        individuals with disabilities in workforce 
                        employment activities in the State through 
                        program accessibility, use of nondiscriminatory 
                        policies and procedures, and provision of 
                        reasonable accommodations, auxiliary aids and 
                        services, and rehabilitation technology, for 
                        individuals with disabilities;
                            ``(II) use of information and financial 
                        management systems that link all components of 
                        the statewide workforce development system, 
                        that link the components to other electronic 
                        networks, and that relate to such subjects as 
                        labor market information, and information on 
                        job vacancies, skill qualifications, career 
                        planning, and workforce development activities;
                            ``(III) use of customer service features 
                        such as common intake and referral procedures, 
                        customer data bases, resource information, and 
                        human service hotlines;
                            ``(IV) establishment of cooperative efforts 
                        with employers to facilitate job placement and 
                        to develop and sustain working relationships 
                        with employers, trade associations, and labor 
                        organizations;
                            ``(V) identification of staff roles and 
                        responsibilities and available resources for 
                        each entity that carries out a component of the 
                        statewide workforce development system with 
                        regard to paying for necessary services 
                        (consistent with State law); and
                            ``(VI) specification of procedures for 
                        resolving disputes among such entities; and
                    ``(ii) providing for the replication of such 
                cooperative agreements at the local level between 
                individual offices of the designated State unit and 
                local entities carrying out activities through the 
                statewide workforce development system;'';
            (9) in paragraph (6) (as redesignated in paragraph (5))--
                    (A) by striking subparagraph (A) and inserting the 
                following:
            ``(A) contain the plans, policies, and methods to be 
        followed in carrying out the State plan and in the 
        administration and supervision of the plan, including--
                    ``(i)(I) the results of a comprehensive, statewide 
                assessment of the rehabilitation needs of individuals 
                with disabilities (including individuals with severe 
                disabilities, individuals with disabilities who are 
                minorities, and individuals with disabilities who have 
                been unserved, or underserved, by the vocational 
                rehabilitation system) who are residing within the 
                State; and
                    ``(II) the response of the State to the assessment;
                    ``(ii) a description of the method to be used to 
                expand and improve services to individuals with the 
                most severe disabilities, including individuals served 
                under part C of title VI;
                    ``(iii) with regard to community rehabilitation 
                programs--
                            ``(I) a description of the method to be 
                        used (such as a cooperative agreement) to 
                        utilize the programs to the maximum extent 
                        feasible; and
                    ``(II) a description of the needs of the programs, 
                including the community rehabilitation programs funded 
                under the Act entitled ``An Act to Create a Committee 
                on Purchases of Blind-made Products, and for other 
                purposes'', approved June 25, 1938 (commonly known as 
                the Wagner-O'Day Act; 41 U.S.C. 46 et seq.) and such 
                programs funded by State use contracting programs; and
                    ``(iv) an explanation of the methods by which the 
                State will provide vocational rehabilitation services 
                to all individuals with disabilities within the State 
                who
                 are eligible for such services, and, in the event that 
vocational rehabilitation services cannot be provided to all such 
eligible individuals with disabilities who apply for such services, 
information--
                            ``(I) showing and providing the 
                        justification for the order to be followed in 
                        selecting individuals to whom vocational 
                        rehabilitation services will be provided (which 
                        order of selection for the provision of 
                        vocational rehabilitation services shall be 
                        determined on the basis of serving first the 
                        individuals with the most severe disabilities 
                        in accordance with criteria established by the 
                        State, and shall be consistent with priorities 
                        in such order of selection so determined, and 
                        outcome and service goals for serving 
                        individuals with disabilities, established in 
                        regulations prescribed by the Commissioner);
                            ``(II) showing the outcomes and service 
                        goals, and the time within which the outcomes 
