[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1385 Engrossed Amendment Senate (EAS)]

  
  
  
  
  
  
  
  
  
  

                  In the Senate of the United States,

                                                           May 5, 1998.
      Resolved, That the bill from the House of Representatives (H.R. 
1385) entitled ``An Act to consolidate, coordinate, and improve 
employment, training, literacy, and vocational rehabilitation programs 
in the United States, and for other purposes.'', do pass with the 
following

                               AMENDMENT:

            Strike out all after the enacting clause and insert:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Workforce 
Investment Partnership Act of 1998''.
    (b) Table of Contents.--The table of contents is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.

      TITLE I--VOCATIONAL, TECHNOLOGICAL, AND TECH-PREP EDUCATION

Sec. 101. Short title.
Sec. 102. Findings and purpose.
Sec. 103. Voluntary selection and participation.
Sec. 104. Construction.

                    Subtitle A--Vocational Education

                     Chapter 1--Federal Provisions

Sec. 111. Reservations and State allotment.
Sec. 112. Performance measures and expected levels of performance.
Sec. 113. Assistance for the outlying areas.
Sec. 114. Indian and Hawaiian Native programs.
Sec. 115. Tribally controlled postsecondary vocational institutions.
Sec. 116. Incentive grants.

                      Chapter 2--State Provisions

Sec. 121. State administration.
Sec. 122. State use of funds.
Sec. 123. State leadership activities.
Sec. 124. State plan.

                      Chapter 3--Local Provisions

Sec. 131. Distribution for secondary school vocational education.
Sec. 132. Distribution for postsecondary vocational education.
Sec. 133. Local activities.
Sec. 134. Local application.
Sec. 135. Consortia.

                    Subtitle B--Tech-Prep Education

Sec. 151. Short title.
Sec. 152. Purposes.
Sec. 153. Definitions.
Sec. 154. Program authorized.
Sec. 155. Tech-prep education programs.
Sec. 156. Applications.
Sec. 157. Authorization of appropriations.
Sec. 158. Demonstration program.

                     Subtitle C--General Provisions

Sec. 161. Administrative provisions.
Sec. 162. Evaluation, improvement, and accountability.
Sec. 163. National activities.
Sec. 164. National assessment of vocational education programs.
Sec. 165. National research center.
Sec. 166. Data systems.
Sec. 167. Promoting scholar-athlete competitions.
Sec. 168. Definition.

              Subtitle D--Authorization of Appropriations

Sec. 171. Authorization of appropriations.

                           Subtitle E--Repeal

Sec. 181. Repeal.

                 TITLE II--ADULT EDUCATION AND LITERACY

Sec. 201. Short title.
Sec. 202. Findings and purpose.

           Subtitle A--Adult Education and Literacy Programs

                     Chapter 1--Federal Provisions

Sec. 211. Reservation; grants to States; allotments.
Sec. 212. Performance measures and expected levels of performance.
Sec. 213. National leadership activities.

                      Chapter 2--State Provisions

Sec. 221. State administration.
Sec. 222. State distribution of funds; State share.
Sec. 223. State leadership activities.
Sec. 224. State plan.
Sec. 225. Programs for corrections education and other 
                            institutionalized individuals.

                      Chapter 3--Local Provisions

Sec. 231. Grants and contracts for eligible providers.
Sec. 232. Local application.
Sec. 233. Local administrative cost limits.

                     Chapter 4--General Provisions

Sec. 241. Administrative provisions.
Sec. 242. Priorities and preferences.
Sec. 243. Incentive grants.
Sec. 244. Evaluation, improvement, and accountability.
Sec. 245. National Institute for Literacy.
Sec. 246. Authorization of appropriations.

                           Subtitle B--Repeal

Sec. 251. Repeal.

         TITLE III--WORKFORCE INVESTMENT AND RELATED ACTIVITIES

              Subtitle A--Workforce Investment Activities

   Chapter 1--Allotments to States for Adult Employment and Training 
 Activities, Dislocated Worker Employment and Training Activities, and 
                            Youth Activities

Sec. 301. General authorization.
Sec. 302. State allotments.
Sec. 303. Statewide partnership.
Sec. 304. State plan.

       Chapter 2--Allocations to Local Workforce Investment Areas

Sec. 306. Within State allocations.
Sec. 307. Local workforce investment areas.
Sec. 308. Local workforce investment partnerships and youth 
                            partnerships.
Sec. 309. Local plan.

        Chapter 3--Workforce Investment Activities and Providers

Sec. 311. Identification and oversight of one-stop partners and one-
                            stop customer service center operators.
Sec. 312. Determination and identification of eligible providers of 
                            training services by program.
Sec. 313. Identification of eligible providers of youth activities.
Sec. 314. Statewide workforce investment activities.
Sec. 315. Local employment and training activities.
Sec. 316. Local youth activities.

                     Chapter 4--General Provisions

Sec. 321. Accountability.
Sec. 322. Authorization of appropriations.

                         Subtitle B--Job Corps

Sec. 331. Purposes.
Sec. 332. Definitions.
Sec. 333. Establishment.
Sec. 334. Individuals eligible for the Job Corps.
Sec. 335. Recruitment, screening, selection, and assignment of 
                            enrollees.
Sec. 336. Enrollment.
Sec. 337. Job Corps centers.
Sec. 338. Program activities.
Sec. 339. Counseling and job placement.
Sec. 340. Support.
Sec. 341. Operating plan.
Sec. 342. Standards of conduct.
Sec. 343. Community participation.
Sec. 344. Industry councils.
Sec. 345. Advisory committees.
Sec. 346. Experimental, research, and demonstration projects.
Sec. 347. Application of provisions of Federal law.
Sec. 348. Special provisions.
Sec. 349. Management information.
Sec. 350. General provisions.
Sec. 351. Authorization of appropriations.

                     Subtitle C--National Programs

Sec. 361. Native American programs.
Sec. 362. Migrant and seasonal farmworker programs.
Sec. 363. Veterans' workforce investment programs.
Sec. 364. Youth opportunity grants.
Sec. 365. Incentive grants.
Sec. 366. Technical assistance.
Sec. 367. Demonstration, pilot, multiservice, research, and multistate 
                            projects.
Sec. 368. Evaluations.
Sec. 369. National emergency grants.
Sec. 370. Authorization of appropriations.

                       Subtitle D--Administration

Sec. 371. Requirements and restrictions.
Sec. 372. Prompt allocation of funds.
Sec. 373. Monitoring.
Sec. 374. Fiscal controls; sanctions.
Sec. 375. Reports; recordkeeping; investigations.
Sec. 376. Administrative adjudication.
Sec. 377. Judicial review.
Sec. 378. Nondiscrimination.
Sec. 379. Administrative provisions.
Sec. 380. State legislative authority.
Sec. 381. Workforce flexibility partnership plans.
Sec. 382. Use of certain real property.
Sec. 383. Continuation of State activities and policies.

             Subtitle E--Repeals and Conforming Amendments

Sec. 391. Repeals.
Sec. 392. Conforming amendments.
Sec. 393. Effective dates.

           TITLE IV--WORKFORCE INVESTMENT-RELATED ACTIVITIES

                     Subtitle A--Wagner-Peyser Act

Sec. 401. Definitions.
Sec. 402. Functions.
Sec. 403. Designation of State agencies.
Sec. 404. Appropriations.
Sec. 405. Disposition of allotted funds.
Sec. 406. State plans.
Sec. 407. Repeal of Federal advisory council.
Sec. 408. Regulations.
Sec. 409. Labor market information.
Sec. 410. Technical amendments.

                Subtitle B--Linkages With Other Programs

Sec. 421. Trade Act of 1974.
Sec. 422. Veterans' employment programs.
Sec. 423. Older Americans Act of 1965.

         Subtitle C--Twenty-First Century Workforce Commission

Sec. 431. Short title.
Sec. 432. Findings.
Sec. 433. Definitions.
Sec. 434. Establishment of Twenty-First Century Workforce Commission.
Sec. 435. Duties of the Commission.
Sec. 436. Powers of the Commission.
Sec. 437. Commission personnel matters.
Sec. 438. Termination of the Commission.
Sec. 439. Authorization of appropriations.

                      TITLE V--GENERAL PROVISIONS

Sec. 501. State unified plan.
Sec. 502. Definitions for core indicators of performance.
Sec. 503. Transition provisions.
Sec. 504. Privacy.
Sec. 505. Limitation.
Sec. 506. Effective date.

            TITLE VI--REHABILITATION ACT AMENDMENTS OF 1998

Sec. 601. Short title.
Sec. 602. Title.
Sec. 603. General provisions.
Sec. 604. Vocational rehabilitation services.
Sec. 605. Research and training.
Sec. 606. Professional development and special projects and 
                            demonstrations.
Sec. 607. National Council on Disability.
Sec. 608. Rights and advocacy.
Sec. 609. Employment opportunities for individuals with disabilities.
Sec. 610. Independent living services and centers for independent 
                            living.
Sec. 611. Helen Keller National Center Act.
Sec. 612. President's Committee on Employment of People With 
                            Disabilities.
Sec. 613. Conforming amendments.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Adult.--In paragraph (14) and title III (other than 
        section 302), the term ``adult'' means an individual who is age 
        22 or older.
            (2) Adult education.--The term ``adult education'' means 
        services or instruction below the postsecondary level for 
        individuals--
                    (A) who have attained 16 years of age or who are 
                beyond the age of compulsory school attendance under 
                State law;
                    (B) who are not enrolled in secondary school; and
                    (C) who--
                            (i) lack sufficient mastery of basic 
                        educational skills to enable the individuals to 
                        function effectively in society;
                            (ii) do not possess a secondary school 
                        diploma or its recognized equivalent; or
                            (iii) are unable to speak, read, or write 
                        the English language.
            (3) Area vocational education school.--The term ``area 
        vocational education school'' means--
                    (A) a specialized public secondary school used 
                exclusively or principally for the provision of 
                vocational education for individuals who seek to study 
                and prepare for entering the labor market;
                    (B) the department of a public 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 public or nonprofit technical institute or 
                vocational school used exclusively or principally for 
                the provision of vocational education to individuals 
                who--
                            (i)(I) have completed public secondary 
                        school; or
                            (II) have left public secondary school; and
                            (ii) seek to study and prepare for entering 
                        the labor market; or
                    (D) the department or division of a junior college, 
                community college, or university that--
                            (i) operates under the policies of the 
                        appropriate State agency that oversees 
                        postsecondary education and is approved under 
                        subpart 2 of part H of title IV of the Higher 
                        Education Act of 1965 (20 U.S.C. 1099b et 
                        seq.); and
                            (ii) provides vocational education in not 
                        fewer than 5 different occupational fields 
                        leading to immediate employment but not 
                        necessarily leading to a degree; and
                            (iii) admits as regular students both 
                        individuals who have completed public secondary 
                        school and individuals who have left public 
                        secondary school.
            (4) Chief elected official.--The term ``chief elected 
        official'' means--
                    (A) the chief elected executive officer of a unit 
                of general local government in a local area; and
                    (B) in a case in which a local area includes more 
                than 1 unit of general local government, the 
                individuals designated under the agreement described in 
                section 308(d)(1)(B)(i).
            (5) Disadvantaged adult.--In title III, and except as 
        provided in section 302, the term ``disadvantaged adult'' means 
        an adult who is a low-income individual.
            (6) Dislocated worker.--The term ``dislocated worker'' 
        means an individual who--
                    (A)(i) has been terminated or laid off, or who has 
                received a notice of termination or layoff, from 
                employment;
                    (ii)(I) is eligible for or has exhausted 
                entitlement to unemployment compensation; or
                    (II) has been employed for a duration sufficient to 
                demonstrate, to the appropriate entity at a one-stop 
                customer service center, attachment to the workforce, 
                but is not eligible for unemployment compensation due 
                to insufficient earnings or having performed services 
                for an employer that were not covered under a State 
                unemployment compensation law; and
                    (iii) is unlikely to return to a previous industry 
                or occupation;
                    (B)(i) has been terminated or laid off, or has 
                received a notice of termination or layoff, from 
                employment as a result of any permanent closure of, or 
                any substantial layoff at, a plant, facility, or 
                enterprise;
                    (ii) is employed at a facility at which the 
                employer has made a general announcement that such 
                facility will close within 180 days; or
                    (iii) for purposes of eligibility to receive 
                services under title III other than training services 
                described in section 315(c)(3), intensive services, or 
                supportive services, is employed at a facility at which 
                the employer has made a general announcement that such 
                facility will close;
                    (C) was self-employed (including employment as a 
                farmer, a rancher, or a fisherman) but is unemployed as 
                a result of general economic conditions in the 
                community in which the individual resides or because of 
                natural disasters; or
                    (D) is a displaced homemaker.
            (7) Displaced homemaker.--The term ``displaced homemaker'' 
        means an individual who has been providing unpaid services to 
        family members in the home and who--
                    (A) has been dependent on the income of another 
                family member but is no longer supported by that 
                income; and
                    (B) is unemployed or underemployed and is 
                experiencing difficulty in obtaining or upgrading 
                employment.
            (8) Economic development agencies.--The term ``economic 
        development agencies'' includes local planning and zoning 
        commissions or boards, community development agencies, and 
        other local agencies and institutions responsible for 
        regulating, promoting, or assisting in local economic 
        development.
            (9) 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.
            (10) Elementary school; local educational agency.--The 
        terms ``elementary school'' and ``local educational agency'' 
        have the meanings given the terms in section 14101 of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        8801).
            (11) Eligible agency.--The term ``eligible agency'' in the 
        case of vocational education, or adult education and literacy, 
        activities or requirements described in this Act, means the 
        sole entity or agency in a State or an outlying area 
        responsible for administering or supervising policy for 
        vocational education, or adult education and literacy, 
        respectively, in the State or outlying area, respectively, 
        consistent with the law of the State or outlying area, 
        respectively.
            (12) Eligible institution.--In title I, the term ``eligible 
        institution'' means--
                    (A) an institution of higher education;
                    (B) a local educational agency providing education 
                at the postsecondary level;
                    (C) an area vocational education school providing 
                education at the postsecondary level;
                    (D) a postsecondary educational institution 
                controlled by the Bureau of Indian Affairs or operated 
                by or on behalf of any Indian tribe that is eligible to 
                contract with the Secretary of the Interior for the 
                administration of programs under the Indian Self-
                Determination Act or the Act of April 16, 1934 (48 
                Stat. 596; 25 U.S.C. 452 et seq.); and
                    (E) a consortium of 2 or more of the entities 
                described in subparagraphs (A) through (D).
            (13) Eligible provider.--The term ``eligible provider''--
                    (A) in title II, means--
                            (i) a local educational agency;
                            (ii) a community-based organization;
                            (iii) an institution of higher education;
                            (iv) a public or private nonprofit agency;
                            (v) a consortium of such agencies, 
                        organizations, or institutions; or
                            (vi) a library; and
                    (B) in title III, used with respect to--
                            (i) training services (other than on-the-
                        job training), means a provider who is 
                        identified in accordance with section 312;
                            (ii) youth activities, means a provider who 
                        is awarded a grant in accordance with section 
                        313; or
                            (iii) other workforce investment 
                        activities, means a public or private entity 
                        selected to be responsible for such activities, 
                        in accordance with subtitle A of title III, 
                        such as a one-stop customer service center 
                        operator designated or certified under section 
                        311.
            (14) Employment and training activity.--The term 
        ``employment and training activity'' means an activity 
        described in section 314(b)(1) or subsection (c)(1) or (d) of 
        section 315, carried out for an adult or dislocated worker.
            (15) English literacy program.--The term ``English literacy 
        program'' means a program of instruction designed to help 
        individuals of limited English proficiency achieve competence 
        in the English language.
            (16) Governor.--The term ``Governor'' means the chief 
        executive officer of a State.
            (17) Individual with a disability.--
                    (A) In general.--The term ``individual with a 
                disability'' means an individual with any disability 
                (as defined in section 3 of the Americans with 
                Disabilities Act of 1990 (42 U.S.C. 12102)).
                    (B) Individuals with disabilities.--The term 
                ``individuals with disabilities'' means more than 1 
                individual with a disability.
            (18) Individual of limited english proficiency.--The term 
        ``individual of limited English proficiency'' means an adult or 
        out-of-school youth who has limited ability in speaking, 
        reading, writing, or understanding the English language, and--
                    (A) whose native language is a language other than 
                English; or
                    (B) who lives in a family or community environment 
                where a language other than English is the dominant 
                language.
            (19) Institution of higher education.--Except for purposes 
        of subtitle B of title I, the term ``institution of higher 
        education'' means an institution of higher education, as 
        defined in section 1201(a) of the Higher Education Act of 1965 
        (20 U.S.C. 1141(a)).
            (20) Literacy.--
                    (A) In general.--The term ``literacy'' means an 
                individual's ability to read, write, and speak in 
                English, compute, and solve problems, at levels of 
                proficiency necessary to function on the job and in 
                society.
                    (B) Workplace literacy program.--The term 
                ``workplace literacy program'' means a program of 
                literacy activities that is offered for the purpose of 
                improving the productivity of the workforce through the 
                improvement of literacy skills.
            (21) Local area.--In paragraph (4) and title III, the term 
        ``local area'' means a local workforce investment area 
        designated under section 307.
            (22) Local partnership.--In title III, the term ``local 
        partnership'' means a local workforce investment partnership 
        established under section 308(a).
            (23) Local performance measure.--The term ``local 
        performance measure'' means a performance measure established 
        under section 321(c).
            (24) Low-income individual.--In paragraph (51) and title 
        III, the term ``low-income individual'' means an individual 
        who--
                    (A) receives, or is a member of a family that 
                receives, cash payments under a Federal, State, or 
                local income-based public assistance program;
                    (B) received an income, or is a member of a family 
                that received a total family income, for the 6-month 
                period prior to application for the program involved 
                (exclusive of unemployment compensation, child support 
                payments, payments described in subparagraph (A), and 
                old-age and survivors insurance benefits received under 
                section 202 of the Social Security Act (42 U.S.C. 402)) 
                that, in relation to family size, does not exceed the 
                higher of--
                            (i) the poverty line, for an equivalent 
                        period; or
                            (ii) 70 percent of the lower living 
                        standard income level, for an equivalent 
                        period;
                    (C) is a member of a household that receives (or 
                has been determined within the 6-month period prior to 
                application for the program involved to be eligible to 
                receive) food stamps pursuant to the Food Stamp Act of 
                1977 (7 U.S.C. 2011 et seq.);
                    (D) qualifies as a homeless individual, as defined 
                in subsections (a) and (c) of section 103 of the 
                Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 
                11302);
                    (E) is a foster child on behalf of whom State or 
                local government payments are made; or
                    (F) in cases permitted by regulations of the 
                Secretary of Labor, is an individual with a disability 
                whose own income meets the requirements of a program 
                described in subparagraph (A) or of subparagraph (B), 
                but who is a member of a family whose income does not 
                meet such requirements.
            (25) Lower living standard income level.--The term ``lower 
        living standard income level'' means that income level 
        (adjusted for regional, metropolitan, urban, and rural 
        differences and family size) determined annually by the 
        Secretary of Labor based on the most recent lower living family 
        budget issued by the Secretary of Labor.
            (26) Nontraditional employment.--In titles I and III, the 
        term ``nontraditional employment'' refers to occupations or 
        fields of work for which individuals from one gender comprise 
        less than 25 percent of the individuals employed in each such 
        occupation or field of work.
            (27) On-the-job training.--The term ``on-the-job training'' 
        means training in the public or private sector that is provided 
        to a paid participant while engaged in productive work in a job 
        that--
                    (A) provides knowledge or skills essential to the 
                full and adequate performance of the job;
                    (B) provides reimbursement to employers of up to 50 
                percent of the wage rate of the participant, for the 
                extraordinary costs of providing the training and 
                additional supervision related to the training; and
                    (C) is limited in duration as appropriate to the 
                occupation for which the participant is being trained.
            (28) Out-of-school youth.--The term ``out-of-school youth'' 
        means--
                    (A) a youth who is a school dropout; or
                    (B) a youth who has received a secondary school 
                diploma or its equivalent but is basic literacy skills 
                deficient, unemployed, or underemployed.
            (29) 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.
            (30) Participant.--The term ``participant'', used with 
        respect to an activity carried out under title III, means an 
        individual participating in the activity.
            (31) Postsecondary educational institution.--The term 
        ``postsecondary educational institution'' means--
                    (A) an institution of higher education that 
                provides not less than a 2-year program of instruction 
                that is acceptable for credit toward a bachelor's 
                degree;
                    (B) a tribally controlled community college; or
                    (C) a nonprofit educational institution offering 
                certificate or apprenticeship programs at the 
                postsecondary level.
            (32) 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.
            (33) Public assistance.--In title III, the term ``public 
        assistance'' means Federal, State, or local government cash 
        payments for which eligibility is determined by a needs or 
        income test.
            (34) Rapid response activity.--In title III, the term 
        ``rapid response activity'' means an activity provided by a 
        State, or by an entity designated by a State, with funds 
        provided by the State under section 306(a)(2), in the case of a 
        permanent closure or mass layoff at a plant, facility, or 
        enterprise, or a natural or other disaster, that results in 
        mass job dislocation, in order to assist dislocated workers in 
        obtaining reemployment as soon as possible, with services 
        including--
                    (A) the establishment of onsite contact with 
                employers and employee representatives--
                            (i) immediately after the State is notified 
                        of a current or projected permanent closure or 
                        mass layoff; or
                            (ii) in the case of a disaster, immediately 
                        after the State is made aware of mass job 
                        dislocation as a result of such disaster;
                    (B) the provision of information and access to 
                available employment and training activities;
                    (C) assistance in establishing a labor-management 
                committee, voluntarily agreed to by labor and 
                management, with the ability to devise and implement a 
                strategy for assessing the employment and training 
                needs of dislocated workers and obtaining services to 
                meet such needs;
                    (D) the provision of emergency assistance adapted 
                to the particular closure, layoff, or disaster; and
                    (E) the provision of assistance to the local 
                community in developing a coordinated response and in 
                obtaining access to State economic development 
                assistance.
            (35) School dropout.--The term ``school dropout'' means an 
        individual who is no longer attending any school and who has 
        not received a secondary school diploma or its recognized 
        equivalent.
            (36) Secondary school.--The term ``secondary school'' has 
        the meaning given the term in section 14101 of the Elementary 
        and Secondary Education Act of 1965 (20 U.S.C. 8801), except 
        that the term does not include education below grade 9.
            (37) Secretary.--
                    (A) Titles i and ii.--In titles I and II, the term 
                ``Secretary'' means the Secretary of Education.
                    (B) Title iii.--In title III, the term 
                ``Secretary'' means the Secretary of Labor.
            (38) State.--The term ``State'' means each of the several 
        States of the United States, the District of Columbia, and the 
        Commonwealth of Puerto Rico.
            (39) 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 agency or officer, an agency or officer 
        designated by the Governor or by State law.
            (40) State performance measure.--In title III, the term 
        ``State performance measure'' means a performance measure 
        established under section 321(b).
            (41) Statewide partnership.--The term ``statewide 
        partnership'' means a partnership established under section 
        303.
            (42) Supportive services.--
                    (A) Title i.--In title I, the term ``supportive 
                services'' means services related to curriculum 
                modification, equipment modification, classroom 
                modification, supportive personnel, and instructional 
                aids and devices.
                    (B) Title iii.--In title III, the term ``supportive 
                services'' means services such as transportation, child 
                care, dependent care, housing, and needs-based 
                payments, that are necessary to enable an individual to 
                participate in employment and training activities or 
                youth activities.
            (43) Tribally controlled community college.--The term 
        ``tribally controlled community college'' means an institution 
        that receives assistance under the Tribally Controlled 
        Community College Assistance Act of 1978 (25 U.S.C. 1801 et 
        seq.) or the Navajo Community College Act (25 U.S.C. 640a et 
        seq.).
            (44) Unit of general local government.--In title III, the 
        term ``unit of general local government'' means any general 
        purpose political subdivision of a State that has the power to 
        levy taxes and spend funds, as well as general corporate and 
        police powers.
            (45) Veteran; related definitions.--
                    (A) Veteran.--The term ``veteran'' means an 
                individual who served in the active military, naval, or 
                air service, and who was discharged or released from 
                such service under conditions other than dishonorable.
                    (B) Recently separated veteran.--The term 
                ``recently separated veteran'' means any veteran who 
                applies for participation under title III within 48 
                months of the discharge or release from active 
                military, naval, or air service.
            (46) Vocational education.--The term ``vocational 
        education'' means organized education that--
                    (A) offers a sequence of courses that provides 
                individuals with the academic and technological 
                knowledge and skills the individuals need to prepare 
                for further education and for careers (other than 
                careers requiring a baccalaureate, master's, or 
                doctoral degree) in current or emerging employment 
                sectors; and
                    (B) includes competency-based applied learning that 
                contributes to the academic knowledge, higher-order 
                reasoning and problem-solving skills, work attitudes, 
                general employability skills, technological skills, and 
                occupation-specific skills, of an individual.
            (47) 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.).
            (48) Vocational student organization.--
                    (A) In general.--The term ``vocational student 
                organization'' means an organization for individuals 
                enrolled in a vocational education program.
                    (B) State and national units.--An organization 
                described in subparagraph (A) may have State and 
                national units that aggregate the work and purposes of 
                instruction in vocational education at the local level.
            (49) Welfare recipient.--The term ``welfare recipient'' 
        means a person receiving payments described in paragraph 
        (24)(A).
            (50) Workforce investment activity.--The term ``workforce 
        investment activity'' means an employment and training 
        activity, a youth activity, and an activity described in 
        section 314.
            (51) Youth.--In paragraph (52) and title III (other than 
        section 302 and subtitles B and C of such title), the term 
        ``youth'' means an individual who--
                    (A) is not less than age 14 and not more than age 
                21;
                    (B) is a low-income individual; and
                    (C) an individual who is 1 or more of the 
                following:
                            (i) Deficient in basic literacy skills.
                            (ii) A school dropout.
                            (iii) Homeless, a runaway, or a foster 
                        child.
                            (iv) Pregnant or a parent.
                            (v) An offender.
                            (vi) An individual who requires additional 
                        assistance to complete an educational program, 
                        or to secure and hold employment.
            (52) Youth activity.--The term ``youth activity'' means an 
        activity described in section 316, carried out for youth.
            (53) Youth partnership.--The term ``youth partnership'' 
        means a partnership established under section 308(i).

      TITLE I--VOCATIONAL, TECHNOLOGICAL, AND TECH-PREP EDUCATION

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Carl D. Perkins Vocational and 
Applied Technology Education Act of 1998''.

SEC. 102. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds that--
            (1) in order to be successful workers, citizens, and 
        learners in the 21st century, individuals will need--
                    (A) a combination of strong basic and advanced 
                academic skills;
                    (B) computer and other technical skills;
                    (C) theoretical knowledge;
                    (D) communications, problem-solving, teamwork, and 
                employability skills; and
                    (E) the ability to acquire additional knowledge and 
                skills throughout a lifetime;
            (2) students participating in vocational education can 
        achieve challenging academic and technical skills, and may 
        learn better and retain more, when the students learn in 
        context, learn by doing, and have an opportunity to learn and 
        understand how academic, vocational, and technological skills 
        are used outside the classroom;
            (3)(A) many high school graduates in the United States do 
        not complete a rigorous course of study that prepares the 
        graduates for completing a 2-year or 4-year college degree or 
        for entering high-skill, high-wage careers;
            (B) adult students are an increasingly diverse group and 
        often enter postsecondary education unprepared for academic and 
        technical work; and
            (C) certain individuals often face great challenges in 
        acquiring the knowledge and skills needed for successful 
        employment;
            (4) community colleges, technical colleges, and area 
        vocational education schools are offering adults a gateway to 
        higher education, and access to quality certificates and 
        degrees that increase their skills and earnings, by--
                    (A) ensuring that the academic, vocational, and 
                technological skills gained by students adequately 
                prepare the students for the workforce; and
                    (B) enhancing connections with employers and 4-year 
                institutions of higher education;
            (5) local, State, and national programs supported under the 
        Carl D. Perkins Vocational and Applied Technology Education Act 
        (20 U.S.C. 2301 et seq.) (as such Act was in effect on the day 
        before the date of enactment of this Act) have assisted many 
        students in obtaining technical, academic, and employability 
        skills, and tech-prep education;
            (6) the Federal Government can assist States and localities 
        by carrying out nationally significant research, program 
        development, demonstration, dissemination, evaluation, data 
        collection, professional development, and technical assistance 
        activities that support State and local efforts regarding 
        vocational education; and
            (7) through a performance partnership with States and 
        localities based on clear programmatic goals, increased State 
        and local flexibility, improved accountability, and performance 
        measures, the Federal Government will provide to States and 
        localities financial assistance for the improvement and 
        expansion of vocational education for students participating in 
        vocational education.
    (b) Purpose.--The purpose of this title is to make the United 
States more competitive in the world economy by developing more fully 
the academic, technological, vocational, and employability skills of 
secondary students and postsecondary students who elect to enroll in 
vocational education programs, by--
            (1) building on the efforts of States and localities to 
        develop challenging academic standards;
            (2) promoting the development of services and activities 
        that integrate academic, vocational, and technological 
        instruction, and that link secondary and postsecondary 
        education for participating vocational education students;
            (3) increasing State and local flexibility in providing 
        services and activities designed to develop, implement, and 
        improve vocational education, including tech-prep education; 
        and
            (4) disseminating national research, and providing 
        professional development and technical assistance, that will 
        improve vocational education programs, services, and 
        activities.

SEC. 103. VOLUNTARY SELECTION AND PARTICIPATION.

    No funds made available under this title shall be used--
            (1) to require any secondary school student to choose or 
        pursue a specific career path or major; and
            (2) to mandate that any individual participate in a 
        vocational education program, including a vocational education 
        program that requires the attainment of a federally funded 
        skill level or standard.

SEC. 104. CONSTRUCTION.

    Nothing in this Act shall be construed to permit, allow, encourage, 
or authorize any Federal control over any aspect of a private, 
religious, or home school, regardless of whether a home school is 
treated as a private school or home school under State law. This 
section shall not be construed to bar students attending private, 
religious, or home schools from participation in programs or services 
under this Act.

                    Subtitle A--Vocational Education

                     CHAPTER 1--FEDERAL PROVISIONS

SEC. 111. RESERVATIONS AND STATE ALLOTMENT.

    (a) Reservations and State Allotment.--
            (1) Reservations.--From the sum appropriated under section 
        171 for each fiscal year, the Secretary shall reserve--
                    (A) 0.2 percent to carry out section 113;
                    (B) 1.80 percent to carry out sections 114 and 115, 
                of which--
                            (i) 1.25 percent of the sum shall be 
                        available to carry out section 114(b);
                            (ii) 0.25 percent of the sum shall be 
                        available to carry out section 114(c); and
                            (iii) 0.30 percent of the sum shall be 
                        available to carry out section 115; and
                    (C) 1.3 percent to carry out sections 116, 163, 
                164, 165, and 166, of which not less than 0.65 percent 
                of the sum shall be available to carry out section 116 
                for each of the fiscal years 2001 through 2005.
            (2) State allotment formula.--Subject to paragraphs (3) and 
        (4), from the remainder of the sums appropriated under section 
        171 and not reserved under paragraph (1) for a fiscal year, the 
        Secretary shall allot to a State for the fiscal year--
                    (A) an amount that bears the same ratio to 50 
                percent of the sums being allotted as the product of 
                the population aged 15 to 19 inclusive, in the State in 
                the fiscal year preceding the fiscal year for which the 
                determination is made and the State's allotment ratio 
                bears to the sum of the corresponding products for all 
                the States;
                    (B) an amount that bears the same ratio to 20 
                percent of the sums being allotted as the product of 
                the population aged 20 to 24, inclusive, in the State 
                in the fiscal year preceding the fiscal year for which 
                the determination is made and the State's allotment 
                ratio bears to the sum of the corresponding products 
                for all the States;
                    (C) an amount that bears the same ratio to 15 
                percent of the sums being allotted as the product of 
                the population aged 25 to 65, inclusive, in the State 
                in the fiscal year preceding the fiscal year for which 
                the determination is made and the State's allotment 
                ratio bears to the sum of the corresponding products 
                for all the States; and
                    (D) an amount that bears the same ratio to 15 
                percent of the sums being allotted as the amounts 
                allotted to the State under subparagraphs (A), (B), and 
                (C) for such years bears to the sum of the amounts 
                allotted to all the States under subparagraphs (A), 
                (B), and (C) for such year.
            (3) Minimum allotment.--
                    (A) In general.--Notwithstanding any other 
                provision of law and subject to subparagraphs (B) and 
                (C), and paragraph (4), no State shall receive for a 
                fiscal year under this subsection less than \1/2\ of 1 
                percent of the amount appropriated under section 171 
                and not reserved under paragraph (1) for such fiscal 
                year. Amounts necessary for increasing such payments to 
                States to comply with the preceding sentence shall be 
                obtained by ratably reducing the amounts to be paid to 
                other States.
                    (B) Requirement.--Due to the application of 
                subparagraph (A), for any fiscal year, no State shall 
                receive more than 150 percent of the amount the State 
                received under this subsection for the preceding fiscal 
                year (or in the case of fiscal year 1999 only, under 
                section 101 of the Carl D. Perkins Vocational and 
                Applied Technology Education Act, as such section was 
                in effect on the day before the date of enactment of 
                this Act).
                    (C) Special rule.--
                            (i) In general.--Subject to paragraph (4), 
                        no State, by reason of subparagraph (A), shall 
                        be allotted for a fiscal year more than the 
                        lesser of--
                                    (I) 150 percent of the amount that 
                                the State received in the preceding 
                                fiscal year (or in the case of fiscal 
                                year 1999 only, under section 101 of 
                                the Carl D. Perkins Vocational and 
                                Applied Technology Education Act, as 
                                such section was in effect on the day 
                                before the date of enactment of this 
                                Act); and
                                    (II) the amount calculated under 
                                clause (ii).
                            (ii) Amount.--The amount calculated under 
                        this clause shall be determined by 
                        multiplying--
                                    (I) the number of individuals in 
                                the State counted under paragraph (2) 
                                in the preceding fiscal year; by
                                    (II) 150 percent of the national 
                                average per pupil payment made with 
                                funds available under this section for 
                                that year (or in the case of fiscal 
                                year 1999, only, under section 101 of 
                                the Carl D. Perkins Vocational and 
                                Applied Technology Education Act, as 
                                such section was in effect on the day 
                                before the date of enactment of this 
                                Act).
            (4) Hold harmless.--
                    (A) In general.--No State shall receive an 
                allotment under this section for a fiscal year that is 
                less than the allotment the State received under part A 
                of title I of the Carl D. Perkins Vocational and 
                Applied Technology Education Act (20 U.S.C. 2311 et 
                seq.) (as such part was in effect on the day before the 
                date of enactment of this Act) for fiscal year 1997.
                    (B) Ratable reduction.--If for any fiscal year the 
                amount appropriated for allotments under this section 
                is insufficient to satisfy the provisions of 
                subparagraph (A), the payments to all States under such 
                subparagraph shall be ratably reduced.
    (b) Reallotment.--If the Secretary determines that any amount of 
any State's allotment under subsection (a) for any fiscal year will not 
be required for such fiscal year for carrying out the activities for 
which such amount has been allotted, the Secretary shall make such 
amount available for reallotment. Any such reallotment among other 
States shall occur on such dates during the same year as the Secretary 
shall fix, and shall be made on the basis of criteria established by 
regulation. No funds may be reallotted for any use other than the use 
for which the funds were appropriated. Any amount reallotted to a State 
under this subsection for any fiscal year shall remain available for 
obligation during the succeeding fiscal year and shall be deemed to be 
part of the State's allotment for the year in which the amount is 
obligated.
    (c) Allotment Ratio.--
            (1) In general.--The allotment ratio for any State shall be 
        1.00 less the product of--
                    (A) 0.50; and
                    (B) the quotient obtained by dividing the per 
                capita income for the State by the per capita income 
                for all the States (exclusive of the Commonwealth of 
                Puerto Rico and the United States Virgin Islands), 
                except that--
                            (i) the allotment ratio in no case shall be 
                        more than 0.60 or less than 0.40; and
                            (ii) the allotment ratio for the 
                        Commonwealth of Puerto Rico and the United 
                        States Virgin Islands shall be 0.60.
            (2) Promulgation.--The allotment ratios shall be 
        promulgated by the Secretary for each fiscal year between 
        October 1 and December 31 of the fiscal year preceding the 
        fiscal year for which the determination is made. Allotment 
        ratios shall be computed on the basis of the average of the 
        appropriate per capita incomes for the 3 most recent 
        consecutive fiscal years for which satisfactory data are 
        available.
            (3) Definition of per capita income.--For the purpose of 
        this section, the term ``per capita income'' means, with 
        respect to a fiscal year, the total personal income in the 
        calendar year ending in such year, divided by the population of 
        the area concerned in such year.
            (4) Population determination.--For the purposes of this 
        section, population shall be determined by the Secretary on the 
        basis of the latest estimates available to the Department of 
        Education.
    (d) Definition of State.--For the purpose of this section, the term 
``State'' means each of the several States of the United States, the 
Commonwealth of Puerto Rico, the District of Columbia, and the United 
States Virgin Islands.

SEC. 112. PERFORMANCE MEASURES AND EXPECTED LEVELS OF PERFORMANCE.

    (a) Publication of Performance Measures.--
            (1) In general.--The Secretary shall publish the following 
        performance measures to assess the progress of each eligible 
        agency:
                    (A) Student attainment of academic skills.
                    (B) Student attainment of job readiness skills.
                    (C) Student attainment of vocational skill 
                proficiencies for students in vocational education 
                programs, that are necessary for the receipt of a 
                secondary school diploma or its recognized equivalent, 
                or a secondary school skill certificate.
                    (D) Receipt of a postsecondary degree or 
                certificate.
                    (E) Retention in, and completion of, secondary 
                school education (as determined under State law), 
                placement in, retention in, and completion of 
                postsecondary education, employment, or military 
                service.
                    (F) Participation in and completion of vocational 
                education programs that lead to nontraditional 
                employment.
            (2) Special rule.--The Secretary shall establish 1 set of 
        performance measures for students served under this title, 
        including populations described in section 124(c)(16).
    (b) Expected Levels of Performance.--In developing a State plan, 
each eligible agency shall negotiate with the Secretary the expected 
levels of performance for the performance measures described in 
subsection (a).

SEC. 113. ASSISTANCE FOR THE OUTLYING AREAS.

    (a) In General.--From the funds reserved under section 
111(a)(1)(A), the Secretary--
            (1) shall award a grant in the amount of $500,000 to Guam 
        for vocational education and training for the purpose of 
        providing direct educational services related to vocational 
        education, including--
                    (A) teacher and counselor training and retraining;
                    (B) curriculum development; and
                    (C) improving vocational education programs in 
                secondary schools and institutions of higher education, 
                or improving cooperative education programs involving 
                both secondary schools and institutions of higher 
                education; and
            (2) shall award a grant in the amount of $190,000 to each 
        of American Samoa and the Commonwealth of the Northern Mariana 
        Islands for vocational education for the purpose described in 
        paragraph (1).
    (b) Special Rule.--
            (1) In general.--From funds reserved under section 
        111(a)(1)(A) and not awarded under subsection (a), the 
        Secretary shall make available the amount awarded to the 
        Republic of the Marshall Islands, the Federated States of 
        Micronesia, and the Republic of Palau under section 101A of the 
        Carl D. Perkins Vocational and Applied Technology Education Act 
        (as such section was in effect on the day before the date of 
        enactment of this Act) to award grants under the succeeding 
        sentence. From the amount made available under the preceding 
        sentence, the Secretary shall award grants, to Guam, American 
        Samoa, the Commonwealth of the Northern Mariana Islands, the 
        Republic of the Marshall Islands, the Federated States of 
        Micronesia, or the Republic of Palau for the purpose described 
        in subsection (a)(1).
            (2) Award basis.--The Secretary shall award grants pursuant 
        to paragraph (1) on a competitive basis and pursuant to 
        recommendations from the Pacific Region Educational Laboratory 
        in Honolulu, Hawaii.
            (3) Termination of eligibility.--Notwithstanding any other 
        provision of law, the Republic of the Marshall Islands, the 
        Federated States of Micronesia, and the Republic of Palau shall 
        not receive any funds under this title for any fiscal year that 
        begins after September 30, 2004.
            (4) Administrative costs.--The Secretary may provide not 
        more than 5 percent of the funds made available for grants 
        under this subsection to pay the administrative costs of the 
        Pacific Region Educational Laboratory regarding activities 
        assisted under this subsection.

SEC. 114. INDIAN AND HAWAIIAN NATIVE PROGRAMS.

    (a) Definitions; Authority of Secretary.--
            (1) Definitions.--For the purpose of this section--
                    (A) the term ``Act of April 16, 1934'' means the 
                Act entitled ``An Act authorizing the Secretary of the 
                Interior to arrange with States or territories for the 
                education, medical attention, relief of distress, and 
                social welfare of Indians, and for other purposes'', 
                enacted April 16, 1934 (48 Stat. 596; 25 U.S.C. 452 et 
                seq.);
                    (B) the term ``Bureau funded school'' has the 
                meaning given the term in section 1146 of the Education 
                Amendments of 1978 (25 U.S.C. 2026);
                    (C) the term ``Hawaiian native'' means any 
                individual any of whose ancestors were natives, prior 
                to 1778, of the area which now comprises the State of 
                Hawaii; and
                    (D) the terms ``Indian'' and ``Indian tribe'' have 
                the meanings given the terms in section 2 of the 
                Tribally Controlled Community College Assistance Act of 
                1978 (25 U.S.C. 1801).
            (2) Authority.--From the funds reserved pursuant to section 
        111(a)(1)(B), the Secretary shall award grants and enter into 
        contracts for Indian and Hawaiian native programs in accordance 
        with this section, except that such programs shall not include 
        secondary school programs in Bureau funded schools.
    (b) Indian Programs.--
            (1) Authority.--
                    (A) In general.--Except as provided in subparagraph 
                (B), from the funds reserved pursuant to section 
                111(a)(1)(B)(i), the Secretary is directed--
                            (i) upon the request of any Indian tribe, 
                        or a tribal organization serving an Indian 
                        tribe, which is eligible to contract with the 
                        Secretary of the Interior for the 
                        administration of programs under the Indian 
                        Self-Determination Act (25 U.S.C. 450 et seq.) 
                        or under the Act of April 16, 1934; or
                            (ii) upon an application received from a 
                        Bureau funded school offering postsecondary or 
                        adult education programs filed at such time and 
                        under such conditions as the Secretary may 
                        prescribe,
                to make grants to or enter into contracts with any 
                Indian tribe or tribal organization, or to make a grant 
                to such Bureau funded school, as appropriate, to plan, 
                conduct, and administer programs or portions of 
                programs authorized by, and consistent with the purpose 
                of, this title.
                    (B) Requirements.--The grants or contracts 
                described in subparagraph (A), shall be subject to the 
                following:
                            (i) Tribes and tribal organizations.--Such 
                        grants or contracts with any tribes or tribal 
                        organization shall be subject to the terms and 
                        conditions of section 102 of the Indian Self-
                        Determination Act (25 U.S.C. 450f) and shall be 
                        conducted in accordance with the provisions of 
                        sections 4, 5, and 6 of the Act of April 16, 
                        1934, which are relevant to the programs 
                        administered under this subsection.
                            (ii) Bureau funded schools.--Such grants to 
                        Bureau funded schools shall not be subject to 
                        the requirements of the Indian Self-
                        Determination Act (25 U.S.C. 450f et seq.) or 
                        the Act of April 16, 1934.
                    (C) Regulations.--If the Secretary promulgates any 
                regulations applicable to subparagraph (B), the 
                Secretary shall--
                            (i) confer with, and allow for active 
                        participation by, representatives of Indian 
                        tribes, tribal organizations, and individual 
                        tribal members; and
                            (ii) promulgate the regulations under 
                        subchapter III of chapter 5 of title 5, United 
                        States Code, commonly known as the ``Negotiated 
                        Rulemaking Act of 1990''.
                    (D) Application.--Any Indian tribe, tribal 
                organization, or Bureau funded school eligible to 
                receive assistance under this paragraph may apply 
                individually or as part of a consortium with another 
                such Indian tribe, tribal organization, or Bureau 
                funded school.
                    (E) Performance measures and evaluation.--Any 
                Indian tribe, tribal organization, or Bureau funded 
                school that receives assistance under this section 
                shall--
                            (i) establish performance measures and 
                        expected levels of performance to be achieved 
                        by students served under this section; and
                            (ii) evaluate the quality and effectiveness 
                        of activities and services provided under this 
                        subsection.
                    (F) Minimum.--In the case of a Bureau funded 
                school, the minimum amount of a grant awarded or 
                contract entered into under this section shall be 
                $35,000.
                    (G) Restrictions.--The Secretary may not place upon 
                grants awarded or contracts entered into under this 
                paragraph any restrictions relating to programs other 
                than restrictions that apply to grants made to or 
                contracts entered into with States pursuant to 
                allotments under section 111(a). The Secretary, in 
                awarding grants and entering into contracts under this 
                paragraph, shall ensure that the grants and contracts 
                will improve vocational education programs, and shall 
                give special consideration to--
                            (i) grants or contracts which involve, 
                        coordinate with, or encourage tribal economic 
                        development plans; and
                            (ii) applications from tribally controlled 
                        community colleges that--
                                    (I) are accredited or are 
                                candidates for accreditation by a 
                                nationally recognized accreditation 
                                organization as an institution of 
                                postsecondary vocational education; or
                                    (II) operate vocational education 
                                programs that are accredited or are 
                                candidates for accreditation by a 
                                nationally recognized accreditation 
                                organization, and issue certificates 
                                for completion of vocational education 
                                programs.
                    (H) Stipends.--
                            (i) In general.--Funds received pursuant to 
                        grants or contracts described in subparagraph 
                        (A) may be used to provide stipends to students 
                        who are enrolled in vocational education 
                        programs and who have acute economic needs 
                        which cannot be met through work-study 
                        programs.
                            (ii) Amount.--Stipends described in clause 
                        (i) shall not exceed reasonable amounts as 
                        prescribed by the Secretary.
            (2) Matching.--If sufficient funding is available, the 
        Bureau of Indian Affairs shall expend an amount equal to the 
        amount made available under this subsection, relating to 
        programs for Indians, to pay a part of the costs of programs 
        funded under this subsection. During each fiscal year the 
        Bureau of Indian Affairs shall expend no less than the amount 
        expended during the prior fiscal year on vocational education 
        programs, services, and activities administered either directly 
        by, or under contract with, the Bureau of Indian Affairs, 
        except that in no year shall funding for such programs, 
        services, and activities be provided from accounts and programs 
        that support other Indian education programs. The Secretary and 
        the Assistant Secretary of the Interior for Indian Affairs 
        shall prepare jointly a plan for the expenditure of funds made 
        available and for the evaluation of programs assisted under 
        this subsection. Upon the completion of a joint plan for the 
        expenditure of the funds and the evaluation of the programs, 
        the Secretary shall assume responsibility for the 
        administration of the program, with the assistance and 
        consultation of the Bureau of Indian Affairs.
            (3) Special rule.--Programs funded under this subsection 
        shall be in addition to such other programs, services, and 
        activities as are made available to eligible Indians under 
        other provisions of this Act.
    (c) Hawaiian Native Programs.--From the funds reserved pursuant to 
section 111(a)(1)(B)(ii), the Secretary shall award grants or enter 
into contracts, with organizations primarily serving and representing 
Hawaiian natives which are recognized by the Governor of the State of 
Hawaii, for the planing, conduct, or administration of programs, or 
portions thereof, that are described in this title and consistent with 
the purpose of this title, for the benefit of Hawaiian natives.

SEC. 115. TRIBALLY CONTROLLED POSTSECONDARY VOCATIONAL INSTITUTIONS.

    (a) In General.--It is the purpose of this section to provide 
grants for the operation and improvement of tribally controlled 
postsecondary vocational institutions to ensure continued and expanded 
educational opportunities for Indian students, and to allow for the 
improvement and expansion of the physical resources of such 
institutions.
    (b) Grants Authorized.--
            (1) In general.--From the funds reserved pursuant to 
        section 111(a)(1)(B)(iii), the Secretary shall make grants to 
        tribally controlled postsecondary vocational institutions to 
        provide basic support for the vocational education and training 
        of Indian students.
            (2) Amount of grants.--
                    (A) In general.--If the sum appropriated for any 
                fiscal year for grants under this section is not 
                sufficient to pay in full the total amount that 
                approved applicants are eligible to receive under this 
                section for such fiscal year, the Secretary shall first 
                allocate to each such applicant that received funds 
                under this part for the preceding fiscal year an amount 
                equal to 100 percent of the product of the per capita 
                payment for the preceding fiscal year and such 
                applicant's Indian student count for the current 
                program year, plus an amount equal to the actual cost 
                of any increase to the per capita figure resulting from 
                inflationary increases to necessary costs beyond the 
                institution's control.
                    (B) Per capita determination.--For the purposes of 
                paragraph (1), the per capita payment for any fiscal 
                year shall be determined by dividing the amount 
                available for grants to tribally controlled 
                postsecondary vocational institutions under this part 
                for such program year by the sum of the Indian student 
                counts of such institutions for such program year. The 
                Secretary shall, on the basis of the most accurate data 
                available from the institutions, compute the Indian 
                student count for any fiscal year for which such count 
                was not used for the purpose of making allocations 
                under this section.
    (c) Eligible Grant Recipients.--To be eligible for assistance under 
this section a tribally controlled postsecondary vocational institution 
shall--
            (1) be governed by a board of directors or trustees, a 
        majority of whom are Indians;
            (2) demonstrate adherence to stated goals, a philosophy, or 
        a plan of operation which 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;
            (3) have been in operation for at least 3 years;
            (4) hold accreditation with or be a candidate for 
        accreditation by a nationally recognized accrediting authority 
        for postsecondary vocational education; and
            (5) enroll the full-time equivalency of not less than 100 
        students, of whom a majority are Indians.
    (d) Grant Requirements.--
            (1) Applications.--Any tribally controlled postsecondary 
        vocational institution that desires to receive a grant under 
        this section shall submit an application to the Secretary. Such 
        application shall include a description of recordkeeping 
        procedures for the expenditure of funds received under this 
        section that will allow the Secretary to audit and monitor 
        programs.
            (2) Number.--The Secretary shall award not less than 2 
        grants under this section for each fiscal year.
            (3) Consultation.--In awarding grants under this section, 
        the Secretary shall, to the extent practicable, consult with 
        the boards of trustees of, and the tribal governments 
        chartering, the institutions desiring the grants.
            (4) Limitation.--Amounts made available through grants 
        under this section shall not be used in connection with 
        religious worship or sectarian instruction.
    (e) Uses of Grants.--
            (1) In general.--The Secretary shall, subject to the 
        availability of appropriations, provide for each program year 
        to each tribally controlled postsecondary vocational 
        institution having an application approved by the Secretary, an 
        amount necessary to pay expenses associated with--
                    (A) the maintenance and operation of the program, 
                including development costs, costs of basic and special 
                instruction (including special programs for individuals 
                with disabilities and academic instruction), materials, 
                student costs, administrative expenses, boarding costs, 
                transportation, student services, daycare and family 
                support programs for students and their families 
                (including contributions to the costs of education for 
                dependents), and student stipends;
                    (B) capital expenditures, including operations and 
                maintenance, and minor improvements and repair, and 
                physical plant maintenance costs, for the conduct of 
                programs funded under this section; and
                    (C) costs associated with repair, upkeep, 
                replacement, and upgrading of the instructional 
                equipment.
            (2) Accounting.--Each institution receiving a grant under 
        this section shall provide annually to the Secretary an 
        accurate and detailed accounting of the institution's operating 
        and maintenance expenses and such other information concerning 
        costs as the Secretary may reasonably require.
    (f) Effect on Other Programs.--
            (1) In general.--Except as specifically provided in this 
        Act, eligibility for assistance under this section shall not 
        preclude any tribally controlled postsecondary vocational 
        institution from receiving Federal financial assistance under 
        any program authorized under the Higher Education Act of 1965 
        (20 U.S.C. 1001 et seq.) or any other applicable program for 
        the benefit of institutions of higher education or vocational 
        education.
            (2) Prohibition on alteration of grant amount.--The amount 
        of any grant for which tribally controlled postsecondary 
        vocational institutions are eligible under this section shall 
        not be altered because of funds allocated to any such 
        institution from funds appropriated under the Act of November 
        2, 1921 (commonly known as the ``Snyder Act'') (42 Stat. 208, 
        chapter 115; 25 U.S.C. 13).
            (3) Prohibition on contract denial.--No tribally controlled 
        postsecondary vocational institution for which an Indian tribe 
        has designated a portion of the funds appropriated for the 
        tribe from funds appropriated under such Act of November 2, 
        1921, may be denied a contract for such portion under the 
        Indian Self-Determination and Education Assistance Act (25 
        U.S.C. 450b et seq.) (except as provided in that Act), or 
        denied appropriate contract support to administer such portion 
        of the appropriated funds.
    (g) Needs Estimate and Report on Facilities and Facilities 
Improvement.--
            (1) Needs estimate.--The Secretary shall, based on the most 
        accurate data available from the institutions and Indian tribes 
        whose Indian students are served under this section, and in 
        consideration of employment needs, economic development needs, 
        population training needs, and facilities needs, prepare an 
        actual budget needs estimate for each institution eligible 
        under this section for each subsequent program year, and submit 
        such budget needs estimate to Congress in such a timely manner 
        as will enable the appropriate committees of Congress to 
        consider such needs data for purposes of the uninterrupted flow 
        of adequate appropriations to such institutions. Such data 
        shall take into account the goals and requirements of the 
        Personal Responsibility and Work Opportunity Reconciliation Act 
        of 1996 (Public Law 104-193; 110 Stat. 2105).
            (2) Study of training and housing needs.--
                    (A) In general.--The Secretary shall conduct a 
                detailed study of the training, housing, and immediate 
                facilities needs of each institution eligible under 
                this section. The study shall include an examination 
                of--
                            (i) training equipment needs;
                            (ii) housing needs of families whose heads 
                        of households are students and whose dependents 
                        have no alternate source of support while such 
                        heads of households are students; and
                            (iii) immediate facilities needs.
                    (B) Report.--The Secretary shall report to Congress 
                not later than July 1, 1999, on the results of the 
                study required by subparagraph (A).
                    (C) Contents.--The report required by subparagraph 
                (B) shall include the number, type, and cost of meeting 
                the needs described in subparagraph (A), and rank each 
                institution by relative need.
                    (D) Priority.--In conducting the study required by 
                subparagraph (A), the Secretary shall give priority to 
                institutions that are receiving assistance under this 
                section.
            (3) Long-term study of facilities.--
                    (A) In general.--The Secretary shall provide for 
                the conduct of a long-term study of the facilities of 
                each institution eligible for assistance under this 
                section.
                    (B) Contents.--The study required by subparagraph 
                (A) shall include a 5-year projection of training 
                facilities, equipment, and housing needs and shall 
                consider such factors as projected service population, 
                employment, and economic development forecasting, based 
                on the most current and accurate data available from 
                the institutions and Indian tribes affected.
                    (C) Submission.--The Secretary shall submit to 
                Congress a detailed report on the results of such study 
                not later than the end of the 18-month period beginning 
                on the date of enactment of this Act.
    (h) Definitions.--For the purposes of this section:
            (1) Indian; indian tribe.--The terms ``Indian'' and 
        ``Indian tribe'' have the meaning given such terms in section 2 
        of the Tribally Controlled Community College Assistance Act of 
        1978 (25 U.S.C. 1801).
            (2) 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 tribes; and
                    (B) offers technical degrees or certificate 
                granting programs.
            (3) Indian student count.--The term ``Indian student 
        count'' means a number equal to the total number of Indian 
        students enrolled in each tribally controlled postsecondary 
        vocational institution, determined as follows:
                    (A) Registrations.--The registrations of Indian 
                students as in effect on October 1 of each year.
                    (B) Summer term.--Credits or clock hours toward a 
                certificate earned in classes offered during a summer 
                term shall be counted toward the computation of the 
                Indian student count in the succeeding fall term.
                    (C) Admission criteria.--Credits or clock hours 
                toward a certificate earned in classes during a summer 
                term shall be counted toward the computation of the 
                Indian student count if the institution at which the 
                student is in attendance has established criteria for 
                the admission of such student on the basis of the 
                student's ability to benefit from the education or 
                training offered. The institution shall be presumed to 
                have established such criteria if the admission 
                procedures for such studies include counseling or 
                testing that measures the student's aptitude to 
                successfully complete the course in which the student 
                has enrolled. No credit earned by such student for 
                purposes of obtaining a secondary school diploma or its 
                recognized equivalent shall be counted toward the 
                computation of the Indian student count.
                    (D) Determination of hours.--Indian students 
                earning credits in any continuing education program of 
                a tribally controlled postsecondary vocational 
                institution shall be included in determining the sum of 
                all credit or clock hours.
                    (E) Continuing education.--Credits or clock hours 
                earned in a continuing education program shall be 
                converted to the basis that is in accordance with the 
                institution's system for providing credit for 
                participation in such programs.

SEC. 116. INCENTIVE GRANTS.

    (a) In General.--The Secretary may make grants to States that 
exceed the expected levels of performance for performance measures 
established under this Act.
    (b) Use of Funds.--A State that receives an incentive grant under 
this section shall use the funds made available through the grant to 
carry out innovative vocational education, adult education and 
literacy, or workforce investment programs as determined by the State.

                      CHAPTER 2--STATE PROVISIONS

SEC. 121. STATE ADMINISTRATION.

    Each eligible agency shall be responsible for the State 
administration of activities under this subtitle, including--
            (1) the development, submission, and implementation of the 
        State plan;
            (2) the efficient and effective performance of the eligible 
        agency's duties under this subtitle; and
            (3) consultation with other appropriate agencies, groups, 
        and individuals that are involved in the development and 
        implementation of activities assisted under this subtitle, such 
        as employers, parents, students, teachers, labor organizations, 
        State and local elected officials, and local program 
        administrators.

SEC. 122. STATE USE OF FUNDS.

    (a) Reservations.--From funds allotted to each State under section 
111(a) for each fiscal year, the eligible agency shall reserve--
            (1) not more than 14 percent of the funds to carry out 
        section 123;
            (2) not more than 10 percent of the funds, or $300,000, 
        whichever is greater, of which--
                    (A) $60,000 shall be available to provide technical 
                assistance and advice to local educational agencies, 
                postsecondary educational institutions, and other 
                interested parties in the State for gender equity 
                activities; and
                    (B) the remainder may be used to--
                            (i) develop the State plan;
                            (ii) review local applications;
                            (iii) monitor and evaluate program 
                        effectiveness;
                            (iv) provide technical assistance; and
                            (v) assure compliance with all applicable 
                        Federal laws, including required services and 
                        activities for individuals who are members of 
                        populations described in section 124(c)(16); 
                        and
            (3) 1 percent of the funds, or the amount the State 
        expended under the Carl D. Perkins Vocational and Applied 
        Technology Education Act (20 U.S.C. 2301 et seq.) for 
        vocational education programs for criminal offenders for the 
        fiscal year 1997, whichever is greater, to carry out programs 
        for criminal offenders.
    (b) Remainder.--From funds allotted to each State under section 
111(a) for each fiscal year and not reserved under subsection (a), the 
eligible agency shall determine the portion of the funds that will be 
available to carry out sections 131 and 132.
    (c) Matching Requirement.--Each eligible agency receiving funds 
under this subtitle shall match, from non-Federal sources and on a 
dollar-for-dollar basis, the funds received under subsection (a)(2).

SEC. 123. STATE LEADERSHIP ACTIVITIES.

    (a) Mandatory.--Each eligible agency shall use the funds reserved 
under section 122(a)(1) to conduct programs, services, and activities 
that further the development, implementation, and improvement of 
vocational education within the State and that are integrated, to the 
maximum extent possible, with challenging State academic standards, 
including--
            (1) providing comprehensive professional development 
        (including initial teacher preparation) for vocational, 
        academic, guidance, and administrative personnel, that--
                    (A) will help the teachers and personnel to assist 
                students in meeting the expected levels of performance 
                established under section 112;
                    (B) reflects the eligible agency's assessment of 
                the eligible agency's needs for professional 
                development; and
                    (C) is integrated with the professional development 
                activities that the State carries out under title II of 
                the Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 6001 et seq.);
            (2) developing and disseminating curricula that are 
        aligned, as appropriate, with challenging State academic 
        standards, and vocational and technological skills;
            (3) monitoring and evaluating the quality of, and 
        improvement in, activities conducted with assistance under this 
        subtitle;
            (4) providing gender equity programs in secondary and 
        postsecondary vocational education;
            (5) supporting tech-prep education activities;
            (6) improving and expanding the use of technology in 
        instruction;
            (7) supporting partnerships among local educational 
        agencies, institutions of higher education, adult education 
        providers, and, as appropriate, other entities, such as 
        employers, labor organizations, parents, and local 
        partnerships, to enable students to achieve State academic 
        standards, and vocational and technological skills; and
            (8) serving individuals in State institutions, such as 
        State correctional institutions and institutions that serve 
        individuals with disabilities.
    (b) Permissive.--Each eligible agency may use the funds reserved 
under section 122(a)(1) for--
            (1) improving guidance and counseling programs that assist 
        students in making informed education and vocational decisions;
            (2) supporting vocational student organizations, especially 
        with respect to efforts to increase the participation of 
        students who are members of populations described in section 
        124(c)(16);
            (3) providing vocational education programs for adults and 
        school dropouts to complete their secondary school education; 
        and
            (4) providing assistance to students who have participated 
        in services and activities under this subtitle in finding an 
        appropriate job and continuing their education.

SEC. 124. STATE PLAN.

    (a) State Plan.--
            (1) In general.--Each eligible entity desiring assistance 
        under this subtitle for any fiscal year shall prepare and 
        submit to the Secretary a State plan for a 3-year period, 
        together with such annual revisions as the eligible agency 
        determines to be necessary.
            (2) Coordination.--The period required by paragraph (1) 
        shall be coordinated with the period covered by the State plan 
        described in section 304.
            (3) Hearing process.--The eligible agency shall conduct 
        public hearings in the State, after appropriate and sufficient 
        notice, for the purpose of affording all segments of the public 
        and interested organizations and groups (including employers, 
        labor organizations, and parents), an opportunity to present 
        their views and make recommendations regarding the State plan. 
        A summary of such recommendations and the eligible agency's 
        response to such recommendations shall be included with the 
        State plan.
    (b) Plan Development.--The eligible agency shall develop the State 
plan with representatives of secondary and postsecondary vocational 
education, parents, representatives of populations described in section 
124(c)(16), and businesses, in the State and shall also consult the 
Governor of the State.
    (c) Plan Contents.--The State plan shall include information that--
            (1) describes the vocational education activities to be 
        assisted that are designed to meet and reach the State 
        performance measures;
            (2) describes the integration of academic and technological 
        education with vocational education;
            (3) describes how the eligible agency will disaggregate 
        data relating to students participating in vocational education 
        in order to adequately measure the progress of the students;
            (4) describes how the eligible agency will adequately 
        address the needs of students in alternative education 
        programs;
            (5) describes how the eligible agency will provide local 
        educational agencies, area vocational education schools, and 
        eligible institutions in the State with technical assistance;
            (6) describes how the eligible agency will encourage the 
        participation of the parents of secondary school students who 
        are involved in vocational education activities;
            (7) identifies how the eligible agency will obtain the 
        active participation of business, labor organizations, and 
        parents in the development and improvement of vocational 
        education activities carried out by the eligible agency;
            (8) describes how vocational education relates to State and 
        regional employment opportunities;
            (9) describes the methods proposed for the joint planning 
        and coordination of programs carried out under this subtitle 
        with other Federal education programs;
            (10) describes how funds will be used to promote gender 
        equity in secondary and postsecondary vocational education;
            (11) describes how funds will be used to improve and expand 
        the use of technology in instruction;
            (12) describes how funds will be used to serve individuals 
        in State correctional institutions;
            (13) describes how funds will be used effectively to link 
        secondary and postsecondary education;
            (14) describes how funds will be allocated and used at the 
        secondary and postsecondary level, any consortia that will be 
        formed among secondary schools and eligible institutions, and 
        how funds will be allocated among the members of the consortia;
            (15) describes how the eligible agency will ensure that the 
        data reported to the eligible agency from local educational 
        agencies and eligible institutions under this subtitle and the 
        data the eligible agency reports to the Secretary are complete, 
        accurate, and reliable;
            (16) describes the eligible agency's program strategies for 
        populations that include, at a minimum--
                    (A) low-income individuals, including foster 
                children;
                    (B) individuals with disabilities;
                    (C) single parents and displaced homemakers; and
                    (D) individuals with other barriers to educational 
                achievement, including individuals with limited English 
                proficiency;
            (17) describes how individuals who are members of the 
        special populations described in subsection (c)(16)--
                    (A) will be provided with equal access to 
                activities assisted under this title; and
                    (B) will not be discriminated against on the basis 
                of their status as members of the special populations; 
                and
            (18) contains the description and information specified in 
        paragraphs (9) and (17) of section 304(b) concerning the 
        provision of services only for postsecondary students and 
        school dropouts.
    (d) Plan Approval.--
            (1) In general.--The Secretary shall approve a State plan, 
        or a revision to an approved State plan, only if the Secretary 
        determines that--
                    (A) the State plan, or revision, respectively, 
                meets the requirements of this section; and
                    (B) the State's performance measures and expected 
                levels of performance under section 112 are 
                sufficiently rigorous to meet the purpose of this 
                title.
            (2) Disapproval.--The Secretary shall not finally 
        disapprove a State plan, except after giving the eligible 
        agency notice and an opportunity for a hearing.
            (3) Peer review.--The Secretary shall establish a peer 
        review process to make recommendations regarding approval of 
        State plans.
            (4) Timeframe.--A State plan shall be deemed approved if 
        the Secretary has not responded to the eligible agency 
        regarding the plan within 90 days of the date the Secretary 
        receives the plan.
    (e) Assurances.--A State plan shall contain assurances that the 
State will comply with the requirements of this title and the 
provisions of the State plan, and provide for such fiscal control and 
fund accounting procedures that may be necessary to ensure the proper 
disbursement of, and accounting for, funds paid to the State under this 
title.
    (f) Eligible Agency Report.--
            (1) In general.--The eligible agency shall annually report 
        to the Secretary regarding--
                    (A) the quality and effectiveness of the programs, 
                services, and activities, assisted under this subtitle, 
                based on the performance measures and expected levels 
                of performance described in section 112; and
                    (B) the progress each population of individuals 
                described in section 124(c)(16) is making toward 
                achieving the expected levels of performance.
            (2) Contents.--The eligible agency report also--
                    (A) shall include such information, in such form, 
                as the Secretary may reasonably require, in order to 
                ensure the collection of uniform data; and
                    (B) shall be made available to the public.

                      CHAPTER 3--LOCAL PROVISIONS

SEC. 131. DISTRIBUTION FOR SECONDARY SCHOOL VOCATIONAL EDUCATION.

    (a) Allocation.--Except as otherwise provided in this section, each 
eligible agency shall distribute the portion of the funds made 
available for secondary school vocational education activities under 
section 122(b) for any fiscal year 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(d) of the Individuals With 
        Disabilities Education Act (20 U.S.C. 1414(d)) 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 $25,000. 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 eligible agency may waive the application 
        of paragraph (1) for a local educational agency that is located 
        in a rural, sparsely populated area.
            (3) Reallocation.--Any amounts that are not allocated by 
        reason of paragraph (1) or (2) shall be reallocated 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 eligible agency receiving assistance under this 
        subtitle 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 eligible agency shall distribute the 
        portion of funds made available for any fiscal year by such 
        entity for secondary school vocational education activities 
        under section 122(b) 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 eligible 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) assistance under a State 
                                program funded under part A of title IV 
                                of the Social Security Act;
                                    (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.); or
                            (ii) another index of economic status, 
                        including an estimate of such index, if the 
                        eligible agency demonstrates to the 
                        satisfaction of the Secretary that such index 
                        is a more representative means of determining 
                        such number.
                    (B) Data.--If an eligible agency elects to use more 
                than 1 factor described in subparagraph (A) for 
                purposes of making the determination described in such 
                subparagraph, the eligible agency shall ensure that the 
                data used is not duplicative.
            (4) Appeals procedure.--The eligible 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 eligible 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. 132. DISTRIBUTION FOR POSTSECONDARY VOCATIONAL EDUCATION.

    (a) Distribution.--
            (1) In general.--Except as otherwise provided in this 
        section, each eligible agency shall distribute the portion of 
        funds made available for postsecondary vocational education 
        under section 122(b) for any fiscal year to eligible 
        institutions within the State in accordance with paragraph (2).
            (2) Allocation.--Each eligible institution in the State 
        having an application approved under section 134 for a fiscal 
        year shall be allocated an amount that bears the same 
        relationship to the amount of funds made available for 
        postsecondary vocational education under section 122(b) for the 
        fiscal year as the number of Pell Grant recipients and 
        recipients of assistance from the Bureau of Indian Affairs 
        enrolled for the preceding fiscal year by such eligible 
        institution in vocational education programs that do not exceed 
        2 years in duration bears to the number of such recipients 
        enrolled in such programs within the State for such fiscal 
        year.
            (3) Special rule for consortia.--In order for a consortium 
        described in section 2(12)(E) to receive assistance under this 
        section, 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.
            (4) Minimum allocation.--
                    (A) In general.--Except as provided in subparagraph 
                (B), no eligible institution shall receive an 
                allocation under paragraph (2) unless the amount 
                allocated to the eligible institution under paragraph 
                (2) is not less than $65,000.
                    (B) Waiver.--The eligible agency may waive the 
                application of subparagraph (A) in any case in which 
                the eligible institution is located in a rural, 
                sparsely populated area.
                    (C) Reallocation.--Any amounts that are not 
                allocated by reason of subparagraph (A) or (B) shall be 
                reallocated to eligible institutions that meet the 
                requirements of subparagraph (A) or (B) in accordance 
                with the provisions of this section.
            (5) Definition of pell grant recipient.--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).
    (b) Alternative Allocation.--An eligible agency may allocate funds 
made available for postsecondary education under section 122(b) for a 
fiscal year using an alternative formula if the eligible agency 
demonstrates to the Secretary's satisfaction that--
            (1) the alternative formula better meets the purpose of 
        this title; and
            (2)(A) the formula described in subsection (a) does not 
        result in an allocation of funds to the eligible institutions 
        that serve the highest numbers or percentages of low-income 
        students; and
            (B) the alternative formula will result in such a 
        distribution.

SEC. 133. LOCAL ACTIVITIES.

    (a) Mandatory.--Funds made available to a local educational agency 
or an eligible institution under this subtitle shall be used--
            (1) to initiate, improve, expand, and modernize quality 
        vocational education programs;
            (2) to improve or expand the use of technology in 
        vocational instruction, including professional development in 
        the use of technology, which instruction may include distance 
        learning;
            (3) to provide services and activities that are of 
        sufficient size, scope, and quality to be effective;
            (4) to integrate academic education with vocational 
        education for students participating in vocational education;
            (5) to link secondary education (as determined under State 
        law) and postsecondary education, including implementing tech-
        prep programs;
            (6) to provide professional development activities to 
        teachers, counselors, and administrators, including--
                    (A) inservice and preservice training in state-of-
                the-art vocational education programs;
                    (B) internship programs that provide business 
                experience to teachers; and
                    (C) programs designed to train teachers 
                specifically in the use and application of technology;
            (7) to develop and implement programs that provide access 
        to, and the supportive services needed to participate in, 
        quality vocational education programs for students, including 
        students who are members of the populations described in 
        section 124(c)(16);
            (8) to develop and implement performance management systems 
        and evaluations; and
            (9) to promote gender equity in secondary and postsecondary 
        vocational education.
    (b) Permissive.--Funds made available to a local educational agency 
or an eligible institution under this subtitle may be used--
            (1) to carry out student internships;
            (2) to provide guidance and counseling for students 
        participating in vocational education programs;
            (3) to provide vocational education programs for adults and 
        school dropouts to complete their secondary school education;
            (4) to acquire and adapt equipment, including instructional 
        aids;
            (5) to support vocational student organizations;
            (6) to provide assistance to students who have participated 
        in services and activities under this subtitle in finding an 
        appropriate job and continuing their education; and
            (7) to support other vocational education activities that 
        are consistent with the purpose of this title.

SEC. 134. LOCAL APPLICATION.

    (a) In General.--Each local educational agency or eligible 
institution desiring assistance under this subtitle shall submit an 
application to the eligible agency at such time, in such manner, and 
accompanied by such information as the eligible agency (in consultation 
with such other educational entities as the eligible agency determines 
to be appropriate) may require.
    (b) Contents.--Each application shall, at a minimum--
            (1) describe how the vocational education activities will 
        be carried out pertaining to meeting the expected levels of 
        performance;
            (2) describe the process that will be used to independently 
        evaluate and continuously improve the performance of the local 
        educational agency or eligible institution, as appropriate;
            (3) describe how the local educational agency or eligible 
        institution, as appropriate, will plan and consult with 
        students, parents, representatives of populations described in 
        section 124(c)(16), businesses, labor organizations, and other 
        interested individuals, in carrying out activities under this 
        subtitle;
            (4) describe how the local educational agency or eligible 
        institution, as appropriate, will review vocational education 
        programs, and identify and adopt strategies to overcome 
        barriers that result in lowering rates of access to the 
        programs, for populations described in section 124(c)(16); and
            (5) describe how individuals who are members of the special 
        populations described in section 124(c)(16) will not be 
        discriminated against on the basis of their status as members 
        of the special populations.

SEC. 135. CONSORTIA.

    A local educational agency and an eligible institution may form a 
consortium to carry out the provisions of this chapter if the sum of 
the amount the consortium receives for a fiscal year under sections 131 
and 132 equals or exceeds $65,000.

                    Subtitle B--Tech-Prep Education

SEC. 151. SHORT TITLE.

    This subtitle may be cited as the ``Tech-Prep Education Act''.

SEC. 152. PURPOSES.

    The purposes of this subtitle are--
            (1) to provide implementation grants to consortia of local 
        educational agencies, postsecondary educational institutions, 
        and employers or labor organizations, for the development and 
        operation of programs designed to provide a tech-prep education 
        program leading to a 2-year associate degree or a 2-year 
        certificate;
            (2) to provide, in a systematic manner, strong, 
        comprehensive links among secondary schools, postsecondary 
        educational institutions, and local or regional employers, or 
        labor organizations; and
            (3) to support the use of contextual, authentic, and 
        applied teaching and curriculum based on each State's academic, 
        occupational, and employability standards.

SEC. 153. DEFINITIONS.

    (a) In this subtitle:
            (1) Articulation agreement.--The term ``articulation 
        agreement'' means a written commitment to a program designed to 
        provide students with a non duplicative sequence of progressive 
        achievement leading to degrees or certificates in a tech-prep 
        education program.
            (2) Community college.--The term ``community college''--
                    (A) has the meaning provided in section 1201(a) of 
                the Higher Education Act of 1965 (20 U.S.C. 1141) for 
                an institution which provides not less than a 2-year 
                program which is acceptable for full credit toward a 
                bachelor's degree; and
                    (B) includes tribally controlled community 
                colleges.
            (3) Tech-prep program.--The term ``tech-prep program'' 
        means a program of study that--
                    (A) combines at a minimum 2 years of secondary 
                education (as determined under State law) with a 
                minimum of 2 years of postsecondary education in a 
                nonduplicative, sequential course of study;
                    (B) integrates academic and vocational instruction, 
                and utilizes work-based and worksite learning where 
                appropriate and available;
                    (C) provides technical preparation in a career 
                field such as engineering technology, applied science, 
                a mechanical, industrial, or practical art or trade, 
                agriculture, health occupations, business, or applied 
                economics;
                    (D) builds student competence in mathematics, 
                science, reading, writing, communications, economics, 
                and workplace skills through applied, contextual 
                academics, and integrated instruction, in a coherent 
                sequence of courses;
                    (E) leads to an associate or a baccalaureate degree 
                or a certificate in a specific career field; and
                    (F) leads to placement in appropriate employment or 
                further education.

SEC. 154. PROGRAM AUTHORIZED.

    (a) Discretionary Amounts.--
            (1) In general.--For any fiscal year for which the amount 
        appropriated under section 157 to carry out this subtitle is 
        equal to or less than $50,000,000, the Secretary shall award 
        grants for tech-prep education programs to consortia between or 
        among--
                    (A) a local educational agency, an intermediate 
                educational agency or area vocational education school 
                serving secondary school students, or a secondary 
                school funded by the Bureau of Indian Affairs; and
                    (B)(i) a nonprofit institution of higher education 
                that offers--
                            (I) a 2-year associate degree program, or a 
                        2-year certificate program, and is qualified as 
                        institutions of higher education pursuant to 
                        section 481(a) of the Higher Education Act of 
                        1965 (20 U.S.C. 1088(a)), including an 
                        institution receiving assistance under the 
                        Tribally Controlled Community College 
                        Assistance Act of 1978 (25 U.S.C. 1801 et seq.) 
                        and a tribally controlled postsecondary 
                        vocational institution; or
                            (II) a 2-year apprenticeship program that 
                        follows secondary instruction,
                if such nonprofit institution of higher education is 
                not prohibited from receiving assistance under part B 
                of the Higher Education Act of 1965 (20 U.S.C. 1071 et 
                seq.) pursuant to the provisions of section 435(a)(3) 
                of such Act (20 U.S.C. 1083(a)); or
                    (ii) a proprietary institution of higher education 
                that offers a 2-year associate degree program and is 
                qualified as an institution of higher education 
                pursuant to section 481(a) of the Higher Education Act 
                of 1965 (20 U.S.C. 1088(a)), if such proprietary 
                institution of higher education is not subject to a 
                default management plan required by the Secretary.
            (2) Special rule.--In addition, a consortium described in 
        paragraph (1) may include 1 or more--
                    (A) institutions of higher education that award a 
                baccalaureate degree; and
                    (B) employer or labor organizations.
    (b) State Grants.--
            (1) In general.--For any fiscal year for which the amount 
        made available under section 157 to carry out this subtitle 
        exceeds $50,000,000, the Secretary shall allot such amount 
        among the States in the same manner as funds are allotted to 
        States under paragraphs (2), (3), and (4) of section 111(a).
            (2) Payments to eligible agencies.--The Secretary shall 
        make a payment in the amount of a State's allotment under this 
        paragraph to the eligible agency that serves the State and has 
        an application approved under paragraph (4).
            (3) Award basis.--From amounts made available to each 
        eligible agency under this subsection, the eligible agency 
        shall award grants, on a competitive basis or on the basis of a 
        formula determined by the eligible agency, for tech-prep 
        education programs to consortia described in subsection (a).
            (4) State application.--Each eligible agency desiring 
        assistance under this subtitle shall submit an application to 
        the Secretary at such time, in such manner, and accompanied by 
        such information as the Secretary may require.

SEC. 155. TECH-PREP EDUCATION PROGRAMS.

    (a) General Authority.--Each consortium shall use amounts provided 
through the grant to develop and operate a tech-prep education program.
    (b) Contents of Program.--Any such tech-prep program shall--
            (1) be carried out under an articulation agreement between 
        the participants in the consortium;
            (2) consist of at least 2 years of secondary school 
        preceding graduation and 2 years or more of higher education, 
        or an apprenticeship program of at least 2 years following 
        secondary instruction, with a common core of required 
        proficiency in mathematics, science, reading, writing, 
        communications, and technologies designed to lead to an 
        associate's degree or a certificate in a specific career field;
            (3) include the development of tech-prep education program 
        curricula for both secondary and postsecondary levels that--
                    (A) meets academic standards developed by the 
                State;
                    (B) links secondary schools and 2-year 
                postsecondary institutions, and where possible and 
                practicable, 4-year institutions of higher education 
                through nonduplicative sequences of courses in career 
                fields;
                    (C) uses, where appropriate and available, work-
                based or worksite learning in conjunction with business 
                and industry; and
                    (D) uses educational technology and distance 
                learning, as appropriate, to involve all the consortium 
                partners more fully in the development and operation of 
                programs.
            (4) include a professional development program for 
        academic, vocational, and technical teachers that--
                    (A) is designed to train teachers to effectively 
                implement tech-prep education curricula;
                    (B) provides for joint training for teachers from 
                all participants in the consortium;
                    (C) is designed to ensure that teachers stay 
                current with the needs, expectations, and methods of 
                business and industry;
                    (D) focuses on training postsecondary education 
                faculty in the use of contextual and applied curricula 
                and instruction; and
                    (E) provides training in the use and application of 
                technology;
            (5) include training programs for counselors designed to 
        enable counselors to more effectively--
                    (A) make tech-prep education opportunities known to 
                students interested in such activities;
                    (B) ensure that such students successfully complete 
                such programs;
                    (C) ensure that such students are placed in 
                appropriate employment; and
                    (D) stay current with the needs, expectations, and 
                methods of business and industry;
            (6) provide equal access to the full range of technical 
        preparation programs to individuals who are members of 
        populations described in section 124(c)(16), including the 
        development of tech-prep education program services appropriate 
        to the needs of such individuals; and
            (7) provide for preparatory services that assist all 
        participants in such programs.
    (c) Additional Authorized Activities.--Each such tech-prep program 
may--
            (1) provide for the acquisition of tech-prep education 
        program equipment;
            (2) as part of the program's planning activities, acquire 
        technical assistance from State or local entities that have 
        successfully designed, established and operated tech-prep 
        programs;
            (3) acquire technical assistance from State or local 
        entities that have designed, established, and operated tech-
        prep programs that have effectively used educational technology 
        and distance learning in the delivery of curricula and services 
        and in the articulation process; and
            (4) establish articulation agreements with institutions of 
        higher education, labor organizations, or businesses located 
        outside of the State served by the consortium, especially with 
        regard to using distance learning and educational technology to 
        provide for the delivery of services and programs.

SEC. 156. APPLICATIONS.

    (a) In General.--Each consortium that desires to receive a grant 
under this subtitle shall submit an application to the Secretary or the 
eligible agency, as appropriate, at such time and in such manner as the 
Secretary or the eligible agency, as appropriate, shall prescribe.
    (b) Three-Year Plan.--Each application submitted under this section 
shall contain a 3-year plan for the development and implementation of 
activities under this subtitle.
    (c) Approval.--The Secretary or the eligible agency, as 
appropriate, shall approve applications based on the potential of the 
activities described in the application to create an effective tech-
prep education program described in section 155.
    (d) Special Consideration.--The Secretary or the eligible agency, 
as appropriate, shall give special consideration to applications that--
            (1) provide for effective employment placement activities 
        or the transfer of students to 4-year institutions of higher 
        education;
            (2) are developed in consultation with 4-year institutions 
        of higher education;
            (3) address effectively the needs of populations described 
        in section 124(c)(16);
            (4) provide education and training in areas or skills where 
        there are significant workforce shortages, including the 
        information technology industry; and
            (5) demonstrate how tech-prep programs will help students 
        meet high academic and employability competencies.
    (e) Equitable Distribution of Assistance.--In awarding grants under 
this subtitle, the Secretary shall ensure an equitable distribution of 
assistance among States, and the Secretary or the eligible agency, as 
appropriate, shall ensure an equitable distribution of assistance 
between urban and rural consortium participants.
    (f) Notice.--
            (1) In general.--In the case of grants to be awarded by the 
        Secretary, each consortium that submits an application under 
        this section shall provide notice of such submission and a copy 
        of such application to the State educational agency and the 
        State agency for higher education of the State in which the 
        consortium is located.
            (2) Notification.--The Secretary shall notify the State 
        educational agency and the State agency for higher education of 
        a State each time a consortium located in the State is selected 
        to receive a grant under this subtitle.

SEC. 157. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to carry out this subtitle 
such sums as may be necessary for fiscal year 1999 and each of the 5 
succeeding fiscal years.

SEC. 158. DEMONSTRATION PROGRAM.

    (a) Demonstration Program Authorized.--From funds appropriated 
under subsection (e) for a fiscal year, the Secretary shall award 
grants to consortia described in section 154(a) to enable the consortia 
to carry out tech-prep education programs.
    (b) Program Contents.--Each tech-prep program referred to in 
subsection (a)--
            (1) shall--
                    (A) involve the location of a secondary school on 
                the site of a community college;
                    (B) involve a business as a member of the 
                consortium; and
                    (C) require the voluntary participation of 
                secondary school students in the tech-prep education 
                program; and
            (2) may provide summer internships at a business for 
        students or teachers.
    (c) Application.--Each consortium desiring a grant under this 
section shall submit an application to the Secretary at such time, in 
such manner and accompanied by such information as the Secretary may 
require.
    (d) Applicability.--The provisions of sections 154, 155, 156, and 
157 shall not apply to this section, except that--
            (1) the provisions of section 154(a) shall apply for 
        purposes of describing consortia eligible to receive assistance 
        under this section;
            (2) each tech-prep education program assisted under this 
        section shall meet the requirements of paragraphs (1), (2), 
        (3)(A), (3)(B), (3)(C), (3)(D), (4), (5), (6), and (7) of 
        section 155(b), except that such paragraph (3)(B) shall be 
        applied by striking ``, and where possible and practicable, 4-
        year institutions of higher education through nonduplicative 
        sequences of courses in career fields''; and
            (3) in awarding grants under this section, the Secretary 
        shall give special consideration to consortia submitting 
        applications under subsection (c) that meet the requirements of 
        paragraphs (1), (3), (4), and (5) of section 156(d), except 
        that such paragraph (1) shall be applied by striking ``or the 
        transfer of students to 4-year institutions of higher 
        education''.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $25,000,000 for fiscal year 1999 
and each of the 5 succeeding fiscal years.

                     Subtitle C--General Provisions

SEC. 161. ADMINISTRATIVE PROVISIONS.

    (a) Supplement Not Supplant.--Funds made available under this title 
for vocational education activities shall supplement, and shall not 
supplant, non-Federal funds expended to carry out vocational education 
and tech-prep activities.
    (b) Maintenance of Effort.--
            (1) Determination.--No payments shall be made under this 
        title for any fiscal year to an eligible agency for vocational 
        education or tech-prep activities unless the Secretary 
        determines that the fiscal effort per student or the aggregate 
        expenditures of the State for vocational education for the 
        fiscal year preceding the fiscal year for which the 
        determination is made, equaled or exceeded such effort or 
        expenditures for vocational education for the second fiscal 
        year preceding the fiscal year for which the determination is 
        made.
            (2) Waiver.--The Secretary may waive the requirements of 
        this section, with respect to not more than 5 percent of 
        expenditures by any eligible agency for 1 fiscal 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.
    (c) Representation.--The eligible agency shall provide 
representation to the statewide partnership.

SEC. 162. EVALUATION, IMPROVEMENT, AND ACCOUNTABILITY.

    (a) Local Evaluation.--Each eligible agency shall evaluate annually 
the vocational education and tech-prep activities of each local 
educational agency or eligible institution receiving assistance under 
this title, using the performance measures established under section 
112.
    (b) Improvement Activities.--If, after reviewing the evaluation, an 
eligible agency determines that a local educational agency or eligible 
institution is not making substantial progress in achieving the purpose 
of this title, the local educational agency or eligible institution, in 
consultation with teachers, parents, and other school staff, shall--
            (1) conduct an assessment of the educational and other 
        problems that the local educational agency or eligible 
        institution shall address to overcome local performance 
        problems;
            (2) enter into an improvement plan based on the results of 
        the assessment, which plan shall include instructional and 
        other programmatic innovations of demonstrated effectiveness, 
        and where necessary, strategies for appropriate staffing and 
        staff development; and
            (3) conduct regular evaluations of the progress being made 
        toward program improvement goals.
    (c) Technical Assistance.--If the Secretary determines that an 
eligible agency is not properly implementing the eligible agency's 
responsibilities under section 124, or is not making substantial 
progress in meeting the purpose of this title, based on the performance 
measures and expected levels of performance under section 112 included 
in the eligible agency's State plan, the Secretary shall work with the 
eligible agency to implement improvement activities.
    (d) Withholding of Federal Funds.--If, after a reasonable time, but 
not earlier than 1 year after implementing activities described in 
subsection (c), the Secretary determines that the eligible agency is 
not making sufficient progress, based on the eligible agency's 
performance measures and expected levels of performance, the Secretary, 
after notice and opportunity for a hearing, shall withhold from the 
eligible agency all, or a portion, of the eligible agency's grant funds 
under this subtitle. The Secretary may use funds withheld under the 
preceding sentence to provide, through alternative arrangements, 
services, and activities within the State to meet the purpose of this 
title.