                        and service goals may be achieved, for the 
                        rehabilitation of individuals receiving such 
                        services; and
                            ``(III) describing how individuals with 
                        disabilities who will not receive such services 
                        if such order is in effect will be referred to 
                        other components of the statewide workforce 
                        development system for access to services 
                        offered by the components;''; and
                    (B) by striking subparagraph (C) and inserting the 
                following subparagraphs:
            ``(C) with regard to the statewide assessment of 
        rehabilitation needs described in subparagraph (A)(i)--
                    ``(i) provide that the State agency will make 
                reports at such time, in such manner, and containing 
                such information, as the Commissioner may require to 
                carry out the functions of the Commissioner under this 
                title, and comply with such provisions as are necessary 
                to assure the correctness and verification of such 
                reports; and
                    ``(ii) provide that reports made under clause (i) 
                will include information regarding individuals with 
                disabilities and, if an order of selection described in 
                subparagraph (A)(iv)(I) is in effect in the State, will 
                separately include information regarding individuals 
                with the most severe disabilities, on--
                            ``(I) the number of such individuals who 
                        are evaluated and the number rehabilitated;
                            ``(II) the costs of administration, 
                        counseling, provision of direct services, 
                        development of community rehabilitation 
                        programs, and other functions carried out under 
                        this Act; and
                            ``(III) the utilization by such individuals 
                        of other programs pursuant to paragraph (11); 
                        and
            ``(D) describe--
                    ``(i) how a broad range of rehabilitation 
                technology services will be provided at each stage of 
                the rehabilitation process;
                    ``(ii) how a broad range of such rehabilitation 
                technology services will be provided on a statewide 
                basis; and
                    ``(iii) the training that will be provided to 
                vocational rehabilitation counselors, client assistance 
                personnel, personnel of the providers of one-stop 
                delivery of core services described in section 
                106(a)(2) of the Workforce Development Act of 1995, and 
                other related services personnel;'';
            (10) in subparagraph (A) of paragraph (8) (as redesignated 
        in paragraph (5))--
                    (A) in clause (i)(II), by striking ``, based on 
                projections'' and all that follows through ``relevant 
                factors''; and
                    (B) by striking clauses (iii) and (iv) and 
                inserting the following clauses:
            ``(iii) a description of the ways in which the system for 
        evaluating the performance of rehabilitation counselors, 
        coordinators, and other personnel used in the State facilitates 
        the accomplishment of the purpose and policy of this title, 
        including the policy of serving, among others, individuals with 
        the most severe disabilities;
            ``(iv) provide satisfactory assurances that the system 
        described in clause (iii) in no way impedes such 
        accomplishment; and'';
            (11) in paragraph (9) (as redesignated in paragraph (5)) by 
        striking ``required--'' and all that follows through ``(B) 
        prior'' and inserting ``required prior'';
            (12) in paragraph (10) (as redesignated in paragraph (5))--
                    (A) in subparagraph (B), by striking ``written 
                rehabilitation program'' and inserting ``employment 
                plan''; and
                    (B) in subparagraph (C), by striking ``plan in 
                accordance with such program'' and inserting ``State 
                plan in accordance with the employment plan'';
            (13) in paragraph (11)--
                    (A) in subparagraph (A), by striking ``State's 
                public'' and all that follows and inserting ``State 
                programs that are not part of the statewide workforce 
                development system of the State;''; and
                    (B) in subparagraph (C)--
                            (i) by striking ``if appropriate--'' and 
                        all that follows through ``entering into'' and 
                        inserting ``if appropriate, entering into'';
                            (ii) by redesignating subclauses (I), (II), 
                        and (III) as clauses (i), (ii), and (iii), 
                        respectively; and
                            (iii) by indenting the clauses and aligning 
                        the margins of the clauses with the margins of 
                        clause (ii) of subparagraph (A) of paragraph 
                        (8) (as redesignated in paragraph (5));
            (14) in paragraph (14) (as redesignated in paragraph (5))--
                    (A) by striking ``(14)'' and inserting ``(14)(A)''; 
                and
                    (B) by inserting before the semicolon the following 
                ``, and, in the case of the designated State unit, will 
                take actions to take such views into account that 