SEC. 163. NATIONAL ACTIVITIES.

    The Secretary may, directly or through grants, contracts, or 
cooperative agreements, carry out research, development, dissemination, 
evaluation, capacity-building, and technical assistance activities that 
carry out the purpose of this title.

SEC. 164. NATIONAL ASSESSMENT OF VOCATIONAL EDUCATION PROGRAMS.

    (a) In General.--The Secretary shall conduct a national assessment 
of vocational education programs assisted under this title, through 
studies and analyses conducted independently through competitive 
awards.
    (b) Independent Advisory Panel.--The Secretary shall appoint an 
independent advisory panel, consisting of vocational education 
administrators, educators, researchers, and representatives of labor 
organizations, business, parents, guidance and counseling 
professionals, and other relevant groups, to advise the 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 shall 
submit to the Committee on Education and the Workforce of the House of 
Representatives, the Committee on Labor and Human Resources of the 
Senate, and the Secretary 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 the vocational education programs 
        assisted under this title 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 purpose of this 
        title;
            (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 number of vocational education students and 
                tech-prep students who meet State academic standards;
                    (B) the extent and success of integration of 
                academic and vocational education for students 
                participating in vocational education programs; and
                    (C) the degree to which vocational education is 
                relevant to subsequent employment or participation in 
                postsecondary education;
            (6) employer involvement in, and satisfaction with, 
        vocational education programs;
            (7) the use and impact of educational technology and 
        distance learning with respect to vocational education and 
        tech-prep programs; and
            (8) the effect of performance measures, and other measures 
        of accountability, on the delivery of vocational education 
        services.
    (d) Consultation.--
            (1) In general.--The Secretary shall consult with the 
        Committee on Education and the Workforce 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 shall submit to the Committee 
        on Education and the Workforce of the House of Representatives, 
        the Committee on Labor and Human Resources of the Senate, and 
        the Secretary--
                    (A) an interim report regarding the assessment on 
                or before July 1, 2001; 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, 
                2002.
            (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 Department of 
        Education before their transmittal to the Committee on 
        Education and the Workforce of the House of Representatives, 
        the Committee on Labor and Human Resources of the Senate, and 
        the Secretary, 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, the Secretary, or the panel 
        determine to be appropriate.

SEC. 165. NATIONAL RESEARCH CENTER.

    (a) General Authority.--
            (1) In general.--The Secretary, through grants, contracts, 
        or cooperative agreements, may establish 1 or more national 
        centers in the areas of--
                    (A) applied research and development; and
                    (B) dissemination and training.
            (2) Consultation.--The Secretary shall consult with the 
        States prior to establishing 1 or more such centers.
            (3) Eligible entities.--Entities eligible to receive funds 
        under this section are institutions of higher education, other 
        public or private nonprofit organizations or agencies, and 
        consortia of such institutions, organizations, or agencies.
    (b) Activities.--
            (1) In general.--The national center or centers shall carry 
        out such activities as the Secretary determines to be 
        appropriate to assist State and local recipients of funds under 
        this title to achieve the purpose of this title, which may 
        include the research and evaluation activities in such areas 
        as--
                    (A) the integration of vocational and academic 
                instruction, secondary and postsecondary instruction;
                    (B) effective inservice and preservice teacher 
                education that assists vocational education systems;
                    (C) education technology and distance learning 
                approaches and strategies that are effective with 
                respect to vocational education;
                    (D) performance measures and expected levels of 
                performance that serve to improve vocational education 
                programs and student achievement;
                    (E) effects of economic changes on the kinds of 
                knowledge and skills required for employment or 
                participation in postsecondary education;
                    (F) longitudinal studies of student achievement; 
                and
                    (G) dissemination and training activities related 
                to the applied research and demonstration activities 
                described in this subsection, which may also include--
                            (i) serving as a repository for information 
                        on vocational and technological skills, State 
                        academic standards, and related materials; and
                            (ii) developing and maintaining national 
                        networks of educators who facilitate the 
                        development of vocational education systems.
            (2) Report.--The center or centers conducting the 
        activities described in paragraph (1) annually shall prepare a 
        report of key research findings of such center or centers and 
        shall submit copies of the report to the Secretary, the 
        Secretary of Labor, and the Secretary of Health and Human 
        Services. The Secretary shall submit that report to the 
        Committee on Education and the Workforce of the House of 
        Representatives, the Committee on Labor and Human Resources of 
        the Senate, the Library of Congress, and each eligible agency.
    (c) Review.--The Secretary shall--
            (1) consult at least annually with the national center or 
        centers and with experts in education to ensure that the 
        activities of the national center or centers meet the needs of 
        vocational education programs; and
            (2) undertake an independent review of each award recipient 
        under this section prior to extending an award to such 
        recipient beyond a 5-year period.

SEC. 166. DATA SYSTEMS.

    (a) In General.--The Secretary shall maintain a data system to 
collect information about, and report on, the condition of vocational 
education and on the effectiveness of State and local programs, 
services, and activities carried out under this title in order to 
provide the Secretary and Congress, as well as Federal, State, local, 
and tribal agencies, with information relevant to improvement in the 
quality and effectiveness of vocational education. The Secretary 
annually shall report to Congress on the Secretary's analysis of 
performance data collected each year pursuant to this title, including 
an analysis of performance data regarding the populations described in 
section 124(c)(16).
    (b) Data System.--In maintaining the data system, the Secretary 
shall ensure that the data system is compatible with other Federal 
information systems.
    (c) Assessments.--As a regular part of its assessments, the 
National Center for Education Statistics shall collect and report 
information on vocational education for a nationally representative 
sample of students. Such assessment may include international 
comparisons.

SEC. 167. PROMOTING SCHOLAR-ATHLETE COMPETITIONS.

    Section 10104 of the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 8004) is amended--
            (1) in subsection (a), by striking ``to be held in 1995''; 
        and
            (2) in subsection (b)--
                    (A) in paragraph (4), by striking ``in the summer 
                of 1995;'' and inserting ``; and'';
                    (B) in paragraph (5), by striking ``in 1996 and 
                thereafter, as well as replicate such program 
                internationally; and'' and inserting ``and 
                internationally.''; and
                    (C) by striking paragraph (6).

SEC. 168. DEFINITION.

    In this title, the term ``gender equity'', used with respect to a 
program, service, or activity, means a program, service, or activity 
that is designed to ensure that men and women (including single parents 
and displaced homemakers) have access to opportunities to participate 
in vocational education that prepares the men and women to enter high-
skill, high-wage careers.

              Subtitle D--Authorization of Appropriations

SEC. 171. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to carry out subtitle (A), 
and sections 163, 164, 165, and 166, such sums as may be necessary for 
fiscal year 1999 and each of the 5 succeeding fiscal years.

                           Subtitle E--Repeal

SEC. 181. REPEAL.

    (a) Repeal.--The Carl D. Perkins Vocational and Applied Technology 
Education Act (20 U.S.C. 2301 et seq.) is repealed.
    (b) References to Carl D. Perkins Vocational and Applied Technology 
Education Act.--
            (1) Immigration and nationality act.--Section 245A(h)(4)(C) 
        of the Immigration and Nationality Act (8 U.S.C. 
        1255a(h)(4)(C)) is amended by striking ``Vocational Education 
        Act of 1963'' and inserting ``Carl D. Perkins Vocational and 
        Applied Technology Education Act of 1998''.
            (2) National defense authorization act.--Section 4461 of 
        the National Defense Authorization Act for Fiscal Year 1993 (10 
        U.S.C. 1143 note) is amended--
                    (A) by striking paragraph (4); and
                    (B) by redesignating paragraphs (5) and (6) as 
                paragraphs (4) and (5), respectively.
            (3) Elementary and secondary education act of 1965.--The 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301 
        et seq.) is amended--
                    (A) in section 1114(b)(2)(C)(v) (20 U.S.C. 
                6314(b)(2)(C)(v)), by striking ``Carl D. Perkins 
                Vocational and Applied Technology Education Act,'' and 
                inserting ``Carl D. Perkins Vocational and Applied 
                Technology Education Act of 1998'';
                    (B) in section 9115(b)(5) (20 U.S.C. 7815(b)(5)), 
                by striking ``Carl D. Perkins Vocational and Applied 
                Technology Education Act'' and inserting ``Carl D. 
                Perkins Vocational and Applied Technology Education Act 
                of 1998'';
                    (C) in section 14302(a)(2) (20 U.S.C. 8852(a)(2))--
                            (i) by striking subparagraph (C); and
                            (ii) by redesignating subparagraphs (D), 
                        (E), and (F) as subparagraphs (C), (D), and 
                        (E), respectively; and
                    (D) in the matter preceding subparagraph (A) of 
                section 14307(a)(1) (20 U.S.C. 8857(a)(1)), by striking 
                ``Carl D. Perkins Vocational and Applied Technology 
                Education Act'' and inserting ``Carl D. Perkins 
                Vocational and Applied Technology Education Act of 
                1998''.
            (4) Equity in educational land-grant status act of 1994.--
        Section 533(c)(4)(A) of the Equity in Educational Land-Grant 
        Status Act of 1994 (7 U.S.C. 301 note) is amended by striking 
        ``(20 U.S.C. 2397h(3)'' and inserting ``, as such section was 
        in effect on the day preceding the date of enactment of the 
        Carl D. Perkins Vocational and Applied Technology Education Act 
        of 1998''.
            (5) Improving america's schools act of 1994.--Section 563 
        of the Improving America's Schools Act of 1994 (20 U.S.C. 6301 
        note) is amended by striking ``the date of enactment of an Act 
        reauthorizing the Carl D. Perkins Vocational and Applied 
        Technology Education Act (20 U.S.C. 2301 et seq.)'' and 
        inserting ``July 1, 1999''.
            (6) Internal revenue code of 1986.--Section 135(c)(3)(B) of 
        the Internal Revenue Code of 1986 (26 U.S.C. 135(c)(3)(B)) is 
        amended--
                    (A) by striking ``subparagraph (C) or (D) of 
                section 521(3) of the Carl D. Perkins Vocational 
                Education Act'' and inserting ``subparagraph (C) or (D) 
                of section 2(3) of the Workforce Investment Partnership 
                Act of 1998''; and
                    (B) by striking ``any State (as defined in section 
                521(27) of such Act)'' and inserting ``any State or 
                outlying area (as the terms `State' and `outlying area' 
                are defined in section 2 of such Act)''.
            (7) Appalachian regional development act of 1965.--Section 
        214(c) of the Appalachian Regional Development Act of 1965 (40 
        U.S.C. App. 214(c)) (as amended by subsection (c)(5)) is 
        further amended by striking ``Carl D. Perkins Vocational 
        Education Act'' and inserting ``Carl D. Perkins Vocational and 
        Applied Technology Education Act of 1998''.
            (8) Vocational education amendments of 1968.--Section 104 
        of the Vocational Education Amendments of 1968 (82 Stat. 1091) 
        is amended by striking ``section 3 of the Carl D. Perkins 
        Vocational Education Act'' and inserting ``the Carl D. Perkins 
        Vocational and Applied Technology Education Act of 1998''.
            (9) Older americans act of 1965.--The Older Americans Act 
        of 1965 (42 U.S.C. 3001 et seq.) is amended--
                    (A) in section 502(b)(1)(N)(i) (42 U.S.C. 
                3056(b)(1)(N)(i)), by striking ``or the Carl D. Perkins 
                Vocational and Applied Technology Education Act (20 
                U.S.C. 2301 et seq.)''; and
                    (B) in section 505(d)(2) (42 U.S.C. 3056c(d)(2))--
                            (i) by striking ``employment and training 
                        programs'' and inserting ``workforce investment 
                        activities''; and
                            (ii) by striking ``the Carl D. Perkins 
                        Vocational and Applied Technology Education Act 
                        (20 U.S.C. 2301 et seq.)'' and inserting ``the 
                        Carl D. Perkins Vocational and Applied 
                        Technology Education Act of 1998''.

                 TITLE II--ADULT EDUCATION AND LITERACY

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Adult Education and Literacy 
Act''.

SEC. 202. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds that--
            (1) the National Adult Literacy Survey and other studies 
        have found that more than one-fifth of American adults 
        demonstrate very low literacy skills that make it difficult for 
        the adults to be economically self-sufficient, much less enter 
        high-skill, high-wage jobs;
            (2) data from the National Adult Literacy Survey show that 
        adults with very low levels of literacy are 10 times as likely 
        to be poor as adults with high levels of literacy; and
            (3) our Nation's well-being is dependent on the knowledge 
        and skills of all of our Nation's citizens.
    (b) Purpose.--It is the purpose of this title to create a 
partnership among the Federal Government, States, and localities to 
help provide for adult education and literacy services so that adults 
who need such services, will, as appropriate, be able to--
            (1) become literate and obtain the knowledge and skills 
        needed to compete in a global economy;
            (2) complete a secondary school education; and
            (3) have the education skills necessary to support the 
        educational development of their children.

           Subtitle A--Adult Education and Literacy Programs

                     CHAPTER 1--FEDERAL PROVISIONS

SEC. 211. RESERVATION; GRANTS TO STATES; ALLOTMENTS.

    (a) Reservation of Funds for National Leadership Activities.--From 
the amount appropriated for any fiscal year under section 246, the 
Secretary shall reserve--
            (1) 1.5 percent to carry out section 213;
            (2) 2 percent to carry out section 243; and
            (3) 1.5 percent to carry out section 245.
    (b) Grants to States.--From the sum appropriated under section 246 
and not reserved under subsection (a) for a fiscal year, the Secretary 
shall award a grant to each eligible agency having a State plan 
approved under section 224 in an amount equal to the sum of the initial 
allotment under subsection (c)(1) and the additional allotment under 
subsection (c)(2) for the eligible agency for the fiscal year to enable 
the eligible agency to carry out the activities assisted under this 
subtitle.
    (c) Allotments.--
            (1) Initial allotments.--From the sum appropriated under 
        section 246 and not reserved under subsection (a) for a fiscal 
        year, the Secretary first shall allot to each eligible agency 
        having a State plan approved under section 224 the following 
        amounts:
                    (A) $100,000 in the case of an eligible agency 
                serving 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.
                    (B) $250,000, in the case of any other eligible 
                agency.
            (2) Additional allotments.--From the sum appropriated under 
        section 246, not reserved under subsection (a), and not 
        allotted under paragraph (1), for any fiscal year, the 
        Secretary shall allot to each eligible agency an amount that 
        bears the same relationship to such sum as the number of 
        qualifying adults in the State or outlying area served by the 
        eligible agency bears to the number of such adults in all 
        States and outlying areas.
    (d) Qualifying Adult.--For the purposes of this subsection, the 
term ``qualifying adult'' means an adult who--
            (1) is at least 16 years of age;
            (2) is beyond the age of compulsory school attendance under 
        the law of the State or outlying area;
            (3) does not possess a secondary school diploma or its 
        recognized equivalent; and
            (4) is not enrolled in secondary school.
    (e) Special Rule.--
            (1) In general.--From amounts made available under 
        subsection (c) for the Republic of the Marshall Islands, the 
        Federated States of Micronesia, and the Republic of Palau, the 
        Secretary shall award grants to Guam, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, the Republic of 
        the Marshall Islands, the Federated States of Micronesia, or 
        the Republic of Palau to carry out activities described in this 
        part in accordance with the provisions of this subtitle that 
        the Secretary determines are not inconsistent with this 
        subsection.
            (2) Award basis.--The Secretary shall award grants pursuant 
        to paragraph (1) on a competitive basis and pursuant to 
        recommendations from the Pacific Region Educational Laboratory 
        in Honolulu, Hawaii.
            (3) Termination of eligibility.--Notwithstanding any other 
        provision of law, the Republic of the Marshall Islands, the 
        Federated States of Micronesia, and the Republic of Palau shall 
        not receive any funds under this part for any fiscal year that 
        begins after September 30, 2004.
            (4) Administrative costs.--The Secretary may provide not 
        more than 5 percent of the funds made available for grants 
        under this subsection to pay the administrative costs of the 
        Pacific Region Educational Laboratory regarding activities 
        assisted under this subsection.
    (f) Maintenance of Effort.--
            (1) In general.--An eligible agency may receive a grant 
        under this subtitle for any fiscal year only if the Secretary 
        finds that the amount expended by the State for adult education 
        and literacy, in the second fiscal year preceding the fiscal 
        year for which the determination is made, was not less than 90 
        percent of the amount expended for adult education and literacy 
        in the third fiscal year preceding the fiscal year for which 
        the determination is made.
            (2) Waiver.--The Secretary may waive the requirements of 
        this subsection for 1 fiscal year only if the Secretary 
        determines that such a waiver is equitable due to exceptional 
        or uncontrollable circumstances, such as a natural disaster or 
        an unforeseen and precipitous decline in the financial 
        resources of the State.
    (g) Reallotment.--If the Secretary determines that any amount of a 
State's allotment under this section for any fiscal year will not be 
required for carrying out the program for which such amount has been 
allotted, the Secretary shall make such amount available for 
reallotment to 1 or more States on the basis that the Secretary 
determines would best serve the purpose of this title.

SEC. 212. PERFORMANCE MEASURES AND EXPECTED LEVELS OF PERFORMANCE.

    (a) Performance Measures.--The Secretary shall publish the 
following performance measures to assess the progress of each eligible 
agency:
            (1) Demonstrated improvements in literacy skill levels in 
        reading, writing and speaking the English language, numeracy, 
        and problem-solving.
            (2) Attainment of secondary school diplomas or their 
        recognized equivalent.
            (3) Placement in, retention in, or completion of, 
        postsecondary education, training, or unsubsidized employment.
    (b) Expected Levels of Performance.--In developing a State plan, 
each eligible agency shall negotiate with the Secretary the expected 
levels of performance for the performance measures described in 
subsection (a).

SEC. 213. NATIONAL LEADERSHIP ACTIVITIES.

    (a) Authority.--From the amount reserved under section 211(a)(1) 
for any fiscal year, the Secretary may establish a program of national 
leadership and evaluation activities to enhance the quality of adult 
education and literacy nationwide.
    (b) Method of Funding.--The Secretary may carry out national 
leadership and evaluation activities directly or through grants, 
contracts, or cooperative agreements.
    (c) Uses of Funds.--Funds made available to carry out this section 
shall be used for--
            (1) research, such as estimating the number of adults 
        functioning at the lowest levels of literacy proficiency;
            (2) demonstration of model and innovative programs, such as 
        the development of models for basic skill certificates, 
        identification of effective strategies for working with adults 
        with learning disabilities and with individuals with limited 
        English proficiency who are adults, and workplace literacy 
        programs;
            (3) dissemination, such as dissemination of information 
        regarding promising practices resulting from federally funded 
        demonstration programs;
            (4) evaluations and assessments, such as periodic 
        independent evaluations of activities assisted under this 
        subtitle and assessments of the condition and progress of 
        literacy in the United States;
            (5) efforts to support capacity building at the State and 
        local levels, such as technical assistance in program planning, 
        assessment, evaluation, and monitoring of activities under this 
        subtitle;
            (6) data collection, such as improvement of both local and 
        State data systems through technical assistance and development 
        of model performance data collection systems;
            (7) professional development, such as technical assistance 
        activities to advance effective training practices, identify 
        exemplary professional development projects, and disseminate 
        new findings in adult education training;
            (8) technical assistance, such as endeavors that aid 
        distance learning, and promote and improve the use of 
        technology in the classroom; or
            (9) other activities designed to enhance the quality of 
        adult education and literacy nationwide.

                      CHAPTER 2--STATE PROVISIONS

SEC. 221. STATE ADMINISTRATION.

    (a) In General.--Each eligible agency shall be responsible for the 
State administration of activities under this subtitle, including--
            (1) the development, submission, and implementation of the 
        State plan;
            (2) consultation with other appropriate agencies, groups, 
        and individuals that are involved in, or interested in, the 
        development and implementation of activities assisted under 
        this subtitle; and
            (3) coordination and nonduplication with other Federal and 
        State education, training, corrections, public housing, and 
        social service programs.
    (b) State-Imposed Requirements.--Whenever a State imposes any rule 
or policy relating to the administration and operation of activities 
funded under this subtitle (including any rule or policy based on State 
interpretation of any Federal law, regulation, or guideline), the State 
shall identify the rule or policy as a State-imposed requirement.

SEC. 222. STATE DISTRIBUTION OF FUNDS; STATE SHARE.

    (a) State Distribution of Funds.--Each eligible agency receiving a 
grant under this subtitle for a fiscal year--
            (1) shall use not less than 80 percent of the grant funds 
        to carry out section 225 and to award grants and contracts 
        under section 231, of which not more than 10 percent of the 80 
        percent shall be available to carry out section 225;
            (2) shall use not more than 15 percent of the grant funds 
        to carry out State leadership activities under section 223; and
            (3) shall use not more than 5 percent of the grant funds, 
        or $80,000, whichever is greater, for administrative expenses 
        of the eligible agency.
    (b) State Share Requirement.--
            (1) In general.--In order to receive a grant from the 
        Secretary under section 211(b) each eligible agency shall 
        provide an amount equal to 25 percent of the total amount of 
        funds expended for adult education in the State or outlying 
        area, except that the Secretary may decrease the amount of 
        funds required under this subsection for an eligible agency 
        serving an outlying area.
            (2) State's share.--An eligible agency's funds required 
        under paragraph (1) may be in cash or in kind, fairly 
        evaluated, and shall include only non-Federal funds that are 
        used for adult education and literacy activities in a manner 
        that is consistent with the purpose of this subtitle.

SEC. 223. STATE LEADERSHIP ACTIVITIES.

    (a) In General.--Each eligible agency shall use funds made 
available under section 222(a)(2) for 1 or more of the following 
activities:
            (1) Professional development and training, including 
        training in the use of software and technology.
            (2) Developing and disseminating curricula for adult 
        education and literacy activities.
            (3) Monitoring and evaluating the quality of, and 
        improvement in, services and activities conducted with 
        assistance under this subtitle.
            (4) Establishing challenging performance measures and 
        levels of performance for literacy proficiency in order to 
        assess program quality and improvement.
            (5) Integration of literacy instruction and occupational 
        skill training, and promoting linkages with employers.
            (6) Linkages with postsecondary institutions.
            (7) Supporting State or regional networks of literacy 
        resource centers.
            (8) Other activities of statewide significance that promote 
        the purpose of this subtitle.
    (b) Collaboration.--In carrying out this section, eligible agencies 
shall collaborate where possible and avoid duplicating efforts in order 
to maximize the impact of the activities described in subsection (a).

SEC. 224. STATE PLAN.

    (a) 3-Year Plans.--
            (1) In general.--Each eligible agency desiring a grant 
        under this subtitle for any fiscal year shall submit to, or 
        have on file with, the Secretary a 3-year State plan.
            (2) Comprehensive plan or application.--The eligible agency 
        may submit the State plan as part of a comprehensive plan or 
        application for Federal education assistance.
    (b) Plan Contents.--In developing the State plan, and any revisions 
to the State plan, the eligible agency shall include in the State plan 
or revisions--
            (1) an objective assessment of the needs of individuals in 
        the State for adult education and literacy activities, 
        including individuals most in need or hardest to serve, such as 
        educationally disadvantaged adults, immigrants, individuals 
        with limited English proficiency, incarcerated individuals, 
        homeless individuals, recipients of public assistance, and 
        individuals with disabilities;
            (2) a description of the adult education and literacy 
        activities that will be carried out with any funds received 
        under this subtitle;
            (3) a description of how the eligible agency will evaluate 
        annually the effectiveness of the adult education and literacy 
        activities based on the performance measures described in 
        section 212;
            (4) a description of how the eligible agency will ensure 
        that the data reported to the eligible agency from eligible 
        providers under this subtitle and the data the eligible agency 
        reports to the Secretary are complete, accurate, and reliable;
            (5) a description of the performance measures required 
        under section 212(a) and how such performance measures and the 
        expected levels of performance will ensure improvement of adult 
        education and literacy activities in the State or outlying 
        area;
            (6) an assurance that the funds received under this 
        subtitle will not be expended for any purpose other than for 
        activities under this subtitle;
            (7) a description of how the eligible agency will fund 
        local activities in accordance with the priorities described in 
        section 242(a);
            (8) a description of how the eligible agency will determine 
        which eligible providers are eligible for funding in accordance 
        with the preferences described in section 242(b);
            (9) a description of how funds will be used for State 
        leadership activities, which activities may include 
        professional development and training, instructional 
        technology, and management technology;
            (10) an assurance that the eligible agency will expend the 
        funds under this subtitle only in a manner consistent with 
        fiscal requirement in section 241;
            (11) a description of the process that will be used for 
        public participation and comment with respect to the State 
        plan;
            (12) a description of how the eligible agency will develop 
        program strategies for populations that include, at a minimum--
                    (A) low-income students;
                    (B) individuals with disabilities;
                    (C) single parents and displaced homemakers; and
                    (D) individuals with multiple barriers to 
                educational enhancement, including individuals with 
                limited English proficiency;
            (13) a description of the measures that will be taken by 
        the eligible agency to assure coordination of and avoid 
        duplication among--
                    (A) adult education activities authorized under 
                this subtitle;
                    (B) activities authorized under title III;
                    (C) programs authorized under the Wagner-Peyser Act 
                (29 U.S.C. 49 et seq.), title I of the Rehabilitation 
                Act of 1973 (29 U.S.C. 720 et seq.), part A of title IV 
                of the Social Security Act (42 U.S.C. 601 et seq.), 
                section 6(d) of the Food Stamp Act of 1977 (7 U.S.C. 
                2015(d)), and title V of the Older Americans Act of 
                1965 (42 U.S.C. 3056 et seq.);
                    (D) a work program authorized under section 6(o) of 
                the Food Stamp Act of 1977 (7 U.S.C. 2015(o));
                    (E) activities authorized under chapter 2 of title 
                II of the Trade Act of 1974 (19 U.S.C. 2271 et seq.);
                    (F) activities authorized under chapter 41 of title 
                38, United States Code;
                    (G) training activities carried out by the 
                Department of Housing and Urban Development; and
                    (H) programs authorized under State unemployment 
                compensation laws in accordance with applicable Federal 
                law; and
            (14) the description and information specified in 
        paragraphs (9) and (17) of section 304(b).
    (c) Plan Revisions.--When changes in conditions or other factors 
require substantial revisions to an approved State plan, the eligible 
agency shall submit a revision to the State plan to the Secretary.
    (d) Consultation.--The eligible agency shall--
            (1) submit the State plan, and any revisions to the State 
        plan, to the Governor of the State for review and comment; and
            (2) ensure that any comments by the Governor regarding the 
        State plan, and any revision to the State plan, are submitted 
        to the Secretary.
    (e) Plan Approval.--
            (1) In general.--The Secretary shall approve a State plan, 
        or a revision to an approved State plan, only if the Secretary 
        determines that--
                    (A) the State plan, or revision, respectively, 
                meets the requirements of this section; and
                    (B) the State's performance measures and expected 
                levels of performance under section 212 are 
                sufficiently rigorous to meet the purpose of this 
                title.
            (2) Disapproval.--The Secretary shall not finally 
        disapprove a State plan, except after giving the eligible 
        agency notice and an opportunity for a hearing.
            (3) Peer review.--The Secretary shall establish a peer 
        review process to make recommendations regarding the approval 
        of State plans.

SEC. 225. PROGRAMS FOR CORRECTIONS EDUCATION AND OTHER 
              INSTITUTIONALIZED INDIVIDUALS.

    (a) Program Authorized.--From funds made available under section 
222(a)(1) for a fiscal year, each eligible agency shall carry out 
corrections education or education for other institutionalized 
individuals.
    (b) Uses of Funds.--The funds described in subsection (a) shall be 
used for the cost of educational programs for criminal offenders in 
corrections institutions and for other institutionalized individuals, 
including academic programs for--
            (1) basic education;
            (2) special education programs as determined by the State;
            (3) bilingual programs, or English as a second language 
        programs; and
            (4) secondary school credit programs.
    (c) Definition of Criminal Offender.--
            (1) Criminal offender.--The term ``criminal offender'' 
        means any individual who is charged with or convicted of any 
        criminal offense.
            (2) Correctional institution.--The term ``correctional 
        institution'' means any--
                    (A) prison;
                    (B) jail;
                    (C) reformatory;
                    (D) work farm;
                    (E) detention center; or
                    (F) halfway house, community-based rehabilitation 
                center, or any other similar institution designed for 
                the confinement or rehabilitation of criminal 
                offenders.

                      CHAPTER 3--LOCAL PROVISIONS

SEC. 231. GRANTS AND CONTRACTS FOR ELIGIBLE PROVIDERS.

    (a) Grants.--From funds made available under section 222(a)(1), 
each eligible agency shall award multiyear grants or contracts to 
eligible providers within the State to enable the eligible providers to 
develop, implement, and improve adult education and literacy activities 
within the State.
    (b) Special Rule.--Each eligible agency receiving funds under this 
subtitle shall ensure that all eligible providers have direct and 
equitable access to apply for grants or contracts under this section.
    (c) Required Local Activities.--Each eligible provider receiving a 
grant or contract under this subtitle shall establish programs that 
provide instruction or services that meet the purpose described in 
section 202(b), such as--
            (1) adult education and literacy services; or
            (2) English literacy programs.

SEC. 232. LOCAL APPLICATION.

    Each eligible provider desiring a grant or contract under this 
subtitle shall submit an application to the eligible agency containing 
such information and assurances as the eligible agency may require, 
including--
            (1) a description of how funds awarded under this subtitle 
        will be spent;
            (2) how the expected levels of performance of the eligible 
        provider with respect to participant recruitment, retention, 
        and performance measures described in section 212, will be met 
        and reported to the eligible agency; and
            (3) a description of any cooperative arrangements the 
        eligible provider has with other agencies, institutions, or 
        organizations for the delivery of adult education and literacy 
        programs.

SEC. 233. LOCAL ADMINISTRATIVE COST LIMITS.

    (a) In General.--Subject to subsection (b), of the sum that is made 
available under this subtitle to an eligible provider--
            (1) not less than 95 percent shall be expended for carrying 
        out adult education and literacy activities; and
            (2) the remaining amount, not to exceed 5 percent, shall be 
        used for planning, administration, personnel development, and 
        interagency coordination.
    (b) Special Rule.--In cases where the cost limits described in 
subsection (a) are too restrictive to allow for adequate planning, 
administration, personnel development, and interagency coordination, 
the eligible provider shall negotiate with the eligible agency in order 
to determine an adequate level of funds to be used for noninstructional 
purposes.

                     CHAPTER 4--GENERAL PROVISIONS

SEC. 241. ADMINISTRATIVE PROVISIONS.

    (a) Supplement Not Supplant.--Funds made available for adult 
education and literacy activities under this subtitle shall supplement 
and not supplant other State or local public funds expended for adult 
education and literacy activities.
    (b) Representation.--The eligible agency shall provide 
representation to the statewide partnership.

SEC. 242. PRIORITIES AND PREFERENCES.

    (a) Priorities.--Each eligible agency and eligible provider 
receiving assistance under this subtitle shall give priority in using 
the assistance to adult education and literacy activities that--
            (1) are built on a strong foundation of research and 
        effective educational practice;
            (2) effectively employ advances in technology, as 
        appropriate, including the use of computers;
            (3) provide learning in real life contexts to ensure that 
        an individual has the skills needed to compete in a global 
        economy and exercise the rights and responsibilities of 
        citizenship;
            (4) are staffed by well-trained instructors, counselors, 
        and administrators;
            (5) are of sufficient intensity and duration for 
        participants to achieve substantial learning gains, such as by 
        earning a basic skills certificate that reflects skills 
        acquisition and has meaning to employers;
            (6) establish measurable performance levels for participant 
        outcomes, such as levels of literacy achieved and attainment of 
        a secondary school diploma or its recognized equivalent, that 
        are tied to challenging State performance levels for literacy 
        proficiency;
            (7) coordinate with other available resources in the 
        community, such as by establishing strong links with elementary 
        schools and secondary schools, postsecondary institutions, 1-
        stop customer service centers, job training programs, and 
        social service agencies;
            (8) offer flexible schedules and support services (such as 
        child care and transportation) that are necessary to enable 
        individuals, including individuals with disabilities or other 
        special needs, to attend and complete programs; and
            (9) maintain a high-quality information management system 
        that has the capacity to report client outcomes and to monitor 
        program performance against the State performance measures.
    (b) Preferences.--In determining which eligible providers will 
receive funds under this subtitle for a fiscal year, each eligible 
agency receiving a grant under this subtitle, in addition to addressing 
the priorities described in subsection (a), shall--
            (1) give preference to eligible providers that the eligible 
        agency determines serve--
                    (A) local areas with high concentrations of 
                individuals in poverty or with low levels of literacy 
                (including English language proficiency); or
                    (B) local communities that have a demonstrated need 
                for additional English as a second language programs; 
                and
            (2) consider--
                    (A) the results, if any, of the evaluations 
                required under section 244(a); and
                    (B) the degree to which the eligible provider will 
                coordinate with and utilize other literacy and social 
                services available in the community.

SEC. 243. INCENTIVE GRANTS.

    (a) In General.--The Secretary may make grants to States that 
exceed the expected levels of performance for performance measures 
established under this Act.
    (b) Use of Funds.--A State that receives an incentive grant under 
this section shall use the funds made available through the grant to 
carry out innovative vocational education, adult education and 
literacy, or workforce investment programs as determined by the State.

SEC. 244. EVALUATION, IMPROVEMENT, AND ACCOUNT- ABILITY.

    (a) Local Evaluation.--Each eligible agency shall biennially 
evaluate the adult education and literacy activities of each eligible 
provider that receives a grant or contract under this subtitle, using 
the performance measures established under section 212.
    (b) Improvement Activities.--If, after reviewing the evaluation, an 
eligible agency determines that an eligible provider is not making 
substantial progress in achieving the purpose of this subtitle, the 
eligible agency may work jointly with the eligible provider to develop 
an improvement plan. If, after not more than 2 years of implementation 
of the improvement plan, the eligible agency determines that the 
eligible provider is not making substantial progress, the eligible 
agency shall take whatever corrective action the eligible agency deems 
necessary, which may include termination of funding or the 
implementation of alternative service arrangements, consistent with 
State law. The eligible agency shall take corrective action under the 
preceding sentence only after the eligible agency has provided 
technical assistance to the eligible provider and shall ensure, to the 
extent practicable, that any corrective action the eligible agency 
takes allows for continued services to and activities for the 
individuals served by the eligible provider.
    (c) State Report.--
            (1) In general.--The eligible agency shall report annually 
        to the Secretary regarding the quality and effectiveness of the 
        adult education and literacy activities funded through the 
        eligible agency's grants or contracts under this subtitle, 
        based on the performance measures and expected levels of 
        performance included in the State plan.
            (2) Information.--The eligible agency shall include in the 
        reports such information, in such form, as the Secretary may 
        require in order to ensure the collection of uniform national 
        data.
            (3) Availability.--The eligible agency shall make available 
        to the public the annual report under this subsection.
    (d) Technical Assistance.--If the Secretary determines that the 
eligible agency is not properly implementing the eligible agency's 
responsibilities under subsection (b), or is not making substantial 
progress in meeting the purpose of this subtitle, based on the 
performance measures and expected levels of performance included in the 
eligible agency's State plan, the Secretary shall work with the 
eligible agency to implement improvement activities.
    (e) Withholding of Federal Funds.--If, not earlier than 2 years 
after implementing activities described in subsection (d), the 
Secretary determines that the eligible agency is not making sufficient 
progress, based on the eligible agency's performance measures and 
expected levels of performance, the Secretary, after notice and 
opportunity for a hearing, shall withhold from the eligible agency all, 
or a portion, of the eligible agency's grant under this subtitle. The 
Secretary may use funds withheld under the preceding sentence to 
provide, through alternative arrangements, services and activities 
within the State to meet the purpose of this title.

SEC. 245. NATIONAL INSTITUTE FOR LITERACY.

    (a) Purpose.--The purpose of this section is to establish a 
National Institute for Literacy that--
            (1) provides national leadership regarding literacy;
            (2) coordinates literacy services and policy; and
            (3) is a national resource for adult education and 
        literacy, by providing the best and most current information 
        available and supporting the creation of new ways to offer 
        improved literacy services.
    (b) Establishment.--
            (1) In general.--There shall be a National Institute for 
        Literacy (in this section referred to as the ``Institute''). 
        The Institute shall be administered under the terms of an 
        interagency agreement entered into by the Secretary with the 
        Secretary of Labor and the Secretary of Health and Human 
        Services (in this section referred to as the ``Interagency 
        Group''). The Secretary may include in the Institute any 
        research and development center, institute, or clearinghouse 
        established within the Department of Education the purpose of 
        which is determined by the Secretary to be related to the 
        purpose of the Institute.
            (2) Recommendations.--The Interagency Group shall consider 
        the recommendations of the National Institute for Literacy 
        Advisory Board (in this section referred to as the ``Board'') 
        established under subsection (e) in planning the goals of the 
        Institute and in the implementation of any programs to achieve 
        the goals. If the Board's recommendations are not followed, the 
        Interagency Group shall provide a written explanation to the 
        Board concerning actions the Interagency Group takes that are 
        inconsistent with the Board's recommendations, including the 
        reasons for not following the Board's recommendations with 
        respect to the actions. The Board may also request a meeting of 
        the Interagency Group to discuss the Board's recommendations.
            (3) Daily operations.--The daily operations of the 
        Institute shall be administered by the Director of the 
        Institute.
    (c) Duties.--
            (1) In general.--In order to provide leadership for the 
        improvement and expansion of the system for delivery of 
        literacy services, the Institute is authorized to--
                    (A) establish a national electronic data base of 
                information that disseminates information to the 
                broadest possible audience within the literacy and 
                basic skills field, and that includes--
                            (i) effective practices in the provision of 
                        literacy and basic skills instruction, 
                        including the integration of such instruction 
                        with occupational skills training;
                            (ii) public and private literacy and basic 
                        skills programs and Federal, State, and local 
                        policies affecting the provision of literacy 
                        services at the national, State, and local 
                        levels;
                            (iii) opportunities for technical 
                        assistance, meetings, conferences, and other 
                        opportunities that lead to the improvement of 
                        literacy and basic skills services; and
                            (iv) a communication network for literacy 
                        programs, providers, social service agencies, 
                        and students;
                    (B) coordinate support for the provision of 
                literacy and basic skills services across Federal 
                agencies and at the State and local levels;
                    (C) coordinate the support of research and 
                development on literacy and basic skills for adults 
                across Federal agencies, especially with the Office of 
                Educational Research and Improvement in the Department 
                of Education, and carry out basic and applied research 
                and development on topics that are not being 
                investigated by other organizations or agencies;
                    (D) collect and disseminate information on methods 
                of advancing literacy;
                    (E) provide policy and technical assistance to 
                Federal, State, and local entities for the improvement 
                of policy and programs relating to literacy;
                    (F) fund a network of State or regional adult 
                literacy resource centers to assist State and local 
                public and private nonprofit efforts to improve 
                literacy by--
                            (i) encouraging the coordination of 
                        literacy services; and
                            (ii) serving as a link between the 
                        Institute and providers of adult education and 
                        literacy activities for the purpose of sharing 
                        information, data, research, expertise, and 
                        literacy resources; and
                    (G) undertake other activities that lead to the 
                improvement of the Nation's literacy delivery system 
                and that complement other such efforts being undertaken 
                by public and private agencies and organizations.
            (2) Grants, contracts, and cooperative agreements.--The 
        Institute may award grants to, or enter into contracts or 
        cooperative agreements with, individuals, public or private 
        institutions, agencies, organizations, or consortia of such 
        institutions, agencies, or organizations to carry out the 
        activities of the Institute. Such grants, contracts, or 
        agreements shall be subject to the laws and regulations that 
        generally apply to grants, contracts, or agreements entered 
        into by Federal agencies.
    (d) Literacy Leadership.--
            (1) In general.--The Institute may, in consultation with 
        the Board, award fellowships, with such stipends and allowances 
        that the Director considers necessary, to outstanding 
        individuals pursuing careers in adult education or literacy in 
        the areas of instruction, management, research, or innovation.
            (2) Fellowships.--Fellowships awarded under this subsection 
        shall be used, under the auspices of the Institute, to engage 
        in research, education, training, technical assistance, or 
        other activities to advance the field of adult education or 
        literacy, including the training of volunteer literacy 
        providers at the national, State, or local level.
            (3) Internships.--The Institute, in consultation with the 
        Board, is authorized to award paid and unpaid internships to 
        individuals seeking to assist in carrying out the Institute's 
        purpose and to accept assistance from volunteers.
    (e) National Institute for Literacy Advisory Board.--
            (1) Establishment.--
                    (A) In general.--There shall be a National 
                Institute for Literacy Advisory Board, which shall 
                consist of 10 individuals appointed by the President 
                with the advice and consent of the Senate.
                    (B) Composition.--The Board shall comprise 
                individuals who are not otherwise officers or employees 
                of the Federal Government and who are representative of 
                such entities as--
                            (i) literacy organizations and providers of 
                        literacy services, including nonprofit 
                        providers, providers of English as a second 
                        language programs and services, social service 
                        organizations, and eligible providers receiving 
                        assistance under this subtitle;
                            (ii) businesses that have demonstrated 
                        interest in literacy programs;
                            (iii) literacy students, including literacy 
                        students with disabilities;
                            (iv) experts in the area of literacy 
                        research;
                            (v) State and local governments;
                            (vi) State Directors of adult education; 
                        and
                            (vii) labor organizations.
            (2) Duties.--The Board shall--
                    (A) make recommendations concerning the appointment 
                of the Director and staff of the Institute; and
                    (B) provide independent advice on the operation of 
                the Institute.
            (3) Appointments.--
                    (A) In general.--Appointments to the Board made 
                after the date of enactment of the Workforce Investment 
                Partnership Act shall be for 3-year terms, except that 
                the initial terms for members may be established at 1, 
                2, or 3 years in order to establish a rotation in which 
                \1/3\ of the members are selected each year.
                    (B) Vacancies.--Any member appointed to fill a 
                vacancy occurring before the expiration of the term for 
                which the member's predecessor was appointed shall be 
                appointed only for the remainder of that term. A member 
                may serve after the expiration of that member's term 
                until a successor has taken office.
            (4) Officers.--The Chairperson and Vice Chairperson of the 
        Board shall be elected by the members.
            (5) Meetings.--The Board shall meet at the call of the 
        Chairperson or a majority of its members.
    (f) Gifts, Bequests, and Devises.--
            (1) In general.--The Institute may accept, administer, and 
        use gifts or donations of services, money, or property, whether 
        real or personal, tangible or intangible.
            (2) Rules.--The Board shall establish written rules setting 
        forth the criteria to be used by the Institute in determining 
        whether the acceptance of contributions of services, money, or 
        property whether real or personal, tangible or intangible, 
        would reflect unfavorably upon the ability of the Institute or 
        any employee to carry out its responsibilities or official 
        duties in a fair and objective manner, or would compromise the 
        integrity or the appearance of the integrity of its programs or 
        any official involved in those programs.
    (g) Mails.--The Board and the Institute may use the United States 
mails in the same manner and under the same conditions as other 
departments and agencies of the United States.
    (h) Staff.--The Interagency Group, after considering 
recommendations made by the Board, shall appoint and fix the pay of a 
Director.
    (i) Applicability of Certain Civil Service Laws.--The Director and 
staff of the Institute may be appointed without regard to the 
provisions of title 5, United States Code, governing appointments in 
the competitive service, and may be paid without regard to the 
provisions of chapter 51 and subchapter III of chapter 53 of that title 
relating to classification and General Schedule pay rates, except that 
an individual so appointed may not receive pay in excess of the annual 
rate of basic pay payable for level IV of the Executive Schedule.
    (j) Experts and Consultants.--The Institute may procure temporary 
and intermittent services under section 3109(b) of title 5, United 
States Code.
    (k) Report.--The Institute shall submit a biennial report to the 
Interagency Group and Congress.
    (l) Nonduplication.--The Institute shall not duplicate any 
functions carried out by the Secretary, the Secretary of Labor, or the 
Secretary of Health and Human Services under this subtitle. This 
subsection shall not be construed to prohibit the Secretaries from 
delegating such functions to the Institute.
    (m) Funding.--Any amounts appropriated to the Secretary, the 
Secretary of Labor, the Secretary of Health and Human Services, or any 
other department that participates in the Institute for purposes that 
the Institute is authorized to perform under this section may be 
provided to the Institute for such purposes.

SEC. 246. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to carry out this title such 
sums as may be necessary for fiscal year 1999 and each of the 5 
succeeding fiscal years.

                           Subtitle B--Repeal

SEC. 251. REPEAL.

    (a) Repeal.--The Adult Education Act (20 U.S.C. 1201 et. seq.) is 
repealed.
    (b) Conforming Amendments.--
            (1) Refugee education assistance act.--Subsection (b) of 
        section 402 of the Refugee Education Assistance Act of 1980 (8 
        U.S.C. 1522 note) is repealed.
            (2) Elementary and secondary education act of 1965.--
                    (A) Section 1202 of esea.--Section 1202(c)(1) of 
                the Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 6362(c)(1)) is amended by striking ``Adult 
                Education Act'' and inserting ``Workforce Investment 
                Partnership Act of 1998''.
                    (B) Section 1205 of esea.--Section 1205(8)(B) of 
                such Act (20 U.S.C. 6365(8)(B)) is amended by striking 
                ``Adult Education Act'' and inserting ``Workforce 
                Investment Partnership Act of 1998''.
                    (C) Section 1206 of esea.--Section 1206(a)(1)(A) of 
                such Act (20 U.S.C. 6366(a)(1)(A)) is amended by 
                striking ``an adult basic education program under the 
                Adult Education Act'' and inserting ``adult education 
                and literacy activities under the Workforce Investment 
                Partnership Act of 1998''.
                    (D) Section 3113 of esea.--Section 3113(1) of such 
                Act (20 U.S.C. 6813(1)) is amended by striking 
                ``section 312 of the Adult Education Act'' and 
                inserting ``section 2 of the Workforce Investment 
                Partnership Act of 1998''.
                    (E) Section 9161 of esea.--Section 9161(2) of such 
                Act (20 U.S.C. 7881(2)) is amended by striking 
                ``section 312(2) of the Adult Education Act'' and 
                inserting ``section 2 of the Workforce Investment 
                Partnership Act of 1998''.
            (3) Older americans act of 1965.--Section 203(b)(8) of the 
        Older Americans Act of 1965 (42 U.S.C. 3013(b)(8)) is amended 
        by striking ``Adult Education Act'' and inserting ``Workforce 
        Investment Partnership Act of 1998''.
            (4) National literacy act of 1991.--The National Literacy 
        Act of 1991 (20 U.S.C. 1201 note) is repealed.

         TITLE III--WORKFORCE INVESTMENT AND RELATED ACTIVITIES

              Subtitle A--Workforce Investment Activities

   CHAPTER 1--ALLOTMENTS TO STATES FOR ADULT EMPLOYMENT AND TRAINING 
 ACTIVITIES, DISLOCATED WORKER EMPLOYMENT AND TRAINING ACTIVITIES, AND 
                            YOUTH ACTIVITIES

SEC. 301. GENERAL AUTHORIZATION.

    The Secretary of Labor shall make an allotment to each State that 
has a State plan approved under section 304 and a grant to each 
outlying area that complies with the requirements of this title, to 
enable the State or outlying area to assist local areas in providing, 
through a statewide workforce investment system--
            (1) adult employment and training activities;
            (2) dislocated worker employment and training activities; 
        and
            (3) youth activities, including summer employment 
        opportunities, tutoring, activities to promote study skills, 
        alternative secondary school services, employment skill 
        training, adult mentoring, and supportive services.

SEC. 302. STATE ALLOTMENTS.

    (a) In General.--The Secretary shall--
            (1) make allotments and grants from the total amount 
        appropriated under section 322(a) for a fiscal year in 
        accordance with subsection (b)(1);
            (2)(A) reserve 20 percent of the amount appropriated under 
        section 322(b) for a fiscal year for use under subsection 
        (b)(2)(A), and under sections 366(b)(2), 367(f), and 369; and
            (B) make allotments from 80 percent of the amount 
        appropriated under section 322(b) for a fiscal year in 
        accordance with subsection (b)(2)(B); and
            (3)(A) for each fiscal year in which the amount 
        appropriated under section 322(c) exceeds $1,000,000,000, 
        reserve a portion determined under subsection (b)(3)(A) of the 
        amount appropriated under section 322(c) for use under sections 
        362 and 364; and
            (B) use the remainder of the amount appropriated under 
        section 322(c) for a fiscal year to make allotments and grants 
        in accordance with subparagraphs (B) and (C) of subsection 
        (b)(3) and make funds available for use under section 361.
    (b) Allotment Among States.--
            (1) Adult employment and training activities.--
                    (A) Outlying areas.--
                            (i) In general.--From the amount made 
                        available under subsection (a)(1) for a fiscal 
                        year, the Secretary shall reserve not more than 
                        \1/4\ of 1 percent--
                                    (I) to provide assistance to the 
                                United States Virgin Islands, Guam, 
                                American Samoa, and the Commonwealth of 
                                the Northern Mariana Islands to carry 
                                out adult employment and training 
                                activities; and
                                    (II) for each of the fiscal years 
                                1999 through 2004, to carry out the 
                                competition described in clause (iii), 
                                except that the amount reserved to 
                                carry out such clause for any such 
                                fiscal year shall not exceed the amount 
                                reserved for the Freely Associated 
                                States for fiscal year 1998, from 
                                amounts reserved under section 
                                202(a)(1) of the Job Training 
                                Partnership Act (29 U.S.C. 1602(a)(1)) 
                                (as in effect on the day before the 
                                date of enactment of this Act).
                            (ii) Application.--To be eligible to 
                        receive a grant under this subparagraph, an 
                        outlying area shall submit an application to 
                        the Secretary at such time, in such manner, and 
                        containing such information and assurances as 
                        the Secretary may require.
                            (iii) Competitive grants.--The Secretary 
                        shall use funds described in clause (i)(II) to 
                        make grants to Guam, American Samoa, the 
                        Commonwealth of the Northern Mariana Islands, 
                        the Republic of the Marshall Islands, the 
                        Federated States of Micronesia, or the Republic 
                        of Palau to carry out adult employment and 
                        training activities.
                            (iv) Basis.--The Secretary shall make 
                        grants pursuant to clause (iii) on a 
                        competitive basis and pursuant to the 
                        recommendations of experts in the field of 
                        employment and training, working through the 
                        Pacific Region Educational Laboratory in 
                        Honolulu, Hawaii.
                            (v) Assistance requirements.--Any Freely 
                        Associated State that desires to receive a 
                        grant made under clause (iii) shall include in 
                        the application of the State for assistance--
                                    (I) information demonstrating that 
                                the State will meet all conditions of 
                                the regulations described in clause 
                                (ix); and
                                    (II) an assurance that, 
                                notwithstanding any other provision of 
                                this title, the State will use the 
                                amounts made available through such 
                                grants only for the direct provision of 
                                services.
                            (vi) Termination of eligibility.--
                        Notwithstanding any other provision of law, the 
                        Freely Associated States shall not receive any 
                        funds under clause (iii) for any program year 
                        that begins after September 30, 2004.
                            (vii) Administrative costs.--The Secretary 
                        may provide not more than 5 percent of the 
                        amount made available for grants under clause 
                        (iii) to pay the administrative costs of the 
                        Pacific Region Educational Laboratory in 
                        Honolulu, Hawaii, regarding activities assisted 
                        under this subparagraph.
                            (viii) Additional requirement.--The 
                        provisions of Public Law 95-134, permitting the 
                        consolidation of grants by the outlying areas, 
                        shall not apply to funds provided to those 
                        areas, including the Freely Associated States, 
                        under this subparagraph.
                            (ix) Regulations.--The Secretary shall 
                        issue regulations specifying requirements of 
                        this title that apply to outlying areas 
                        receiving funds under this subparagraph.
                    (B) States.--
                            (i) In general.--After determining the 
                        amount to be reserved under subparagraph (A), 
                        the Secretary shall allot the remainder of the 
                        amount referred to in subsection (a)(1) for a 
                        fiscal year to the States pursuant to clause 
                        (ii) for adult employment and training 
                        activities.
                            (ii) Formula.--Subject to clauses (iii) and 
                        (iv), of the remainder--
                                    (I) 33\1/3\ percent shall be 
                                allotted on the basis of the relative 
                                number of unemployed individuals in 
                                areas of substantial unemployment in 
                                each State, compared to the total 
                                number of unemployed individuals in 
                                areas of substantial unemployment in 
                                all States;
                                    (II) 33\1/3\ percent shall be 
                                allotted on the basis of the relative 
                                excess number of unemployed individuals 
                                in each State, compared to the total 
                                excess number of unemployed individuals 
                                in all States; and
                                    (III) 33\1/3\ percent shall be 
                                allotted on the basis of the relative 
                                number of disadvantaged adults in each 
                                State, compared to the total number of 
                                disadvantaged adults in all States, 
                                except as described in clause (iii).
                            (iii) Calculation.--In determining an 
                        allotment under clause (ii)(III) for any State 
                        in which there is a local area designated under 
                        section 307(a)(2)(A)(ii), the allotment shall 
                        be based on the higher of--
                                    (I) the number of adults in 
                                families with an income below the low-
                                income level in such area; or
                                    (II) the number of disadvantaged 
                                adults in such area.
                            (iv) Minimum and maximum percentages and 
                        minimum allotments.--In making allotments under 
                        this subparagraph, the Secretary shall ensure 
                        the following:
                                    (I) Minimum percentage.--The 
                                Secretary shall ensure that no State 
                                shall receive an allotment percentage 
                                for a fiscal year that is less than 90 
                                percent of the allotment percentage of 
                                the State for the preceding fiscal 
                                year.
                                    (II) Small state minimum 
                                allotment.--Subject to subclauses (I) 
                                and (III), the Secretary shall ensure 
                                that no State shall receive an 
                                allotment under this subparagraph that 
                                is less than \2/5\ of 1 percent of the 
                                remainder described in clause (i) for a 
                                fiscal year.
                                    (III) Maximum percentage.--Subject 
                                to subclause (I), the Secretary shall 
                                ensure that no State shall receive an 
                                allotment percentage for a fiscal year 
                                that is more than 130 percent of the 
                                allotment percentage of the State for 
                                the preceding fiscal year.
                            (v) Definitions.--In this subparagraph:
                                    (I) Adult.--The term ``adult'' 
                                means an individual who is not less 
                                than age 22 and not more than age 72.
                                    (II) Allotment percentage.--The 
                                term ``allotment percentage'', used 
                                with respect to fiscal year 1999 or a 
                                subsequent fiscal year, means a 
                                percentage of the remainder described 
                                in clause (i), received through an 
                                allotment made under this subparagraph, 
                                for the fiscal year. The term, used 
                                with respect to fiscal year 1998, means 
                                the percentage of the amounts allotted 
                                to States under section 202(a) of the 
                                Job Training Partnership Act (29 U.S.C. 
                                1602(a)) (as in effect on the day 
                                before the date of enactment of this 
                                Act) received under such section by the 
                                State involved for fiscal year 1998.
                                    (III) Area of substantial 
                                unemployment.--The term ``area of 
                                substantial unemployment'' means any 
                                area that is of sufficient size and 
                                scope to sustain a program of workforce 
                                investment activities carried out under 
                                this subtitle and that has an average 
                                rate of unemployment of at least 6.5 
                                percent for the most recent 12 months, 
                                as determined by the Secretary. For 
                                purposes of this subclause, 
                                determinations of areas of substantial 
                                unemployment shall be made once each 
                                fiscal year.
                                    (IV) Disadvantaged adult.--Subject 
                                to subclause (V), the term 
                                ``disadvantaged adult'' means an adult 
                                who received an income, or is a member 
                                of a family that received a total 
                                family income, that, in relation to 
                                family size, does not exceed the higher 
                                of--
                                            (aa) the poverty line; or
                                            (bb) 70 percent of the 
                                        lower living standard income 
                                        level.
                                    (V) Disadvantaged adult special 
                                rule.--The Secretary shall, as 
                                appropriate and to the extent 
                                practicable, exclude students at an 
                                institution of higher education and 
                                members of the Armed Forces from the 
                                determination of the number of 
                                disadvantaged adults.
                                    (VI) Excess number.--The term 
                                ``excess number'' means, used with 
                                respect to the excess number of 
                                unemployed individuals within a State, 
                                the higher of--
                                            (aa) the number that 
                                        represents the number of 
                                        unemployed individuals in 
                                        excess of 4.5 percent of the 
                                        civilian labor force in the 
                                        State; or
                                            (bb) the number that 
                                        represents the number of 
                                        unemployed individuals in 
                                        excess of 4.5 percent of the 
                                        civilian labor force in areas 
                                        of substantial unemployment in 
                                        such State.
            (2) Dislocated worker employment and training.--
                    (A) Outlying areas.--
                            (i) In general.--From the amount made 
                        available under subsection (a)(2)(A) for a 
                        fiscal year, the Secretary shall reserve not 
                        more than \1/4\ of 1 percent of the amount made 
                        available under subsection (a)(2)--
                                    (I) to provide assistance to the 
                                United States Virgin Islands, Guam, 
                                American Samoa, and the Commonwealth of 
                                the Northern Mariana Islands to carry 
                                out dislocated worker employment and 
                                training activities; and
                                    (II) for each of the fiscal years 
                                1999 through 2004, to carry out the 
                                competition described in clause (iii), 
                                except that the amount reserved to 
                                carry out such clause for any such 
                                fiscal year shall not exceed the amount 
                                reserved for the Freely Associated 
                                States for fiscal year 1998, from 
                                amounts reserved under section 302(e) 
                                of the Job Training Partnership Act (29 
                                U.S.C. 1652(e)) (as in effect on the 
                                day before the date of enactment of 
                                this Act).
                            (ii) Application.--To be eligible to 
                        receive a grant under this subparagraph, an 
                        outlying area shall submit an application to 
                        the Secretary at such time, in such manner, and 
                        containing such information and assurances as 
                        the Secretary may require.
                            (iii) Competitive grants.--The Secretary 
                        shall use funds described in clause (i)(II) to 
                        make grants to Guam, American Samoa, the 
                        Commonwealth of the Northern Mariana Islands, 
                        the Republic of the Marshall Islands, the 
                        Federated States of Micronesia, or the Republic 
                        of Palau to carry out dislocated worker 
                        employment and training activities.
                            (iv) Basis.--The Secretary shall make 
                        grants pursuant to clause (iii) on a 
                        competitive basis and pursuant to the 
                        recommendations of experts in the field of 
                        employment and training, working through the 
                        Pacific Region Educational Laboratory in 
                        Honolulu, Hawaii.
                            (v) Assistance requirements.--Any Freely 
                        Associated State that desires to receive a 
                        grant made under clause (iii) shall include in 
                        the application of the State for assistance--
                                    (I) information demonstrating that 
                                the State will meet all conditions of 
                                the regulations described in clause 
                                (ix); and
                                    (II) an assurance that, 
                                notwithstanding any other provision of 
                                this title, the State will use the 
                                amounts made available through such 
                                grants only for the direct provision of 
                                services.
                            (vi) Termination of eligibility.--
                        Notwithstanding any other provision of law, the 
                        Freely Associated States shall not receive any 
                        funds under clause (iii) for any program year 
                        that begins after September 30, 2004.
                            (vii) Administrative costs.--The Secretary 
                        may provide not more than 5 percent of the 
                        amount made available for grants under clause 
                        (iii) to pay the administrative costs of the 
                        Pacific Region Educational Laboratory in 
                        Honolulu, Hawaii, regarding activities assisted 
                        under this subparagraph.
                            (viii) Additional requirement.--The 
                        provisions of Public Law 95-134, permitting the 
                        consolidation of grants by the outlying areas, 
                        shall not apply to funds provided to those 
                        areas, including the Freely Associated States, 
                        under this subparagraph.
                            (ix) Regulations.--The Secretary shall 
                        issue regulations specifying requirements of 
                        this title that apply to outlying areas 
                        receiving funds under this subparagraph.
                    (B) States.--
                            (i) In general.--The Secretary shall allot 
                        the amount referred to in subsection (a)(2)(B) 
                        for a fiscal year to the States pursuant to 
                        clause (ii) for dislocated worker employment 
                        and training activities.
                            (ii) Formula.--Of the amount--
                                    (I) 33\1/3\ percent shall be 
                                allotted on the basis of the relative 
                                number of unemployed individuals in 
                                each State, compared to the total 
                                number of unemployed individuals in all 
                                States;
                                    (II) 33\1/3\ percent shall be 
                                allotted on the basis of the relative 
                                excess number of unemployed individuals 
                                in each State, compared to the total 
                                excess number of unemployed individuals 
                                in all States; and
                                    (III) 33\1/3\ percent shall be 
                                allotted on the basis of the relative 
                                number of individuals in each State who 
                                have been unemployed for 15 weeks or 
                                more, compared to the total number of 
                                individuals in all States who have been 
                                unemployed for 15 weeks or more.
                            (iii) Definition.--In this subparagraph, 
                        the term ``excess number'' means, used with 
                        respect to the excess number of unemployed 
                        individuals within a State, the number that 
                        represents the number of unemployed individuals 
                        in excess of 4.5 percent of the civilian labor 
                        force in the State.
            (3) Youth activities.--
                    (A) Youth opportunity grants.--
                            (i) In general.--For each fiscal year in 
                        which the amount appropriated under section 
                        322(c) exceeds $1,000,000,000, the Secretary 
                        shall reserve a portion of the amount to 
                        provide youth opportunity grants and other 
                        activities under section 364 and provide youth 
                        activities under section 362.
                            (ii) Portion.--The portion referred to in 
                        clause (i) shall equal, for a fiscal year--
                                    (I) except as provided in subclause 
                                (II), the difference obtained by 
                                subtracting $1,000,000,000 from the 
                                amount described in clause (i); and
                                    (II) for any fiscal year in which 
                                the amount is $1,250,000,000 or 
                                greater, $250,000,000.
                            (iii) Youth activities for farmworkers.--
                        From the portion described in clause (i) for a 
                        fiscal year, the Secretary shall make available 
                        $10,000,000 to provide youth activities under 
                        section 362.
                            (iv) Role model academy project.--From the 
                        portion described in clause (i) for fiscal year 
                        1999, the Secretary shall make available not 
                        more than $10,000,000 to carry out section 
                        364(g).
                    (B) Outlying areas.--
                            (i) In general.--From the amount made 
                        available under subsection (a)(3)(B) for a 
                        fiscal year, the Secretary shall reserve not 
                        more than \1/4\ of 1 percent--
                                    (I) to provide assistance to the 
                                United States Virgin Islands, Guam, 
                                American Samoa, and the Commonwealth of 
                                the Northern Mariana Islands to carry 
                                out youth activities; and
                                    (II) for each of the fiscal years 
                                1999 through 2004, to carry out the 
                                competition described in clause (iii), 
                                except that the amount reserved to 
                                carry out such clause for any such 
                                fiscal year shall not exceed the amount 
                                reserved for the Freely Associated 
                                States for fiscal year 1998, from 
                                amounts reserved under sections 252(a) 
                                and 262(a)(1) of the Job Training 
                                Partnership Act (29 U.S.C. and 1631(a) 
                                and 1642(a)(1)) (as in effect on the 
                                day before the date of enactment of 
                                this Act).
                            (ii) Application.--To be eligible to 
                        receive a grant under this subparagraph, an 
                        outlying area shall submit an application to 
                        the Secretary at such time, in such manner, and 
                        containing such information and assurances as 
                        the Secretary may require.
                            (iii) Competitive grants.--The Secretary 
                        shall use funds described in clause (i)(II) to 
                        make grants to Guam, American Samoa, the 
                        Commonwealth of the Northern Mariana Islands, 
                        the Republic of the Marshall Islands, the 
                        Federated States of Micronesia, or the Republic 
                        of Palau to carry out youth activities.
                            (iv) Basis.--The Secretary shall make 
                        grants pursuant to clause (iii) on a 
                        competitive basis and pursuant to the 
                        recommendations of experts in the field of 
                        employment and training, working through the 
                        Pacific Region Educational Laboratory in 
                        Honolulu, Hawaii.
                            (v) Assistance requirements.--Any Freely 
                        Associated State that desires to receive a 
                        grant made under clause (iii) shall include in 
                        the application of the State for assistance--
                                    (I) information demonstrating that 
                                the State will meet all conditions of 
                                the regulations described in clause 
                                (ix); and
                                    (II) an assurance that, 
                                notwithstanding any other provision of 
                                this title, the State will use the 
                                amounts made available through such 
                                grants only for the direct provision of 
                                services.
                            (vi) Termination of eligibility.--
                        Notwithstanding any other provision of law, the 
                        Freely Associated States shall not receive any 
                        funds under clause (iii) for any program year 
                        that begins after September 30, 2004.
                            (vii) Administrative costs.--The Secretary 
                        may provide not more than 5 percent of the 
                        amount made available for grants under clause 
                        (iii) to pay the administrative costs of the 
                        Pacific Region Educational Laboratory in 
                        Honolulu, Hawaii, regarding activities assisted 
                        under this subparagraph.
                            (viii) Additional requirement.--The 
                        provisions of Public Law 95-134, permitting the 
                        consolidation of grants by the outlying areas, 
                        shall not apply to funds provided to those 
                        areas, including the Freely Associated States, 
                        under this subparagraph.
                            (ix) Regulations.--The Secretary shall 
                        issue regulations specifying requirements of 
                        this title that apply to outlying areas 
                        receiving funds under this subparagraph.
                    (C) States.--
                            (i) In general.--After determining the 
                        amounts to be reserved under subparagraph (A) 
                        (if any) and subparagraph (B), the Secretary 
                        shall--
                                    (I) from the amount referred to in 
                                subsection (a)(3)(B) for a fiscal year, 
                                make available $15,000,000 to provide 
                                youth activities under section 361; and
                                    (II) allot the remainder of the 
                                amount referred to in subsection 
                                (a)(3)(B) for a fiscal year to the 
                                States pursuant to clause (ii) for 
                                youth activities.
                            (ii) Formula.--Subject to clauses (iii) and 
                        (iv), of the remainder--
                                    (I) 33\1/3\ percent shall be 
                                allotted on the basis described in 
                                paragraph (1)(B)(ii)(I);
                                    (II) 33\1/3\ percent shall be 
                                allotted on the basis described in 
                                paragraph (1)(B)(ii)(II); and
                                    (III) 33\1/3\ percent shall be 
                                allotted on the basis of the relative 
                                number of disadvantaged youth in each 
                                State, compared to the total number of 
                                disadvantaged youth in all States, 
                                except as described in clause (iii).
                            (iii) Calculation.--In determining an 
                        allotment under clause (ii)(III) for any State 
                        in which there is a local area designated under 
                        section 307(a)(2)(A)(ii), the allotment shall 
                        be based on the higher of--
                                    (I) the number of youth in families 
                                with an income below the low-income 
                                level in such area; or
                                    (II) the number of disadvantaged 
                                youth in such area.
                            (iv) Minimum percentage; maximum 
                        percentage; small state minimum allotment.--
                                    (I) In general.--Except as provided 
                                in subclause (II), the requirements of 
                                clauses (iv) and (v) of paragraph 
                                (1)(B) shall apply to allotments made 
                                under this subparagraph in the same 
                                manner and to the same extent as the 
                                requirements apply to allotments made 
                                under paragraph (1)(B).
                                    (II) Exceptions.--For purposes of 
                                applying the requirements of those 
                                clauses under this subparagraph--
                                            (aa) references in those 
                                        clauses to the remainder 
                                        described in clause (i) of 
                                        paragraph (1)(B) shall be 
                                        considered to be references to 
                                        the remainder described in 
                                        clause (i)(II) of this 
                                        subparagraph; and
                                            (bb) the term ``allotment 
                                        percentage'', used with respect 
                                        to fiscal year 1998, means the 
                                        percentage of the amounts 
                                        allotted to States under 
                                        sections 252(b) and 262(a) of 
                                        the Job Training Partnership 
                                        Act (29 U.S.C. 1631(b) and 
                                        1642(a)) (as in effect on the 
                                        day before the date of 
                                        enactment of this Act) received 
                                        under such sections by the 
                                        State involved for fiscal year 
                                        1998.
                            (v) Definitions.--In this subparagraph:
                                    (I) Disadvantaged youth.--The term 
                                ``disadvantaged youth'' means a youth 
                                who received an income, or is a member 
                                of a family that received a total 
                                family income, that, in relation to 
                                family size, does not exceed the higher 
                                of--
                                            (aa) the poverty line; or
                                            (bb) 70 percent of the 
                                        lower living standard income 
                                        level.
                                    (II) Disadvantaged youth special 
                                rule.--The Secretary shall, as 
                                appropriate and to the extent 
                                practicable, exclude students at an 
                                institution of higher education and 
                                members of the Armed Forces from the 
                                determination of the number of 
                                disadvantaged youth.
                                    (III) Youth.--The term ``youth'' 
                                means an individual who is not less 
                                than age 16 and not more than age 21.
            (4) Definitions.--In this subsection:
                    (A) Freely associated states.--The term ``Freely 
                Associated States'' means the Republic of the Marshall 
                Islands, the Federated States of Micronesia, and the 
                Republic of Palau.
                    (B) Low-income level.--The term ``low-income 
                level'', used with respect to a year, means that amount 
                that bears the same relationship to $7,000 as the 
                Consumer Price Index for that year bears to the 
                Consumer Price Index for 1969, rounded to the nearest 
                $1,000.

SEC. 303. STATEWIDE PARTNERSHIP.

    (a) In General.--The Governor of a State shall establish and 
appoint the members of a statewide partnership to assist in the 
development of the State plan described in section 304 and carry out 
the functions described in subsection (d).
    (b) Membership.--
            (1) In general.--The statewide partnership shall include--
                    (A) the Governor;
                    (B) representatives, appointed by the Governor, 
                who--
                            (i) are representatives of business in the 
                        State;
                            (ii) are owners of businesses, chief 
                        executives or operating officers of private 
                        businesses, and other business executives or 
                        employers with optimum policymaking or hiring 
                        authority, including members of local 
                        partnerships described in section 
                        308(c)(2)(A)(i);
                            (iii) represent businesses with employment 
                        opportunities that reflect the employment 
                        opportunities of the State; and
                            (iv) are appointed from among individuals 
                        nominated by State business organizations and 
                        business trade associations;
                    (C) representatives, appointed by the Governor, who 
                are individuals who have optimum policymaking 
                authority, including--
                            (i) representatives of--
                                    (I) chief elected officials 
                                (representing both cities and counties, 
                                where appropriate);
                                    (II) labor organizations, who have 
                                been nominated by State labor 
                                federations; and
                                    (III) individuals, and 
                                organizations, that have experience 
                                relating to youth activities;
                            (ii) the eligible agency officials 
                        responsible for vocational education, including 
                        postsecondary vocational education, and for 
                        adult education and literacy, and the State 
                        officials responsible for postsecondary 
                        education (including education in community 
                        colleges); and
                            (iii) the State agency official responsible 
                        for vocational rehabilitation and, where 
                        applicable, the State agency official 
                        responsible for providing vocational 
                        rehabilitation program activities for the 
                        blind;
                    (D) such other State agency officials as the 
                Governor may designate, such as State agency officials 
                carrying out activities relating to employment and 
                training, economic development, public assistance, 
                veterans, youth, juvenile justice and the employment 
                service established under the Wagner-Peyser Act (29 
                U.S.C. 49 et seq.); and
                    (E) two members of each chamber of the State 
                legislature, appointed by the appropriate presiding 
                officer of the chamber.
            (2) Majority.--A majority of the members of the statewide 
        partnership shall be representatives described in paragraph 
        (1)(B).
    (c) Chairman.--The Governor shall select a chairperson for the 
statewide partnership from among the representatives described in 
subsection (b)(1)(B).
    (d) Functions.--In addition to developing the State plan, the 
statewide partnership shall--
            (1) advise the Governor on the development of a 
        comprehensive statewide workforce investment system;
            (2) assist the Governor in preparing the annual report to 
        the Secretaries described in section 321(d);
            (3) assist the Governor in developing the statewide labor 
        market information system described in section 15(e) of the 
        Wagner-Peyser Act; and
            (4) assist in the monitoring and continuous improvement of 
        the performance of the statewide workforce investment system, 
        including the evaluation of the effectiveness of workforce 
        investment activities carried out under this subtitle in 
        serving the needs of employers seeking skilled employees and 
        individuals seeking services.
    (e) Authority of Governor.--
            (1) Authority.--The Governor shall have the final authority 
        to determine the contents of and submit the State plan 
        described in section 304.
            (2) Process.--Prior to the date on which the Governor 
        submits a State plan under section 304, the Governor shall--
                    (A) make available copies of a proposed State plan 
                to the public;
                    (B) allow members of the statewide partnership and 
                members of the public, including representatives of 
                labor organizations and businesses, to submit comments 
                on the proposed State plan to the Governor, not later 
                than the end of the 30-day period beginning on the date 
                on which the proposed State plan is made available; and
                    (C) include with the State plan submitted to the 
                Secretary under section 304 any such comments that 
                represent disagreement with the plan.
    (f) Alternative Entity.--
            (1) In general.--For purposes of complying with subsections 
        (a), (b), and (c), a State may use any State entity (including 
        a State council, State workforce development board, combination 
        of regional workforce development boards, or similar entity) 
        that--
                    (A) is in existence on December 31, 1997;
                    (B)(i) is established pursuant to section 122 or 
                title VII of the Job Training Partnership Act (29 
                U.S.C. 1532 or 1792 et seq.), as in effect on December 
                31, 1997; or
                    (ii) is substantially similar to the statewide 
                partnership described in subsections (a), (b), and (c); 
                and
                    (C) includes representatives of business in the 
                State and representatives of labor organizations in the 
                State.
            (2) References.--References in this Act to a statewide 
        partnership shall be considered to include such an entity.

SEC. 304. STATE PLAN.

    (a) In General.--For a State to be eligible to receive an allotment 
under section 302, the Governor of the State shall submit to the 
Secretary for approval a single comprehensive State plan (referred to 
in this title as the ``State plan'') that outlines a 3-year strategy 
for the statewide workforce investment system of the State and that 
meets the requirements of section 303 and this section.
    (b) Contents.--The State plan shall include--
            (1) a description of the statewide partnership described in 
        section 303 used in developing the plan;
            (2) a description of State-imposed requirements for the 
        statewide workforce investment system;
            (3) a description of the State performance measures 
        developed for the workforce investment activities to be carried 
        out through the system, that includes information identifying 
        the State performance measures, established in accordance with 
        section 321(b);
            (4) information describing--
                    (A) the needs of the State with regard to current 
                and projected employment opportunities;
                    (B) the job skills necessary to obtain the needed 
                employment opportunities;
                    (C) the economic development needs of the State; 
                and
                    (D) the type and availability of workforce 
                investment activities in the State;
            (5) an identification of local areas designated in the 
        State, including a description of the process used for the 
        designation of such areas, which shall--
                    (A) ensure a linkage between participants in 
                workforce investment activities funded under this 
                subtitle, and local employment opportunities;
                    (B) ensure that a significant portion of the 
                population that lives in the local area also works in 
                the same local area;
                    (C) ensure cooperation and coordination of 
                activities between neighboring local areas; and
                    (D) take into consideration State economic 
                development areas;
            (6) an identification of the criteria for recognition of 
        chief elected officials who will carry out the policy, 
        planning, and other responsibilities authorized for the 
        officials in this title in the local areas identified under 
        paragraph (5);
            (7) an identification of criteria for the appointment of 
        members of local partnerships based on the requirements of 
        section 308;
            (8) the detailed plans required under section 8 of the 
        Wagner-Peyser Act;
            (9) a description of the measures that will be taken by the 
        State to assure coordination of and avoid duplication among--
                    (A) workforce investment activities authorized 
                under this subtitle;
                    (B) other activities authorized under this title;
                    (C) activities authorized under title I or II;
                    (D) programs authorized under the Wagner-Peyser Act 
                (29 U.S.C. 49 et seq.), title I of the Rehabilitation 
                Act of 1973 (29 U.S.C. 720 et seq.), part A of title IV 
                of the Social Security Act (42 U.S.C. 601 et seq.), and 
                section 6(d) of the Food Stamp Act of 1977 (7 U.S.C. 
                2015(d)), and activities authorized under title V of 
                the Older Americans Act of 1965 (42 U.S.C. 3056 et 
                seq.);
                    (E) work programs authorized under section 6(o) of 
                the Food Stamp Act of 1977 (7 U.S.C. 2015(o));
                    (F) activities authorized under chapter 2 of title 
                II of the Trade Act of 1974 (19 U.S.C. 2271 et seq.);
                    (G) activities authorized under chapter 41 of title 
                38, United States Code;
                    (H) training activities carried out by the 
                Department of Housing and Urban Development; and
                    (I) programs authorized under State unemployment 
                compensation laws (in accordance with applicable 
                Federal law);
            (10) a description of the process used by the State, 
        consistent with section 303(e)(2), to provide an opportunity 
        for public comment, including comment by representatives of 
        labor organizations and businesses, and input into the 
        development of the State plan, prior to submission of the plan;
            (11) a description of the process for the public to comment 
        on members of the local partnerships;
            (12) a description of the length of terms and appointment 
        processes for members of the statewide partnership and local 
        partnerships in the State;
            (13) information identifying how the State will leverage 
        any funds the State receives under this subtitle with other 
        private and Federal resources;
            (14) assurances that the State will provide, in accordance 
        with section 374, for fiscal control and fund accounting 
        procedures that may be necessary to ensure the proper 
        disbursement of, and accounting for, funds paid to the State 
        through the allotment made under section 302;
            (15) if appropriate, a description of a within-State 
        allocation formula--
                    (A) that is based on factors relating to excess 
                poverty in local areas or excess unemployment above the 
                State average in local areas; and
                    (B) through which the State may distribute the 
                funds the State receives under this subtitle for adult 
                employment and training activities or youth activities 
                to local areas;
            (16) an assurance that the funds made available to the 
        State through the allotment made under section 302 will 
        supplement and not supplant other public funds expended to 
        provide activities described in this subtitle;
            (17) information indicating--
                    (A) how the services of one-stop partners in the 
                State will be provided through the one-stop customer 
                service system;
                    (B) how the costs of such services and the 
                operating costs of the system will be funded; and
                    (C) how the State will assist in the development 
                and implementation of the operating agreement described 
                in section 311(c);
            (18) information specifying the actions that constitute a 
        conflict of interest prohibited in the State for purposes of 
        section 308(g)(2)(B);
            (19) a description of a core set of consistently defined 
        data elements for reporting on the activities carried out 
        through the one-stop customer service system in the State;
            (20) with respect to employment and training activities 
        funded under this subtitle--
                    (A) information describing the employment and 
                training activities that will be carried out with the 
                funds the State receives under this subtitle, 
                describing how the State will provide rapid response 
                activities to dislocated workers, and designating an 
                identifiable State rapid response dislocated worker 
                unit, to be funded under section 306(a)(2) to carry out 
                statewide rapid response activities, and an assurance 
                that veterans will be afforded services under this 
                subtitle to the extent practicable;
                    (B) information describing the State strategy for 
                development of a fully operational statewide one-stop 
                customer service system as described in section 315(b), 
                including--
                            (i) criteria for use by chief elected 
                        officials and local partnerships, for 
                        designating or certifying one-stop customer 
                        service center operators, appointing one-stop 
                        partners, and conducting oversight with respect 
                        to the one-stop customer service system, for 
                        each local area; and
                            (ii) the steps that the State will take 
                        over the 3 years covered by the plan to ensure 
                        that all publicly funded labor exchange 
                        services described in section 315(c)(2) or the 
                        Wagner-Peyser Act (29 U.S.C. 49 et seq.), will 
                        be available through the one-stop customer 
                        service system of the State;
                    (C) information describing the criteria used by the 
                local partnership in the development of the local plan 
                described in section 309; and
                    (D) information describing the procedures the State 
                will use to identify eligible providers of training 
                services, as required under this subtitle; and
            (21) with respect to youth activities funded under this 
        subtitle, information--
                    (A) describing the youth activities that will be 
                carried out with the funds the State receives under 
                this subtitle;
                    (B) identifying the criteria to be used by the 
                local partnership in awarding grants and contracts 
                under section 313 for youth activities;
                    (C) identifying the types of criteria the Governor 
                and local partnerships will use to identify effective 
                and ineffective youth activities and eligible providers 
                of such activities; and
                    (D) describing how the State will coordinate the 
                youth activities carried out in the State under this 
                subtitle with the services provided by Job Corps 
                centers in the State.
    (c) Plan Submission and Approval.--A State plan submitted to the 
Secretary under this section by a Governor shall be considered to be 
approved by the Secretary at the end of the 60-day period beginning on 
the day the Secretary receives the plan, unless the Secretary makes a 
written determination, during the 60-day period, that--
            (1) the plan is inconsistent with the provisions of this 
        title;
            (2) in the case of the portion of the plan described in 
        section 8(a) of the Wagner-Peyser Act (29 U.S.C. 49g(a)), the 
        portion does not satisfy the criteria for approval provided in 
        section 8(d) of such Act); or
            (3) the levels of performance have not been agreed to 
        pursuant to section 321(b)(4).
    (d) Modifications to Initial Plan.--A State may submit, for 
approval by the Secretary, substantial modifications to the State plan 
in accordance with the requirements of this section and section 303, as 
necessary, during the 3-year period of the plan.

       CHAPTER 2--ALLOCATIONS TO LOCAL WORKFORCE INVESTMENT AREAS

SEC. 306. WITHIN STATE ALLOCATIONS.

    (a) Reservations for State Activities.--
            (1) Adult employment and training activities, dislocated 
        worker employment and training activities, and youth 
        activities.--The Governor of a State shall reserve not more 
        than 15 percent of each of the amounts allotted to the State 
        under paragraphs (1)(B), (2)(B), and (3)(C)(ii) of section 
        302(b) for a fiscal year for statewide workforce investment 
        activities described in subsections (b)(2) and (c) of section 
        314.
            (2) Statewide rapid response activities.--The Governor of 
        the State shall reserve not more than 25 percent of the total 
        amount allotted to the State under section 302(b)(2)(B) for a 
        fiscal year for statewide rapid response activities described 
        in section 314(b)(1).
    (b) Within State Allocation.--
            (1) Allocation.--The Governor of the State shall allocate 
        to the local areas the funds that are allotted to the State 
        under section 302(b) and are not reserved under subsection (a) 
        for the purpose of providing employment and training activities 
        to eligible participants pursuant to section 315 and youth 
        activities to eligible participants pursuant to section 316.
            (2) Methods.--The State, acting in accordance with the 
        State plan, and after consulting with chief elected officials 
        in the local areas, shall allocate--
                    (A) the funds that are allotted to the State for 
                adult employment and training activities under section 
                302(b)(1)(B) and are not reserved under subsection 
                (a)(1), in accordance with paragraph (3) or (4);
                    (B) the funds that are allotted to the State for 
                dislocated worker employment and training activities 
                under section 302(b)(2)(B) and are not reserved under 
                paragraph (1) or (2) of subsection (a), in accordance 
                with paragraph (3); and
                    (C) the funds that are allotted to the State for 
                youth activities under section 302(b)(3)(C)(ii) and are 
                not reserved under subsection (a)(1), in accordance 
                with paragraph (3) or (4).
            (3) Adult employment and training activities, dislocated 
        worker employment and training activities, and youth activities 
        formula allocations.--
                    (A) Adult employment and training activities.--
                            (i) Allocation.--In allocating the funds 
                        described in paragraph (2)(A) to local areas, a 
                        State may allocate--
                                    (I) 33\1/3\ percent of the funds on 
                                the basis described in section 
                                302(b)(1)(B)(ii)(I);
                                    (II) 33\1/3\ percent of the funds 
                                on the basis described in section 
                                302(b)(1)(B)(ii)(II); and
                                    (III) 33\1/3\ percent of the funds 
                                on the basis described in clauses 
                                (ii)(III) and (iii) of section 
                                302(b)(1)(B).
                            (ii) Minimum percentage.--No local area 
                        shall receive an allocation percentage for a 
                        fiscal year that is less than 90 percent of the 
                        average allocation percentage of the local area 
                        (or the service delivery area that most closely 
                        corresponds to the local area) for the 2 
                        preceding fiscal years. Amounts necessary for 
                        increasing such allocations to local areas to 
                        comply with the preceding sentence shall be 
                        obtained by ratably reducing the allocations to 
                        be made to other local areas under this 
                        subparagraph.
                            (iii) Definition.--The term ``allocation 
                        percentage'', used with respect to fiscal year 
                        1999 or a subsequent fiscal year, means a 
                        percentage of the funds referred to in clause 
                        (i), received through an allocation made under 
                        this subparagraph, for the fiscal year. The 
                        term, used with respect to fiscal year 1998, 
                        means the percentage of the amounts allocated 
                        to service delivery areas under section 202(b) 
                        of the Job Training Partnership Act (29 U.S.C. 
                        1602(b)) (as in effect on the day before the 
                        date of enactment of this Act) received under 
                        such section by the service delivery area that 
                        most closely corresponds to the local area 
                        involved for fiscal year 1998.
                    (B) Dislocated worker employment and training 
                activities.--
                            (i) Formula.--In allocating the funds 
                        described in paragraph (2)(B) to local areas, a 
                        State shall allocate the funds based on an 
                        allocation formula prescribed by the Governor 
                        of the State. Such formula may be amended by 
                        the Governor not more than once for each 
                        program year. Such formula shall utilize the 
                        most appropriate information available to the 
                        Governor to distribute amounts to address the 
                        State's worker readjustment assistance needs.
                            (ii) Information.--The information 
                        described in clause (i) shall include--
                                    (I) insured unemployment data;
                                    (II) unemployment concentrations;
                                    (III) plant closing and mass layoff 
                                data;
                                    (IV) declining industries data;
                                    (V) farmer-rancher economic 
                                hardship data; and
                                    (VI) long-term unemployment data.
                    (C) Youth activities.--
                            (i) Allocation.--In allocating the funds 
                        described in paragraph (2)(C) to local areas, a 
                        State may allocate--
                                    (I) 33\1/3\ percent of the funds on 
                                the basis described in section 
                                302(b)(3)(C)(ii)(I);
                                    (II) 33\1/3\ percent of the funds 
                                on the basis described in section 
                                302(b)(3)(C)(ii)(II); and
                                    (III) 33\1/3\ percent of the funds 
                                on the basis described in clauses 
                                (ii)(III) and (iii) of section 
                                302(b)(3)(C).
                            (ii) Minimum percentage.--No local area 
                        shall receive an allocation percentage for a 
                        fiscal year that is less than 90 percent of the 
                        average allocation percentage of the local area 
                        (or the service delivery area that most closely 
                        corresponds to the local area) for the 2 
                        preceding fiscal years. Amounts necessary for 
                        increasing such allocations to local areas to 
                        comply with the preceding sentence shall be 
                        obtained by ratably reducing the allocations to 
                        be made to other local areas under this 
                        subparagraph.
                            (iii) Definition.--The term ``allocation 
                        percentage'', used with respect to fiscal year 
                        1999 or a subsequent fiscal year, means a 
                        percentage of the funds referred to in clause 
                        (i), received through an allocation made under 
                        this subparagraph, for the fiscal year. The 
                        term, used with respect to fiscal year 1998, 
                        means the percentage of the amounts allocated 
                        to service delivery areas under sections 252(b) 
                        and 262(b) of the Job Training Partnership Act 
                        (29 U.S.C. (29 U.S.C. 1631(b), 1642(b)) (as in 
                        effect on the day before the date of enactment 
                        of this Act) received under such section by the 
                        service delivery area that most closely 
                        corresponds to the local area involved for 
                        fiscal year 1998.
                    (D) Application.--For purposes of carrying out 
                subparagraphs (A), (B), and (C), and subparagraphs (A) 
                and (B) of paragraph (4)--
                            (i) references in section 302(b) to a State 
                        shall be deemed to be references to a local 
                        area;
                            (ii) references in section 302(b) to all 
                        States shall be deemed to be references to all 
                        local areas in the State involved;
                            (iii) except as described in clauses (i) 
                        and (ii), references in paragraphs (1) and (3) 
                        of section 302(b) to the term ``excess number'' 
                        shall be considered to be references to the 
                        term as defined in section 302(b)(1); and
                            (iv) except as described in clause (i), a 
                        reference in section 302(b)(2) to the term 
                        ``excess number'' shall be considered to be a 
                        reference to the term as defined in such 
                        section.
            (4) Adult employment and training and youth discretionary 
        allocations.--
                    (A) Adult employment and training activities.--In 
                lieu of making the allocation described in paragraph 
                (3)(A), in allocating the funds described in paragraph 
                (2)(A) to local areas, a State may distribute--
                            (i) a portion equal to not less than 70 
                        percent of the funds in accordance with 
                        paragraph (3)(A); and
                            (ii) the remaining portion of the funds on 
                        the basis of a formula that--
                                    (I) incorporates additional factors 
                                (other than the factors described in 
                                paragraph (3)(A)) relating to excess 
                                poverty in local areas or excess 
                                unemployment above the State average in 
                                local areas; and
                                    (II) was developed by the statewide 
                                partnership and approved by the 
                                Secretary as part of the State plan.
                    (B) Youth activities.--In lieu of making the 
                allocation described in paragraph (3)(C), in allocating 
                the funds described in paragraph (2)(C) to local areas, 
                a State may distribute--
                            (i) a portion equal to not less than 70 
                        percent of the funds in accordance with 
                        paragraph (3)(C); and
                            (ii) the remaining portion of the funds on 
                        the basis of a formula that--
                                    (I) incorporates additional factors 
                                (other than the factors described in 
                                paragraph (3)(C)) relating to excess 
                                youth poverty in local areas or excess 
                                unemployment above the State average in 
                                local areas; and
                                    (II) was developed by the statewide 
                                partnership and approved by the 
                                Secretary as part of the State plan.
            (5) Limitation.--
                    (A) In general.--Of the amount allocated to a local 
                area under this subsection for a fiscal year--
                            (i) not more than 15 percent of the amount 
                        allocated under paragraph (3)(A) or (4)(A);
                            (ii) not more than 15 percent of the amount 
                        allocated under paragraph (3)(B); and
                            (iii) not more than 15 percent of the 
                        amount allocated under paragraph (3)(C) or 
                        (4)(B),
                may be used by the local partnership for the 
                administrative cost of carrying out local workforce 
                investment activities described in section 315 or 316.
                    (B) Use of funds.--Funds made available for 
                administrative costs under subparagraph (A) may be used 
                for the administrative cost of any of the local 
                workforce investment activities described in sections 
                315 and 316, regardless of whether the funds were 
                allocated under the provisions described in clause (i), 
                (ii), or (iii) of subparagraph (A).
                    (C) Regulations.--The Secretary, after consulting 
                with the Governors, shall develop and issue regulations 
                that define the term ``administrative cost'' for 
                purposes of this title.
            (6) Transfer authority.--A local partnership may transfer, 
        if such a transfer is approved by the Governor, not more than 
        20 percent of the funds allocated to the local area under 
        paragraph (3)(A) or (4)(A), and 20 percent of the funds 
        allocated to the local area under paragraph (3)(B), for a 
        fiscal year between--
                    (A) adult employment and training activities; and
                    (B) dislocated worker employment and training 
                activities.
            (7) Fiscal authority.--
                    (A) Fiscal agent.--The chief elected official in a 
                local area shall serve as the fiscal agent for, and 
                shall be liable for any misuse of, the funds allocated 
                to the local area under this section, unless the chief 
                elected official reaches an agreement with the Governor 
                for the Governor to act as the fiscal agent and bear 
                such liability.
                    (B) Disbursal.--The fiscal agent shall disburse 
                such funds for workforce investment activities at the 
                direction of the local partnership, pursuant to the 
                requirements of this title, if the direction does not 
                violate a provision of this Act. The fiscal agent shall 
                disburse funds immediately on receiving such direction 
                from the local partnership.