                include providing timely notice, holding public 
                hearings, preparing a summary of hearing comments, and 
                documenting and disseminating information relating to 
                the manner in which the comments will affect services; 
                and'';
            (15) in paragraph (16) (as redesignated in paragraph (5)), 
        by striking ``referrals to other Federal and State programs'' 
        and inserting ``referrals within the statewide workforce 
        development system of the State to programs''; and
            (16) in paragraph (17) (as redesignated in paragraph (5))--
                    (A) in subparagraph (B), by striking ``written 
                rehabilitation program'' and inserting ``employment 
                plan''; and
                    (B) in subparagraph (C)--
                            (i) in clause (ii), by striking ``; and'' 
                        and inserting a semicolon;
                            (ii) in clause (iii), by striking the 
                        semicolon and inserting ``; and''; and
                            (iii) by adding at the end the following 
                        clause:
                    ``(iv) the manner in which students who are 
                individuals with disabilities and who are not in 
                special education programs can access and receive 
                vocational rehabilitation services, where 
                appropriate;''.
    (b) Conforming Amendments.--
            (1) Section 7 (29 U.S.C. 706) is amended--
                    (A) in paragraph (3)(B)(ii), by striking 
                ``101(a)(1)(B)(i)'' and inserting ``101(a)(1)(B)(ii)''; 
                and
                    (B) in paragraph (22)(A)(i)(II), by striking 
                ``101(a)(5)(A)'' each place it appears and inserting 
                ``101(a)(6)(A)(iv)''.
            (2) Section 12(d) (29 U.S.C. 711(d)) is amended by striking 
        ``101(a)(5)(A)'' and inserting ``101(a)(6)(A)(iv)''.
            (3) Section 101(a) (29 U.S.C. 721(a)) is amended--
                    (A) in paragraph (1)(A), by striking ``paragraph 
                (4) of this subsection'' and inserting ``paragraph 
                (5)'';
                    (B) in paragraph (2)--
                            (i) in the matter preceding subparagraph 
                        (A), by striking ``paragraph (1)(B)(i)'' and 
                        inserting ``paragraph (1)(B)(ii)''; and
                            (ii) in subparagraph (B)(i), by striking 
                        ``paragraph (1)(B)(ii)'' and inserting 
                        ``paragraph (1)(B)(iii)'';
                    (C) in paragraph (17) (as redesignated in 
                subsection (a)(5)), by striking ``paragraph 
                (11)(C)(ii)'' and inserting ``paragraph (11)(C)'';
                    (D) in paragraph (22) (as redesignated in 
                subsection (a)(5)), by striking ``paragraph (36)'' and 
                inserting ``paragraph (24)''; and
                    (E) in subparagraph (C) of paragraph (24) (as 
                redesignated in subsection (a)(5)), by striking 
                ``101(a)(1)(A)(i)'' and inserting ``paragraph 
                (1)(A)(i)''.
            (4) Section 102 (29 U.S.C. 722) is amended--
                    (A) in subsection (a)(3), by striking 
                ``101(a)(24)'' and inserting ``101(a)(17)''; and
                    (B) in subsection (d)(2)(C)(ii)--
                            (i) in subclause (II), by striking 
                        ``101(a)(36)'' and inserting ``101(a)(24)''; 
                        and
                            (ii) in subclause (III), by striking 
                        ``101(a)(36)(C)(ii)'' and inserting 
                        ``101(a)(24)(C)(ii)''.
            (5) Section 105(a)(1) (29 U.S.C. 725(a)(1)) is amended by 
        striking ``101(a)(36)'' and inserting ``101(a)(24)''.
            (6) Section 107(a) (29 U.S.C. 727(a)) is amended--
                    (A) in paragraph (2)(F), by striking ``101(a)(32)'' 
                and inserting ``101(a)(22)'';
                    (B) in paragraph (3)(A), by striking 
                ``101(a)(5)(A)'' and inserting ``101(a)(6)(A)(iv)''; 
                and
                    (C) in paragraph (4), by striking ``101(a)(35)'' 
                and inserting ``101(a)(8)(A)(iii)''.
            (7) Section 111(a) (29 U.S.C. 731(a)) is amended--
                    (A) in paragraph (1), by striking ``and development 
                and implementation'' and all that follows through 
                ``referred to in section 101(a)(34)(B)''; and
                    (B) in paragraph (2)(A), by striking ``and such 
                payments shall not be made in an amount which would 
                result in a violation of the provisions of the State 
                plan required by section 101(a)(17)''.
            (8) Section 124(a)(1)(A) (29 U.S.C. 744(a)(1)(A)) is 
        amended by striking ``(not including sums used in accordance 
        with section 101(a)(34)(B))''.
            (9) Section 315(b)(2) (29 U.S.C. 777e(b)(2)) is amended by 
        striking ``101(a)(22)'' and inserting ``101(a)(16)''.
            (10) Section 635(b)(2) (29 U.S.C. 795n(b)(2)) is amended by 
        striking ``101(a)(5)'' and inserting ``101(a)(6)(A)(i)(I)''.
            (11) Section 802(h)(2)(B)(ii) (29 U.S.C. 797a(h)(2)(B)(ii)) 
        is amended by striking ``101(a)(5)(A)'' and inserting 
        ``101(a)(6)(A)(iv)''.
            (12) Section 102(e)(23)(A) of the Technology-Related 
        Assistance for Individuals With Disabilities Act of 1988 (29 
        U.S.C. 2212(e)(23)(A)) is amended by striking ``section 
        101(a)(36) of the Rehabilitation Act of 1973 (29 U.S.C. 
        721(a)(36))'' and inserting ``section 101(a)(24) of the 
        Rehabilitation Act of 1973 (29 U.S.C. 721(a)(24))''.

SEC. 410. INDIVIDUALIZED EMPLOYMENT PLANS.

    (a) In General.--Section 102 (29 U.S.C. 722) is amended--
            (1) by striking the section heading and inserting the 
        following:

``SEC. 102. INDIVIDUALIZED EMPLOYMENT PLANS.'';

            (2) in subsection (a)(6), by striking ``written 
        rehabilitation program'' and inserting ``employment plan'';
            (3) in subsection (b)--
                    (A) in paragraph (1)(A)--
                            (i) in clause (i), by striking ``written 
                        rehabilitation program'' and inserting 
                        ``employment plan''; and
                            (ii) in clause (ii), by striking 
                        ``program'' and inserting ``plan'';
                    (B) in paragraph (1)(B)--
                            (i) in the matter preceding clause (i), by 
                        striking ``written rehabilitation program'' and 
                        inserting ``employment plan'';
                            (ii) in clause (iv)--
                                    (I) by striking subclause (I) and 
                                inserting the following:
            ``(I) include a statement of the specific vocational 
        rehabilitation services to be provided (including, if 
        appropriate, rehabilitation technology services and training in 
        how to use such services) that includes specification of the 
        public or private entity that will provide each such vocational 
        rehabilitation service and the projected dates for the 
        initiation and the anticipated duration of each such service; 
        and'';
                                    (II) by striking subclause (II); 
                                and
                                    (III) by redesignating subclause 
                                (III) as subclause (II); and
                            (iii) in clause (xi)(I), by striking 
                        ``program'' and inserting ``plan'';
                    (C) in paragraph (1)(C), by striking ``written 
                rehabilitation program and amendments to the program'' 
                and inserting ``employment plan and amendments to the 
                plan''; and
                    (D) in paragraph (2)--
                            (i) by striking ``program'' each place the 
                        term appears and inserting ``plan''; and
                            (ii) by striking ``written rehabilitation'' 
                        each place the term appears and inserting 
                        ``employment'';
            (4) in subsection (c)--
                    (A) in paragraph (1), by striking ``written 
                rehabilitation program'' and inserting ``employment 
                plan''; and
                    (B) by striking ``written program'' each place the 
                term appears and inserting ``plan''; and
            (5) in subsection (d)--
                    (A) in paragraph (5), by striking ``written 
                rehabilitation program'' and inserting ``employment 
                plan''; and
                    (B) in paragraph (6)(A), by striking the second 
                sentence.
    (b) Conforming Amendments.--
            (1) The table of contents for the Act is amended by 
        striking the item relating to section 102 and inserting the 
        following:

``Sec. 102. Individualized employment plans.''.
            (2) Paragraphs (22)(B) and (27)(B), and subparagraphs (B) 
        and (C) of paragraph (34) of section 7 (29 U.S.C. 706), section 
        12(e)(1) (29 U.S.C. 711(e)(1)), section 501(e) (29 U.S.C. 
        791(e)), subparagraphs (C), (D), and (E) of section 635(b)(6) 
        (29 U.S.C. 795n(b)(6) (C), (D), and (E)), section 802(g)(8)(B) 
        (29 U.S.C. 797a(g)(8)(B)), and section 803(c)(2)(D) (29 U.S.C. 
        797b(c)(2)(D)) are amended by striking ``written rehabilitation 
        program'' each place the term appears and inserting 
        ``employment plan''.
            (3) Section 7(22)(B)(i) (29 U.S.C. 706(22)(B)(i)) is 
        amended by striking ``rehabilitation program'' and inserting 
        ``employment plan''.
            (4) Section 107(a)(3)(D) (29 U.S.C. 727(a)(3)(D)) is 
        amended by striking ``written rehabilitation programs'' and 
        inserting ``employment plans''.
            (5) Section 101(b)(7)(A)(ii)(II) of the Technology-Related 
        Assistance for Individuals With Disabilities Act of 1988 (29 
        U.S.C. 2211(b)(7)(A)(ii)(II)) is amended by striking ``written 
        rehabilitation program'' and inserting ``employment plan''.

SEC. 411. SCOPE OF VOCATIONAL REHABILITATION SERVICES.

    Section 103 (29 U.S.C. 723) is amended--
            (1) in subsection (a)(4)--
                    (A) in subparagraph (B), by striking ``surgery 
                or'';
                    (B) in subparagraph (D), by striking the comma at 
                the end and inserting ``, and'';
                    (C) by striking subparagraph (E); and
                    (D) by redesignating subparagraph (F) as 
                subparagraph (E); and
            (2) in subsection (b)(1), by striking ``the most severe''.

SEC. 412. STATE REHABILITATION ADVISORY COUNCIL.

    (a) In General.--Section 105 (29 U.S.C. 725) is amended--
            (1) in subsection (b)(1)(A)(vi), by inserting before the 
        semicolon the following: ``who, to the extent feasible, are 
        members of any State workforce development board established 
        for the State under section 105 of the Workforce Development 
        Act of 1995''; and
            (2) in subsection (c)--
                    (A) by redesignating paragraphs (3) through (7) as 
                paragraphs (4) through (8), respectively;
                    (B) by inserting after paragraph (2) the following 
                new paragraph:
            ``(3) advise the designated State agency and the designated 
        State unit regarding strategies for ensuring that the 
        vocational rehabilitation program established under this title 
        becomes an integral part of the statewide workforce development 
        system of the State;''; and
                    (C) in paragraph (6) (as redesignated in 
                subparagraph (A))--
                            (i) by striking ``6024), and'' and 
                        inserting ``6024),''; and
                            (ii) by striking the semicolon at the end 
                        and inserting the following: ``, and any State 
                        workforce development board established for the 
                        State under section 105 of the Workforce 
                        Development Act of 1995;''.
    (b) Conforming Amendment.--Subparagraph (B)(iv), and clauses 
(ii)(I) and (iii)(I) of subparagraph (C), of paragraph (24) (as 
redesignated in section 409(a)(5)) of section 101(a) (29 U.S.C. 721(a)) 
are amended by striking ``105(c)(3)'' and inserting ``105(c)(4)''.

SEC. 413. EVALUATION STANDARDS AND PERFORMANCE INDICATORS.

    Section 106(a)(1) (29 U.S.C. 726(a)(1)) is amended--
            (1) by striking ``1994'' and inserting ``1996''; and
            (2) by striking the period and inserting the following: 
        ``that shall, to the maximum extent appropriate, be consistent 
        with the State benchmarks established under paragraphs (1) and 
        (2) of section 131(c) of the Workforce Development Act of 1995. 
        For purposes of this section, the Commissioner may modify or 
        supplement such benchmarks, after consultation with the 
        Governing Board established under section 301(b) of the 
        Workforce Development Act of 1995, to the extent necessary to 
        address unique considerations applicable to the participation 
        of individuals with disabilities in the vocational 
        rehabilitation program.''.

SEC. 414. REPEALS.

    (a) In General.--Title I (29 U.S.C. 720 et seq.) is amended--
            (1) by repealing part C; and
            (2) by redesignating parts D and E as parts C and D, 
        respectively.
    (b) Conforming Amendments.--The table of contents for the Act is 
amended--
            (1) by striking the items relating to part C of title I; 
        and
            (2) by striking the items relating to parts D and E of 
        title I and inserting the following:
      ``Part C--American Indian Vocational Rehabilitation Services

``Sec. 130. Vocational rehabilitation services grants.