SEC. 307. LOCAL WORKFORCE INVESTMENT AREAS.

    (a) Designation of Areas.--
            (1) In general.--Except as provided in subsection (b) and 
        paragraph (2), the Governor shall designate local workforce 
        investment areas in the State, in accordance with the State 
        plan requirements described in section 304(b)(5).
            (2) Automatic designation.--
                    (A) In general.--The Governor of the State shall 
                approve a request for designation as a local area--
                            (i) from any unit of general local 
                        government with a population of 500,000 or 
                        more, if the designation meets the State plan 
                        requirements described in section 304(b)(5);
                            (ii) of the area served by a rural 
                        concentrated employment program grant recipient 
                        of demonstrated effectiveness that served as a 
                        service delivery area under the Job Training 
                        Partnership Act, if the grant recipient has 
                        submitted the request and if the designation 
                        meets the State plan requirements described in 
                        section 304(b)(5); and
                            (iii) of an area that served as a service 
                        delivery area under section 101(a)(4)(A)(ii) of 
                        the Job Training Partnership Act (as in effect 
                        on the day before the date of enactment of this 
                        Act) in a State that has a population of 
                        1,100,000 or less and a population density 
                        greater than 900 persons per square mile, if 
                        the designation meets the State plan 
                        requirements described in section 304(b)(5).
                    (B) Large counties.--A county with a population of 
                500,000 or more may request such designation only with 
                the agreement of the political subdivisions within the 
                county with populations of 200,000 or more.
                    (C) Large political subdivisions.--A single unit of 
                general local government with a population of 200,000 
                or more that is a service delivery area under the Job 
                Training Partnership Act on the date of enactment of 
                this Act, and that is not designated as a local area by 
                the Governor under paragraph (1), shall have an 
                automatic right to submit an appeal regarding 
                designation to the Secretary. In conducting the appeal, 
                the Secretary may determine that the unit of general 
                local government shall be designated as a local area 
                under paragraph (1), on determining that the programs 
                of the service delivery area have demonstrated 
                effectiveness, if the designation of the unit meets the 
                State plan requirements described in section 304(b)(5).
            (3) Permanent designation.--Once the boundaries for a local 
        area are determined under this section in accordance with the 
        State plan, the boundaries shall not change except with the 
        approval of the Governor.
    (b) Small States.--The Governor of any State determined to be 
eligible to receive a minimum allotment under paragraph (1) or (3) of 
section 302(b), in accordance with section 302(b)(1)(B)(iv)(II), for 
the first year covered by the State plan, or of a State that is a 
single State service delivery area under the Job Training Partnership 
Act (29 U.S.C. 1501 et seq.) as of July 1, 1998, may designate the 
State as a single State local area for the purposes of this title. The 
Governor shall identify the State as a local area under section 
304(b)(5), in lieu of designating local areas as described in 
subparagraphs (A), (B), and (C) of section 304(b)(5).

SEC. 308. LOCAL WORKFORCE INVESTMENT PARTNERSHIPS AND YOUTH 
              PARTNERSHIPS.

    (a) Establishment of Local Partnership.--There shall be established 
in each local area of a State, and certified by the Governor of the 
State, a local workforce investment partnership.
    (b) Role of Local Partnership.--The primary role of the local 
partnership shall be to set policy for the portion of the statewide 
workforce investment system within the local area, including--
            (1) ensuring that the activities authorized under this 
        subtitle and carried out in the local area meet local 
        performance measures;
            (2) ensuring that the activities meet the needs of 
        employers and jobseekers; and
            (3) ensuring the continuous improvement of the system.
    (c) Membership of Local Partnership.--
            (1) State criteria.--The Governor of the State shall 
        establish criteria for the appointment of members of the local 
        partnerships for local areas in the State in accordance with 
        the requirements of paragraph (2). Information identifying such 
        criteria shall be included in the State plan, as described in 
        section 304(b)(7).
            (2) Composition.--Such criteria shall require, at a 
        minimum, that the membership of each local partnership--
                    (A) shall include--
                            (i) a majority of members who--
                                    (I) are representatives of business 
                                in the local area;
                                    (II) are owners of businesses, 
                                chief executives or operating officers 
                                of private businesses, and other 
                                business executives or employers with 
                                optimum policymaking or hiring 
                                authority;
                                    (III) represent businesses with 
                                employment opportunities that reflect 
                                the employment opportunities of the 
                                local area; and
                                    (IV) are appointed from among 
                                individuals nominated by local business 
                                organizations and business trade 
                                associations;
                            (ii) chief officers representing local 
                        postsecondary educational institutions, 
                        representatives of vocational education 
                        providers, and representatives of adult 
                        education providers;
                            (iii) chief officers representing labor 
                        organizations (for a local area in which such 
                        representatives reside), nominated by local 
                        labor federations, or (for a local area in 
                        which such representatives do not reside) other 
                        representatives of employees; and
                            (iv) chief officers representing economic 
                        development agencies, including private sector 
                        economic development entities;
                    (B) may include chief officers who have 
                policymaking authority, from one-stop partners who have 
                entered into an operating agreement described in 
                section 311(c) to participate in the one-stop customer 
                service system in the local area; and
                    (C) may include such other individuals or 
                representatives of entities as the chief elected 
                official in the local area may determine to be 
                appropriate.
            (3) Chairperson.--The local partnership shall elect a 
        chairperson from among the members of the partnership described 
        in paragraph (2)(A)(i).
    (d) Appointment and Certification of Local Partnership.--
            (1) Appointment of local partnership members and assignment 
        of responsibilities.--
                    (A) In general.--The chief elected official in a 
                local area is authorized to appoint the members of the 
                local partnership for such area, in accordance with the 
                State criteria established under subsection (c).
                    (B) Multiple units of local government in area.--
                            (i) In general.--In a case in which a local 
                        area includes more than 1 unit of general local 
                        government, the chief elected officials of such 
                        units may execute an agreement that specifies 
                        the respective roles of the individual chief 
                        elected officials--
                                    (I) in the appointment of the 
                                members of the local partnership from 
                                the individuals nominated or 
                                recommended to be such members in 
                                accordance with the criteria 
                                established under subsection (c); and
                                    (II) in carrying out any other 
                                responsibilities assigned to such 
                                officials under this subtitle.
                            (ii) Lack of agreement.--If, after a 
                        reasonable effort, the chief elected officials 
                        are unable to reach agreement as provided under 
                        clause (i), the Governor may appoint the 
                        members of the local partnership from 
                        individuals so nominated or recommended.
                    (C) Concentrated employment programs.--In the case 
                of a local area designated in accordance with section 
                307(a)(2)(A)(ii), the governing body of the 
                concentrated employment program involved shall act in 
                consultation with the chief elected official in the 
                local area to appoint members of the local partnership, 
                in accordance with the State criteria established under 
                subsection (c), and to carry out any other 
                responsibility relating to workforce investment 
                activities assigned to such official under this Act.
            (2) Certification.--
                    (A) In general.--The Governor shall annually 
                certify 1 local partnership for each local area in the 
                State.
                    (B) Criteria.--Such certification shall be based on 
                criteria established under subsection (c) and, for a 
                second or subsequent certification, the extent to which 
                the local partnership has ensured that workforce 
                investment activities carried out in the local area 
                have enabled the local area to meet the local 
                performance measures required under section 321(c).
                    (C) Failure to achieve certification.--Failure of a 
                local partnership to achieve certification shall result 
                in reappointment and certification of another local 
                partnership for the local area pursuant to the process 
                described in paragraph (1) and this paragraph.
            (3) Decertification.--
                    (A) In general.--Notwithstanding paragraph (2), the 
                Governor may decertify a local partnership, at any time 
                after providing notice and an opportunity for comment, 
                for--
                            (i) fraud or abuse; or
                            (ii) failure to carry out the functions 
                        specified for the local partnership in any of 
                        paragraphs (1), (2), (4), (5), and (6) of 
                        subsection (e).
                    (B) Plan.--If the Governor decertifies a local 
                partnership for a local area, the Governor may require 
                that a local partnership be appointed and certified for 
                the local area pursuant to a plan developed by the 
                Governor in consultation with the chief elected 
                official in the local area and in accordance with the 
                criteria established under subsection (c).
            (4) Exception.--Notwithstanding subsection (c) and 
        paragraphs (1) and (2), if a State described in section 307(b) 
        designates the State as a local area in the State plan, the 
        Governor may designate the statewide partnership described in 
        section 303 to carry out any of the functions described in 
        subsection (e).
    (e) Functions of Local Partnership.--The functions of the local 
partnership shall include--
            (1) developing and submitting a local plan as described in 
        section 309 in partnership with the appropriate chief elected 
        official;
            (2) appointing, certifying, or designating one-stop 
        partners and one-stop customer service center operators, 
        pursuant to the criteria specified in the local plan;
            (3) promoting the participation of private sector employers 
        in the statewide workforce investment system, and ensuring the 
        effective provision through the system of connecting, 
        brokering, and coaching activities, through intermediaries such 
        as the entities operating the one-stop customer service center 
        in the local area or through other organizations, to assist 
        such employers in meeting hiring needs;
            (4) conducting oversight with respect to the one-stop 
        customer service system;
            (5) modifying the list of eligible providers of training 
        services pursuant to subsections (b)(3)(B) and (c)(2)(B) of 
        section 312;
            (6) setting local performance measures pursuant to section 
        312(b)(2)(D)(ii);
            (7) analyzing and identifying--
                    (A) current and projected local employment 
                opportunities; and
                    (B) the skills necessary to obtain such local 
                employment opportunities;
            (8) coordinating the workforce investment activities 
        carried out in the local area with economic development 
        strategies and developing other employer linkages with such 
        activities; and
            (9) assisting the Governor in developing the statewide 
        labor market information system described in section 15(e) of 
        the Wagner-Peyser Act.
    (f) Sunshine Provision.--The local partnership shall make available 
to the public, on a regular basis through open meetings, information 
regarding the activities of the local partnership, including 
information regarding membership, the appointment of one-stop partners, 
the designation and certification of one-stop customer service center 
operators, and the award of grants and contracts to eligible providers 
of youth activities.
    (g) Other Activities of Local Partnership.--
            (1) Limitation.--
                    (A) In general.--Except as provided in subparagraph 
                (B), no local partnership may directly carry out or 
                enter into a contract for a training service described 
                in section 315(c)(3).
                    (B) Waivers.--The Governor of the State in which 
                the local partnership is located may grant to the local 
                partnership a written waiver of the prohibition set 
                forth in subparagraph (A), if the local partnership 
                provides sufficient evidence that a private or public 
                entity is not available to provide the training service 
                and that the activity is necessary to provide an 
                employment opportunity described in the local plan 
                described in section 309.
            (2) Conflict of interest.--No member of a local partnership 
        may--
                    (A) vote on a matter under consideration by the 
                local partnership--
                            (i) regarding the provision of services by 
                        such member (or by an organization that such 
                        member represents); or
                            (ii) that would provide direct financial 
                        benefit to such member or the immediate family 
                        of such member; or
                    (B) engage in any other activity determined by the 
                Governor to constitute a conflict of interest as 
                specified in the State plan.
    (h) Technical Assistance.--If a local area fails to meet 
established State or local performance measures, the Governor shall 
provide technical assistance to the local partnership involved to 
improve the performance of the local area.
    (i) Youth Partnership.--
            (1) Establishment.--There shall be established in each 
        local area of a State, a youth partnership appointed by the 
        local partnership, in cooperation with the chief elected 
        official, in the local area.
            (2) Membership.--The membership of each youth partnership--
                    (A) shall include--
                            (i) 1 or more members of the local 
                        partnership;
                            (ii) representatives of youth service 
                        agencies, including juvenile justice agencies;
                            (iii) representatives of local public 
                        housing authorities;
                            (iv) parents of youth seeking assistance 
                        under this subtitle;
                            (v) individuals, including former 
                        participants, and representatives of 
                        organizations, that have experience relating to 
                        youth activities;
                            (vi) representatives of businesses in the 
                        local area that employ youth; and
                            (vii) representatives of the Job Corps, as 
                        appropriate; and
                    (B) may include such other individuals as the 
                chairperson of the local partnership, in cooperation 
                with the chief elected official, determines to be 
                appropriate.
            (3) Duties.--The duties of the youth partnership include--
                    (A) the development of the portions of the local 
                plan relating to youth, as determined by the 
                chairperson of the local partnership;
                    (B) subject to the approval of the local 
                partnership, awarding grants and contracts to, and 
                conducting oversight with respect to, eligible 
                providers of youth activities, as described in section 
                313, in the local area;
                    (C) coordinating youth activities in the local 
                area; and
                    (D) other duties determined to be appropriate by 
                the chairperson of the local partnership.
    (j) Alternative Entity.--
            (1) In general.--For purposes of complying with subsections 
        (a), (c), and (d), and paragraphs (1) and (2) of subsection 
        (i), a State may use any local entity (including a local 
        council, regional workforce development board, or similar 
        entity) that--
                    (A) is established to serve the local area (or the 
                service delivery area that most closely corresponds to 
                the local area);
                    (B) is in existence on December 31, 1997;
                    (C) (i) is established pursuant to section 102 of 
                the Job Training Partnership Act (29 U.S.C. 1512), as 
                in effect on December 31, 1997; or
                    (ii) is substantially similar to the local and 
                youth partnerships described in subsections (a), (c), 
                and (d), and paragraphs (1) and (2) of subsection (i); 
                and
                    (D) includes--
                            (i) representatives of business in the 
                        local area; and
                            (ii)(I) representatives of labor 
                        organizations in the local area, for a local 
                        area in which such representatives reside; or
                            (II) for a local area in which such 
                        representatives do not reside, other 
                        representatives of employees in the local area.
            (2) References.--References in this Act to a local 
        partnership or a youth partnership shall be considered to 
        include such an entity.

SEC. 309. LOCAL PLAN.

    (a) In General.--Each local partnership shall develop and submit to 
the Governor a comprehensive 3-year local plan (referred to in this 
title as the ``local plan''), in partnership with the appropriate chief 
elected official. The local plan shall be consistent with the State 
plan.
    (b) Contents.--The local plan shall include--
            (1) an identification of the needs of the local area with 
        regard to current and projected employment opportunities;
            (2) an identification of the job skills necessary to obtain 
        such employment opportunities;
            (3) a description of the activities to be used under this 
        subtitle to link local employers and local jobseekers;
            (4) an identification and assessment of the type and 
        availability of adult and dislocated worker employment and 
        training activities in the local area;
            (5) an identification of successful eligible providers of 
        youth activities in the local area;
            (6) a description of the measures that will be taken by the 
        local area to assure coordination of and avoid duplication 
        among the programs and activities described in section 
        304(b)(9);
            (7) a description of the manner in which the local 
        partnership will coordinate activities carried out under this 
        subtitle in the local area with such activities carried out in 
        neighboring local areas;
            (8) a description of the competitive process to be used to 
        award grants and contracts in the local area for activities 
        carried out under this subtitle;
            (9) information describing local performance measures for 
        the local area that are based on the performance measures in 
        the State plan;
            (10) in accordance with the State plan, a description of 
        the criteria that the chief elected official in the local area 
        and the local partnership will use to appoint, designate, or 
        certify, and to conduct oversight with respect to, one-stop 
        customer service center systems in the local area;
            (11) a description of the process used by the local 
        partnership, consistent with subsection (c), to provide an 
        opportunity for public comment, including comment by 
        representatives of labor organizations and businesses, and 
        input into the development of the local plan, prior to 
        submission of the plan; and
            (12) such other information as the Governor may require.
    (c) Process.--Prior to the date on which the local partnership 
submits a local plan under this section, the local partnership shall--
            (1) make available copies of a proposed local plan to the 
        public;
            (2) allow members of the local partnership and members of 
        the public, including representatives of labor organizations 
        and businesses, to submit comments on the proposed local plan 
        to the local partnership, not later than the end of the 30-day 
        period beginning on the date on which the proposed local plan 
        is made available; and
            (3) include with the local plan submitted to the Governor 
        under this section any such comments that represent 
        disagreement with the plan.
    (d) Plan Submission and Approval.--A local plan submitted to the 
Governor under this section shall be considered to be approved by the 
Governor at the end of the 60-day period beginning on the day the 
Governor receives the plan, unless the Governor makes a written 
determination during the 60-day period that--
            (1) deficiencies in activities carried out under this 
        subtitle have been identified, through audits conducted under 
        section 374 or otherwise, and the local area has not made 
        acceptable progress in implementing corrective measures to 
        address the deficiencies; or
            (2) the plan does not comply with this title.
    (e) Lack of Agreement.--If the local partnership and the 
appropriate chief elected official in the local area cannot agree on 
the local plan after making a reasonable effort, the Governor may 
develop the local plan.

        CHAPTER 3--WORKFORCE INVESTMENT ACTIVITIES AND PROVIDERS

SEC. 311. IDENTIFICATION AND OVERSIGHT OF ONE-STOP PARTNERS AND ONE-
              STOP CUSTOMER SERVICE CENTER OPERATORS.

    (a) In General.--Consistent with the State plan, the chief elected 
official and the local partnership shall develop and implement 
operating agreements described in subsection (c) to appoint one-stop 
partners, shall designate or certify one-stop customer service center 
operators, and shall conduct oversight with respect to the one-stop 
customer service system, in the local area.
    (b) One-Stop Partners.--
            (1) Designated partners.--
                    (A) In general.--Each entity that carries out a 
                program, services, or activities described in 
                subparagraph (B) shall make available to participants, 
                through a one-stop customer service center, the 
                services described in section 315(c)(2) that are 
                applicable to such program, and shall participate in 
                the operation of such center as a party to the 
                agreement described in subsection (c), consistent with 
                the requirements of the Federal law in which the 
                program, services, or activities are authorized.
                    (B) Programs; services; activities.--The programs, 
                services, and activities referred to in subparagraph 
                (A) consist of--
                            (i) core services authorized under this 
                        subtitle;
                            (ii) other activities authorized under this 
                        title;
                            (iii) activities authorized under title I 
                        and title II;
                            (iv) programs authorized under the Wagner-
                        Peyser Act (29 U.S.C. 49 et seq.);
                            (v) programs authorized under title I of 
                        the Rehabilitation Act of 1973 (29 U.S.C. 729 
                        et seq.);
                            (vi) programs authorized under section 
                        403(a)(5) of the Social Security Act (42 U.S.C. 
                        603(a)(5)) (as added by section 5001 of the 
                        Balanced Budget Act of 1997);
                            (vii) programs authorized under title V of 
                        the Older Americans Act of 1965 (42 U.S.C. 3056 
                        et seq.);
                            (viii) activities authorized under chapter 
                        2 of title II of the Trade Act of 1974 (19 
                        U.S.C. 2271 et seq.);
                            (ix) activities authorized under chapter 41 
                        of title 38, United States Code;
                            (x) training activities carried out by the 
                        Department of Housing and Urban Development; 
                        and
                            (xi) programs authorized under State 
                        unemployment compensation laws (in accordance 
                        with applicable Federal law).
            (2) Additional partners.--
                    (A) In general.--In addition to the entities 
                described in paragraph (1), other entities that carry 
                out human resource programs may make available to 
                participants through a one-stop customer service center 
                the services described in section 315(c)(2) that are 
                applicable to such program, and participate in the 
                operation of such centers as a party to the agreement 
                described in subsection (c), if the local partnership 
                and chief elected official involved approve such 
                participation.
                    (B) Programs.--The programs referred to in 
                subparagraph (A) include--
                            (i) programs authorized under part A of 
                        title IV of the Social Security Act;
                            (ii) programs authorized under section 
                        6(d)(4) of the Food Stamp Act of 1977 (7 U.S.C. 
                        2015(d)(4));
                            (iii) work programs authorized under 
                        section 6(o) of the Food Stamp Act of 1977 (7 
                        U.S.C. 2015(o)); and
                            (iv) other appropriate Federal, State, or 
                        local programs, including programs in the 
                        private sector.
    (c) Operating Agreements.--
            (1) In general.--The one-stop customer service center 
        operator selected pursuant to subsection (d) for a one-stop 
        customer service center shall enter into a written agreement 
        with the local partnership and one-stop partners described in 
        subsection (b) concerning the operation of the center. Such 
        agreement shall be subject to the approval of the chief elected 
        official and the local partnership.
            (2) Contents.--The written agreement required under 
        paragraph (1) shall contain--
                    (A) provisions describing--
                            (i) the services to be provided through the 
                        center;
                            (ii) how the costs of such services and the 
                        operating costs of the system will be funded,
                            (iii) methods for referral of individuals 
                        between the one-stop customer service center 
                        operators and the one-stop partners, for the 
                        appropriate services and activities;
                            (iv) the monitoring and oversight of 
                        activities carried out under the agreement; and
                            (v) the duration of the agreement and the 
                        procedures for amending the agreement during 
                        the term of the agreement; and
                    (B) such other provisions, consistent with the 
                requirements of this title, as the parties to the 
                agreement determine to be appropriate.
    (d) One-Stop Customer Service Center Operators.--
            (1) In general.--To be eligible to receive funds made 
        available under this subtitle to operate a one-stop customer 
        service center, an entity shall--
                    (A) be designated or certified as a one-stop 
                customer service center operator, as described in 
                subsection (a); and
                    (B) be a public or private entity, or consortium of 
                entities, of demonstrated effectiveness located in the 
                local area, which entity or consortium may include an 
                institution of higher education (as defined in section 
                481 of the Higher Education Act of 1965 (20 U.S.C. 
                1088), a local employment service office established 
                under the Wagner-Peyser Act (29 U.S.C. 49 et seq.), a 
                local government agency, a private for-profit entity, a 
                private nonprofit entity, or other interested entity, 
                of demonstrated effectiveness.
            (2) Exception.--Elementary schools and secondary schools 
        shall not be eligible for designation or certification as one-
        stop customer service center operators, except that 
        nontraditional public secondary schools and area vocational 
        education schools shall be eligible for such designation or 
        certification.
    (e) Established One-Stop Customer Service Systems.--For a local 
area in which a one-stop customer service system has been established 
prior to the date of enactment of this Act, the local partnership, the 
chief elected official, and the Governor may agree to appoint, 
designate, or certify the one-stop partners and one-stop customer 
service center operators of such system, for purposes of this section.
    (f) Oversight.--The local partnership shall conduct oversight with 
respect to the one-stop customer service center system and may 
terminate for cause the eligibility of such a partner or operator to 
provide activities through or operate a one-stop customer service 
center.

SEC. 312. DETERMINATION AND IDENTIFICATION OF ELIGIBLE PROVIDERS OF 
              TRAINING SERVICES BY PROGRAM.

    (a) General Eligibility Requirements.--
            (1) In general.--Except as provided in subsection (e), to 
        be eligible to receive funds made available under section 306 
        to provide training services described in section 315(c)(3) 
        (referred to in this title as ``training services'') and be 
        identified as an eligible provider of such services, a provider 
        of such services shall meet the requirements of this section.
            (2) Providers.--To be eligible to receive the funds, the 
        provider shall be--
                    (A) a postsecondary educational institution that--
                            (i) is eligible to receive Federal funds 
                        under title IV of the Higher Education Act of 
                        1965 (20 U.S.C. 1070 et seq.); and
                            (ii) provides a program that leads to an 
                        associate degree, baccalaureate degree, or 
                        certificate; or
                    (B) another public or private provider of a 
                program.
    (b) Initial Determination and Identification.--
            (1) Postsecondary educational institutions.--To be eligible 
        to receive funds as described in subsection (a), an institution 
        described in subsection (a)(2)(A) shall submit an application 
        at such time, in such manner, and containing such information 
        as the designated State agency described in subsection (f) may 
        require, after consultation with the local partnerships in the 
        State. On submission of the application, the institution shall 
        automatically be initially eligible to receive such funds for 
        the program described in subsection (a)(2)(A).
            (2) Other providers.--
                    (A) Procedure.--The Governor, in consultation with 
                the local partnerships in the State, shall establish a 
                procedure for determining the initial eligibility of 
                providers described in subsection (a)(2)(B) to receive 
                such funds for specified programs. The procedure shall 
                require a provider of a program to meet minimum 
                acceptable levels of performance based on--
                            (i) performance criteria relating to the 
                        rates, percentages, increases, and costs 
                        described in subparagraph (C) for the program, 
                        as demonstrated using verifiable program-
                        specific performance information described in 
                        subparagraph (C) and submitted to the 
                        designated State agency, as required under 
                        subparagraph (C); and
                            (ii) performance criteria relating to any 
                        characteristics for which local partnerships 
                        request the submission of information under 
                        subparagraph (D) for the program, as 
                        demonstrated using the information submitted.
                    (B) Minimum levels.--The Governor shall--
                            (i) consider, in determining such minimum 
                        levels--
                                    (I) criteria relating to the 
                                economic, geographic, and demographic 
                                factors in the local areas in which the 
                                provider provides the program; and
                                    (II) the characteristics of the 
                                population served by such provider 
                                through the program; and
                            (ii) verify the minimum levels of 
                        performance by using quarterly records 
                        described in section 321.
                    (C) Application.--To be initially eligible to 
                receive funds as described in subsection (a), a 
                provider described in subsection (a)(2)(B) shall submit 
                an application at such time, in such manner, and 
                containing such information as the designated State 
                agency may require, including performance information 
                on--
                            (i) program completion rates for 
                        participants in the applicable program 
                        conducted by the provider;
                            (ii) the percentage of the graduates of the 
                        program placed in unsubsidized employment in an 
                        occupation related to the program conducted;
                            (iii) retention rates of the graduates in 
                        unsubsidized employment--
                                    (I) 6 months after the first day of 
                                the employment; and
                                    (II) 12 months after the first day 
                                of the employment;
                            (iv) the wages received by the graduates 
                        placed in unsubsidized employment after the 
                        completion of participation in the program--
                                    (I) on the first day of the 
                                employment;
                                    (II) 6 months after the first day 
                                of the employment; and
                                    (III) 12 months after the first day 
                                of the employment;
                            (v) where appropriate, the rates of 
                        licensure or certification of the graduates, 
                        attainment of academic degrees or equivalents, 
                        or attainment of other measures of skill; and
                            (vi) program cost per participant in the 
                        program.
                    (D) Additional information.--
                            (i) In general.--In addition to the 
                        performance information described in 
                        subparagraph (C), the local partnerships in the 
                        State involved may require that a provider 
                        submit, to the local partnerships and to the 
                        designated State agency, other performance 
                        information relating to the program to be 
                        initially identified as an eligible provider of 
                        training services, including information 
                        regarding the ability of the provider to 
                        provide continued counseling and support 
                        regarding the workplace to the graduates, for 
                        not less than 12 months after the graduation 
                        involved.
                            (ii) Higher levels of performance 
                        eligibility.--The local partnership may require 
                        higher levels of performance than the minimum 
                        levels established under subparagraph (A)(i) 
                        for initial eligibility to receive funds as 
                        described in subsection (a).
            (3) List of eligible providers by program.--
                    (A) In general.--The designated State agency, after 
                reviewing the performance information described in 
                paragraph (2)(C) and any information required to be 
                submitted under paragraph (2)(D) and using the 
                procedure described in paragraph (2)(B), shall--
                            (i) identify eligible providers of training 
                        services described in subparagraphs (A) and (B) 
                        of subsection (a)(2), including identifying the 
                        programs of the providers through which the 
                        providers may offer the training services; and
                            (ii) compile a list of the eligible 
                        providers, and the programs, accompanied by the 
                        performance information described in paragraph 
                        (2)(C) and any information required to be 
                        submitted under paragraph (2)(D) for each such 
                        provider described in subsection (a)(2)(B).
                    (B) Local modification.--The local partnership may 
                modify such list by reducing the number of eligible 
                providers listed, to ensure that the eligible providers 
                carry out programs that provide skills that enable 
                participants to obtain local employment opportunities.
    (c) Subsequent Eligibility.--
            (1) Information and criteria.--To be eligible to continue 
        to receive funds as described in subsection (a) for a program, 
        a provider shall--
                    (A) submit the performance information described in 
                subsection (b)(2)(C) and any information required to be 
                submitted under subsection (b)(2)(D) annually to the 
                designated State agency at such time and in such manner 
                as the designated State agency may require for the 
                program; and
                    (B) annually meet the performance criteria 
                described in subsection (b)(2)(A) for the program, as 
                demonstrated utilizing quarterly records described in 
                section 321.
            (2) List of eligible providers by program.--
                    (A) In general.--The designated State agency, after 
                reviewing the performance information and any other 
                information submitted under paragraph (1) and using the 
                procedure described in subsection (b)(2)(A), shall 
                identify eligible providers and programs, and compile a 
                list of the providers and programs, as described in 
                subsection (b)(3), accompanied by the performance 
                information and other information for each such 
                provider.
                    (B) Local modification.--The local partnership may 
                modify such list by reducing the number of eligible 
                providers listed, to ensure that the eligible providers 
                carry out programs that provide skills that enable 
                participants to obtain local employment opportunities.
            (3) Availability.--Such list and information shall be made 
        widely available to participants in employment and training 
        activities funded under this subtitle, and to others, through 
        the one-stop customer service system described in section 
        315(b).
    (d) Enforcement.--
            (1) Accuracy of information.--If the designated State 
        agency, after consultation with the local partnership involved, 
        determines that a provider or individual supplying information 
        on behalf of a provider intentionally supplies inaccurate 
        information under this section, the agency shall terminate the 
        eligibility of the provider to receive funds described in 
        subsection (a) for a period of time, but not less than 2 years.
            (2) Compliance with criteria or requirements.--If the 
        designated State agency, after consultation with the local 
        partnership, determines that a provider described in this 
        section or a program of training services carried out by such a 
        provider fails to meet the required performance criteria 
        described in subsection (c)(1)(B) or subsection (e)(2), as 
        appropriate, or materially violates any provision of this 
        title, including the regulations promulgated to implement this 
        title, the agency may terminate the eligibility of the provider 
        to receive funds described in subsection (a) for such program 
        or take such other action as the agency determines to be 
        appropriate.
            (3) Repayment.--Any provider whose eligibility is 
        terminated under paragraph (1) or (2) for a program shall be 
        liable for repayment of funds described in subsection (a) 
        received for the program during any period of noncompliance 
        described in such paragraph.
            (4) Appeal.--The Governor shall establish a procedure for a 
        provider to appeal a determination by the designated State 
        agency that results in termination of eligibility under this 
        subsection. Such procedure shall provide an opportunity for a 
        hearing and prescribe appropriate time limits to ensure prompt 
        resolution of the appeal.
    (e) On-the-Job Training Exception.--
            (1) In general.--Providers of on-the-job training shall not 
        be subject to the requirements of subsections (a) through (c).
            (2) Collection and dissemination of information.--A one-
        stop customer service center operator in a local area shall 
        collect such performance information from on-the-job training 
        providers as the Governor may require, determine whether the 
        providers meet such performance criteria as the Governor may 
        require, and disseminate such information through the one-stop 
        customer service system.
    (f) Administration.--The Governor shall designate a State agency to 
collect and disseminate the performance information described in 
subsection (b)(2)(C) and any information required to be submitted under 
subsection (b)(2)(D) and carry out other duties described in this 
section.

SEC. 313. IDENTIFICATION OF ELIGIBLE PROVIDERS OF YOUTH ACTIVITIES.

    The youth partnership is authorized to award grants and contracts 
on a competitive basis, based on the criteria contained in the State 
plan and local plan, to providers of youth activities, and conduct 
oversight with respect to such providers, in the local area.

SEC. 314. STATEWIDE WORKFORCE INVESTMENT ACTIVITIES.

    (a) In General.--Funds reserved by a Governor for a State--
            (1) under section 306(a)(2) shall be used to carry out the 
        statewide rapid response activities described in subsection 
        (b)(1); and
            (2) under section 306(a)(1)--
                    (A) shall be used to carry out the statewide 
                workforce investment activities described in subsection 
                (b)(2); and
                    (B) may be used to carry out any of the statewide 
                workforce investment activities described in subsection 
                (c),
        regardless of whether the funds were allotted to the State 
        under paragraph (1), (2), or (3) of section 302(b).
    (b) Required Statewide Workforce Investment Activities.--
            (1) Statewide rapid response activities.--A State shall use 
        funds reserved under section 306(a)(2) to carry out statewide 
        rapid response activities, which shall include--
                    (A) provision of rapid response activities, carried 
                out in local areas by the State, working in conjunction 
                with the local partnership and the chief elected 
                official in the local area; and
                    (B) provision of additional assistance to local 
                areas that experience disasters, mass layoffs or plant 
                closings, or other events that precipitate substantial 
                increases in the number of unemployed individuals, 
                carried out in the local areas by the State, working in 
                conjunction with the local partnership and the chief 
                elected official in the local areas.
            (2) Other required statewide workforce investment 
        activities.--A State shall use funds reserved under section 
        306(a)(1) to carry out other statewide workforce investment 
        activities, which shall include--
                    (A) disseminating the list of eligible providers of 
                training services, including eligible providers of 
                nontraditional training services, and the performance 
                information as described in subsections (b) and (c) of 
                section 312, and a list of eligible providers of youth 
                activities described in section 313;
                    (B) conducting evaluations, under section 321(e), 
                of activities authorized in this section, section 315, 
                and section 316, in coordination with the activities 
                carried out under section 368;
                    (C) providing incentive grants to local areas for 
                regional cooperation among local partnerships, for 
                local coordination and nonduplication of activities 
                carried out under this Act, and for comparative 
                performance by local areas on the local performance 
                measures described in section 321(c);
                    (D) providing technical assistance to local areas 
                that fail to meet local performance measures;
                    (E) assisting in the establishment and operation of 
                a one-stop customer service system; and
                    (F) operating a fiscal and management 
                accountability information system under section 321(f).
    (c) Allowable Statewide Workforce Investment Activities.--
            (1) In general.--A State may use funds reserved under 
        section 306(a)(1) to carry out additional statewide workforce 
        investment activities, which may include--
                    (A) subject to paragraph (2), administration by the 
                State of the workforce investment activities carried 
                out under this subtitle;
                    (B) identification and implementation of incumbent 
                worker training programs, which may include the 
                establishment and implementation of an employer loan 
                program;
                    (C) carrying out other activities authorized in 
                section 315 that the State determines to be necessary 
                to assist local areas in carrying out activities 
                described in subsection (c) or (d) of section 315 
                through the statewide workforce investment system; and
                    (D) carrying out, on a statewide basis, activities 
                described in section 316.
            (2) Limitation.--
                    (A) In general.--Of the funds allotted to a State 
                under section 302(b) and reserved under section 
                306(a)(1) for a fiscal year--
                            (i) not more than 5 percent of the amount 
                        allotted under section 302(b)(1);
                            (ii) not more than 5 percent of the amount 
                        allotted under section 302(b)(2); and
                            (iii) not more than 5 percent of the amount 
                        allotted under section 302(b)(3),
                may be used by the State for the administration of 
                statewide workforce investment activities carried out 
                under this section.
                    (B) Use of funds.--Funds made available for 
                administrative costs under subparagraph (A) may be used 
                for the administrative cost of any of the statewide 
                workforce investment activities, regardless of whether 
                the funds were allotted to the State under paragraph 
                (1), (2), or (3) of section 302(b).
    (d) Prohibition.--No funds described in subsection (a) shall be 
used to develop or implement education curricula for school systems in 
the State.

SEC. 315. LOCAL EMPLOYMENT AND TRAINING ACTIVITIES.

    (a) In General.--Funds received by a local area under paragraph 
(3)(A) or (4)(A), as appropriate, of section 306(b), and funds received 
by the local area under section 306(b)(3)(B)--
            (1) shall be used to carry out employment and training 
        activities described in subsection (c) for adults or dislocated 
        workers, as appropriate; and
            (2) may be used to carry out employment and training 
        activities described in subsection (d) for adults or dislocated 
        workers, as appropriate.
    (b) Establishment of One-Stop Customer Service System.--
            (1) In general.--There shall be established in a State that 
        receives an allotment under section 302 a one-stop customer 
        service system, which--
                    (A) shall provide the core services described in 
                subsection (c)(2);
                    (B) shall provide access to training services as 
                described in subsection (c)(3);
                    (C) shall provide access to the activities (if any) 
                carried out under subsection (d); and
                    (D) shall provide access to the information 
                described in section 15 of the Wagner-Peyser Act and 
                all job search, placement, recruitment, and other labor 
                exchange services authorized under the Wagner-Peyser 
                Act (29 U.S.C. 49 et seq.).
            (2) One-stop delivery.--At a minimum, the one-stop customer 
        service system--
                    (A) shall make each of the services described in 
                paragraph (1) accessible at not less than 1 physical 
                customer service center in each local area of the 
                State; and
                    (B) may also make services described in paragraph 
                (1) available--
                            (i) through a network of customer service 
                        centers that can provide 1 or more of the 
                        services described in paragraph (1) to such 
                        individuals; and
                            (ii) through a network of eligible one-stop 
                        partners--
                                    (I) in which each partner provides 
                                1 or more of the services to such 
                                individuals and is accessible at a 
                                customer service center that consists 
                                of a physical location or an 
                                electronically or technologically 
                                linked access point; and
                                    (II) that assures individuals that 
                                information on the availability of core 
                                services will be available regardless 
                                of where the individuals initially 
                                enter the statewide workforce 
                                investment system, including 
                                information made available through an 
                                access point described in subclause 
                                (I).
    (c) Required Local Activities.--
            (1) In general.--Funds received by a local area under 
        paragraph (3)(A) or (4)(A), as appropriate, of section 306(b), 
        and funds received by the local area under section 
        306(b)(3)(B), shall be used--
                    (A) to establish a one-stop customer service center 
                described in subsection (b);
                    (B) to provide the core services described in 
                paragraph (2) to participants described in such 
                paragraph through the one-stop customer service system; 
                and
                    (C) to provide training services described in 
                paragraph (3) to participants described in such 
                paragraph.
            (2) Core services.--Funds received by a local area as 
        described in paragraph (1) shall be used to provide core 
        services, which shall be available to all individuals seeking 
        assistance through a one-stop customer service system and 
        shall, at a minimum, include--
                    (A) determinations of whether the individuals are 
                eligible to receive activities under this subtitle;
                    (B) outreach, intake (which may include worker 
                profiling), and orientation to the information and 
                other services available through the one-stop customer 
                service system;
                    (C) initial assessment of skill levels, aptitudes, 
                abilities, and supportive service needs;
                    (D) case management assistance, as appropriate;
                    (E) job search and placement assistance;
                    (F) provision of information regarding--
                            (i) local, State, and, if appropriate, 
                        regional or national, employment opportunities; 
                        and
                            (ii) job skills necessary to obtain the 
                        employment opportunities;
                    (G) provision of performance information on 
                eligible providers of training services as described in 
                section 312, provided by program, and eligible 
                providers of youth activities as described in section 
                313, eligible providers of adult education as described 
                in title II, eligible providers of postsecondary 
                vocational education activities and vocational 
                education activities available to school dropouts as 
                described in title I, and eligible providers of 
                vocational rehabilitation program activities as 
                described in title I of the Rehabilitation Act of 1973;
                    (H) provision of performance information on the 
                activities carried out by one-stop partners, as 
                appropriate;
                    (I) provision of information regarding how the 
                local area is performing on the local performance 
                measures described in section 321(c), and any 
                additional performance information provided to the one-
                stop customer service center by the local partnership;
                    (J) provision of accurate information relating to 
                the availability of supportive services, including 
                child care and transportation, available in the local 
                area, and referral to such services, as appropriate;
                    (K) provision of information regarding filing 
                claims for unemployment compensation;
                    (L) assistance in establishing eligibility for--
                            (i) welfare-to-work activities authorized 
                        under section 403(a)(5) of the Social Security 
                        Act (as added by section 5001 of the Balanced 
                        Budget Act of 1997) available in the local 
                        area; and
                            (ii) programs of financial aid assistance 
                        for training and education programs that are 
                        not funded under this Act and are available in 
                        the local area; and
                    (M) followup services, including counseling 
                regarding the workplace, for participants in workforce 
                investment activities who are placed in unsubsidized 
                employment, for not less than 12 months after the first 
                day of the employment, as appropriate.
            (3) Required training services.--
                    (A) Eligible participants.--Funds received by a 
                local area as described in paragraph (1) shall be used 
                to provide training services to individuals--
                            (i) who are adults (including dislocated 
                        workers);
                            (ii) who seek the services;
                            (iii)(I) who are unable to obtain 
                        employment through the core services; or
                            (II) who are employed and who are 
                        determined by a one-stop customer service 
                        center operator to be in need of such training 
                        services in order to gain or retain employment 
                        that allows for self-sufficiency;
                            (iv) who after an interview, evaluation, or 
                        assessment, and case management, have been 
                        determined by a one-stop customer service 
                        center operator or one-stop partner, as 
                        appropriate, to be in need of training services 
                        and to have the skills and qualifications, to 
                        successfully participate in the selected 
                        program of training services;
                            (v) who select programs of training 
                        services that are directly linked to the 
                        employment opportunities in the local area 
                        involved or in another area in which the adults 
                        receiving such services are willing to 
                        relocate;
                            (vi) who meet the requirements of 
                        subparagraph (B); and
                            (vii) who are determined to be eligible in 
                        accordance with the priority system, if any, in 
                        effect under subparagraph (D).
                    (B) Qualification.--
                            (i) Requirement.--Except as provided in 
                        clause (ii), provision of such training 
                        services shall be limited to individuals who--
                                    (I) are unable to obtain other 
                                grant assistance for such services, 
                                including Federal Pell Grants 
                                established under title IV of the 
                                Higher Education Act of 1965 (20 U.S.C. 
                                1070 et seq.); or
                                    (II) require assistance beyond the 
                                assistance made available under other 
                                grant assistance programs, including 
                                Federal Pell Grants.
                            (ii) Reimbursements.--Training services may 
                        be provided under this paragraph to an 
                        individual who otherwise meets the requirements 
                        of this paragraph while an application for a 
                        Federal Pell Grant is pending, except that if 
                        such individual is subsequently awarded a 
                        Federal Pell Grant, appropriate reimbursement 
                        shall be made to the local area from such 
                        Federal Pell Grant.
                    (C) Training services.--Training services may 
                include--
                            (i) employment skill training;
                            (ii) on-the-job training;
                            (iii) job readiness training; and
                            (iv) adult education services when provided 
                        in combination with services described in 
                        clause (i), (ii), or (iii).
                    (D) Priority.--In the event that funds are limited 
                within a local area for adult employment and training 
                activities, priority shall be given to disadvantaged 
                adults for receipt of training services provided under 
                this paragraph. The appropriate local partnership and 
                the Governor shall direct the one-stop customer service 
                center operator in the local area with regard to making 
                determinations related to such priority.
                    (E) Delivery of services.--Training services 
                provided under this paragraph shall be provided--
                            (i) except as provided in section 312(e), 
                        through eligible providers of such services 
                        identified in accordance with section 312; and
                            (ii) in accordance with subparagraph (F).
                    (F) Consumer choice requirements.--
                            (i) In general.--Training services provided 
                        under this paragraph shall be provided in a 
                        manner that maximizes consumer choice in the 
                        selection of an eligible provider of such 
                        services.
                            (ii) Eligible providers.--Each local 
                        partnership, through one-stop customer service 
                        centers, shall make available--
                                    (I) the list of eligible providers 
                                required under subsection (b)(3) or 
                                (c)(2) of section 312, with a 
                                description of the programs through 
                                which the providers may offer the 
                                training services, and a list of the 
                                names of on-the-job training providers; 
                                and
                                    (II) the performance information on 
                                eligible providers of training services 
                                as described in section 312.
                            (iii) Employment information.--Each local 
                        partnership, through one-stop customer service 
                        centers, shall make available--
                                    (I) information regarding local, 
                                State, and, if appropriate, regional or 
                                national, employment opportunities; and
                                    (II) information regarding the job 
                                skills necessary to obtain the 
                                employment opportunities.
                            (iv) Individual training accounts.--An 
                        individual who is eligible pursuant to 
                        subparagraph (A) and seeks training services 
                        may select, in consultation with a case 
                        manager, an eligible provider of training 
                        services from the lists of providers described 
                        in clause (ii)(I). Upon such selection, the 
                        operator of the one-stop customer service 
                        center shall, to the extent practicable, refer 
                        such individual to the eligible provider of 
                        training services, and arrange for payment for 
                        such services through an individual training 
                        account.
    (d) Permissible Local Activities.--
            (1) Discretionary one-stop delivery activities.--Funds 
        received by a local area under paragraph (3)(A) or (4)(A), as 
        appropriate, of section 306(b), and funds received by the local 
        area under section 306(b)(3)(B) may be used to provide, through 
        one-stop delivery described in subsection (b)(2)--
                    (A) intensive employment-related services for 
                adults;
                    (B) customized screening and referral of qualified 
                participants in training services to employment; and
                    (C) customized employment-related services to 
                employers.
            (2) Supportive services.--Funds received by the local area 
        as described in paragraph (1) may be used to provide supportive 
        services to participants--
                    (A) who are participating in activities described 
                in this section; and
                    (B) who are unable to obtain such supportive 
                services through other programs providing such 
                services.
            (3) Needs-related payments.--
                    (A) In general.--Funds received by the local area 
                under section 306(b)(3)(B) may be used to provide 
                needs-related payments to dislocated workers who do not 
                qualify for, or have exhausted, unemployment 
                compensation, for the purpose of enabling such 
                individuals to participate in training services.
                    (B) Additional eligibility requirements.--In 
                addition to the requirements contained in subparagraph 
                (A), a dislocated worker who has ceased to qualify for 
                unemployment compensation may be eligible to receive 
                needs-related payments under this paragraph only if 
                such worker was enrolled in the training services--
                            (i) by the end of the 13th week after the 
                        most recent layoff that resulted in a 
                        determination of the worker's eligibility for 
                        employment and training activities for 
                        dislocated workers under this subtitle; or
                            (ii) if later, by the end of the 8th week 
                        after the worker is informed that a short-term 
                        layoff will exceed 6 months.
                    (C) Level of payments.--The level of a needs-
                related payment made to a dislocated worker under this 
                paragraph shall not exceed the greater of--
                            (i) the applicable level of unemployment 
                        compensation; or
                            (ii) if such worker did not qualify for 
                        unemployment compensation, an amount equal to 
                        the poverty line, for an equivalent period, 
                        which amount shall be adjusted to reflect 
                        changes in total family income.

SEC. 316. LOCAL YOUTH ACTIVITIES.

    (a) Purposes.--The purposes of this section are--
            (1) to provide, to youth seeking assistance in achieving 
        academic and employment success, effective and comprehensive 
        activities, which shall include a variety of options for 
        improving educational and skill competencies and provide 
        effective connections to employers;
            (2) to ensure continuous contact for youth with committed 
        adults;
            (3) to provide opportunities for training to youth;
            (4) to provide continued support services for youth;
            (5) to provide incentives for recognition and achievement 
        to youth; and
            (6) to provide opportunities for youth in activities 
        related to leadership, development, decisionmaking, 
        citizenship, and community service.
    (b) Required Elements.--Funds received by a local area under 
paragraph (3)(C) or (4)(B) of section 306(b) shall be used to carry 
out, for youth who seek the activities, activities that--
            (1) consist of the provision of--
                    (A) tutoring, study skills training, and 
                instruction, leading to completion of secondary school, 
                including dropout prevention strategies;
                    (B) alternative secondary school services;
                    (C) summer employment opportunities and other paid 
                and unpaid work experiences, including internships and 
                job shadowing;
                    (D) employment skill training, as appropriate;
                    (E) community service and leadership development 
                opportunities;
                    (F) services described in section 315(c)(2);
                    (G) supportive services;
                    (H) adult mentoring for the period of participation 
                and a subsequent period, for a total of not less than 
                12 months; and
                    (I) followup services for not less than 12 months 
                after the completion of participation, as appropriate;
            (2) provide--
                    (A) preparation for postsecondary educational 
                opportunities, in appropriate cases;
                    (B) strong linkages between academic and 
                occupational learning;
                    (C) preparation for unsubsidized employment 
                opportunities, in appropriate cases; and
                    (D) effective connections to intermediaries with 
                strong links to--
                            (i) the job market; and
                            (ii) local and regional employers; and
            (3) involve parents, participants, and other members of the 
        community with experience relating to youth in the design and 
        implementation of the activities.
    (c) Priority.--
            (1) In general.--At a minimum, 50 percent of the funds 
        described in subsection (b) shall be used to provide youth 
        activities to out-of-school youth.
            (2) Exception.--A State that receives a minimum allotment 
        under paragraph (1) or (3) of section 302(b) in accordance with 
        section 302(b)(1)(B)(iv)(II) may reduce the percentage 
        described in paragraph (1) for a local area in the State, if--
                    (A) after an analysis of the youth population in 
                the local area, the State determines that the local 
                area will be unable to meet the percentage described in 
                paragraph (1) due to a low number of out-of-school 
                youth; and
                    (B)(i) the State submits to the Secretary, for the 
                local area, a request including a proposed reduced 
                percentage for purposes of paragraph (1), and the 
                summary of the youth population analysis; and
                    (ii) the request is approved by the Secretary.
    (d) Prohibitions.--
            (1) No local education curriculum.--No funds described in 
        subsection (b) shall be used to develop or implement local 
        school system education curricula.
            (2) Nonduplication.--No funds described in subsection (b) 
        shall be used to carry out activities that duplicate federally 
        funded activities available to youth in the local area.
            (3) Noninterference and nonreplacement of regular academic 
        requirements.--No funds described in subsection (b) shall be 
        used to provide an activity for youth who are not school 
        dropouts if participation in the activity would interfere with 
        or replace the regular academic requirements of the youth.

                     CHAPTER 4--GENERAL PROVISIONS

SEC. 321. ACCOUNTABILITY.

    (a) Purpose.--The purpose of this section is to establish 
comprehensive performance measures to assess the effectiveness of 
States and local areas in achieving continuous improvement of workforce 
investment activities funded under this subtitle, in order to maximize 
the return on investment of Federal funds in State and local workforce 
development activities.
    (b) State Performance Measures.--
            (1) In general.--To be eligible to receive an allotment 
        under section 302, a State shall establish, and identify in the 
        State plan, State performance measures. Each State performance 
        measure shall consist of an indicator of performance referred 
        to in paragraph (2) or (3) and a level of performance referred 
        to in paragraph (4).
            (2) Core indicators of performance.--
                    (A) In general.--The State performance measures 
                shall include indicators of performance for workforce 
                investment activities provided under this subtitle 
                (except for self-service and informational activities) 
                for each of the population groups described in 
                subparagraph (B). Such indicators, at a minimum, shall 
                consist of--
                            (i) entry into unsubsidized employment;
                            (ii) retention in unsubsidized employment 6 
                        months after entry into the employment;
                            (iii) earnings received in unsubsidized 
                        employment 6 months after entry into the 
                        employment; and
                            (iv) attainment of a recognized credential 
                        relating to achievement of educational skills 
                        (including basic skills) or occupational 
                        skills, by participants who entered 
                        unsubsidized employment, or by participants who 
                        are in-school youth, taking into account 
                        attainment of more than 1 such credential.
                    (B) Population groups.--The indicators described in 
                subparagraph (A) shall be applicable to each of the 
                following populations:
                            (i) Dislocated workers.
                            (ii) Economically disadvantaged adults.
                            (iii) Youth.
            (3) Additional indicators of performance.--
                    (A) Customer satisfaction indicators.--A State 
                shall identify in the State plan an indicator of 
                performance concerning customer satisfaction of 
                employers and workers with results achieved from the 
                workforce investment activities in which the employers 
                and workers participated under this subtitle. The 
                customer satisfaction may be measured through surveys 
                conducted after the conclusion of participation in the 
                workforce investment activities.
                    (B) Additional indicators.--A State may identify in 
                the State plan additional indicators of performance 
                relating to State goals for workforce investment, 
                including goals for the economic success of the 
                citizens of the State or other State goals related to 
                the objectives of this subtitle.
            (4) State levels of performance.--
                    (A) In general.--The Secretary and each Governor 
                shall reach agreement on the levels of performance 
                expected to be achieved by the State on the State 
                performance measures established pursuant to this 
                subsection. In reaching the agreement, the Secretary 
                and Governor shall establish a level of performance for 
                each of the indicators of performance described in 
                paragraphs (2) and (3). Such agreement shall take into 
                account--
                            (i) how the levels compare with the levels 
                        established by other States, taking into 
                        account factors including differences in 
                        economic conditions, the characteristics of 
                        participants when the participants entered the 
                        program, and the services to be provided;
                            (ii) the extent to which such levels 
                        promote continuous improvement in performance 
                        on the performance measures by such State and 
                        ensure maximum return on the investment of 
                        Federal funds; and
                            (iii) the extent to which the levels will 
                        assist the State in attaining the workforce 
                        investment goals of the State.
                    (B) Adjustments.--If unanticipated circumstances 
                arise in a State resulting in a significant change in 
                the factors described in subparagraph (A)(i), the 
                Governor may request that the levels of performance 
                agreed to under subparagraph (A) be adjusted. The 
                Secretary, after collaboration with the representatives 
                described in subsection (i), shall issue objective 
                criteria and methods for making such adjustments.
    (c) Local Performance Measures.--
            (1) In general.--Each Governor shall negotiate and reach 
        agreement with the local partnership and the chief elected 
        official in each local area on local performance measures, 
        based on the State performance measures identified in the State 
        plan. Each local performance measure shall consist of an 
        indicator of performance referred to in paragraph (2) or (3) of 
        subsection (b) and a level of performance referred to in 
        paragraph (2).
            (2) Agreement.--
                    (A) In general.--In reaching the agreement, the 
                Governor, local partnership, and chief elected official 
                shall establish an expected level of performance for 
                each of the indicators of performance.
                    (B) Considerations.--Such agreement shall take into 
                account at the local level the matters considered at 
                the State level under clauses (i), (ii), and (iii) of 
                subsection (b)(4)(A).
                    (C) Adjustments.--If unanticipated circumstances 
                arise in a local area resulting in a significant change 
                in the factors referred to in subsection (b)(4)(A)(i), 
                the local partnership and chief elected official may 
                request that the levels of performance agreed to under 
                paragraph (1) be adjusted, using criteria and methods 
                referred to in subsection (b)(4)(B).
    (d) Report.--
            (1) In general.--Each State that receives an allotment 
        under section 302 shall annually prepare and submit to the 
        Secretary a report on the progress of the State in achieving 
        State performance measures. The annual report also shall 
        include information regarding the progress of local areas in 
        achieving local performance measures. The report also shall 
        include information on the status of State evaluations of 
        workforce investment activities described in subsection (e).
            (2) Additional information.--In preparing such report, the 
        State shall include, at a minimum, information on participants 
        in workforce investment activities relating to--
                    (A) entry by participants who have completed 
                training services provided under section 315(c)(3) into 
                unsubsidized employment related to the training 
                received;
                    (B) wages at entry into employment for participants 
                in workforce investment activities who entered 
                unsubsidized employment, including the rate of wage 
                replacement for such participants who are dislocated 
                workers;
                    (C) cost of workforce investment activities 
                relative to the effect of the activities on the 
                performance of participants;
                    (D) retention and earnings received in unsubsidized 
                employment 12 months after entry into the employment;
                    (E) performance with respect to the indicators of 
                performance specified in subsection (b)(2) of 
                participants in workforce investment activities who 
                received the training services compared with the 
                performance of participants in workforce investment 
                activities who received only services other than the 
                training services (excluding participants who received 
                only self-service and informational activities); and
                    (F) performance with respect to the indicators of 
                performance specified in subsection (b)(2) of welfare 
                recipients, out-of-school youth, veterans, and 
                individuals with disabilities.
            (3) Information dissemination.--The Secretary shall make 
        the information contained in such reports available to 
        Congress, the Library of Congress, and the public through 
        publication and other appropriate methods. The Secretary shall 
        disseminate State-by-State comparisons of the information after 
        adjusting the information to take account of differences in 
        specific circumstances, including economic circumstances, of 
        the States and after consulting with each Governor as to the 
        accuracy of the information after adjustment.
    (e) Evaluation of State Programs.--
            (1) In general.--Using funds made available under this 
        subtitle, the State, in coordination with local partnerships in 
        the State, shall conduct ongoing evaluation studies of 
        workforce investment activities carried out in the State under 
        this subtitle in order to promote, establish, implement, and 
        utilize methods for continuously improving the activities in 
        order to achieve high-level performance within, and high-level 
        outcomes from, the statewide workforce investment system. To 
        the maximum extent practicable, the State shall coordinate the 
        evaluations with the evaluations provided for by the Secretary 
        under section 368.
            (2) Design.--The evaluation studies conducted under this 
        subsection shall be designed in conjunction with the statewide 
        partnership and local partnerships and shall include analysis 
        of customer feedback and outcome and process measures in the 
        statewide workforce investment system.
            (3) Results.--The State shall periodically prepare and 
        submit to the statewide partnership and local partnerships in 
        the State reports containing the results of evaluation studies 
        conducted under this subsection, to promote the efficiency and 
        effectiveness of the statewide workforce investment system in 
        improving employability for jobseekers and competitiveness for 
        employers.
    (f) Fiscal and Management Accountability Information Systems.--
            (1) In general.--Using funds made available under this 
        subtitle, the Governor, in coordination with local partnerships 
        and chief elected officials in the State, shall establish and 
        operate a fiscal and management accountability information 
        system based on guidelines established by the Secretary after 
        consultation with the Governors, local elected officials, and 
        officers of agencies that administer workforce investment 
        activities in local areas. Such guidelines shall promote 
        efficient collection and use of fiscal and management 
        information for reporting and monitoring the use of funds made 
        available under this subtitle and for preparing the annual 
        report described in subsection (d).
            (2) Wage records.--In measuring the progress of the State 
        on State and local performance measures, a State shall utilize 
        quarterly wage records. The Secretary shall make arrangements 
        to ensure that the wage records of any State are available to 
        any other State to the extent that such wage records are 
        required by the State in carrying out the State plan of the 
        State or completing the annual report described in subsection 
        (d).
            (3) Confidentiality.--In carrying out the requirements of 
        this Act, the State shall comply with section 444 of the 
        General Education Provisions Act (20 U.S.C. 1232g) (as added by 
        the Family Educational Rights and Privacy Act of 1974).
    (g) Sanctions.--
            (1) Technical assistance or reduction of allotments.--The 
        Secretary shall--
                    (A) if a State failed to meet \1/3\ or more of the 
                State performance measures for any year, provide 
                technical assistance in accordance with section 366(b) 
                to the State to improve the level of performance of the 
                State; and
                    (B) if a State failed to meet \1/2\ or more of the 
                State performance measures for each of 2 consecutive 
                years, or failed to meet the State performance measures 
                and the extent of the failure with respect to \1/3\ of 
                such measures was significant for each of 2 consecutive 
                years--
                            (i) determine whether the failure involved 
                        is attributable to--
                                    (I) adult employment and training 
                                activities;
                                    (II) dislocated worker employment 
                                and training activities; or
                                    (III) youth activities; and
                            (ii) reduce, by not more than 5 percent, 
                        the allotment of the State under section 302 
                        for 1 year for the category of activities 
                        described in clause (i) to which the failure is 
                        attributable.
            (2) Criteria.--The Secretary, after collaboration with the 
        representatives described in subsection (i), shall issue 
        objective criteria for determining cases in which the extent of 
        failure is significant for purposes of paragraph (1)(B).
            (3) Funds resulting from reduced allotments.--The Secretary 
        shall use an amount retained, as a result of a reduction in an 
        allotment to a State made under paragraph (1)(B), to provide 
        technical assistance in accordance with section 366 to such 
        State.
    (h) Incentive Grants.--The Secretary shall make incentive grants 
under this title in accordance with section 365 to States that exceed 
the levels of performance for performance measures established under 
this Act. In awarding incentive grants under this title, the Secretary 
shall give special consideration to those States achieving the highest 
levels of performance on indicators of performance related to 
employment retention and earnings.
    (i) Other Measures and Terminology.--
            (1) Responsibilities.--The Secretary, after collaboration 
        with representatives of appropriate Federal agencies, and 
        representatives of States and political subdivisions, business 
        and industry, employees, eligible providers of employment and 
        training activities, educators, and participants, with 
        expertise regarding workforce investment policies and workforce 
        investment activities, shall issue--
                    (A) definitions for information required to be 
                reported under subsection (d)(2);
                    (B) terms for a menu of additional indicators of 
                performance described in subsection (b)(3)(B) to assist 
                States in assessing their progress toward State 
                workforce investment goals;
                    (C) objective criteria and methods described in 
                subsection (b)(4)(B) for making adjustments to levels 
                of performance; and
                    (D) objective criteria described in subsection 
                (g)(2) for determining significant extent of failure on 
                performance measures.
            (2) Definitions for core indicators.--The Secretary and the 
        representatives described in paragraph (1) shall participate in 
        the activities described in section 502 concerning the issuance 
        of definitions for indicators of performance described in 
        subsection (b)(2).
            (3) Assistance.--The Secretary shall make the services of 
        objective staff available to the representatives to assist the 
        representatives in participating in the collaboration described 
        in paragraph (1) and in the activities described in section 
        502.

SEC. 322. AUTHORIZATION OF APPROPRIATIONS.

    (a) Adult Employment and Training Activities.--There are authorized 
to be appropriated to carry out the activities described in section 
302(a)(1) under this subtitle, such sums as may be necessary for each 
of fiscal years 1999 through 2004.
    (b) Dislocated Worker Employment and Training Activities.--There 
are authorized to be appropriated to carry out the activities described 
in section 302(a)(2) under this subtitle, such sums as may be necessary 
for each of fiscal years 1999 through 2004.
    (c) Youth Activities.--There are authorized to be appropriated to 
carry out the activities described in section 302(a)(3) under this 
subtitle, such sums as may be necessary for each of fiscal years 1999 
through 2004.

                         Subtitle B--Job Corps

SEC. 331. PURPOSES.

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

SEC. 332. DEFINITIONS.

    In this subtitle:
            (1) Applicable local partnership.--The term ``applicable 
        local partnership'' means a local partnership--
                    (A) that provides information for a Job Corps 
                center on local employment opportunities and the job 
                skills needed to obtain the opportunities; and
                    (B) that serves communities in which the graduates 
                of the Job Corps center seek employment.
            (2) Applicable one-stop customer service center.--The term 
        ``applicable one-stop customer service center'' means a one-
        stop customer service center that provides services, such as 
        referral, intake, recruitment, and placement, to a Job Corps 
        center.
            (3) Enrollee.--The term ``enrollee'' means an individual 
        who has voluntarily applied for, been selected for, and 
        enrolled in the Job Corps program, and remains with the 
        program, but has not yet become a graduate.
            (4) Former enrollee.--The term ``former enrollee'' means an 
        individual who has voluntarily applied for, been selected for, 
        and enrolled in the Job Corps program, but left the program 
        before completing the requirements of a vocational training 
        program, or receiving a secondary school diploma or recognized 
        equivalent, as a result of participation in the Job Corps 
        program.
            (5) Graduate.--The term ``graduate'' means an individual 
        who has voluntarily applied for, been selected for, and 
        enrolled in the Job Corps program and has completed the 
        requirements of a vocational training program, or received a 
        secondary school diploma or recognized equivalent, as a result 
        of participation in the Job Corps program.
            (6) Job corps.--The term ``Job Corps'' means the Job Corps 
        described in section 333.
            (7) Job corps center.--The term ``Job Corps center'' means 
        a center described in section 333.
            (8) Operator.--The term ``operator'' means an entity 
        selected under this subtitle to operate a Job Corps center.
            (9) Region.--The term ``region'' means an area served by a 
        regional office of the Employment and Training Administration.
            (10) Service provider.--The term ``service provider'' means 
        an entity selected under this subtitle to provide services 
        described in this subtitle to a Job Corps center.

SEC. 333. ESTABLISHMENT.

    There shall be established in the Department of Labor a Job Corps 
program, to carry out activities described in this subtitle for 
individuals enrolled in a Job Corps and assigned to a center.

SEC. 334. INDIVIDUALS ELIGIBLE FOR THE JOB CORPS.

    To be eligible to become an enrollee, an individual shall be--
            (1) not less than age 16 and not more than age 21 on the 
        date of enrollment, except that--
                    (A) not more than 20 percent of the individuals 
                enrolled in the Job Corps may be not less than age 22 
                and not more than age 24 on the date of enrollment; and
                    (B) either such maximum age limitation may be 
                waived by the Secretary, in accordance with regulations 
                of the Secretary, in the case of an individual with a 
                disability;
            (2) a low-income individual; and
            (3) an individual who is 1 or more of the following:
                    (A) Basic skills deficient.
                    (B) A school dropout.
                    (C) Homeless, a runaway, or a foster child.
                    (D) A parent.
                    (E) An individual who requires additional 
                education, vocational training, or intensive counseling 
                and related assistance, in order to participate 
                successfully in regular schoolwork or to secure and 
                hold employment.

SEC. 335. RECRUITMENT, SCREENING, SELECTION, AND ASSIGNMENT OF 
              ENROLLEES.

    (a) Standards and Procedures.--
            (1) In general.--The Secretary shall prescribe specific 
        standards and procedures for the recruitment, screening, and 
        selection of eligible applicants for the Job Corps, after 
        considering recommendations from the Governors, local 
        partnerships, and other interested parties.
            (2) Methods.--In prescribing standards and procedures under 
        paragraph (1), the Secretary, at a minimum, shall--
                    (A) prescribe procedures for informing enrollees 
                that drug tests will be administered to the enrollees 
                and the results received within 45 days after the 
                enrollees enroll in the Job Corps;
                    (B) establish standards for recruitment of Job 
                Corps applicants;
                    (C) establish standards and procedures for--
                            (i) determining, for each applicant, 
                        whether the educational and vocational needs of 
                        the applicant can best be met through the Job 
                        Corps program or an alternative program in the 
                        community in which the applicant resides; and
                            (ii) obtaining from each applicant 
                        pertinent data relating to background, needs, 
                        and interests for determining eligibility and 
                        potential assignment;
                    (D) where appropriate, take measures to improve the 
                professional capability of the individuals conducting 
                screening of the applicants; and
                    (E) assure that an appropriate number of enrollees 
                are from rural areas.
            (3) Implementation.--To the extent practicable, the 
        standards and procedures shall be implemented through 
        arrangements with--
                    (A) applicable one-stop customer service centers;
                    (B) community action agencies, business 
                organizations, and labor organizations; and
                    (C) agencies and individuals that have contact with 
                youth over substantial periods of time and are able to 
                offer reliable information about the needs and problems 
                of youth.
            (4) Consultation.--The standards and procedures shall 
        provide for necessary consultation with individuals and 
        organizations, including court, probation, parole, law 
        enforcement, education, welfare, and medical authorities and 
        advisers.
            (5) Reimbursement.--The Secretary is authorized to enter 
        into contracts with and make payments to individuals and 
        organizations for the cost of conducting recruitment, 
        screening, and selection of eligible applicants for the Job 
        Corps, as provided for in this section. The Secretary shall 
        make no payment to any individual or organization solely as 
        compensation for referring the names of applicants for the Job 
        Corps.
    (b) Special Limitations on Selection.--
            (1) In general.--No individual shall be selected as an 
        enrollee unless the individual or organization implementing the 
        standards and procedures determines that--
                    (A) there is a reasonable expectation that the 
                individual considered for selection can participate 
                successfully in group situations and activities, and is 
                not likely to engage in behavior that would prevent 
                other enrollees from receiving the benefit of the Job 
                Corps program or be incompatible with the maintenance 
                of sound discipline and satisfactory relationships 
                between the Job Corps center to which the individual 
                might be assigned and communities surrounding the Job 
                Corps center;
                    (B) the individual manifests a basic understanding 
                of both the rules to which the individual will be 
                subject and of the consequences of failure to observe 
                the rules; and
                    (C) the individual has passed a background check 
                conducted in accordance with procedures established by 
                the Secretary.
            (2) Individuals on probation, parole, or supervised 
        release.--An individual on probation, parole, or supervised 
        release may be selected as an enrollee only if release from the 
        supervision of the probation or parole official involved is 
        satisfactory to the official and the Secretary and does not 
        violate applicable laws (including regulations). No individual 
        shall be denied a position in the Job Corps solely on the basis 
        of individual contact with the criminal justice system.
    (c) Assignment Plan.--
            (1) In general.--Every 2 years, the Secretary shall develop 
        and implement an assignment plan for assigning enrollees to Job 
        Corps centers. In developing the plan, the Secretary shall, 
        based on the analysis described in paragraph (2), establish 
        targets, applicable to each Job Corps center, for--
                    (A) the maximum attainable percentage of enrollees 
                at the Job Corps center that reside in the State in 
                which the center is located; and
                    (B) the maximum attainable percentage of enrollees 
                at the Job Corps center that reside in the region in 
                which the center is located, and in surrounding 
                regions.
            (2) Analysis.--In order to develop the plan described in 
        paragraph (1), the Secretary shall, every 2 years, analyze, for 
        the Job Corps center--
                    (A) the size of the population of individuals 
                eligible to participate in Job Corps in the State and 
                region in which the Job Corps center is located, and in 
                surrounding regions;
                    (B) the relative demand for participation in the 
                Job Corps in the State and region, and in surrounding 
                regions; and
                    (C) the capacity and utilization of the Job Corps 
                center, including services provided through the center.
    (d) Assignment of Individual Enrollees.--
            (1) In general.--After an individual has been selected for 
        the Job Corps in accordance with the standards and procedures 
        of the Secretary under subsection (a), the enrollee shall be 
        assigned to the Job Corps center that is closest to the home of 
        the enrollee, except that the Secretary may waive this 
        requirement if--
                    (A) the enrollee chooses a vocational training 
                program, or requires an English as a second language 
                program, that is not available at such center;
                    (B) the enrollee is an individual with a disability 
                and may be better served at another center;
                    (C) the enrollee would be unduly delayed in 
                participating in the Job Corps program because the 
                closest center is operating at full capacity; or
                    (D) the parent or guardian of the enrollee requests 
                assignment of the enrollee to another Job Corps center 
                due to circumstances in the community of the enrollee 
                that would impair prospects for successful 
                participation in the Job Corps program.
            (2) Enrollees who are younger than 18.--An enrollee who is 
        younger than 18 shall not be assigned to a Job Corps center 
        other than the center closest to the home of the enrollee 
        pursuant to paragraph (1) if the parent or guardian of the 
        enrollee objects to the assignment.

SEC. 336. ENROLLMENT.

    (a) Relationship Between Enrollment and Military Obligations.--
Enrollment in the Job Corps shall not relieve any individual of 
obligations under the Military Selective Service Act (50 U.S.C. App. 
451 et seq.).
    (b) Period of Enrollment.--No individual may be enrolled in the Job 
Corps for more than 2 years, except--
            (1) in a case in which completion of an advanced career 
        training program under section 338(b) would require an 
        individual to participate in the Job Corps for not more than 1 
        additional year; or
            (2) as the Secretary may authorize in a special case.

SEC. 337. JOB CORPS CENTERS.

    (a) Operators and Service Providers.--
            (1) Eligible entities.--
                    (A) Operators.--The Secretary shall enter into an 
                agreement with a Federal, State, or local agency, such 
                as individuals participating in a statewide partnership 
                or in a local partnership or an agency that operates or 
                wishes to develop an area vocational education school 
                facility or residential vocational school, or with a 
                private organization, for the operation of each Job 
                Corps center.
                    (B) Providers.--The Secretary may enter into an 
                agreement with a local entity to provide activities 
                described in this subtitle to the Job Corps center.
            (2) Selection process.--
                    (A) Competitive basis.--Except as provided in 
                subsections (c) and (d) of section 303 of the Federal 
                Property and Administrative Services Act of 1949 (41 
                U.S.C. 253), the Secretary shall select on a 
                competitive basis an entity to operate a Job Corps 
                center and entities to provide activities described in 
                this subtitle to the Job Corps center. In developing a 
                solicitation for an operator or service provider, the 
                Secretary shall consult with the Governor of the State 
                in which the center is located, the industry council 
                for the Job Corps center (if established), and the 
                applicable local partnership regarding the contents of 
                such solicitation, including elements that will promote 
                the consistency of the activities carried out through 
                the center with the objectives set forth in the State 
                plan or in a local plan.
                    (B) Recommendations and considerations.--
                            (i) Operators.--In selecting an entity to 
                        operate a Job Corps center, the Secretary shall 
                        consider--
                                    (I) the ability of the entity to 
                                coordinate the activities carried out 
                                through the Job Corps center with 
                                activities carried out under the 
                                appropriate State plan and local plans;
                                    (II) the degree to which the 
                                vocational training that the entity 
                                proposes for the center reflects local 
                                employment opportunities in the local 
                                areas in which enrollees at the center 
                                intend to seek employment;
                                    (III) the degree to which the 
                                entity is familiar with the surrounding 
                                communities, applicable one-stop 
                                centers, and the State and region in 
                                which the center is located; and
                                    (IV) the past performance of the 
                                entity, if any, relating to operating 
                                or providing activities described in 
                                this subtitle to a Job Corps center.
                            (ii) Providers.--In selecting a service 
                        provider for a Job Corps center, the Secretary 
                        shall consider the factors described in 
                        subclauses (I) through (IV) of clause (i), as 
                        appropriate.
    (b) Character and Activities.--Job Corps centers may be residential 
or nonresidential in character, and shall be designed and operated so 
as to provide enrollees, in a well-supervised setting, with access to 
activities described in this subtitle. In any year, no more than 20 
percent of the individuals enrolled in the Job Corps may be 
nonresidential participants in the Job Corps.
    (c) Civilian Conservation Centers.--
            (1) In general.--The Job Corps centers may include Civilian 
        Conservation Centers operated under agreements with the 
        Secretary of Agriculture or the Secretary of the Interior, 
        located primarily in rural areas, which shall provide, in 
        addition to other vocational training and assistance, programs 
        of work experience to conserve, develop, or manage public 
        natural resources or public recreational areas or to develop 
        community projects in the public interest.
            (2) Selection process.--The Secretary may select an entity 
        to operate a Civilian Conservation Center on a competitive 
        basis, as provided in subsection (a), if the center fails to 
        meet such national performance standards as the Secretary shall 
        establish.
    (d) Indian Tribes.--
            (1) General authority.--The Secretary may enter into 
        agreements with Indian tribes to operate Job Corps centers for 
        Indians.
            (2) Definitions.--In this subsection, the terms ``Indian'' 
        and ``Indian tribe'', have the meanings given such terms in 
        subsections (d) and (e), respectively, of section 4 of the 
        Indian Self-Determination and Education Assistance Act (25 
        U.S.C. 450b).

SEC. 338. PROGRAM ACTIVITIES.

    (a) Activities Provided by Job Corps Centers.--
            (1) In general.--Each Job Corps center shall provide 
        enrollees with an intensive, well organized, and fully 
        supervised program of education, vocational training, work 
        experience, recreational activities, and counseling. Each Job 
        Corps center shall provide enrollees assigned to the center 
        with access to core services described in subtitle A.
            (2) Relationship to opportunities.--
                    (A) In general.--The activities provided under this 
                subsection shall provide work-based learning throughout 
                the enrollment of the enrollees and assist the 
                enrollees in obtaining meaningful unsubsidized 
                employment, participating in secondary education or 
                postsecondary education programs, enrolling in other 
                suitable vocational training programs, or satisfying 
                Armed Forces requirements, on completion of their 
                enrollment.
                    (B) Link to employment opportunities.--The 
                vocational training provided shall be linked to the 
                employment opportunities in the local area in which the 
                enrollee intends to seek employment after graduation.
    (b) Advanced Career Training Programs.--
            (1) In general.--The Secretary may arrange for programs of 
        advanced career training for selected enrollees in which the 
        enrollees may continue to participate for a period of not to 
        exceed 1 year in addition to the period of participation to 
        which the enrollees would otherwise be limited. The advanced 
        career training may be provided through the eligible providers 
        of training services identified by the State involved under 
        section 312.
            (2) Benefits.--
                    (A) In general.--During the period of participation 
                in an advanced career training program, an enrollee 
                shall be eligible for full Job Corps benefits, or a 
                monthly stipend equal to the average value of the 
                residential support, food, allowances, and other 
                benefits provided to enrollees assigned to residential 
                Job Corps centers.
                    (B) Calculation.--The total amount for which an 
                enrollee shall be eligible under subparagraph (A) shall 
                be reduced by the amount of any scholarship or other 
                educational grant assistance received by such enrollee 
                for advanced career training.
            (3) Demonstration.--Each year, any operator seeking to 
        enroll additional enrollees in an advanced career training 
        program shall demonstrate that participants in such program 
        have achieved a reasonable rate of completion and placement in 
        training-related jobs before the operator may carry out such 
        additional enrollment.
    (c) Continued Services.--The Secretary shall also provide continued 
services to graduates, including providing counseling regarding the 
workplace for 12 months after the date of graduation of the graduates. 
In selecting a provider for such services, the Secretary shall give 
priority to one-stop partners.

SEC. 339. COUNSELING AND JOB PLACEMENT.

    (a) Counseling and Testing.--The Secretary shall arrange for 
counseling and testing for each enrollee at regular intervals to 
measure progress in the education and vocational training programs 
carried out through the Job Corps.
    (b) Placement.--The Secretary shall arrange for counseling and 
testing for enrollees prior to their scheduled graduations to determine 
their capabilities and, based on their capabilities, shall make every 
effort to arrange to place the enrollees in jobs in the vocations for 
which the enrollees are trained or to assist the enrollees in obtaining 
further activities described in this subtitle. In arranging for the 
placement of graduates in jobs, the Secretary shall utilize the one-
stop customer service system to the fullest extent possible.
    (c) Status and Progress.--The Secretary shall determine the status 
and progress of enrollees scheduled for graduation and make every 
effort to assure that their needs for further activities described in 
this subtitle are met.

SEC. 340. SUPPORT.

    (a) Personal Allowances.--The Secretary shall provide enrollees 
assigned to Job Corps centers with such personal allowances as the 
Secretary may determine to be necessary or appropriate to meet the 
needs of the enrollees.
    (b) Readjustment Allowances.--The Secretary shall arrange for a 
readjustment allowance to be paid to eligible former enrollees and 
graduates. The Secretary shall arrange for the allowance to be paid at 
the one-stop customer service center nearest to the home of such a 
former enrollee or graduate who is returning home, or at the one-stop 
customer service center nearest to the location where the former 
enrollee or graduate has indicated an intent to seek employment. If the 
Secretary uses any organization, in lieu of a one-stop customer service 
center, to provide placement services under this Act, the Secretary 
shall arrange for that organization to pay the readjustment allowance.

SEC. 341. OPERATING PLAN.

    (a) In General.--The provisions of the contract between the 
Secretary and an entity selected to operate a Job Corps center shall, 
at a minimum, serve as an operating plan for the Job Corps center.
    (b) Additional Information.--The Secretary may require the 
operator, in order to remain eligible to operate the Job Corps center, 
to submit such additional information as the Secretary may require, 
which shall be considered part of the operating plan.
    (c) Availability.--The Secretary shall make the operating plan 
described in subsections (a) and (b), excluding any proprietary 
information, available to the public.

SEC. 342. STANDARDS OF CONDUCT.

    (a) Provision and Enforcement.--The Secretary shall provide, and 
directors of Job Corps centers shall stringently enforce, standards of 
conduct within the centers. Such standards of conduct shall include 
provisions forbidding the actions described in subsection (b)(2)(A).
    (b) Disciplinary Measures.--
            (1) In general.--To promote the proper moral and 
        disciplinary conditions in the Job Corps, the directors of Job 
        Corps centers shall take appropriate disciplinary measures 
        against enrollees. If such a director determines that an 
        enrollee has committed a violation of the standards of conduct, 
        the director shall dismiss the enrollee from the Job Corps if 
        the director determines that the retention of the enrollee in 
        the Job Corps will jeopardize the enforcement of such standards 
        or diminish the opportunities of other enrollees.
            (2) Zero tolerance policy and drug testing.--
                    (A) Guidelines.--The Secretary shall adopt 
                guidelines establishing a zero tolerance policy for an 
                act of violence, for use, sale, or possession of a 
                controlled substance, for abuse of alcohol, or for 
                other illegal or disruptive activity.
                    (B) Drug testing.--The Secretary shall require drug 
                testing of all enrollees for controlled substances in 
                accordance with procedures prescribed by the Secretary 
                under section 335(a).
                    (C) Definitions.--In this paragraph:
                            (i) Controlled substance.--The term 
                        ``controlled substance'' has the meaning given 
                        the term in section 102 of the Controlled 
                        Substances Act (21 U.S.C. 802).
                            (ii) Zero tolerance policy.--The term 
                        ``zero tolerance policy'' means a policy under 
                        which an enrollee shall be automatically 
                        dismissed from the Job Corps after a 
                        determination by the director that the enrollee 
                        has carried out an action described in 
                        subparagraph (A).
    (c) Appeal.--A disciplinary measure taken by a director under this 
section shall be subject to expeditious appeal in accordance with 
procedures established by the Secretary.

SEC. 343. COMMUNITY PARTICIPATION.

    (a) Business and Community Liaison.--Each Job Corps center shall 
have a Business and Community Liaison (referred to in this Act as a 
``Liaison''), designated by the director of the center.
    (b) Responsibilities.--The responsibilities of the Liaison shall 
include--
            (1) establishing and developing relationships and networks 
        with--
                    (A) local and distant employers; and
                    (B) applicable one-stop customer service centers 
                and applicable local partnerships,
        for the purpose of providing job opportunities for Job Corps 
        graduates; and
            (2) establishing and developing relationships with members 
        of the community in which the Job Corps center is located, 
        informing members of the community about the projects of the 
        Job Corps center and changes in the rules, procedures, or 
        activities of the center that may affect the community, and 
        planning events of mutual interest to the community and the Job 
        Corps center.
    (c) New Centers.--The Liaison for a Job Corps center that is not 
yet operating shall establish and develop the relationships and 
networks described in subsection (b) at least 3 months prior to the 
date on which the center accepts the first enrollee at the center.

SEC. 344. INDUSTRY COUNCILS.

    (a) In General.--Each Job Corps center shall have an industry 
council, appointed by the director of the center after consultation 
with the Liaison, in accordance with procedures established by the 
Secretary.
    (b) Industry Council Composition.--
            (1) In general.--An industry council shall be comprised 
        of--
                    (A) a majority of members who shall be local and 
                distant owners of business concerns, chief executives 
                or chief operating officers of nongovernmental 
                employers, or other private sector employers, who--
                            (i) have substantial management, hiring, or 
                        policy responsibility; and
                            (ii) represent businesses with employment 
                        opportunities that reflect the employment 
                        opportunities of the applicable local area; and
                    (B) representatives of labor organizations (where 
                present) and representatives of employees.
            (2) Local partnership.--The industry council may include 
        members of the applicable local partnerships who meet the 
        requirements described in paragraph (1).
    (c) Responsibilities.--The responsibilities of the industry council 
shall be--
            (1) to work closely with all applicable local partnerships 
        in order to determine, and recommend to the Secretary, 
        appropriate vocational training for the center;
            (2) to review all the relevant labor market information 
        to--
                    (A) determine the employment opportunities in the 
                local areas in which the enrollees intend to seek 
                employment after graduation;
                    (B) determine the skills and education that are 
                necessary to obtain the employment opportunities; and
                    (C) recommend to the Secretary the type of 
                vocational training that should be implemented at the 
                center to enable the enrollees to obtain the employment 
                opportunities; and
            (3) to meet at least once every 6 months to reevaluate the 
        labor market information, and other relevant information, to 
        determine, and recommend to the Secretary, any necessary 
        changes in the vocational training provided at the center.
    (d) New Centers.--The industry council for a Job Corps center that 
is not yet operating shall carry out the responsibilities described in 
subsection (c) at least 3 months prior to the date on which the center 
accepts the first enrollee at the center.

SEC. 345. ADVISORY COMMITTEES.

    The Secretary may establish and use advisory committees in 
connection with the operation of the Job Corps program, and the 
operation of Job Corps centers, whenever the Secretary determines that 
the availability of outside advice and counsel on a regular basis would 
be of substantial benefit in identifying and overcoming problems, in 
planning program or center development, or in strengthening 
relationships between the Job Corps and agencies, institutions, or 
groups engaged in related activities.

SEC. 346. EXPERIMENTAL, RESEARCH, AND DEMONSTRATION PROJECTS.

    The Secretary may carry out experimental, research, or 
demonstration projects relating to carrying out the Job Corps program 
and may waive any provisions of this subtitle that the Secretary finds 
would prevent the Secretary from carrying out the projects.

SEC. 347. APPLICATION OF PROVISIONS OF FEDERAL LAW.

    (a) Enrollees Not Considered To Be Federal Employees.--
            (1) In general.--Except as otherwise provided in this 
        subsection and in section 8143(a) of title 5, United States 
        Code, enrollees shall not be considered to be Federal employees 
        and shall not be subject to the provisions of law relating to 
        Federal employment, including such provisions regarding hours 
        of work, rates of compensation, leave, unemployment 
        compensation, and Federal employee benefits.
            (2) Provisions relating to taxes and social security 
        benefits.--For purposes of the Internal Revenue Code of 1986 
        and title II of the Social Security Act (42 U.S.C. 401 et 
        seq.), enrollees shall be deemed to be employees of the United 
        States and any service performed by an individual as an 
        enrollee shall be deemed to be performed in the employ of the 
        United States.
            (3) Provisions relating to compensation to federal 
        employees for work injuries.--For purposes of subchapter I of 
        chapter 81 of title 5, United States Code (relating to 
        compensation to Federal employees for work injuries), enrollees 
        shall be deemed to be civil employees of the Government of the 
        United States within the meaning of the term ``employee'' as 
        defined in section 8101 of title 5, United States Code, and the 
        provisions of such subchapter shall apply as specified in 
        section 8143(a) of title 5, United States Code.
            (4) Federal tort claims provisions.--For purposes of the 
        Federal tort claims provisions in title 28, United States Code, 
        enrollees shall be considered to be employees of the 
        Government.
    (b) Adjustments and Settlements.--Whenever the Secretary finds a 
claim for damages to a person or property resulting from the operation 
of the Job Corps to be a proper charge against the United States, and 
the claim is not cognizable under section 2672 of title 28, United 
States Code, the Secretary may adjust and settle the claim in an amount 
not exceeding $1,500.
    (c) Personnel of the Uniformed Services.--Personnel of the 
uniformed services who are detailed or assigned to duty in the 
performance of agreements made by the Secretary for the support of the 
Job Corps shall not be counted in computing strength under any law 
limiting the strength of such services or in computing the percentage 
authorized by law for any grade in such services.

SEC. 348. SPECIAL PROVISIONS.

    (a) Enrollment.--The Secretary shall ensure that women and men have 
an equal opportunity to participate in the Job Corps program, 
consistent with section 335.
    (b) Studies, Evaluations, Proposals, and Data.--The Secretary shall 
assure that all studies, evaluations, proposals, and data produced or 
developed with Federal funds in the course of carrying out the Job 
Corps program shall become the property of the United States.
    (c) Transfer of Property.--
            (1) In general.--Notwithstanding title II of the Federal 
        Property and Administrative Services Act of 1949 (40 U.S.C. 481 
        et seq.) and any other provision of law, the Secretary and the 
        Secretary of Education shall receive priority by the Secretary 
        of Defense for the direct transfer, on a nonreimbursable basis, 
        of the property described in paragraph (2) for use in carrying 
        out programs under this Act or under any other Act.
            (2) Property.--The property described in this paragraph is 
        real and personal property under the control of the Department 
        of Defense that is not used by such Department, including 
        property that the Secretary of Defense determines is in excess 
        of current and projected requirements of such Department.
    (d) Gross Receipts.--Transactions conducted by a private for-profit 
or nonprofit entity that is an operator or service provider for a Job 
Corps center shall not be considered to be generating gross receipts. 
Such an operator or service provider shall not be liable, directly or 
indirectly, to any State or subdivision of a State (nor to any person 
acting on behalf of such a State or subdivision) for any gross receipts 
taxes, business privilege taxes measured by gross receipts, or any 
similar taxes imposed on, or measured by, gross receipts in connection 
with any payments made to or by such entity for operating or providing 
services to a Job Corps center. Such an operator or service provider 
shall not be liable to any State or subdivision of a State to collect 
or pay any sales, excise, use, or similar tax imposed on the sale to or 
use by such operator or service provider of any property, service, or 
other item in connection with the operation of or provision of services 
to a Job Corps center.
    (e) Management Fee.--The Secretary shall provide each operator and 
(in an appropriate case, as determined by the Secretary) service 
provider with an equitable and negotiated management fee of not less 
than 1 percent of the amount of the funding provided under the 
appropriate agreement specified in section 337.
    (f) Donations.--The Secretary may accept on behalf of the Job Corps 
or individual Job Corps centers charitable donations of cash or other 
assistance, including equipment and materials, if such donations are 
available for appropriate use for the purposes set forth in this 
subtitle.
    (g) Sale of Property.--Notwithstanding any other provision of law, 
if the Administrator of General Services sells a Job Corps center 
facility, the Administrator shall transfer the proceeds from the sale 
to the Secretary, who shall use the proceeds to carry out the Job Corps 
program.

SEC. 349. MANAGEMENT INFORMATION.

    (a) Financial Management Information System.--
            (1) In general.--The Secretary shall establish procedures 
        to ensure that each operator, and each service provider, 
        maintains a financial management information system that will 
        provide--
                    (A) accurate, complete, and current disclosures of 
                the costs of Job Corps operations; and
                    (B) sufficient data for the effective evaluation of 
                activities carried out through the Job Corps program.
            (2) Accounts.--Each operator and service provider shall 
        maintain funds received under this subtitle in accounts in a 
        manner that ensures timely and accurate reporting as required 
        by the Secretary.
            (3) Fiscal responsibility.--Operators shall remain fiscally 
        responsible and control costs, regardless of whether the funds 
        made available for Job Corps centers are incrementally 
        increased or decreased between fiscal years.
    (b) Audit.--
            (1) Access.--The Secretary, the Inspector General of the 
        Department of Labor, the Comptroller General of the United 
        States, and any of their duly authorized representatives, shall 
        have access to any books, documents, papers, and records of the 
        operators and service providers described in subsection (a) 
        that are pertinent to the Job Corps program, for purposes of 
        conducting surveys, audits, and evaluations of the operators 
        and service providers.
            (2) Surveys, audits, and evaluations.--The Secretary shall 
        survey, audit, or evaluate, or arrange for the survey, audit, 
        or evaluation of, the operators and service providers, using 
        Federal auditors or independent public accountants. The 
        Secretary shall conduct such surveys, audits, or evaluations 
        not less often than once every 3 years.
    (c) Information on Core Performance Measures.--
            (1) Establishment.--The Secretary shall, with continuity 
        and consistency from year to year, establish core performance 
        measures, and expected performance levels on the performance 
        measures, for Job Corps centers and the Job Corps program, 
        relating to--
                    (A) the number of graduates and the rate of such 
                graduation, analyzed by type of vocational training 
                received through the Job Corps program and by whether 
                the vocational training was provided by a local or 
                national service provider;
                    (B) the number of graduates who entered 
                unsubsidized employment related to the vocational 
                training received through the Job Corps program and the 
                number who entered unsubsidized employment not related 
                to the vocational training received, analyzed by 
                whether the vocational training was provided by a local 
                or national service provider and by whether the 
                placement in the employment was conducted by a local or 
                national service provider;
                    (C) the average wage received by graduates who 
                entered unsubsidized employment related to the 
                vocational training received through the Job Corps 
                program and the average wage received by graduates who 
                entered unsubsidized employment unrelated to the 
                vocational training received;
                    (D) the average wage received by graduates placed 
                in unsubsidized employment after completion of the Job 
                Corps program--
                            (i) on the first day of the employment;
                            (ii) 6 months after the first day of the 
                        employment; and
                            (iii) 12 months after the first day of the 
                        employment,
                analyzed by type of vocational training received 
                through the Job Corps program;
                    (E) the number of graduates who entered 
                unsubsidized employment and were retained in the 
                unsubsidized employment--
                            (i) 6 months after the first day of the 
                        employment; and
                            (ii) 12 months after the first day of the 
                        employment;
                    (F) the number of graduates who entered 
                unsubsidized employment--
                            (i) for 32 hours per week or more;
                            (ii) for not less than 20 but less than 32 
                        hours per week; and
                            (iii) for less than 20 hours per week;
                    (G) the number of graduates who entered 
                postsecondary education or advanced training programs, 
                including registered apprenticeship programs, as 
                appropriate; and
                    (H) the number of graduates who attained job 
                readiness and employment skills.
            (2) Performance of recruiters.--The Secretary shall also 
        establish performance measures, and expected performance levels 
        on the performance measures, for local and national recruitment 
        service providers serving the Job Corps program. The 
        performance measures shall relate to the number of enrollees 
        retained in the Job Corps program for 30 days and for 60 days 
        after initial placement in the program.
            (3) Report.--The Secretary shall collect, and annually 
        submit a report to the appropriate committees of Congress 
        containing, information on the performance of each Job Corps 
        center, and the Job Corps program, on the core performance 
        measures, as compared to the expected performance level for 
        each performance measure. The report shall also contain 
        information on the performance of the service providers 
        described in paragraph (2) on the performance measures 
        established under such paragraph, as compared to the expected 
        performance levels for the performance measures.
    (d) Additional Information.--The Secretary shall also collect, and 
submit in the report described in subsection (c), information on the 
performance of each Job Corps center, and the Job Corps program, 
regarding--
            (1) the number of enrollees served;
            (2) the average level of learning gains for graduates and 
        former enrollees;
            (3) the number of former enrollees and graduates who 
        entered the Armed Forces;
            (4) the number of former enrollees who entered 
        postsecondary education;
            (5) the number of former enrollees who entered unsubsidized 
        employment related to the vocational training received through 
        the Job Corps program and the number who entered unsubsidized 
        employment not related to the vocational training received;
            (6) the number of former enrollees and graduates who 
        obtained a secondary school diploma or its recognized 
        equivalent;
            (7) the number and percentage of dropouts from the Job 
        Corps program including the number dismissed under the zero 
        tolerance policy described in section 342(b); and
            (8) any additional information required by the Secretary.
    (e) Methods.--The Secretary may, to collect the information 
described in subsections (c) and (d), use methods described in subtitle 
A.
    (f) Performance Assessments and Improvements.--
            (1) Assessments.--The Secretary shall conduct an annual 
        assessment of the performance of each Job Corps center. Based 
        on the assessment, the Secretary shall take measures to 
        continuously improve the performance of the Job Corps program.
            (2) Performance improvement plans.--With respect to a Job 
        Corps center that fails to meet the expected levels of 
        performance relating to the core performance measures specified 
        in subsection (c), the Secretary shall develop and implement a 
        performance improvement plan. Such a plan shall require action 
        including--
                    (A) providing technical assistance to the center;
                    (B) changing the vocational training offered at the 
                center;
                    (C) changing the management staff of the center;
                    (D) replacing the operator of the center;
                    (E) reducing the capacity of the center;
                    (F) relocating the center; or
                    (G) closing the center.
            (3) Additional performance improvement plans.--In addition 
        to the performance improvement plans required under paragraph 
        (2), the Secretary may develop and implement additional 
        performance improvement plans. Such a plan shall require 
        improvements, including the actions described in paragraph (2), 
        for a Job Corps center that fails to meet criteria established 
        by the Secretary other than the expected levels of performance 
        described in paragraph (2).

SEC. 350. GENERAL PROVISIONS.

    The Secretary is authorized to--
            (1) disseminate, with regard to the provisions of section 
        3204 of title 39, United States Code, data and information in 
        such forms as the Secretary shall determine to be appropriate, 
        to public agencies, private organizations, and the general 
        public;
            (2) subject to section 347(b), collect or compromise all 
        obligations to or held by the Secretary and exercise all legal 
        or equitable rights accruing to the Secretary in connection 
        with the payment of obligations until such time as such 
        obligations may be referred to the Attorney General for suit or 
        collection; and
            (3) expend funds made available for purposes of this 
        subtitle--
                    (A) for printing and binding, in accordance with 
                applicable law (including regulation); and
                    (B) without regard to any other law (including 
                regulation), for rent of buildings and space in 
                buildings and for repair, alteration, and improvement 
                of buildings and space in buildings rented by the 
                Secretary, except that the Secretary shall not expend 
                funds under the authority of this subparagraph--
                            (i) except when necessary to obtain an 
                        item, service, or facility, that is required in 
                        the proper administration of this subtitle, and 
                        that otherwise could not be obtained, or could 
                        not be obtained in the quantity or quality 
                        needed, or at the time, in the form, or under 
                        the conditions in which the item, service, or 
                        facility is needed; and
                            (ii) prior to having given written 
                        notification to the Administrator of General 
                        Services (if the expenditure would affect an 
                        activity that otherwise would be under the 
                        jurisdiction of the General Services 
                        Administration) of the intention of the 
                        Secretary to make the expenditure, and the 
                        reasons and justifications for the expenditure.

SEC. 351. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out this subtitle 
such sums as may be necessary for each of the fiscal years 1999 through 
2004.

                     Subtitle C--National Programs

SEC. 361. NATIVE AMERICAN PROGRAMS.

    (a) Purpose and Policy.--
            (1) Purpose.--The purpose of this section is to support 
        workforce investment activities and supplemental services 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.--In this section:
            (1) Indian, indian tribe, and tribal organization.--The 
        terms ``Indian'', ``Indian tribe'', and ``tribal organization'' 
        have the meanings given such terms in subsections (d), (e), and 
        (l), respectively, of section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).
            (2) Native hawaiian and native hawaiian organization.--The 
        terms ``Native Hawaiian'' and ``Native Hawaiian organization'' 
        have the meanings given such terms in paragraphs (1) and (3), 
        respectively, of section 9212 of the Native Hawaiian Education 
        Act (20 U.S.C. 7912).
    (c) Programs Authorized.--
            (1) In general.--The Secretary shall, on a competitive 
        basis, make grants to, or enter into contracts or cooperative 
        agreements with, Indian tribes, tribal organizations, Indian-
        controlled organizations serving Indians, or Native Hawaiian 
        organizations to carry out the authorized activities described 
        in subsection (d).
            (2) Exception.--The competition for grants, contracts, or 
        cooperative agreements conducted under paragraph (1) shall be 
        conducted every 2 years, except that if a recipient of such a 
        grant, contract, or agreement has performed satisfactorily, the 
        Secretary may waive the requirements for such competition on 
        receipt from the recipient of a satisfactory 2-year program 
        plan for the succeeding 2-year period of the grant, contract, 
        or agreement.
    (d) Authorized Activities.--
            (1) In general.--Funds made available under subsection (c) 
        shall be used to carry out the activities described in 
        paragraph (2) that--
                    (A) are consistent with this section; and
                    (B) are necessary to meet the needs of Indians or 
                Native Hawaiians preparing to enter, reenter, or retain 
                unsubsidized employment.
            (2) Workforce investment activities and supplemental 
        services.--
                    (A) In general.--Funds made available under 
                subsection (c) shall be used for--
                            (i) building a comprehensive facility to be 
                        utilized by American Samoans residing in Hawaii 
                        for the co-location of federally funded and 
                        State funded workforce investment activities;
                            (ii) comprehensive workforce investment 
                        activities for Indians or Native Hawaiians; or
                            (iii) supplemental services for Indian or 
                        Native Hawaiian youth on or near Indian 
                        reservations and in Oklahoma, Alaska, or 
                        Hawaii.
                    (B) Special rule.--Notwithstanding any other 
                provision of this section, individuals who were 
                eligible to participate in programs under section 401 
                of the Job Training Partnership Act (29 U.S.C. 1671) 
                (as such section was in effect on the day before the 
                date of enactment of this Act) shall be eligible to 
                participate in an activity assisted under subparagraph 
                (A)(i).
    (e) Program Plan.--In order to receive a grant or enter into a 
contract or cooperative agreement under this section an entity 
described in subsection (c) shall submit to the Secretary a program 
plan that describes a 2-year strategy for meeting the needs of Indian 
or Native Hawaiian individuals, as appropriate, in the area served by 
such entity. Such plan shall--
            (1) be consistent with the purpose of this section;
            (2) identify the population to be served;
            (3) identify the education and employment needs of the 
        population to be served and the manner in which the activities 
        to be provided will strengthen the ability of the individuals 
        served to obtain or retain unsubsidized employment;
            (4) describe the activities to be provided and the manner 
        in which such activities are to be integrated with other 
        appropriate activities; and
            (5) describe, after the entity submitting the plan consults 
        with the Secretary, the performance measures to be used to 
        assess the performance of entities in carrying out the 
        activities assisted under this section.
    (f) Consolidation of Funds.--Each entity receiving assistance under 
subsection (c) may consolidate such assistance with assistance received 
from related programs in accordance with the provisions of the Indian 
Employment, Training and Related Services Demonstration Act of 1992 (25 
U.S.C. 3401 et seq.).
    (g) Nonduplicative and Nonexclusive Services.--Nothing in this 
section shall be construed--
            (1) to limit the eligibility of any entity described in 
        subsection (c) to participate in any activity offered by a 
        State or local entity under this Act; or
            (2) to preclude or discourage any agreement, between any 
        entity described in subsection (c) and any State or local 
        entity, to facilitate the provision of services by such entity 
        or to the population served by such entity.
    (h) Administrative Provisions.--
            (1) Organizational unit established.--The Secretary shall 
        designate a single organizational unit within the Department of 
        Labor that shall have primary responsibility for the 
        administration of the activities authorized under this section.
            (2) Regulations.--The Secretary shall consult with the 
        entities described in subsection (c) in--
                    (A) establishing regulations to carry out this 
                section, including performance measures for entities 
                receiving assistance under such subsection, taking into 
                account the economic circumstances of such entities; 
                and
                    (B) developing a funding distribution plan that 
                takes into consideration previous levels of funding 
                (prior to the date of enactment of this Act) to such 
                entities.
            (3) Waivers.--
                    (A) In general.--With respect to an entity 
                described in subsection (c), the Secretary, 
                notwithstanding any other provision of law, may, 
                pursuant to a request submitted by such entity that 
                meets the requirements established under paragraph (2), 
                waive any of the statutory or regulatory requirements 
                of this title that are inconsistent with the specific 
                needs of the entities described in such subsection, 
                except that the Secretary may not waive requirements 
                relating to wage and labor standards, worker rights, 
                participation and protection of participants, grievance 
                procedures, and judicial review.
                    (B) Request and approval.--An entity described in 
                subsection (c) that requests a waiver under 
                subparagraph (A) shall submit a plan to the Secretary 
                to improve the program of workforce investment 
                activities carried out by the entity, which plan shall 
                meet the requirements established by the Secretary and 
                shall be generally consistent with the requirements of 
                section 379(i)(4)(B).
            (4) Advisory council.--
                    (A) In general.--Using funds made available to 
                carry out this section, the Secretary shall establish a 
                Native American Employment and Training Council to 
                facilitate the consultation described in paragraph (2).
                    (B) Composition.--The Council shall be composed of 
                individuals, appointed by the Secretary, who are 
                representatives of the entities described in subsection 
                (c).
                    (C) Duties.--The Council shall advise the Secretary 
                on all aspects of the operation and administration of 
                the programs assisted under this section, including the 
                selection of the individual appointed as the head of 
                the unit established under paragraph (1).
                    (D) Personnel matters.--
                            (i) Compensation of members.--Members of 
                        the Council shall serve without compensation.
                            (ii) Travel expenses.--The members of the 
                        Council shall be allowed travel expenses, 
                        including per diem in lieu of subsistence, at 
                        rates authorized for employees of agencies 
                        under subchapter I of chapter 57 of title 5, 
                        United States Code, while away from their homes 
                        or regular places of business in the 
                        performance of services for the Council.
                            (iii) Administrative support.--The 
                        Secretary shall provide the Council with such 
                        administrative support as may be necessary to 
                        perform the functions of the Council.
                    (E) Chairperson.--The Council shall select a 
                chairperson from among its members.
                    (F) Meetings.--The Council shall meet not less than 
                twice each year.
                    (G) Application.--Section 14 of the Federal 
                Advisory Committee Act (5 U.S.C. App.) shall not apply 
                to the Council.
            (5) Technical assistance.--The Secretary, acting through 
        the unit established under paragraph (1), is authorized to 
        provide technical assistance to entities described in 
        subsection (c) that receive assistance under subsection (c) to 
        enable such entities to improve the activities authorized under 
        this section that are provided by such entities.

SEC. 362. MIGRANT AND SEASONAL FARMWORKER PROGRAMS.

    (a) In General.--Every 2 years, the Secretary shall, on a 
competitive basis, make grants to, or enter into contracts with, 
eligible entities to carry out the activities described in subsection 
(d).
    (b) Eligible Entities.--To be eligible to receive a grant or enter 
into a contract under this section, an entity shall have an 
understanding of the problems of eligible migrant and seasonal 
farmworkers (including dependents), a familiarity with the area to be 
served, and the ability to demonstrate a capacity to administer 
effectively a diversified program of workforce investment activities 
(including youth activities) and related assistance for eligible 
migrant and seasonal farmworkers.
    (c) Program Plan.--
            (1) In general.--To be eligible to receive a grant or enter 
        into a contract under this section, an entity described in 
        subsection (b) shall submit to the Secretary a plan that 
        describes a 2-year strategy for meeting the needs of eligible 
        migrant and seasonal farmworkers in the area to be served by 
        such entity.
            (2) Administration.--Grants and contracts awarded under 
        this section shall be centrally administered by the Department 
        of Labor and competitively awarded by the Secretary using 
        procedures consistent with standard Federal Government 
        competitive procurement policies.
            (3) Competition.--
                    (A) In general.--The competition for grants made 
                and contracts entered into under this section shall be 
                conducted every 2 years.
                    (B) Exception.--Notwithstanding subparagraph (A), 
                if a recipient of such a grant or contract has 
                performed satisfactorily under the terms of the grant 
                agreement or contract, the Secretary may waive the 
                requirement for such competition for such recipient 
                upon receipt from the recipient of a satisfactory 2-
                year plan described in paragraph (1) for the succeeding 
                2-year grant or contract period.
            (4) Contents.--Such plan shall--
                    (A) identify the education and employment needs of 
                the eligible migrant and seasonal farmworkers to be 
                served and the manner in which the workforce investment 
                activities (including youth activities) to be carried 
                out will strengthen the ability of the eligible migrant 
                and seasonal farmworkers to obtain or retain 
                unsubsidized employment or stabilize their unsubsidized 
                employment;
                    (B) describe the related assistance, including 
                supportive services, to be provided and the manner in 
                which such assistance and services are to be integrated 
                and coordinated with other appropriate services; and
                    (C) describe, after consultation with the 
                Secretary, the performance measures to be used to 
                assess the performance of such entity in carrying out 
                the activities assisted under this section.
    (d) Authorized Activities.--Funds made available under this section 
shall be used to carry out workforce investment activities (including 
youth activities) and provide related assistance for eligible migrant 
and seasonal farmworkers, which may include employment, training, 
educational assistance, literacy assistance, an English language 
program, worker safety training, supportive services, dropout 
prevention activities, follow-up services for those individuals placed 
in employment, self-employment and related business enterprise 
development education as needed by eligible migrant and seasonal 
farmworkers and identified pursuant to the plan required by subsection 
(c), and technical assistance relating to capacity enhancement in such 
areas as management information technology.
    (e) Consultation With Governors and Local Partnerships.--In making 
grants and entering into contracts under this section, the Secretary 
shall consult with the Governors and local partnerships of the States 
in which the eligible entities will carry out the activities described 
in subsection (d).
    (f) Regulations.--The Secretary shall consult with eligible migrant 
and seasonal farmworkers groups and States in establishing regulations 
to carry out this section, including performance measures for eligible 
entities that take into account the economic circumstances and 
demographics of eligible migrant and seasonal farmworkers.
    (g) Definitions.--In this section:
            (1) Disadvantaged.--The term ``disadvantaged'', used with 
        respect to a farmworker, means a farmworker whose income, for 
        12 consecutive months out of the 24 months prior to application 
        for the program involved, does not exceed the higher of--
                    (A) the poverty line (as defined in section 
                334(a)(2)(B)) for an equivalent period; or
                    (B) 70 percent of the lower living standard income 
                level, for an equivalent period.
            (2) Eligible migrant and seasonal farmworkers.--The term 
        ``eligible migrant and seasonal farmworkers'' means individuals 
        who are eligible migrant farmworkers or are eligible seasonal 
        farmworkers.
            (3) Eligible migrant farmworker.--The term ``eligible 
        migrant farmworker'' means--
                    (A) an eligible seasonal farmworker described in 
                paragraph (4)(A) whose agricultural labor requires 
                travel to a job site such that the farmworker is unable 
                to return to a permanent place of residence within the 
                same day; and
                    (B) a dependent of the farmworker described in 
                subparagraph (A).
            (4) Eligible seasonal farmworker.--The term ``eligible 
        seasonal farmworker'' means--
                    (A) a disadvantaged person who, for 12 consecutive 
                months out of the 24 months prior to application for 
                the program involved, has been primarily employed in 
                agricultural labor that is characterized by chronic 
                unemployment or underemployment; and
                    (B) a dependent of the person described in 
                subparagraph (A).

SEC. 363. VETERANS' WORKFORCE INVESTMENT PROGRAMS.

    (a) Authorization.--
            (1) In general.--The Secretary shall conduct, directly or 
        through grants or contracts, programs to meet the needs for 
        workforce investment activities of veterans with service-
        connected disabilities, veterans who have significant barriers 
        to employment, veterans who served on active duty in the armed 
        forces during a war or in a campaign or expedition for which a 
        campaign badge has been authorized, and recently separated 
        veterans.
            (2) Conduct of programs.--Programs supported under this 
        section may be conducted through grants and contracts with 
        public agencies and private nonprofit organizations, including 
        recipients of Federal assistance under other provisions of this 
        title, that the Secretary determines have an understanding of 
        the unemployment problems of veterans described in paragraph 
        (1), familiarity with the area to be served, and the capability 
        to administer effectively a program of workforce investment 
        activities for such veterans.
            (3) Required activities.--Programs supported under this 
        section shall include--
                    (A) activities to enhance services provided to 
                veterans by other providers of workforce investment 
                activities funded by Federal, State, or local 
                government;
                    (B) activities to provide workforce investment 
                activities to such veterans that are not adequately 
                provided by other public providers of workforce 
                investment activities; and
                    (C) outreach and public information activities to 
                develop and promote maximum job and job training 
                opportunities for such veterans and to inform such 
                veterans about employment, job training, on-the-job 
                training and educational opportunities under this 
                title, under title 38, United States Code, and under 
                other provisions of law, which activities shall be 
                coordinated with activities provided through the one-
                stop customer service centers.
    (b) Administration of Programs.--
            (1) In general.--The Secretary shall administer programs 
        supported under this section through the Assistant Secretary 
        for Veterans' Employment and Training.
            (2) Additional responsibilities.--In carrying out 
        responsibilities under this section, the Assistant Secretary 
        for Veterans' Employment and Training shall--
                    (A) be responsible for the awarding of grants and 
                contracts and the distribution of funds under this 
                section and for the establishment of appropriate fiscal 
                controls, accountability, and program performance 
                measures for recipients of grants and contracts under 
                this section; and
                    (B) consult with the Secretary of Veterans Affairs 
                and take steps to ensure that programs supported under 
                this section are coordinated, to the maximum extent 
                feasible, with related programs and activities 
                conducted under title 38, United States Code, including 
                programs and activities conducted under subchapter II 
                of chapter 77 of such title, chapters 30, 31, 32, and 
                34 of such title, and sections 1712A, 1720A, 3687, and 
                4103A of such title.

SEC. 364. YOUTH OPPORTUNITY GRANTS.

    (a) Grants.--
            (1) In general.--Using funds made available under section 
        302(b)(3)(A), the Secretary shall make grants to eligible local 
        partnerships and eligible entities described in subsection (d) 
        to provide activities described in subsection (b) for youth to 
        increase the long-term employment of eligible youth who live in 
        empowerment zones, enterprise communities, and high poverty 
        areas and who seek assistance.
            (2) Grant period.--The Secretary may make a grant under 
        this section for a 1-year period, and may renew the grant for 
        each of the 4 succeeding years.
            (3) Grant awards.--In making grants under this section, the 
        Secretary shall ensure that grants are distributed equitably 
        among local partnerships and entities serving urban areas and 
        local partnerships and entities serving rural areas, taking 
        into consideration the poverty rate in such urban and rural 
        areas, as described in subsection (c)(3)(B).
    (b) Use of Funds.--
            (1) In general.--A local partnership or entity that 
        receives a grant under this section shall use the funds made 
        available through the grant to provide activities that meet the 
        requirements of section 316, except as provided in paragraph 
        (2), as well as youth development activities such as activities 
        relating to leadership development, citizenship, and community 
        service, and recreation activities.
            (2) Intensive placement and followup services.--In 
        providing activities under this section, a local partnership or 
        entity shall provide--
                    (A) intensive placement services; and
                    (B) followup services for not less than 24 months 
                after the completion of participation in the other 
                activities described in this subsection, as 
                appropriate.
    (c) Eligible Local Partnerships.--To be eligible to receive a grant 
under this section, a local partnership shall serve a community that--
            (1) has been designated as an empowerment zone or 
        enterprise community under section 1391 of the Internal Revenue 
        Code of 1986;
            (2)(A) is a State without a zone or community described in 
        paragraph (1); and
            (B) has been designated as a high poverty area by the 
        Governor of the State; or
            (3) is 1 of 2 areas in a State that--
                    (A) have been designated by the Governor as areas 
                for which a local partnership may apply for a grant 
                under this section; and
                    (B) meet the poverty rate criteria set forth in 
                subsections (a)(4), (b), and (d) of section 1392 of the 
                Internal Revenue Code of 1986.
    (d) Eligible Entities.--To be eligible to receive a grant under 
this section, an entity (other than a local partnership) shall--
            (1) be a recipient of financial assistance under section 
        361; and
            (2) serve a community that--
                    (A) meets the poverty rate criteria set forth in 
                subsections (a)(4), (b), and (d) of section 1392 of the 
                Internal Revenue Code of 1986; and
                    (B) is located on an Indian reservation.
    (e) Application.--To be eligible to receive a grant under this 
section, a local partnership or entity shall submit an application to 
the Secretary at such time, in such manner, and containing such 
information as the Secretary may require, including--
            (1) a description of the activities that the local 
        partnership or entity will provide under this section to youth 
        in the community described in subsection (c);
            (2) a description of the performance measures negotiated 
        under subsection (f), and the manner in which the local 
        partnerships or entities will carry out the activities to meet 
        the performance measures;
            (3) a description of the manner in which the activities 
        will be linked to activities described in section 316; and
            (4) a description of the community support, including 
        financial support through leveraging additional public and 
        private resources, for the activities.
    (f) Performance Measures.--
            (1) In general.--The Secretary shall negotiate and reach 
        agreement with the local partnership or entity on performance 
        measures for the indicators of performance referred to in 
        paragraphs (2) and (3) of section 321(b) that will be used to 
        evaluate the performance of the local partnership or entity in 
        carrying out the activities described in subsection (b). Each 
        local performance measure shall consist of such a indicator of 
        performance, and a performance level referred to in paragraph 
        (2).
            (2) Performance levels.--The Secretary shall negotiate and 
        reach agreement with the local partnership or entity regarding 
        the levels of performance expected to be achieved by the local 
        partnership or entity on the indicators of performance.
    (g) Role Model Academy Project.--
            (1) In general.--Using the funds made available pursuant to 
        section 302(b)(3)(A)(iv) for fiscal year 1999, the Secretary 
        shall provide assistance to an entity to carry out a project 
        establishing a role model academy for out-of-school youth.
            (2) Residential center.--The entity shall use the 
        assistance to establish an academy that consists of a 
        residential center located on the site of a military 
        installation closed or realigned pursuant to a law providing 
        for closures and realignments of such installations.
            (3) Services.--The academy established pursuant to this 
        subsection shall provide services that--
                    (A) utilize a military style model that emphasizes 
                leadership skills and discipline, or another model of 
                demonstrated effectiveness; and
                    (B) include vocational training, secondary school 
                course work leading to a secondary school diploma or 
                recognized equivalent, and the use of mentors who serve 
                as role models and who provide academic training and 
                career counseling to the youth.

SEC. 365. INCENTIVE GRANTS.

    (a) In General.--Effective July 1, 2000, the Secretary may make 
grants to States that exceed the expected levels of performance for 
performance measures established under this Act.
    (b) Use of Funds.--A State that receives an incentive grant under 
this section shall use the funds made available through the grant to 
carry out innovative vocational education, adult education and 
literacy, or workforce investment activity programs, as determined by 
the State.
    (c) Incentive Grant Regulations.--The Secretary of Labor and the 
Secretary of Education shall jointly promulgate 1 set of regulations 
for incentive grants under sections 116 and 243 and this section.

SEC. 366. TECHNICAL ASSISTANCE.

    (a) Transition Assistance.--The Secretary shall provide technical 
assistance to assist States in making transitions from carrying out 
activities under provisions described in section 391 to carrying out 
activities under this title.
    (b) Performance Improvement.--
            (1) General assistance.--
                    (A) Authority.--The Secretary--
                            (i) shall provide technical assistance to 
                        States who fail to meet \1/3\ or more of the 
                        State performance measures for a program year; 
                        and
                            (ii) may provide technical assistance to 
                        other States, local areas, and recipients of 
                        financial assistance under any of sections 361 
                        through 364 to promote the continuous 
                        improvement of the programs and activities 
                        authorized under this title.
                    (B) Form of assistance.--In carrying out this 
                paragraph on behalf of a State, or recipient of 
                financial assistance under any of sections 361 through 
                364, the Secretary, after consultation with the State 
                or grant recipient, may award grants and enter into 
                contracts and cooperative agreements.
                    (C) Limitation.--Grants or contracts awarded under 
                this paragraph that are for amounts in excess of 
                $50,000 shall only be awarded on a competitive basis.
            (2) Dislocated worker technical assistance.--
                    (A) Authority.--Of the amounts available pursuant 
                to section 302(a)(2), the Secretary shall reserve not 
                more than 5 percent of such amounts to provide 
                technical assistance to States that do not meet the 
                State performance measures described in section 321(b) 
                with respect to employment and training activities for 
                dislocated workers. Using such reserved funds, the 
                Secretary may provide such assistance to other States, 
                local areas, business and labor organizations, and 
                other entities involved in providing assistance to 
                dislocated workers, to promote the continuous 
                improvement of assistance provided to dislocated 
                workers, under this title.
                    (B) Training.--Amounts reserved under this 
                paragraph may be used to provide for the training of 
                staff, including specialists, who provide rapid 
                response services. Such training shall include 
                instruction in proven methods of promoting, 
                establishing, and assisting labor-management 
                committees. Such projects shall be administered through 
                the dislocated worker office described in section 
                369(b).

SEC. 367. DEMONSTRATION, PILOT, MULTISERVICE, RESEARCH, AND MULTISTATE 
              PROJECTS.

    (a) Strategic Plan.--
            (1) In general.--After consultation with States, 
        localities, and other interested parties, the Secretary shall, 
        every 2 years, publish in the Federal Register, a plan that 
        describes the demonstration and pilot (including dislocated 
        worker demonstration and pilot), multiservice, research, and 
        multistate project priorities of the Department of Labor 
        concerning employment and training for the 5-year period 
        following the submission of the plan. Copies of the plan shall 
        be transmitted to the appropriate committees of Congress.
            (2) Limitation.--With respect to a plan published under 
        paragraph (1), the Secretary shall ensure that research 
        projects (referred to in subsection (d)) are considered for 
        incorporation into the plan only after projects referred to in 
        subsections (b), (c), and (e) have been considered and 
        incorporated into the plan, and are funded only as funds remain 
        to permit the funding of such research projects.
            (3) Factors.--The plan published under paragraph (1) shall 
        contain strategies to address national employment and training 
        problems and take into account factors such as--
                    (A) the availability of existing research (as of 
                the date of the publication);
                    (B) the need to ensure results that have interstate 
                validity;
                    (C) the benefits of economies of scale and the 
                efficiency of proposed projects; and
                    (D) the likelihood that the results of the projects 
                will be useful to policymakers and stakeholders in 
                addressing employment and training problems.
    (b) Demonstration and Pilot Projects.--
            (1) In general.--Under a plan published under subsection 
        (a), the Secretary shall, through grants or contracts, carry 
        out demonstration and pilot projects for the purpose of 
        developing and implementing techniques and approaches, and 
        demonstrating the effectiveness of specialized methods, in 
        addressing employment and training needs. Such projects shall 
        include the provision of direct services to individuals to 
        enhance employment opportunities and an evaluation component.
            (2) Limitations.--
                    (A) Competitive awards.--Grants or contracts 
                awarded for carrying out demonstration and pilot 
                projects under this subsection shall be awarded only on 
                a competitive basis, except that a noncompetitive award 
                may be made in the case of a project that is funded 
                jointly with other public or private sector entities 
                that provide a substantial portion of the funding for 
                the project.
                    (B) Eligible entities.--Grants or contracts may be 
                awarded under this subsection only to--
                            (i) entities with recognized expertise in--
                                    (I) conducting national 
                                demonstration projects;
                                    (II) utilizing state-of-the-art 
                                demonstration methods; and
                                    (III) conducting evaluations of 
                                employment and training projects; or
                            (ii) State and local entities with 
                        expertise in operating or overseeing employment 
                        and training programs.
                    (C) Time limits.--The Secretary shall establish 
                appropriate time limits for carrying out demonstration 
                and pilot projects under this subsection.
    (c) Multiservice Projects.--
            (1) In general.--Under a plan published under subsection 
        (a), the Secretary shall, through grants or contracts, carry 
        out multiservice projects--
                    (A) that will test an array of approaches to the 
                provision of employment and training services to a 
                variety of targeted populations;
                    (B) in which the entity carrying out the project, 
                in conjunction with employers, organized labor, and 
                other groups such as the disability community, will 
                design, develop, and test various training approaches 
                in order to determine effective practices; and
                    (C) that will assist in the development and 
                replication of effective service delivery strategies 
                for targeted populations for the national employment 
                and training system as a whole.
            (2) Limitations.--
                    (A) Competitive awards.--Grants or contracts 
                awarded for carrying out multiservice projects under 
                this subsection shall be awarded only on a competitive 
                basis.
                    (B) Time limits.--A grant or contract shall not be 
                awarded under this subsection to the same organization 
                for more than 3 consecutive years unless such grant or 
                contract is competitively reevaluated within such 
                period.
    (d) Research.--
            (1) In general.--Under a plan published under subsection 
        (a), the Secretary shall, through grants or contracts, carry 
        out research projects that will contribute to the solution of 
        employment and training problems in the United States.
            (2) Formula improvement study and report.--
                    (A) Study.--The Secretary shall conduct a 2-year 
                study concerning improvements in the formulas described 
                in section 302(b)(1)(B) and paragraphs (3)(A) and 
                (4)(A) of section 306(b) (regarding distributing funds 
                under subtitle A to States and local areas for adult 
                employment and training activities). In conducting the 
                study, the Secretary shall examine means of improving 
                the formulas by--
                            (i) developing formulas based on 
                        statistically reliable data;
                            (ii) developing formulas that are 
                        consistent with the goals and objectives of 
                        this title; and
                            (iii) developing formulas based on 
                        organizational and financial stability of 
                        statewide partnerships and local partnerships.
                    (B) Report.--The Secretary shall prepare and submit 
                to Congress a report containing the results of the 
                study, including recommendations for improved formulas.
            (3) Limitations.--
                    (A) Competitive awards.--Grants or contracts 
                awarded for carrying out research projects under this 
                subsection in amounts that exceed $50,000 shall be 
                awarded only on a competitive basis, except that a 
                noncompetitive award may be made in the case of a 
                project that is funded jointly with other public or 
                private sector entities that provide a substantial 
                portion of the funding for the project.
                    (B) Eligible entities.--Grants or contracts shall 
                be awarded under this subsection only to entities with 
                nationally recognized expertise in the methods, 
                techniques, and knowledge of the social sciences.
                    (C) Time limits.--The Secretary shall establish 
                appropriate time limits for the duration of research 
                projects funded under this subsection.
    (e) Multistate Projects.--
            (1) In general.--
                    (A) Authority.--Under a plan published under 
                subsection (a), the Secretary may, through grants or 
                contracts, carry out multistate projects that require 
                demonstrated expertise that is available at the 
                national level to effectively disseminate best 
                practices and models for implementing employment and 
                training services, address the specialized employment 
                and training needs of particular service populations, 
                or address industrywide skill shortages.
                    (B) Design of grants.--Grants or contracts awarded 
                under this subsection shall be designed to obtain 
                information relating to the provision of services under 
                different economic conditions or to various demographic 
                groups in order to provide guidance at the national and 
                State levels about how best to administer specific 
                employment and training services.
            (2) Limitations.--
                    (A) Competitive awards.--Grants or contracts 
                awarded for carrying out multistate projects under this 
                subsection shall be awarded only on a competitive 
                basis.
                    (B) Time limits.--A grant or contract shall not be 
                awarded under this subsection to the same organization 
                for more than 3 consecutive years unless such grant or 
                contract is competitively reevaluated within such 
                period.
    (f) Dislocated Worker Projects.--Of the amount made available 
pursuant to section 302(a)(2)(A) for any program year, the Secretary 
shall use not more than 10 percent of such amount to carry out 
demonstration and pilot projects, multiservice projects, and multistate 
projects, relating to the employment and training needs of dislocated 
workers. Of the requirements of this section, such projects shall be 
subject only to the provisions relating to review and evaluation of 
applications under subsection (g). Such projects may include 
demonstration and pilot projects relating to promoting self-employment, 
promoting job creation, averting dislocations, assisting dislocated 
farmers, assisting dislocated fishermen, and promoting public works. 
Such projects shall be administered through the dislocated worker 
office described in section 369(b).
    (g) Peer Review.--The Secretary shall utilize a peer review process 
to--
            (1) review and evaluate all applications for grants and 
        contracts in amounts that exceed $100,000 that are submitted 
        under this section; and
            (2) review and designate exemplary and promising programs 
        under this section.

SEC. 368. EVALUATIONS.

    (a) Programs and Activities Carried Out Under This Title.--For the 
purpose of improving the management and effectiveness of programs and 
activities carried out under this title, the Secretary shall provide 
for the continuing evaluation of the programs and activities. Such 
evaluations shall address--
            (1) the general effectiveness of such programs and 
        activities in relation to their cost;
            (2) the effectiveness of the performance measures relating 
        to such programs and activities;
            (3) the effectiveness of the structure and mechanisms for 
        delivery of services through such programs and activities;
            (4) the impact of the programs and activities on the 
        community and participants involved;
            (5) the impact of such programs and activities on related 
        programs and activities;
            (6) the extent to which such programs and activities meet 
        the needs of various demographic groups; and
            (7) such other factors as may be appropriate.
    (b) Other Programs and Activities.--The Secretary may conduct 
evaluations of other federally funded employment-related programs and 
activities, including programs and activities administered under--
            (1) the Wagner-Peyser Act (29 U.S.C. 49 et seq.);
            (2) the Older Americans Act of 1965 (42 U.S.C. 3001 et 
        seq.);
            (3) chapter 2 of title II of the Trade Act of 1974 (19 
        U.S.C. 2271 et seq.); and
            (4) State unemployment compensation laws (in accordance 
        with applicable Federal law).
    (c) Techniques.--Evaluations conducted under this section shall 
utilize appropriate methodology and research designs, including the use 
of control groups chosen by scientific random assignment methodologies. 
The Secretary shall conduct as least 1 multisite control group 
evaluation under this section by the end of fiscal year 2004.
    (d) Reports.--The entity carrying out an evaluation described in 
subsection (a) or (b) shall prepare and submit to the Secretary a draft 
report and a final report containing the results of the evaluation.
    (e) Reports to Congress.--Not later than 30 days after the 
completion of such a draft report, the Secretary shall transmit the 
draft report to the appropriate committees of Congress. Not later than 
60 days after the completion of such a final report, the Secretary 
shall transmit the final report to the appropriate committees of 
Congress.
    (f) Coordination.--The Secretary shall ensure the coordination of 
evaluations carried out by States pursuant to section 321(e) with the 
evaluations carried out under this section.

SEC. 369. NATIONAL EMERGENCY GRANTS.

    (a) In General.--The Secretary is authorized to award national 
emergency grants in a timely manner--
            (1) to an entity described in subsection (c) to provide 
        employment and training assistance to workers affected by major 
        economic dislocations, such as plant closures, mass layoffs, or 
        closures and realignments of military installations;
            (2) to provide assistance to the Governor of any State 
        within the boundaries of which is an area that has suffered an 
        emergency or a major disaster as defined in paragraphs (1) and 
        (2), respectively, of section 102 of The Robert T. Stafford 
        Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122 
        (1) and (2)) (referred to in this section as the ``disaster 
        area'') to provide disaster relief employment in the area; and
            (3) to provide additional assistance to a State or local 
        partnership for eligible dislocated workers in a case in which 
        the State or local partnership has expended the funds provided 
        under this section to carry out activities described in 
        paragraphs (1) and (2) and can demonstrate the need for 
        additional funds to provide appropriate services for such 
        workers, in accordance with requirements prescribed by the 
        Secretary.
    (b) Administration.--The Secretary shall designate a dislocated 
worker office to coordinate the functions of the Secretary under this 
title relating to employment and training activities for dislocated 
workers, including activities carried out under the national emergency 
grants.
    (c) Employment and Training Assistance Requirements.--
            (1) Grant recipient eligibility.--
                    (A) Application.--To be eligible to receive a grant 
                under subsection (a)(1), an entity shall submit an 
                application to the Secretary at such time, in such 
                manner, and containing such information as the 
                Secretary may require.
                    (B) Eligible entity.--In this paragraph, the term 
                ``entity'' means a State, a local partnership, an 
                entity described in section 361(c), an employer or 
                employer association, a labor organization, and an 
                entity determined to be eligible by the Governor of the 
                State involved.
            (2) Participant eligibility.--
                    (A) In general.--In order to be eligible to receive 
                employment and training assistance under a national 
                emergency grant awarded pursuant to subsection (a)(1), 
                an individual shall be--
                            (i) a dislocated worker;
                            (ii) a civilian employee of the Department 
                        of Defense employed at a military installation 
                        that is being closed, or that will undergo 
                        realignment, within the next 24 months after 
                        the date of the determination of eligibility;
                            (iii) an individual who is employed in a 
                        nonmanagerial position with a Department of 
                        Defense contractor, who is determined by the 
                        Secretary of Defense to be at-risk of 
                        termination from employment as a result of 
                        reductions in defense expenditures, and whose 
                        employer is converting operations from defense 
                        to nondefense applications in order to prevent 
                        worker layoffs; or
                            (iv) a member of the Armed Forces who--
                                    (I) was on active duty or full-time 
                                National Guard duty;
                                    (II)(aa) is involuntarily separated 
                                (as defined in section 1141 of title 
                                10, United States Code) from active 
                                duty or full-time National Guard duty; 
                                or
                                    (bb) is separated from active duty 
                                or full-time National Guard duty 
                                pursuant to a special separation 
                                benefits program under section 1174a of 
                                title 10, United States Code, or the 
                                voluntary separation incentive program 
                                under section 1175 of that title;
                                    (III) is not entitled to retired or 
                                retained pay incident to the separation 
                                described in subclause (II); and
                                    (IV) applies for such employment 
                                and training assistance before the end 
                                of the 180-day period beginning on the 
                                date of that separation.
                    (B) Retraining assistance.--The individuals 
                described in subparagraph (A)(iii) shall be eligible 
                for retraining assistance to upgrade skills by 
                obtaining marketable skills needed to support the 
                conversion described in subparagraph (A)(iii).
                    (C) Additional requirements.--The Secretary shall 
                establish and publish additional requirements related 
                to eligibility for employment and training assistance 
                under the national emergency grants to ensure effective 
                use of the funds available for this purpose.
                    (D) Definitions.--In this paragraph, the terms 
                `military institution' and `realignment' have the 
                meanings given the terms in section 2910 of the Defense 
                Base Closure and Realignment Act of 1990 (Public Law 
                101-510; 10 U.S.C. 2687 note).
    (d) Disaster Relief Employment Assistance Requirements.--
            (1) In general.--Funds made available under subsection 
        (a)(2)--
                    (A) shall be used to provide disaster relief 
                employment on projects that provide food, clothing, 
                shelter, and other humanitarian assistance for disaster 
                victims, and projects regarding demolition, cleaning, 
                repair, renovation, and reconstruction of damaged and 
                destroyed structures, facilities, and lands located 
                within the disaster area;
                    (B) may be expended through public and private 
                agencies and organizations engaged in such projects; 
                and
                    (C) may be expended to provide the services 
                authorized under section 315(c).
            (2) Eligibility.--An individual shall be eligible to be 
        offered disaster relief employment under subsection (a)(2) if 
        such individual is a dislocated worker, is a long-term 
        unemployed individual, or is temporarily or permanently laid 
        off as a consequence of the disaster.
            (3) Limitations on disaster relief employment.--No 
        individual shall be employed under subsection (a)(2) for more 
        than 6 months for work related to recovery from a single 
        natural disaster.

SEC. 370. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--
            (1) Native american programs; migrant and seasonal 
        farmworker programs; veterans' employment programs.--Subject to 
        subsection (b)(1), there are authorized to be appropriated to 
        carry out sections 361 through 363 such sums as may be 
        necessary for each of the fiscal years 1999 through 2004.
            (2) Incentive grants; technical assistance; demonstration 
        and pilot projects; evaluations.--Subject to subsection (b)(2), 
        there are authorized to be appropriated to carry out sections 
        365 through 368, such sums as may be necessary for each of 
        fiscal years 1999 through 2004.
    (b) Reservations.--
            (1) Native american programs; migrant and seasonal 
        farmworker programs; veterans' employment programs.--Of the 
        amount appropriated under subsection (a)(1) for a fiscal year, 
        the Secretary shall--
                    (A) reserve not less than $55,000,000 for carrying 
                out section 361;
                    (B) reserve not less than $70,000,000 for carrying 
                out section 362; and
                    (C) reserve not less than $7,300,000 for carrying 
                out section 363.
            (2) Incentive grants; technical assistance; demonstration 
        and pilot projects; evaluations.--Of the amount appropriated 
        under subsection (a)(2) for a fiscal year, the Secretary 
        shall--
                    (A)(i) for fiscal year 1999, reserve no funds for 
                carrying out section 365; and
                    (ii) for each of fiscal years 2000 through 2004, 
                reserve 36.8 percent for carrying out section 365;
                    (B)(i) for fiscal year 1999, reserve 61.8 percent 
                for carrying out section 366 (other than section 
                366(b)(2)); and
                    (ii) for each of fiscal years 2000 through 2004, 
                reserve 25 percent for carrying out section 366 (other 
                than section 366(b)(2));
                    (C) reserve 24.2 percent of a carrying out section 
                367 (other than 367(f)); and
                    (D) reserve 14 percent for carrying out section 
                368.

                       Subtitle D--Administration

SEC. 371. REQUIREMENTS AND RESTRICTIONS.

    (a) Benefits.--
            (1) Wages.--
                    (A) In general.--Individuals in on-the-job training 
                or individuals employed in programs and activities 
                carried out under this title shall be compensated at 
                the same rates, including periodic increases, as 
                trainees or employees who are similarly situated in 
                similar occupations by the same employer and who have 
                similar skills. Such rates shall be in accordance with 
                applicable law, but in no event less than the higher of 
                the rate specified in section 6(a)(1) of the Fair Labor 
                Standards Act of 1938 (29 U.S.C. 206(a)(1)) or the 
                applicable State or local minimum wage law.
                    (B) Construction.--The reference in subparagraph 
                (A) to section 6(a)(1) of the Fair Labor Standards Act 
                of 1938--
                            (i) shall be deemed to be a reference to 
                        section 6(c) of that Act (29 U.S.C. 206(c)) for 
                        individuals in the Commonwealth of Puerto Rico;
                            (ii) shall be deemed to be a reference to 
                        section 6(a)(3) (29 U.S.C. 206(a)(3)) of that 
                        Act for individuals in American Samoa; and
                            (iii) shall not be applicable for 
                        individuals in other territorial jurisdictions 
                        in which section 6 of the Fair Labor Standards 
                        Act of 1938 (29 U.S.C. 206) does not apply.
            (2) Treatment of allowances, earnings, and payments.--
        Allowances, earnings, and payments to individuals participating 
        in programs and activities carried out under this title shall 
        not be considered to be income for the purposes of determining 
        eligibility for, and the amount of income transfer and in-kind 
        aid furnished under, any Federal or federally assisted program 
        based on need, other than as provided under the Social Security 
        Act (42 U.S.C. 301 et seq.).
    (b) Labor Standards.--
            (1) Displacement.--
                    (A) Prohibition.--A participant in a program or 
                activity authorized under this title (referred to in 
                this subsection as a ``specified activity'') shall not 
                displace (including a partial displacement, such as a 
                reduction in the hours of nonovertime work, wages, or 
                employment benefits) any currently employed employee 
                (as of the date of the participation).
                    (B) Prohibition on impairment of contracts.--A 
                specified activity shall not impair an existing 
                contract for services or collective bargaining 
                agreement, and no such activity that would be 
                inconsistent with the terms of a collective bargaining 
                agreement shall be undertaken without the written 
                concurrence of the labor organization and employer 
                concerned.
            (2) Other prohibitions.--A participant in a specified 
        activity shall not be employed in a job--
                    (A) when any other individual is on layoff from the 
                same or any substantially equivalent job with the 
                participating employer;
                    (B) when the employer has terminated the employment 
                of any regular employee or otherwise reduced the 
                workforce of the employer with the intention of filling 
                the vacancy so created with the participant; or
                    (C) that is created in a promotional line that will 
                infringe in any way on the promotional opportunities of 
                currently employed individuals (as of the date of the 
                participation).
            (3) Health and safety.--Health and safety standards 
        established under Federal and State law otherwise applicable to 
        working conditions of employees shall be equally applicable to 
        working conditions of participants engaged in specified 
        activities. To the extent that a State workers' compensation 
        law applies, workers' compensation shall be provided to 
        participants on the same basis as the compensation is provided 
        to other individuals in the State in similar employment.
            (4) Employment conditions.--Individuals in on-the-job 
        training or individuals employed in programs and activities 
        carried out under this title, shall be provided benefits and 
        working conditions at the same level and to the same extent as 
        other trainees or employees working a similar length of time 
        and doing the same type of work.
            (5) Opportunity to submit comments.--Interested members of 
        the public, including representatives of labor organizations 
        and businesses, shall be provided an opportunity to submit 
        comments to the Secretary with respect to programs and 
        activities proposed to be funded under subtitle A.
            (6) No impact on union organizing.--Each recipient of funds 
        under this title shall provide to the Secretary assurances that 
        none of such funds will be used to assist, promote, or deter 
        union organizing.
    (c) Grievance Procedure.--
            (1) In general.--Each State receiving an allotment under 
        section 302 and each recipient of financial assistance under 
        section 361 or 362 shall establish and maintain a procedure for 
        grievances or complaints alleging violations of the 
        requirements of this title from participants and other 
        interested or affected parties. Such procedure shall include an 
        opportunity for a hearing and be completed within 60 days after 
        the date of the filing of the grievance or complaint.
            (2) Investigation.--
                    (A) In general.--The Secretary shall investigate an 
                allegation of a violation described in paragraph (1) 
                if--
                            (i) a decision relating to such violation 
                        has not been reached within 60 days after the 
                        date of the filing of the grievance or 
                        complaint and either party appeals the decision 
                        to the Secretary; or
                            (ii) a decision relating to such violation 
                        has been reached within 60 days after the date 
                        of the filing and the party to which such 
                        decision is adverse appeals the decision to the 
                        Secretary.
                    (B) Additional requirement.--The Secretary shall 
                make a final determination relating to an appeal made 
                under subparagraph (A) no later than 120 days after the 
                date of such appeal.
            (3) Remedies.--Remedies that may be imposed under this 
        subsection for a violation of any requirement of this title 
        shall be limited--
                    (A) to suspension or termination of payments under 
                this title to a person that has violated any 
                requirement of this title;
                    (B) to prohibition of placement of a participant 
                with an employer that has violated any requirement of 
                this title;
                    (C) where applicable, to reinstatement of an 
                employee, payment of lost wages and benefits, and 
                reestablishment of other relevant terms, conditions, 
                and privileges of employment; and
                    (D) where appropriate, to other equitable relief.
            (4) Construction.--Nothing in paragraph (3) shall be 
        construed to prohibit a grievant or complainant from pursuing a 
        remedy authorized under another Federal, State, or local law 
        for a violation of this title.
    (d) Relocation.--
            (1) Prohibition on use of funds to encourage or induce 
        relocation.--No funds provided under this title shall be used, 
        or proposed for use, to encourage or induce the relocation of a 
        business or part of a business if such relocation would result 
        in a loss of employment for any employee of such business at 
        the original location and such original location is within the 
        United States.
            (2) Prohibition on use of funds for customized or skill 
        training and related activities after relocation.--No funds 
        provided under this title for an employment and training 
        activity shall be used for customized or skill training, on-
        the-job training, or company-specific assessments of job 
        applicants or employees, for any business or part of a business 
        that has relocated, until the date that is 120 days after the 
        date on which such business commences operations at the new 
        location, if the relocation of such business or part of a 
        business results in a loss of employment for any employee of 
        such business at the original location and such original 
        location is within the United States.
            (3) Repayment.--If the Secretary determines that a 
        violation of paragraph (1) or (2) has occurred, the Secretary 
        shall require the State that has violated such paragraph to 
        repay to the United States an amount equal to the amount 
        expended in violation of such paragraph.
    (e) Limitation on Use of Funds.--No funds available under this 
title shall be used for employment generating activities, economic 
development activities, activities for the capitalization of 
businesses, investment in contract bidding resource centers, or similar 
activities. No funds available under subtitle A shall be used for 
foreign travel.
    (f) Drug Testing Limitations on Participants in Training 
Services.--
            (1) Finding.--Congress finds that--
                    (A) the possession, distribution, and use of drugs 
                by participants in training services should not be 
                tolerated, and that such use prevents participants from 
                making full use of the benefits extended through 
                training services at the expense of taxpayers; and
                    (B) applicants and participants should be tested 
                for illegal drug use, in order to maximize the training 
                services and assistance provided under this title.
            (2) Drug tests.--Each eligible provider of training 
        services shall administer a drug test--
                    (A) on a random basis, to individuals who apply to 
                participate in training services; and
                    (B) to a participant in training services, on 
                reasonable suspicion of drug use by the participant.
            (3) Eligibility of applicants.--In order for such an 
        applicant to be eligible to participate in training services, 
        the applicant shall agree to submit to a drug test administered 
        as described in paragraph (2)(A) and, if the test is 
        administered to the applicant, shall pass the test.
            (4) Eligibility of participants.--In order for such a 
        participant to remain eligible to participate in training 
        services, the participant shall agree to submit to a drug test 
        administered as described in paragraph (2)(B) and, if the test 
        is administered to the participant, shall pass the test. If a 
        participant refuses to submit to the drug test, or fails the 
        drug test, the eligible provider shall dismiss the participant 
        from participation in training services.
            (5) Reapplication.--
                    (A) In general.--Except as provided in subparagraph 
                (B), an individual who is an applicant and is 
                disqualified from eligibility under paragraph (3), or 
                who is a participant and is dismissed under paragraph 
                (4), may reapply, not earlier than 6 months after the 
                date of the disqualification or dismissal, to 
                participate in training services. If the individual 
                demonstrates that the individual has completed a drug 
                treatment program and passed a drug test within the 30-
                day period prior to the date of the reapplication, the 
                individual may participate in training services, under 
                the same terms and conditions as apply to other 
                applicants and participants, including submission to 
                drug tests administered as described in paragraph (2).
                    (B) Second disqualification or dismissal.--If the 
                individual reapplies to participate in training 
                services and fails a drug test administered under 
                paragraph (2) by the eligible provider, while the 
                individual is an applicant or a participant, the 
                eligible provider shall disqualify the individual from 
                eligibility for, or dismiss the individual from 
                participation in, training services. The individual 
                shall not be eligible to reapply for participation in 
                training services for 2 years after such 
                disqualification or dismissal.
            (6) Appeal.--A decision by an eligible provider to 
        disqualify an individual from eligibility for participation in 
        training services under paragraph (3) or (5), or to dismiss a 
        participant as described in paragraph (4) or (5), shall be 
        subject to expeditious appeal in accordance with procedures 
        established by the State in which the eligible provider is 
        located.
            (7) National uniform guidelines.--
                    (A) In general.--The Secretary of Labor shall 
                develop voluntary guidelines to assist eligible 
                providers concerning the drug testing required under 
                this subsection.
                    (B) Privacy.--The guidelines shall promote, to the 
                maximum extent practicable, individual privacy in the 
                collection of specimen samples for such drug testing.
                    (C) Laboratories and procedures.--With respect to 
                standards concerning laboratories and procedures for 
                such drug testing, the guidelines shall incorporate the 
                Mandatory Guidelines for Federal Workplace Drug Testing 
                Programs, 53 Fed. Reg. 11970 (1988) (or a successor to 
                such guidelines), including the portion of the 
                mandatory guidelines that--
                            (i) establishes comprehensive standards for 
                        all aspects of laboratory drug testing and 
                        laboratory procedures, including standards that 
                        require the use of the best available 
                        technology for ensuring the full reliability 
                        and accuracy of drug tests and strict 
                        procedures governing the chain of custody of 
                        specimen samples;
                            (ii) establishes the minimum list of drugs 
                        for which individuals may be tested; and
                            (iii) establishes appropriate standards and 
                        procedures for periodic review of laboratories 
                        and criteria for certification and revocation 
                        of certification of laboratories to perform 
                        such drug testing.
                    (D) Screening and confirmation.--The guidelines 
                described in subparagraph (A) shall provide that, for 
                drug testing conducted under this subsection--
                            (i) each laboratory involved in the drug 
                        testing of any individual shall have the 
                        capability and facility, at such laboratory, of 
                        performing screening and confirmation tests;
                            (ii) all tests that indicate the use, in 
                        violation of law (including Federal regulation) 
                        of a drug by the individual shall be confirmed 
                        by a scientifically recognized method of 
                        testing capable of providing quantitative data 
                        regarding the drug;
                            (iii) each specimen sample shall be 
                        subdivided, secured, and labeled in the 
                        presence of the individual; and
                            (iv) a portion of each specimen sample 
                        shall be retained in a secure manner to prevent 
                        the possibility of tampering, so that if the 
                        confirmation test results are positive the 
                        individual has an opportunity to have the 
                        retained portion assayed by a confirmation test 
                        done independently at a second certified 
                        laboratory, if the individual requests the 
                        independent test not later than 3 days after 
                        being advised of the results of the first 
                        confirmation test.
                    (E) Confidentiality.--The guidelines shall provide 
                for the confidentiality of the test results and medical 
                information (other than information relating to a drug) 
                of the individuals tested under this subsection, except 
                that the provisions of this subparagraph shall not 
                preclude the use of test results for the orderly 
                imposition of appropriate sanctions under this 
                subsection.
                    (F) Selection for random tests.--The guidelines 
                shall ensure that individuals who apply to participate 
                in training services are selected for drug testing on a 
                random basis, using nondiscriminatory and impartial 
                methods.
            (8) Nonliability of local partnerships.--A local 
        partnership, and the individual members of a local partnership, 
        shall be immune from civil liability with respect to any claim 
        based in whole or part on activities carried out to implement 
        this subsection.
            (9) Reporting requirements.--An eligible provider shall 
        make records of drug testing conducted under this subsection 
        available for inspection by other eligible providers, including 
        eligible providers in other local areas, for the sole purpose 
        of enabling the providers to determine the eligibility status 
        of an applicant pursuant to this subsection.
            (10) Use of drug tests.--No Federal, State, or local 
        prosecutor may use drug test results obtained under this 
        subsection in a criminal action.
            (11) Definitions.--As used in this subsection:
                    (A) Drug.--The term ``drug'' means a controlled 
                substance, as defined in section 102(6) of the 
                Controlled Substances Act (21 U.S.C. 802(6)).
                    (B) Drug test.--The term ``drug test'' means a 
                biochemical drug test carried out by a facility that is 
                approved by the eligible provider administering the 
                test.
                    (C) Random basis.--For purposes of the application 
                of this subsection in a State, the term ``random 
                basis'' has the meaning determined by the Governor of 
                the State, in the sole discretion of the Governor.
                    (D) Training services.--The term ``training 
                services'' means services described in section 
                315(c)(3).

SEC. 372. PROMPT ALLOCATION OF FUNDS.

    (a) Allotments Based on Latest Available Data.--All allotments 
under section 302 shall be based on the latest available data and 
estimates satisfactory to the Secretary. All data relating to 
disadvantaged adults, disadvantaged youth, and low-income individuals 
shall be based on the most recent satisfactory data from the Bureau of 
the Census.
    (b) Publication in Federal Register Relating to Formula Funds.--
Whenever the Secretary allots funds required to be allotted under 
section 302, the Secretary shall publish in a timely fashion in the 
Federal Register the proposed amount to be distributed to each 
recipient of the funds.
    (c) Requirement for Funds Distributed by Formula.--All funds 
required to be allotted or allocated under section 302 or 306 shall be 
allotted or allocated within 45 days after the date of enactment of the 
Act appropriating the funds, except that, if such funds are 
appropriated in advance as authorized by section 379(g), such funds 
shall be allotted or allocated not later than the March 31 preceding 
the program year for which such funds are to be available for 
obligation.
    (d) Availability of Funds.--Funds shall be made available under 
section 306 to the chief elected official for a local area not later 
than 30 days after the date the funds are made available to the 
Governor involved, under section 302, or 7 days after the date the 
local plan for the area is approved, whichever is later.

SEC. 373. MONITORING.

    (a) In General.--The Secretary is authorized to monitor all 
recipients of financial assistance under this title to determine 
whether the recipients are complying with the provisions of this title, 
including the regulations issued under this title.
    (b) Investigations.--The Secretary may investigate any matter the 
Secretary determines to be necessary to determine the compliance of the 
recipients with this title, including the regulations issued under this 
title. The investigations authorized by this subsection may include 
examining records (including making certified copies of the records), 
questioning employees, and entering any premises or onto any site in 
which any part of a program or activity of such a recipient is 
conducted or in which any of the records of the recipient are kept.
    (c) Additional Requirement.--For the purpose of any investigation 
or hearing conducted under this title by the Secretary, the provisions 
of section 9 of the Federal Trade Commission Act (15 U.S.C. 49) 
(relating to the attendance of witnesses and the production of 
documents) apply to the Secretary, in the same manner and to the same 
extent as the provisions apply to the Federal Trade Commission.

SEC. 374. FISCAL CONTROLS; SANCTIONS.

    (a) Establishment of Fiscal Controls by States.--
            (1) In general.--Each State shall establish such fiscal 
        control and fund accounting procedures as may be necessary to 
        assure the proper disbursal of, and accounting for, Federal 
        funds allocated to local areas under subtitle A. Such 
        procedures shall ensure that all financial transactions carried 
        out under subtitle A are conducted and records maintained in 
        accordance with generally accepted accounting principles 
        applicable in each State.
            (2) Cost principles.--
                    (A) In general.--Each State (including the Governor 
                of the State), local area (including the chief elected 
                official for the area), and provider receiving funds 
                under this title shall comply with the applicable 
                uniform cost principles included in the appropriate 
                circulars of the Office of Management and Budget for 
                the type of entity receiving the funds.
                    (B) Exception.--The funds made available to a State 
                for administration of statewide workforce investment 
                activities in accordance with section 314(c)(2) shall 
                be allocable to the overall administration of workforce 
                investment activities, but need not be specifically 
                allocable to--
                            (i) the administration of adult employment 
                        and training activities;
                            (ii) the administration of dislocated 
                        worker employment and training activities; or
                            (iii) the administration of youth 
                        activities.
            (3) Uniform administrative requirements.--
                    (A) In general.--Each State (including the Governor 
                of the State), local area (including the chief elected 
                official for the area), and provider receiving funds 
                under this title shall comply with the appropriate 
                uniform administrative requirements for grants and 
                agreements applicable for the type of entity receiving 
                the funds, as promulgated in circulars or rules of the 
                Office of Management and Budget.
                    (B) Additional requirement.--Procurement 
                transactions under this title between local 
                partnerships and units of State or local governments 
                shall be conducted only on a cost-reimbursable basis.
            (4) Monitoring.--Each Governor of a State shall conduct 
        onsite monitoring of each local area within the State to ensure 
        compliance with the uniform administrative requirements 
        referred to in paragraph (3).
            (5) Action by governor.--If the Governor determines that a 
        local area is not in compliance with the uniform administrative 
        requirements referred to in paragraph (3), the Governor shall--
                    (A) require corrective action to secure prompt 
                compliance; and
                    (B) impose the sanctions provided under subsection 
                (b) in the event of failure to take the required 
                corrective action.
            (6) Certification.--The Governor shall, every 3 years, 
        certify to the Secretary that--
                    (A) the State has implemented the uniform 
                administrative requirements referred to in paragraph 
                (3);
                    (B) the State has monitored local areas to ensure 
                compliance with the uniform administrative requirements 
                as required under paragraph (4); and
                    (C) the State has taken appropriate action to 
                secure compliance pursuant to paragraph (5).
            (7) Action by the secretary.--If the Secretary determines 
        that the Governor has not fulfilled the requirements of this 
        subsection, the Secretary shall--
                    (A) require corrective action to secure prompt 
                compliance; and
                    (B) impose the sanctions provided under subsection 
                (f) in the event of failure of the Governor to take the 
                required appropriate action to secure compliance.
    (b) Substantial Violation.--
            (1) Action by governor.--If, as a result of a financial or 
        compliance audit or otherwise, the Governor determines that 
        there is a substantial violation of a specific provision of 
        this title, including regulations issued under this title, and 
        corrective action has not been taken, the Governor shall impose 
        a reorganization plan, which may include--
                    (A) decertifying the local partnership involved in 
                accordance with section 308(c)(3);
                    (B) prohibiting the use of providers who have been 
                identified as eligible providers of workforce 
                investment activities under chapter 3 of subtitle A;
                    (C) selecting an alternative entity to administer a 
                program or activity for the local area involved;
                    (D) merging the local area into 1 or more other 
                local areas; or
                    (E) making such other changes as the Secretary or 
                Governor determines to be necessary to secure 
                compliance.
            (2) Appeal.--The action taken by the Governor pursuant to 
        paragraph (1) may be appealed to the Secretary, who shall make 
        a final decision on the appeal not later than 60 days after the 
        receipt of the appeal.
            (3) Action by secretary.--If the Governor fails to take 
        promptly the action required under paragraph (1), the Secretary 
        shall take such action.
    (c) Access by Comptroller General.--For the purpose of evaluating 
and reviewing programs and activities established or provided for by 
this title, the Comptroller General shall have access to and the right 
to copy any books, accounts, records, correspondence, or other 
documents pertinent to such programs and activities that are in the 
possession, custody, or control of a State, a local partnership, any 
recipient of funds under this title, or any subgrantee or contractor of 
such a recipient.
    (d) Repayment of Certain Amounts to the United States.--
            (1) In general.--Every recipient of funds under this title 
        shall repay to the United States amounts found not to have been 
        expended in accordance with this title.
            (2) Offset of repayment.--If the Secretary determines that 
        a State has expended funds made available under this title in a 
        manner contrary to the requirements of this title, the 
        Secretary may offset repayment of such expenditures against any 
        other amount to which the State is or may be entitled, except 
        as provided under subsection (e)(1).
            (3) Repayment from deduction by state.--If the Secretary 
        requires a State to repay funds as a result of a determination 
        that a local area of the State has expended funds contrary to 
        the requirements of this title, the Governor of the State may 
        use an amount deducted under paragraph (4) to repay the funds, 
        except as provided under subsection (e)(1).
            (4) Deduction by state.--The Governor may deduct an amount 
        equal to the misexpenditure described in paragraph (3) from 
        subsequent program year allocations to the local area from 
        funds reserved for the administrative costs of the local 
        programs involved, as appropriate.
            (5) Limitations.--A deduction made by a State as described 
        in paragraph (4) shall not be made until such time as the 
        Governor has taken appropriate corrective action to ensure full 
        compliance within such local area with regard to appropriate 
        expenditures of funds under this title.
    (e) Repayment of Amounts.--
            (1) In general.--Each recipient of funds under this title 
        shall be liable to repay the amounts described in subsection 
        (d)(1), from funds other than funds received under this title, 
        upon a determination by the Secretary that the misexpenditure 
        of funds was due to willful disregard of the requirements of 
        this title, gross negligence, failure to observe accepted 
        standards of administration, or a pattern of misexpenditure as 
        described in paragraphs (2) and (3) of subsection (d). No such 
        determination shall be made under this subsection or subsection 
        (d) until notice and opportunity for a fair hearing has been 
        given to the recipient.
            (2) Factors in imposing sanctions.--In determining whether 
        to impose any sanction authorized by this section against a 
        recipient for violations by a subgrantee or contractor of such 
        recipient under this title (including the regulations issued 
        under this title), the Secretary shall first determine whether 
        such recipient has adequately demonstrated that the recipient 
        has--
                    (A) established and adhered to an appropriate 
                system for the award and monitoring of grants and 
                contracts with subgrantees and contractors that 
                contains acceptable standards for ensuring 
                accountability;
                    (B) entered into a written grant agreement or 
                contract with such subgrantee or contractor that 
                established clear goals and obligations in unambiguous 
                terms;
                    (C) acted with due diligence to monitor the 
                implementation of the grant agreement or contract, 
                including the carrying out of the appropriate 
                monitoring activities (including audits) at reasonable 
                intervals; and
                    (D) taken prompt and appropriate corrective action 
                upon becoming aware of any evidence of a violation of 
                this title, including regulations issued under this 
                title, by such subgrantee or contractor.
            (3) Waiver.--If the Secretary determines that the recipient 
        has demonstrated substantial compliance with the requirements 
        of paragraph (2), the Secretary may waive the imposition of 
        sanctions authorized by this section upon such recipient. The 
        Secretary is authorized to impose any sanction consistent with 
        the provisions of this title and any applicable Federal or 
        State law directly against any subgrantee or contractor for 
        violation of this title, including regulations issued under 
        this title.
    (f) Immediate Termination or Suspension of Assistance in Emergency 
Situations.--In emergency situations, if the Secretary determines it is 
necessary to protect the integrity of the funds or ensure the proper 
operation of the program or activity involved, the Secretary may 
immediately terminate or suspend financial assistance, in whole or in 
part, to the recipient if the recipient is given prompt notice and the 
opportunity for a subsequent hearing within 30 days after such 
termination or suspension. The Secretary shall not delegate any of the 
functions or authority specified in this subsection, other than to an 
officer whose appointment is required to be made by and with the advice 
and consent of the Senate.
    (g) Discrimination Against Participants.--If the Secretary 
determines that any recipient of funds under this title has discharged 
or in any other manner discriminated in violation of section 378 
against, a participant or any other individual in connection with the 
administration of the program or activity involved, or any individual 
because such individual has filed any complaint or instituted or caused 
to be instituted any proceeding under or related to this title, or has 
testified or is about to testify in any such proceeding or 
investigation under or related to this title, or otherwise unlawfully 
denied to any individual a benefit to which that individual is entitled 
under the provisions of this title, including regulations issued under 
this title, the Secretary shall, within 30 days after the date of the 
determination, take such action or order such corrective measures, as 
may be necessary, with respect to the recipient or the aggrieved 
individual.
    (h) Remedies.--The remedies described in this section shall not be 
construed to be the exclusive remedies available for violations 
described in this section.

SEC. 375. REPORTS; RECORDKEEPING; INVESTIGATIONS.

    (a) Reports.--
            (1) In general.--Recipients of funds under this title shall 
        keep records that are sufficient to permit the preparation of 
        reports required by this title and to permit the tracing of 
        funds to a level of expenditure adequate to ensure that the 
        funds have not been spent unlawfully.
            (2) Submission to the secretary.--Every such recipient 
        shall maintain such records and submit such reports, in such 
        form and containing such information, as the Secretary may 
        require regarding the performance of programs and activities 
        carried out under this title. Such records and reports shall be 
        submitted to the Secretary but shall not be required to be 
        submitted more than once each quarter unless specifically 
        requested by Congress or a committee of Congress.
            (3) Maintenance of standardized records.--In order to allow 
        for the preparation of the reports required under subsection 
        (c), such recipients shall maintain standardized records for 
        all individual participants and provide to the Secretary a 
        sufficient number of such records to provide for an adequate 
        analysis of the records.
            (4) Availability to the public.--
                    (A) In general.--Except as provided in subparagraph 
                (B), records maintained by such recipients pursuant to 
                this subsection shall be made available to the public 
                upon request.
                    (B) Exception.--Subparagraph (A) shall not apply 
                to--
                            (i) information, the disclosure of which 
                        would constitute a clearly unwarranted invasion 
                        of personal privacy; and
                            (ii) trade secrets, or commercial or 
                        financial information, that is obtained from a 
                        person and privileged or confidential.
                    (C) Fees to recover costs.--Such recipients may 
                charge fees sufficient to recover costs applicable to 
                the processing of requests for records under 
                subparagraph (A).
    (b) Investigations of Use of Funds.--
            (1) In general.--
                    (A) Secretary.--In order to evaluate compliance 
                with the provisions of this title, the Secretary shall 
                conduct, in several States, in each fiscal year, 
                investigations of the use of funds received by 
                recipients under this title.
                    (B) Comptroller general of the united states.--In 
                order to ensure compliance with the provisions of this 
                title, the Comptroller General of the United States may 
                conduct investigations of the use of funds received 
                under this title by any recipient.
            (2) Prohibition.--In conducting any investigation under 
        this title, the Secretary or the Comptroller General of the 
        United States may not request the compilation of any 
        information that the recipient is not otherwise required to 
        compile and that is not readily available to such recipient.
            (3) Audits.--
                    (A) In general.--In carrying out any audit under 
                this title (other than any initial audit survey or any 
                audit investigating possible criminal or fraudulent 
                conduct), either directly or through grant or contract, 
                the Secretary, the Inspector General of the Department 
                of Labor, or the Comptroller General of the United 
                States shall furnish to the State, recipient, or other 
                entity to be audited, advance notification of the 
                overall objectives and purposes of the audit, and any 
                extensive recordkeeping or data requirements to be met, 
                not later than 14 days (or as soon as practicable), 
                prior to the commencement of the audit.
                    (B) Notification requirement.--If the scope, 
                objectives, or purposes of the audit change 
                substantially during the course of the audit, the 
                entity being audited shall be notified of the change as 
                soon as practicable.
                    (C) Additional requirement.--The reports on the 
                results of such audits shall cite the law, regulation, 
                policy, or other criteria applicable to any finding 
                contained in the reports.
                    (D) Rule of construction.--Nothing contained in 
                this title shall be construed so as to be inconsistent 
                with the Inspector General Act of 1978 (5 U.S.C. App.) 
                or government auditing standards issued by the 
                Comptroller General of the United States.
    (c) Accessibility of Reports.--Each State, each local partnership, 
and each recipient (other than a subrecipient, subgrantee, or 
contractor of a recipient) receiving funds under this title shall--
            (1) make readily accessible such reports concerning its 
        operations and expenditures as shall be prescribed by the 
        Secretary;
            (2) prescribe and maintain comparable management 
        information systems, in accordance with guidelines that shall 
        be prescribed by the Secretary, designed to facilitate the 
        uniform compilation, cross tabulation, and analysis of 
        programmatic, participant, and financial data, on statewide, 
        local area, and other appropriate bases, necessary for 
        reporting, monitoring, and evaluating purposes, including data 
        necessary to comply with section 378; and
            (3) monitor the performance of providers in complying with 
        the terms of grants, contracts, or other agreements made 
        pursuant to this title.
    (d) Information To Be Included in Reports.--
            (1) In general.--The reports required in subsection (c) 
        shall include information regarding programs and activities 
        carried out under this title pertaining to--
                    (A) the relevant demographic characteristics 
                (including race, ethnicity, sex, and age) and other 
                related information regarding participants;
                    (B) the programs and activities in which 
                participants are enrolled, and the length of time that 
                participants are engaged in such programs and 
                activities;
                    (C) outcomes of the programs and activities for 
                participants, including the occupations of 
                participants, and placement for participants in 
                nontraditional employment;
                    (D) specified costs of the programs and activities; 
                and
                    (E) information necessary to prepare reports to 
                comply with section 378.
            (2) Additional requirement.--The Secretary shall ensure 
        that all elements of the information required for the reports 
        described in paragraph (1) are defined and reported uniformly.
    (e) Retention of Records.--The Governor of a State that receives 
funds under this title shall ensure that requirements are established 
for retention of all records of the State pertinent to all grants 
awarded, and contracts and agreements entered into, under this title, 
including financial, statistical, property, and participant records and 
supporting documentation. For funds allotted to a State under this 
title for any program year, the State shall retain the records for 2 
subsequent program years. The State shall retain records for 
nonexpendable property that is used to carry out this title for a 
period of 3 years after final disposition of the property.
    (f) Quarterly Financial Reports.--
            (1) In general.--Each local partnership in the State shall 
        submit quarterly financial reports to the Governor with respect 
        to programs and activities carried out under this title. Such 
        reports shall include information identifying all program and 
        activity costs by cost category in accordance with generally 
        accepted accounting principles and by year of the appropriation 
        involved.
            (2) Additional requirement.--Each State shall submit to the 
        Secretary, on a quarterly basis, a summary of the reports 
        submitted to the Governor pursuant to paragraph (1).
    (g) Maintenance of Additional Records.--Each State and local 
partnership shall maintain records with respect to programs and 
activities carried out under this title that identify--
            (1) any income or profits earned, including such income or 
        profits earned by subrecipients; and
            (2) any costs incurred (such as stand-in costs) that are 
        otherwise allowable except for funding limitations.
    (h) Cost Categories.--In requiring entities to maintain records of 
costs by category under this title, the Secretary shall require only 
that the costs be categorized as administrative or programmatic costs.

SEC. 376. ADMINISTRATIVE ADJUDICATION.

    (a) In General.--Whenever any applicant for financial assistance 
under this title is dissatisfied because the Secretary has made a 
determination not to award financial assistance in whole or in part to 
such applicant, the applicant may request a hearing before an 
administrative law judge of the Department of Labor. A similar hearing 
may also be requested by any recipient for whom a corrective action has 
been required or a sanction has been imposed by the Secretary under 
section 374. Except to the extent provided for in section 371(c) or 
378, all other disputes arising under this title relating to the manner 
in which the recipient carries out a program or activity under this 
title shall be adjudicated under grievance procedures established by 
the recipient or under applicable law other than this title.
    (b) Appeal.--The decision of the administrative law judge shall 
constitute final action by the Secretary unless, within 20 days after 
receipt of the decision of the administrative law judge, a party 
dissatisfied with the decision or any part of the decision has filed 
exceptions with the Secretary specifically identifying the procedure, 
fact, law, or policy to which exception is taken. Any exception not 
specifically urged shall be deemed to have been waived. After the 20-
day period the decision of the administrative law judge shall become 
the final decision of the Secretary unless the Secretary, within 30 
days after such filing, has notified the parties that the case involved 
has been accepted for review.
    (c) Time Limit.--Any case accepted for review by the Secretary 
under subsection (b) shall be decided within 180 days after such 
acceptance. If the case is not decided within the 180-day period, the 
decision of the administrative law judge shall become the final 
decision of the Secretary at the end of the 180-day period.
    (d) Additional Requirement.--The provisions of section 377 shall 
apply to any final action of the Secretary under this section.

SEC. 377. JUDICIAL REVIEW.

    (a) Review.--
            (1) Petition.--With respect to any final order by the 
        Secretary under section 376 by which the Secretary awards, 
        declines to award, or only conditionally awards, financial 
        assistance under this title, or any final order of the 
        Secretary under section 376 with respect to a corrective action 
        or sanction imposed under section 374, any party to a 
        proceeding which resulted in such final order may obtain review 
        of such final order in the United States Court of Appeals 
        having jurisdiction over the applicant or recipient of funds 
        involved, by filing a review petition within 30 days after the 
        date of issuance of such final order.
            (2) Action on petition.--The clerk of the court shall 
        transmit a copy of the review petition to the Secretary who 
        shall file the record on which the final order was entered as 
        provided in section 2112 of title 28, United States Code. The 
        filing of a review petition shall not stay the order of the 
        Secretary, unless the court orders a stay. Petitions filed 
        under this subsection shall be heard expeditiously, if possible 
        within 10 days after the date of filing of a reply to the 
        petition.
            (3) Standard and scope of review.--No objection to the 
        order of the Secretary shall be considered by the court unless 
        the objection was specifically urged, in a timely manner, 
        before the Secretary. The review shall be limited to questions 
        of law and the findings of fact of the Secretary shall be 
        conclusive if supported by substantial evidence.
    (b) Judgment.--The court shall have jurisdiction to make and enter 
a decree affirming, modifying, or setting aside the order of the 
Secretary in whole or in part. The judgment of the court regarding the 
order shall be final, subject to certiorari review by the Supreme Court 
as provided in section 1254(1) of title 28, United States Code.

SEC. 378. NONDISCRIMINATION.