    ``Part D--Vocational Rehabilitation Services Client Information

``Sec. 140. Review of data collection and reporting system.
``Sec. 141. Exchange of data.''.
SEC. 415. EFFECTIVE DATE.

    (a) In General.--Except as provided in subsection (b), the 
amendments made by this title shall take effect on the date of 
enactment of this Act.
    (b) Statewide System Requirements.--The changes made in the 
Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.) by the amendments 
made by this title that relate to State benchmarks, or other components 
of a statewide system, shall take effect--
            (1) in a State that submits and obtains approval of an 
        interim plan under section 211 for program year 1997, on July 
        1, 1997; and
            (2) in any other State, on July 1, 1998.

                        TITLE V--OTHER PROGRAMS

       Subtitle A--Amendments to Immigration and Nationality Act

SEC. 501. PROHIBITION ON USE OF FUNDS FOR CERTAIN EMPLOYMENT 
              ACTIVITIES.

    Section 412(c)(1) of the Immigration and Nationality Act is amended 
by adding at the end the following new subparagraph:
    ``(D) Funds available under this paragraph may not be provided to 
States for workforce employment activities authorized and funded under 
the Workforce Development Act of 1995.''.

                      Subtitle B--Welfare Programs

SEC. 511. WELFARE REFORM.

    (a) Findings.--Congress finds that--
            (1) the current welfare system in the United States is 
        failing both the families who rely on the system and the 
        taxpayers who support the system;
            (2) the current system encourages dependency and fails to 
        promote self-sufficiency adequately;
            (3) one-size-fits-all approaches to welfare reform will not 
        work;
            (4) in order to be most effective, reforms of the welfare 
        system should take into account the individual differences 
        among States and among families;
            (5) in recent years there has been an alarming increase in 
        the number of births to unmarried teenagers;
            (6) between 1986 and 1991, births to teenagers increased by 
        23 percent, from 50.2 to 62.1 births per 1,000 teenage females;
            (7) there is a crisis in the collection of child support 
        that is leaving thousands of families in poverty and is 
        increasing welfare costs to taxpayers; and
            (8) in 1991, the United States Commission on Interstate 
        Child Support reported that $5,000,000 of the $15,000,000 
        awarded in child support in 1991 went uncollected.
    (b) Sense of the Senate.--It is the sense of the Senate that any 
welfare reform legislation enacted by the Senate should be based on the 
following principles:
            (1) Individuals on welfare should, from their first day on 
        welfare, accept responsibility for themselves and their 
        families. The receipt of welfare benefits by an individual 
        should be conditioned on a partnership between the individual 
        and the State in which the partners clearly delineate the steps 
        that the family of the individual will take to enable the 
        individual to move off welfare and into the workforce as well 
        as the services, including child care, that will be provided by 
        the State to enable the family to become self-sufficient. If an 
        individual on welfare fails to meet the responsibilities of the 
        individual there should be consequences, such as a reduction in 
        welfare benefits.
            (2) Each State should be given more flexibility to design 
        welfare programs that effectively respond to the needs of 
        welfare recipients in the State.
            (3) Welfare reform legislation should effectively respond 
        to the alarming increase in births to teenage parents.
            (4) Both parents have the responsibility for providing 
        financial support for their children, even if the parents are 
        divorced or were never married. Welfare reform should be 
        accompanied by aggressive efforts to improve the collection of 
        child support.
            (5) Welfare reform legislation should recognize the 
        interaction between the welfare system and the statewide system 
        to alleviate unintended consequences for persons other than 
        welfare recipients who are in need of workforce development 
        activities, as described in this Act.
            (6) Neither political party contributes all of the best 
        policies for welfare reform, so welfare reform legislation 
        should have widespread bipartisan support.

 TITLE VI--REPEALS OF EMPLOYMENT AND TRAINING AND VOCATIONAL AND ADULT 
                           EDUCATION PROGRAMS

SEC. 601. REPEALS.