    (a) Prohibited Discrimination.--
            (1) Prohibition on discrimination in federal programs and 
        activities.--For the purpose of applying the prohibitions 
        against discrimination on the basis of age under the Age 
        Discrimination Act of 1975 (42 U.S.C. 6101 et seq.), on the 
        basis of disability under section 504 of the Rehabilitation Act 
        of 1973 (29 U.S.C. 794), on the basis of sex under title IX of 
        the Education Amendments of 1972 (20 U.S.C. 1681 et seq.), on 
        the basis of race, color, or national origin under title VI of 
        the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.), or on 
        the basis of religion under any applicable provision of Federal 
        law, programs and activities funded or otherwise financially 
        assisted in whole or in part under this title shall be 
        considered to be programs and activities receiving Federal 
        financial assistance, and education programs and activities 
        receiving Federal financial assistance.
            (2) Prohibition of discrimination regarding participation, 
        benefits, and employment.--Except as otherwise permitted under 
        title IX of the Education Amendments of 1972, no individual 
        shall be excluded from participation in, denied the benefits 
        of, subjected to discrimination under, or denied employment in 
        the administration of or in connection with, any such program 
        or activity because of race, color, religion, sex, national 
        origin, age, disability, or political affiliation or belief.
            (3) Prohibition on assistance for facilities for sectarian 
        instruction or religious worship.--Participants shall not be 
        employed under this title to carry out the construction, 
        operation, or maintenance of any part of any facility that is 
        used or to be used for sectarian instruction or as a place for 
        religious worship (except with respect to the maintenance of a 
        facility that is not primarily or inherently devoted to 
        sectarian instruction or religious worship, in a case in which 
        the organization operating the facility is part of a program or 
        activity providing services to participants).
            (4) Prohibition on discrimination on basis of participant 
        status.--No person may discriminate against an individual who 
        is a participant in a program or activity that receives funds 
        under this title, with respect to the terms and conditions 
        affecting, or rights provided to, the individual, solely 
        because of the status of the individual as a participant, in 
        carrying out any endeavor that involves--
                    (A) participants in programs and activities that 
                receive funding under this title; and
                    (B) persons who receive no assistance under this 
                title.
            (5) Prohibition on discrimination against certain 
        noncitizens.--Participation in programs and activities or 
        receiving funds under this title shall be available to citizens 
        and nationals of the United States, lawfully admitted permanent 
        resident aliens, refugees, asylees, and parolees, other aliens 
        lawfully present in the United States, and other individuals 
        authorized by the Attorney General to work in the United 
        States.
    (b) Action of Secretary.--Whenever the Secretary finds that a State 
or other recipient of funds under this title has failed to comply with 
a provision of law referred to in subsection (a)(1), or with paragraph 
(2), (3), (4), or (5) of subsection (a), including an applicable 
regulation prescribed to carry out such provision or paragraph, the 
Secretary shall notify such State or recipient and shall request that 
the State or recipient comply. If within a reasonable period of time, 
not to exceed 60 days, the State or recipient fails or refuses to 
comply, the Secretary may--
            (1) refer the matter to the Attorney General with a 
        recommendation that an appropriate civil action be instituted;
            (2) exercise the powers and functions provided to the head 
        of a Federal department or agency under the Age Discrimination 
        Act of 1975, section 504 of the Rehabilitation Act of 1973 (29 
        U.S.C. 794), title IX of the Education Amendments of 1972, or 
        title VI of the Civil Rights Act of 1964, as may be applicable; 
        or
            (3) take such other action as may be provided by law.
    (c) Action of Attorney General.--When a matter is referred to the 
Attorney General pursuant to subsection (b)(1), or whenever the 
Attorney General has reason to believe that a State or other recipient 
of funds under this title is engaged in a pattern or practice of 
discrimination in violation of a provision of law referred to in 
subsection (a)(1) or in violation of paragraph (2), (3), (4), or (5) of 
subsection (a), the Attorney General may bring a civil action in any 
appropriate district court of the United States for such relief as may 
be appropriate, including injunctive relief.
    (d) Job Corps Members.--For purposes of this section, Job Corps 
members shall be considered as the ultimate beneficiaries of a program 
or activity receiving Federal financial assistance and an education 
program or activity receiving Federal financial assistance.

SEC. 379. ADMINISTRATIVE PROVISIONS.

    (a) In General.--The Secretary may, in accordance with chapter 5 of 
title 5, United States Code, prescribe rules and regulations to carry 
out this title to the extent necessary to implement, administer, and 
ensure compliance with the requirements of this title. Such rules and 
regulations may include provisions making adjustments authorized by 
section 6504 of title 31, United States Code. All such rules and 
regulations shall be published in the Federal Register at least 30 days 
prior to their effective dates. Copies of each such rule or regulation 
shall be transmitted to the appropriate committees of Congress on the 
date of such publication and shall contain, with respect to each 
material provision of such rule or regulation, a citation to the 
particular substantive section of law that is the basis for the 
provision.
    (b) Acquisition of Certain Property and Services.--The Secretary is 
authorized, in carrying out this title, to accept, purchase, or lease 
in the name of the Department of Labor, and employ or dispose of in 
furtherance of the purposes of this title, any money or property, real, 
personal, or mixed, tangible or intangible, received by gift, devise, 
bequest, or otherwise, and to accept voluntary and uncompensated 
services notwithstanding the provisions of section 1342 of title 31, 
United States Code.
    (c) Authority To Enter Into Certain Agreements and To Make Certain 
Expenditures.--The Secretary may make such grants, enter into such 
contracts or agreements, establish such procedures, and make such 
payments, in installments and in advance or by way of reimbursement, or 
otherwise allocate or expend such funds under this title, as may be 
necessary to carry out this title, including making expenditures for 
construction, repairs, and capital improvements, and including making 
necessary adjustments in payments on account of over-payments or 
underpayments.
    (d) Annual Report.--The Secretary shall prepare and submit to 
Congress an annual report regarding the programs and activities carried 
out under this title. The Secretary shall include in such report--
            (1) a summary of the achievements, failures, and problems 
        of the programs and activities in meeting the objectives of 
        this title;
            (2) a summary of major findings from research, evaluations, 
        pilot projects, and experiments conducted under this title in 
        the fiscal year prior to the submission of the report;
            (3) recommendations for modifications in the programs and 
        activities based on analysis of such findings; and
            (4) such other recommendations for legislative or 
        administrative action as the Secretary determines to be 
        appropriate.
    (e) Utilization of Services and Facilities.--The Secretary is 
authorized, in carrying out this title, under the same procedures as 
are applicable under subsection (c) or to the extent permitted by law 
other than this title, to accept and use the services and facilities of 
departments, agencies, and establishments of the United States. The 
Secretary is also authorized, in carrying out this title, to accept and 
use the services and facilities of the agencies of any State or 
political subdivision of a State, with the consent of the State or 
political subdivision.
    (f) Obligational Authority.--Notwithstanding any other provision of 
this title, the Secretary shall have no authority to enter into 
contracts, grant agreements, or other financial assistance agreements 
under this title except to such extent and in such amounts as are 
provided in advance in appropriations Acts.
    (g) Program Year.--
            (1) In general.--
                    (A) Program year.--Except as provided in 
                subparagraph (B), appropriations for any fiscal year 
                for programs and activities carried out under this 
                title shall be available for obligation only on the 
                basis of a program year. The program year shall begin 
                on July 1 in the fiscal year for which the 
                appropriation is made.
                    (B) Youth activities.--The Secretary may make 
                available for obligation, beginning April 1 of any 
                fiscal year, funds appropriated for such fiscal year to 
                carry out youth activities under subtitle A.
            (2) Availability.--Funds obligated for any program year for 
        a program or activity carried out under this title may be 
        expended by each State receiving such funds during that program 
        year and the 2 succeeding program years. Funds obligated for 
        any program year for a program or activity carried out under 
        section 367 or 368 shall remain available until expended. Funds 
        received by local areas from States under this title during a 
        program year may be expended during that program year and the 
        succeeding program year. No amount of the funds described in 
        this paragraph shall be deobligated on account of a rate of 
        expenditure that is consistent with a State plan, an operating 
        plan described in section 341, or a plan, grant agreement, 
        contract, application, or other agreement described in subtitle 
        C, as appropriate.
    (h) Enforcement of Military Selective Service Act.--The Secretary 
shall ensure that each individual participating in any program or 
activity established under this title, or receiving any assistance or 
benefit under this title, has not violated section 3 of the Military 
Selective Service Act (50 U.S.C. App. 453) by not presenting and 
submitting to registration as required pursuant to such section. The 
Director of the Selective Service System shall cooperate with the 
Secretary to enable the Secretary to carry out this subsection.
    (i) Waivers and Special Rules.--
            (1) Existing waivers.--With respect to a State that has 
        been granted a waiver under the provisions relating to training 
        and employment services of the Department of Labor in title I 
        of the Departments of Labor, Health and Human Services, and 
        Education, and Related Agencies Appropriations Act, 1997 
        (Public Law 104-208; 110 Stat. 3009-234), the authority 
        provided under such waiver shall continue in effect and apply, 
        and include a waiver of the related provisions of subtitle A 
        and this subtitle, for the duration of the initial waiver.
            (2) Special rule regarding designated areas.--A State that 
        enacts, not later than December 31, 1997, a State law providing 
        for the designation of service delivery areas for the delivery 
        of workforce investment activities, may use such areas as local 
        areas under this title, notwithstanding section 307(a).
            (3) Special rule regarding sanctions.--A State that enacts, 
        not later than December 31, 1997, a State law providing for the 
        sanctioning of such service delivery areas for failure to meet 
        performance measures for workforce investment activities, may 
        use the State law to sanction local areas for failure to meet 
        State performance measures under this title.
            (4) General waivers of statutory or regulatory 
        requirements.--
                    (A) General authority.--Notwithstanding any other 
                provision of law, the Secretary may waive for a State, 
                or a local area in a State, pursuant to a request 
                submitted by the Governor of the State (in consultation 
                with appropriate local elected officials) that meets 
                the requirements of subparagraph (B)--
                            (i) any of the statutory or regulatory 
                        requirements of subtitle A or this subtitle 
                        (except for requirements relating to wage and 
                        labor standards, worker rights, participation 
                        and protection of workers, grievance procedures 
                        and judicial review, nondiscrimination, 
                        allocation of funds to local areas, eligibility 
                        of providers or participants, the establishment 
                        and functions of local areas and local 
                        partnerships, and procedures for review and 
                        approval of plans); and
                            (ii) any of the statutory or regulatory 
                        requirements of sections 8 through 10 of the 
                        Wagner-Peyser Act (29 U.S.C. 49g through 49i) 
                        (excluding requirements relating to the 
                        provision of services to unemployment insurance 
                        claimants and veterans, and requirements 
                        relating to universal access to basic labor 
                        exchange services without cost to jobseekers).
                    (B) Requests.--A Governor requesting a waiver under 
                subparagraph (A) shall submit a plan to the Secretary 
                to improve the statewide workforce investment system 
                that--
                            (i) identifies the statutory or regulatory 
                        requirements that are requested to be waived 
                        and the goals that the State or local area in 
                        the State, as appropriate, intends to achieve 
                        as a result of the waiver;
                            (ii) describes the actions that the State 
                        or local area, as appropriate, has undertaken 
                        to remove State or local statutory or 
                        regulatory barriers;
                            (iii) describes the goals of the waiver and 
                        the expected programmatic outcomes if the 
                        request is granted;
                            (iv) describes the individuals impacted by 
                        the waiver; and
                            (v) describes the process used to monitor 
                        the progress in implementing such a waiver, and 
                        the process by which notice and an opportunity 
                        to comment on such request has been provided to 
                        the organizations identified in section 
                        308(c)(2).
                    (C) Conditions.--Not later than 90 days after the 
                date of the original submission of a request for a 
                waiver under subparagraph (A), the Secretary shall 
                provide a waiver under this paragraph if and only to 
                the extent that--
                            (i) the Secretary determines that the 
                        requirements requested to be waived impede the 
                        ability of the State or local area, as 
                        appropriate, to implement the plan described in 
                        subparagraph (B); and
                            (ii) the State has executed a memorandum of 
                        understanding with the Secretary requiring such 
                        State to meet, or ensure that the local area 
                        meets, agreed-upon outcomes and to implement 
                        other appropriate measures to ensure 
                        accountability.

SEC. 380. STATE LEGISLATIVE AUTHORITY.

    (a) Authority of State Legislature.--Nothing in this title shall be 
interpreted to preclude the enactment of State legislation providing 
for the implementation, consistent with the provisions of this title, 
of the activities assisted under this title. Any funds received by a 
State under this title shall be subject to appropriation by the State 
legislature, consistent with the terms and conditions required under 
this title.
    (b) Interstate Compacts and Cooperative Agreements.--In the event 
that compliance with provisions of this title would be enhanced by 
compacts and cooperative agreements between States, the consent of 
Congress is given to States to enter into such compacts and agreements 
to facilitate such compliance, subject to the approval of the 
Secretary.

SEC. 381. WORKFORCE FLEXIBILITY PARTNERSHIP PLANS.

    (a) Plans.--A State may submit to the Secretary, and the Secretary 
may approve, a workforce flexibility partnership plan under which the 
State is authorized to waive, in accordance with the plan--
            (1) any of the statutory or regulatory requirements 
        applicable under this title to local areas, pursuant to 
        applications for such waivers from the local areas, except for 
        requirements relating to the basic purposes of this title, wage 
        and labor standards, grievance procedures and judicial review, 
        nondiscrimination, eligibility of participants, allocation of 
        funds to local areas, establishment and functions of local 
        areas and local partnerships, review and approval of local 
        plans, and worker rights, participation, and protection;
            (2) any of the statutory or regulatory requirements 
        applicable under sections 8 through 10 of the Wagner-Peyser Act 
        (29 U.S.C. 49g through 49i) to the State, except for 
        requirements relating to the provision of services to 
        unemployment insurance claimants and veterans, and to universal 
        access to basic labor exchange services without cost to 
        jobseekers; and
            (3) any of the statutory or regulatory requirements 
        applicable under the Older Americans Act of 1965 (42 U.S.C. 
        3001 et seq.) to State agencies on aging with respect to 
        activities carried out using funds allotted under section 
        506(a)(3) of such Act (42 U.S.C. 3056d(a)(3)), except for 
        requirements relating to the basic purposes of such Act, wage 
        and labor standards, eligibility of participants in the 
        activities, and standards for agreements.
    (b) Content of Plans.--A workforce flexibility partnership plan 
implemented by a State under subsection (a) shall include descriptions 
of--
            (1)(A) the process by which local areas in the State may 
        submit and obtain approval by the State of applications for 
        waivers of requirements applicable under this title; and
            (B) the requirements described in subparagraph (A) that are 
        likely to be waived by the State under the plan;
            (2) the requirements applicable under sections 8 through 10 
        of the Wagner-Peyser Act that are proposed to be waived, if 
        any;
            (3) the requirements applicable under the Older Americans 
        Act of 1965 that are proposed to be waived, if any;
            (4) the outcomes to be achieved by the waivers described in 
        paragraphs (1) through (3); and
            (5) other measures to be taken to ensure appropriate 
        accountability for Federal funds in connection with the 
        waivers.
    (c) Periods.--The Secretary may approve a workforce flexibility 
partnership plan for a period of not more than 5 years.
    (d) Opportunity for Public Comments.--Prior to submitting a 
workforce flexibility partnership plan to the Secretary for approval, 
the State shall provide to all interested parties and to the general 
public adequate notice and a reasonable opportunity for comment on the 
waiver requests proposed to be implemented pursuant to such plan.

SEC. 382. USE OF CERTAIN REAL PROPERTY.

    (a) In General.--Notwithstanding any other provision of law, 
pursuant to a plan submitted by a Governor of a State and approved by 
the Secretary, the Governor may authorize a public agency to use, for 
any of the functions of a one-stop customer service system within the 
State, real property in which, as of the effective date of this Act, 
the Federal Government has acquired equity through use of funds 
provided under title III of the Social Security Act (42 U.S.C. 501 et 
seq.), section 903(c) of such Act (42 U.S.C. 1103(c)), or the Wagner-
Peyser Act (29 U.S.C. 49 et seq.).
    (b) Use of Funds.--Subsequent to the commencement of the use of the 
property described in subsection (a) for the functions of a one-stop 
customer service system, funds provided under the provisions of law 
described in subsection (a) may only be used to acquire further equity 
in such property, or to pay operating and maintenance expenses relating 
to such property in proportion to the extent of the use of such 
property attributable to the activities authorized under such 
provisions of law.

SEC. 383. CONTINUATION OF STATE ACTIVITIES AND POLICIES.

    (a) In General.--Notwithstanding any other provision of this title, 
the Secretary may not deny approval of a State plan for a covered 
State, or an application of a covered State for financial assistance, 
under this title or find a covered State (including a statewide 
partnership or Governor), or a local area (including a local 
partnership or chief elected official) in a covered State, in violation 
of a provision of this title, on the basis that--
            (1)(A) the State proposes to allocate or disburse, 
        allocates, or disburses, within the State, funds made available 
        to the State under section 302 in accordance with the 
        allocation formula for the type of activities involved, or in 
        accordance with a disbursal procedure or process, used by the 
        State under prior consistent State law; or
            (B) a local partnership in the State proposes to disburse, 
        or disburses, within the local area, funds made available to a 
        State under section 302 in accordance with a disbursal 
        procedure or process used by a private industry council under 
        prior consistent State law;
            (2) the State proposes to carry out or carries out a State 
        procedure through which local areas use, as fiscal agents for 
        funds made available to the State under section 302 and 
        allocated within the State, fiscal agents selected in 
        accordance with a process established under prior consistent 
        State law;
            (3) the State proposes to carry out or carries out a State 
        procedure through which the local partnerships in the State (or 
        the local partnerships, the chief elected officials in the 
        State, and the Governor) designate or select the one-stop 
        partners and one-stop customer service center operators of the 
        statewide system in the State under prior consistent State law, 
        in lieu of making the appointment, designation, or 
        certification described in section 311 (regardless of the date 
        the one-stop customer service systems involved have been 
        established);
            (4) the State proposes to carry out or carries out a State 
        procedure through which the persons responsible for selecting 
        eligible providers for purposes of subtitle A are permitted to 
        determine that a provider shall not be selected to provide both 
        intake services under section 315(c)(2) and training services 
        under section 315(c)(3), under prior consistent State law;
            (5) the State proposes to designate or designates a 
        statewide partnership, or proposes to assign or assigns 
        functions and roles of the statewide partnership (including 
        determining the time periods for development and submission of 
        a State plan required under section 304), for purposes of 
        subtitle A in accordance with prior consistent State law; or
            (6) a local partnership in the State proposes to use or 
        carry out, uses, or carries out a local plan (including 
        assigning functions and roles of the local partnership) for 
        purposes of subtitle A in accordance with the authorities and 
        requirements applicable to local plans and private industry 
        councils under prior consistent State law.
    (b) Definition.--In this section:
            (1) Covered state.--The term ``covered State'' means a 
        State that enacted a State law described in paragraph (2).
            (2) Prior consistent state law.--The term ``prior 
        consistent State law'' means a State law, not inconsistent with 
        the Job Training Partnership Act or any other applicable 
        Federal law, that took effect on September 1, 1993, September 
        1, 1995, or September 1, 1997.

             Subtitle E--Repeals and Conforming Amendments

SEC. 391. REPEALS.

    (a) General Immediate Repeals.--The following provisions are 
repealed:
            (1) Section 204 of the Immigration Reform and Control Act 
        of 1986 (8 U.S.C. 1255a note).
            (2) Title II of Public Law 95-250 (92 Stat. 172).
            (3) The Displaced Homemakers Self-Sufficiency Assistance 
        Act (29 U.S.C. 2301 et seq.).
            (4) Section 211 of the Appalachian Regional Development Act 
        of 1965 (40 U.S.C. App. 211).
            (5) Subtitle C of title VII of the Stewart B. McKinney 
        Homeless Assistance Act (42 U.S.C. 11441 et seq.), except 
        section 738 of such title (42 U.S.C. 11448).
            (6) Subchapter I of chapter 421 of title 49, United States 
        Code.
    (b) Subsequent Repeals.--The following provisions are repealed:
            (1) The Job Training Partnership Act (29 U.S.C. 1501 et 
        seq.).
            (2) Title VII of the Stewart B. McKinney Homeless 
        Assistance Act (42 U.S.C. 11421 et seq.), except subtitle B and 
        section 738 of such title (42 U.S.C. 11431 et seq. and 11448).

SEC. 392. CONFORMING AMENDMENTS.

    (a) Preparation.--After consultation with the appropriate 
committees of Congress and the Director of the Office of Management and 
Budget, the Secretary shall prepare recommended legislation containing 
technical and conforming amendments to reflect the changes made by this 
subtitle.
    (b) Submission to Congress.--Not later than 6 months after the date 
of enactment of this Act, the Secretary shall submit to Congress the 
recommended legislation referred to under subsection (a).

SEC. 393. EFFECTIVE DATES.

    (a) Immediate Repeals.--The repeals made by section 391(a) shall 
take effect on the date of enactment of this Act.
    (b) Subsequent Repeals.--The repeals made by section 391(b) shall 
take effect on July 1, 1999.

           TITLE IV--WORKFORCE INVESTMENT-RELATED ACTIVITIES

                     Subtitle A--Wagner-Peyser Act

SEC. 401. DEFINITIONS.

    Section 2 of the Wagner-Peyser Act (29 U.S.C. 49a) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``or officials''; and
                    (B) by striking ``Job Training Partnership Act'' 
                and inserting ``Workforce Investment Partnership Act of 
                1998'';
            (2) by striking paragraphs (2) and (4);
            (3) by redesignating paragraphs (3) and (5) as paragraphs 
        (5) and (6), respectively;
            (4) by inserting after paragraph (1) the following:
            ``(2) the term `local workforce investment area' means a 
        local workforce investment area designated under section 307 of 
        the Workforce Investment Partnership Act of 1998;
            ``(3) the term `local workforce investment partnership' 
        means a local workforce investment partnership established 
        under section 308 of the Workforce Investment Partnership Act 
        of 1998;
            ``(4) the term `one-stop customer service system' means a 
        one-stop customer service system established under section 
        315(b) of the Workforce Investment Partnership Act of 1998;''; 
        and
            (5) in paragraph (5) (as redesignated in paragraph (3)), by 
        striking the semicolon and inserting ``; and''.

SEC. 402. FUNCTIONS.

    (a) In General.--Section 3 of the Wagner-Peyser Act (29 U.S.C. 49b) 
is amended--
            (1) in subsection (a), by striking ``United States 
        Employment Service'' and inserting ``Secretary''; and
            (2) by adding at the end the following:
    ``(c) The Secretary shall--
            ``(1) assist in the coordination and development of a 
        nationwide system of public labor exchange services, provided 
        as part of the one-stop customer service systems of the States;
            ``(2) assist in the development of continuous improvement 
        models for such nationwide system that ensure private sector 
        satisfaction with the system and meet the demands of jobseekers 
        relating to the system; and
            ``(3) ensure, for individuals otherwise eligible to receive 
        unemployment compensation, the provision of reemployment 
        services and other activities in which the individuals are 
        required to participate to receive the compensation.''.
    (b) Conforming Amendments.--Section 508(b)(1) of the Unemployment 
Compensation Amendments of 1976 (42 U.S.C. 603a(b)(1)) is amended--
            (1) by striking ``the third sentence of section 3(a)'' and 
        inserting ``section 3(b)''; and
            (2) by striking ``49b(a)'' and inserting ``49b(b))''.

SEC. 403. DESIGNATION OF STATE AGENCIES.

    Section 4 of the Wagner-Peyser Act (29 U.S.C. 49c) is amended--
            (1) by striking ``, through its legislature,'' and 
        inserting ``, pursuant to State statute,'';
            (2) by inserting after ``the provisions of this Act and'' 
        the following: ``, in accordance with such State statute, the 
        Governor shall''; and
            (3) by striking ``United States Employment Service'' and 
        inserting ``Secretary''.

SEC. 404. APPROPRIATIONS.

    Section 5(c) of the Wagner-Peyser Act (29 U.S.C. 49d(c)) is amended 
by striking paragraph (3).

SEC. 405. DISPOSITION OF ALLOTTED FUNDS.

    Section 7 of the Wagner-Peyser Act (29 U.S.C. 49f) is amended--
            (1) in subsection (b)(2), by striking ``private industry 
        council'' and inserting ``local workforce investment 
        partnership'';
            (2) in subsection (c)(2), by striking ``any program under'' 
        and all that follows and inserting ``any workforce investment 
        activity carried out under the Workforce Investment Partnership 
        Act of 1998.'';
            (3) in subsection (d)--
                    (A) by striking ``United States Employment 
                Service'' and inserting ``Secretary''; and
                    (B) by striking ``Job Training Partnership Act'' 
                and inserting ``Workforce Investment Partnership Act of 
                1998''; and
            (4) by adding at the end the following:
    ``(e) All job search, placement, recruitment, labor market 
information, and other labor exchange services authorized under 
subsection (a) shall be provided, consistent with the other 
requirements of this Act, as part of the one-stop customer service 
system established by the State.''.

SEC. 406. STATE PLANS.

    Section 8 of the Wagner-Peyser Act (29 U.S.C. 49g) is amended--
            (1) in subsection (a) to read as follows:
    ``(a) Any State desiring to receive assistance under this Act shall 
submit to the Secretary, as part of the State plan submitted under 
section 304 of the Workforce Investment Partnership Act of 1998, 
detailed plans for carrying out the provisions of this Act within such 
State.'';
            (2) by striking subsections (b) and (c);
            (3) by redesignating subsection (d) as subsection (b);
            (4) by inserting after subsection (b) the following:
    ``(c) The part of the State plan described in subsection (a) shall 
include the information described in paragraphs (9) and (17) of section 
304(b) of the Workforce Investment Partnership Act of 1998.'';
            (5) by redesignating subsection (e) as subsection (d); and
            (6) in subsection (d) (as redesignated in paragraph (5)), 
        by striking ``such plans'' and inserting ``such detailed 
        plans''.

SEC. 407. REPEAL OF FEDERAL ADVISORY COUNCIL.

    Section 11 of the Wagner-Peyser Act (29 U.S.C. 49j) is amended by 
striking ``11.'' and all that follows through ``(b) In'' and inserting 
``11. In''.

SEC. 408. REGULATIONS.

    Section 12 of the Wagner-Peyser Act (29 U.S.C. 49k) is amended by 
striking ``The Director, with the approval of the Secretary of Labor,'' 
and inserting ``The Secretary''.

SEC. 409. LABOR MARKET INFORMATION.

    The Wagner-Peyser Act is amended--
            (1) by redesignating section 15 (29 U.S.C. 49 note) as 
        section 16; and
            (2) by inserting after section 14 (29 U.S.C. 49l-1) the 
        following:

``SEC. 15. LABOR MARKET INFORMATION.

    ``(a) System Content.--
            ``(1) In general.--The Secretary, in accordance with the 
        provisions of this section, shall oversee the development, 
        maintenance, and continuous improvement of a system of labor 
        market information that includes--
                    ``(A) statistical data from cooperative statistical 
                survey and projection programs and data from 
                administrative reporting systems that, taken together, 
                enumerate, estimate, and project the employment 
                opportunities at the national, State, and local levels 
                in a timely manner, including data on--
                            ``(i) employment and unemployment status of 
                        the national, State, and local populations, as 
                        such data are developed by the Bureau of Labor 
                        Statistics and other sources;
                            ``(ii) industrial distribution of 
                        occupations, as well as current and projected 
                        employment opportunities and skill trends by 
                        occupation and industry, with particular 
                        attention paid to State and local employment 
                        opportunities;
                            ``(iii) the incidence of, industrial and 
                        geographical location of, and number of workers 
                        displaced by, permanent layoffs and plant 
                        closings; and
                            ``(iv) employee information maintained in a 
                        longitudinal manner and collected (as of the 
                        date of enactment of the Workforce Investment 
                        Partnership Act of 1998) by States;
                    ``(B) State and local employment information, and 
                other appropriate statistical data related to labor 
                market dynamics (compiled for States and localities 
                with technical assistance provided by the Secretary), 
                which shall--
                            ``(i) be current and comprehensive, as of 
                        the date used;
                            ``(ii) assist individuals to make informed 
                        choices relating to employment and training; 
                        and
                            ``(iii) assist employers to locate, 
                        identify skill traits of, and train individuals 
                        who are seeking employment and training;
                    ``(C) technical standards (which the Secretary 
                shall make publicly available) for data and information 
                described in subparagraphs (A) and (B) that, at a 
                minimum, meet the criteria of chapter 35 of title 44, 
                United States Code;
                    ``(D) procedures to ensure compatibility and 
                additivity of the data and information described in 
                subparagraphs (A) and (B) from national, State, and 
                local levels;
                    ``(E) procedures to support standardization and 
                aggregation of data from administrative reporting 
                systems described in subparagraph (A) of employment-
                related programs;
                    ``(F) analysis of data and information described in 
                subparagraphs (A) and (B) for uses such as State and 
                local policymaking;
                    ``(G) wide dissemination of such data, information, 
                and analysis, training for users of the data, 
                information, and analysis, and voluntary technical 
                standards for dissemination mechanisms; and
                    ``(H) programs of--
                            ``(i) research and demonstration; and
                            ``(ii) technical assistance for States and 
                        localities.
            ``(2) Information to be confidential.--
                    ``(A) In general.--No officer or employee of the 
                Federal Government or agent of the Federal Government 
                may--
                            ``(i) use any submission that is furnished 
                        for exclusively statistical purposes under the 
                        provisions of this section for any purpose 
                        other than the statistical purposes for which 
                        the submission is furnished;
                            ``(ii) make any publication or media 
                        transmittal of the data contained in the 
                        submission described in clause (i) that permits 
                        information concerning individual subjects to 
                        be reasonably inferred by either direct or 
                        indirect means; or
                            ``(iii) permit anyone other than a sworn 
                        officer, employee, or agent of any Federal 
                        department or agency, or a contractor 
                        (including an employee of a contractor) of such 
                        department or agency, to examine an individual 
                        submission described in clause (i);
                without the consent of the individual, agency, or other 
                person who is the subject of the submission or provides 
                that submission.
                    ``(B) Immunity from legal process.--Any submission 
                (including any data derived from the submission) that 
                is collected and retained by a Federal department or 
                agency, or an officer, employee, agent, or contractor 
                of such a department or agency, for exclusively 
                statistical purposes under this section shall be immune 
                from the legal process and shall not, without the 
                consent of the individual, agency, or other person who 
                is the subject of the submission or provides that 
                submission, be admitted as evidence or used for any 
                purpose in any action, suit, or other judicial or 
                administrative proceeding.
                    ``(C) Construction.--Nothing in this section shall 
                be construed to provide immunity from the legal process 
                for such submission (including any data derived from 
                the submission) if the submission is in the possession 
                of any person, agency, or entity other than the Federal 
                Government or an officer, employee, agent, or 
                contractor of the Federal Government, or if the 
                submission is independently collected, retained, or 
                produced for purposes other than the purposes of this 
                Act.
    ``(b) System Responsibilities.--
            ``(1) In general.--The labor market information system 
        shall be planned, administered, overseen, and evaluated through 
        a cooperative governance structure involving the Federal 
        Government and States.
            ``(2) Duties.--The Secretary, with respect to data 
        collection, analysis, and dissemination of labor market 
        information for the system, shall carry out the following 
        duties:
                    ``(A) Assign responsibilities within the Department 
                of Labor for elements of the system described in 
                subsection (a) to ensure that all statistical and 
                administrative data collected is consistent with 
                appropriate Bureau of Labor Statistics standards and 
                definitions.
                    ``(B) Actively seek the cooperation of other 
                Federal agencies to establish and maintain mechanisms 
                for ensuring complementarity and nonduplication in the 
                development and operation of statistical and 
                administrative data collection activities.
                    ``(C) Eliminate gaps and duplication in statistical 
                undertakings, with the systemization of wage surveys as 
                an early priority.
                    ``(D) In collaboration with the Bureau of Labor 
                Statistics and States, develop and maintain the 
                elements of the system described in subsection (a), 
                including the development of consistent definitions for 
                use by the States in collecting the data and 
                information described in subparagraphs (A) and (B), of 
                subsection (a)(1) and the development of the annual 
                plan under subsection (c).
                    ``(E) Establish procedures for the system to ensure 
                that--
                            ``(i) such data and information are timely;
                            ``(ii) administrative records for the 
                        system are consistent in order to facilitate 
                        aggregation of such data and information;
                            ``(iii) paperwork and reporting for the 
                        system are reduced to a minimum; and
                            ``(iv) States and localities are fully 
                        involved in the maintenance and continuous 
                        improvement of the system at the State and 
                        local levels.
    ``(c) Annual Plan.--The Secretary, with the assistance of the 
States and the Bureau of Labor Statistics, and with the assistance of 
other appropriate Federal agencies, shall prepare an annual plan which 
shall be the mechanism for achieving cooperative management of the 
nationwide labor market information system described in subsection (a) 
and the statewide labor market information systems that comprise the 
nationwide system. The plan shall--
            ``(1)(A) describe the elements of the system described in 
        subsection (a), including standards, definitions, formats, 
        collection methodologies, and other necessary system elements, 
        for use in collecting data and information described in 
        subparagraphs (A) and (B) of subsection (a)(1); and
            ``(B) include assurances that--
                    ``(i) the data will be timely and detailed;
                    ``(ii) administrative records will be standardized 
                to facilitate the aggregation of the data from local 
                areas to State and national levels and to support the 
                creation of new statistical series from program 
                records; and
                    ``(iii) paperwork and reporting requirements for 
                employers and individuals will be reduced;
            ``(2) include a report on the results of an annual consumer 
        satisfaction review concerning the performance of the system, 
        including the performance of the system in addressing the needs 
        of Congress, States, localities, employers, jobseekers, and 
        other consumers;
            ``(3) evaluate the performance of the system and recommend 
        needed improvements, taking into consideration the results of 
        the consumer satisfaction review, with particular attention 
        paid to the improvements needed at the State and local levels;
            ``(4) describe annual priorities, and priorities over 5 
        years, for the system;
            ``(5) describe current (as of the date of the submission of 
        the plan) spending and spending needs to carry out activities 
        under this section, including the costs to States and 
        localities of meeting the requirements of subsection (e)(2); 
        and
            ``(6) describe the involvement of States in the development 
        of the plan, through formal consultations conducted by the 
        Secretary in cooperation with representatives of the Governors 
        of every State, and with representatives of local partnerships, 
        pursuant to a process established by the Secretary in 
        cooperation with the States.
    ``(d) Coordination With the States.--The Secretary and the Bureau 
of Labor Statistics, in cooperation with the States, shall--
            ``(1) develop the annual plan described in subsection (c) 
        by holding formal consultations, at least once each quarter, on 
        the products and administration of the nationwide labor market 
        information system; and
            ``(2) hold the consultations with representatives from each 
        of the 10 Federal regions of the Employment and Training 
        Administration, elected (pursuant to a process established by 
        the Secretary) by and from the State labor market information 
        directors affiliated with the State agencies that perform the 
        duties described in subsection (e)(2).
    ``(e) State Responsibilities.--
            ``(1) Designation of state agency.--In order to receive 
        Federal financial assistance under this section, the Governor 
        of a State--
                    ``(A)(i) except as provided in clause (ii), shall 
                designate a single State agency to be responsible for 
                the management of the portions of the system described 
                in subsection (a) that comprise a statewide labor 
                market information system; and
                            ``(ii) may assign the State occupational 
                        information coordinating committee established 
                        under section 422 of the Carl D. Perkins 
                        Vocational and Applied Technology Education Act 
                        (as in effect on the day before the date of 
                        enactment of the Workforce Investment 
                        Partnership Act of 1998), the responsibility to 
                        carry out the functions of the system relating 
                        to labor market information that such committee 
                        carried out on the day prior to such date of 
                        enactment; and
                    ``(B) shall establish a process for the oversight 
                of such system.
            ``(2) Duties.--In order to receive Federal financial 
        assistance under this section, the State agency shall--
                    ``(A) consult with State and local employers, 
                participants, and local partnerships about the labor 
                market relevance of the data to be collected and 
                disseminated through the statewide labor market 
                information system;
                    ``(B) consult with State educational agencies and 
                local educational agencies concerning providing labor 
                market information in order to meet the needs of 
                secondary school and postsecondary school students who 
                seek such information;
                    ``(C) collect and disseminate for the system, on 
                behalf of the State and localities in the State, the 
                information and data described in subparagraphs (A) and 
                (B) of subsection (a)(1);
                    ``(D) maintain and continuously improve the 
                statewide labor market information system in accordance 
                with this section;
                    ``(E) perform contract and grant responsibilities 
                for data collection, analysis, and dissemination for 
                such system;
                    ``(F) conduct such other data collection, analysis, 
                and dissemination activities as will ensure an 
                effective statewide labor market information system;
                    ``(G) actively seek the participation of other 
                State and local agencies in data collection, analysis, 
                and dissemination activities in order to ensure 
                complementarity, compatibility, and usefulness of data;
                    ``(H) participate in the development of the annual 
                plan described in subsection (c); and
                    ``(I) utilize the quarterly records described in 
                sections 321(f)(2) and 312 of the Workforce Investment 
                Partnership Act of 1998 to assist the State and other 
                States in measuring State progress on State performance 
                measures.
            ``(3) Rule of construction.--Nothing in this section shall 
        be construed as limiting the ability of a State agency to 
        conduct additional data collection, analysis, and dissemination 
        activities with State funds or with Federal funds from sources 
        other than this section.
    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for each of fiscal years 1999 through 2004.
    ``(g) Definitions.--In this section, the terms `local area' and 
`local partnership' have the meanings given the terms in section 2 of 
the Workforce Investment Partnership Act of 1998.''.

SEC. 410. TECHNICAL AMENDMENTS.

    Sections 3(b), 6(b)(1), and 7(d) of the Wagner-Peyser Act (29 
U.S.C. 49b(b), 49e(b)(1), and 49f(d)) are amended by striking 
``Secretary of Labor'' and inserting ``Secretary''.

                Subtitle B--Linkages With Other Programs

SEC. 421. TRADE ACT OF 1974.

    Section 241 of the Trade Act of 1974 (19 U.S.C. 2313) is amended by 
adding at the end the following:
    ``(d) To be eligible to receive funds under this section, a State 
shall submit to the Secretary an application that includes the 
description and information described in paragraphs (9) and (17) of 
section 304(b) of the Workforce Investment Partnership Act of 1998.''.

SEC. 422. VETERANS' EMPLOYMENT PROGRAMS.

    Chapter 41 of title 38, United States Code, is amended by adding at 
the end the following:
``Sec. 4110B. Coordination and nonduplication
    ``In carrying out this chapter, the Secretary shall require that an 
appropriate administrative entity in each State enter into an agreement 
with the Secretary regarding the implementation of this Act that 
includes the description and information described in paragraphs (9) 
and (17) of section 304(b) of the Workforce Investment Partnership Act 
of 1998.''.

SEC. 423. OLDER AMERICANS ACT OF 1965.

    Section 502(b)(1) of the Older Americans Act of 1965 (42 U.S.C. 
3056(b)(1)) is amended--
            (1) in subparagraph (O), by striking ``; and'' and 
        inserting a semicolon;
            (2) in subparagraph (P), by striking the period and 
        inserting ``; and''; and
            (3) by adding at the end the following subparagraph:
            ``(Q) will provide to the Secretary the description and 
        information described in paragraphs (9) and (17) of section 
        304(b) of the Workforce Investment Partnership Act of 1998.''.

         Subtitle C--Twenty-First Century Workforce Commission

SEC. 431. SHORT TITLE.

    This subtitle may be cited as the ``Twenty-First Century Workforce 
Commission Act''.

SEC. 432. FINDINGS.

    Congress finds that--
            (1) information technology is one of the fastest growing 
        areas in the United States economy;
            (2) the United States is a world leader in the information 
        technology industry;
            (3) the continued growth and prosperity of the information 
        technology industry is important to the continued prosperity of 
        the United States economy;
            (4) highly skilled employees are essential for the success 
        of business entities in the information technology industry and 
        other business entities that use information technology;
            (5) employees in information technology jobs are highly 
        paid;
            (6) as of the date of enactment of this Act, these 
        employees are in high demand in all industries and all regions 
        of the United States; and
            (7) through a concerted effort by business entities, the 
        Federal Government, the governments of States and political 
        subdivisions of States, and educational institutions, more 
        individuals will gain the skills necessary to enter into a 
        technology-based job market, ensuring that the United States 
        remains the world leader in the information technology 
        industry.

SEC. 433. DEFINITIONS.

    In this subtitle:
            (1) Business entity.--The term ``business entity'' means a 
        firm, corporation, association, partnership, consortium, joint 
        venture, or other form of enterprise.
            (2) Commission.--The term ``Commission'' means the Twenty-
        First Century Workforce Commission established under section 
        434.
            (3) Information technology.--The term ``information 
        technology'' has the meaning given that term in section 5002 of 
        the Information Technology Management Reform Act of 1996 (110 
        Stat. 679).
            (4) State.--The term ``State'' means each of the several 
        States of the United States and the District of Columbia.

SEC. 434. ESTABLISHMENT OF TWENTY-FIRST CENTURY WORKFORCE COMMISSION.

    (a) Establishment.--There is established a commission to be known 
as the Twenty-First Century Workforce Commission.
    (b) Membership.--
            (1) Composition.--
                    (A) In general.--The Commission shall be composed 
                of 21 members, of which--
                            (i) 7 members shall be appointed by the 
                        President;
                            (ii) 7 members shall be appointed by the 
                        Majority Leader of the Senate; and
                            (iii) 7 members shall be appointed by the 
                        Speaker of the House of Representatives.
                    (B) Governmental representatives.--Of the members 
                appointed under this subsection--
                            (i) 1 member shall be an officer or 
                        employee of the Department of Labor, who shall 
                        be appointed by the President;
                            (ii) 1 member shall be an officer or 
                        employee of the Department of Education, who 
                        shall be appointed by the President; and
                            (iii) 2 members shall be representatives of 
                        the governments of States and political 
                        subdivisions of States, 1 of whom shall be 
                        appointed by the Majority Leader of the Senate 
                        and 1 of whom shall be appointed by the Speaker 
                        of the House of Representatives.
                    (C) Educators.--Of the members appointed under this 
                subsection, 6 shall be educators who are selected from 
                among elementary, secondary, vocational, and 
                postsecondary educators--
                            (i) 2 of whom shall be appointed by the 
                        President;
                            (ii) 2 of whom shall be appointed by the 
                        Majority Leader of the Senate; and
                            (iii) 2 of whom shall be appointed by the 
                        Speaker of the House of Representatives.
                    (D) Business representatives.--
                            (i) In general.--Of the members appointed 
                        under this subsection, at least 4 shall be 
                        individuals who are employed by non-information 
                        technology business entities.
                            (ii) Size.--Members appointed under this 
                        subsection in accordance with clause (i) shall, 
                        to the extent practicable, include individuals 
                        from business entities of a size that is small 
                        or average for a non-information technology 
                        business entity.
            (2) Date.--The appointments of the members of the 
        Commission shall be made by the later of--
                    (A) October 31, 1998; or
                    (B) the date that is 45 days after the date of 
                enactment of this Act.
    (c) Period of Appointment; Vacancies.--Members shall be appointed 
for the life of the Commission. Any vacancy in the Commission shall not 
affect its powers, but shall be filled in the same manner as the 
original appointment.
    (d) Initial Meeting.--No later than 30 days after the date on which 
all members of the Commission have been appointed, the Commission shall 
hold its first meeting.
    (e) Meetings.--The Commission shall meet at the call of the 
Chairperson.
    (f) Quorum.--A majority of the members of the Commission shall 
constitute a quorum, but a lesser number of members may hold hearings.
    (g) Chairperson and Vice Chairperson.--The Commission shall select 
a chairperson and vice chairperson from among its members.

SEC. 435. DUTIES OF THE COMMISSION.

    (a) Study.--
            (1) In general.--The Commission shall conduct a thorough 
        study of all matters relating to the information technology 
        workforce in the United States.
            (2) Matters studied.--The matters studied by the Commission 
        shall include an examination of--
                    (A) the skills necessary to enter the information 
                technology workforce;
                    (B) ways to expand the number of skilled 
                information technology workers; and
                    (C) the relative efficacy of programs in the United 
                States and foreign countries to train information 
                technology workers, with special emphasis on programs 
                that provide for secondary education or postsecondary 
                education in a program other than a 4-year 
                baccalaureate program (including associate degree 
                programs and graduate degree programs).
            (3) Public hearings.--As part of the study conducted under 
        this subsection, the Commission shall hold public hearings in 
        each region of the United States concerning the issues referred 
        to in subparagraphs (A) and (B) of paragraph (2).
            (4) Existing information.--To the extent practicable, in 
        carrying out the study under this subsection, the Commission 
        shall identify and use existing information related to the 
        issues referred to in subparagraphs (A) and (B) of paragraph 
        (2).
            (5) Consultation with chief information officers council.--
        In carrying out the study under this subsection, the Commission 
        shall consult with the Chief Information Officers Council 
        established under Executive Order No. 13011.
    (b) Report.--Not later than 6 months after the first meeting of the 
Commission, the Commission shall submit a report to the President and 
the Congress that shall contain a detailed statement of the findings 
and conclusions of the Commission resulting from the study, together 
with its recommendations for such legislation and administrative 
actions as the Commission considers to be appropriate.
    (c) Facilitation of Exchange of Information.--In carrying out the 
study under subsection (a), the Commission shall, to the extent 
practicable, facilitate the exchange of information concerning the 
issues that are the subject of the study among--
            (1) officials of the Federal Government and the governments 
        of States and political subdivisions of States; and
            (2) educators from Federal, State, and local institutions 
        of higher education and secondary schools.

SEC. 436. POWERS OF THE COMMISSION.

    (a) Hearings.--The Commission may hold such hearings, sit and act 
at such times and places, take such testimony, and receive such 
evidence as the Commission considers advisable to carry out the 
purposes of this subtitle.
    (b) Information From Federal Agencies.--The Commission may secure 
directly from any Federal department or agency such information as the 
Commission considers necessary to carry out the provisions of this 
subtitle. Upon request of the Chairperson of the Commission, the head 
of such department or agency shall furnish such information to the 
Commission.
    (c) Postal Services.--The Commission may use the United States 
mails in the same manner and under the same conditions as other 
departments and agencies of the Federal Government.
    (d) Gifts.--The Commission may accept, use, and dispose of gifts or 
donations of services or property.

SEC. 437. COMMISSION PERSONNEL MATTERS.

    (a) Compensation of Members.--Except as provided in subsection (b), 
each member of the Commission who is not an officer or employee of the 
Federal Government shall serve without compensation. All members of the 
Commission who are officers or employees of the United States shall 
serve without compensation in addition to that received for their 
services as officers or employees of the United States.
    (b) Travel Expenses.--The members of the Commission shall be 
allowed travel expenses, including per diem in lieu of subsistence, at 
rates authorized for employees of agencies under subchapter I of 
chapter 57 of title 5, United States Code, while away from their homes 
or regular places of business in the performance of services for the 
Commission.
    (c) Staff.--
            (1) In general.--The Chairperson of the Commission may, 
        without regard to the civil service laws and regulations, 
        appoint and terminate an executive director and such other 
        additional personnel as may be necessary to enable the 
        Commission to perform its duties. The employment of an 
        executive director shall be subject to confirmation by the 
        Commission.
            (2) Compensation.--The Chairperson of the Commission may 
        fix the compensation of the executive director and other 
        personnel without regard to the provisions of chapter 51 and 
        subchapter III of chapter 53 of title 5, United States Code, 
        relating to classification of positions and General Schedule 
        pay rates, except that the rate of pay for the executive 
        director and other personnel may not exceed the rate payable 
        for level V of the Executive Schedule under section 5316 of 
        such title.
    (d) Detail of Government Employees.--Any Federal Government 
employee may be detailed to the Commission without reimbursement, and 
such detail shall be without interruption or loss of civil service 
status or privilege.
    (e) Procurement of Temporary and Intermittent Services.--The 
Chairperson of the Commission may procure temporary and intermittent 
services under section 3109(b) of title 5, United States Code, at rates 
for individuals that do not exceed the daily equivalent of the annual 
rate of basic pay prescribed for level V of the Executive Schedule 
under section 5316 of such title.

SEC. 438. TERMINATION OF THE COMMISSION.

    The Commission shall terminate on the date that is 90 days after 
the date on which the Commission submits its report under section 
435(b).

SEC. 439. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated such sums 
as may be necessary for fiscal year 1999 to the Commission to carry out 
the purposes of this subtitle.
    (b) Availability.--Any sums appropriated under the authorization 
contained in this section shall remain available, without fiscal year 
limitation, until expended.

                      TITLE V--GENERAL PROVISIONS

SEC. 501. STATE UNIFIED PLAN.

    (a) Definition of Appropriate Secretary.--In this section, the term 
``appropriate Secretary'' means the head of the Federal agency who 
exercises administrative authority over an activity or program 
described in subsection (b).
    (b) State Unified Plan.--
            (1) In general.--A State may develop and submit to the 
        appropriate Secretaries a State unified plan for 2 or more of 
        the activities or programs set forth in paragraph (2). The 
        State unified plan shall cover 1 or more of the activities set 
        forth in subparagraphs (A) through (C) of paragraph (2) and may 
        cover 1 or more of the activities set forth in subparagraphs 
        (D) through (M) of paragraph (2).
            (2) Activities.--The activities and programs referred to in 
        paragraph (1) are as follows:
                    (A) Activities authorized under title I.
                    (B) Activities authorized under title II.
                    (C) Activities authorized under title III.
                    (D) Programs authorized under section 6(d) of the 
                Food Stamp Act of 1977 (7 U.S.C. 2015(d)).
                    (E) Work programs authorized under section 6(o) of 
                the Food Stamp Act of 1977 (7 U.S.C. 2015(o)).
                    (F) Activities authorized under chapter 2 of title 
                II of the Trade Act of 1974 (19 U.S.C. 2271 et seq.).
                    (G) Programs authorized under the Wagner-Peyser Act 
                (29 U.S.C. 49 et seq.).
                    (H) Programs authorized under title I of the 
                Rehabilitation Act of 1973 (29 U.S.C. 720 et seq.), 
                other than section 112 of such Act (29 U.S.C. 732).
                    (I) Activities authorized under chapter 41 of title 
                38, United States Code.
                    (J) Programs authorized under State unemployment 
                compensation laws (in accordance with applicable 
                Federal law).
                    (K) Programs authorized under part A of title IV of 
                the Social Security Act (42 U.S.C. 601 et seq.).
                    (L) Programs authorized under title V of the Older 
                Americans Act of 1965 (42 U.S.C. 3056 et seq.).
                    (M) Training activities carried out by the 
                Department of Housing and Urban Development.
    (c) Requirements.--
            (1) In general.--The portion of a State unified plan 
        covering an activity or program described in subsection (b) 
        shall be subject to the requirements, if any, applicable to a 
        plan or application for assistance under the Federal statute 
        authorizing the activity or program.
            (2) Additional submission not required.--A State that 
        submits a State unified plan covering an activity or program 
        described in subsection (b) that is approved under subsection 
        (d) shall not be required to submit any other plan or 
        application in order to receive Federal funds to carry out the 
        activity or program.
            (3) Coordination.--A State unified plan shall include--
                    (A) a description of the methods used for joint 
                planning and coordination of the programs and 
                activities included in the unified plan; and
                    (B) an assurance that the methods included an 
                opportunity for the entities responsible for planning 
                or administering such programs and activities to review 
                and comment on all portions of the unified plan.
    (d) Approval by the Appropriate Secretaries.--
            (1) Jurisdiction.--The appropriate Secretary shall have the 
        authority to approve the portion of the State unified plan 
        relating to the activity or program over which the appropriate 
        Secretary exercises administrative authority. On the approval 
        of the appropriate Secretary, the portion of the plan relating 
        to the activity or program shall be implemented by the State 
        pursuant to the applicable portion of the State unified plan.
            (2) Approval.--
                    (A) In general.--A portion of the State unified 
                plan covering an activity or program described in 
                subsection (b) that is submitted to the appropriate 
                Secretary under this section shall be considered to be 
                approved by the appropriate Secretary at the end of the 
                90-day period beginning on the day the appropriate 
                Secretary receives the portion, unless the appropriate 
                Secretary makes a written determination, during the 90-
                day period, that the portion is not consistent with the 
                requirements of the Federal statute authorizing the 
                activity or program including the criteria for approval 
                of a plan or application, if any, under such statute or 
                the plan is not consistent with the requirements of 
                subsection (c)(3).
                    (B) Special rule.--In subparagraph (A), the term 
                ``criteria for approval of a State plan'', relating to 
                activities carried out under title I, II, or III, 
                includes a requirement for agreement between the State 
                and the appropriate Secretary regarding State 
                performance measures, including levels of performance.

SEC. 502. DEFINITIONS FOR CORE INDICATORS OF PERFORMANCE.

    (a) In General.--In order to ensure nationwide comparability of 
performance data, the Secretary of Labor and the Secretary of 
Education, after consultation with the representatives described in 
subsection (b), shall issue definitions for performance measures 
established under titles I and II and definitions for core indicators 
of performance for performance measures established under title III.
    (b) Representatives.--The representatives referred to in subsection 
(a) are representatives of States and political subdivisions, business 
and industry, employees, eligible providers of employment and training 
activities (as defined in section 2(13)(B)), educators, participants in 
activities carried out under this Act, State Directors of vocational 
education, State Directors of adult education, providers of vocational 
education, providers of adult education, providers of literacy 
services, individuals with expertise in serving the employment and 
training needs of disadvantaged youth (as defined in section 
302(b)(3)(C)), parents, and other interested parties, with expertise 
regarding activities authorized under this Act.

SEC. 503. TRANSITION PROVISIONS.

    The Secretary of Education or the Secretary of Labor, as 
appropriate, shall take such steps as such Secretary determines to be 
appropriate to provide for the orderly transition to the authority of 
this Act from any authority under provisions of law to be repealed 
under subtitle E of title I, subtitle B of title II, or subtitle E of 
title III, or any related authority.

SEC. 504. PRIVACY.

    Nothing in this Act shall be construed to supersede the privacy 
protections afforded parents and students under section 444 of the 
General Education Provisions Act (20 U.S.C. 1232g), as added by the 
Family Educational Rights and Privacy Act of 1974 (section 513 of 
Public Law 93-380; 88 Stat. 571).

SEC. 505. LIMITATION.

    None of the funds made available under this Act may be used to 
carry out activities authorized under the School-to-Work Opportunities 
Act of 1994 (20 U.S.C. 6101 et seq.).

SEC. 506. EFFECTIVE DATE.

    (a) In General.--Except as otherwise provided in this Act, this Act 
takes effect on July 1, 1999.
    (b) Early Implementation.--At the option of a State, the Governor 
of the State and the chief official of the eligible agencies in the 
State may use funds made available under a provision of law described 
in section 503, or any related authority to implement this Act at any 
time prior to July 1, 1999.
    (c) Early Implementation and Transition Provisions.--Section 503 
and this section take effect on the date of enactment of this Act.
    (d) Twenty-First Century Workforce Commission.--Subtitle C of title 
IV takes effect on the date of enactment of this Act.

            TITLE VI--REHABILITATION ACT AMENDMENTS OF 1998

SEC. 601. SHORT TITLE.

    This title may be cited as the ``Rehabilitation Act Amendments of 
1998''.

SEC. 602. TITLE.

    The title of the Rehabilitation Act of 1973 is amended by striking 
``to establish special responsibilities'' and all that follows and 
inserting the following: ``to create linkage between State vocational 
rehabilitation programs and workforce investment activities carried out 
under the Workforce Investment Partnership Act of 1998, to establish 
special responsibilities for the Secretary of Education for 
coordination of all activities with respect to individuals with 
disabilities within and across programs administered by the Federal 
Government, and for other purposes.''.

SEC. 603. GENERAL PROVISIONS.

    The Rehabilitation Act of 1973 is amended by striking the matter 
preceding title I and inserting the following:

``SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    ``(a) Short Title.--This Act may be cited as the `Rehabilitation 
Act of 1973'.
    ``(b) Table of Contents.--The table of contents for this Act is as 
follows:

``Sec. 1. Short title; table of contents.
``Sec. 2. Findings; purpose; policy.
``Sec. 3. Rehabilitation Services Administration.
``Sec. 4. Advance funding.
``Sec. 5. Joint funding.
``Sec. 7. Definitions.
``Sec. 8. Allotment percentage.
``Sec. 10. Nonduplication.
``Sec. 11. Application of other laws.
``Sec. 12. Administration of the Act.
``Sec. 13. Reports.
``Sec. 14. Evaluation.
``Sec. 15. Information clearinghouse.
``Sec. 16. Transfer of funds.
``Sec. 17. State administration.
``Sec. 18. Review of applications.
``Sec. 19. Carryover.
``Sec. 20. Client assistance information.
``Sec. 21. Traditionally underserved populations.

             ``TITLE I--VOCATIONAL REHABILITATION SERVICES

                      ``Part A--General Provisions

``Sec. 100. Declaration of policy; authorization of appropriations.
``Sec. 101. State plans.
``Sec. 102. Eligibility and individualized rehabilitation employment 
                            plan.
``Sec. 103. Vocational rehabilitation services.
``Sec. 104. Non-Federal share for establishment of program.
``Sec. 105. State Rehabilitation Council.
``Sec. 106. Evaluation standards and performance indicators.
``Sec. 107. Monitoring and review.
``Sec. 108. Expenditure of certain amounts.
``Sec. 109. Training of employers with respect to Americans with 
                            Disabilities Act of 1990.

           ``Part B--Basic Vocational Rehabilitation Services

``Sec. 110. State allotments.
``Sec. 111. Payments to States.
``Sec. 112. Client assistance program.

      ``Part C--American Indian Vocational Rehabilitation Services

``Sec. 121. Vocational rehabilitation services grants.

    ``Part D--Vocational Rehabilitation Services Client Information

``Sec. 131. Data sharing.

                   ``TITLE II--RESEARCH AND TRAINING

``Sec. 200. Declaration of purpose.
``Sec. 201. Authorization of appropriations.
``Sec. 202. National Institute on Disability and Rehabilitation 
                            Research.
``Sec. 203. Interagency Committee.
``Sec. 204. Research and other covered activities.
``Sec. 205. Rehabilitation Research Advisory Council.

    ``TITLE III--PROFESSIONAL DEVELOPMENT AND SPECIAL PROJECTS AND 
                             DEMONSTRATIONS

``Sec. 301. Declaration of purpose and competitive basis of grants and 
                            contracts.
``Sec. 302. Training.
``Sec. 303. Special demonstration program.
``Sec. 304. Migrant and seasonal farmworkers.
``Sec. 305. Recreational programs.
``Sec. 306. Measuring of project outcomes and performance.

               ``TITLE IV--NATIONAL COUNCIL ON DISABILITY

``Sec. 400. Establishment of National Council on Disability.
``Sec. 401. Duties of National Council.
``Sec. 402. Compensation of National Council members.
``Sec. 403. Staff of National Council.
``Sec. 404. Administrative powers of National Council.
``Sec. 405. Authorization of Appropriations.

                     ``TITLE V--RIGHTS AND ADVOCACY

``Sec. 501. Employment of individuals with disabilities.
``Sec. 502. Architectural and Transportation Barriers Compliance Board.
``Sec. 503. Employment under Federal contracts.
``Sec. 504. Nondiscrimination under Federal grants and programs.
``Sec. 505. Remedies and attorneys' fees.
``Sec. 506. Secretarial responsibilities.
``Sec. 507. Interagency Disability Coordinating Council.
``Sec. 508. Electronic and information technology regulations.
``Sec. 509. Protection and advocacy of individual rights.

 ``TITLE VI--EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS WITH DISABILITIES

``Sec. 601. Short title.

``Part A--Projects in Telecommuting and Self-Employment for Individuals 
                           With Disabilities

``Sec. 611. Findings, policies, and purposes.
``Sec. 612. Projects in telecommuting for individuals with 
                            disabilities.
``Sec. 613. Projects in self-employment for individuals with 
                            disabilities.
``Sec. 614. Discretionary authority for dual-purpose applications.
``Sec. 615. Authorization of appropriations.

                    ``Part B--Projects With Industry

``Sec. 621. Projects with industry.
``Sec. 622. Authorization of appropriations.

 ``Part C--Supported Employment Services for Individuals With the Most 
                        Significant Disabilities

``Sec. 631. Purpose.
``Sec. 632. Allotments.
``Sec. 633. Availability of services.
``Sec. 634. Eligibility.
``Sec. 635. State plan.
``Sec. 636. Restriction.
``Sec. 637. Savings provision.
``Sec. 638. Authorization of appropriations.

 ``TITLE VII--INDEPENDENT LIVING SERVICES AND CENTERS FOR INDEPENDENT 
                                 LIVING

         ``Chapter 1--Individuals With Significant Disabilities

                      ``Part A--General Provisions

``Sec. 701. Purpose.
``Sec. 702. Definitions.
``Sec. 703. Eligibility for receipt of services.
``Sec. 704. State plan.
``Sec. 705. Statewide Independent Living Council.
``Sec. 706. Responsibilities of the Commissioner.

                 ``Part B--Independent Living Services

``Sec. 711. Allotments.
``Sec. 712. Payments to States from allotments.
``Sec. 713. Authorized uses of funds.
``Sec. 714. Authorization of appropriations.

                ``Part C--Centers for Independent Living

``Sec. 721. Program authorization.
``Sec. 722. Grants to centers for independent living in States in which 
                            Federal funding exceeds State funding.
``Sec. 723. Grants to centers for independent living in States in which 
                            State funding equals or exceeds Federal 
                            funding.
``Sec. 724. Centers operated by State agencies.
``Sec. 725. Standards and assurances for centers for independent 
                            living.
``Sec. 726. Definitions.
``Sec. 727. Authorization of appropriations.

``Chapter 2--Independent Living Services for Older Individuals Who Are 
                                 Blind

``Sec. 751. Definition.
``Sec. 752. Program of grants.
``Sec. 753. Authorization of appropriations.

                      ``findings; purpose; policy

    ``Sec. 2. (a) Findings.--Congress finds that--
            ``(1) millions of Americans have one or more physical or 
        mental disabilities and the number of Americans with such 
        disabilities is increasing;
            ``(2) individuals with disabilities constitute one of the 
        most disadvantaged groups in society;
            ``(3) disability is a natural part of the human experience 
        and in no way diminishes the right of individuals to--
                    ``(A) live independently;
                    ``(B) enjoy self-determination;
                    ``(C) make choices;
                    ``(D) contribute to society;
                    ``(E) pursue meaningful careers; and
                    ``(F) enjoy full inclusion and integration in the 
                economic, political, social, cultural, and educational 
                mainstream of American society;
            ``(4) increased employment of individuals with disabilities 
        can be achieved through implementation of statewide activities 
        carried out under the Workforce Investment Partnership Act of 
        1998 that provide meaningful and effective participation for 
        individuals with disabilities in workforce investment 
        activities and activities carried out under the vocational 
        rehabilitation program established under title I, and through 
        the provision of independent living services, support services, 
        and meaningful opportunities for employment in integrated work 
        settings through the provision of reasonable accommodations;
            ``(5) individuals with disabilities continually encounter 
        various forms of discrimination in such critical areas as 
        employment, housing, public accommodations, education, 
        transportation, communication, recreation, 
        institutionalization, health services, voting, and public 
        services; and
            ``(6) the goals of the Nation properly include the goal of 
        providing individuals with disabilities with the tools 
        necessary to--
                    ``(A) make informed choices and decisions; and
                    ``(B) achieve equality of opportunity, full 
                inclusion and integration in society, employment, 
                independent living, and economic and social self-
                sufficiency, for such individuals.
    ``(b) Purpose.--The purposes of this Act are--
            ``(1) to empower individuals with disabilities to maximize 
        employment, economic self-sufficiency, independence, and 
        inclusion and integration into society, through--
                    ``(A) statewide activities carried out in 
                accordance with the Workforce Investment Partnership 
                Act of 1998 that include, as integral components, 
                comprehensive and coordinated state-of-the-art programs 
                of vocational rehabilitation;
                    ``(B) independent living centers and services;
                    ``(C) research;
                    ``(D) training;
                    ``(E) demonstration projects; and
                    ``(F) the guarantee of equal opportunity; and
            ``(2) to ensure that the Federal Government plays a 
        leadership role in promoting the employment of individuals with 
        disabilities, especially individuals with significant 
        disabilities, and in assisting States and providers of services 
        in fulfilling the aspirations of such individuals with 
        disabilities for meaningful and gainful employment and 
        independent living.
    ``(c) Policy.--It is the policy of the United States that all 
programs, projects, and activities receiving assistance under this Act 
shall be carried out in a manner consistent with the principles of--
            ``(1) respect for individual dignity, personal 
        responsibility, self-determination, and pursuit of meaningful 
        careers, based on informed choice, of individuals with 
        disabilities;
            ``(2) respect for the privacy, rights, and equal access 
        (including the use of accessible formats), of the individuals;
            ``(3) inclusion, integration, and full participation of the 
        individuals;
            ``(4) support for the involvement of an individual's 
        representative if an individual with a disability requests, 
        desires, or needs such support; and
            ``(5) support for individual and systemic advocacy and 
        community involvement.

                ``rehabilitation services administration

    ``Sec. 3. (a) There is established in the Office of the Secretary a 
Rehabilitation Services Administration which shall be headed by a 
Commissioner (hereinafter in this Act referred to as the 
`Commissioner') appointed by the President by and with the advice and 
consent of the Senate. Except for titles IV and V and part A of title 
VI and as otherwise specifically provided in this Act, such 
Administration shall be the principal agency, and the Commissioner 
shall be the principal officer, of such Department for carrying out 
this Act. The Commissioner shall be an individual with substantial 
experience in rehabilitation and in rehabilitation program management. 
In the performance of the functions of the office, the Commissioner 
shall be directly responsible to the Secretary or to the Under 
Secretary or an appropriate Assistant Secretary of such Department, as 
designated by the Secretary. The functions of the Commissioner shall 
not be delegated to any officer not directly responsible, both with 
respect to program operation and administration, to the Commissioner. 
Any reference in this Act to duties to be carried out by the 
Commissioner shall be considered to be a reference to duties to be 
carried out by the Secretary acting through the Commissioner. In 
carrying out any of the functions of the office under this Act, the 
Commissioner shall be guided by general policies of the National 
Council on Disability established under title IV of this Act.
    ``(b) The Secretary shall take whatever action is necessary to 
ensure that funds appropriated pursuant to this Act, as well as 
unexpended appropriations for carrying out the Vocational 
Rehabilitation Act (29 U.S.C. 31-42), are expended only for the 
programs, personnel, and administration of programs carried out under 
this Act.
    ``(c) The Secretary shall take such action as necessary to ensure 
that--
            ``(1) the staffing of the Rehabilitation Services 
        Administration shall be in sufficient numbers to meet program 
        needs and at levels which will attract and maintain the most 
        qualified personnel; and
            ``(2) such staff includes individuals who have training and 
        experience in the provision of rehabilitation services and that 
        staff competencies meet professional standards.

                           ``advance funding

    ``Sec. 4. (a) For the purpose of affording adequate notice of 
funding available under this Act, appropriations under this Act are 
authorized to be included in the appropriation Act for the fiscal year 
preceding the fiscal year for which they are available for obligation.
    ``(b) In order to effect a transition to the advance funding method 
of timing appropriation action, the authority provided by subsection 
(a) of this section shall apply notwithstanding that its initial 
application will result in the enactment in the same year (whether in 
the same appropriation Act or otherwise) of two separate 
appropriations, one for the then current fiscal year and one for the 
succeeding fiscal year.

                            ``joint funding

    ``Sec. 5. Pursuant to regulations prescribed by the President, and 
to the extent consistent with the other provisions of this Act, where 
funds are provided for a single project by more than one Federal agency 
to an agency or organization assisted under this Act, the Federal 
agency principally involved may be designated to act for all in 
administering the funds provided, and, in such cases, a single non-
Federal share requirement may be established according to the 
proportion of funds advanced by each agency. When the principal agency 
involved is the Rehabilitation Services Administration, it may waive 
any grant or contract requirement (as defined by such regulations) 
under or pursuant to any law other than this Act, which requirement is 
inconsistent with the similar requirements of the administering agency 
under or pursuant to this Act.

``SEC. 7. DEFINITIONS.

    ``For the purposes of this Act:
            ``(1) Administrative costs.--The term `administrative 
        costs' means expenditures incurred by the designated State unit 
        in the performance of administrative functions under the 
        vocational rehabilitation program carried out under title I, 
        including expenses related to program planning, development, 
        monitoring, and evaluation, including--
                    ``(A) expenses for--
                            ``(i) quality assurance;
                            ``(ii) budgeting, accounting, financial 
                        management, information systems, and related 
                        data processing;
                            ``(iii) provision of information about the 
                        program to the public;
                            ``(iv) technical assistance and related 
                        support services to other State agencies, 
                        private nonprofit organizations, and businesses 
                        and industries, except for technical assistance 
                        and support services described in section 
                        103(b)(5);
                            ``(v) the State Rehabilitation Council and 
                        other entities that advise the designated State 
                        unit with regard to the provision of vocational 
                        rehabilitation services;
                            ``(vi) removal of architectural barriers in 
                        State vocational rehabilitation agency offices 
                        and State operated rehabilitation facilities;
                            ``(vii) operation and maintenance of 
                        designated State unit facilities, equipment, 
                        and grounds;
                            ``(viii) supplies; and
                            ``(ix)(I) administration of the 
                        comprehensive system of personnel development 
                        described in section 101(a)(7), including 
                        personnel administration, and administration of 
                        affirmative action plans;
                            ``(II) training and staff development; and
                            ``(III) administrative salaries, including 
                        clerical and other support staff salaries, in 
                        support of the administrative functions;
                    ``(B) travel costs related to carrying out the 
                program, other than travel costs related to the 
                provision of services;
                    ``(C) costs incurred in conducting reviews of 
                rehabilitation counselor or coordinator determinations; 
                and
                    ``(D) legal expenses required in the administration 
                of the program.
            ``(2) Assessment for determining eligibility and vocational 
        rehabilitation needs.--The term `assessment for determining 
        eligibility and vocational rehabilitation needs' means, as 
        appropriate in each case--
                    ``(A)(i) a review of existing data--
                            ``(I) to determine whether an individual is 
                        eligible for vocational rehabilitation 
                        services; and
                            ``(II) to assign priority for an order of 
                        selection described in section 101(a)(5)(A) in 
                        the States that use an order of selection 
                        pursuant to section 101(a)(5)(A); and
                    ``(ii) to the extent necessary, the provision of 
                appropriate assessment activities to obtain necessary 
                additional data to make such determination and 
                assignment;
                    ``(B) to the extent additional data is necessary to 
                make a determination of the employment outcomes, and 
                the objectives, nature, and scope of vocational 
                rehabilitation services, to be included in the 
                individualized rehabilitation employment plan of an 
                eligible individual, a comprehensive assessment to 
                determine the unique strengths, resources, priorities, 
                concerns, abilities, capabilities, interests, and 
                informed choice, including the need for supported 
                employment, of the eligible individual, which 
                comprehensive assessment--
                            ``(i) is limited to information that is 
                        necessary to identify the rehabilitation needs 
                        of the individual and to develop the 
                        individualized rehabilitation employment plan 
                        of the eligible individual;
                            ``(ii) uses, as a primary source of such 
                        information, to the maximum extent possible and 
                        appropriate and in accordance with 
                        confidentiality requirements--
                                    ``(I) existing information obtained 
                                for the purposes of determining the 
                                eligibility of the individual and 
                                assigning priority for an order of 
                                selection described in section 
                                101(a)(5)(A) for the individual; and
                                    ``(II) such information as can be 
                                provided by the individual and, where 
                                appropriate, by the family of the 
                                individual;
                            ``(iii) may include, to the degree needed 
                        to make such a determination, an assessment of 
                        the personality, interests, interpersonal 
                        skills, intelligence and related functional 
                        capacities, educational achievements, work 
                        experience, vocational aptitudes, personal and 
                        social adjustments, and employment 
                        opportunities of the individual, and the 
                        medical, psychiatric, psychological, and other 
                        pertinent vocational, educational, cultural, 
                        social, recreational, and environmental 
                        factors, that affect the employment and 
                        rehabilitation needs of the individual; and
                            ``(iv) may include, to the degree needed, 
                        an appraisal of the patterns of work behavior 
                        of the individual and services needed for the 
                        individual to acquire occupational skills, and 
                        to develop work attitudes, work habits, work 
                        tolerance, and social and behavior patterns 
                        necessary for successful job performance, 
                        including the utilization of work in real job 
                        situations to assess and develop the capacities 
                        of the individual to perform adequately in a 
                        work environment;
                    ``(C) referral, for the provision of rehabilitation 
                technology services to the individual, to assess and 
                develop the capacities of the individual to perform in 
                a work environment; and
                    ``(D) an exploration of the individual's abilities, 
                capabilities, and capacity to perform in work 
                situations, through the use of trial work experiences, 
                including experiences in which the individual is 
                provided appropriate supports and training.
            ``(3) Assistive technology device.--The term `assistive 
        technology device' has the meaning given such term in section 
        3(2) of the Technology-Related Assistance for Individuals With 
        Disabilities Act of 1988 (29 U.S.C. 2202(2)), except that the 
        reference in such section to the term `individuals with 
        disabilities' shall be deemed to mean more than one individual 
        with a disability as defined in paragraph (20)(A).
            ``(4) Assistive technology service.--The term `assistive 
        technology service' has the meaning given such term in section 
        3(3) of the Technology-Related Assistance for Individuals With 
        Disabilities Act of 1988 (29 U.S.C. 2202(3)), except that the 
        reference in such section--
                    ``(A) to the term `individual with a disability' 
                shall be deemed to mean an individual with a 
                disability, as defined in paragraph (20)(A); and
                    ``(B) to the term `individuals with disabilities' 
                shall be deemed to mean more than one such individual.
            ``(5) Community rehabilitation program.--The term 
        `community rehabilitation program' means a program that 
        provides directly or facilitates the provision of vocational 
        rehabilitation services to individuals with disabilities, and 
        that provides, singly or in combination, for an individual with 
        a disability to enable the individual to maximize opportunities 
        for employment, including career advancement--
                    ``(A) medical, psychiatric, psychological, social, 
                and vocational services that are provided under one 
                management;
                    ``(B) testing, fitting, or training in the use of 
                prosthetic and orthotic devices;
                    ``(C) recreational therapy;
                    ``(D) physical and occupational therapy;
                    ``(E) speech, language, and hearing therapy;
                    ``(F) psychiatric, psychological, and social 
                services, including positive behavior management;
                    ``(G) assessment for determining eligibility and 
                vocational rehabilitation needs;
                    ``(H) rehabilitation technology;
                    ``(I) job development, placement, and retention 
                services;
                    ``(J) evaluation or control of specific 
                disabilities;
                    ``(K) orientation and mobility services for 
                individuals who are blind;
                    ``(L) extended employment;
                    ``(M) psychosocial rehabilitation services;
                    ``(N) supported employment services and extended 
                services;
                    ``(O) services to family members when necessary to 
                the vocational rehabilitation of the individual;
                    ``(P) personal assistance services; or
                    ``(Q) services similar to the services described in 
                one of subparagraphs (A) through (P).
            ``(6) Criminal act.--The term `criminal act' means any 
        crime, including an act, omission, or possession under the laws 
        of the United States or a State or unit of general local 
        government, which poses a substantial threat of personal 
        injury, notwithstanding that by reason of age, insanity, or 
        intoxication or otherwise the person engaging in the act, 
        omission, or possession was legally incapable of committing a 
        crime.
            ``(7) Designated state agency.--The term `designated State 
        agency' means an agency designated under section 101(a)(2)(A).
            ``(8) Designated state unit.--The term `designated State 
        unit' means--
                    ``(A) any State agency unit required under section 
                101(a)(2)(B)(ii); or
                    ``(B) in cases in which no such unit is so 
                required, the State agency described in section 
                101(a)(2)(B)(i).
            ``(9) Disability.--The term `disability' means--
                    ``(A) except as otherwise provided in subparagraph 
                (B), a physical or mental impairment that constitutes 
                or results in a substantial impediment to employment; 
                or
                    ``(B) for purposes of sections 2, 14, and 15, and 
                titles II, IV, V, and VII, a physical or mental 
                impairment that substantially limits one or more major 
                life activities.
            ``(10) Drug and illegal use of drugs.--
                    ``(A) Drug.--The term `drug' means a controlled 
                substance, as defined in schedules I through V of 
                section 202 of the Controlled Substances Act (21 U.S.C. 
                812).
                    ``(B) Illegal use of drugs.--The term `illegal use 
                of drugs' means the use of drugs, the possession or 
                distribution of which is unlawful under the Controlled 
                Substances Act. Such term does not include the use of a 
                drug taken under supervision by a licensed health care 
                professional, or other uses authorized by the 
                Controlled Substances Act or other provisions of 
                Federal law.
            ``(11) Employment outcome.--The term `employment outcome' 
        means, with respect to an individual--
                    ``(A) entering or retaining full-time or, if 
                appropriate, part-time competitive employment in the 
                integrated labor market;
                    ``(B) satisfying the vocational outcome of 
                supported employment; or
                    ``(C) satisfying any other vocational outcome the 
                Secretary may determine to be appropriate (including 
                satisfying the vocational outcome of self-employment or 
                business ownership),
        in a manner consistent with this Act.
            ``(12) Establishment of a community rehabilitation 
        program.--The term `establishment of a community rehabilitation 
        program' includes the acquisition, expansion, remodeling, or 
        alteration of existing buildings necessary to adapt them to 
        community rehabilitation program purposes or to increase their 
        effectiveness for such purposes (subject, however, to such 
        limitations as the Secretary may determine, in accordance with 
        regulations the Secretary shall prescribe, in order to prevent 
        impairment of the objectives of, or duplication of, other 
        Federal laws providing Federal assistance in the construction 
        of facilities for community rehabilitation programs), and may 
        include such additional equipment and staffing as the 
        Commissioner considers appropriate.
            ``(13) Extended services.--The term `extended services' 
        means ongoing support services and other appropriate services, 
        needed to support and maintain an individual with a most 
        significant disability in supported employment, that--
                    ``(A) are provided singly or in combination and are 
                organized and made available in such a way as to assist 
                an eligible individual in maintaining supported 
                employment;
                    ``(B) are based on a determination of the needs of 
                an eligible individual, as specified in an 
                individualized rehabilitation employment plan; and
                    ``(C) are provided by a State agency, a nonprofit 
                private organization, employer, or any other 
                appropriate resource, after an individual has made the 
                transition from support provided by the designated 
                State unit.
            ``(14) Federal share.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                term `Federal share' means 78.7 percent.
                    ``(B) Relationship to expenditures by a political 
                subdivision.--For the purpose of determining the non-
                Federal share with respect to a State, expenditures by 
                a political subdivision thereof or by a local agency 
                shall be regarded as expenditures by such State, 
                subject to such limitations and conditions as the 
                Secretary shall by regulation prescribe.
            ``(15) Governor.--The term `Governor' means--
                    ``(A) a chief executive officer of a State; or
                    ``(B) in the case of a State that, under State law, 
                vests authority for the administration of the 
                activities carried out under this Act in an entity 
                other than the Governor, such as 1 or more houses of 
                the State legislature or an independent board, the 
                chief officer of that entity.
            ``(16) Impartial hearing officer.--
                    ``(A) In general.--The term `impartial hearing 
                officer' means an individual--
                            ``(i) who is not an employee of a public 
                        agency (other than an administrative law judge, 
                        hearing examiner, or employee of an institution 
                        of higher education);
                            ``(ii) who is not a member of the State 
                        Rehabilitation Council described in section 
                        105;
                            ``(iii) who has not been involved 
                        previously in the vocational rehabilitation of 
                        the applicant or client;
                            ``(iv) who has knowledge of the delivery of 
                        vocational rehabilitation services, the State 
                        plan under section 101, and the Federal and 
                        State rules governing the provision of such 
                        services and training with respect to the 
                        performance of official duties; and
                            ``(v) who has no personal or financial 
                        interest that would be in conflict with the 
                        objectivity of the individual.
                    ``(B) Construction.--An individual shall not be 
                considered to be an employee of a public agency for 
                purposes of subparagraph (A)(i) solely because the 
                individual is paid by the agency to serve as a hearing 
                officer.
            ``(17) Independent living core services.--The term 
        `independent living core services' means--
                    ``(A) information and referral services;
                    ``(B) independent living skills training;
                    ``(C) peer counseling (including cross-disability 
                peer counseling); and
                    ``(D) individual and systems advocacy.
            ``(18) Independent living services.--The term `independent 
        living services' includes--
                    ``(A) independent living core services; and
                    ``(B)(i) counseling services, including 
                psychological, psychotherapeutic, and related services;
                    ``(ii) services related to securing housing or 
                shelter, including services related to community group 
                living, and supportive of the purposes of this Act and 
                of the titles of this Act, and adaptive housing 
                services (including appropriate accommodations to and 
                modifications of any space used to serve, or occupied 
                by, individuals with disabilities);
                    ``(iii) rehabilitation technology;
                    ``(iv) mobility training;
                    ``(v) services and training for individuals with 
                cognitive and sensory disabilities, including life 
                skills training, and interpreter and reader services;
                    ``(vi) personal assistance services, including 
                attendant care and the training of personnel providing 
                such services;
                    ``(vii) surveys, directories, and other activities 
                to identify appropriate housing, recreation 
                opportunities, and accessible transportation, and other 
                support services;
                    ``(viii) consumer information programs on 
                rehabilitation and independent living services 
                available under this Act, especially for minorities and 
                other individuals with disabilities who have 
                traditionally been unserved or underserved by programs 
                under this Act;
                    ``(ix) education and training necessary for living 
                in a community and participating in community 
                activities;
                    ``(x) supported living;
                    ``(xi) transportation, including referral and 
                assistance for such transportation and training in the 
                use of public transportation vehicles and systems;
                    ``(xii) physical rehabilitation;
                    ``(xiii) therapeutic treatment;
                    ``(xiv) provision of needed prostheses and other 
                appliances and devices;
                    ``(xv) individual and group social and recreational 
                services;
                    ``(xvi) training to develop skills specifically 
                designed for youths who are individuals with 
                disabilities to promote self-awareness and esteem, 
                develop advocacy and self-empowerment skills, and 
                explore career options;
                    ``(xvii) services for children;
                    ``(xviii) services under other Federal, State, or 
                local programs designed to provide resources, training, 
                counseling, or other assistance, of substantial benefit 
                in enhancing the independence, productivity, and 
                quality of life of individuals with disabilities;
                    ``(xix) appropriate preventive services to decrease 
                the need of individuals assisted under this Act for 
                similar services in the future;
                    ``(xx) community awareness programs to enhance the 
                understanding and integration into society of 
                individuals with disabilities; and
                    ``(xxi) such other services as may be necessary and 
                not inconsistent with the provisions of this Act.
            ``(19) Indian; american indian; indian american; indian 
        tribe.--
                    ``(A) In general.--The terms `Indian', `American 
                Indian', and `Indian American' mean an individual who 
                is a member of an Indian tribe.
                    ``(B) Indian tribe.--The term `Indian tribe' means 
                any Federal or State Indian tribe, band, rancheria, 
                pueblo, colony, or community, including any Alaskan 
                native village or regional village corporation (as 
                defined in or established pursuant to the Alaska Native 
                Claims Settlement Act).
            ``(20) Individual with a disability.--
                    ``(A) In general.--Except as otherwise provided in 
                subparagraph (B), the term `individual with a 
                disability' means any individual who--
                            ``(i) has a physical or mental impairment 
                        which for such individual constitutes or 
                        results in a substantial impediment to 
                        employment; and
                            ``(ii) can benefit in terms of an 
                        employment outcome from vocational 
                        rehabilitation services provided pursuant to 
                        title I, III, or VI.
                    ``(B) Certain programs; limitations on major life 
                activities.--Subject to subparagraphs (C), (D), (E), 
                and (F), the term `individual with a disability' means, 
                for purposes of sections 2, 14, and 15, and titles II, 
                IV, V, and VII of this Act, any person who--
                            ``(i) has a physical or mental impairment 
                        which substantially limits one or more of such 
                        person's major life activities;
                            ``(ii) has a record of such an impairment; 
                        or
                            ``(iii) is regarded as having such an 
                        impairment.
                    ``(C) Rights and advocacy provisions.--
                            ``(i) In general; exclusion of individuals 
                        engaging in drug use.--For purposes of title V, 
                        the term `individual with a disability' does 
                        not include an individual who is currently 
                        engaging in the illegal use of drugs, when a 
                        covered entity acts on the basis of such use.
                            ``(ii) Exception for individuals no longer 
                        engaging in drug use.--Nothing in clause (i) 
                        shall be construed to exclude as an individual 
                        with a disability an individual who--
                                    ``(I) has successfully completed a 
                                supervised drug rehabilitation program 
                                and is no longer engaging in the 
                                illegal use of drugs, or has otherwise 
                                been rehabilitated successfully and is 
                                no longer engaging in such use;
                                    ``(II) is participating in a 
                                supervised rehabilitation program and 
                                is no longer engaging in such use; or
                                    ``(III) is erroneously regarded as 
                                engaging in such use, but is not 
                                engaging in such use;
                        except that it shall not be a violation of this 
                        Act for a covered entity to adopt or administer 
                        reasonable policies or procedures, including 
                        but not limited to drug testing, designed to 
                        ensure that an individual described in 
                        subclause (I) or (II) is no longer engaging in 
                        the illegal use of drugs.
                            ``(iii) Exclusion for certain services.--
                        Notwithstanding clause (i), for purposes of 
                        programs and activities providing health 
                        services and services provided under titles I, 
                        II, and III, an individual shall not be 
                        excluded from the benefits of such programs or 
                        activities on the basis of his or her current 
                        illegal use of drugs if he or she is otherwise 
                        entitled to such services.
                            ``(iv) Disciplinary action.--For purposes 
                        of programs and activities providing 
                        educational services, local educational 
                        agencies may take disciplinary action 
                        pertaining to the use or possession of illegal 
                        drugs or alcohol against any student who is an 
                        individual with a disability and who currently 
                        is engaging in the illegal use of drugs or in 
                        the use of alcohol to the same extent that such 
                        disciplinary action is taken against students 
                        who are not individuals with disabilities. 
                        Furthermore, the due process procedures at 
                        section 104.36 of title 34, Code of Federal 
                        Regulations (or any corresponding similar 
                        regulation or ruling) shall not apply to such 
                        disciplinary actions.
                            ``(v) Employment; exclusion of 
                        alcoholics.--For purposes of sections 503 and 
                        504 as such sections relate to employment, the 
                        term `individual with a disability' does not 
                        include any individual who is an alcoholic 
                        whose current use of alcohol prevents such 
                        individual from performing the duties of the 
                        job in question or whose employment, by reason 
                        of such current alcohol abuse, would constitute 
                        a direct threat to property or the safety of 
                        others.
                    ``(D) Employment; exclusion of individuals with 
                certain diseases or infections.--For the purposes of 
                sections 503 and 504, as such sections relate to 
                employment, such term does not include an individual 
                who has a currently contagious disease or infection and 
                who, by reason of such disease or infection, would 
                constitute a direct threat to the health or safety of 
                other individuals or who, by reason of the currently 
                contagious disease or infection, is unable to perform 
                the duties of the job.
                    ``(E) Rights provisions; exclusion of individuals 
                on basis of homosexuality or bisexuality.--For the 
                purposes of sections 501, 503, and 504--
                            ``(i) for purposes of the application of 
                        subparagraph (B) to such sections, the term 
                        `impairment' does not include homosexuality or 
                        bisexuality; and
                            ``(ii) therefore the term `individual with 
                        a disability' does not include an individual on 
                        the basis of homosexuality or bisexuality.
                    ``(F) Rights provisions; exclusion of individuals 
                on basis of certain disorders.--For the purposes of 
                sections 501, 503, and 504, the term `individual with a 
                disability' does not include an individual on the basis 
                of--
                            ``(i) transvestism, transsexualism, 
                        pedophilia, exhibitionism, voyeurism, gender 
                        identity disorders not resulting from physical 
                        impairments, or other sexual behavior 
                        disorders;
                            ``(ii) compulsive gambling, kleptomania, or 
                        pyromania; or
                            ``(iii) psychoactive substance use 
                        disorders resulting from current illegal use of 
                        drugs.
                    ``(G) Individuals with disabilities.--The term 
                `individuals with disabilities' means more than one 
                individual with a disability.
            ``(21) Individual with a significant disability.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B) or (C), the term `individual with a 
                significant disability' means an individual with a 
                disability--
                            ``(i) who has a severe physical or mental 
                        impairment which seriously limits one or more 
                        functional capacities (such as mobility, 
                        communication, self-care, self-direction, 
                        interpersonal skills, work tolerance, or work 
                        skills) in terms of an employment outcome;
                            ``(ii) whose vocational rehabilitation can 
                        be expected to require multiple vocational 
                        rehabilitation services over an extended period 
                        of time; and
                            ``(iii) who has one or more physical or 
                        mental disabilities resulting from amputation, 
                        arthritis, autism, blindness, burn injury, 
                        cancer, cerebral palsy, cystic fibrosis, 
                        deafness, head injury, heart disease, 
                        hemiplegia, hemophilia, respiratory or 
                        pulmonary dysfunction, mental retardation, 
                        mental illness, multiple sclerosis, muscular 
                        dystrophy, musculo-skeletal disorders, 
                        neurological disorders (including stroke and 
                        epilepsy), paraplegia, quadriplegia, and other 
                        spinal cord conditions, sickle cell anemia, 
                        specific learning disability, end-stage renal 
                        disease, or another disability or combination 
                        of disabilities determined on the basis of an 
                        assessment for determining eligibility and 
                        vocational rehabilitation needs described in 
                        subparagraphs (A) and (B) of paragraph (2) to 
                        cause comparable substantial functional 
                        limitation.
                    ``(B) Independent living services and centers for 
                independent living.--For purposes of title VII, the 
                term `individual with a significant disability' means 
                an individual with a severe physical or mental 
                impairment whose ability to function independently in 
                the family or community or whose ability to obtain, 
                maintain, or advance in employment is substantially 
                limited and for whom the delivery of independent living 
                services will improve the ability to function, continue 
                functioning, or move towards functioning independently 
                in the family or community or to continue in 
                employment, respectively.
                    ``(C) Research and training.--For purposes of title 
                II, the term `individual with a significant disability' 
                includes an individual described in subparagraph (A) or 
                (B).
                    ``(D) Individuals with significant disabilities.--
                The term `individuals with significant disabilities' 
                means more than one individual with a significant 
                disability.
                    ``(E) Individual with a most significant 
                disability.--
                            ``(i) In general.--The term `individual 
                        with a most significant disability', used with 
                        respect to an individual in a State, means an 
                        individual with a significant disability who 
                        meets criteria established by the State under 
                        section 101(a)(5)(C).
                            ``(ii) Individuals with the most 
                        significant disabilities.--The term 
                        `individuals with the most significant 
                        disabilities' means more than one individual 
                        with a most significant disability.
            ``(22) Individual's representative; applicant's 
        representative.--
                    ``(A) Individual's representative.--The term 
                `individual's representative' used with respect to an 
                eligible individual or other individual with a 
                disability, means--
                            ``(i) any representative chosen by the 
                        eligible individual or other individual with a 
                        disability, including a parent, guardian, other 
                        family member, or advocate; or
                            ``(ii) if a representative or legal 
                        guardian has been appointed by a court to 
                        represent the eligible individual or other 
                        individual with a disability, the court-
                        appointed representative or legal guardian.
                    ``(B) Applicant's representative.--The term 
                `applicant's representative' means--
                            ``(i) any representative described in 
                        subparagraph (A)(i) chosen by the applicant; or
                            ``(ii) if a representative or legal 
                        guardian has been appointed by a court to 
                        represent the applicant, the court-appointed 
                        representative or legal guardian.
            ``(23) 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)).
            ``(24) Local agency.--The term `local agency' means an 
        agency of a unit of general local government or of an Indian 
        tribe (or combination of such units or tribes) which has an 
        agreement with the designated State agency to conduct a 
        vocational rehabilitation program under the supervision of such 
        State agency in accordance with the State plan approved under 
        section 101. Nothing in the preceding sentence of this 
        paragraph or in section 101 shall be construed to prevent the 
        local agency from arranging to utilize another local public or 
        nonprofit agency to provide vocational rehabilitation services 
        if such an arrangement is made part of the agreement specified 
        in this paragraph.
            ``(25) Local workforce investment partnership.--The term 
        `local workforce investment partnership' means a local 
        workforce investment partnership established under section 308 
        of the Workforce Investment Partnership Act of 1998.
            ``(26) Nonprofit.--The term `nonprofit', when used with 
        respect to a community rehabilitation program, means a 
        community rehabilitation program carried out by a corporation 
        or association, no part of the net earnings of which inures, or 
        may lawfully inure, to the benefit of any private shareholder 
        or individual and the income of which is exempt from taxation 
        under section 501(c)(3) of the Internal Revenue Code of 1986.
            ``(27) Ongoing support services.--The term `ongoing support 
        services' means services--
                    ``(A) provided to individuals with the most 
                significant disabilities;
                    ``(B) provided, at a minimum, twice monthly--
                            ``(i) to make an assessment, regarding the 
                        employment situation, at the worksite of each 
                        such individual in supported employment, or, 
                        under special circumstances, especially at the 
                        request of the client, off site; and
                            ``(ii) based on the assessment, to provide 
                        for the coordination or provision of specific 
                        intensive services, at or away from the 
                        worksite, that are needed to maintain 
                        employment stability; and
                    ``(C) consisting of--
                            ``(i) a particularized assessment 
                        supplementary to the comprehensive assessment 
                        described in paragraph (2)(B);
                            ``(ii) the provision of skilled job 
                        trainers who accompany the individual for 
                        intensive job skill training at the work site;
                            ``(iii) job development, job retention, and 
                        placement services;
                            ``(iv) social skills training;
                            ``(v) regular observation or supervision of 
                        the individual;
                            ``(vi) followup services such as regular 
                        contact with the employers, the individuals, 
                        the individuals' representatives, and other 
                        appropriate individuals, in order to reinforce 
                        and stabilize the job placement;
                            ``(vii) facilitation of natural supports at 
                        the worksite;
                            ``(viii) any other service identified in 
                        section 103; or
                            ``(ix) a service similar to another service 
                        described in this subparagraph.
            ``(28) Personal assistance services.--The term `personal 
        assistance services' means a range of services, provided by one 
        or more persons, designed to assist an individual with a 
        disability to perform daily living activities on or off the job 
        that the individual would typically perform if the individual 
        did not have a disability. Such services shall be designed to 
        increase the individual's control in life and ability to 
        perform everyday activities on or off the job.
            ``(29) Public or nonprofit.--The term `public or 
        nonprofit', used with respect to an agency or organization, 
        includes an Indian tribe.
            ``(30) Rehabilitation technology.--The term `rehabilitation 
        technology' means the systematic application of technologies, 
        engineering methodologies, or scientific principles to meet the 
        needs of and address the barriers confronted by individuals 
        with disabilities in areas which include education, 
        rehabilitation, employment, transportation, independent living, 
        and recreation. The term includes rehabilitation engineering, 
        assistive technology devices, and assistive technology 
        services.
            ``(31) Requires vocational rehabilitation services.--The 
        term `requires vocational rehabilitation services', used with 
        respect to an individual with a disability as defined in 
        paragraph (20)(A), means that the individual is unable to 
        prepare for, secure, retain, or regain employment consistent 
        with the strengths, resources, priorities, concerns, abilities, 
        capabilities, interests, and informed choice of the individual 
        without vocational rehabilitation services, because the 
        individual--
                    ``(A) has never been employed;
                    ``(B) has lost employment;
                    ``(C) is underemployed;
                    ``(D) is at immediate risk of losing employment; or
                    ``(E) receives benefits on the basis of disability 
                or blindness pursuant to title II or XVI of the Social 
                Security Act (42 U.S.C. 401 et seq. or 1381 et seq.), 
                in a case in which the individual intends to achieve an 
                employment outcome consistent with the unique 
                strengths, resources, priorities, concerns, abilities, 
                capabilities, interests, and informed choice of the 
                individual.
            ``(32) Secretary.--The term `Secretary', except when the 
        context otherwise requires, means the Secretary of Education.
            ``(33) State.--The term `State' includes, in addition to 
        each of the several States of the United States, the District 
        of Columbia, the Commonwealth of Puerto Rico, the United States 
        Virgin Islands, Guam, American Samoa, and the Commonwealth of 
        the Northern Mariana Islands.
            ``(34) Statewide workforce investment partnership.--The 
        term `statewide workforce investment partnership' means a 
        partnership established under section 303 of the Workforce 
        Investment Partnership Act of 1998.
            ``(35) Statewide workforce investment system.--The term 
        `statewide workforce investment system' means a system 
        described in section 301 of the Workforce Investment 
        Partnership Act of 1998.
            ``(36) Supported employment.--
                    ``(A) In general.--The term `supported employment' 
                means competitive work in integrated work settings, or 
                employment in integrated work settings in which 
                individuals are working toward competitive work, 
                consistent with the strengths, resources, priorities, 
                concerns, abilities, capabilities, interests, and 
                informed choice of the individuals, for individuals 
                with the most significant disabilities--
                            ``(i)(I) for whom competitive employment 
                        has not traditionally occurred; or
                            ``(II) for whom competitive employment has 
                        been interrupted or intermittent as a result of 
                        a significant disability; and
                            ``(ii) who, because of the nature and 
                        severity of their disability, need intensive 
                        supported employment services for the period, 
                        and any extension, described in paragraph 
                        (37)(C) and extended services after the 
                        transition described in paragraph (13)(C) in 
                        order to perform such work.
                    ``(B) Certain transitional employment.--Such term 
                includes transitional employment for persons who are 
                individuals with the most significant disabilities due 
                to mental illness.
            ``(37) Supported employment services.--The term `supported 
        employment services' means ongoing support services and other 
        appropriate services needed to support and maintain an 
        individual with a most significant disability in supported 
        employment, that--
                    ``(A) are provided singly or in combination and are 
                organized and made available in such a way as to assist 
                an eligible individual to achieve competitive 
                employment;
                    ``(B) are based on a determination of the needs of 
                an eligible individual, as specified in an 
                individualized rehabilitation employment plan; and
                    ``(C) are provided by the designated State unit for 
                a period of time not to extend beyond 18 months, unless 
                under special circumstances the eligible individual and 
                the rehabilitation counselor or coordinator jointly 
                agree to extend the time in order to achieve the 
                rehabilitation objectives identified in the 
                individualized rehabilitation employment plan.
            ``(38) Transition services.--The term `transition services' 
        means a coordinated set of activities for a student, designed 
        within an outcome-oriented process, that promotes movement from 
        school to post school activities, including postsecondary 
        education, vocational training, integrated employment 
        (including supported employment), continuing and adult 
        education, adult services, independent living, or community 
        participation. The coordinated set of activities shall be based 
        upon the individual student's needs, taking into account the 
        student's preferences and interests, and shall include 
        instruction, community experiences, the development of 
        employment and other post school adult living objectives, and, 
        when appropriate, acquisition of daily living skills and 
        functional vocational evaluation.
            ``(39) Underemployed.--The term `underemployed', used with 
        respect to an individual with a disability, as defined in 
        paragraph (20)(A), means a situation in which the individual is 
        employed in a job that is not consistent with the strengths, 
        resources, priorities, concerns, abilities, capabilities, 
        interests, and informed choice of the individual.
            ``(40) Vocational rehabilitation services.--The term 
        `vocational rehabilitation services' means those services 
        identified in section 103 which are provided to individuals 
        with disabilities under this Act.
            ``(41) Workforce investment activities.--The term 
        `workforce investment activities' has the meaning given the 
        term in section 2 of the Workforce Investment Partnership Act 
        of 1998 carried out under that Act.

                         ``allotment percentage

    ``Sec. 8. (a)(1) For purposes of section 110, the allotment 
percentage for any State shall be 100 per centum less that percentage 
which bears the same ratio to 50 per centum as the per capita income of 
such State bears to the per capita income of the United States, except 
that--
            ``(A) the allotment percentage shall in no case be more 
        than 75 per centum or less than 33\1/3\ per centum; and
            ``(B) the allotment percentage for the District of 
        Columbia, Puerto Rico, Guam, the Virgin Islands, American 
        Samoa, and the Commonwealth of the Northern Mariana Islands 
        shall be 75 per centum.
    ``(2) The allotment percentages shall be promulgated by the 
Secretary between October 1 and December 31 of each even-numbered year, 
on the basis of the average of the per capita incomes of the States and 
of the United States for the three most recent consecutive years for 
which satisfactory data are available from the Department of Commerce. 
Such promulgation shall be conclusive for each of the two fiscal years 
in the period beginning on the October 1 next succeeding such 
promulgation.
    ``(3) The term `United States' means (but only for purposes of this 
subsection) the fifty States and the District of Columbia.
    ``(b) The population of the several States and of the United States 
shall be determined on the basis of the most recent data available, to 
be furnished by the Department of Commerce by October 1 of the year 
preceding the fiscal year for which funds are appropriated pursuant to 
statutory authorizations.

                            ``nonduplication

    ``Sec. 10. In determining the amount of any State's Federal share 
of expenditures for planning, administration, and services incurred by 
it under a State plan approved in accordance with section 101, there 
shall be disregarded (1) any portion of such expenditures which are 
financed by Federal funds provided under any other provision of law, 
and (2) the amount of any non-Federal funds required to be expended as 
a condition of receipt of such Federal funds. No payment may be made 
from funds provided under one provision of this Act relating to any 
cost with respect to which any payment is made under any other 
provision of this Act, except that this section shall not be construed 
to limit or reduce fees for services rendered by community 
rehabilitation programs.

                      ``application of other laws

    ``Sec. 11. The provisions of the Act of December 5, 1974 (Public 
Law 93-510) and of title V of the Act of October 15, 1977 (Public Law 
95-134) shall not apply to the administration of the provisions of this 
Act or to the administration of any program or activity under this Act.

                      ``administration of the act

    ``Sec. 12. (a) In carrying out the purposes of this Act, the 
Commissioner may--
            ``(1) provide consultative services and technical 
        assistance to public or nonprofit private agencies and 
        organizations, including assistance to enable such agencies and 
        organizations to facilitate meaningful and effective 
        participation by individuals with disabilities in workforce 
        investment activities;
            ``(2) provide short-term training and technical 
        instruction, including training for the personnel of community 
        rehabilitation programs, centers for independent living, and 
        other providers of services (including job coaches);
            ``(3) conduct special projects and demonstrations;
            ``(4) collect, prepare, publish, and disseminate special 
        educational or informational materials, including reports of 
        the projects for which funds are provided under this Act; and
            ``(5) provide monitoring and conduct evaluations.
    ``(b)(1) In carrying out the duties under this Act, the 
Commissioner may utilize the services and facilities of any agency of 
the Federal Government and of any other public or nonprofit agency or 
organization, in accordance with agreements between the Commissioner 
and the head thereof, and may pay therefor, in advance or by way of 
reimbursement, as may be provided in the agreement.
    ``(2) In carrying out the provisions of this Act, the Commissioner 
shall appoint such task forces as may be necessary to collect and 
disseminate information in order to improve the ability of the 
Commissioner to carry out the provisions of this Act.
    ``(c) The Commissioner may promulgate such regulations as are 
considered appropriate to carry out the Commissioner's duties under 
this Act.
    ``(d) The Secretary shall promulgate regulations regarding the 
requirements for the implementation of an order of selection for 
vocational rehabilitation services under section 101(a)(5)(A) if such 
services cannot be provided to all eligible individuals with 
disabilities who apply for such services.
    ``(e) Not later than 180 days after the date of enactment of the 
Rehabilitation Act Amendments of 1998, the Secretary shall receive 
public comment and promulgate regulations to implement the amendments 
made by the Rehabilitation Act Amendments of 1998.
    ``(f) In promulgating regulations to carry out this Act, the 
Secretary shall promulgate only regulations that are necessary to 
administer and ensure compliance with the specific requirements of this 
Act.
    ``(g) There are authorized to be appropriated to carry out this 
section such sums as may be necessary.

                               ``reports

    ``Sec. 13. (a) Not later than one hundred and eighty days after the 
close of each fiscal year, the Commissioner shall prepare and submit to 
the President and to the Congress a full and complete report on the 
activities carried out under this Act, including the activities and 
staffing of the information clearinghouse under section 15.
    ``(b) The Commissioner shall collect information to determine 
whether the purposes of this Act are being met and to assess the 
performance of programs carried out under this Act. The Commissioner 
shall take whatever action is necessary to assure that the identity of 
each individual for which information is supplied under this section is 
kept confidential, except as otherwise required by law (including 
regulation).
    ``(c) In preparing the report, the Commissioner shall annually 
collect and include in the report information based on the information 
submitted by States in accordance with section 101(a)(10). The 
Commissioner shall, to the maximum extent appropriate, include in the 
report all information that is required to be submitted in the reports 
described in section 321(d) of the Workforce Investment Partnership Act 
of 1998 and that pertains to the employment of individuals with 
disabilities.

                              ``evaluation

    ``Sec. 14. (a) For the purpose of improving program management and 
effectiveness, the Secretary, in consultation with the Commissioner, 
shall evaluate all the programs authorized by this Act, their general 
effectiveness in relation to their cost, their impact on related 
programs, and their structure and mechanisms for delivery of services, 
using appropriate methodology and evaluative research designs. The 
Secretary shall establish and use standards for the evaluations 
required by this subsection. Such an evaluation shall be conducted by a 
person not immediately involved in the administration of the program 
evaluated.
    ``(b) In carrying out evaluations under this section, the Secretary 
shall obtain the opinions of program and project participants about the 
strengths and weaknesses of the programs and projects.
    ``(c) The Secretary shall take the necessary action to assure that 
all studies, evaluations, proposals, and data produced or developed 
with Federal funds under this Act shall become the property of the 
United States.
    ``(d) Such information as the Secretary may determine to be 
necessary for purposes of the evaluations conducted under this section 
shall be made available upon request of the Secretary, by the 
departments and agencies of the executive branch.
    ``(e)(1) To assess the linkages between vocational rehabilitation 
services and economic and noneconomic outcomes, the Secretary shall 
continue to conduct a longitudinal study of a national sample of 
applicants for the services.
    ``(2) The study shall address factors related to attrition and 
completion of the program through which the services are provided and 
factors within and outside the program affecting results. Appropriate 
comparisons shall be used to contrast the experiences of similar 
persons who do not obtain the services.
    ``(3) The study shall be planned to cover the period beginning on 
the application of individuals with disabilities for the services, 
through the eligibility determination and provision of services for the 
individuals, and a further period of not less than 2 years after the 
termination of services.
    ``(f)(1) The Commissioner shall identify and disseminate 
information on exemplary practices concerning vocational 
rehabilitation.
    ``(2) To facilitate compliance with paragraph (1), the Commissioner 
shall conduct studies and analyses that identify exemplary practices 
concerning vocational rehabilitation, including studies in areas 
relating to providing informed choice in the rehabilitation process, 
promoting consumer satisfaction, promoting job placement and retention, 
providing supported employment, providing services to particular 
disability populations, financing personal assistance services, 
providing assistive technology devices and assistive technology 
services, entering into cooperative agreements, establishing standards 
and certification for community rehabilitation programs, converting 
from nonintegrated to integrated employment, and providing caseload 
management.
    ``(g) There are authorized to be appropriated to carry out this 
section such sums as may be necessary.

                      ``information clearinghouse

    ``Sec. 15. (a) The Secretary shall establish a central 
clearinghouse for information and resource availability for individuals 
with disabilities which shall provide information and data regarding--
            ``(1) the location, provision, and availability of services 
        and programs for individuals with disabilities, including such 
        information and data provided by statewide partnerships 
        established under section 303 of the Workforce Investment 
        Partnership Act of 1998 regarding such services and programs 
        authorized under such Act;
            ``(2) research and recent medical and scientific 
        developments bearing on disabilities (and their prevention, 
        amelioration, causes, and cures); and
            ``(3) the current numbers of individuals with disabilities 
        and their needs.
The clearinghouse shall also provide any other relevant information and 
data which the Secretary considers appropriate.
    ``(b) The Commissioner may assist the Secretary to develop within 
the Department of Education a coordinated system of information and 
data retrieval, which will have the capacity and responsibility to 
provide information regarding the information and data referred to in 
subsection (a) of this section to the Congress, public and private 
agencies and organizations, individuals with disabilities and their 
families, professionals in fields serving such individuals, and the 
general public.
    ``(c) The office established to carry out the provisions of this 
section shall be known as the `Office of Information and Resources for 
Individuals with Disabilities'.
    ``(d) There are authorized to be appropriated to carry out this 
section such sums as may be necessary.

                          ``transfer of funds

    ``Sec. 16. (a) Except as provided in subsection (b) of this 
section, no funds appropriated under this Act for any program or 
activity may be used for any purpose other than that for which the 
funds were specifically authorized.
    ``(b) No more than 1 percent of funds appropriated for 
discretionary grants, contracts, or cooperative agreements authorized 
by this Act may be used for the purpose of providing non-Federal panels 
of experts to review applications for such grants, contracts, or 
cooperative agreements.

                         ``state administration

    ``Sec. 17. The application of any State rule or policy relating to 
the administration or operation of programs funded by this Act 
(including any rule or policy based on State interpretation of any 
Federal law, regulation, or guideline) shall be identified as a State 
imposed requirement.

                        ``review of applications

    ``Sec. 18. Applications for grants in excess of $100,000 in the 
aggregate authorized to be funded under this Act, other than grants 
primarily for the purpose of conducting dissemination or conferences, 
shall be reviewed by panels of experts which shall include a majority 
of non-Federal members. Non-Federal members may be provided travel, per 
diem, and consultant fees not to exceed the daily equivalent of the 
rate of pay for level 4 of the Senior Executive Service Schedule under 
section 5382 of title 5, United States Code.

``SEC. 19. CARRYOVER.

    ``(a) In General.--Except as provided in subsection (b), and 
notwithstanding any other provision of law--
            ``(1) any funds appropriated for a fiscal year to carry out 
        any grant program under part B of title I, section 509 (except 
        as provided in section 509(b)), part C of title VI, part B or C 
        of chapter 1 of title VII, or chapter 2 of title VII (except as 
        provided in section 752(b)), including any funds reallotted 
        under any such grant program, that are not obligated and 
        expended by recipients prior to the beginning of the succeeding 
        fiscal year; or
            ``(2) any amounts of program income, including 
        reimbursement payments under the Social Security Act (42 U.S.C. 
        301 et seq.), received by recipients under any grant program 
        specified in paragraph (1) that are not obligated and expended 
        by recipients prior to the beginning of the fiscal year 
        succeeding the fiscal year in which such amounts were received,
shall remain available for obligation and expenditure by such 
recipients during such succeeding fiscal year.
    ``(b) Non-Federal Share.--Such funds shall remain available for 
obligation and expenditure by a recipient as provided in subsection (a) 
only to the extent that the recipient complied with any Federal share 
requirements applicable to the program for the fiscal year for which 
the funds were appropriated.

``SEC. 20. CLIENT ASSISTANCE INFORMATION.

    ``All programs, including community rehabilitation programs, and 
projects, that provide services to individuals with disabilities under 
this Act shall advise such individuals who are applicants for or 
recipients of the services, or the applicants' representatives or 
individuals' representatives, of the availability and purposes of the 
client assistance program under section 112, including information on 
means of seeking assistance under such program.

``SEC. 21. TRADITIONALLY UNDERSERVED POPULATIONS.

    ``(a) Findings.--With respect to the programs authorized in titles 
II through VII, the Congress finds as follows:
            ``(1) Racial profile.--The racial profile of America is 
        rapidly changing. While the rate of increase for white 
        Americans is 3.2 percent, the rate of increase for racial and 
        ethnic minorities is much higher: 38.6 percent for Latinos, 
        14.6 percent for African-Americans, and 40.1 percent for Asian-
        Americans and other ethnic groups. By the year 2000, the Nation 
        will have 260,000,000 people, one of every three of whom will 
        be either African-American, Latino, or Asian-American.
            ``(2) Rate of disability.--Ethnic and racial minorities 
        tend to have disabling conditions at a disproportionately high 
        rate. The rate of work-related disability for American Indians 
        is about one and one-half times that of the general population. 
        African-Americans are also one and one-half times more likely 
        to be disabled than whites and twice as likely to be 
        significantly disabled.
            ``(3) Inequitable treatment.--Patterns of inequitable 
        treatment of minorities have been documented in all major 
        junctures of the vocational rehabilitation process. As compared 
        to white Americans, a larger percentage of African-American 
        applicants to the vocational rehabilitation system is denied 
        acceptance. Of applicants accepted for service, a larger 
        percentage of African-American cases is closed without being 
        rehabilitated. Minorities are provided less training than their 
        white counterparts. Consistently, less money is spent on 
        minorities than on their white counterparts.
            ``(4) Recruitment.--Recruitment efforts within vocational 
        rehabilitation at the level of preservice training, continuing 
        education, and in-service training must focus on bringing 
        larger numbers of minorities into the profession in order to 
        provide appropriate practitioner knowledge, role models, and 
        sufficient manpower to address the clearly changing demography 
        of vocational rehabilitation.
    ``(b) Outreach to Minorities.--
            ``(1) In general.--For each fiscal year, the Commissioner 
        and the Director of the National Institute on Disability and 
        Rehabilitation Research (referred to in this subsection as the 
        `Director') shall reserve 1 percent of the funds appropriated 
        for the fiscal year for programs authorized under titles II, 
        III, VI, and VII to carry out this subsection. The Commissioner 
        and the Director shall use the reserved funds to carry out 1 or 
        more of the activities described in paragraph (2) through a 
        grant, contract, or cooperative agreement.
            ``(2) Activities.--The activities carried out by the 
        Commissioner and the Director shall include 1 or more of the 
        following:
                    ``(A) Making awards to minority entities and Indian 
                tribes to carry out activities under the programs 
                authorized under titles II, III, VI, and VII.
                    ``(B) Making awards to minority entities and Indian 
                tribes to conduct research, training, technical 
                assistance, or a related activity, to improve services 
                provided under this Act, especially services provided 
                to individuals from minority backgrounds.
                    ``(C) Making awards to entities described in 
                paragraph (3) to provide outreach and technical 
                assistance to minority entities and Indian tribes to 
                promote their participation in activities funded under 
                this Act, including assistance to enhance their 
                capacity to carry out such activities.
            ``(3) Eligibility.--To be eligible to receive an award 
        under paragraph (2)(C), an entity shall be a State or a public 
        or private nonprofit agency or organization, such as an 
        institution of higher education or an Indian tribe.
            ``(4) Report.--In each fiscal year, the Commissioner and 
        the Director shall prepare and submit to Congress a report that 
        describes the activities funded under this subsection for the 
        preceding fiscal year.
            ``(5) Definitions.--In this subsection:
                    ``(A) Historically black college or university.--
                The term `historically Black college or university' 
                means a part B institution, as defined in section 
                322(2) of the Higher Education Act of 1965 (20 U.S.C. 
                1061(2)).
                    ``(B) Minority entity.--The term `minority entity' 
                means an entity that is a historically Black college or 
                university, a Hispanic-serving institution of higher 
                education, an American Indian tribal college or 
                university, or another institution of higher education 
                whose minority student enrollment is at least 50 
                percent.
    ``(c) Demonstration.--In awarding grants, or entering into 
contracts or cooperative agreements under titles I, II, III, VI, and 
VII, and section 509, the Commissioner and the Director, in appropriate 
cases, shall require applicants to demonstrate how the applicants will 
address, in whole or in part, the needs of individuals with 
disabilities from minority backgrounds.''.

SEC. 604. VOCATIONAL REHABILITATION SERVICES.

    Title I of the Rehabilitation Act of 1973 (29 U.S.C. 720 et seq.) 
is amended to read as follows:

             ``TITLE I--VOCATIONAL REHABILITATION SERVICES

                      ``PART A--GENERAL PROVISIONS

``SEC. 100. DECLARATION OF POLICY; AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Findings; Purpose; Policy.--
            ``(1) Findings.--Congress finds that--
                    ``(A) work--
                            ``(i) is a valued activity, both for 
                        individuals and society; and
                            ``(ii) fulfills the need of an individual 
                        to be productive, promotes independence, 
                        enhances self-esteem, and allows for 
                        participation in the mainstream of life in the 
                        United States;
                    ``(B) as a group, individuals with disabilities 
                experience staggering levels of unemployment and 
                poverty;
                    ``(C) individuals with disabilities, including 
                individuals with the most significant disabilities, 
                have demonstrated their ability to achieve gainful 
                employment in integrated settings if appropriate 
                services and supports are provided;
                    ``(D) reasons for significant numbers of 
                individuals with disabilities not working, or working 
                at levels not commensurate with their abilities and 
                capabilities, include--
                            ``(i) discrimination;
                            ``(ii) lack of accessible and available 
                        transportation;
                            ``(iii) fear of losing health coverage 
                        under the medicare and medicaid programs 
                        carried out under titles XVIII and XIX of the 
                        Social Security Act (42 U.S.C. 1395 et seq. and 
                        1396 et seq.) or fear of losing private health 
                        insurance; and
                            ``(iv) lack of education, training, and 
                        supports to meet job qualification standards 
                        necessary to secure, retain, regain, or advance 
                        in employment;
                    ``(E) enforcement of title V and of the Americans 
                with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) 
                holds the promise of ending discrimination for 
                individuals with disabilities;
                    ``(F) the provision of workforce investment 
                activities and vocational rehabilitation services can 
                enable individuals with disabilities, including 
                individuals with the most significant disabilities, to 
                pursue meaningful careers by securing gainful 
                employment commensurate with their abilities and 
                capabilities; and
                    ``(G) linkages between the vocational 
                rehabilitation programs established under this title 
                and other components of the statewide workforce 
                investment system are critical to ensure effective and 
                meaningful participation by individuals with 
                disabilities in workforce investment activities.
            ``(2) Purpose.--The purpose of this title is to assist 
        States in operating statewide comprehensive, coordinated, 
        effective, efficient, and accountable programs of vocational 
        rehabilitation, each of which is--
                    ``(A) an integral part of a statewide workforce 
                investment system; and
                    ``(B) designed to assess, plan, develop, and 
                provide vocational rehabilitation services for 
                individuals with disabilities, consistent with their 
                strengths, resources, priorities, concerns, abilities, 
                capabilities, interests, and informed choice, so that 
                such individuals may prepare for and engage in gainful 
                employment.
            ``(3) Policy.--It is the policy of the United States that 
        such a program shall be carried out in a manner consistent with 
        the following principles:
                    ``(A) Individuals with disabilities, including 
                individuals with the most significant disabilities, are 
                generally presumed to be capable of engaging in gainful 
                employment and the provision of individualized 
                vocational rehabilitation services can improve their 
                ability to become gainfully employed.
                    ``(B) Individuals with disabilities must be 
                provided the opportunities to obtain gainful employment 
                in integrated settings.
                    ``(C) Individuals who are applicants for such 
                programs or eligible to participate in such programs 
                must be active and full partners, in collaboration with 
                qualified vocational rehabilitation professionals, in 
                the vocational rehabilitation process, making 
                meaningful and informed choices--
                            ``(i) during assessments for determining 
                        eligibility and vocational rehabilitation 
                        needs; and
                            ``(ii) in the selection of employment 
                        outcomes for the individuals, services needed 
                        to achieve the outcomes, entities providing 
                        such services, and the methods used to secure 
                        such services.
                    ``(D) Families and other natural supports can play 
                important roles in the success of a vocational 
                rehabilitation program, if the individual with a 
                disability involved requests, desires, or needs such 
                supports.
                    ``(E) Vocational rehabilitation counselors that are 
                trained and prepared in accordance with State policies 
                and procedures as described in section 
                101(a)(7)(A)(iii) (referred to individually in this 
                title as a `qualified vocational rehabilitation 
                counselor'), other qualified rehabilitation personnel, 
                and other qualified personnel facilitate the 
                accomplishment of the employment outcomes and 
                objectives of an individual.
                    ``(F) Individuals with disabilities and the 
                individuals' representatives are full partners in a 
                vocational rehabilitation program and must be involved 
                on a regular basis and in a meaningful manner with 
                respect to policy development and implementation.
                    ``(G) Accountability measures must facilitate the 
                accomplishment of the goals and objectives of the 
                program, including providing vocational rehabilitation 
                services to, among others, individuals with the most 
                significant disabilities.
    ``(b) Authorization of Appropriations.--
            ``(1) In general.--For the purpose of making grants to 
        States under part B to assist States in meeting the costs of 
        vocational rehabilitation services provided in accordance with 
        State plans under section 101, there are authorized to be 
        appropriated such sums as may be necessary for fiscal years 
        1998 through 2004, except that the amount to be appropriated 
        for a fiscal year shall not be less than the amount of the 
        appropriation under this paragraph for the immediately 
        preceding fiscal year, increased by the percentage change in 
        the Consumer Price Index determined under subsection (c) for 
        the immediately preceding fiscal year.
            ``(2) Reference.--The reference in paragraph (1) to grants 
        to States under part B shall not be considered to refer to 
        grants under section 112.
    ``(c) Consumer Price Index.--
            ``(1) Percentage change.--No later than November 15 of each 
        fiscal year (beginning with fiscal year 1979), the Secretary of 
        Labor shall publish in the Federal Register the percentage 
        change in the Consumer Price Index published for October of the 
        preceding fiscal year and October of the fiscal year in which 
        such publication is made.
            ``(2) Application.--
                    ``(A) Increase.--If in any fiscal year the 
                percentage change published under paragraph (1) 
                indicates an increase in the Consumer Price Index, then 
                the amount to be appropriated under subsection (b)(1) 
                for the subsequent fiscal year shall be at least the 
                amount appropriated under subsection (b)(1) for the 
                fiscal year in which the publication is made under 
                paragraph (1) increased by such percentage change.
                    ``(B) No increase or decrease.--If in any fiscal 
                year the percentage change published under paragraph 
                (1) does not indicate an increase in the Consumer Price 
                Index, then the amount to be appropriated under 
                subsection (b)(1) for the subsequent fiscal year shall 
                be at least the amount appropriated under subsection 
                (b)(1) for the fiscal year in which the publication is 
                made under paragraph (1).
            ``(3) Definition.--For purposes of this section, the term 
        `Consumer Price Index' means the Consumer Price Index for All 
        Urban Consumers, published monthly by the Bureau of Labor 
        Statistics.
    ``(d) Extension.--
            ``(1) In general.--
                    ``(A) Authorization or duration of program.--Unless 
                the Congress in the regular session which ends prior to 
                the beginning of the terminal fiscal year--
                            ``(i) of the authorization of 
                        appropriations for the program authorized by 
                        the State grant program under part B of this 
                        title; or
                            ``(ii) of the duration of the program 
                        authorized by the State grant program under 
                        part B of this title;
                has passed legislation which would have the effect of 
                extending the authorization or duration (as the case 
                may be) of such program, such authorization or duration 
                is automatically extended for 1 additional year for the 
                program authorized by this title.
                    ``(B) Calculation.--The amount authorized to be 
                appropriated for the additional fiscal year described 
                in subparagraph (A) shall be an amount equal to the 
                amount appropriated for such program for fiscal year 
                2004, increased by the percentage change in the 
                Consumer Price Index determined under subsection (c) 
                for the immediately preceding fiscal year, if the 
                percentage change indicates an increase.
            ``(2) Construction.--
                    ``(A) Passage of legislation.--For the purposes of 
                paragraph (1)(A), Congress shall not be deemed to have 
                passed legislation unless such legislation becomes law.
                    ``(B) Acts or determinations of commissioner.--In 
                any case where the Commissioner is required under an 
                applicable statute to carry out certain acts or make 
                certain determinations which are necessary for the 
                continuation of the program authorized by this title, 
                if such acts or determinations are required during the 
                terminal year of such program, such acts and 
                determinations shall be required during any fiscal year 
                in which the extension described in that part of 
                paragraph (1) that follows clause (ii) of paragraph 
                (1)(A) is in effect.

``SEC. 101. STATE PLANS.

    ``(a) Plan Requirements.--
            ``(1) In general.--
                    ``(A) Submission.--To be eligible to participate in 
                programs under this title, a State shall submit to the 
                Commissioner a State plan for vocational rehabilitation 
                services that meets the requirements of this section, 
                on the same date that the State submits a State plan 
                under section 304 of the Workforce Investment 
                Partnership Act of 1998.
                    ``(B) Nonduplication.--The State shall not be 
                required to submit, in the State plan for vocational 
                rehabilitation services, policies, procedures, or 
                descriptions required under this title that have been 
                previously submitted to the Commissioner and that 
                demonstrate that such State meets the requirements of 
                this title, including any policies, procedures, or 
                descriptions submitted under this title as in effect on 
                the day before the effective date of the Rehabilitation 
                Act Amendments of 1998.
                    ``(C) Duration.--The State plan shall remain in 
                effect subject to the submission of such modifications 
                as the State determines to be necessary or as the 
                Commissioner may require based on a change in State 
                policy, a change in Federal law (including 
                regulations), an interpretation of this Act by a 
                Federal court or the highest court of the State, or a 
                finding by the Commissioner of State noncompliance with 
                the requirements of this Act, until the State submits 
                and receives approval of a new State plan.
            ``(2) Designated state agency; designated state unit.--
                    ``(A) Designated state agency.--The State plan 
                shall designate a State agency as the sole State agency 
                to administer the plan, or to supervise the 
                administration of the plan by a local agency, except 
                that--
                            ``(i) where, under State law, the State 
                        agency for individuals who are blind or another 
                        agency that provides assistance or services to 
                        adults who are blind is authorized to provide 
                        vocational rehabilitation services to 
                        individuals who are blind, that agency may be 
                        designated as the sole State agency to 
                        administer the part of the plan under which 
                        vocational rehabilitation services are provided 
                        for individuals who are blind (or to supervise 
                        the administration of such part by a local 
                        agency) and a separate State agency may be 
                        designated as the sole State agency to 
                        administer or supervise the administration of 
                        the rest of the State plan;
                            ``(ii) the Commissioner, on the request of 
                        a State, may authorize the designated State 
                        agency to share funding and administrative 
                        responsibility with another agency of the State 
                        or with a local agency in order to permit the 
                        agencies to carry out a joint program to 
                        provide services to individuals with 
                        disabilities, and may waive compliance, with 
                        respect to vocational rehabilitation services 
                        furnished under the joint program, with the 
                        requirement of paragraph (4) that the plan be 
                        in effect in all political subdivisions of the 
                        State; and
                            ``(iii) in the case of American Samoa, the 
                        appropriate State agency shall be the Governor 
                        of American Samoa.
                    ``(B) Designated state unit.--The State agency 
                designated under subparagraph (A) shall be--
                            ``(i) a State agency primarily concerned 
                        with vocational rehabilitation, or vocational 
                        and other rehabilitation, of individuals with 
                        disabilities; or
                            ``(ii) if not such an agency, the State 
                        agency (or each State agency if 2 are so 
                        designated) shall include a vocational 
                        rehabilitation bureau, division, or other 
                        organizational unit that--
                                    ``(I) is primarily concerned with 
                                vocational rehabilitation, or 
                                vocational and other rehabilitation, of 
                                individuals with disabilities, and is 
                                responsible for the vocational 
                                rehabilitation program of the 
                                designated State agency;
                                    ``(II) has a full-time director;
                                    ``(III) has a staff employed on the 
                                rehabilitation work of the 
                                organizational unit all or 
                                substantially all of whom are employed 
                                full time on such work; and
                                    ``(IV) is located at an 
                                organizational level and has an 
                                organizational status within the 
                                designated State agency comparable to 
                                that of other major organizational 
                                units of the designated State agency.
                    ``(C) Responsibility for services for the blind.--
                If the State has designated only 1 State agency 
                pursuant to subparagraph (A), the State may assign 
                responsibility for the part of the plan under which 
                vocational rehabilitation services are provided for 
                individuals who are blind to an organizational unit of 
                the designated State agency and assign responsibility 
                for the rest of the plan to another organizational unit 
                of the designated State agency, with the provisions of 
                subparagraph (B) applying separately to each of the 
                designated State units.
            ``(3) Non-federal share.--The State plan shall provide for 
        financial participation by the State, or if the State so 
        elects, by the State and local agencies, to provide the amount 
        of the non-Federal share of the cost of carrying out part B.
            ``(4) Statewideness.--The State plan shall provide that the 
        plan shall be in effect in all political subdivisions of the 
        State, except that in the case of any activity that, in the 
        judgment of the Commissioner, is likely to assist in promoting 
        the vocational rehabilitation of substantially larger numbers 
        of individuals with disabilities or groups of individuals with 
        disabilities, the Commissioner may waive compliance with the 
        requirement that the plan be in effect in all political 
        subdivisions of the State to the extent and for such period as 
        may be provided in accordance with regulations prescribed by 
        the Commissioner. The Commissioner may waive compliance with 
        the requirement only if the non-Federal share of the cost of 
        the vocational rehabilitation services is provided from funds 
        made available by a local agency (including, to the extent 
        permitted by such regulations, funds contributed to such agency 
        by a private agency, organization, or individual).
            ``(5) Order of selection for vocational rehabilitation 
        services.--In the event that vocational rehabilitation services 
        cannot be provided to all eligible individuals with 
        disabilities in the State who apply for the services, the State 
        plan shall--
                    ``(A) show the order to be followed in selecting 
                eligible individuals to be provided vocational 
                rehabilitation services;
                    ``(B) provide the justification for the order of 
                selection;
                    ``(C) include an assurance that, in accordance with 
                criteria established by the State for the order of 
                selection, individuals with the most significant 
                disabilities will be selected first for the provision 
                of vocational rehabilitation services; and
                    ``(D) provide that eligible individuals, who do not 
                meet the order of selection criteria, shall have access 
                to services provided through the information and 
                referral system implemented under paragraph (20).
            ``(6) Methods for administration.--
                    ``(A) In general.--The State plan shall provide for 
                such methods of administration as are found by the 
                Commissioner to be necessary for the proper and 
                efficient administration of the plan.
                    ``(B) Employment of individuals with 
                disabilities.--The State plan shall provide that the 
                designated State agency, and entities carrying out 
                community rehabilitation programs in the State, who are 
                in receipt of assistance under this title shall take 
                affirmative action to employ and advance in employment 
                qualified individuals with disabilities covered under, 
                and on the same terms and conditions as set forth in, 
                section 503.
                    ``(C) Personnel and program standards for community 
                rehabilitation programs.--The State plan shall provide 
                that the designated State unit shall establish, 
                maintain, and implement minimum standards for community 
                rehabilitation programs providing services to 
                individuals under this title, including--
                            ``(i) standards--
                                    ``(I) governing community 
                                rehabilitation programs and qualified 
                                personnel utilized for the provision of 
                                vocational rehabilitation services 
                                through such programs; and
                                    ``(II) providing, to the extent 
                                that providers of vocational 
                                rehabilitation services utilize 
                                personnel who do not meet the highest 
                                requirements in the State applicable to 
                                a particular profession or discipline, 
                                that the providers shall take steps to 
                                ensure the retraining or hiring of 
                                personnel so that such personnel meet 
                                appropriate professional standards in 
                                the State; and
                            ``(ii) minimum standards to ensure the 
                        availability of personnel, to the maximum 
                        extent feasible, trained to communicate in the 
                        native language or mode of communication of an 
                        individual receiving services through such 
                        programs.
                    ``(D) Facilities.--The State plan shall provide 
                that facilities used in connection with the delivery of 
                services assisted under the State plan shall comply 
                with the Act entitled `An Act to insure that certain 
                buildings financed with Federal funds are so designed 
                and constructed as to be accessible to the physically 
                handicapped', approved on August 12, 1968 (commonly 
                known as the `Architectural Barriers Act of 1968'), 
                with section 504, and with the Americans with 
                Disabilities Act of 1990.
            ``(7) Comprehensive system of personnel development.--The 
        State plan shall include--
                    ``(A) a description, consistent with the purposes 
                of this Act, of a comprehensive system of personnel 
                development for personnel employed by the designated 
                State unit and involved in carrying out this title, 
                which, at a minimum, shall consist of--
                            ``(i) a description of the procedures and 
                        activities the designated State agency will 
                        implement and undertake to address the current 
                        and projected needs for personnel, and training 
                        needs of such personnel, in the designated 
                        State unit to ensure that the personnel are 
                        adequately trained and prepared;
                            ``(ii) a plan to coordinate and facilitate 
                        efforts between the designated State unit and 
                        institutions of higher education and 
                        professional associations to recruit, prepare, 
                        and retain qualified personnel, including 
                        personnel from culturally or linguistically 
                        diverse backgrounds, and personnel that include 
                        individuals with disabilities;
                            ``(iii) a description of policies and 
                        procedures on the establishment and maintenance 
                        of reasonable standards to ensure that 
                        personnel, including professionals and 
                        paraprofessionals, are adequately trained and 
                        prepared, including--
                                    ``(I) standards that are consistent 
                                with any national or State approved or 
                                recognized certification, licensing, 
                                registration, or other comparable 
                                requirements that apply to the area in 
                                which such personnel are providing 
                                vocational rehabilitation services; and
                                    ``(II) to the extent that such 
                                standards are not based on the highest 
                                requirements in the State applicable to 
                                a particular profession or discipline, 
                                the steps the State will take to ensure 
                                the retraining or hiring of personnel 
                                within the designated State unit so 
                                that such personnel meet appropriate 
                                professional standards in the State;
                            ``(iv) a description of a system for 
                        evaluating the performance of vocational 
                        rehabilitation counselors, coordinators, and 
                        other personnel used in the State, including a 
                        description of how the system facilitates the 
                        accomplishment of the purpose and policy of 
                        this title, including the policy of serving 
                        individuals with the most significant 
                        disabilities;
                            ``(v) a description of standards to ensure 
                        the availability of personnel within the 
                        designated State unit who are, to the maximum 
                        extent feasible, trained to communicate in the 
                        native language or mode of communication of an 
                        applicant or eligible individual; and
                            ``(vi) a detailed description, including a 
                        budget, of how the funds reserved under 
                        subparagraph (B) will be expended to carry out 
                        the comprehensive system for personnel 
                        development, including the provision of in-
                        service training for personnel of the 
                        designated State unit;
                    ``(B) assurances that--
                            ``(i) at a minimum, the State will reserve 
                        from the allotment made to the State under 
                        section 110 an amount to carry out the 
                        comprehensive system of personnel development, 
                        including the provision of in-service training 
                        for personnel of the designated State unit;
                            ``(ii) for fiscal year 1999, the amount 
                        reserved will be equal to the amount of the 
                        funds the State received for fiscal year 1998 
                        to provide in-service training under section 
                        302, or for any State that did not receive 
                        those funds for fiscal year 1998, an amount 
                        determined by the Commissioner; and
                            ``(iii) for each subsequent year, the 
                        amount reserved under this subparagraph will be 
                        equal to the amount reserved under this 
                        subparagraph for the previous fiscal year, 
                        increased by the percentage change in the 
                        Consumer Price Index published under section 
                        100(c) in such previous fiscal year, if the 
                        percentage change indicates an increase; and
                    ``(C) an assurance that the standards adopted by a 
                State in accordance with subparagraph (A)(iii) shall 
                not permit discrimination on the basis of disability 
                with regard to training and hiring.
            ``(8) Comparable services and benefits.--
                    ``(A) Determination of availability.--
                            ``(i) In general.--The State plan shall 
                        include an assurance that, prior to providing 
                        any vocational rehabilitation service to an 
                        eligible individual, except those services 
                        specified in paragraph (5)(D) and in paragraphs 
                        (1) through (4) and (14) of section 103(a), the 
                        designated State unit will determine whether 
                        comparable services and benefits are available 
                        under any other program (other than a program 
                        carried out under this title) unless such a 
                        determination would interrupt or delay--
                                    ``(I) the progress of the 
                                individual toward achieving the 
                                employment outcome identified in the 
                                individualized rehabilitation 
                                employment plan of the individual in 
                                accordance with section 102(b); or
                                    ``(II) the provision of such 
                                service to any individual at extreme 
                                medical risk.
                            ``(ii) Awards and scholarships.--For 
                        purposes of clause (i), comparable benefits do 
                        not include awards and scholarships based on 
                        merit.
                    ``(B) Interagency agreement.--The State plan shall 
                include an assurance that the Governor of the State or 
                the designee of the Governor will ensure that an 
                interagency agreement or other mechanism for 
                interagency coordination takes effect between any 
                appropriate public entity, including a component of the 
                statewide workforce investment system, and the 
                designated State unit, in order to ensure the provision 
                of vocational rehabilitation services described in 
                subparagraph (A) (other than those services specified 
                in paragraph (5)(D), and in paragraphs (1) through (4) 
                and (14) of section 103(a)), that are included in the 
                individualized rehabilitation employment plan of an 
                eligible individual, including the provision of such 
                vocational rehabilitation services during the pendency 
                of any dispute described in clause (iii). Such 
                agreement or mechanism shall include the following:
                            ``(i) Agency financial responsibility.--An 
                        identification of, or a description of a method 
                        for defining, the financial responsibility of 
                        such public entity for providing such services, 
                        and a provision stating that the financial 
                        responsibility of such public entity for 
                        providing such services, including the 
                        financial responsibility of the State agency 
                        responsible for administering the medicaid 
                        program under title XIX of the Social Security 
                        Act (42 U.S.C. 1396 et seq.), other public 
                        agencies, and public institutions of higher 
                        education, shall precede the financial 
                        responsibility of the designated State unit 
                        especially with regard to the provision of 
                        auxiliary aids and services to the maximum 
                        extent allowed by law.
                            ``(ii) Conditions, terms, and procedures of 
                        reimbursement.--Information specifying the 
                        conditions, terms, and procedures under which a 
                        designated State unit shall pursue and obtain 
                        reimbursement by other public agencies for 
                        providing such services.
                            ``(iii) Interagency disputes.--Information 
                        specifying procedures for resolving interagency 
                        disputes under the agreement or other mechanism 
                        (including procedures under which the 
                        designated State unit may initiate proceedings 
                        to secure reimbursement from other agencies or 
                        otherwise implement the provisions of the 
                        agreement or mechanism).
                            ``(iv) Coordination of services 
                        procedures.--Information specifying policies 
                        and procedures for agencies to determine and 
                        identify the interagency coordination 
                        responsibilities of each agency to promote the 
                        coordination and timely delivery of vocational 
                        rehabilitation services (except those services 
                        specified in paragraph (5)(D) and in paragraphs 
                        (1) through (4) and (14) of section 103(a)).
                    ``(C) Responsibilities of other agencies.--
                            ``(i) Responsibilities under other law.--
                        Notwithstanding subparagraph (B), if any public 
                        agency other than a designated State unit is 
                        obligated under Federal or State law, or 
                        assigned responsibility under State policy or 
                        under this paragraph, to provide or pay for any 
                        services that are also considered to be 
                        vocational rehabilitation services (other than 
                        those specified in paragraph (5)(D) and in 
                        paragraphs (1) through (4) and (14) of section 
                        103(a)), such public agency shall fulfill that 
                        obligation or responsibility, either directly 
                        or by contract or other arrangement.
                            ``(ii) Reimbursement.--In a case in which a 
                        public agency other than the designated State 
                        unit fails to fulfill the financial 
                        responsibility of the agency described in this 
                        paragraph to provide services described in 
                        clause (i), the designated State unit may claim 
                        reimbursement from such public agency for such 
                        services. Such public agency shall reimburse 
                        the designated State unit pursuant to the terms 
                        of the interagency agreement or other mechanism 
                        in effect under this paragraph according to the 
                        procedures established pursuant to subparagraph 
                        (B)(ii).
                    ``(D) Methods.--The Governor of a State may meet 
                the requirements of subparagraph (B) through--
                            ``(i) a State statute or regulation;
                            ``(ii) a signed agreement between the 
                        respective agency officials that clearly 
                        identifies the responsibilities of each agency 
                        relating to the provision of services; or
                            ``(iii) another appropriate method, as 
                        determined by the designated State unit.
            ``(9) Individualized rehabilitation employment plan.--
                    ``(A) Development and implementation.--The State 
                plan shall include an assurance that an individualized 
                rehabilitation employment plan meeting the requirements 
                of section 102(b) will be developed and implemented in 
                a timely manner for an individual subsequent to the 
                determination of the eligibility of the individual for 
                services under this title, except that in a State 
                operating under an order of selection described in 
                paragraph (5), the plan will be developed and 
                implemented only for individuals meeting the order of 
                selection criteria of the State.
                    ``(B) Provision of services.--The State plan shall 
                include an assurance that such services will be 
                provided in accordance with the provisions of the 
                individualized rehabilitation employment plan.
            ``(10) Reporting requirements.--
                    ``(A) In general.--The State plan shall include an 
                assurance that the designated State agency will submit 
                reports in the form and level of detail and at the time 
                required by the Commissioner regarding applicants for, 
                and eligible individuals receiving, services under this 
                title.
                    ``(B) Annual reporting.--In specifying the 
                information to be submitted in the reports, the 
                Commissioner shall require annual reporting on the 
                eligible individuals receiving the services, on those 
                specific data elements described in section 321(d)(2) 
                of the Workforce Investment Partnership Act of 1998 
                that are determined by the Secretary to be relevant in 
                assessing the performance of designated State units in 
                carrying out the vocational rehabilitation program 
                established under this title.
                    ``(C) Additional data.--In specifying the 
                information required to be submitted in the reports, 
                the Commissioner shall require additional data with 
                regard to applicants and eligible individuals related 
                to--
                            ``(i) the number of applicants and the 
                        number of individuals determined to be eligible 
                        or ineligible for the program carried out under 
                        this title, including--
                                    ``(I) the number of individuals 
                                determined to be ineligible because 
                                they did not require vocational 
                                rehabilitation services, as provided in 
                                section 102(a); and
                                    ``(II) the number of individuals 
                                determined, on the basis of clear and 
                                convincing evidence, to be too severely 
                                disabled to benefit in terms of an 
                                employment outcome from vocational 
                                rehabilitation services;
                            ``(ii) the number of individuals who 
                        received vocational rehabilitation services 
                        through the program, including--
                                    ``(I) the number who received 
                                services under paragraph (5)(D), but 
                                not assistance under an individualized 
                                rehabilitation employment plan; and
                                    ``(II) the number who received 
                                assistance under an individualized 
                                rehabilitation employment plan 
                                consistent with section 102(b);
                            ``(iii) the number of individuals receiving 
                        public assistance and the amount of the public 
                        assistance on the date of application and on 
                        the last date of participation in the program 
                        carried out under this title;
                            ``(iv) the number of individuals with 
                        disabilities who ended their participation in 
                        the program and the number who achieved 
                        employment outcomes after receiving vocational 
                        rehabilitation services; and
                            ``(v) the number of individuals who ended 
                        their participation in the program and who were 
                        employed 6 months and 12 months after securing 
                        or regaining employment, or, in the case of 
                        individuals whose employment outcome was to 
                        retain or advance in employment, who were 
                        employed 6 months and 12 months after achieving 
                        their employment outcome, including--
                                    ``(I) the number of such 
                                individuals who earned the minimum wage 
                                rate specified in section 6(a)(1) of 
                                the Fair Labor Standards Act of 1938 
                                (29 U.S.C. 206(a)(1)) or another wage 
                                level set by the Commissioner, during 
                                such employment;
                                    ``(II) the number of such 
                                individuals who received employment 
                                benefits from an employer during such 
                                employment; and
                                    ``(III) the number of such 
                                individuals whose public assistance was 
                                terminated or reduced after such 
                                participation.
                    ``(D) Costs and results.--The Commissioner shall 
                also require that the designated State agency include 
                in the reports information on--
                            ``(i) the costs under this title of 
                        conducting administration, providing assessment 
                        services, counseling and guidance, and other 
                        direct services provided by designated State 
                        agency staff, providing services purchased 
                        under individualized rehabilitation employment 
                        plans, supporting small business enterprises, 
                        establishing, developing, and improving 
                        community rehabilitation programs, and 
                        providing other services to groups; and
                            ``(ii) the results of annual evaluation by 
                        the State of program effectiveness under 
                        paragraph (15)(E).
                    ``(E) Additional information.--The Commissioner 
                shall require that each designated State unit include 
                in the reports additional information related to the 
                applicants and eligible individuals, obtained either 
                through a complete count or sampling, including--
                            ``(i) information on--
                                    ``(I) age, gender, race, ethnicity, 
                                education, type of impairment, severity 
                                of disability, and whether the 
                                individuals are students described in 
                                clause (i) or (ii)(II) of paragraph 
                                (11)(D);
                                    ``(II) dates of application, 
                                determination of eligibility or 
                                ineligibility, initiation of the 
                                individualized rehabilitation 
                                employment plan, and termination of 
                                participation in the program;
                                    ``(III) earnings at the time of 
                                application for the program and 
                                termination of participation in the 
                                program;
                                    ``(IV) work status and occupation;
                                    ``(V) types of services, including 
                                assistive technology services and 
                                assistive technology devices, provided 
                                under the program;
                                    ``(VI) types of public or private 
                                programs or agencies that furnished 
                                services under the program; and
                                    ``(VII) the reasons for individuals 
                                terminating participation in the 
                                program without achieving an employment 
                                outcome; and
                            ``(ii) information necessary to determine 
                        the success of the State in meeting--
                                    ``(I) the State performance 
                                measures established under section 
                                321(b) of the Workforce Investment 
                                Partnership Act of 1998 to the extent 
                                the measures are applicable to 
                                individuals with disabilities; and
                                    ``(II) the standards and indicators 
                                established pursuant to section 106.
                    ``(F) Completeness and confidentiality.--The State 
                plan shall include an assurance that the information 
                submitted in the reports will include a complete count, 
                except as provided in subparagraph (E), of the 
                applicants and eligible individuals, in a manner 
                permitting the greatest possible cross-classification 
                of data and that the identity of each individual for 
                which information is supplied under this paragraph will 
                be kept confidential.
            ``(11) Cooperation, collaboration, and coordination.--
                    ``(A) Cooperative agreements with other components 
                of statewide workforce investment systems.--The State 
                plan shall provide that the designated State unit or 
                designated State agency shall enter into a cooperative 
                agreement with other entities that are components of 
                the statewide workforce investment system of the State, 
                regarding the system, which agreement may provide for--
                            ``(i) provision of intercomponent staff 
                        training and technical assistance with regard 
                        to--
                                    ``(I) the availability and benefits 
                                of, and information on eligibility 
                                standards for, vocational 
                                rehabilitation services; and
                                    ``(II) the promotion of equal, 
                                effective, and meaningful participation 
                                by individuals with disabilities in 
                                workforce investment activities in the 
                                State through the promotion of program 
                                accessibility, the use of 
                                nondiscriminatory policies and 
                                procedures, and the 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 investment system, that 
                        link the components to other electronic 
                        networks, including nonvisual electronic 
                        networks, and that relate to such subjects as 
                        labor market information, and information on 
                        job vacancies, career planning, and workforce 
                        investment activities;
                            ``(iii) use of customer service features 
                        such as common intake and referral procedures, 
                        customer databases, resource information, and 
                        human services hotlines;
                            ``(iv) establishment of cooperative efforts 
                        with employers to--
                                    ``(I) facilitate job placement; and
                                    ``(II) carry out any other 
                                activities that the designated State 
                                unit and the employers determine to be 
                                appropriate;
                            ``(v) identification of staff roles, 
                        responsibilities, and available resources, and 
                        specification of the financial responsibility 
                        of each component of the statewide workforce 
                        investment system with regard to paying for 
                        necessary services (consistent with State law 
                        and Federal requirements); and
                            ``(vi) specification of procedures for 
                        resolving disputes among such components.
                    ``(B) Replication of cooperative agreements.--The 
                State plan shall provide 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 investment system.
                    ``(C) Interagency cooperation with other 
                agencies.--The State plan shall include descriptions of 
                interagency cooperation with, and utilization of the 
                services and facilities of, the Federal, State, and 
                local agencies and programs that are not carrying out 
                activities through the statewide workforce investment 
                system.
                    ``(D) Coordination with education officials.--The 
                State plan shall contain plans, policies, and 
                procedures for coordination between the designated 
                State agency and education officials that are designed 
                to facilitate the transition of students who are 
                individuals with disabilities described in section 
                7(20)(B) from the receipt of educational services in 
                school to the receipt of vocational rehabilitation 
                services under this title, including information on a 
                formal interagency agreement with the State educational 
                agency that, at a minimum, provides for--
                            ``(i) consultation and technical assistance 
                        to assist educational agencies in planning for 
                        the transition of students who are individuals 
                        with disabilities described in section 7(20)(B) 
                        from school to post-school activities, 
                        including vocational rehabilitation services;
                            ``(ii)(I) transition planning by personnel 
                        of the designated State agency and educational 
                        agency personnel for students with disabilities 
                        described in clause (i) that facilitates the 
                        development and completion of their 
                        individualized education programs under section 
                        614(d) of the Individuals with Disabilities 
                        Education Act (as added by section 101 of 
                        Public Law 105-17); and
                            ``(II) transition planning and services for 
                        students who are eligible to receive services 
                        under this title and who will be exiting school 
                        in the school year in which the planning and 
                        services are provided;
                            ``(iii) the roles and responsibilities, 
                        including financial responsibilities, of each 
                        agency, including provisions for determining 
                        State lead agencies and qualified personnel 
                        responsible for the transition services 
                        described in clause (ii)(II); and
                            ``(iv) procedures for outreach to and 
                        identification of students with disabilities 
                        described in clause (ii)(II) who need the 
                        transition services.
                    ``(E) Coordination with statewide independent 
                living councils and independent living centers.--The 
                State plan shall include an assurance that the 
                designated State unit, the Statewide Independent Living 
                Council established under section 705, and the 
                independent living centers described in part C of title 
                VII within the State have developed working 
                relationships and coordinate their activities.
                    ``(F) Cooperative agreement with recipients of 
                grants for services to american indians.--In applicable 
                cases, the State plan shall include an assurance that 
                the State has entered into a formal cooperative 
                agreement with each grant recipient in the State that 
                receives funds under part C. The agreement shall 
                describe strategies for collaboration and coordination 
                in providing vocational rehabilitation services to 
                American Indians who are individuals with disabilities, 
                including--
                            ``(i) strategies for interagency referral 
                        and information sharing that will assist in 
                        eligibility determinations and the development 
                        of individualized rehabilitation employment 
                        plans;
                            ``(ii) procedures for ensuring that 
                        American Indians who are individuals with 
                        disabilities and are living near a reservation 
                        or tribal service area are provided vocational 
                        rehabilitation services; and
                            ``(iii) provisions for sharing resources in 
                        cooperative studies and assessments, joint 
                        training activities, and other collaborative 
                        activities designed to improve the provision of 
                        services to American Indians who are 
                        individuals with disabilities.
            ``(12) Residency.--The State plan shall include an 
        assurance that the State will not impose a residence 
        requirement that excludes from services provided under the plan 
        any individual who is present in the State.
            ``(13) Services to american indians.--The State plan shall 
        include an assurance that, except as otherwise provided in part 
        C, the designated State agency will provide vocational 
        rehabilitation services to American Indians who are individuals 
        with disabilities residing in the State to the same extent as 
        the designated State agency provides such services to other 
        significant populations of individuals with disabilities 
        residing in the State.
            ``(14) Annual review of individuals in extended employment 
        or other employment under special certificate provisions of the 
        fair labor standards act of 1938.--The State plan shall provide 
        for--
                    ``(A) an annual review and reevaluation of the 
                status of each individual with a disability served 
                under this title who has achieved an employment outcome 
                either in an extended employment setting in a community 
                rehabilitation program or any other employment under 
                section 14(c) of the Fair Labor Standards Act (29 
                U.S.C. 214(c)) for 2 years after the achievement of the 
                outcome (and annually thereafter if requested by the 
                individual or, if appropriate, the individual's 
                representative), to determine the interests, 
                priorities, and needs of the individual with respect to 
                competitive employment or training for competitive 
                employment;
                    ``(B) input into the review and reevaluation, and a 
                signed acknowledgment that such review and reevaluation 
                have been conducted, by the individual with a 
                disability, or, if appropriate, the individual's 
                representative; and
                    ``(C) maximum efforts, including the identification 
                and provision of vocational rehabilitation services, 
                reasonable accommodations, and other necessary support 
                services, to assist the individuals described in 
                subparagraph (A) in engaging in competitive employment.
            ``(15) Annual state goals and reports of progress.--
                    ``(A) Assessments and estimates.--The State plan 
                shall--
                            ``(i) include the results of a 
                        comprehensive, statewide assessment, jointly 
                        conducted by the designated State unit and the 
                        State Rehabilitation Council (if the State has 
                        such a Council) every 3 years, describing the 
                        rehabilitation needs of individuals with 
                        disabilities residing within the State, 
                        particularly the vocational rehabilitation 
                        services needs of--
                                    ``(I) individuals with the most 
                                significant disabilities, including 
                                their need for supported employment 
                                services;
                                    ``(II) individuals with 
                                disabilities who are minorities and 
                                individuals with disabilities who have 
                                been unserved or underserved by the 
                                vocational rehabilitation program 
                                carried out under this title; and
                                    ``(III) individuals with 
                                disabilities served through other 
                                components of the statewide workforce 
                                investment system (other than the 
                                vocational rehabilitation program), as 
                                identified by such individuals and 
                                personnel assisting such individuals 
                                through the components;
                            ``(ii) include an assessment of the need to 
                        establish, develop, or improve community 
                        rehabilitation programs within the State; and
                            ``(iii) provide that the State shall submit 
                        to the Commissioner a report containing 
                        information regarding updates to the 
                        assessments, for any year in which the State 
                        updates the assessments.
                    ``(B) Annual estimates.--The State plan shall 
                include, and shall provide that the State shall 
                annually submit a report to the Commissioner that 
                includes, State estimates of--
                            ``(i) the number of individuals in the 
                        State who are eligible for services under this 
                        title;
                            ``(ii) the number of such individuals who 
                        will receive services provided with funds 
                        provided under part B and under part C of title 
                        VI, including, if the designated State agency 
                        uses an order of selection in accordance with 
                        paragraph (5), estimates of the number of 
                        individuals to be served under each priority 
                        category within the order; and
                            ``(iii) the costs of the services described 
                        in clause (i), including, if the designated 
                        State agency uses an order of selection in 
                        accordance with paragraph (5), the service 
                        costs for each priority category within the 
                        order.
                    ``(C) Goals and priorities.--
                            ``(i) In general.--The State plan shall 
                        identify the goals and priorities of the State 
                        in carrying out the program. The goals and 
                        priorities shall be jointly developed, agreed 
                        to, and reviewed annually by the designated 
                        State unit and the State Rehabilitation 
                        Council, if the State has such a Council. Any 
                        revisions to the goals and priorities shall be 
                        jointly agreed to by the designated State unit 
                        and the State Rehabilitation Council, if the 
                        State has such a Council. The State plan shall 
                        provide that the State shall submit to the 
                        Commissioner a report containing information 
                        regarding revisions in the goals and 
                        priorities, for any year in which the State 
                        revises the goals and priorities.
                            ``(ii) Basis.--The State goals and 
                        priorities shall be based on an analysis of--
                                    ``(I) the comprehensive assessment 
                                described in subparagraph (A), 
                                including any updates to the 
                                assessment;
                                    ``(II) the performance of the State 
                                on the standards and indicators 
                                established under section 106; and
                                    ``(III) other available information 
                                on the operation and the effectiveness 
                                of the vocational rehabilitation 
                                program carried out in the State, 
                                including any reports received from the 
                                State Rehabilitation Council, under 
                                section 105(c) and the findings and 
                                recommendations from monitoring 
                                activities conducted under section 107.
                            ``(iii) Service and outcome goals for 
                        categories in order of selection.--If the 
                        designated State agency uses an order of 
                        selection in accordance with paragraph (5), the 
                        State shall also identify in the State plan 
                        service and outcome goals and the time within 
                        which these goals may be achieved for 
                        individuals in each priority category within 
                        the order.
                    ``(D) Strategies.--The State plan shall contain a 
                description of the strategies the State will use to 
                address the needs identified in the assessment 
                conducted under subparagraph (A) and achieve the goals 
                and priorities identified in subparagraph (C), 
                including--
                            ``(i) the methods to be used to expand and 
                        improve services to individuals with 
                        disabilities, including how a broad range of 
                        assistive technology services and assistive 
                        technology devices will be provided to such 
                        individuals at each stage of the rehabilitation 
                        process and how such services and devices will 
                        be provided to such individuals on a statewide 
                        basis;
                            ``(ii) outreach procedures to identify and 
                        serve individuals with disabilities who are 
                        minorities and individuals with disabilities 
                        who have been unserved or underserved by the 
                        vocational rehabilitation program;
                            ``(iii) where necessary, the plan of the 
                        State for establishing, developing, or 
                        improving community rehabilitation programs;
                            ``(iv) strategies to improve the 
                        performance of the State with respect to the 
                        evaluation standards and performance indicators 
                        established pursuant to section 106; and
                            ``(v) strategies for assisting entities 
                        carrying out other components of the statewide 
                        workforce investment system (other than the 
                        vocational rehabilitation program) in assisting 
                        individuals with disabilities.
                    ``(E) Evaluation and reports of progress.--The 
                State plan shall--
                            ``(i) include the results of an evaluation 
                        of the effectiveness of the vocational 
                        rehabilitation program, and a joint report by 
                        the designated State unit and the State 
                        Rehabilitation Council, if the State has such a 
                        Council, to the Commissioner on the progress 
                        made in improving the effectiveness from the 
                        previous year, which evaluation and report 
                        shall include--
                                    ``(I) an evaluation of the extent 
                                to which the goals identified in 
                                subparagraph (C) were achieved;
                                    ``(II) a description of strategies 
                                that contributed to achieving the 
                                goals;
                                    ``(III) to the extent to which the 
                                goals were not achieved, a description 
                                of the factors that impeded that 
                                achievement; and
                                    ``(IV) an assessment of the 
                                performance of the State on the 
                                standards and indicators established 
                                pursuant to section 106; and
                            ``(ii) provide that the designated State 
                        unit and the State Rehabilitation Council, if 
                        the State has such a Council, shall jointly 
                        submit to the Commissioner an annual report 
                        that contains the information described in 
                        clause (i).
            ``(16) Public comment.--The State plan shall--
                    ``(A) provide that the designated State agency, 
                prior to the adoption of any policies or procedures 
                governing the provision of vocational rehabilitation 
                services under the State plan (including making any 
                amendment to such policies and procedures), shall 
                conduct public meetings throughout the State, after 
                providing adequate notice of the meetings, to provide 
                the public, including individuals with disabilities, an 
                opportunity to comment on the policies or procedures, 
                and actively consult with the Director of the client 
                assistance program carried out under section 112, and, 
                as appropriate, Indian tribes, tribal organizations, 
                and Native Hawaiian organizations on the policies or 
                procedures; and
                    ``(B) provide that the designated State agency (or 
                each designated State agency if 2 agencies are 
                designated) and any sole agency administering the plan 
                in a political subdivision of the State, shall take 
                into account, in connection with matters of general 
                policy arising in the administration of the plan, the 
                views of--
                            ``(i) individuals and groups of individuals 
                        who are recipients of vocational rehabilitation 
                        services, or in appropriate cases, the 
                        individuals' representatives;
                            ``(ii) personnel working in programs that 
                        provide vocational rehabilitation services to 
                        individuals with disabilities;
                            ``(iii) providers of vocational 
                        rehabilitation services to individuals with 
                        disabilities;
                            ``(iv) the director of the client 
                        assistance program; and
                            ``(v) the State Rehabilitation Council, if 
                        the State has such a Council.
            ``(17) Prohibition on use of funds for construction of 
        facilities.--The State plan shall contain an assurance that the 
        State will not use any funds made available under this title 
        for the construction of facilities.
            ``(18) Innovation and expansion activities.--The State plan 
        shall--
                    ``(A) include an assurance that the State will 
                reserve and use a portion of the funds allotted to the 
                State under section 110--
                            ``(i) for the development and 
                        implementation of innovative approaches to 
                        expand and improve the provision of vocational 
                        rehabilitation services to individuals with 
                        disabilities under this title, particularly 
                        individuals with the most significant 
                        disabilities, consistent with the findings of 
                        the statewide assessment and goals and 
                        priorities of the State as described in 
                        paragraph (15); and
                            ``(ii) to support the funding of--
                                    ``(I) the State Rehabilitation 
                                Council, if the State has such a 
                                Council, consistent with the plan 
                                prepared under section 105(d)(1); and
                                    ``(II) the Statewide Independent 
                                Living Council, consistent with the 
                                plan prepared under section 705(e)(1);
                    ``(B) include a description of how the reserved 
                funds will be utilized; and
                    ``(C) provide that the State shall submit to the 
                Commissioner an annual report containing a description 
                of how the reserved funds will be utilized.
            ``(19) Choice.--The State plan shall include an assurance 
        that applicants and eligible individuals or, as appropriate, 
        the applicants' representatives or individuals' 
        representatives, will be provided information and support 
        services to assist the applicants and individuals in exercising 
        informed choice throughout the rehabilitation process, 
        consistent with the provisions of section 102(d).
            ``(20) Information and referral services.--
                    ``(A) In general.--The State plan shall include an 
                assurance that the designated State agency will 
                implement an information and referral system adequate 
                to ensure that individuals with disabilities will be 
                provided accurate vocational rehabilitation 
                information, using appropriate modes of communication, 
                to assist such individuals in preparing for, securing, 
                retaining, or regaining employment, and will be 
                appropriately referred to Federal and State programs 
                (other than the vocational rehabilitation program 
                carried out under this title), including other 
                components of the statewide workforce investment system 
                in the State.
                    ``(B) Services.--In providing activities through 
                the system established under subparagraph (A), the 
                State may include services consisting of the provision 
                of individualized counseling and guidance, 
                individualized vocational exploration, supervised job 
                placement referrals, and assistance in securing 
                reasonable accommodations for eligible individuals who 
                do not meet the order of selection criteria used by the 
                State, to the extent that such services are not 
                purchased by the designated State unit.
            ``(21) State independent consumer-controlled commission; 
        state rehabilitation council.--
                    ``(A) Commission or council.--The State plan shall 
                provide that either--
                            ``(i) the designated State agency is an 
                        independent commission that--
                                    ``(I) is responsible under State 
                                law for operating, or overseeing the 
                                operation of, the vocational 
                                rehabilitation program in the State;
                                    ``(II) is consumer-controlled by 
                                persons who--
                                            ``(aa) are individuals with 
                                        physical or mental impairments 
                                        that substantially limit major 
                                        life activities; and
                                            ``(bb) represent 
                                        individuals with a broad range 
                                        of disabilities, unless the 
                                        designated State unit under the 
                                        direction of the commission is 
                                        the State agency for 
                                        individuals who are blind;
                                    ``(III) includes family members, 
                                advocates, or other representatives, of 
                                individuals with mental impairments; 
                                and
                                    ``(IV) undertakes the functions set 
                                forth in section 105(c)(4); or
                            ``(ii) the State has established a State 
                        Rehabilitation Council that meets the criteria 
                        set forth in section 105 and the designated 
                        State unit--
                                    ``(I) in accordance with paragraph 
                                (15), jointly develops, agrees to, and 
                                reviews annually State goals and 
                                priorities, and jointly submits annual 
                                reports of progress with the Council;
                                    ``(II) regularly consults with the 
                                Council regarding the development, 
                                implementation, and revision of State 
                                policies and procedures of general 
                                applicability pertaining to the 
                                provision of vocational rehabilitation 
                                services;
                                    ``(III) includes in the State plan 
                                and in any revision to the State plan, 
                                a summary of input provided by the 
                                Council, including recommendations from 
                                the annual report of the Council 
                                described in section 105(c)(5), the 
                                review and analysis of consumer 
                                satisfaction described in section 
                                105(c)(4), and other reports prepared 
                                by the Council, and the response of the 
                                designated State unit to such input and 
                                recommendations, including explanations 
                                for rejecting any input or 
                                recommendation; and
                                    ``(IV) transmits to the Council--
                                            ``(aa) all plans, reports, 
                                        and other information required 
                                        under this title to be 
                                        submitted to the Secretary;
                                            ``(bb) all policies, and 
                                        information on all practices 
                                        and procedures, of general 
                                        applicability provided to or 
                                        used by rehabilitation 
                                        personnel in carrying out this 
                                        title; and
                                            ``(cc) copies of due 
                                        process hearing decisions 
                                        issued under this title, which 
                                        shall be transmitted in such a 
                                        manner as to ensure that the 
                                        identity of the participants in 
                                        the hearings is kept 
                                        confidential.
                    ``(B) More than 1 designated state agency.--In the 
                case of a State that, under section 101(a)(2), 
                designates a State agency to administer the part of the 
                State plan under which vocational rehabilitation 
                services are provided for individuals who are blind (or 
                to supervise the administration of such part by a local 
                agency) and designates a separate State agency to 
                administer the rest of the State plan, the State shall 
                either establish a State Rehabilitation Council for 
                each of the 2 agencies that does not meet the 
                requirements in subparagraph (A)(i), or establish 1 
                State Rehabilitation Council for both agencies if 
                neither agency meets the requirements of subparagraph 
                (A)(i).
            ``(22) Supported employment state plan supplement.--The 
        State plan shall include an assurance that the State has an 
        acceptable plan for carrying out part C of title VI, including 
        the use of funds under that part to supplement funds made 
        available under part B of this title to pay for the cost of 
        services leading to supported employment.
            ``(23) Electronic and information technology regulations.--
        The State plan shall include an assurance that the State, and 
        any recipient or subrecipient of funds made available to the 
        State under this title--
                    ``(A) will comply with the requirements of section 
                508, including the regulations established under that 
                section; and
                    ``(B) will designate an employee to coordinate 
                efforts to comply with section 508 and will adopt 
                grievance procedures that incorporate due process 
                standards and provide for the prompt and equitable 
                resolution of complaints concerning such requirements.
            ``(24) Annual updates.--The plan shall include an assurance 
        that the State will submit to the Commissioner reports 
        containing annual updates of the information required under 
        paragraph (7) (relating to a comprehensive system of personnel 
        development) and any other updates of the information required 
        under this section that are requested by the Commissioner, and 
        annual reports as provided in paragraphs (15) (relating to 
        assessments, estimates, goals and priorities, and reports of 
        progress) and (18) (relating to innovation and expansion), at 
        such time and in such manner as the Secretary may determine to 
        be appropriate.
    ``(b) Approval; Disapproval of the State Plan.--
            ``(1) Approval.--The Commissioner shall approve any plan 
        that the Commissioner finds fulfills the conditions specified 
        in this section, and shall disapprove any plan that does not 
        fulfill such conditions.
            ``(2) Disapproval.--Prior to disapproval of the State plan, 
        the Commissioner shall notify the State of the intention to 
        disapprove the plan and shall afford the State reasonable 
        notice and opportunity for a hearing.

``SEC. 102. ELIGIBILITY AND INDIVIDUALIZED REHABILITATION EMPLOYMENT 
              PLAN.