    (a) Immediate Repeals.--The following provisions are repealed:
            (1) Section 204 of the Immigration Reform and Control Act 
        of 1986 (8 U.S.C. 1255a note).
            (2) Title II of Public Law 95-250 (92 Stat. 172).
            (3) The Displaced Homemakers Self-Sufficiency Assistance 
        Act (29 U.S.C. 2301 et seq.).
            (4) Section 211 of the Appalachian Regional Development Act 
        of 1965 (40 U.S.C. App. 211).
            (5) Subtitle C of title VII of the Stewart B. McKinney 
        Homeless Assistance Act (42 U.S.C. 11441 et seq.).
            (6) Section 5322 of title 49, United States Code.
            (7) Subchapter I of chapter 421 of title 49, United States 
        Code.
    (b) Subsequent Repeals.--The following provisions are repealed:
            (1) Section 6(d)(4) of the Food Stamp Act of 1977 (7 U.S.C. 
        2015(d)(4)).
            (2) Sections 235 and 236 of the Trade Act of 1974 (19 
        U.S.C. 2295 and 2296), and paragraphs (1) and (2) of section 
        250(d) of such Act (19 U.S.C. 2331(d)).
            (3) The Adult Education Act (20 U.S.C. 1201 et seq.).
            (4) The Carl D. Perkins Vocational and Applied Technology 
        Education Act (20 U.S.C. 2301 et seq.).
            (5) The School-to-Work Opportunities Act of 1994 (20 U.S.C. 
        6101 et seq.).
            (6) The Wagner-Peyser Act (29 U.S.C. 49 et seq.).
            (7) The Job Training Partnership Act (29 U.S.C. 1501 et 
        seq.).
            (8) Part F of title IV of the Social Security Act (42 
        U.S.C. 681 et seq.).
            (9) Title V of the Older Americans Act of 1965 (42 U.S.C. 
        3056 et seq.).
            (10) Title VII of the Stewart B. McKinney Homeless 
        Assistance Act (42 U.S.C. 11421 et seq.), other than subtitle C 
        of such title.
    (c) Effective Dates.--
            (1) Immediate repeals.--The repeals made by subsection (a) 
        shall take effect on the date of enactment of this Act.
            (2) Subsequent repeals.--The repeals made by subsection (b) 
        shall take effect on July 1, 1998.

SEC. 602. CONFORMING AMENDMENTS.

    (a) Immediate Repeals.--
            (1) References to section 204 of the immigration reform and 
        control act of 1986.--The table of contents for the Immigration 
        Reform and Control Act of 1986 is amended by striking the item 
        relating to section 204 of such Act.
            (2) References to title ii of public law 95-250.--Section 
        103 of Public Law 95-250 (16 U.S.C. 79l) is amended--
                    (A) by striking the second sentence of subsection 
                (a); and
                    (B) by striking the second sentence of subsection 
                (b).
            (3) References to subtitle c of title vii of the stewart b. 
        mckinney homeless assistance act.--
                    (A) Section 762(a) of the Stewart B. McKinney 
                Homeless Assistance Act (42 U.S.C. 11472(a)) is 
                amended--
                            (i) by striking ``each of the following 
                        programs'' and inserting ``the emergency 
                        community services homeless grant program 
                        established in section 751''; and
                            (ii) by striking ``tribes:'' and all that 
                        follows and inserting ``tribes.''.
                    (B) The table of contents of such Act is amended by 
                striking the items relating to subtitle C of title VII 
                of such Act.
            (4) References to title 49, united states code.--
                    (A) Sections 5313(b)(1) and 5314(a)(1) of title 49, 
                United States Code, are amended by striking ``5317, and 
                5322'' and inserting ``and 5317''.
                    (B) The table of contents for chapter 53 of title 
                49, United States Code, is amended by striking the item 
                relating to section 5322.
    (b) Subsequent Repeals.--
            (1) Recommended legislation.--After consultation with the 
        appropriate committees of Congress and the Director of the 
        Office of Management and Budget, the Governing Board shall 
        prepare and submit to Congress recommended legislation 
        containing technical and conforming amendments to reflect the 
        changes made by section 601(b).
            (2) Submission to congress.--Not later than March 31, 1997, 
        the Governing Board shall submit the recommended legislation 
        referred to under paragraph (1).
    Amend the title so as to read: ``A bill to consolidate Federal 
employment training, vocational education, and adult education programs 
and create integrated statewide workforce development systems, and for 
other purposes.''.
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