    ``(a) Eligibility.--
            ``(1) Criterion for eligibility.--An individual is eligible 
        for assistance under this title if the individual--
                    ``(A) is an individual with a disability under 
                section 7(20)(A); and
                    ``(B) requires vocational rehabilitation services 
                to prepare for, secure, retain, or regain employment.
            ``(2) Presumption of benefit.--
                    ``(A) Demonstration.--For purposes of this section, 
                an individual shall be presumed to be an individual 
                that can benefit in terms of an employment outcome from 
                vocational rehabilitation services under section 
                7(20)(A), unless the designated State unit involved can 
                demonstrate by clear and convincing evidence that such 
                individual is incapable of benefiting in terms of an 
                employment outcome from vocational rehabilitation 
                services due to the severity of the disability of the 
                individual.
                    ``(B) Methods.--In making the demonstration 
                required under subparagraph (A), the designated State 
                unit shall explore the individual's abilities, 
                capabilities, and capacity to perform in work 
                situations, through the use of trial work experiences, 
                as described in section 7(2)(D), with appropriate 
                supports provided through the designated State unit, 
                except under limited circumstances when an individual 
                can not take advantage of such experiences. Such 
                experiences shall be of sufficient variety and over a 
                sufficient period of time to determine the eligibility 
                of the individual or to determine the existence of 
                clear and convincing evidence that the individual is 
                incapable of benefiting in terms of an employment 
                outcome from vocational rehabilitation services due to 
                the severity of the disability of the individual.
            ``(3) Presumption of eligibility.--For purposes of this 
        section, an individual who has a disability or is blind as 
        determined pursuant to title II or title XVI of the Social 
        Security Act (42 U.S.C. 401 et seq. and 1381 et seq.) shall 
        be--
                    ``(A) considered to be an individual with a 
                significant disability under section 7(21)(A); and
                    ``(B) presumed to be eligible for vocational 
                rehabilitation services under this title (provided that 
                the individual intends to achieve an employment outcome 
                consistent with the unique strengths, resources, 
                priorities, concerns, abilities, capabilities, 
                interests, and informed choice of the individual) 
                unless the designated State unit involved can 
                demonstrate by clear and convincing evidence that such 
                individual is incapable of benefiting in terms of an 
                employment outcome from vocational rehabilitation 
                services due to the severity of the disability of the 
                individual in accordance with paragraph (2).
            ``(4) Use of existing information.--
                    ``(A) In general.--To the maximum extent 
                appropriate and consistent with the requirements of 
                this part, for purposes of determining the eligibility 
                of an individual for vocational rehabilitation services 
                under this title and developing the individualized 
                rehabilitation employment plan described in subsection 
                (b) for the individual, the designated State unit shall 
                use information that is existing and current (as of the 
                date of the determination of eligibility or of the 
                development of the individualized rehabilitation 
                employment plan), including information available from 
                other programs and providers, particularly information 
                used by education officials and the Social Security 
                Administration, information provided by the individual 
                and the family of the individual, and information 
                obtained under the assessment for determining 
                eligibility and vocational rehabilitation needs.
                    ``(B) Determinations by officials of other 
                agencies.--Determinations made by officials of other 
                agencies, particularly education officials described in 
                section 101(a)(11)(D), regarding whether an individual 
                satisfies 1 or more factors relating to whether an 
                individual is an individual with a disability under 
                section 7(20)(A) or an individual with a significant 
                disability under section 7(21)(A) shall be used, to the 
                extent appropriate and consistent with the requirements 
                of this part, in assisting the designated State unit in 
                making such determinations.
                    ``(C) Basis.--The determination of eligibility for 
                vocational rehabilitation services shall be based on--
                            ``(i) the review of existing data described 
                        in section 7(2)(A)(i); and
                            ``(ii) to the extent that such data is 
                        unavailable or insufficient for determining 
                        eligibility, the provision of assessment 
                        activities described in section 7(2)(A)(ii).
            ``(5) Determination of ineligibility.--If an individual who 
        applies for services under this title is determined, based on 
        the review of existing data and, to the extent necessary, the 
        assessment activities described in section 7(2)(A)(ii), not to 
        be eligible for the services, or if an eligible individual 
        receiving services under an individualized rehabilitation 
        employment plan is determined to be no longer eligible for the 
        services--
                    ``(A) the ineligibility determination involved 
                shall be made only after providing an opportunity for 
                full consultation with the individual or, as 
                appropriate, the individual's representative;
                    ``(B) the individual or, as appropriate, the 
                individual's representative, shall be informed in 
                writing (supplemented as necessary by other appropriate 
                modes of communication consistent with the informed 
                choice of the individual) of the ineligibility 
                determination, including--
                            ``(i) the reasons for the determination; 
                        and
                            ``(ii) a description of the means by which 
                        the individual may express, and seek a remedy 
                        for, any dissatisfaction with the 
                        determination, including the procedures for 
                        review by an impartial hearing officer under 
                        subsection (c);
                    ``(C) the individual shall be provided with a 
                description of services available from the client 
                assistance program under section 112 and information on 
                how to contact that program; and
                    ``(D) any ineligibility determination that is based 
                on a finding that the individual is incapable of 
                benefiting in terms of an employment outcome shall be 
                reviewed--
                            ``(i) within 12 months; and
                            ``(ii) annually thereafter, if such a 
                        review is requested by the individual or, if 
                        appropriate, by the individual's 
                        representative.
            ``(6) Timeframe for making an eligibility determination.--
        The designated State unit shall determine whether an individual 
        is eligible for vocational rehabilitation services under this 
        title within a reasonable period of time, not to exceed 60 
        days, after the individual has submitted an application for the 
        services unless--
                    ``(A) exceptional and unforeseen circumstances 
                beyond the control of the designated State unit 
                preclude making an eligibility determination within 60 
                days and the designated State unit and the individual 
                agree to a specific extension of time; or
                    ``(B) the designated State unit is exploring an 
                individual's abilities, capabilities, and capacity to 
                perform in work situations under paragraph (2)(B).
    ``(b) Development of an Individualized Rehabilitation Employment 
Plan.--
            ``(1) Options for developing an individualized 
        rehabilitation employment plan.--If an individual is determined 
        to be eligible for vocational rehabilitation services as 
        described in subsection (a), the designated State unit shall 
        complete the assessment for determining eligibility and 
        vocational rehabilitation needs, as appropriate, and shall 
        provide the eligible individual or the individual's 
        representative, in writing and in an appropriate mode of 
        communication, with information on the individual's options for 
        developing an individualized rehabilitation employment plan, 
        including--
                    ``(A) information on the availability of 
                assistance, to the extent determined to be appropriate 
                by the eligible individual, from a qualified vocational 
                rehabilitation counselor in developing all or part of 
                the individualized rehabilitation employment plan for 
                the individual, and the availability of technical 
                assistance in developing all or part of the 
                individualized rehabilitation employment plan for the 
                individual;
                    ``(B) a description of the full range of components 
                that shall be included in an individualized 
                rehabilitation employment plan;
                    ``(C) as appropriate--
                            ``(i) an explanation of agency guidelines 
                        and criteria associated with financial 
                        commitments concerning an individualized 
                        rehabilitation employment plan;
                            ``(ii) additional information the eligible 
                        individual requests or the designated State 
                        unit determines to be necessary; and
                            ``(iii) information on the availability of 
                        assistance in completing designated State 
                        agency forms required in developing an 
                        individualized rehabilitation employment plan; 
                        and
                    ``(D)(i) a description of the rights and remedies 
                available to such an individual including, if 
                appropriate, recourse to the processes set forth in 
                subsection (c); and
                    ``(ii) a description of the availability of a 
                client assistance program established pursuant to 
                section 112 and information about how to contact the 
                client assistance program.
            ``(2) Mandatory procedures.--
                    ``(A) Written document.--An individualized 
                rehabilitation employment plan shall be a written 
                document prepared on forms provided by the designated 
                State unit.
                    ``(B) Informed choice.--An individualized 
                rehabilitation employment plan shall be developed and 
                implemented in a manner that affords eligible 
                individuals the opportunity to exercise informed choice 
                in selecting an employment outcome, the specific 
                vocational rehabilitation services to be provided under 
                the plan, the entity that will provide the vocational 
                rehabilitation services, and the methods used to 
                procure the services, consistent with subsection (d).
                    ``(C) Signatories.--An individualized 
                rehabilitation employment plan shall be--
                            ``(i) agreed to, and signed by, such 
                        eligible individual or, as appropriate, the 
                        individual's representative; and
                            ``(ii) approved and signed by a qualified 
                        vocational rehabilitation counselor employed by 
                        the designated State unit.
                    ``(D) Copy.--A copy of the individualized 
                rehabilitation employment plan for an eligible 
                individual shall be provided to the individual or, as 
                appropriate, to the individual's representative, in 
                writing and, if appropriate, in the native language or 
                mode of communication of the individual or, as 
                appropriate, of the individual's representative.
                    ``(E) Review and amendment.--The individualized 
                rehabilitation employment plan shall be--
                            ``(i) reviewed at least annually by--
                                    ``(I) a qualified vocational 
                                rehabilitation counselor; and
                                    ``(II) the eligible individual or, 
                                as appropriate, the individual's 
                                representative; and
                            ``(ii) amended, as necessary, by the 
                        individual or, as appropriate, the individual's 
                        representative, in collaboration with a 
                        representative of the designated State agency 
                        or a qualified vocational rehabilitation 
                        counselor employed by the designated State 
                        unit, if there are substantive changes in the 
                        employment outcome, the vocational 
                        rehabilitation services to be provided, or the 
                        service providers of the services (which 
                        amendments shall not take effect until agreed 
                        to and signed by the eligible individual or, as 
                        appropriate, the individual's representative, 
                        and by a qualified vocational rehabilitation 
                        counselor employed by the designated State 
                        unit).
            ``(3) Mandatory components of an individualized 
        rehabilitation employment plan.--Regardless of the approach 
        selected by an eligible individual to develop an individualized 
        rehabilitation employment plan, an individualized 
        rehabilitation employment plan shall, at a minimum, contain 
        mandatory components consisting of--
                    ``(A) a description of the specific employment 
                outcome that is chosen by the eligible individual, 
                consistent with the unique strengths, resources, 
                priorities, concerns, abilities, capabilities, 
                interests, and informed choice of the eligible 
                individual, and, to the maximum extent appropriate, 
                results in employment in an integrated setting;
                    ``(B)(i) a description of the specific vocational 
                rehabilitation services that are--
                            ``(I) needed to achieve the employment 
                        outcome, including, as appropriate, the 
                        provision of assistive technology devices and 
                        assistive technology services, and personal 
                        assistance services, including training in the 
                        management of such services; and
                            ``(II) provided in the most integrated 
                        setting that is appropriate for the service 
                        involved and is consistent with the informed 
                        choice of the eligible individual; and
                    ``(ii) timelines for the achievement of the 
                employment outcome and for the initiation of the 
                services;
                    ``(C) a description of the entity chosen by the 
                eligible individual or, as appropriate, the 
                individual's representative, that will provide the 
                vocational rehabilitation services, and the methods 
                used to procure such services;
                    ``(D) a description of criteria to evaluate 
                progress toward achievement of the employment outcome;
                    ``(E) the terms and conditions of the 
                individualized rehabilitation employment plan, 
                including, as appropriate, information describing--
                            ``(i) the responsibilities of the 
                        designated State unit;
                            ``(ii) the responsibilities of the eligible 
                        individual, including--
                                    ``(I) the responsibilities the 
                                eligible individual will assume in 
                                relation to the employment outcome of 
                                the individual;
                                    ``(II) if applicable, the 
                                participation of the eligible 
                                individual in paying for the costs of 
                                the plan; and
                                    ``(III) the responsibility of the 
                                eligible individual with regard to 
                                applying for and securing comparable 
                                benefits as described in section 
                                101(a)(8); and
                            ``(iii) the responsibilities of other 
                        entities as the result of arrangements made 
                        pursuant to comparable services or benefits 
                        requirements as described in section 101(a)(8);
                    ``(F) for an eligible individual with the most 
                significant disabilities for whom an employment outcome 
                in a supported employment setting has been determined 
                to be appropriate, information identifying--
                            ``(i) the extended services needed by the 
                        eligible individual; and
                            ``(ii) the source of extended services or, 
                        to the extent that the source of the extended 
                        services cannot be identified at the time of 
                        the development of the individualized 
                        rehabilitation employment plan, a description 
                        of the basis for concluding that there is a 
                        reasonable expectation that such source will 
                        become available; and
                    ``(G) as determined to be necessary, a statement of 
                projected need for post-employment services.
    ``(c) Procedures.--
            ``(1) In general.--Each State shall establish procedures 
        for mediation of, and procedures for review through an 
        impartial due process hearing of, determinations made by 
        personnel of the designated State unit that affect the 
        provision of vocational rehabilitation services to applicants 
        or eligible individuals.
            ``(2) Notification.--
                    ``(A) Rights and assistance.--The procedures shall 
                provide that an applicant or an eligible individual or, 
                as appropriate, the applicant's representative or 
                individual's representative shall be notified of--
                            ``(i) the right to obtain review of 
                        determinations described in paragraph (1) in an 
                        impartial due process hearing under paragraph 
                        (5);
                            ``(ii) the right to pursue mediation with 
                        respect to the determinations under paragraph 
                        (4); and
                            ``(iii) the availability of assistance from 
                        the client assistance program under section 
                        112.
                    ``(B) Timing.--Such notification shall be provided 
                in writing--
                            ``(i) at the time an individual applies for 
                        vocational rehabilitation services provided 
                        under this title;
                            ``(ii) at the time the individualized 
                        rehabilitation employment plan for the 
                        individual is developed; and
                            ``(iii) upon reduction, suspension, or 
                        cessation of vocational rehabilitation services 
                        for the individual.
            ``(3) Evidence and representation.--The procedures required 
        under this subsection shall, at a minimum--
                    ``(A) provide an opportunity for an applicant or an 
                eligible individual, or, as appropriate, the 
                applicant's representative or individual's 
                representative, to submit at the mediation session or 
                hearing evidence and information to support the 
                position of the applicant or eligible individual; and
                    ``(B) include provisions to allow an applicant or 
                an eligible individual to be represented in the 
                mediation session or hearing by a person selected by 
                the applicant or eligible individual.
            ``(4) Mediation.--
                    ``(A) Procedures.--Each State shall ensure that 
                procedures are established and implemented under this 
                subsection to allow parties described in paragraph (1) 
                to disputes involving any determination described in 
                paragraph (1) to resolve such disputes through a 
                mediation process that, at a minimum, shall be 
                available whenever a hearing is requested under this 
                subsection.
                    ``(B) Requirements.--Such procedures shall ensure 
                that the mediation process--
                            ``(i) is voluntary on the part of the 
                        parties;
                            ``(ii) is not used to deny or delay the 
                        right of an individual to a hearing under this 
                        subsection, or to deny any other right afforded 
                        under this title; and
                            ``(iii) is conducted by a qualified and 
                        impartial mediator who is trained in effective 
                        mediation techniques.
                    ``(C) List of mediators.--The State shall maintain 
                a list of individuals who are qualified mediators and 
                knowledgeable in laws (including regulations) relating 
                to the provision of vocational rehabilitation services 
                under this title, from which the mediators described in 
                subparagraph (B) shall be selected.
                    ``(D) Cost.--The State shall bear the cost of the 
                mediation process.
                    ``(E) Scheduling.--Each session in the mediation 
                process shall be scheduled in a timely manner and shall 
                be held in a location that is convenient to the parties 
                to the dispute.
                    ``(F) Agreement.--An agreement reached by the 
                parties to the dispute in the mediation process shall 
                be set forth in a written mediation agreement.
                    ``(G) Confidentiality.--Discussions that occur 
                during the mediation process shall be confidential and 
                may not be used as evidence in any subsequent due 
                process hearing or civil proceeding. The parties to the 
                mediation process may be required to sign a 
                confidentiality pledge prior to the commencement of 
                such process.
                    ``(H) Construction.--Nothing in this subsection 
                shall be construed to preclude the parties to such a 
                dispute from informally resolving the dispute prior to 
                proceedings under this paragraph or paragraph (5), if 
                the informal process used is not used to deny or delay 
                the right of the applicant or eligible individual to a 
                hearing under this subsection or to deny any other 
                right afforded under this title.
            ``(5) Hearings.--
                    ``(A) Officer.--A due process hearing described in 
                paragraph (2) shall be conducted by an impartial 
                hearing officer who shall issue a decision based on the 
                provisions of the approved State plan, this Act 
                (including regulations implementing this Act), and 
                State regulations and policies that are consistent with 
                the Federal requirements specified in this title. The 
                officer shall provide the decision in writing to the 
                applicant or eligible individual, or, as appropriate, 
                the applicant's representative or individual's 
                representative, and to the designated State unit.
                    ``(B) List.--The designated State unit shall 
                maintain a list of qualified impartial hearing officers 
                who are knowledgeable in laws (including regulations) 
                relating to the provision of vocational rehabilitation 
                services under this title from which the officer 
                described in subparagraph (A) shall be selected. For 
                the purposes of maintaining such list, impartial 
                hearing officers shall be identified jointly by--
                            ``(i) the designated State unit; and
                            ``(ii) members of the Council or 
                        commission, as appropriate, described in 
                        section 101(a)(21).
                    ``(C) Selection.--Such an impartial hearing officer 
                shall be selected to hear a particular case relating to 
                a determination--
                            ``(i) on a random basis; or
                            ``(ii) by agreement between--
                                    ``(I) the Director of the 
                                designated State unit and the 
                                individual with a disability; or
                                    ``(II) in appropriate cases, the 
                                Director and the individual's 
                                representative.
                    ``(D) Procedures for seeking review.--A State may 
                establish procedures to enable a party involved in a 
                hearing under this paragraph to seek an impartial 
                review of the decision of the hearing officer under 
                subparagraph (A) by--
                            ``(i) the chief official of the designated 
                        State agency if the State has established both 
                        a designated State agency and a designated 
                        State unit under section 101(a)(2); or
                            ``(ii) an official from the office of the 
                        Governor.
                    ``(E) Review request.--If the State establishes 
                impartial review procedures under subparagraph (D), 
                either party may request the review of the decision of 
                the hearing officer within 20 days after the decision.
                    ``(F) Reviewing official.--The reviewing official 
                described in subparagraph (D) shall--
                            ``(i) in conducting the review, provide an 
                        opportunity for the submission of additional 
                        evidence and information relevant to a final 
                        decision concerning the matter under review;
                            ``(ii) not overturn or modify the decision 
                        of the hearing officer, or part of the 
                        decision, that supports the position of the 
                        applicant or eligible individual unless the 
                        reviewing official concludes, based on clear 
                        and convincing evidence, that the decision of 
                        the impartial hearing officer is clearly 
                        erroneous on the basis of being contrary to the 
                        approved State plan, this Act (including 
                        regulations implementing this Act) or any State 
                        regulation or policy that is consistent with 
                        the Federal requirements specified in this 
                        title; and
                            ``(iii) make a final decision with respect 
                        to the matter in a timely manner and provide 
                        such decision in writing to the applicant or 
                        eligible individual, or, as appropriate, the 
                        applicant's representative or individual's 
                        representative, and to the designated State 
                        unit, including a full report of the findings 
                        and the grounds for such decision.
                    ``(G) Finality of hearing decision.--A decision 
                made after a hearing under subparagraph (A) shall be 
                final, except that a party may request an impartial 
                review if the State has established procedures for such 
                review under subparagraph (D) and a party involved in a 
                hearing may bring a civil action under subparagraph 
                (J).
                    ``(H) Finality of review.--A decision made under 
                subparagraph (F) shall be final unless such a party 
                brings a civil action under subparagraph (J).
                    ``(I) Implementation.--If a party brings a civil 
                action under subparagraph (J) to challenge a final 
                decision of a hearing officer under subparagraph (A) or 
                to challenge a final decision of a State reviewing 
                official under subparagraph (F), the final decision 
                involved shall be implemented pending review by the 
                court.
                    ``(J) Civil action.--
                            ``(i) In general.--Any party aggrieved by a 
                        final decision described in subparagraph (I), 
                        may bring a civil action for review of such 
                        decision. The action may be brought in any 
                        State court of competent jurisdiction or in a 
                        district court of the United States of 
                        competent jurisdiction without regard to the 
                        amount in controversy.
                            ``(ii) Procedure.--In any action brought 
                        under this subparagraph, the court--
                                    ``(I) shall receive the records 
                                relating to the hearing under 
                                subparagraph (A) and the records 
                                relating to the State review under 
                                subparagraphs (D) through (F), if 
                                applicable;
                                    ``(II) shall hear additional 
                                evidence at the request of a party to 
                                the action; and
                                    ``(III) basing the decision of the 
                                court on the preponderance of the 
                                evidence, shall grant such relief as 
                                the court determines to be appropriate.
            ``(6) Hearing board.--
                    ``(A) In general.--A fair hearing board, 
                established by a State before January 1, 1985, and 
                authorized under State law to review determinations or 
                decisions under this Act, is authorized to carry out 
                the responsibilities of the impartial hearing officer 
                under this subsection.
                    ``(B) Application.--The provisions of paragraphs 
                (1), (2), and (3) that relate to due process hearings 
                do not apply, and paragraph (5) (other than 
                subparagraph (J)) does not apply, to any State to which 
                subparagraph (A) applies.
            ``(7) Impact on provision of services.--Unless the 
        individual with a disability so requests, or, in an appropriate 
        case, the individual's representative, so requests, pending a 
        decision by a mediator, hearing officer, or reviewing officer 
        under this subsection, the designated State unit shall not 
        institute a suspension, reduction, or termination of services 
        being provided for the individual, including evaluation and 
        assessment services and plan development, unless such services 
        have been obtained through misrepresentation, fraud, collusion, 
        or criminal conduct on the part of the individual, or the 
        individual's representative.
            ``(8) Information collection and report.--
                    ``(A) In general.--The Director of the designated 
                State unit shall collect information described in 
                subparagraph (B) and prepare and submit to the 
                Commissioner a report containing such information. The 
                Commissioner shall prepare a summary of the information 
                furnished under this paragraph and include the summary 
                in the annual report submitted under section 13. The 
                Commissioner shall also collect copies of the final 
                decisions of impartial hearing officers conducting 
                hearings under this subsection and State officials 
                conducting reviews under this subsection.
                    ``(B) Information.--The information required to be 
                collected under this subsection includes--
                            ``(i) a copy of the standards used by State 
                        reviewing officials for reviewing decisions 
                        made by impartial hearing officers under this 
                        subsection;
                            ``(ii) information on the number of 
                        hearings and reviews sought from the impartial 
                        hearing officers and the State reviewing 
                        officials, including the type of complaints and 
                        the issues involved;
                            ``(iii) information on the number of 
                        hearing decisions made under this subsection 
                        that were not reviewed by the State reviewing 
                        officials; and
                            ``(iv) information on the number of the 
                        hearing decisions that were reviewed by the 
                        State reviewing officials, and, based on such 
                        reviews, the number of hearing decisions that 
                        were--
                                    ``(I) sustained in favor of an 
                                applicant or eligible individual;
                                    ``(II) sustained in favor of the 
                                designated State unit;
                                    ``(III) reversed in whole or in 
                                part in favor of the applicant or 
                                eligible individual; and
                                    ``(IV) reversed in whole or in part 
                                in favor of the designated State unit.
                    ``(C) Confidentiality.--The confidentiality of 
                records of applicants and eligible individuals 
                maintained by the designated State unit shall not 
                preclude the access of the Commissioner to those 
                records for the purposes described in subparagraph (A).
    ``(d) Policies and Procedures.--Each designated State agency, in 
consultation with the State Rehabilitation Council, if the State has 
such a council, shall, consistent with section 100(a)(3)(C), develop 
and implement written policies and procedures that enable each 
individual who is an applicant for or eligible to receive vocational 
rehabilitation services under this title to exercise informed choice 
throughout the vocational rehabilitation process carried out under this 
title, including policies and procedures that require the designated 
State agency--
            ``(1) to inform each such applicant and eligible individual 
        (including students with disabilities described in section 
        101(a)(11)(D)(ii)(II) who are making the transition from 
        programs under the responsibility of an educational agency to 
        programs under the responsibility of the designated State 
        unit), through appropriate modes of communication, about the 
        availability of, and opportunities to exercise, informed 
        choice, including the availability of support services for 
        individuals with cognitive or other disabilities who require 
        assistance in exercising informed choice, throughout the 
        vocational rehabilitation process;
            ``(2) to assist applicants and eligible individuals in 
        exercising informed choice in decisions related to the 
        provision of assessment services under this title;
            ``(3) to develop and implement flexible procurement 
        policies and methods that facilitate the provision of services, 
        and that afford eligible individuals meaningful choices among 
        the methods used to procure services, under this title;
            ``(4) to provide or assist eligible individuals in 
        acquiring information that enables those individuals to 
        exercise informed choice under this title in the selection of--
                    ``(A) the employment outcome;
                    ``(B) the specific vocational rehabilitation 
                services needed to achieve the employment outcome;
                    ``(C) the entity that will provide the services;
                    ``(D) the employment setting and the settings in 
                which the services will be provided; and
                    ``(E) the methods available for procuring the 
                services; and
            ``(5) to ensure that the availability and scope of informed 
        choice provided under this section is consistent with the 
        obligations of the designated State agency under this title.

``SEC. 103. VOCATIONAL REHABILITATION SERVICES.

    ``(a) Vocational Rehabilitation Services for Individuals.--
Vocational rehabilitation services provided under this title are any 
services described in an individualized rehabilitation employment plan 
necessary to assist an individual with a disability in preparing for, 
securing, retaining, or regaining an employment outcome that is 
consistent with the strengths, resources, priorities, concerns, 
abilities, capabilities, interests, and informed choice of the 
individual, including--
            ``(1) an assessment for determining eligibility and 
        vocational rehabilitation needs by qualified personnel, 
        including, if appropriate, an assessment by personnel skilled 
        in rehabilitation technology;
            ``(2) counseling and guidance, including information and 
        support services to assist an individual in exercising informed 
        choice consistent with the provisions of section 102(d);
            ``(3) referral and other services to secure needed services 
        from other agencies through agreements developed under section 
        101(b)(11), if such services are not available under this 
        title;
            ``(4) job-related services, including job search and 
        placement assistance, job retention services, followup 
        services, and follow-along services;
            ``(5) vocational and other training services, including the 
        provision of personal and vocational adjustment services, 
        books, tools, and other training materials, except that no 
        training services provided at an institution of higher 
        education shall be paid for with funds under this title unless 
        maximum efforts have been made by the designated State unit and 
        the individual to secure grant assistance, in whole or in part, 
        from other sources to pay for such training;
            ``(6) to the extent that financial support is not readily 
        available from a source (such as through health insurance of 
        the individual or through comparable services and benefits 
        consistent with section 101(a)(8)(A)), other than the 
        designated State unit, diagnosis and treatment of physical and 
        mental impairments, including--
                    ``(A) corrective surgery or therapeutic treatment 
                necessary to correct or substantially modify a physical 
                or mental condition that constitutes a substantial 
                impediment to employment, but is of such a nature that 
                such correction or modification may reasonably be 
                expected to eliminate or reduce such impediment to 
                employment within a reasonable length of time;
                    ``(B) necessary hospitalization in connection with 
                surgery or treatment;
                    ``(C) prosthetic and orthotic devices;
                    ``(D) eyeglasses and visual services as prescribed 
                by qualified personnel who meet State licensure laws 
                and who are selected by the individual;
                    ``(E) special services (including transplantation 
                and dialysis), artificial kidneys, and supplies 
                necessary for the treatment of individuals with end-
                stage renal disease; and
                    ``(F) diagnosis and treatment for mental and 
                emotional disorders by qualified personnel who meet 
                State licensure laws;
            ``(7) maintenance for additional costs incurred while 
        participating in an assessment for determining eligibility and 
        vocational rehabilitation needs or while receiving services 
        under an individualized rehabilitation employment plan;
            ``(8) transportation, including adequate training in the 
        use of public transportation vehicles and systems, that is 
        provided in connection with the provision of any other service 
        described in this section and needed by the individual to 
        achieve an employment outcome;
            ``(9) on-the-job or other related personal assistance 
        services provided while an individual is receiving other 
        services described in this section;
            ``(10) interpreter services provided by qualified personnel 
        for individuals who are deaf or hard of hearing, and reader 
        services for individuals who are determined to be blind, after 
        an examination by qualified personnel who meet State licensure 
        laws;
            ``(11) rehabilitation teaching services, and orientation 
        and mobility services, for individuals who are blind;
            ``(12) occupational licenses, tools, equipment, and initial 
        stocks and supplies;
            ``(13) technical assistance and other consultation services 
        to conduct market analyses, develop business plans, and 
        otherwise provide resources, to the extent such resources are 
        authorized to be provided under the statewide workforce 
        investment system, to eligible individuals who are pursuing 
        self-employment or establishing a small business operation as 
        an employment outcome;
            ``(14) rehabilitation technology, including 
        telecommunications, sensory, and other technological aids and 
        devices;
            ``(15) transition services for students with disabilities 
        described in section 101(a)(11)(D)(ii)(II), that facilitate the 
        achievement of the employment outcome identified in the 
        individualized rehabilitation employment plan;
            ``(16) supported employment services;
            ``(17) services to the family of an individual with a 
        disability necessary to assist the individual to achieve an 
        employment outcome; and
            ``(18) specific post-employment services necessary to 
        assist an individual with a disability to, retain, regain, or 
        advance in employment.
    ``(b) Vocational Rehabilitation Services for Groups of 
Individuals.--Vocational rehabilitation services provided for the 
benefit of groups of individuals with disabilities may also include the 
following:
            ``(1) In the case of any type of small business operated by 
        individuals with significant disabilities the operation of 
        which can be improved by management services and supervision 
        provided by the designated State agency, the provision of such 
        services and supervision, along or together with the 
        acquisition by the designated State agency of vending 
        facilities or other equipment and initial stocks and supplies.
            ``(2) The establishment, development, or improvement of 
        community rehabilitation programs, that promise to contribute 
        substantially to the rehabilitation of a group of individuals 
        but that are not related directly to the individualized 
        rehabilitation employment plan of any 1 individual with a 
        disability. Such programs shall be used to provide services 
        that promote integration and competitive employment.
            ``(3) The use of telecommunications systems (including 
        telephone, television, satellite, radio, and other similar 
        systems) that have the potential for substantially improving 
        delivery methods of activities described in this section and 
        developing appropriate programming to meet the particular needs 
        of individuals with disabilities.
            ``(4)(A) Special services to provide nonvisual access to 
        information for individuals who are blind, including the use of 
        telecommunications, Braille, sound recordings, or other 
        appropriate media.
            ``(B) Captioned television, films, or video cassettes for 
        individuals who are deaf or hard of hearing.
            ``(C) Tactile materials for individuals who are deaf-blind.
            ``(D) Other special services that provide information 
        through tactile, vibratory, auditory, and visual media.
            ``(5) Technical assistance and support services to 
        businesses that are not subject to title I of the Americans 
        with Disabilities Act of 1990 (42 U.S.C. 12111 et seq.) and 
        that are seeking to employ individuals with disabilities.
            ``(6) Consultative and technical assistance services to 
        assist educational agencies in planning for the transition of 
        students with disabilities described in section 
        101(a)(11)(D)(i) from school to post-school activities, 
        including employment.

``SEC. 104. NON-FEDERAL SHARE FOR ESTABLISHMENT OF PROGRAM.

    ``For the purpose of determining the amount of payments to States 
for carrying out part B of this title (or to an Indian tribe under part 
C), the non-Federal share, subject to such limitations and conditions 
as may be prescribed in regulations by the Commissioner, shall include 
contributions of funds made by any private agency, organization, or 
individual to a State or local agency to assist in meeting the costs of 
establishment of a community rehabilitation program, which would be 
regarded as State or local funds except for the condition, imposed by 
the contributor, limiting use of such funds to establishment of such a 
program.

``SEC. 105. STATE REHABILITATION COUNCIL.

    ``(a) Establishment.--
            ``(1) In general.--Except as provided in section 
        101(a)(21)(A)(i), to be eligible to receive financial 
        assistance under this title a State shall establish a State 
        Rehabilitation Council (referred to in this section as the 
        `Council') in accordance with this section.
            ``(2) Separate agency for individuals who are blind.--A 
        State that designates a State agency to administer the part of 
        the State plan under which vocational rehabilitation services 
        are provided for individuals who are blind under section 
        101(a)(2)(A)(i) may establish a separate Council in accordance 
        with this section to perform the duties of such a Council with 
        respect to such State agency.
    ``(b) Composition and Appointment.--
            ``(1) Composition.--
                    ``(A) In general.--Except in the case of a separate 
                Council established under subsection (a)(2), the 
                Council shall be composed of--
                            ``(i) at least one representative of the 
                        Statewide Independent Living Council 
                        established under section 705, which 
                        representative may be the chairperson or other 
                        designee of the Council;
                            ``(ii) at least one representative of a 
                        parent training and information center 
                        established pursuant to section 682(a) of the 
                        Individuals with Disabilities Education Act (as 
                        added by section 101 of the Individuals with 
                        Disabilities Education Act Amendments of 1997; 
                        Public Law 105-17);
                            ``(iii) at least one representative of the 
                        client assistance program established under 
                        section 112;
                            ``(iv) at least one vocational 
                        rehabilitation counselor, with knowledge of and 
                        experience with vocational rehabilitation 
                        programs, who shall serve as an ex officio, 
                        nonvoting member of the Council if the 
                        counselor is an employee of the designated 
                        State agency;
                            ``(v) at least one representative of 
                        community rehabilitation program service 
                        providers;
                            ``(vi) four representatives of business, 
                        industry, and labor;
                            ``(vii) representatives of disability 
                        advocacy groups representing a cross section 
                        of--
                                    ``(I) individuals with physical, 
                                cognitive, sensory, and mental 
                                disabilities; and
                                    ``(II) individuals' representatives 
                                of individuals with disabilities who 
                                have difficulty in representing 
                                themselves or are unable due to their 
                                disabilities to represent themselves;
                            ``(viii) current or former applicants for, 
                        or recipients of, vocational rehabilitation 
                        services;
                            ``(ix) in a State in which one or more 
                        projects are carried out under section 121, at 
                        least one representative of the directors of 
                        the projects;
                            ``(x) at least one representative of the 
                        State educational agency responsible for the 
                        public education of students with disabilities 
                        who are eligible to receive services under this 
                        title and part B of the Individuals with 
                        Disabilities Education Act; and
                            ``(xi) at least one representative of the 
                        statewide workforce investment partnership.
                    ``(B) Separate council.--In the case of a separate 
                Council established under subsection (a)(2), the 
                Council shall be composed of--
                            ``(i) at least one representative described 
                        in subparagraph (A)(i);
                            ``(ii) at least one representative 
                        described in subparagraph (A)(ii);
                            ``(iii) at least one representative 
                        described in subparagraph (A)(iii);
                            ``(iv) at least one vocational 
                        rehabilitation counselor described in 
                        subparagraph (A)(iv), who shall serve as 
                        described in such subparagraph;
                            ``(v) at least one representative described 
                        in subparagraph (A)(v);
                            ``(vi) four representatives described in 
                        subparagraph (A)(vi);
                            ``(vii) at least one representative of a 
                        disability advocacy group representing 
                        individuals who are blind;
                            ``(viii) at least one individual's 
                        representative, of an individual who--
                                    ``(I) is an individual who is blind 
                                and has multiple disabilities; and
                                    ``(II) has difficulty in 
                                representing himself or herself or is 
                                unable due to disabilities to represent 
                                himself or herself;
                            ``(ix) applicants or recipients described 
                        in subparagraph (A)(viii);
                            ``(x) in a State described in subparagraph 
                        (A)(ix), at least one representative described 
                        in such subparagraph;
                            ``(xi) at least one representative 
                        described in subparagraph (A)(x); and
                            ``(xii) at least one representative 
                        described in subparagraph (A)(xi).
                    ``(C) Exception.--In the case of a separate Council 
                established under subsection (a)(2), any Council that 
                is required by State law, as in effect on the date of 
                enactment of the Rehabilitation Act Amendments of 1992, 
                to have fewer than 15 members shall be deemed to be in 
                compliance with subparagraph (B) if the Council--
                            ``(i) meets the requirements of 
                        subparagraph (B), other than the requirements 
                        of clauses (vi) and (ix) of such subparagraph; 
                        and
                            ``(ii) includes at least--
                                    ``(I) one representative described 
                                in subparagraph (B)(vi); and
                                    ``(II) one applicant or recipient 
                                described in subparagraph (B)(ix).
            ``(2) Ex officio member.--The Director of the designated 
        State unit shall be an ex officio, nonvoting member of the 
        Council.
            ``(3) Appointment.--Members of the Council shall be 
        appointed by the Governor. The Governor shall select members 
        after soliciting recommendations from representatives of 
        organizations representing a broad range of individuals with 
        disabilities and organizations interested in individuals with 
        disabilities. In selecting members, the Governor shall 
        consider, to the greatest extent practicable, the extent to 
        which minority populations are represented on the Council.
            ``(4) Qualifications.--A majority of Council members shall 
        be persons who are--
                    ``(A) individuals with disabilities described in 
                section 7(20)(A); and
                    ``(B) not employed by the designated State unit.
            ``(5) Chairperson.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the Council shall select a 
                chairperson from among the membership of the Council.
                    ``(B) Designation by governor.--In States in which 
                the chief executive officer does not have veto power 
                pursuant to State law, the Governor shall designate a 
                member of the Council to serve as the chairperson of 
                the Council or shall require the Council to so 
                designate such a member.
            ``(6) Terms of appointment.--
                    ``(A) Length of term.--Each member of the Council 
                shall serve for a term of not more than 3 years, except 
                that--
                            ``(i) a member appointed to fill a vacancy 
                        occurring prior to the expiration of the term 
                        for which a predecessor was appointed, shall be 
                        appointed for the remainder of such term; and
                            ``(ii) the terms of service of the members 
                        initially appointed shall be (as specified by 
                        the Governor) for such fewer number of years as 
                        will provide for the expiration of terms on a 
                        staggered basis.
                    ``(B) Number of terms.--No member of the Council, 
                other than a representative described in clause (iii) 
                or (ix) of paragraph (1)(A), or clause (iii) or (x) of 
                paragraph (1)(B), may serve more than two consecutive 
                full terms.
            ``(7) Vacancies.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), any vacancy occurring in the 
                membership of the Council shall be filled in the same 
                manner as the original appointment. The vacancy shall 
                not affect the power of the remaining members to 
                execute the duties of the Council.
                    ``(B) Delegation.--The Governor may delegate the 
                authority to fill such a vacancy to the remaining 
                members of the Council after making the original 
                appointment.
    ``(c) Functions of Council.--The Council shall, after consulting 
with the statewide workforce investment partnership--
            ``(1) review, analyze, and advise the designated State unit 
        regarding the performance of the responsibilities of the unit 
        under this title, particularly responsibilities relating to--
                    ``(A) eligibility (including order of selection);
                    ``(B) the extent, scope, and effectiveness of 
                services provided; and
                    ``(C) functions performed by State agencies that 
                affect or that potentially affect the ability of 
                individuals with disabilities in achieving employment 
                outcomes under this title;
            ``(2) in partnership with the designated State unit--
                    ``(A) develop, agree to, and review State goals and 
                priorities in accordance with section 101(a)(15)(C); 
                and
                    ``(B) evaluate the effectiveness of the vocational 
                rehabilitation program and submit reports of progress 
                to the Commissioner in accordance with section 
                101(a)(15)(E);
            ``(3) advise the designated State agency and the designated 
        State unit regarding activities authorized to be carried out 
        under this title, and assist in the preparation of the State 
        plan and amendments to the plan, applications, reports, needs 
        assessments, and evaluations required by this title;
            ``(4) to the extent feasible, conduct a review and analysis 
        of the effectiveness of, and consumer satisfaction with--
                    ``(A) the functions performed by the designated 
                State agency;
                    ``(B) vocational rehabilitation services provided 
                by State agencies and other public and private entities 
                responsible for providing vocational rehabilitation 
                services to individuals with disabilities under this 
                Act; and
                    ``(C) employment outcomes achieved by eligible 
                individuals receiving services under this title, 
                including the availability of health and other 
                employment benefits in connection with such employment 
                outcomes;
            ``(5) prepare and submit an annual report to the Governor 
        and the Commissioner on the status of vocational rehabilitation 
        programs operated within the State, and make the report 
        available to the public;
            ``(6) to avoid duplication of efforts and enhance the 
        number of individuals served, coordinate activities with the 
        activities of other councils within the State, including the 
        Statewide Independent Living Council established under section 
        705, the advisory panel established under section 612(a)(21) of 
        the Individual with Disabilities Education Act (as amended by 
        section 101 of the Individuals with Disabilities Education Act 
        Amendments of 1997; Public Law 105-17), the State Developmental 
        Disabilities Council described in section 124 of the 
        Developmental Disabilities Assistance and Bill of Rights Act 
        (42 U.S.C. 6024), the State mental health planning council 
        established under section 1914(a) of the Public Health Service 
        Act (42 U.S.C. 300x-4(a)), and the statewide workforce 
        investment partnership;
            ``(7) provide for coordination and the establishment of 
        working relationships between the designated State agency and 
        the Statewide Independent Living Council and centers for 
        independent living within the State; and
            ``(8) perform such other functions, consistent with the 
        purpose of this title, as the State Rehabilitation Council 
        determines to be appropriate, that are comparable to the other 
        functions performed by the Council.
    ``(d) Resources.--
            ``(1) Plan.--The Council shall prepare, in conjunction with 
        the designated State unit, a plan for the provision of such 
        resources, including such staff and other personnel, as may be 
        necessary and sufficient to carry out the functions of the 
        Council under this section. The resource plan shall, to the 
        maximum extent possible, rely on the use of resources in 
        existence during the period of implementation of the plan.
            ``(2) Resolution of disagreements.--To the extent that 
        there is a disagreement between the Council and the designated 
        State unit in regard to the resources necessary to carry out 
        the functions of the Council as set forth in this section, the 
        disagreement shall be resolved by the Governor consistent with 
        paragraph (1).
            ``(3) Supervision and evaluation.--Each Council shall, 
        consistent with State law, supervise and evaluate such staff 
        and other personnel as may be necessary to carry out its 
        functions under this section.
            ``(4) Personnel conflict of interest.--While assisting the 
        Council in carrying out its duties, staff and other personnel 
        shall not be assigned duties by the designated State unit or 
        any other agency or office of the State, that would create a 
        conflict of interest.
    ``(e) Conflict of Interest.--No member of the Council shall cast a 
vote on any matter that would provide direct financial benefit to the 
member or otherwise give the appearance of a conflict of interest under 
State law.
    ``(f) Meetings.--The Council shall convene at least 4 meetings a 
year in such places as it determines to be necessary to conduct Council 
business and conduct such forums or hearings as the Council considers 
appropriate. The meetings, hearings, and forums shall be publicly 
announced. The meetings shall be open and accessible to the general 
public unless there is a valid reason for an executive session.
    ``(g) Compensation and Expenses.--The Council may use funds 
allocated to the Council by the designated State unit under this title 
(except for funds appropriated to carry out the client assistance 
program under section 112 and funds reserved pursuant to section 110(c) 
to carry out part C) to reimburse members of the Council for reasonable 
and necessary expenses of attending Council meetings and performing 
Council duties (including child care and personal assistance services), 
and to pay compensation to a member of the Council, if such member is 
not employed or must forfeit wages from other employment, for each day 
the member is engaged in performing the duties of the Council.
    ``(h) Hearings and Forums.--The Council is authorized to hold such 
hearings and forums as the Council may determine to be necessary to 
carry out the duties of the Council.

``SEC. 106. EVALUATION STANDARDS AND PERFORMANCE INDICATORS.

    ``(a) Establishment.--
            ``(1) In general.--
                    ``(A) Establishment of standards and indicators.--
                The Commissioner shall, not later than September 30, 
                1998, establish and publish evaluation standards and 
                performance indicators for the vocational 
                rehabilitation program carried out under this title.
                    ``(B) Review and revision.--Effective September 30, 
                1998, the Commissioner shall review and, if necessary, 
                revise the evaluation standards and performance 
                indicators every 3 years. Any revisions of the 
                standards and indicators shall be developed with input 
                from State vocational rehabilitation agencies, related 
                professional and consumer organizations, recipients of 
                vocational rehabilitation services, and other 
                interested parties. Any revisions of the standards and 
                indicators shall be subject to the publication, review, 
                and comment provisions of paragraph (3).
                    ``(C) Bases.--Effective July 1, 1999, to the 
                maximum extent practicable, the standards and 
                indicators shall be consistent with the core indicators 
                of performance established under section 321(b) of the 
                Workforce Investment Partnership Act of 1998.
            ``(2) Measures.--The standards and indicators shall include 
        outcome and related measures of program performance that 
        facilitate the accomplishment of the purpose and policy of this 
        title.
            ``(3) Comment.--The standards and indicators shall be 
        developed with input from State vocational rehabilitation 
        agencies, related professional and consumer organizations, 
        recipients of vocational rehabilitation services, and other 
        interested parties. The Commissioner shall publish in the 
        Federal Register a notice of intent to regulate regarding the 
        development of proposed standards and indicators. Proposed 
        standards and indicators shall be published in the Federal 
        Register for review and comment. Final standards and indicators 
        shall be published in the Federal Register.
    ``(b) Compliance.--
            ``(1) State reports.--In accordance with regulations 
        established by the Secretary, each State shall report to the 
        Commissioner after the end of each fiscal year the extent to 
        which the State is in compliance with the standards and 
        indicators.
            ``(2) Program improvement.--
                    ``(A) Plan.--If the Commissioner determines that 
                the performance of any State is below established 
                standards, the Commissioner shall provide technical 
                assistance to the State, and the State and the 
                Commissioner shall jointly develop a program 
                improvement plan outlining the specific actions to be 
                taken by the State to improve program performance.
                    ``(B) Review.--The Commissioner shall--
                            ``(i) review the program improvement 
                        efforts of the State on a biannual basis and, 
                        if necessary, request the State to make further 
                        revisions to the plan to improve performance; 
                        and
                            ``(ii) continue to conduct such reviews and 
                        request such revisions until the State sustains 
                        satisfactory performance over a period of more 
                        than 1 year.
    ``(c) Withholding.--If the Commissioner determines that a State 
whose performance falls below the established standards has failed to 
enter into a program improvement plan, or is not complying 
substantially with the terms and conditions of such a program 
improvement plan, the Commissioner shall, consistent with subsections 
(c) and (d) of section 107, reduce or make no further payments to the 
State under this program, until the State has entered into an approved 
program improvement plan, or satisfies the Commissioner that the State 
is complying substantially with the terms and conditions of such a 
program improvement plan, as appropriate.
    ``(d) Report to Congress.--Beginning in fiscal year 1999, the 
Commissioner shall include in each annual report to the Congress under 
section 13 an analysis of program performance, including relative State 
performance, based on the standards and indicators.

``SEC. 107. MONITORING AND REVIEW.

    ``(a) In General.--
            ``(1) Duties.--In carrying out the duties of the 
        Commissioner under this title, the Commissioner shall--
                    ``(A) provide for the annual review and periodic 
                onsite monitoring of programs under this title; and
                    ``(B) determine whether, in the administration of 
                the State plan, a State is complying substantially with 
                the provisions of such plan and with evaluation 
                standards and performance indicators established under 
                section 106.
            ``(2) Procedures for reviews.--In conducting reviews under 
        this section the Commissioner shall consider, at a minimum--
                    ``(A) State policies and procedures;
                    ``(B) guidance materials;
                    ``(C) decisions resulting from hearings conducted 
                in accordance with due process;
                    ``(D) State goals established under section 
                101(a)(15) and the extent to which the State has 
                achieved such goals;
                    ``(E) plans and reports prepared under section 
                106(b);
                    ``(F) consumer satisfaction reviews and analyses 
                described in section 105(c)(4);
                    ``(G) information provided by the State 
                Rehabilitation Council established under section 105, 
                if the State has such a Council, or by the commission 
                described in section 101(a)(21)(A)(i), if the State has 
                such a commission;
                    ``(H) reports; and
                    ``(I) budget and financial management data.
            ``(3) Procedures for monitoring.--In conducting monitoring 
        under this section the Commissioner shall conduct--
                    ``(A) onsite visits, including onsite reviews of 
                records to verify that the State is following 
                requirements regarding the order of selection set forth 
                in section 101(a)(5)(A);
                    ``(B) public hearings and other strategies for 
                collecting information from the public;
                    ``(C) meetings with the State Rehabilitation 
                Council, if the State has such a Council or with the 
                commission described in section 101(a)(21)(A)(i), if 
                the State has such a commission;
                    ``(D) reviews of individual case files, including 
                individualized rehabilitation employment plans and 
                ineligibility determinations; and
                    ``(E) meetings with rehabilitation counselors and 
                other personnel.
            ``(4) Areas of inquiry.--In conducting the review and 
        monitoring, the Commissioner shall examine--
                    ``(A) the eligibility process;
                    ``(B) the provision of services, including, if 
                applicable, the order of selection;
                    ``(C) whether the personnel evaluation system 
                described in section 101(a)(7)(A)(iv) facilitates the 
                accomplishments of the program;
                    ``(D) such other areas as may be identified by the 
                public or through meetings with the State 
                Rehabilitation Council, if the State has such a Council 
                or with the commission described in section 
                101(a)(21)(A)(i), if the State has such a commission; 
                and
                    ``(E) such other areas of inquiry as the 
                Commissioner may consider appropriate.
            ``(5) Reports.--If the Commissioner issues a report 
        detailing the findings of an annual review or onsite monitoring 
        conducted under this section, the report shall be made 
        available to the State Rehabilitation Council, if the State has 
        such a Council.
    ``(b) Technical Assistance.--The Commissioner shall--
            ``(1) provide technical assistance to programs under this 
        title regarding improving the quality of vocational 
        rehabilitation services provided; and
            ``(2) provide technical assistance and establish a 
        corrective action plan for a program under this title if the 
        Commissioner finds that the program fails to comply 
        substantially with the provisions of the State plan, or with 
        evaluation standards or performance indicators established 
        under section 106, in order to ensure that such failure is 
        corrected as soon as practicable.
    ``(c) Failure To Comply With Plan.--
            ``(1) Withholding payments.--Whenever the Commissioner, 
        after providing reasonable notice and an opportunity for a 
        hearing to the State agency administering or supervising the 
        administration of the State plan approved under section 101, 
        finds that--
                    ``(A) the plan has been so changed that it no 
                longer complies with the requirements of section 
                101(a); or
                    ``(B) in the administration of the plan there is a 
                failure to comply substantially with any provision of 
                such plan or with an evaluation standard or performance 
                indicator established under section 106,
        the Commissioner shall notify such State agency that no further 
        payments will be made to the State under this title (or, in the 
        discretion of the Commissioner, that such further payments will 
        be reduced, in accordance with regulations the Commissioner 
        shall prescribe, or that further payments will not be made to 
        the State only for the projects under the parts of the State 
        plan affected by such failure), until the Commissioner is 
        satisfied there is no longer any such failure.
            ``(2) Period.--Until the Commissioner is so satisfied, the 
        Commissioner shall make no further payments to such State under 
        this title (or shall reduce payments or limit payments to 
        projects under those parts of the State plan in which there is 
        no such failure).
            ``(3) Disbursal of withheld funds.--The Commissioner may, 
        in accordance with regulations the Secretary shall prescribe, 
        disburse any funds withheld from a State under paragraph (1) to 
        any public or nonprofit private organization or agency within 
        such State or to any political subdivision of such State 
        submitting a plan meeting the requirements of section 101(a). 
        The Commissioner may not make any payment under this paragraph 
        unless the entity to which such payment is made has provided 
        assurances to the Commissioner that such entity will 
        contribute, for purposes of carrying out such plan, the same 
        amount as the State would have been obligated to contribute if 
        the State received such payment.
    ``(d) Review.--
            ``(1) Petition.--Any State that is dissatisfied with a 
        final determination of the Commissioner under section 101(b) or 
        subsection (c) may file a petition for judicial review of such 
        determination in the United States Court of Appeals for the 
        circuit in which the State is located. Such a petition may be 
        filed only within the 30-day period beginning on the date that 
        notice of such final determination was received by the State. 
        The clerk of the court shall transmit a copy of the petition to 
        the Commissioner or to any officer designated by the 
        Commissioner for that purpose. In accordance with section 2112 
        of title 28, United States Code, the Commissioner shall file 
        with the court a record of the proceeding on which the 
        Commissioner based the determination being appealed by the 
        State. Until a record is so filed, the Commissioner may modify 
        or set aside any determination made under such proceedings.
            ``(2) Submissions and determinations.--If, in an action 
        under this subsection to review a final determination of the 
        Commissioner under section 101(b) or subsection (c), the 
        petitioner or the Commissioner applies to the court for leave 
        to have additional oral submissions or written presentations 
        made respecting such determination, the court may, for good 
        cause shown, order the Commissioner to provide within 30 days 
        an additional opportunity to make such submissions and 
        presentations. Within such period, the Commissioner may revise 
        any findings of fact, modify or set aside the determination 
        being reviewed, or make a new determination by reason of the 
        additional submissions and presentations, and shall file such 
        modified or new determination, and any revised findings of 
        fact, with the return of such submissions and presentations. 
        The court shall thereafter review such new or modified 
        determination.
            ``(3) Standards of review.--
                    ``(A) In general.--Upon the filing of a petition 
                under paragraph (1) for judicial review of a 
                determination, the court shall have jurisdiction--
                            ``(i) to grant appropriate relief as 
                        provided in chapter 7 of title 5, United States 
                        Code, except for interim relief with respect to 
                        a determination under subsection (c); and
                            ``(ii) except as otherwise provided in 
                        subparagraph (B), to review such determination 
                        in accordance with chapter 7 of title 5, United 
                        States Code.
                    ``(B) Substantial evidence.--Section 706 of title 
                5, United States Code, shall apply to the review of any 
                determination under this subsection, except that the 
                standard for review prescribed by paragraph (2)(E) of 
                such section 706 shall not apply and the court shall 
                hold unlawful and set aside such determination if the 
                court finds that the determination is not supported by 
                substantial evidence in the record of the proceeding 
                submitted pursuant to paragraph (1), as supplemented by 
                any additional submissions and presentations filed 
                under paragraph (2).

``SEC. 108. EXPENDITURE OF CERTAIN AMOUNTS.

    ``(a) Expenditure.--Amounts described in subsection (b) may not be 
expended by a State for any purpose other than carrying out programs 
for which the State receives financial assistance under this title, 
under part C of title VI, or under title VII.
    ``(b) Amounts.--The amounts referred to in subsection (a) are 
amounts provided to a State under the Social Security Act (42 U.S.C. 
301 et seq.) as reimbursement for the expenditure of payments received 
by the State from allotments under section 110 of this Act.

``SEC. 109. TRAINING OF EMPLOYERS WITH RESPECT TO AMERICANS WITH 
              DISABILITIES ACT OF 1990.

    ``A State may expend payments received under section 111--
            ``(1) to carry out a program to train employers with 
        respect to compliance with the requirements of title I of the 
        Americans with Disabilities Act of 1990 (42 U.S.C. 12111 et 
        seq.); and
            ``(2) to inform employers of the existence of the program 
        and the availability of the services of the program.

           ``Part B--Basic Vocational Rehabilitation Services

                           ``state allotments

    ``Sec. 110. (a)(1) Subject to the provisions of subsection (c), for 
each fiscal year beginning before October 1, 1978, each State shall be 
entitled to an allotment of an amount bearing the same ratio to the 
amount authorized to be appropriated under section 100(b)(1) for 
allotment under this section as the product of--
            ``(A) the population of the State; and
            ``(B) the square of its allotment percentage,
bears to the sum of the corresponding products for all the States.
    ``(2)(A) For each fiscal year beginning on or after October 1, 
1978, each State shall be entitled to an allotment in an amount equal 
to the amount such State received under paragraph (1) for the fiscal 
year ending September 30, 1978, and an additional amount determined 
pursuant to subparagraph (B) of this paragraph.
    ``(B) For each fiscal year beginning on or after October 1, 1978, 
each State shall be entitled to an allotment, from any amount 
authorized to be appropriated for such fiscal year under section 
100(b)(1) for allotment under this section in excess of the amount 
appropriated under section 100(b)(1)(A) for the fiscal year ending 
September 30, 1978, in an amount equal to the sum of--
            ``(i) an amount bearing the same ratio to 50 percent of 
        such excess amount as the product of the population of the 
        State and the square of its allotment percentage bears to the 
        sum of the corresponding products for all the States; and
            ``(ii) an amount bearing the same ratio to 50 percent of 
        such excess amount as the product of the population of the 
        State and its allotment percentage bears to the sum of the 
        corresponding products for all the States.
    ``(3) The sum of the payment to any State (other than Guam, 
American Samoa, the Virgin Islands, and the Commonwealth of the 
Northern Mariana Islands) under this subsection for any fiscal year 
which is less than one-third of 1 percent of the amount appropriated 
under section 100(b)(1), or $3,000,000, whichever is greater, shall be 
increased to that amount, the total of the increases thereby required 
being derived by proportionately reducing the allotment to each of the 
remaining such States under this subsection, but with such adjustments 
as may be necessary to prevent the sum of the allotments made under 
this subsection to any such remaining State from being thereby reduced 
to less than that amount.
    ``(b)(1) Not later than forty-five days prior to the end of the 
fiscal year, the Commissioner shall determine, after reasonable 
opportunity for the submission to the Commissioner of comments by the 
State agency administering or supervising the program established under 
this title, that any payment of an allotment to a State under section 
111(a) for any fiscal year will not be utilized by such State in 
carrying out the purposes of this title.
    ``(2) As soon as practicable but not later than the end of the 
fiscal year, the Commissioner shall make such amount available for 
carrying out the purposes of this title to one or more other States to 
the extent the Commissioner determines such other State will be able to 
use such additional amount during that fiscal year or the subsequent 
fiscal year for carrying out such purposes. The Commissioner shall make 
such amount available only if such other State will be able to make 
sufficient payments from non-Federal sources to pay for the non-Federal 
share of the cost of vocational rehabilitation services under the State 
plan for the fiscal year for which the amount was appropriated.
    ``(3) For the purposes of this part, any amount made available to a 
State for any fiscal year pursuant to this subsection shall be regarded 
as an increase of such State's allotment (as determined under the 
preceding provisions of this section) for such year.
    ``(c)(1) For fiscal year 1987 and for each subsequent fiscal year, 
the Commissioner shall reserve from the amount appropriated under 
section 100(b)(1) for allotment under this section a sum, determined 
under paragraph (2), to carry out the purposes of part C.
    ``(2) The sum referred to in paragraph (1) shall be, as determined 
by the Secretary--
            ``(A) not less than three-quarters of 1 percent and not 
        more than 1.5 percent of the amount referred to in paragraph 
        (1), for fiscal year 1998; and
            ``(B) not less than 1 percent and not more than 1.5 percent 
        of the amount referred to in paragraph (1), for each of fiscal 
        years 1999 through 2004.

                          ``payments to states

    ``Sec. 111. (a)(1) Except as provided in paragraph (2), from each 
State's allotment under this part for any fiscal year, the Commissioner 
shall pay to a State an amount equal to the Federal share of the cost 
of vocational rehabilitation services under the plan for that State 
approved under section 101, including expenditures for the 
administration of the State plan.
    ``(2)(A) The total of payments under paragraph (1) to a State for a 
fiscal year may not exceed its allotment under subsection (a) of 
section 110 for such year.
    ``(B) For fiscal year 1994 and each fiscal year thereafter, the 
amount otherwise payable to a State for a fiscal year under this 
section shall be reduced by the amount by which expenditures from non-
Federal sources under the State plan under this title for the previous 
fiscal year are less than the total of such expenditures for the second 
fiscal year preceding the previous fiscal year.
    ``(C) The Commissioner may waive or modify any requirement or 
limitation under paragraphs (A) and (B) if the Commissioner determines 
that a waiver or modification is an equitable response to exceptional 
or uncontrollable circumstances affecting the State.
    ``(b) The method of computing and paying amounts pursuant to 
subsection (a) shall be as follows:
            ``(1) The Commissioner shall, prior to the beginning of 
        each calendar quarter or other period prescribed by the 
        Commissioner, estimate the amount to be paid to each State 
        under the provisions of such subsection for such period, such 
        estimate to be based on such records of the State and 
        information furnished by it, and such other investigation as 
        the Commissioner may find necessary.
            ``(2) The Commissioner shall pay, from the allotment 
        available therefor, the amount so estimated by the Commissioner 
        for such period, reduced or increased, as the case may be, by 
        any sum (not previously adjusted under this paragraph) by which 
        the Commissioner finds that the estimate of the amount to be 
        paid the State for any prior period under such subsection was 
        greater or less than the amount which should have been paid to 
        the State for such prior period under such subsection. Such 
        payment shall be made prior to audit or settlement by the 
        General Accounting Office, shall be made through the disbursing 
        facilities of the Treasury Department, and shall be made in 
        such installments as the Commissioner may determine.

                      ``client assistance program

    ``Sec. 112. (a) From funds appropriated under subsection (h), the 
Secretary shall, in accordance with this section, make grants to States 
to establish and carry out client assistance programs to provide 
assistance in informing and advising all clients and client applicants 
of all available benefits under this Act, and, upon request of such 
clients or client applicants, to assist and advocate for such clients 
or applicants in their relationships with projects, programs, and 
services provided under this Act, including assistance and advocacy in 
pursuing legal, administrative, or other appropriate remedies to ensure 
the protection of the rights of such individuals under this Act and to 
facilitate access to the services funded under this Act through 
individual and systemic advocacy. The client assistance program shall 
provide information on the available services and benefits under this 
Act and title I of the Americans with Disabilities Act of 1990 (42 
U.S.C. 12111 et seq.) to individuals with disabilities in the State, 
especially with regard to individuals with disabilities who have 
traditionally been unserved or underserved by vocational rehabilitation 
programs. In providing assistance and advocacy under this subsection 
with respect to services under this title, a client assistance program 
may provide the assistance and advocacy with respect to services that 
are directly related to facilitating the employment of the individual.
    ``(b) No State may receive payments from its allotment under this 
Act in any fiscal year unless the State has in effect not later than 
October 1, 1984, a client assistance program which--
            ``(1) has the authority to pursue legal, administrative, 
        and other appropriate remedies to ensure the protection of 
        rights of individuals with disabilities who are receiving 
        treatments, services, or rehabilitation under this Act within 
        the State; and
            ``(2) meets the requirements of designation under 
        subsection (c).
    ``(c)(1)(A) The Governor shall designate a public or private agency 
to conduct the client assistance program under this section. Except as 
provided in the last sentence of this subparagraph, the Governor shall 
designate an agency which is independent of any agency which provides 
treatment, services, or rehabilitation to individuals under this Act. 
If there is an agency in the State which has, or had, prior to the date 
of enactment of the Rehabilitation Amendments of 1984, served as a 
client assistance agency under this section and which received Federal 
financial assistance under this Act, the Governor may, in the initial 
designation, designate an agency which provides treatment, services, or 
rehabilitation to individuals with disabilities under this Act.
    ``(B)(i) The Governor may not redesignate the agency designated 
under subparagraph (A) without good cause and unless--
            ``(I) the Governor has given the agency 30 days notice of 
        the intention to make such redesignation, including 
        specification of the good cause for such redesignation and an 
        opportunity to respond to the assertion that good cause has 
        been shown;
            ``(II) individuals with disabilities or the individuals' 
        representatives have timely notice of the redesignation and 
        opportunity for public comment; and
            ``(III) the agency has the opportunity to appeal to the 
        Commissioner on the basis that the redesignation was not for 
        good cause.
    ``(ii) If, after the date of enactment of the Rehabilitation Act 
Amendments of 1998--
            ``(I) a designated State agency undergoes any change in the 
        organizational structure of the agency that results in the 
        creation of 1 or more new State agencies or departments or 
        results in the merger of the designated State agency with 1 or 
        more other State agencies or departments; and
            ``(II) an agency (including an office or other unit) within 
        the designated State agency was conducting a client assistance 
        program before the change under the last sentence of 
        subparagraph (A),
the Governor shall redesignate the agency conducting the program. In 
conducting the redesignation, the Governor shall designate to conduct 
the program an agency that is independent of any agency that provides 
treatment, services, or rehabilitation to individuals with disabilities 
under this Act.
    ``(2) In carrying out the provisions of this section, the Governor 
shall consult with the director of the State vocational rehabilitation 
agency, the head of the developmental disability protection and 
advocacy agency, and with representatives of professional and consumer 
organizations serving individuals with disabilities in the State.
    ``(3) The agency designated under this subsection shall be 
accountable for the proper use of funds made available to the agency.
    ``(d) The agency designated under subsection (c) of this section 
may not bring any class action in carrying out its responsibilities 
under this section.
    ``(e)(1)(A) The Secretary shall allot the sums appropriated for 
each fiscal year under this section among the States on the basis of 
relative population of each State, except that no State shall receive 
less than $50,000.
    ``(B) The Secretary shall allot $30,000 each to American Samoa, 
Guam, the Virgin Islands, and the Commonwealth of the Northern Mariana 
Islands.
    ``(C) For the purpose of this paragraph, the term `State' does not 
include American Samoa, Guam, the Virgin Islands, and the Commonwealth 
of the Northern Mariana Islands.
    ``(D)(i) In any fiscal year that the funds appropriated for such 
fiscal year exceed $7,500,000, the minimum allotment shall be $100,000 
for States and $45,000 for territories.
    ``(ii) For any fiscal year in which the total amount appropriated 
under subsection (h) exceeds the total amount appropriated under such 
subsection for the preceding fiscal year, the Secretary shall increase 
each of the minimum allotments under clause (i) by a percentage that 
shall not exceed the percentage increase in the total amount 
appropriated under such subsection between the preceding fiscal year 
and the fiscal year involved.
    ``(2) The amount of an allotment to a State for a fiscal year which 
the Secretary determines will not be required by the State during the 
period for which it is available for the purpose for which allotted 
shall be available for reallotment by the Secretary at appropriate 
times to other States with respect to which such a determination has 
not been made, in proportion to the original allotments of such States 
for such fiscal year, but with such proportionate amount for any of 
such other States being reduced to the extent it exceeds the sum the 
Secretary estimates such State needs and will be able to use during 
such period, and the total of such reduction shall be similarly 
reallotted among the States whose proportionate amounts were not so 
reduced. Any such amount so reallotted to a State for a fiscal year 
shall be deemed to be a part of its allotment for such fiscal year.
    ``(3) Except as specifically prohibited by or as otherwise provided 
in State law, the Secretary shall pay to the agency designated under 
subsection (c) the amount specified in the application approved under 
subsection (f).
    ``(f) No grant may be made under this section unless the State 
submits an application to the Secretary at such time, in such manner, 
and containing or accompanied by such information as the Secretary 
deems necessary to meet the requirements of this section.
    ``(g) The Secretary shall prescribe regulations applicable to the 
client assistance program which shall include the following 
requirements:
            ``(1) No employees of such programs shall, while so 
        employed, serve as staff or consultants of any rehabilitation 
        project, program, or facility receiving assistance under this 
        Act in the State.
            ``(2) Each program shall be afforded reasonable access to 
        policymaking and administrative personnel in the State and 
        local rehabilitation programs, projects, or facilities.
            ``(3)(A) Each program shall contain provisions designed to 
        assure that to the maximum extent possible alternative means of 
        dispute resolution are available for use at the discretion of 
        an applicant or client of the program prior to resorting to 
        litigation or formal adjudication to resolve a dispute arising 
        under this section.
            ``(B) In subparagraph (A), the term `alternative means of 
        dispute resolution' means any procedure, including good faith 
        negotiation, conciliation, facilitation, mediation, 
        factfinding, and arbitration, and any combination of 
        procedures, that is used in lieu of litigation in a court or 
        formal adjudication in an administrative forum, to resolve a 
        dispute arising under this section.
            ``(4) For purposes of any periodic audit, report, or 
        evaluation of the performance of a client assistance program 
        under this section, the Secretary shall not require such a 
        program to disclose the identity of, or any other personally 
        identifiable information related to, any individual requesting 
        assistance under such program.
    ``(h) There are authorized to be appropriated such sums as may be 
necessary for fiscal years 1998 through 2004 to carry out the 
provisions of this section.

      ``Part C--American Indian Vocational Rehabilitation Services

              ``vocational rehabilitation services grants

    ``Sec. 121. (a) The Commissioner, in accordance with the provisions 
of this part, may make grants to the governing bodies of Indian tribes 
located on Federal and State reservations (and consortia of such 
governing bodies) to pay 90 percent of the costs of vocational 
rehabilitation services for American Indians who are individuals with 
disabilities residing on such reservations. The non-Federal share of 
such costs may be in cash or in kind, fairly valued, and the 
Commissioner may waive such non-Federal share requirement in order to 
carry out the purposes of this Act.
    ``(b)(1) No grant may be made under this part for any fiscal year 
unless an application therefor has been submitted to and approved by 
the Commissioner. The Commissioner may not approve an application 
unless the application--
            ``(A) is made at such time, in such manner, and contains 
        such information as the Commissioner may require;
            ``(B) contains assurances that the rehabilitation services 
        provided under this part to American Indians who are 
        individuals with disabilities residing on a reservation in a 
        State shall be, to the maximum extent feasible, comparable to 
        rehabilitation services provided under this title to other 
        individuals with disabilities residing in the State and that, 
        where appropriate, may include services traditionally used by 
        Indian tribes; and
            ``(C) contains assurances that the application was 
        developed in consultation with the designated State unit of the 
        State.
    ``(2) The provisions of sections 5, 6, 7, and 102(a) of the Indian 
Self-Determination and Education Assistance Act shall be applicable to 
any application submitted under this part. For purposes of this 
paragraph, any reference in any such provision to the Secretary of 
Education or to the Secretary of the Interior shall be considered to be 
a reference to the Commissioner.
    ``(3) Any application approved under this part shall be effective 
for not more than 60 months, except as determined otherwise by the 
Commissioner pursuant to prescribed regulations. The State shall 
continue to provide vocational rehabilitation services under its State 
plan to American Indians residing on a reservation whenever such State 
includes any such American Indians in its State population under 
section 110(a)(1).
    ``(4) In making grants under this part, the Secretary shall give 
priority consideration to applications for the continuation of programs 
which have been funded under this part.
    ``(5) Nothing in this section may be construed to authorize a 
separate service delivery system for Indian residents of a State who 
reside in non-reservation areas.
    ``(c) The term `reservation' includes Indian reservations, public 
domain Indian allotments, former Indian reservations in Oklahoma, and 
land held by incorporated Native groups, regional corporations, and 
village corporations under the provisions of the Alaska Native Claims 
Settlement Act.

    ``Part D--Vocational Rehabilitation Services Client Information

``SEC. 131. DATA SHARING.

    ``(a) In General.--
            ``(1) Memorandum of understanding.--The Secretary of 
        Education and the Secretary of Health and Human Services shall 
        enter into a memorandum of understanding for the purposes of 
        exchanging data of mutual importance--
                    ``(A) that concern clients of designated State 
                agencies; and
                    ``(B) that are data maintained either by--
                            ``(i) the Rehabilitation Services 
                        Administration, as required by section 13; or
                            ``(ii) the Social Security Administration, 
                        from its Summary Earnings and Records and 
                        Master Beneficiary Records.
            ``(2) Labor market information.--The Secretary of Labor 
        shall provide the Commissioner with labor market information 
        that facilitates evaluation by the Commissioner of the program 
        carried out under part B, and allows the Commissioner to 
        compare the progress of individuals with disabilities who are 
        assisted under the program in securing, retaining, regaining, 
        and advancing in employment with the progress made by 
        individuals who are assisted under title III of the Workforce 
        Investment Partnership Act of 1998.
    ``(b) Treatment of Information.--For purposes of the exchange 
described in subsection (a)(1), the data described in subsection 
(a)(1)(B)(ii) shall not be considered return information (as defined in 
section 6103(b)(2) of the Internal Revenue Code of 1986) and, as 
appropriate, the confidentiality of all client information shall be 
maintained by the Rehabilitation Services Administration and the Social 
Security Administration.''.

SEC. 605. RESEARCH AND TRAINING.

    Title II of the Rehabilitation Act of 1973 (29 U.S.C. 760 et seq.) 
is amended to read as follows:

                   ``TITLE II--RESEARCH AND TRAINING

                        ``declaration of purpose

    ``Sec. 200. The purpose of this title is to--
            ``(1) provide for research, demonstration projects, 
        training, and related activities to maximize the full inclusion 
        and integration into society, employment, independent living, 
        family support, and economic and social self-sufficiency of 
        individuals with disabilities of all ages, with particular 
        emphasis on improving the effectiveness of services authorized 
        under this Act;
            ``(2) provide for a comprehensive and coordinated approach 
        to the support and conduct of such research, demonstration 
        projects, training, and related activities and to ensure that 
        the approach is in accordance with the 5-year plan developed 
        under section 202(h);
            ``(3) promote the transfer of rehabilitation technology to 
        individuals with disabilities through research and 
        demonstration projects relating to--
                    ``(A) the procurement process for the purchase of 
                rehabilitation technology;
                    ``(B) the utilization of rehabilitation technology 
                on a national basis;
                    ``(C) specific adaptations or customizations of 
                products to enable individuals with disabilities to 
                live more independently; and
                    ``(D) the development or transfer of assistive 
                technology;
            ``(4) ensure the widespread distribution, in usable 
        formats, of practical scientific and technological 
        information--
                    ``(A) generated by research, demonstration 
                projects, training, and related activities; and
                    ``(B) regarding state-of-the-art practices, 
                improvements in the services authorized under this Act, 
                rehabilitation technology, and new knowledge regarding 
                disabilities,
        to rehabilitation professionals, individuals with disabilities, 
        and other interested parties, including the general public;
            ``(5) identify effective strategies that enhance the 
        opportunities of individuals with disabilities to engage in 
        employment, including employment involving telecommuting and 
        self-employment; and
            ``(6) increase opportunities for researchers who are 
        members of traditionally underserved populations, including 
        researchers who are members of minority groups and researchers 
        who are individuals with disabilities.

                   ``authorization of appropriations

    ``Sec. 201. (a) There are authorized to be appropriated--
            ``(1) for the purpose of providing for the expenses of the 
        National Institute on Disability and Rehabilitation Research 
        under section 202, which shall include the expenses of the 
        Rehabilitation Research Advisory Council under section 205, and 
        shall not include the expenses of such Institute to carry out 
        section 204, such sums as may be necessary for each of fiscal 
        years 1998 through 2004; and
            ``(2) to carry out section 204, such sums as may be 
        necessary for each of fiscal years 1998 through 2004.
    ``(b) Funds appropriated under this title shall remain available 
until expended.

     ``national institute on disability and rehabilitation research

    ``Sec. 202. (a)(1) There is established within the Department of 
Education a National Institute on Disability and Rehabilitation 
Research (hereinafter in this title referred to as the `Institute'), 
which shall be headed by a Director (hereinafter in this title referred 
to as the `Director'), in order to--
            ``(A) promote, coordinate, and provide for--
                    ``(i) research;
                    ``(ii) demonstration projects and training; and
                    ``(iii) related activities,
        with respect to individuals with disabilities;
            ``(B) more effectively carry out activities through the 
        programs under section 204 and activities under this section;
            ``(C) widely disseminate information from the activities 
        described in subparagraphs (A) and (B); and
            ``(D) provide leadership in advancing the quality of life 
        of individuals with disabilities.
    ``(2) In the performance of the functions of the office, the 
Director shall be directly responsible to the Secretary or to the same 
Under Secretary or Assistant Secretary of the Department of Education 
to whom the Commissioner is responsible under section 3(a).
    ``(b) The Director, through the Institute, shall be responsible 
for--
            ``(1) administering the programs described in section 204 
        and activities under this section;
            ``(2) widely disseminating findings, conclusions, and 
        recommendations, resulting from research, demonstration 
        projects, training, and related activities (referred to in this 
        title as `covered activities') funded by the Institute, to--
                    ``(A) other Federal, State, tribal, and local 
                public agencies;
                    ``(B) private organizations engaged in research 
                relating to rehabilitation or providing rehabilitation 
                services;
                    ``(C) rehabilitation practitioners; and
                    ``(D) individuals with disabilities and the 
                individuals' representatives;
            ``(3) coordinating, through the Interagency Committee 
        established by section 203 of this Act, all Federal programs 
        and policies relating to research in rehabilitation;
            ``(4) widely disseminating educational materials and 
        research results, concerning ways to maximize the full 
        inclusion and integration into society, employment, independent 
        living, family support, and economic and social self-
        sufficiency of individuals with disabilities, to--
                    ``(A) public and private entities, including--
                            ``(i) elementary and secondary schools (as 
                        defined in section 14101 of the Elementary and 
                        Secondary Education Act of 1965; and
                            ``(ii) institutions of higher education;
                    ``(B) rehabilitation practitioners;
                    ``(C) individuals with disabilities (especially 
                such individuals who are members of minority groups or 
                of populations that are unserved or underserved by 
                programs under this Act); and
                    ``(D) the individuals' representatives for the 
                individuals described in subparagraph (C);
            ``(5)(A) conducting an education program to inform the 
        public about ways of providing for the rehabilitation of 
        individuals with disabilities, including information relating 
        to--
                    ``(i) family care;
                    ``(ii) self-care; and
                    ``(iii) assistive technology devices and assistive 
                technology services; and
            ``(B) as part of the program, disseminating engineering 
        information about assistive technology devices;
            ``(6) conducting conferences, seminars, and workshops 
        (including in-service training programs and programs for 
        individuals with disabilities) concerning advances in 
        rehabilitation research and rehabilitation technology 
        (including advances concerning the selection and use of 
        assistive technology devices and assistive technology 
        services), pertinent to the full inclusion and integration into 
        society, employment, independent living, family support, and 
        economic and social self-sufficiency of individuals with 
        disabilities;
            ``(7) taking whatever action is necessary to keep the 
        Congress fully and currently informed with respect to the 
        implementation and conduct of programs and activities carried 
        out under this title, including dissemination activities;
            ``(8) producing, in conjunction with the Department of 
        Labor, the National Center for Health Statistics, the Bureau of 
        the Census, the Health Care Financing Administration, the 
        Social Security Administration, the Bureau of Indian Affairs, 
        the Indian Health Service, and other Federal departments and 
        agencies, as may be appropriate, statistical reports and 
        studies on the employment, health, income, and other 
        demographic characteristics of individuals with disabilities, 
        including information on individuals with disabilities who live 
        in rural or inner-city settings, with particular attention 
        given to underserved populations, and widely disseminating such 
        reports and studies to rehabilitation professionals, 
        individuals with disabilities, the individuals' 
        representatives, and others to assist in the planning, 
        assessment, and evaluation of vocational and other 
        rehabilitation services for individuals with disabilities;
            ``(9) conducting research on consumer satisfaction with 
        vocational rehabilitation services for the purpose of 
        identifying effective rehabilitation programs and policies that 
        promote the independence of individuals with disabilities and 
        achievement of long-term vocational goals;
            ``(10) conducting research to examine the relationship 
        between the provision of specific services and successful, 
        sustained employment outcomes, including employment outcomes 
        involving self-employment; and
            ``(11) coordinating activities with the Attorney General 
        regarding the provision of information, training, or technical 
        assistance regarding the Americans with Disabilities Act of 
        1990 (42 U.S.C. 12101 et seq.) to ensure consistency with the 
        plan for technical assistance required under section 506 of 
        such Act (42 U.S.C. 12206).
    ``(c)(1) The Director, acting through the Institute or 1 or more 
entities funded by the Institute, shall provide for the development and 
dissemination of models to address consumer-driven information needs 
related to assistive technology devices and assistive technology 
services.
    ``(2) The development and dissemination of models may include--
            ``(A) convening groups of individuals with disabilities, 
        family members and advocates of such individuals, commercial 
        producers of assistive technology, and entities funded by the 
        Institute to develop, assess, and disseminate knowledge about 
        information needs related to assistive technology;
            ``(B) identifying the types of information regarding 
        assistive technology devices and assistive technology services 
        that individuals with disabilities find especially useful;
            ``(C) evaluating current models, and developing new models, 
        for transmitting the information described in subparagraph (B) 
        to consumers and to commercial producers of assistive 
        technology; and
            ``(D) disseminating through 1 or more entities funded by 
        the Institute, the models described in subparagraph (C) and 
        findings regarding the information described in subparagraph 
        (B) to consumers and commercial producers of assistive 
        technology.
    ``(d)(1) The Director of the Institute shall be appointed by the 
Secretary. The Director shall be an individual with substantial 
experience in rehabilitation and in research administration. The 
Director shall be compensated at the rate payable for level V of the 
Executive Schedule under section 5316 of title 5, United States Code. 
The Director shall not delegate any of his functions to any officer who 
is not directly responsible to the Director.
    ``(2) There shall be a Deputy Director of the Institute (referred 
to in this section as the `Deputy Director') who shall be appointed by 
the Secretary. The Deputy Director shall be an individual with 
substantial experience in rehabilitation and in research 
administration. The Deputy Director shall be compensated at the rate of 
pay for level 4 of the Senior Executive Service Schedule under section 
5382 of title 5, United States Code, and shall act for the Director 
during the absence of the Director or the inability of the Director to 
perform the essential functions of the job, exercising such powers as 
the Director may prescribe. In the case of any vacancy in the office of 
the Director, the Deputy Director shall serve as Director until a 
Director is appointed under paragraph (1). The position created by this 
paragraph shall be a Senior Executive Service position, as defined in 
section 3132 of title 5, United States Code.
    ``(3) The Director, subject to the approval of the President, may 
appoint, for terms not to exceed three years, without regard to the 
provisions of title 5, United States Code, governing appointment in the 
competitive service, and may compensate, without regard to the 
provisions of chapter 51 and subchapter III of chapter 53 of such title 
relating to classification and General Schedule pay rates, such 
technical and professional employees of the Institute as the Director 
determines to be necessary to accomplish the functions of the Institute 
and also appoint and compensate without regard to such provisions, in a 
number not to exceed one-fifth of the number of full-time, regular 
technical and professional employees of the Institute.
    ``(4) The Director may obtain the services of consultants, without 
regard to the provisions of title 5, United States Code, governing 
appointments in the competitive service.
    ``(e) The Director, pursuant to regulations which the Secretary 
shall prescribe, may establish and maintain fellowships with such 
stipends and allowances, including travel and subsistence expenses 
provided for under title 5, United States Code, as the Director 
considers necessary to procure the assistance of highly qualified 
research fellows, including individuals with disabilities, from the 
United States and foreign countries.
    ``(f)(1) The Director shall, pursuant to regulations that the 
Secretary shall prescribe, provide for scientific peer review of all 
applications for financial assistance for research, training, and 
demonstration projects over which the Director has authority. The 
Director shall provide for the review by utilizing, to the maximum 
extent possible, appropriate peer review panels established within the 
Institute. The panels shall be standing panels if the grant period 
involved or the duration of the program involved is not more than 3 
years. The panels shall be composed of individuals who are not Federal 
employees, who are scientists or other experts in the rehabilitation 
field (including the independent living field), including knowledgeable 
individuals with disabilities, and the individuals' representatives, 
and who are competent to review applications for the financial 
assistance.
    ``(2) The Federal Advisory Committee Act (5 U.S.C. App.) shall not 
apply to the panels.
    ``(3) The Director shall solicit nominations for such panels from 
the public and shall publish the names of the individuals selected. 
Individuals comprising each panel shall be selected from a pool of 
qualified individuals to facilitate knowledgeable, cost-effective 
review.
    ``(4) In providing for such scientific peer review, the Secretary 
shall provide for training, as necessary and appropriate, to facilitate 
the effective participation of those individuals selected to 
participate in such review.
    ``(g) Not less than 90 percent of the funds appropriated under this 
title for any fiscal year shall be expended by the Director to carry 
out activities under this title through grants, contracts, or 
cooperative agreements. Up to 10 percent of the funds appropriated 
under this title for any fiscal year may be expended directly for the 
purpose of carrying out the functions of the Director under this 
section.
    ``(h)(1) The Director shall--
            ``(A) by October 1, 1998 and every fifth October 1 
        thereafter, prepare and publish in the Federal Register for 
        public comment a draft of a 5-year plan that outlines 
        priorities for rehabilitation research, demonstration projects, 
        training, and related activities and explains the basis for 
        such priorities;
            ``(B) by June 1, 1999, and every fifth June 1 thereafter, 
        after considering public comments, submit the plan in final 
        form to the appropriate committees of Congress;
            ``(C) at appropriate intervals, prepare and submit 
        revisions in the plan to the appropriate committees of 
        Congress; and
            ``(D) annually prepare and submit progress reports on the 
        plan to the appropriate committees of Congress.
    ``(2) Such plan shall--
            ``(A) identify any covered activity that should be 
        conducted under this section and section 204 respecting the 
        full inclusion and integration into society of individuals with 
        disabilities, especially in the area of employment;
            ``(B) determine the funding priorities for covered 
        activities to be conducted under this section and section 204;
            ``(C) specify appropriate goals and timetables for covered 
        activities to be conducted under this section and section 204;
            ``(D) be developed by the Director--
                    ``(i) after consultation with the Rehabilitation 
                Research Advisory Council established under section 
                205;
                    ``(ii) in coordination with the Commissioner;
                    ``(iii) after consultation with the National 
                Council on Disability established under title IV, the 
                Secretary of Education, officials responsible for the 
                administration of the Developmental Disabilities 
                Assistance and Bill of Rights Act (42 U.S.C. 6000 et 
                seq.), and the Interagency Committee on Disability 
                Research established under section 203; and
                    ``(iv) after full consideration of the input of 
                individuals with disabilities and the individuals' 
                representatives, organizations representing individuals 
                with disabilities, providers of services furnished 
                under this Act, researchers in the rehabilitation 
                field, and any other persons or entities the Director 
                considers to be appropriate;
            ``(E) specify plans for widespread dissemination of the 
        results of covered activities, in accessible formats, to 
        rehabilitation practitioners, individuals with disabilities, 
        and the individuals' representatives; and
            ``(F) specify plans for widespread dissemination of the 
        results of covered activities that concern individuals with 
        disabilities who are members of minority groups or of 
        populations that are unserved or underserved by programs 
        carried out under this Act.
    ``(i) In order to promote cooperation among Federal departments and 
agencies conducting research programs, the Director shall consult with 
the administrators of such programs, and with the Interagency Committee 
established by section 203, regarding the design of research projects 
conducted by such entities and the results and applications of such 
research.
    ``(j)(1) The Director shall take appropriate actions to provide for 
a comprehensive and coordinated research program under this title. In 
providing such a program, the Director may undertake joint activities 
with other Federal entities engaged in research and with appropriate 
private entities. Any Federal entity proposing to establish any 
research project related to the purposes of this Act shall consult, 
through the Interagency Committee established by section 203, with the 
Director as Chairperson of such Committee and provide the Director with 
sufficient prior opportunity to comment on such project.
    ``(2) Any person responsible for administering any program of the 
National Institutes of Health, the Department of Veterans Affairs, the 
National Science Foundation, the National Aeronautics and Space 
Administration, the Office of Special Education and Rehabilitative 
Services, or of any other Federal entity, shall, through the 
Interagency Committee established by section 203, consult and cooperate 
with the Director in carrying out such program if the program is 
related to the purposes of this title.
    ``(k) The Director shall make grants to institutions of higher 
education for the training of rehabilitation researchers, including 
individuals with disabilities, with particular attention to research 
areas that support the implementation and objectives of this Act and 
that improve the effectiveness of services authorized under this Act.

                        ``interagency committee

    ``Sec. 203. (a)(1) In order to promote coordination and cooperation 
among Federal departments and agencies conducting rehabilitation 
research programs, there is established within the Federal Government 
an Interagency Committee on Disability Research (hereinafter in this 
section referred to as the `Committee'), chaired by the Director and 
comprised of such members as the President may designate, including the 
following (or their designees): the Director, the Commissioner of the 
Rehabilitation Services Administration, the Assistant Secretary for 
Special Education and Rehabilitative Services, the Secretary of 
Education, the Secretary of Veterans Affairs, the Director of the 
National Institutes of Health, the Director of the National Institute 
of Mental Health, the Administrator of the National Aeronautics and 
Space Administration, the Secretary of Transportation, the Assistant 
Secretary of the Interior for Indian Affairs, the Director of the 
Indian Health Service, and the Director of the National Science 
Foundation.
    ``(2) The Committee shall meet not less than four times each year.
    ``(b) After receiving input from individuals with disabilities and 
the individuals' representatives, the Committee shall identify, assess, 
and seek to coordinate all Federal programs, activities, and projects, 
and plans for such programs, activities, and projects with respect to 
the conduct of research related to rehabilitation of individuals with 
disabilities.
    ``(c) The Committee shall annually submit to the President and to 
the appropriate committees of the Congress a report making such 
recommendations as the Committee deems appropriate with respect to 
coordination of policy and development of objectives and priorities for 
all Federal programs relating to the conduct of research related to 
rehabilitation of individuals with disabilities.

                ``research and other covered activities

    ``Sec. 204. (a)(1) To the extent consistent with priorities 
established in the 5-year plan described in section 202(h), the 
Director may make grants to and contracts with States and public or 
private agencies and organizations, including institutions of higher 
education, Indian tribes, and tribal organizations, to pay part of the 
cost of projects for the purpose of planning and conducting research, 
demonstration projects, training, and related activities, the purposes 
of which are to develop methods, procedures, and rehabilitation 
technology, that maximize the full inclusion and integration into 
society, employment, independent living, family support, and economic 
and social self-sufficiency of individuals with disabilities, 
especially individuals with the most significant disabilities, and 
improve the effectiveness of services authorized under this Act.
    ``(2)(A) In carrying out this section, the Director shall emphasize 
projects that support the implementation of titles I, III, V, VI, and 
VII, including projects addressing the needs described in the State 
plans submitted under section 101 or 704 by State agencies.
    ``(B) Such projects, as described in the State plans submitted by 
State agencies, may include--
            ``(i) medical and other scientific, technical, 
        methodological, and other investigations into the nature of 
        disability, methods of analyzing it, and restorative 
        techniques, including basic research where related to 
        rehabilitation techniques or services;
            ``(ii) studies and analysis of industrial, vocational, 
        social, recreational, psychiatric, psychological, economic, and 
        other factors affecting rehabilitation of individuals with 
        disabilities;
            ``(iii) studies and analysis of special problems of 
        individuals who are homebound and individuals who are 
        institutionalized;
            ``(iv) studies, analyses, and demonstrations of 
        architectural and engineering design adapted to meet the 
        special needs of individuals with disabilities;
            ``(v) studies, analyses, and other activities related to 
        supported employment;
            ``(vi) related activities which hold promise of increasing 
        knowledge and improving methods in the rehabilitation of 
        individuals with disabilities and individuals with the most 
        significant disabilities, particularly individuals with 
        disabilities, and individuals with the most significant 
        disabilities, who are members of populations that are unserved 
        or underserved by programs under this Act; and
            ``(vii) studies, analyses, and other activities related to 
        job accommodations, including the use of rehabilitation 
        engineering and assistive technology.
    ``(b)(1) In addition to carrying out projects under subsection (a), 
the Director may make grants under this subsection (referred to in this 
subsection as `research grants') to pay part or all of the cost of the 
research or other specialized covered activities described in 
paragraphs (2) through (18). A research grant made under any of 
paragraphs (2) through (18) may only be used in a manner consistent 
with priorities established in the 5-year plan described in section 
202(h).
    ``(2)(A) Research grants may be used for the establishment and 
support of Rehabilitation Research and Training Centers, for the 
purpose of providing an integrated program of research, which Centers 
shall--
            ``(i) be operated in collaboration with institutions of 
        higher education or providers of rehabilitation services or 
        other appropriate services; and
            ``(ii) serve as centers of national excellence and national 
        or regional resources for providers and individuals with 
        disabilities and the individuals' representatives.
    ``(B) The Centers shall conduct research and training activities 
by--
            ``(i) conducting coordinated and advanced programs of 
        research in rehabilitation targeted toward the production of 
        new knowledge that will improve rehabilitation methodology and 
        service delivery systems, alleviate or stabilize disabling 
        conditions, and promote maximum social and economic 
        independence of individuals with disabilities, especially 
        promoting the ability of the individuals to prepare for, 
        secure, retain, regain, or advance in employment;
            ``(ii) providing training (including graduate, pre-service, 
        and in-service training) to assist individuals to more 
        effectively provide rehabilitation services;
            ``(iii) providing training (including graduate, pre-
        service, and in-service training) for rehabilitation research 
        personnel and other rehabilitation personnel; and
            ``(iv) serving as an informational and technical assistance 
        resource to providers, individuals with disabilities, and the 
        individuals' representatives, through conferences, workshops, 
        public education programs, in-service training programs, and 
        similar activities.
    ``(C) The research to be carried out at each such Center may 
include--
            ``(i) basic or applied medical rehabilitation research;
            ``(ii) research regarding the psychological and social 
        aspects of rehabilitation, including disability policy;
            ``(iii) research related to vocational rehabilitation;
            ``(iv) continuation of research that promotes the 
        emotional, social, educational, and functional growth of 
        children who are individuals with disabilities;
            ``(v) continuation of research to develop and evaluate 
        interventions, policies, and services that support families of 
        those children and adults who are individuals with 
        disabilities; and
            ``(vi) continuation of research that will improve services 
        and policies that foster the productivity, independence, and 
        social integration of individuals with disabilities, and enable 
        individuals with disabilities, including individuals with 
        mental retardation and other developmental disabilities, to 
        live in their communities.
    ``(D) Training of students preparing to be rehabilitation personnel 
shall be an important priority for such a Center.
    ``(E) The Director shall make grants under this paragraph to 
establish and support both comprehensive centers dealing with multiple 
disabilities and centers primarily focused on particular disabilities.
    ``(F) Grants made under this paragraph may be used to provide funds 
for services rendered by such a Center to individuals with disabilities 
in connection with the research and training activities.
    ``(G) Grants made under this paragraph may be used to provide 
faculty support for teaching--
            ``(i) rehabilitation-related courses of study for credit; 
        and
            ``(ii) other courses offered by the Centers, either 
        directly or through another entity.
    ``(H) The research and training activities conducted by such a 
Center shall be conducted in a manner that is accessible to and usable 
by individuals with disabilities.
    ``(I) The Director shall encourage the Centers to develop practical 
applications for the findings of the research of the Centers.
    ``(J) In awarding grants under this paragraph, the Director shall 
take into consideration the location of any proposed Center and the 
appropriate geographic and regional allocation of such Centers.
    ``(K) To be eligible to receive a grant under this paragraph, each 
such institution or provider described in subparagraph (A) shall--
            ``(i) be of sufficient size, scope, and quality to 
        effectively carry out the activities in an efficient manner 
        consistent with appropriate State and Federal law; and
            ``(ii) demonstrate the ability to carry out the training 
        activities either directly or through another entity that can 
        provide such training.
    ``(L) The Director shall make grants under this paragraph for 
periods of 5 years, except that the Director may make a grant for a 
period of less than 5 years if--
            ``(i) the grant is made to a new recipient; or
            ``(ii) the grant supports new or innovative research.
    ``(M) Grants made under this paragraph shall be made on a 
competitive basis. To be eligible to receive a grant under this 
paragraph, a prospective grant recipient shall submit an application to 
the Director at such time, in such manner, and containing such 
information as the Director may require.
    ``(N) In conducting scientific peer review under section 202(f) of 
an application for the renewal of a grant made under this paragraph, 
the peer review panel shall take into account the past performance of 
the applicant in carrying out the grant and input from individuals with 
disabilities and the individuals' representatives.
    ``(O) An institution or provider that receives a grant under this 
paragraph to establish such a Center may not collect more than 15 
percent of the amount of the grant received by the Center in indirect 
cost charges.
    ``(3)(A) Research grants may be used for the establishment and 
support of Rehabilitation Engineering Research Centers, operated by or 
in collaboration with institutions of higher education or nonprofit 
organizations, to conduct research or demonstration activities, and 
training activities, regarding rehabilitation technology, including 
rehabilitation engineering, assistive technology devices, and assistive 
technology services, for the purposes of enhancing opportunities for 
better meeting the needs of, and addressing the barriers confronted by, 
individuals with disabilities in all aspects of their lives.
    ``(B) In order to carry out the purposes set forth in subparagraph 
(A), such a Center shall carry out the research or demonstration 
activities by--
            ``(i) developing and disseminating innovative methods of 
        applying advanced technology, scientific achievement, and 
        psychological and social knowledge to--
                    ``(I) solve rehabilitation problems and remove 
                environmental barriers through planning and conducting 
                research, including cooperative research with public or 
                private agencies and organizations, designed to produce 
                new scientific knowledge, and new or improved methods, 
                equipment, and devices; and
                    ``(II) study new or emerging technologies, 
                products, or environments, and the effectiveness and 
                benefits of such technologies, products, or 
                environments;
            ``(ii) demonstrating and disseminating--
                    ``(I) innovative models for the delivery, to rural 
                and urban areas, of cost-effective rehabilitation 
                technology services that promote utilization of 
                assistive technology devices; and
                    ``(II) other scientific research to assist in 
                meeting the employment and independent living needs of 
                individuals with significant disabilities; or
            ``(iii) conducting research or demonstration activities 
        that facilitate service delivery systems change by 
        demonstrating, evaluating, documenting, and disseminating--
                    ``(I) consumer responsive and individual and 
                family-centered innovative models for the delivery to 
                both rural and urban areas, of innovative cost-
                effective rehabilitation technology services that 
                promote utilization of rehabilitation technology; and
                    ``(II) other scientific research to assist in 
                meeting the employment and independent living needs of, 
                and addressing the barriers confronted by, individuals 
                with disabilities, including individuals with 
                significant disabilities.
    ``(C) To the extent consistent with the nature and type of research 
or demonstration activities described in subparagraph (B), each Center 
established or supported through a grant made available under this 
paragraph shall--
            ``(i) cooperate with programs established under the 
        Technology-Related Assistance for Individuals With Disabilities 
        Act of 1988 (29 U.S.C. 2201 et seq.) and other regional and 
        local programs to provide information to individuals with 
        disabilities and the individuals' representatives to--
                    ``(I) increase awareness and understanding of how 
                rehabilitation technology can address their needs; and
                    ``(II) increase awareness and understanding of the 
                range of options, programs, services, and resources 
                available, including financing options for the 
                technology and services covered by the area of focus of 
                the Center;
            ``(ii) provide training opportunities to individuals, 
        including individuals with disabilities, to become researchers 
        of rehabilitation technology and practitioners of 
        rehabilitation technology in conjunction with institutions of 
        higher education and nonprofit organizations; and
            ``(iii) respond, through research or demonstration 
        activities, to the needs of individuals with all types of 
        disabilities who may benefit from the application of technology 
        within the area of focus of the Center.
    ``(D)(i) In establishing Centers to conduct the research or 
demonstration activities described in subparagraph (B)(iii), the 
Director may establish one Center in each of the following areas of 
focus:
            ``(I) Early childhood services, including early 
        intervention and family support.
            ``(II) Education at the elementary and secondary levels, 
        including transition from school to postschool activities.
            ``(III) Employment, including supported employment, and 
        reasonable accommodations and the reduction of environmental 
        barriers as required by the Americans with Disabilities Act of 
        1990 (42 U.S.C. 12101 et seq.) and title V.
            ``(IV) Independent living, including transition from 
        institutional to community living, maintenance of community 
        living on leaving the work force, self-help skills, and 
        activities of daily living.
    ``(ii) Each Center conducting the research or demonstration 
activities described in subparagraph (B)(iii) shall have an advisory 
committee, of which the majority of members are individuals with 
disabilities who are users of rehabilitation technology, and the 
individuals' representatives.
    ``(E) Grants made under this paragraph shall be made on a 
competitive basis and shall be for a period of 5 years, except that the 
Director may make a grant for a period of less than 5 years if--
            ``(i) the grant is made to a new recipient; or
            ``(ii) the grant supports new or innovative research.
    ``(F) To be eligible to receive a grant under this paragraph, a 
prospective grant recipient shall submit an application to the Director 
at such time, in such manner, and containing such information as the 
Director may require.
    ``(G) Each Center established or supported through a grant made 
available under this paragraph shall--
            ``(i) cooperate with State agencies and other local, State, 
        regional, and national programs and organizations developing or 
        delivering rehabilitation technology, including State programs 
        funded under the Technology-Related Assistance for Individuals 
        With Disabilities Act of 1988 (29 U.S.C. 2201 et seq.); and
            ``(ii) prepare and submit to the Director as part of an 
        application for continuation of a grant, or as a final report, 
        a report that documents the outcomes of the program of the 
        Center in terms of both short- and long-term impact on the 
        lives of individuals with disabilities, and such other 
        information as may be requested by the Director.
    ``(4)(A) Research grants may be used to conduct a program for 
spinal cord injury research, including conducting such a program by 
making grants to public or private agencies and organizations to pay 
part or all of the costs of special projects and demonstration projects 
for spinal cord injuries, that will--
            ``(i) ensure widespread dissemination of research findings 
        among all Spinal Cord Injury Centers, to rehabilitation 
        practitioners, individuals with spinal cord injury, the 
        individuals' representatives, and organizations receiving 
        financial assistance under this paragraph;
            ``(ii) provide encouragement and support for initiatives 
        and new approaches by individual and institutional 
        investigators; and
            ``(iii) establish and maintain close working relationships 
        with other governmental and voluntary institutions and 
        organizations engaged in similar efforts in order to unify and 
        coordinate scientific efforts, encourage joint planning, and 
        promote the interchange of data and reports among spinal cord 
        injury investigations.
    ``(B) Any agency or organization carrying out a project or 
demonstration project assisted by a grant under this paragraph that 
provides services to individuals with spinal cord injuries shall--
            ``(i) establish, on an appropriate regional basis, a 
        multidisciplinary system of providing vocational and other 
        rehabilitation services, specifically designed to meet the 
        special needs of individuals with spinal cord injuries, 
        including acute care as well as periodic inpatient or 
        outpatient followup and services;
            ``(ii) demonstrate and evaluate the benefits to individuals 
        with spinal cord injuries served in, and the degree of cost-
        effectiveness of, such a regional system;
            ``(iii) demonstrate and evaluate existing, new, and 
        improved methods and rehabilitation technology essential to the 
        care, management, and rehabilitation of individuals with spinal 
        cord injuries; and
            ``(iv) demonstrate and evaluate methods of community 
        outreach for individuals with spinal cord injuries and 
        community education in connection with the problems of such 
        individuals in areas such as housing, transportation, 
        recreation, employment, and community activities.
    ``(C) In awarding grants under this paragraph, the Director shall 
take into account the location of any proposed Spinal Cord Injury 
Center and the appropriate geographic and regional allocation of such 
Centers.
    ``(5) Research grants may be used to conduct a program for end-
stage renal disease research, to include support of projects and 
demonstrations for providing special services (including 
transplantation and dialysis), artificial kidneys, and supplies 
necessary for the rehabilitation of individuals with such disease and 
which will--
            ``(A) ensure dissemination of research findings;
            ``(B) provide encouragement and support for initiatives and 
        new approaches by individuals and institutional investigators; 
        and
            ``(C) establish and maintain close working relationships 
        with other governmental and voluntary institutions and 
        organizations engaged in similar efforts,
in order to unify and coordinate scientific efforts, encourage joint 
planning, and promote the interchange of data and reports among 
investigators in the field of end-stage renal disease. No person shall 
be selected to participate in such program who is eligible for services 
for such disease under any other provision of law.
    ``(6) Research grants may be used to conduct a program for 
international rehabilitation research, demonstration, and training for 
the purpose of developing new knowledge and methods in the 
rehabilitation of individuals with disabilities in the United States, 
cooperating with and assisting in developing and sharing information 
found useful in other nations in the rehabilitation of individuals with 
disabilities, and initiating a program to exchange experts and 
technical assistance in the field of rehabilitation of individuals with 
disabilities with other nations as a means of increasing the levels of 
skill of rehabilitation personnel.
    ``(7) Research grants may be used to conduct a research program 
concerning the use of existing telecommunications systems (including 
telephone, television, satellite, radio, and other similar systems) 
which have the potential for substantially improving service delivery 
methods, and the development of appropriate programming to meet the 
particular needs of individuals with disabilities.
    ``(8) Research grants may be used to conduct a program of joint 
projects with the National Institutes of Health, the National Institute 
of Mental Health, the Health Services Administration, the 
Administration on Aging, the National Science Foundation, the Veterans' 
Administration, the Department of Health and Human Services, the 
National Aeronautics and Space Administration, other Federal agencies, 
and private industry in areas of joint interest involving 
rehabilitation.
    ``(9) Research grants may be used to conduct a program of research 
related to the rehabilitation of children, or older individuals, who 
are individuals with disabilities, including older American Indians who 
are individuals with disabilities. Such research program may include 
projects designed to assist the adjustment of, or maintain as residents 
in the community, older workers who are individuals with disabilities 
on leaving the work force.
    ``(10) Research grants may be used to conduct a research program to 
develop and demonstrate innovative methods to attract and retain 
professionals to serve in rural areas in the rehabilitation of 
individuals with disabilities, including individuals with significant 
disabilities.
    ``(11) Research grants may be used to conduct a model research and 
demonstration project designed to assess the feasibility of 
establishing a center for producing and distributing to individuals who 
are deaf or hard of hearing captioned video cassettes providing a broad 
range of educational, cultural, scientific, and vocational programming.
    ``(12) Research grants may be used to conduct a model research and 
demonstration program to develop innovative methods of providing 
services for preschool age children who are individuals with 
disabilities, including--
            ``(A) early intervention, assessment, parent counseling, 
        infant stimulation, early identification, diagnosis, and 
        evaluation of children who are individuals with significant 
        disabilities up to the age of five, with a special emphasis on 
        children who are individuals with significant disabilities up 
        to the age of three;
            ``(B) such physical therapy, language development, 
        pediatric, nursing, psychological, and psychiatric services as 
        are necessary for such children; and
            ``(C) appropriate services for the parents of such 
        children, including psychological and psychiatric services, 
        parent counseling, and training.
    ``(13) Research grants may be used to conduct a model research and 
training program under which model training centers shall be 
established to develop and use more advanced and effective methods of 
evaluating and addressing the employment needs of individuals with 
disabilities, including programs that--
            ``(A) provide training and continuing education for 
        personnel involved with the employment of individuals with 
        disabilities;
            ``(B) develop model procedures for testing and evaluating 
        the employment needs of individuals with disabilities;
            ``(C) develop model training programs to teach individuals 
        with disabilities skills which will lead to appropriate 
        employment;
            ``(D) develop new approaches for job placement of 
        individuals with disabilities, including new followup 
        procedures relating to such placement;
            ``(E) provide information services regarding education, 
        training, employment, and job placement for individuals with 
        disabilities; and
            ``(F) develop new approaches and provide information 
        regarding job accommodations, including the use of 
        rehabilitation engineering and assistive technology.
    ``(14) Research grants may be used to conduct a rehabilitation 
research program under which financial assistance is provided in order 
to--
            ``(A) test new concepts and innovative ideas;
            ``(B) demonstrate research results of high potential 
        benefits;
            ``(C) purchase prototype aids and devices for evaluation;
            ``(D) develop unique rehabilitation training curricula; and
            ``(E) be responsive to special initiatives of the Director.
No single grant under this paragraph may exceed $50,000 in any fiscal 
year and all payments made under this paragraph in any fiscal year may 
not exceed 5 percent of the amount available for this section to the 
National Institute on Disability and Rehabilitation Research in any 
fiscal year. Regulations and administrative procedures with respect to 
financial assistance under this paragraph shall, to the maximum extent 
possible, be expedited.
    ``(15) Research grants may be used to conduct studies of the 
rehabilitation needs of American Indian populations and of effective 
mechanisms for the delivery of rehabilitation services to Indians 
residing on and off reservations.
    ``(16) Research grants may be used to conduct a demonstration 
program under which one or more projects national in scope shall be 
established to develop procedures to provide incentives for the 
development, manufacturing, and marketing of orphan technological 
devices, including technology transfer concerning such devices, 
designed to enable individuals with disabilities to achieve 
independence and access to gainful employment.
    ``(17)(A) Research grants may be used to conduct a research program 
related to quality assurance in the area of rehabilitation technology.
    ``(B) Activities carried out under the research program may 
include--
            ``(i) the development of methodologies to evaluate 
        rehabilitation technology products and services and the 
        dissemination of the methodologies to consumers and other 
        interested parties;
            ``(ii) identification of models for service provider 
        training and evaluation and certification of the effectiveness 
        of the models;
            ``(iii) identification and dissemination of outcome 
        measurement models for the assessment of rehabilitation 
        technology products and services; and
            ``(iv) development and testing of research-based tools to 
        enhance consumer decisionmaking about rehabilitation technology 
        products and services.
    ``(C) The Director shall develop the quality assurance research 
program after consultation with representatives of all types of 
organizations interested in rehabilitation technology quality 
assurance.
    ``(18) Research grants may be used to provide for research and 
demonstration projects and related activities that explore the use and 
effectiveness of specific alternative or complementary medical 
practices for individuals with disabilities. Such projects and 
activities may include projects and activities designed to--
            ``(A) determine the use of specific alternative or 
        complementary medical practices among individuals with 
        disabilities and the perceived effectiveness of the practices;
            ``(B) determine the specific information sources, 
        decisionmaking methods, and methods of payment used by 
        individuals with disabilities who access alternative or 
        complementary medical services;
            ``(C) develop criteria to screen and assess the validity of 
        research studies of such practices for individuals with 
        disabilities; and
            ``(D) determine the effectiveness of specific alternative 
        or complementary medical practices that show promise for 
        promoting increased functioning, prevention of secondary 
        disabilities, or other positive outcomes for individuals with 
        certain types of disabilities, by conducting controlled 
        research studies.
    ``(c)(1) In carrying out evaluations of covered activities under 
this section, the Director is authorized to make arrangements for site 
visits to obtain information on the accomplishments of the projects.
    ``(2) The Director shall not make a grant under this section that 
exceeds $499,999 unless the peer review of the grant application has 
included a site visit.

               ``rehabilitation research advisory council

    ``Sec. 205. (a) Establishment.--Subject to the availability of 
appropriations, the Secretary shall establish in the Department of 
Education a Rehabilitation Research Advisory Council (referred to in 
this section as the `Council') composed of 12 members appointed by the 
Secretary.
    ``(b) Duties.--The Council shall advise the Director with respect 
to research priorities and the development and revision of the 5-year 
plan required by section 202(h).
    ``(c) Qualifications.--Members of the Council shall be generally 
representative of the community of rehabilitation professionals, the 
community of rehabilitation researchers, the community of individuals 
with disabilities, and the individuals' representatives. At least one-
half of the members shall be individuals with disabilities or the 
individuals' representatives.
    ``(d) Terms of Appointment.--
            ``(1) Length of term.--Each member of the Council shall 
        serve for a term of up to 3 years, determined by the Secretary, 
        except that--
                    ``(A) a member appointed to fill a vacancy 
                occurring prior to the expiration of the term for which 
                a predecessor was appointed, shall be appointed for the 
                remainder of such term; and
                    ``(B) the terms of service of the members initially 
                appointed shall be (as specified by the Secretary) for 
                such fewer number of years as will provide for the 
                expiration of terms on a staggered basis.
            ``(2) Number of terms.--No member of the Council may serve 
        more than two consecutive full terms. Members may serve after 
        the expiration of their terms until their successors have taken 
        office.
    ``(e)  Vacancies.--Any vacancy occurring in the membership of the 
Council shall be filled in the same manner as the original appointment 
for the position being vacated. The vacancy shall not affect the power 
of the remaining members to execute the duties of the Council.
    ``(f) Payment and Expenses.--
            ``(1) Payment.--Each member of the Council who is not an 
        officer or full-time employee of the Federal Government shall 
        receive a payment of $150 for each day (including travel time) 
        during which the member is engaged in the performance of duties 
        for the Council. All members of the Council who are officers or 
        full-time 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.
            ``(2) Travel expenses.--Each member of the Council may 
        receive travel expenses, including per diem in lieu of 
        subsistence, as authorized by section 5703 of title 5, United 
        States Code, for employees serving intermittently in the 
        Government service, for each day the member is engaged in the 
        performance of duties away from the home or regular place of 
        business of the member.
    ``(g) Detail of Federal Employees.--On the request of the Council, 
the Secretary may detail, with or without reimbursement, any of the 
personnel of the Department of Education to the Council to assist the 
Council in carrying out its duties. Any detail shall not interrupt or 
otherwise affect the civil service status or privileges of the Federal 
employee.
    ``(h) Technical Assistance.--On the request of the Council, the 
Secretary shall provide such technical assistance to the Council as the 
Council determines to be necessary to carry out its duties.
    ``(i) Termination.--Section 14 of the Federal Advisory Committee 
Act (5 U.S.C. App.) shall not apply with respect to the Council.''.

SEC. 606. PROFESSIONAL DEVELOPMENT AND SPECIAL PROJECTS AND 
              DEMONSTRATIONS.

    Title III of the Rehabilitation Act of 1973 (29 U.S.C. 770 et seq.) 
is amended to read as follows:

    ``TITLE III--PROFESSIONAL DEVELOPMENT AND SPECIAL PROJECTS AND 
                             DEMONSTRATIONS

``SEC. 301. DECLARATION OF PURPOSE AND COMPETITIVE BASIS OF GRANTS AND 
              CONTRACTS.

    ``(a) Purpose.--It is the purpose of this title to authorize grants 
and contracts to--
            ``(1)(A) provide academic training to ensure that skilled 
        personnel are available to provide rehabilitation services to 
        individuals with disabilities through vocational, medical, 
        social, and psychological rehabilitation programs (including 
        supported employment programs), through independent living 
        services programs, and through client assistance programs; and
            ``(B) provide training to maintain and upgrade basic skills 
        and knowledge of personnel employed to provide state-of-the-art 
        service delivery and rehabilitation technology services;
            ``(2) conduct special projects and demonstrations that 
        expand and improve the provision of rehabilitation and other 
        services authorized under this Act, or that otherwise further 
        the purposes of this Act, including related research and 
        evaluation;
            ``(3) provide vocational rehabilitation services to 
        individuals with disabilities who are migrant or seasonal 
        farmworkers;
            ``(4) initiate recreational programs to provide 
        recreational activities and related experiences for individuals 
        with disabilities to aid such individuals in employment, 
        mobility, socialization, independence, and community 
        integration; and
            ``(5) provide training and information to individuals with 
        disabilities and the individuals' representatives, and other 
        appropriate parties to develop the skills necessary for 
        individuals with disabilities to gain access to the 
        rehabilitation system and workforce investment system and to 
        become active decisionmakers in the rehabilitation process.
    ``(b) Competitive Basis of Grants and Contracts.--The Secretary 
shall ensure that all grants and contracts are awarded under this title 
on a competitive basis.

``SEC. 302. TRAINING.

    ``(a) Grants and Contracts for Personnel Training.--
            ``(1) Authority.--The Commissioner shall make grants to, 
        and enter into contracts with, States and public or nonprofit 
        agencies and organizations (including institutions of higher 
        education) to pay part of the cost of projects to provide 
        training, traineeships, and related activities, including the 
        provision of technical assistance, that are designed to assist 
        in increasing the numbers of, and upgrading the skills of, 
        qualified personnel (especially rehabilitation counselors) who 
        are trained in providing vocational, medical, social, and 
        psychological rehabilitation services, who are trained to 
        assist individuals with communication and related disorders, 
        who are trained to provide other services provided under this 
        Act, to individuals with disabilities, and who may include--
                    ``(A) personnel specifically trained in providing 
                employment assistance to individuals with disabilities 
                through job development and job placement services;
                    ``(B) personnel specifically trained to identify, 
                assess, and meet the individual rehabilitation needs of 
                individuals with disabilities, including needs for 
                rehabilitation technology;
                    ``(C) personnel specifically trained to deliver 
                services to individuals who may benefit from receiving 
                independent living services;
                    ``(D) personnel specifically trained to deliver 
                services in the client assistance programs;
                    ``(E) personnel specifically trained to deliver 
                services, through supported employment programs, to 
                individuals with a most significant disability;
                    ``(F) personnel providing vocational rehabilitation 
                services specifically trained in the use of braille, 
                the importance of braille literacy, and in methods of 
                teaching braille; and
                    ``(G) personnel trained in performing other 
                functions necessary to the provision of vocational, 
                medical, social, and psychological rehabilitation 
                services, and other services provided under this Act.
            ``(2) Authority to provide scholarships.--Grants and 
        contracts under paragraph (1) may be expended for scholarships 
        and may include necessary stipends and allowances.
            ``(3) Related federal statutes.--In carrying out this 
        subsection, the Commissioner may make grants to and enter into 
        contracts with States and public or nonprofit agencies and 
        organizations, including institutions of higher education, to 
        furnish training regarding related Federal statutes (other than 
        this Act).
            ``(4) Training for statewide workforce systems personnel.--
        The Commissioner may make grants to and enter into contracts 
        under this subsection with States and public or nonprofit 
        agencies and organizations, including institutions of higher 
        education, to furnish training to personnel providing services 
        to individuals with disabilities under the Workforce Investment 
        Partnership Act of 1998. Under this paragraph, personnel may be 
        trained--
                    ``(A) in evaluative skills to determine whether an 
                individual with a disability may be served by the State 
                vocational rehabilitation program or another component 
                of the statewide workforce investment system; or
                    ``(B) to assist individuals with disabilities 
                seeking assistance through one-stop customer service 
                centers established under section 315 of the Workforce 
                Investment Partnership Act of 1998.
            ``(5) Joint funding.--Training and other activities 
        provided under paragraph (4) for personnel may be jointly 
        funded with the Department of Labor, using funds made available 
        under title III of the Workforce Investment Partnership Act of 
        1998.
    ``(b) Grants and Contracts for Academic Degrees and Academic 
Certificate Granting Training Projects.--
            ``(1) Authority.--
                    ``(A) In general.--The Commissioner may make grants 
                to, and enter into contracts with, States and public or 
                nonprofit agencies and organizations (including 
                institutions of higher education) to pay part of the 
                costs of academic training projects to provide training 
                that leads to an academic degree or academic 
                certificate. In making such grants or entering into 
                such contracts, the Commissioner shall target funds to 
                areas determined under subsection (e) to have shortages 
                of qualified personnel.
                    ``(B) Types of projects.--Academic training 
                projects described in this subsection may include--
                            ``(i) projects to train personnel in the 
                        areas of vocational rehabilitation counseling, 
                        rehabilitation technology, rehabilitation 
                        medicine, rehabilitation nursing, 
                        rehabilitation social work, rehabilitation 
                        psychiatry, rehabilitation psychology, 
                        rehabilitation dentistry, physical therapy, 
                        occupational therapy, speech pathology and 
                        audiology, physical education, therapeutic 
                        recreation, community rehabilitation programs, 
                        or prosthetics and orthotics;
                            ``(ii) projects to train personnel to 
                        provide--
                                    ``(I) services to individuals with 
                                specific disabilities or individuals 
                                with disabilities who have specific 
                                impediments to rehabilitation, 
                                including individuals who are members 
                                of populations that are unserved or 
                                underserved by programs under this Act;
                                    ``(II) job development and job 
                                placement services to individuals with 
                                disabilities;
                                    ``(III) supported employment 
                                services, including services of 
                                employment specialists for individuals 
                                with disabilities;
                                    ``(IV) specialized services for 
                                individuals with significant 
                                disabilities; or
                                    ``(V) recreation for individuals 
                                with disabilities;
                            ``(iii) projects to train personnel in 
                        other fields contributing to the rehabilitation 
                        of individuals with disabilities; and
                            ``(iv) projects to train personnel in the 
                        use, applications, and benefits of 
                        rehabilitation technology.
            ``(2) Application.--No grant shall be awarded or contract 
        entered into under this subsection unless the applicant has 
        submitted to the Commissioner an application at such time, in 
        such form, in accordance with such procedures, and including 
        such information as the Secretary may require, including--
                    ``(A) a description of how the designated State 
                unit or units will participate in the project to be 
                funded under the grant or contract, including, as 
                appropriate, participation on advisory committees, as 
                practicum sites, in curriculum development, and in 
                other ways so as to build closer relationships between 
                the applicant and the designated State unit and to 
                encourage students to pursue careers in public 
                vocational rehabilitation programs;
                    ``(B) the identification of potential employers 
                that would meet the requirements of paragraph 
                (4)(A)(i); and
                    ``(C) an assurance that data on the employment of 
                graduates or trainees who participate in the project is 
                accurate.
            ``(3) Limitation.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), no grant or contract under this 
                subsection may be used to provide any one course of 
                study to an individual for a period of more than 4 
                years.
                    ``(B) Exception.--If a grant or contract recipient 
                under this subsection determines that an individual has 
                a disability which seriously affects the completion of 
                training under this subsection, the grant or contract 
                recipient may extend the period referred to in 
                subparagraph (A).
            ``(4) Required agreements.--
                    ``(A) In general.--A recipient of a grant or 
                contract under this subsection shall provide assurances 
                to the Commissioner that each individual who receives a 
                scholarship, for the first academic year after the date 
                of enactment of the Rehabilitation Act Amendments of 
                1998, utilizing funds provided under such grant or 
                contract shall enter into an agreement with the 
                recipient under which the individual shall--
                            ``(i) maintain employment--
                                    ``(I) with an employer that is a 
                                State rehabilitation or other agency or 
                                organization (including a professional 
                                corporation or practice group) that 
                                provides services to individuals with 
                                disabilities under this Act, or with an 
                                institution of higher education or 
                                other organization that conducts 
                                rehabilitation education, training, or 
                                research under this Act;
                                    ``(II) on a full- or part-time 
                                basis; and
                                    ``(III) for a period of not less 
                                than the full-time equivalent of 2 
                                years for each year for which 
                                assistance under this subsection was 
                                received by the individual, within a 
                                period, beginning after the recipient 
                                completes the training for which the 
                                scholarship was awarded, of not more 
                                than the sum of the number of years in 
                                the period described in this subclause 
                                and 2 additional years;
                            ``(ii) directly provide or administer 
                        services, conduct research, or furnish 
                        training, funded under this Act; and
                            ``(iii) repay all or part of the amount of 
                        any scholarship received under the grant or 
                        contract, plus interest, if the individual does 
                        not fulfill the requirements of clauses (i) and 
                        (ii), except that the Commissioner may by 
                        regulation provide for repayment exceptions and 
                        deferrals.
                    ``(B) Enforcement.--The Commissioner shall be 
                responsible for the enforcement of each agreement 
                entered into under subparagraph (A) upon the completion 
                of the training involved with respect to such 
                agreement.
    ``(c) Grants to Historically Black Colleges and Universities.--The 
Commissioner, in carrying out this section, shall make grants to 
historically Black colleges and universities and other institutions of 
higher education whose minority student enrollment is at least 50 
percent of the total enrollment of the institution.
    ``(d) Application.--A grant may not be awarded to a State or other 
organization under this section unless the State or organization has 
submitted an application to the Commissioner at such time, in such 
form, in accordance with such procedures, and containing such 
information as the Commissioner may require, including a detailed 
description of strategies that will be utilized to recruit and train 
individuals so as to reflect the diverse populations of the United 
States as part of the effort to increase the number of individuals with 
disabilities, and individuals who are from linguistically and 
culturally diverse backgrounds, who are available to provide 
rehabilitation services.
    ``(e) Evaluation and Collection of Data.--The Commissioner shall 
evaluate the impact of the training programs conducted under this 
section, and collect information on the training needs of, and data on 
shortages of qualified personnel necessary to provide services to 
individuals with disabilities.
    ``(f) Grants for the Training of Interpreters.--
            ``(1) Authority.--
                    ``(A) In general.--For the purpose of training a 
                sufficient number of qualified interpreters to meet the 
                communications needs of individuals who are deaf or 
                hard of hearing, and individuals who are deaf-blind, 
                the Commissioner, acting through a Federal office 
                responsible for deafness and communicative disorders, 
                may award grants to public or private nonprofit 
                agencies or organizations to pay part of the costs--
                            ``(i) for the establishment of interpreter 
                        training programs; or
                            ``(ii) to enable such agencies or 
                        organizations to provide financial assistance 
                        for ongoing interpreter training programs.
                    ``(B) Geographic areas.--The Commissioner shall 
                award grants under this subsection for programs in 
                geographic areas throughout the United States that the 
                Commissioner considers appropriate to best carry out 
                the objectives of this section.
                    ``(C) Priority.--In awarding grants under this 
                subsection, the Commissioner shall give priority to 
                public or private nonprofit agencies or organizations 
                with existing programs that have a demonstrated 
                capacity for providing interpreter training services.
                    ``(D) Funding.--The Commissioner may award grants 
                under this subsection through the use of--
                            ``(i) amounts appropriated to carry out 
                        this section; or
                            ``(ii) pursuant to an agreement with the 
                        Director of the Office of the Special Education 
                        Program (established under section 603 of the 
                        Individuals with Disabilities Education Act (as 
                        amended by section 101 of the Individuals with 
                        Disabilities Education Act Amendments of 1997 
                        (Public Law 105-17))), amounts appropriated 
                        under section 686 of the Individuals with 
                        Disabilities Education Act.
            ``(2) Application.--A grant may not be awarded to an agency 
        or organization under paragraph (1) unless the agency or 
        organization has submitted an application to the Commissioner 
        at such time, in such form, in accordance with such procedures, 
        and containing such information as the Commissioner may 
        require, including--
                    ``(A) a description of the manner in which an 
                interpreter training program will be developed and 
                operated during the 5-year period following the date on 
                which a grant is received by the applicant under this 
                subsection;
                    ``(B) a demonstration of the applicant's capacity 
                or potential for providing training for interpreters 
                for individuals who are deaf or hard of hearing, and 
                individuals who are deaf-blind;
                    ``(C) assurances that any interpreter trained or 
                retrained under a program funded under the grant will 
                meet such minimum standards of competency as the 
                Commissioner may establish for purposes of this 
                subsection; and
                    ``(D) such other information as the Commissioner 
                may require.
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for each of the fiscal years 1998 through 2004.
    ``(h) Provision of Information.--The Commissioner, subject to the 
provisions of section 306, may require that recipients of grants or 
contracts under this section provide information, including data, with 
regard to the impact of activities funded under this section.

``SEC. 303. SPECIAL DEMONSTRATION PROGRAM.

    ``(a) Authority.--The Commissioner, subject to the provisions of 
section 306, may award grants or contracts to eligible entities to pay 
all or part of the cost of programs that expand and improve the 
provision of rehabilitation and other services authorized under this 
Act or that further the purposes of the Act, including related research 
and evaluation activities.
    ``(b) Eligible Entities and Terms and Conditions.--
            ``(1) Eligible entities.--To be eligible to receive a grant 
        or contract under subsection (a), an entity shall be a State 
        vocational rehabilitation agency, community rehabilitation 
        program, Indian tribe or tribal organization, or other public 
        or nonprofit agency or organization, or as the Commissioner 
        determines appropriate, a for-profit organization. The 
        Commissioner may limit competitions to 1 or more types of 
        organizations described in this paragraph.
            ``(2) Terms and conditions.--Awards under this section 
        shall contain such terms and conditions as the Commissioner may 
        require.
    ``(c) Application.--An eligible entity that desires to receive an 
award under this section shall submit an application to the Secretary 
at such time, in such form, and containing such information and 
assurances as the Commissioner may require, including, if the 
Commissioner determines appropriate, a description of how the proposed 
project or demonstration program--
            ``(1) is based on current research findings, which may 
        include research conducted by the National Institute on 
        Disability and Rehabilitation Research, the National Institutes 
        of Health, and other public or private organizations; and
            ``(2) is of national significance.
    ``(d) Types of Projects.--The programs that may be funded under 
this section include--
            ``(1) special projects and demonstrations of service 
        delivery;
            ``(2) model demonstration projects;
            ``(3) technical assistance projects;
            ``(4) systems change projects;
            ``(5) special studies and evaluations; and
            ``(6) dissemination and utilization activities.
    ``(e) Priority for Competitions.--
            ``(1) In general.--In announcing competitions for grants 
        and contracts under this section, the Commissioner shall give 
        priority consideration to--
                    ``(A) projects to provide training, information, 
                and technical assistance that will enable individuals 
                with disabilities and the individuals' representatives, 
                to participate more effectively in meeting the 
                vocational, independent living, and rehabilitation 
                needs of the individuals with disabilities;
                    ``(B) special projects and demonstration programs 
                of service delivery for adults who are either low-
                functioning and deaf or low-functioning and hard of 
                hearing;
                    ``(C) innovative methods of promoting consumer 
                choice in the rehabilitation process;
                    ``(D) supported employment, including community-
                based supported employment programs to meet the needs 
                of individuals with the most significant disabilities 
                or to provide technical assistance to States and 
                community organizations to improve and expand the 
                provision of supported employment services; and
                    ``(E) model transitional planning services for 
                youths with disabilities.
            ``(2) Eligibility and coordination.--
                    ``(A) Eligibility.--Eligible applicants for grants 
                and contracts under this section for projects described 
                in paragraph (1)(A) include--
                            ``(i) Parent Training and Information 
                        Centers funded under section 682 of the 
                        Individuals with Disabilities Education Act (as 
                        amended by section 101 of the Individuals with 
                        Disabilities Education Act Amendments of 1997 
                        (Public Law 105-17));
                            ``(ii) organizations that meet the 
                        definition of a parent organization in section 
                        682 of such Act; and
                            ``(iii) private nonprofit organizations 
                        assisting parent training and information 
                        centers.
                    ``(B) Coordination.--Recipients of grants and 
                contracts under this section for projects described in 
                paragraph (1)(A) shall, to the extent practicable, 
                coordinate training and information activities with 
                Centers for Independent Living.
            ``(3) Additional competitions.--In announcing competitions 
        for grants and contracts under this section, the Commissioner 
        may require that applicants address 1 or more of the following:
                    ``(A) Age ranges.
                    ``(B) Types of disabilities.
                    ``(C) Types of services.
                    ``(D) Models of service delivery.
                    ``(E) Stage of the rehabilitation process.
                    ``(F) The needs of--
                            ``(i) underserved populations;
                            ``(ii) unserved and underserved areas;
                            ``(iii) individuals with significant 
                        disabilities;
                            ``(iv) low-incidence disability 
                        populations; and
                            ``(v) individuals residing in federally 
                        designated empowerment zones and enterprise 
                        communities.
                    ``(G) Expansion of employment opportunities for 
                individuals with disabilities.
                    ``(H) Systems change projects to promote meaningful 
                access of individuals with disabilities to employment-
                related services under the Workforce Investment 
                Partnership Act of 1998 and under other Federal laws.
                    ``(I) Innovative methods of promoting the 
                achievement of high-quality employment outcomes.
                    ``(J) The demonstration of the effectiveness of 
                early intervention activities in improving employment 
                outcomes.
                    ``(K) Alternative methods of providing affordable 
                transportation services to individuals with 
                disabilities who are employed, seeking employment, or 
                receiving vocational rehabilitation services from 
                public or private organizations and who reside in 
                geographic areas in which public transportation or 
                paratransit service is not available.
    ``(f) Use of Funds for Continuation Awards.--The Commissioner may 
use funds made available to carry out this section for continuation 
awards for projects that were funded under sections 12 and 311 (as such 
sections were in effect on the day prior to the date of the enactment 
of the Rehabilitation Act Amendments of 1998).
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for each of the fiscal years 1998 through 2004.

``SEC. 304. MIGRANT AND SEASONAL FARMWORKERS.

    ``(a) Grants.--
            ``(1) Authority.--The Commissioner, subject to the 
        provisions of section 306, may make grants to eligible entities 
        to pay up to 90 percent of the cost of projects or 
        demonstration programs for the provision of vocational 
        rehabilitation services to individuals with disabilities who 
        are migrant or seasonal farmworkers, as determined in 
        accordance with rules prescribed by the Secretary of Labor, and 
        to the family members who are residing with such individuals 
        (whether or not such family members are individuals with 
        disabilities).
            ``(2) Eligible entities.--To be eligible to receive a grant 
        under paragraph (1), an entity shall be--
                    ``(A) a State designated agency;
                    ``(B) a nonprofit agency working in collaboration 
                with a State agency described in subparagraph (A); or
                    ``(C) a local agency working in collaboration with 
                a State agency described in subparagraph (A).
            ``(3) Maintenance and transportation.--
                    ``(A) In general.--Amounts provided under a grant 
                under this section may be used to provide for the 
                maintenance of and transportation for individuals and 
                family members described in paragraph (1) as necessary 
                for the rehabilitation of such individuals.
                    ``(B) Requirement.--Maintenance payments under this 
                paragraph shall be provided in a manner consistent with 
                any maintenance payments provided to other individuals 
                with disabilities in the State under this Act.
            ``(4) Assurance of cooperation.--To be eligible to receive 
        a grant under this section an entity shall provide assurances 
        (satisfactory to the Commissioner) that in the provision of 
        services under the grant there will be appropriate cooperation 
        between the grantee and other public or nonprofit agencies and 
        organizations having special skills and experience in the 
        provision of services to migrant or seasonal farmworkers or 
        their families.
            ``(5) Coordination with other programs.--The Commissioner 
        shall administer this section in coordination with other 
        programs serving migrant and seasonal farmworkers, including 
        programs under title I of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 6301 et seq.), section 330 of 
        the Public Health Service Act (42 U.S.C. 254b), the Migrant and 
        Seasonal Agricultural Worker Protection Act (29 U.S.C. 1801 et 
        seq.), and the Workforce Investment Partnership Act of 1998.
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out this section, 
for each of the fiscal years 1998 through 2004.

``SEC. 305. RECREATIONAL PROGRAMS.

    ``(a) Grants.--
            ``(1) Authority.--
                    ``(A) In general.--The Commissioner, subject to the 
                provisions of section 306, shall make grants to States, 
                public agencies, and nonprofit private organizations to 
                pay the Federal share of the cost of the establishment 
                and operation of recreation programs to provide 
                individuals with disabilities with recreational 
                activities and related experiences to aid in the 
                employment, mobility, socialization, independence, and 
                community integration of such individuals.
                    ``(B) Recreation programs.--The recreation programs 
                that may be funded using assistance provided under a 
                grant under this section may include vocational skills 
                development, leisure education, leisure networking, 
                leisure resource development, physical education and 
                sports, scouting and camping, 4-H activities, music, 
                dancing, handicrafts, art, and homemaking. When 
                possible and appropriate, such programs and activities 
                should be provided in settings with peers who are not 
                individuals with disabilities.
                    ``(C) Design of program.--Programs and activities 
                carried out under this section shall be designed to 
                demonstrate ways in which such programs assist in 
                maximizing the independence and integration of 
                individuals with disabilities.
            ``(2) Maximum term of grant.--A grant under this section 
        shall be made for a period of not more than 3 years.
            ``(3) Availability of nongrant resources.--
                    ``(A) In general.--A grant may not be made to an 
                applicant under this section unless the applicant 
                provides assurances that, with respect to costs of the 
                recreation program to be carried out under the grant, 
                the applicant, to the maximum extent practicable, will 
                make available non-Federal resources (in cash or in-
                kind) to pay the non-Federal share of such costs.
                    ``(B) Federal share.--The Federal share of the 
                costs of the recreation programs carried out under this 
                section shall be--
                            ``(i) with respect to the first year in 
                        which assistance is provided under a grant 
                        under this section, 100 percent;
                            ``(ii) with respect to the second year in 
                        which assistance is provided under a grant 
                        under this section, 75 percent; and
                            ``(iii) with respect to the third year in 
                        which assistance is provided under a grant 
                        under this section, 50 percent.
            ``(4) Application.--To be eligible to receive a grant under 
        this section, a State, agency, or organization shall submit an 
        application to the Commissioner at such time, in such manner, 
        and containing such information as the Commissioner may 
        require, including a description of--
                    ``(A) the manner in which the findings and results 
                of the project to be funded under the grant, 
                particularly information that facilitates the 
                replication of the results of such projects, will be 
                made generally available; and
                    ``(B) the manner in which the service program 
                funded under the grant will be continued after Federal 
                assistance ends.
            ``(5) Level of services.--Recreation programs funded under 
        this section shall maintain, at a minimum, the same level of 
        services over a 3-year project period.
            ``(6) Reports by grantees.--
                    ``(A) Requirement.--The Commissioner shall require 
                that each recipient of a grant under this section 
                annually prepare and submit to the Commissioner a 
                report concerning the results of the activities funded 
                under the grant.
                    ``(B) Limitation.--The Commissioner may not make 
                financial assistance available to a grant recipient for 
                a subsequent year until the Commissioner has received 
                and evaluated the annual report of the recipient under 
                subparagraph (A) for the current year.
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section, such sums as may be necessary 
for each of the fiscal years 1998 through 2004.

``SEC. 306. MEASURING OF PROJECT OUTCOMES AND PERFORMANCE.

    ``The Commissioner may require that recipients of grants under this 
title submit information, including data, as determined by the 
Commissioner to be necessary to measure project outcomes and 
performance, including any data needed to comply with the Government 
Performance and Results Act.''.

SEC. 607. NATIONAL COUNCIL ON DISABILITY.

    Title IV of the Rehabilitation Act of 1973 (29 U.S.C. 780 et seq.) 
is amended to read as follows:

               ``TITLE IV--NATIONAL COUNCIL ON DISABILITY

           ``establishment of national council on disability

    ``Sec. 400. (a)(1)(A) There is established within the Federal 
Government a National Council on Disability (hereinafter in this title 
referred to as the `National Council'), which shall be composed of 
fifteen members appointed by the President, by and with the advice and 
consent of the Senate.
    ``(B) The President shall select members of the National Council 
after soliciting recommendations from representatives of--
            ``(i) organizations representing a broad range of 
        individuals with disabilities; and
            ``(ii) organizations interested in individuals with 
        disabilities.
    ``(C) The members of the National Council shall be individuals with 
disabilities, parents or guardians of individuals with disabilities, or 
other individuals who have substantial knowledge or experience relating 
to disability policy or programs. The members of the National Council 
shall be appointed so as to be representative of individuals with 
disabilities, national organizations concerned with individuals with 
disabilities, providers and administrators of services to individuals 
with disabilities, individuals engaged in conducting medical or 
scientific research relating to individuals with disabilities, business 
concerns, and labor organizations. A majority of the members of the 
National Council shall be individuals with disabilities. The members of 
the National Council shall be broadly representative of minority and 
other individuals and groups.
    ``(2) The purpose of the National Council is to promote policies, 
programs, practices, and procedures that--
            ``(A) guarantee equal opportunity for all individuals with 
        disabilities, regardless of the nature or severity of the 
        disability; and
            ``(B) empower individuals with disabilities to achieve 
        economic self-sufficiency, independent living, and inclusion 
        and integration into all aspects of society.
    ``(b)(1) Each member of the National Council shall serve for a term 
of 3 years, except that the terms of service of the members initially 
appointed after the date of enactment of the Rehabilitation, 
Comprehensive Services, and Developmental Disabilities Amendments of 
1978 shall be (as specified by the President) for such fewer number of 
years as will provide for the expiration of terms on a staggered basis.
    ``(2)(A) No member of the National Council may serve more than two 
consecutive full terms beginning on the date of commencement of the 
first full term on the Council. Members may serve after the expiration 
of their terms until their successors have taken office.
    ``(B) As used in this paragraph, the term `full term' means a term 
of 3 years.
    ``(3) Any member appointed to fill a vacancy occurring before the 
expiration of the term for which such member's predecessor was 
appointed shall be appointed only for the remainder of such term.
    ``(c) The President shall designate the Chairperson from among the 
members appointed to the National Council. The National Council shall 
meet at the call of the Chairperson, but not less often than four times 
each year.
    ``(d) Eight members of the National Council shall constitute a 
quorum and any vacancy in the National Council shall not affect its 
power to function.

                      ``duties of national council

    ``Sec. 401. (a) The National Council shall--
            ``(1) provide advice to the Director with respect to the 
        policies and conduct of the National Institute on Disability 
        and Rehabilitation Research, including ways to improve research 
        concerning individuals with disabilities and the methods of 
        collecting and disseminating findings of such research;
            ``(2) provide advice to the Commissioner with respect to 
        the policies of and conduct of the Rehabilitation Services 
        Administration;
            ``(3) advise the President, the Congress, the Commissioner, 
        the appropriate Assistant Secretary of the Department of 
        Education, and the Director of the National Institute on 
        Disability and Rehabilitation Research on the development of 
        the programs to be carried out under this Act;
            ``(4) provide advice regarding priorities for the 
        activities of the Interagency Disability Coordinating Council 
        and review the recommendations of such Council for legislative 
        and administrative changes to ensure that such recommendations 
        are consistent with the purposes of the Council to promote the 
        full integration, independence, and productivity of individuals 
        with disabilities;
            ``(5) review and evaluate on a continuing basis--
                    ``(A) policies, programs, practices, and procedures 
                concerning individuals with disabilities conducted or 
                assisted by Federal departments and agencies, including 
                programs established or assisted under this Act or 
                under the Developmental Disabilities Assistance and 
                Bill of Rights Act; and
                    ``(B) all statutes and regulations pertaining to 
                Federal programs which assist such individuals with 
                disabilities;
        in order to assess the effectiveness of such policies, 
        programs, practices, procedures, statutes, and regulations in 
        meeting the needs of individuals with disabilities;
            ``(6) assess the extent to which such policies, programs, 
        practices, and procedures facilitate or impede the promotion of 
        the policies set forth in subparagraphs (A) and (B) of section 
        400(a)(2);
            ``(7) gather information about the implementation, 
        effectiveness, and impact of the Americans with Disabilities 
        Act of 1990 (42 U.S.C. 12101 et seq.);
            ``(8) make recommendations to the President, the Congress, 
        the Secretary, the Director of the National Institute on 
        Disability and Rehabilitation Research, and other officials of 
        Federal agencies or other Federal entities, respecting ways to 
        better promote the policies set forth in section 400(a)(2);
            ``(9) provide to the Congress on a continuing basis advice, 
        recommendations, legislative proposals, and any additional 
        information that the National Council or the Congress deems 
        appropriate; and
            ``(10) review and evaluate on a continuing basis new and 
        emerging disability policy issues affecting individuals with 
        disabilities at the international, Federal, State, and local 
        levels, and in the private sector, including the need for and 
        coordination of adult services, access to personal assistance 
        services, school reform efforts and the impact of such efforts 
        on individuals with disabilities, access to health care, and 
        policies that operate as disincentives for the individuals to 
        seek and retain employment.
    ``(b)(1) Not later than July 26, 1998, and annually thereafter, the 
National Council shall prepare and submit to the President and the 
appropriate committees of the Congress a report entitled `National 
Disability Policy: A Progress Report'.
    ``(2) The report shall assess the status of the Nation in achieving 
the policies set forth in section 400(a)(2), with particular focus on 
the new and emerging issues impacting on the lives of individuals with 
disabilities. The report shall present, as appropriate, available data 
on health, housing, employment, insurance, transportation, recreation, 
training, prevention, early intervention, and education. The report 
shall include recommendations for policy change.
    ``(3) In determining the issues to focus on and the findings, 
conclusions, and recommendations to include in the report, the National 
Council shall seek input from the public, particularly individuals with 
disabilities, representatives of organizations representing a broad 
range of individuals with disabilities, and organizations and agencies 
interested in individuals with disabilities.

               ``compensation of national council members

    ``Sec. 402. (a) Members of the National Council shall be entitled 
to receive compensation at a rate equal to the rate of pay for level 4 
of the Senior Executive Service Schedule under section 5382 of title 5, 
United States Code, including travel time, for each day they are 
engaged in the performance of their duties as members of the National 
Council.
    ``(b) Members of the National Council who are full-time officers or 
employees of the United States shall receive no additional pay on 
account of their service on the National Council except for 
compensation for travel expenses as provided under subsection (c) of 
this section.
    ``(c) While away from their homes or regular places of business in 
the performance of services for the National Council, members of the 
National Council shall be allowed travel expenses, including per diem 
in lieu of subsistence, in the same manner as persons employed 
intermittently in the Government service are allowed expenses under 
section 5703 of title 5, United States Code.

                      ``staff of national council

    ``Sec. 403. (a)(1) The Chairperson of the National Council may 
appoint and remove, without regard to the provisions of title 5, United 
States Code, governing appointments, the provisions of chapter 75 of 
such title (relating to adverse actions), the provisions of chapter 77 
of such title (relating to appeals), or the provisions of chapter 51 
and subchapter III of chapter 53 of such title (relating to 
classification and General Schedule pay rates), an Executive Director 
to assist the National Council to carry out its duties. The Executive 
Director shall be appointed from among individuals who are experienced 
in the planning or operation of programs for individuals with 
disabilities.
    ``(2) The Executive Director is authorized to hire technical and 
professional employees to assist the National Council to carry out its 
duties.
    ``(b)(1) The National Council may procure temporary and 
intermittent services to the same extent as is authorized by section 
3109(b) of title 5, United States Code (but at rates for individuals 
not to exceed the daily equivalent of the rate of pay for level 4 of 
the Senior Executive Service Schedule under section 5382 of title 5, 
United States Code).
    ``(2) The National Council may--
            ``(A) accept voluntary and uncompensated services, 
        notwithstanding the provisions of section 1342 of title 31, 
        United States Code;
            ``(B) in the name of the Council, solicit, accept, employ, 
        and dispose of, in furtherance of this Act, any money or 
        property, real or personal, or mixed, tangible or nontangible, 
        received by gift, devise, bequest, or otherwise; and
            ``(C) enter into contracts and cooperative agreements with 
        Federal and State agencies, private firms, institutions, and 
        individuals for the conduct of research and surveys, 
        preparation of reports and other activities necessary to the 
        discharge of the Council's duties and responsibilities.
    ``(3) Not more than 10 per centum of the total amounts available to 
the National Council in each fiscal year may be used for official 
representation and reception.
    ``(c) The Administrator of General Services shall provide to the 
National Council on a reimbursable basis such administrative support 
services as the Council may request.
    ``(d)(1) It shall be the duty of the Secretary of the Treasury to 
invest such portion of the amounts made available under subsection 
(a)(2)(B) as is not, in the Secretary's judgment, required to meet 
current withdrawals. Such investments may be made only in interest-
bearing obligations of the United States or in obligations guaranteed 
as to both principal and interest by the United States.
    ``(2) The amounts described in paragraph (1), and the interest on, 
and the proceeds from the sale or redemption of, the obligations 
described in paragraph (1) shall be available to the National Council 
to carry out this title.

              ``administrative powers of national council

    ``Sec. 404. (a) The National Council may prescribe such bylaws and 
rules as may be necessary to carry out its duties under this title.
    ``(b) The National Council may hold such hearings, sit and act at 
such times and places, take such testimony, and receive such evidence 
as it deems advisable.
    ``(c) The National Council may appoint advisory committees to 
assist the National Council in carrying out its duties. The members 
thereof shall serve without compensation.
    ``(d) The National Council may use the United States mails in the 
same manner and upon the same conditions as other departments and 
agencies of the United States.
    ``(e) The National Council may use, with the consent of the 
agencies represented on the Interagency Disability Coordinating 
Council, and as authorized in title V, such services, personnel, 
information, and facilities as may be needed to carry out its duties 
under this title, with or without reimbursement to such agencies.

                   ``authorization of appropriations

    ``Sec. 405. There are authorized to be appropriated to carry out 
this title such sums as may be necessary for each of the fiscal years 
1998 through 2004.''.

SEC. 608. RIGHTS AND ADVOCACY.

    (a) Conforming Amendments to Rights and Advocacy Provisions.--
            (1) Employment.--Section 501 (29 U.S.C. 791) is amended--
                    (A) in the third sentence of subsection (a), by 
                striking ``President's Committees on Employment of the 
                Handicapped'' and inserting ``President's Committees on 
                Employment of People With Disabilities''; and
                    (B) in subsection (e), by striking ``individualized 
                written rehabilitation program'' and inserting 
                ``individualized rehabilitation employment plan''.
            (2) Access board.--Section 502 (29 U.S.C. 792) is amended--
                    (A) in subsection (a)(1), in the sentence following 
                subparagraph (B), by striking ``Chairperson'' and 
                inserting ``chairperson'';
                    (B) in subsection (b)--
                            (i) in paragraph (9), by striking ``; and'' 
                        and inserting a semicolon;
                            (ii) in paragraph (10), by striking the 
                        period and inserting ``; and''; and
                            (iii) by adding at the end the following:
            ``(11) carry out the responsibilities specified for the 
        Access Board in section 508'';
                    (C) in subsection (d)(2)(A), by inserting before 
                the semicolon the following: ``and section 
                508(d)(2)(C)'';
                    (D) in subsection (g)(2), by striking ``Committee 
                on Education and Labor'' and inserting ``Committee on 
                Education and the Workforce''; and
                    (E) in subsection (i), by striking ``fiscal years 
                1993 through 1997'' and inserting ``fiscal years 1998 
                through 2004''.
            (3) Federal grants and contracts.--Section 504(a) (29 
        U.S.C. 794(a)) is amended in the first sentence by striking 
        ``section 7(8)'' and inserting ``section 7(20)''.
            (4) Secretarial responsibilities.--Section 506(a) (29 
        U.S.C. 794b(a)) is amended--
                    (A) by striking the second sentence and inserting 
                the following: ``Any concurrence of the Access Board 
                under paragraph (2) shall reflect its consideration of 
                cost studies carried out by States.''; and
                    (B) in the second sentence of subsection (c), by 
                striking ``provided under this paragraph'' and 
                inserting ``provided under this subsection''.
    (b) Electronic and Information Technology Regulations.--Section 508 
(29 U.S.C. 794d) is amended to read as follows:

``SEC. 508. ELECTRONIC AND INFORMATION TECHNOLOGY.

    ``(a) Requirements for Federal Departments and Agencies.--
            ``(1) Accessibility.--Each Federal department or agency 
        shall procure, maintain, and use (unless such procurement, 
        maintenance, or use is not practicable) electronic and 
        information technology that allows, regardless of the type of 
        medium of the technology, individuals with disabilities to have 
        access to and use information and data that is comparable to 
        the information and data that is accessible to and used by 
        individuals who are not individuals with disabilities.
            ``(2) Electronic and information technology standards.--
                    ``(A) In general.--Not later than 18 months after 
                the date of enactment of the Rehabilitation Act 
                Amendments of 1998, the Architectural and 
                Transportation Barriers Compliance Board (referred to 
                in this section as the `Access Board'), after 
                consultation with the Secretary of Education, the 
                Administrator of General Services, the Director of the 
                Office of Management and Budget, the Secretary of 
                Commerce, the Chairman of the Federal Communications 
                Commission, and the head of any other Federal 
                department or agency that the Access Board determines 
                to be appropriate, including consultation on relevant 
                research findings, and after consultation with the 
                electronic and information technology industry and 
                appropriate public or nonprofit agencies or 
                organizations, shall issue and publish standards 
                setting forth--
                            ``(i) for purposes of this section, a 
                        definition of electronic and information 
                        technology that is consistent with the 
                        definition of information technology in section 
                        5002 of the Clinger-Cohen Act of 1996 (Public 
                        Law 104-106; 110 Stat. 679); and
                            ``(ii) the technical and functional 
                        performance criteria necessary to implement the 
                        requirements set forth in paragraph (1).
                    ``(B) Review and amendment.--The Access Board shall 
                periodically review and, as appropriate, amend the 
                standards required under subparagraph (A) to reflect 
                technological advances or changes in electronic and 
                information technology.
            ``(3) Incorporation of standards.--Not later than 6 months 
        after the Access Board publishes the standards required under 
        paragraph (2), the Federal Acquisition Regulatory Council shall 
        revise the Federal Acquisition Regulation and each Federal 
        department or agency shall revise the Federal procurement 
        policies and directives under the control of the department or 
        agency to incorporate those standards.
    ``(b) Technical Assistance.--The Administrator of General Services 
and the Access Board shall provide technical assistance to individuals 
and Federal departments and agencies concerning the requirements of 
this section.
    ``(c) Agency Evaluations.--Not later than 6 months after the date 
of enactment of the Rehabilitation Act Amendments of 1998, the head of 
each Federal department or agency shall evaluate the extent to which 
the electronic and information technology of the department or agency 
is accessible to individuals with disabilities, and submit a report 
containing the evaluation to the Attorney General.
    ``(d) Reports.--
            ``(1) Interim report.--Not later than 18 months after the 
        date of enactment of the Rehabilitation Act Amendments of 1998, 
        the Attorney General shall prepare and submit to the President 
        a report containing information on and recommendations 
        regarding the state of electronic and information technology 
        accessibility in the Federal Government for individuals with 
        disabilities.
            ``(2) Biennial reports.--Not later than 3 years after the 
        date of enactment of the Rehabilitation Act Amendments of 1998, 
        and every 2 years thereafter, the Attorney General shall 
        prepare and submit to the President and Congress a report 
        containing information on and recommendations regarding the 
        state of Federal department and agency compliance with the 
        requirements of this section, including actions regarding 
        individual complaints under subsection (f).
    ``(e) Cooperation.--Each head of a Federal department or agency 
(including the Access Board, the Equal Employment Opportunity 
Commission, and the General Services Administration) shall provide the 
Attorney General with such information as the Attorney General 
determines is necessary to conduct the evaluations under subsection (c) 
and prepare the reports under subsection (d).
    ``(f) Enforcement.--
            ``(1) General.--Any individual with a disability, including 
        a Federal employee or a person served by a Federal agency, may 
        file a complaint alleging that a procurement action initiated 
        after the date described in paragraph (4) fails to comply with 
        subsection (a)(1).
            ``(2) Administrative complaints.--Complaints filed under 
        paragraph (1) shall be filed with the Federal department or 
        agency alleged to be in noncompliance. The Federal department 
        or agency receiving the complaint shall apply the complaint 
        procedures established to implement section 504 for resolving 
        allegations of discrimination in a federally conducted program 
        or activity.
            ``(3) Civil actions.--The remedies, procedures, and rights 
        set forth in sections 505(a)(2) and 505(b) shall be the 
        remedies, procedures, and rights available to any individual 
        alleging that a procurement action initiated after the date 
        described in paragraph (4) fails to comply with subsection 
        (a)(1).
            ``(4) Application.--This subsection shall apply to Federal 
        departments and agencies on the date of publication of the 
        standards issued pursuant to subsection (a)(2)(A).
    ``(g) Relationship to Other Federal Laws.--This section shall not 
be construed to limit any right, remedy, or procedure otherwise 
available under any provision of Federal law (including sections 501 
through 505) that provides greater or equal protection for the rights 
of individuals with disabilities than this section.''.
    (c) Protection and Advocacy of Individual Rights.--Section 509 (29 
U.S.C. 794e) is amended to read as follows:

``SEC. 509. PROTECTION AND ADVOCACY OF INDIVIDUAL RIGHTS.

    ``(a) Purpose.--The purpose of this section is to support a system 
in each State to protect the legal and human rights of individuals with 
disabilities who--
            ``(1) need services that are beyond the scope of services 
        authorized to be provided by the client assistance program 
        under section 112; and
            ``(2) are ineligible for protection and advocacy programs 
        under part C of the Developmental Disabilities Assistance and 
        Bill of Rights Act (42 U.S.C. 6041 et seq.) because the 
        individuals do not have a developmental disability, as defined 
        in section 102 of such Act (42 U.S.C. 6002) and the Protection 
        and Advocacy for Mentally Ill Individuals Act of 1986 (42 
        U.S.C. 10801 et seq.) because the individuals are not 
        individuals with mental illness, as defined in section 102 of 
        such Act (42 U.S.C. 10802).
    ``(b) Appropriations Less Than $5,500,000.--For any fiscal year in 
which the amount appropriated to carry out this section is less than 
$5,500,000, the Commissioner may make grants from such amount to 
eligible systems within States to plan for, develop outreach strategies 
for, and carry out protection and advocacy programs authorized under 
this section for individuals with disabilities who meet the 
requirements of paragraphs (1) and (2) of subsection (a).
    ``(c) Appropriations of $5,500,000 or More.--
            ``(1) Reservations.--
                    ``(A) Technical assistance.--For any fiscal year in 
                which the amount appropriated to carry out this section 
                equals or exceeds $5,500,000, the Commissioner shall 
                set aside not less than 1.8 percent and not more than 
                2.2 percent of the amount to provide training and 
                technical assistance to the systems established under 
                this section.
                    ``(B) Grant for the eligible system serving the 
                american indian consortium.--For any fiscal year in 
                which the amount appropriated to carry out this section 
                equals or exceeds $10,500,000, the Commissioner shall 
                reserve a portion, and use the portion to make a grant 
                for the eligible system serving the American Indian 
                consortium. The Commission shall make the grant in an 
                amount of not less than $50,000 for the fiscal year.
            ``(2) Allotments.--For any such fiscal year, after the 
        reservations required by paragraph (1) have been made, the 
        Commissioner shall make allotments from the remainder of such 
        amount in accordance with paragraph (3) to eligible systems 
        within States to enable such systems to carry out protection 
        and advocacy programs authorized under this section for such 
        individuals.
            ``(3) Systems within states.--
                    ``(A) Population basis.--Except as provided in 
                subparagraph (B), from such remainder for each such 
                fiscal year, the Commissioner shall make an allotment 
                to the eligible system within a State of an amount 
                bearing the same ratio to such remainder as the 
                population of the State bears to the population of all 
                States.
                    ``(B) Minimums.--Subject to the availability of 
                appropriations to carry out this section, and except as 
                provided in paragraph (4), the allotment to any system 
                under subparagraph (A) shall be not less than $100,000 
                or one-third of one percent of the remainder for the 
                fiscal year for which the allotment is made, whichever 
                is greater, and the allotment to any system under this 
                section for any fiscal year that is less than $100,000 
                or one-third of one percent of such remainder shall be 
                increased to the greater of the two amounts.
            ``(4) Systems within other jurisdictions.--
                    ``(A) In general.--For the purposes of paragraph 
                (3)(B), Guam, American Samoa, the United States Virgin 
                Islands, and the Commonwealth of the Northern Mariana 
                Islands shall not be considered to be States.
                    ``(B) Allotment.--The eligible system within a 
                jurisdiction described in subparagraph (A) shall be 
                allotted under paragraph (3)(A) not less than $50,000 
                for the fiscal year for which the allotment is made.
            ``(5) Adjustment for inflation.--For any fiscal year, 
        beginning in fiscal year 1999, in which the total amount 
        appropriated to carry out this section exceeds the total amount 
        appropriated to carry out this section for the preceding fiscal 
        year, the Commissioner shall increase each of the minimum 
        grants or allotments under paragraphs (1)(B), (3)(B), and 
        (4)(B) by a percentage that shall not exceed the percentage 
        increase in the total amount appropriated to carry out this 
        section between the preceding fiscal year and the fiscal year 
        involved.
    ``(d) Proportional Reduction.--To provide minimum allotments to 
systems within States (as increased under subsection (c)(5)) under 
subsection (c)(3)(B), or to provide minimum allotments to systems 
within States (as increased under subsection (c)(5)) under subsection 
(c)(4)(B), the Commissioner shall proportionately reduce the allotments 
of the remaining systems within States under subsection (c)(3), with 
such adjustments as may be necessary to prevent the allotment of any 
such remaining system within a State from being reduced to less than 
the minimum allotment for a system within a State (as increased under 
subsection (c)(5)) under subsection (c)(3)(B), or the minimum allotment 
for a State (as increased under subsection (c)(5)) under subsection 
(c)(4)(B), as appropriate.
    ``(e) Reallotment.--Whenever the Commissioner determines that any 
amount of an allotment to a system within a State for any fiscal year 
described in subsection (c)(1) will not be expended by such system in 
carrying out the provisions of this section, the Commissioner shall 
make such amount available for carrying out the provisions of this 
section to one or more of the systems that the Commissioner determines 
will be able to use additional amounts during such year for carrying 
out such provisions. Any amount made available to a system for any 
fiscal year pursuant to the preceding sentence shall, for the purposes 
of this section, be regarded as an increase in the allotment of the 
system (as determined under the preceding provisions of this section) 
for such year.
    ``(f) Application.--In order to receive assistance under this 
section, an eligible system shall submit an application to the 
Commissioner, at such time, in such form and manner, and containing 
such information and assurances as the Commissioner determines 
necessary to meet the requirements of this section, including 
assurances that the eligible system will--
            ``(1) have in effect a system to protect and advocate the 
        rights of individuals with disabilities;
            ``(2) have the same general authorities, including access 
        to records and program income, as are set forth in part C of 
        the Developmental Disabilities Assistance and Bill of Rights 
        Act (42 U.S.C. 6041 et seq.);
            ``(3) have the authority to pursue legal, administrative, 
        and other appropriate remedies or approaches to ensure the 
        protection of, and advocacy for, the rights of such individuals 
        within the State or the American Indian consortium who are 
        individuals described in subsection (a);
            ``(4) provide information on and make referrals to programs 
        and services addressing the needs of individuals with 
        disabilities in the State or the American Indian consortium;
            ``(5) develop a statement of objectives and priorities on 
        an annual basis, and provide to the public, including 
        individuals with disabilities and, as appropriate, the 
        individuals' representatives, an opportunity to comment on the 
        objectives and priorities established by, and activities of, 
        the system including--
                    ``(A) the objectives and priorities for the 
                activities of the system for each year and the 
                rationale for the establishment of such objectives and 
                priorities; and
                    ``(B) the coordination of programs provided through 
                the system under this section with the advocacy 
                programs of the client assistance program under section 
                112, the State long-term care ombudsman program 
                established under the Older Americans Act of 1965 (42 
                U.S.C. 3001 et seq.), the Developmental Disabilities 
                Assistance and Bill of Rights Act (42 U.S.C. 6000 et 
                seq.), and the Protection and Advocacy for Mentally Ill 
                Individuals Act of 1986 (42 U.S.C. 10801 et seq.);
            ``(6) establish a grievance procedure for clients or 
        prospective clients of the system to ensure that individuals 
        with disabilities are afforded equal opportunity to access the 
        services of the system;
            ``(7) provide assurances to the Commissioner that funds 
        made available under this section will be used to supplement 
        and not supplant the non-Federal funds that would otherwise be 
        made available for the purpose for which Federal funds are 
        provided; and
            ``(8) not use allotments or grants provided under this 
        section in a manner inconsistent with section 5 of the Assisted 
        Suicide Funding Restriction Act of 1997.
    ``(g) Carryover and Direct Payment.--
            ``(1) Direct payment.--Notwithstanding any other provision 
        of law, the Commissioner shall pay directly to any system that 
        complies with the provisions of this section, the amount of the 
        allotment of the State or the grant for the eligible system 
        that serves the American Indian consortium involved under this 
        section, unless the State or American Indian consortium 
        provides otherwise.
            ``(2) Carryover.--Any amount paid to an eligible system 
        that serves a State or American Indian consortium for a fiscal 
        year that remains unobligated at the end of such year shall 
        remain available to such system that serves the State or 
        American Indian consortium for obligation during the next 
        fiscal year for the purposes for which such amount was paid.
    ``(h) Limitation on Disclosure Requirements.--For purposes of any 
audit, report, or evaluation of the performance of the program 
established under this section, the Commissioner shall not require such 
a program to disclose the identity of, or any other personally 
identifiable information related to, any individual requesting 
assistance under such program.
    ``(i) Administrative Cost.--In any State in which an eligible 
system is located within a State agency, a State may use a portion of 
any allotment under subsection (c) for the cost of the administration 
of the system required by this section. Such portion may not exceed 5 
percent of the allotment.
    ``(j) Delegation.--The Commissioner may delegate the administration 
of this program to the Commissioner of the Administration on 
Developmental Disabilities within the Department of Health and Human 
Services.
    ``(k) Report.--The Commissioner shall annually prepare and submit 
to the Committee on Education and the Workforce of the House of 
Representatives and the Committee on Labor and Human Resources of the 
Senate a report describing the types of services and activities being 
undertaken by programs funded under this section, the total number of 
individuals served under this section, the types of disabilities 
represented by such individuals, and the types of issues being 
addressed on behalf of such individuals.
    ``(l) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for each of the fiscal years 1998 through 2004.
    ``(m) Definitions.--As used in this section:
            ``(1) Eligible system.--The term `eligible system' means a 
        protection and advocacy system that is established under part C 
        of the Developmental Disabilities Assistance and Bill of Rights 
        Act (42 U.S.C. 6041 et seq.) and that meets the requirements of 
        subsection (f).
            ``(2) American indian consortium.--The term `American 
        Indian consortium' means a consortium established as described 
        in section 142 of the Developmental Disabilities Assistance and 
        Bill of Rights Act (42 U.S.C. 6042).''.

SEC. 609. EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS WITH DISABILITIES.

    Title VI of the Rehabilitation Act of 1973 (29 U.S.C. 795 et seq.) 
is amended to read as follows:

 ``TITLE VI--EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS WITH DISABILITIES

``SEC. 601. SHORT TITLE.

    ``This title may be cited as the `Employment Opportunities for 
Individuals With Disabilities Act'.

``PART A--PROJECTS IN TELECOMMUTING AND SELF-EMPLOYMENT FOR INDIVIDUALS 
                           WITH DISABILITIES

``SEC. 611. FINDINGS, POLICIES, AND PURPOSES.

    ``(a) Findings.--Congress makes the following findings:
            ``(1) It is in the best interest of the United States to 
        identify and promote increased employment opportunities for 
        individuals with disabilities.
            ``(2) Telecommuting is one of the most rapidly expanding 
        forms of employment. In 1990 there were 4,000,000 telecommuters 
        and that number has risen to 11,100,000 in 1997.
            ``(3) It is in the best interest of the United States to 
        ensure that individuals with disabilities have access to 
        telecommuting employment opportunities. It has been estimated 
        that 10 percent of individuals with disabilities, who are 
        unemployed, could benefit from telecommuting opportunities.
            ``(4) It is in the interest of employers to recognize that 
        individuals with disabilities are excellent candidates for 
        telecommuting employment opportunities.
            ``(5) Individuals with disabilities, especially those 
        living in rural areas, often do not have access to accessible 
        transportation, and in such cases telecommuting presents an 
        excellent opportunity for the employment of such individuals.
            ``(6) It is in the best interests of economic development 
        agencies, venture capitalists, and financial institutions for 
        the Federal Government to demonstrate that individuals with 
        disabilities, who wish to become or who are self-employed, can 
        meet the criteria for assistance, investment of capital, and 
        business that other entrepreneurs meet.
    ``(b) Policies.--It is the policy of the United States to--
            ``(1) promote opportunities for individuals with 
        disabilities to--
                    ``(A) secure, retain, regain, or advance in 
                employment involving telecommuting;
                    ``(B) gain access to employment opportunities; and
                    ``(C) demonstrate their abilities, capabilities, 
                interests, and preferences regarding employment in 
                positions that are increasingly being offered to 
                individuals in the workplace; and
            ``(2) promote opportunities for individuals with 
        disabilities to engage in self-employment enterprises that 
        permit these individuals to achieve significant levels of 
        independence, participate in and contribute to the life of 
        their communities, and offer employment opportunities to 
        others.
    ``(c) Purposes.--It is the purpose of this part to--
            ``(1) through the awarding of 1-time, time-limited grants, 
        contracts, or cooperative agreements to public and private 
        entities--
                    ``(A) provide funds, in accordance with section 
                612, to enable individuals with disabilities to 
                identify and secure employment opportunities involving 
                telecommuting; and
                    ``(B) encourage employers to become partners in 
                providing telecommuting placements for individuals with 
                disabilities through the involvement of such employers 
                in telecommuting projects that continue and expand 
                opportunities for the provision of telecommuting 
                placements to individuals with disabilities beyond 
                those opportunities that are currently facilitated by 
                the telecommuting projects; and
            ``(2) through the awarding of 1-time, time-limited grants, 
        contracts, cooperative agreements, or other appropriate 
        mechanisms of providing assistance to public or private 
        entities--
                    ``(A) assist individuals with disabilities to 
                engage in self-employment enterprises in accordance 
                with section 613; and
                    ``(B) encourage entities to assist more individuals 
                with disabilities to engage in self-employment 
                enterprises.

``SEC. 612. PROJECTS IN TELECOMMUTING FOR INDIVIDUALS WITH 
              DISABILITIES.

    ``(a) In General.--The Commissioner shall, on a competitive basis, 
award 1-time, time-limited grants, contracts, or cooperative agreements 
to eligible entities for the establishment and operation of projects in 
telecommuting for individuals with disabilities.
    ``(b) Eligible Entities.--To be eligible to receive a grant, 
contract, or cooperative agreement under subsection (a) an entity 
shall--
            ``(1) be--
                    ``(A) an entity carrying out a Project With 
                Industry described in part B;
                    ``(B) a designated State agency;
                    ``(C) a statewide workforce investment partnership 
                or local workforce investment partnership;
                    ``(D) a public educational agency;
                    ``(E) a training institution, which may include an 
                institution of higher education;
                    ``(F) a private organization, with priority given 
                to organizations of or for individuals with 
                disabilities;
                    ``(G) a public or private employer;
                    ``(H) any other entity that the Commissioner 
                determines to be appropriate; or
                    ``(I) a combination or consortium of the entities 
                described in subparagraphs (A) through (H);
            ``(2) have 3 or more years of experience in assisting 
        individuals with disabilities in securing, retaining, 
        regaining, or advancing in employment;
            ``(3) demonstrate that such entity has the capacity to 
        secure full- and part-time employment involving telecommuting 
        for individuals with disabilities; and
            ``(4) submit an application that meets the requirements of 
        subsection (c).
    ``(c) Application Requirements.--To be eligible to receive a grant, 
contract, or cooperative agreement under subsection (a), an entity 
shall submit to the Commissioner at such time, in such manner, and 
containing such information concerning the telecommuting project to be 
funded under the grant, contract, or agreement as the Commissioner may 
require, including--
            ``(1) a description of how and the extent to which the 
        applicant meets the requirement of subsection (b)(2);
            ``(2) with respect to any partners who will participate in 
        the implementation of activities under the telecommuting 
        project, a description of--
                    ``(A) the identity of such partners; and
                    ``(B) the roles and responsibilities of each 
                partner in preparing the application, and if funded, 
                the roles and responsibility of each partner during the 
                telecommuting project;
            ``(3) a description of the geographic region that will be 
        the focus of activity under the telecommuting project;
            ``(4) a projection for each year of a 3-year period of the 
        grant, contract, or agreement, of the number of individuals 
        with disabilities who will be employed as the result of the 
        assistance provided by the telecommuting project;
            ``(5) with respect to any employers that have indicated an 
        interest in offering telecommuting employment opportunities to 
        individuals with disabilities, a description of--
                    ``(A) the identity of such employers; and
                    ``(B) the manner in which additional employers 
                would be recruited under the telecommuting project;
            ``(6) a description of the manner in which individuals with 
        disabilities will be identified and selected to participate in 
        the telecommuting project;
            ``(7) a description of the jobs that will be targeted by 
        the telecommuting project;
            ``(8) a description of the process by which individuals 
        with disabilities will be matched with employers for 
        telecommuting placements;
            ``(9) a description of the manner in which the project will 
        become self-sustaining in the third year of the telecommuting 
        project; and
            ``(10) a description of the nature and amount of funding, 
        including in-kind support, other than funds received under this 
        part, that will be available to be used by the telecommuting 
        project.
    ``(d) Use of Funds.--Amounts received under a grant, contract, or 
cooperative agreement under subsection (a) shall be used for--
            ``(1) the recruitment of individuals with disabilities for 
        telecommuting placements;
            ``(2) the conduct of marketing activities with respect to 
        employers;
            ``(3) the purchase of training services for an individual 
        with a disability who is going to assume a telecommuting 
        placement;
            ``(4) the purchase of equipment, materials, telephone 
        lines, auxiliary aids, and services related to telecommuting 
        placements;
            ``(5) the provision of orientation services and training to 
        the supervisors of employers participating in the project and 
        to co-workers of individuals with disabilities who are selected 
        for telecommuting placements;
            ``(6) the provision of technical assistance to employers, 
        including technical assistance regarding reasonable 
        accommodations with regard to individuals with disabilities 
        participating in telecommuting placements; and
            ``(7) other uses determined appropriate by the 
        Commissioner.
    ``(e) Project Requirements.--Telecommuting projects funded under 
this section shall--
            ``(1) establish criteria for safety with regard to the 
        telecommuting work space, which at a minimum meet guidelines 
        established by the Occupational Safety and Health 
        Administration for a work space of comparable size and 
        function;
            ``(2) on an annual basis, enter into agreements with the 
        Commissioner that contain goals concerning the number of 
        individuals with disabilities that the project will place in 
        telecommuting positions;
            ``(3) establish procedures for ensuring that prospective 
        employers and individuals with disabilities, who are to assume 
        telecommuting placements, have a clear understanding of how the 
        individual's work performance will be monitored and evaluated 
        by the employer;
            ``(4) identify and make available support services for 
        individuals with disabilities in telecommuting placements;
            ``(5) develop procedures that allow the telecommuting 
        project, the employer, and the individual with a disability to 
        reach agreement on their respective responsibilities with 
        regard to establishing and maintaining the telecommuting 
        placement; and
            ``(6) for each year of a telecommuting project, submit an 
        annual report to the Commissioner concerning--
                    ``(A) the number of individuals with disabilities 
                placed in telecommuting positions and whether the goal 
                described in the agreement entered into under paragraph 
                (2) was met;
                    ``(B) the number of individuals with disabilities 
                employed as salaried employees and their annual 
                salaries;
                    ``(C) the number of individuals with disabilities 
                employed as independent contractors and their annual 
                incomes;
                    ``(D) the number of individuals with disabilities 
                that received benefits from their employers;
                    ``(E) the number of individuals with disabilities 
                in telecommuting placements still working after--
                            ``(i) 6 months; and
                            ``(ii) 12 months; and
                    ``(F) any reports filed with the Occupational 
                Safety and Health Administration.
    ``(f) Limitations.--
            ``(1) Period of award.--A grant, contract, or cooperative 
        agreement under subsection (a) shall be for a 3-year period.
            ``(2) Amount.--The amount of a grant, contract, or 
        cooperative agreement under subsection (a) shall not be less 
        than $250,000 nor more than $1,000,000.

``SEC. 613. PROJECTS IN SELF-EMPLOYMENT FOR INDIVIDUALS WITH 
              DISABILITIES.

    ``(a) In General.--The Commissioner shall, on a competitive basis, 
award 1-time, time-limited grants, contracts, or cooperative agreements 
to eligible entities for the establishment and operation of projects in 
self-employment for individuals with disabilities.
    ``(b) Eligible Entities.--To be eligible to receive a grant, 
contract, or cooperative agreement under subsection (a) an entity 
shall--
            ``(1) be--
                    ``(A) a financial institution;
                    ``(B) an economic development agency;
                    ``(C) a venture capitalist;
                    ``(D) an entity carrying out a Project With 
                Industry described in part B;
                    ``(E) a designated State agency, or other public 
                entity;
                    ``(F) a private organization, including employers 
                and organizations related to individuals with 
                disabilities;
                    ``(G) any other entity that the Commissioner 
                determines to be appropriate; or
                    ``(H) a combination or consortium of the entities 
                described in subparagraphs (A) through (G);
            ``(2) demonstrate that such entity has the capacity to 
        assist clients, including clients with disabilities, to 
        successfully engage in self-employment enterprises; and
            ``(3) submit an application that meets the requirements of 
        subsection (c).
    ``(c) Application Requirements.--To be eligible to receive a grant, 
contract, or cooperative agreement under subsection (a), an entity 
shall submit to the Commissioner at such time, in such manner, and 
containing such information concerning the self-employment project to 
be funded under the grant, contract, or agreement as the Commissioner 
may require, including--
            ``(1) a description of how and the extent to which the 
        applicant has assisted individuals, including individuals with 
        disabilities, if appropriate, to successfully engage in self-
        employment enterprises;
            ``(2) with respect to any partners who will participate in 
        the implementation of activities under the self-employment 
        project, a description of--
                    ``(A) the identity of such partners; and
                    ``(B) the roles and responsibilities of each 
                partner in preparing the application, and if funded, 
                the roles and responsibility of each partner during the 
                self-employment project;
            ``(3) a description of the geographic region that will be 
        the focus of activity in the self-employment project;
            ``(4) a projection for each year of a 3-year period of the 
        grant, contract, or agreement, of the number of clients who 
        will be assisted to engage in self-employment enterprises 
        through the self-employment project;
            ``(5) a description of the manner in which potential 
        clients will be identified and selected to be assisted by the 
        self-employment project;
            ``(6) a description of the manner in which self-employment 
        enterprises (or market niches) will be identified for the 
        geographic areas to be targeted in the self-employment project;
            ``(7) a description of the process by which prospective 
        clients will be matched with self-employment opportunities;
            ``(8) a description of the manner in which the project will 
        become self-sustaining in the third year of the self-employment 
        project; and
            ``(9) a description of the nature and amount of funding, 
        including in-kind support, other than funds received under this 
        part, that will be available to be used during the self-
        employment project.
    ``(d) Use of Funds.--Amounts received under a grant, contract, or 
cooperative agreement under subsection (a) shall be used--
            ``(1) for the preparation of marketing analyses to identify 
        self-employment opportunities;
            ``(2) for the conduct of marketing activities with respect 
        to financial institutions or venture capitalists concerning the 
        benefits of investing in individuals with disabilities who are 
        engaged in self-employment enterprises;
            ``(3) for the conduct of marketing activities with respect 
        to potential clients who engage in or might engage in self-
        employment enterprises;
            ``(4) for the provision of training for clients to be 
        assisted through the project who seek to engage or are engaging 
        in self-employment enterprises;
            ``(5) to cover the costs of business expenses specifically 
        related to an individual's disability;
            ``(6) to provide assistance for clients in developing 
        business plans for capital investment;
            ``(7) to provide assistance for clients in securing capital 
        to engage in a self-employment enterprise;
            ``(8) to provide technical assistance to clients engaged in 
        self-employment enterprises who seek such assistance in order 
        to sustain or expand their enterprises; and
            ``(9) for other uses as determined appropriate by the 
        Commissioner.
    ``(e) Project Requirements.--Self-employment projects funded under 
this section shall--
            ``(1) establish criteria for and apply such criteria in 
        selecting clients to be assisted through the project;
            ``(2) on an annual basis, enter into agreements with the 
        Commissioner that contain goals concerning the number of 
        individuals with disabilities that the project will assist in 
        starting and sustaining self-employment enterprises;
            ``(3) establish and apply criteria to determine whether an 
        enterprise is a viable option in which to invest project funds;
            ``(4) establish and apply criteria to determine when and if 
        the project would provide assistance in sustaining an ongoing 
        enterprise engaged in by a client or potential client;
            ``(5) establish and apply criteria to determine when and if 
        the project would provide assistance in expanding an ongoing 
        enterprise engaged in by a client or potential client;
            ``(6) establish and apply procedures to ensure that a 
        potential client has a clear understanding of the scope and 
        limits of assistance from the project that will be applicable 
        in such client's case;
            ``(7) develop procedures, which include a written 
        agreement, that provide for the documentation of the respective 
        responsibilities of the self-employment project and any client 
        with regard to the creation, maintenance, or expansion of the 
        client's self-employment enterprise; and
            ``(8) with respect to the project, submit a report to the 
        Commissioner--
                    ``(A) for each project year, concerning the number 
                of clients assisted by the project who are engaging in 
                self-employment enterprises and whether the goal 
                described in the agreement entered into under paragraph 
                (2) was met; and
                    ``(B) concerning the number of clients assisted by 
                the project who are still engaged in such an enterprise 
                on the date that is--
                            ``(i) 6 months after the date on which 
                        assistance provided by the project was 
                        terminated; and
                            ``(ii) 12 months after the date on which 
                        assistance provided by the project was 
                        terminated.
    ``(f) Duration of Awards.--A grant, contract, or cooperative 
agreement under subsection (a) shall be for a 3-year period.
    ``(g) Definition.--For the purpose of this section, the term 
`client' means 1 or more individuals with disabilities who engage in or 
seek to engage in a self-employment enterprise.

``SEC. 614. DISCRETIONARY AUTHORITY FOR DUAL-PURPOSE APPLICATIONS.

    ``(a) In General.--The Commissioner may establish procedures to 
permit applicants for grants, contracts, or cooperative agreements 
under this part to submit applications that serve dual purposes, so 
long as such applications meet the requirements of sections 612 and 
613.
    ``(b) Amount of Assistance.--In a case described in subsection (a), 
the minimum amount of a grant, contract, or cooperative agreement 
awarded under a dual-purpose application may, at the discretion of the 
Commissioner, exceed the limitations described in section 612(f)(2).

``SEC. 615. AUTHORIZATION OF APPROPRIATIONS.

    ``There is authorized to be appropriated to carry out this part, 
$10,000,000 for fiscal year 1998, and such sums as may be necessary for 
each of the fiscal years 1999 through 2004.

                    ``Part B--Projects With Industry

                        ``projects with industry

    ``Sec. 621. (a)(1) The purpose of this part is to create and expand 
job and career opportunities for individuals with disabilities in the 
competitive labor market by engaging the talent and leadership of 
private industry as partners in the rehabilitation process, to identify 
competitive job and career opportunities and the skills needed to 
perform such jobs, to create practical job and career readiness and 
training programs, and to provide job placements and career 
advancement.
    ``(2) The Commissioner, in consultation with the Secretary of Labor 
and with designated State units, may award grants to individual 
employers, community rehabilitation program providers, labor unions, 
trade associations, Indian tribes, tribal organizations, designated 
State units, and other entities to establish jointly financed Projects 
With Industry to create and expand job and career opportunities for 
individuals with disabilities, which projects shall--
            ``(A) provide for the establishment of business advisory 
        councils, that shall--
                    ``(i) be comprised of--
                            ``(I) representatives of private industry, 
                        business concerns, and organized labor;
                            ``(II) individuals with disabilities and 
                        representatives of individuals with 
                        disabilities; and
                            ``(III) a representative of the appropriate 
                        designated State unit;
                    ``(ii) identify job and career availability within 
                the community, consistent with the current and 
                projected local employment opportunities identified by 
                the local workforce investment partnership for the 
                community under section 308(e)(6) of the Workforce 
                Investment Partnership Act of 1998;
                    ``(iii) identify the skills necessary to perform 
                the jobs and careers identified; and
                    ``(iv) prescribe training programs designed to 
                develop appropriate job and career skills, or job 
                placement programs designed to identify and develop job 
                placement and career advancement opportunities, for 
                individuals with disabilities in fields related to the 
                job and career availability identified under clause 
                (ii);
            ``(B) provide job development, job placement, and career 
        advancement services;
            ``(C) to the extent appropriate, provide for--
                    ``(i) training in realistic work settings in order 
                to prepare individuals with disabilities for employment 
                and career advancement in the competitive market; and
                    ``(ii) the modification of any facilities or 
                equipment of the employer involved that are used 
                primarily by individuals with disabilities, except that 
                a project shall not be required to provide for such 
                modification if the modification is required as a 
                reasonable accommodation under the Americans with 
                Disabilities Act of 1990 (42 U.S.C. 12101 et seq.); and
            ``(D) provide individuals with disabilities with such 
        support services as may be required in order to maintain the 
        employment and career advancement for which the individuals 
        have received training under this part.
    ``(3)(A) An individual shall be eligible for services described in 
paragraph (2) if the individual is determined to be an individual 
described in section 102(a)(1), and if the determination is made in a 
manner consistent with section 102(a).
    ``(B) Such a determination may be made by the recipient of a grant 
under this part, to the extent the determination is appropriate and 
available and consistent with the requirements of section 102(a).
    ``(4) The Commissioner shall enter into an agreement with the grant 
recipient regarding the establishment of the project. Any agreement 
shall be jointly developed by the Commissioner, the grant recipient, 
and, to the extent practicable, the appropriate designated State unit 
and the individuals with disabilities (or the individuals' 
representatives) involved. Such agreements shall specify the terms of 
training and employment under the project, provide for the payment by 
the Commissioner of part of the costs of the project (in accordance 
with subsection (c)), and contain the items required under subsection 
(b) and such other provisions as the parties to the agreement consider 
to be appropriate.
    ``(5) Any agreement shall include a description of a plan to 
annually conduct a review and evaluation of the operation of the 
project in accordance with standards developed by the Commissioner 
under subsection (d), and, in conducting the review and evaluation, to 
collect data and information of the type described in subparagraphs (A) 
through (C) of section 101(a)(10), as determined to be appropriate by 
the Commissioner.
    ``(6) The Commissioner may include, as part of agreements with 
grant recipients, authority for such grant recipients to provide 
technical assistance to--
            ``(A) assist employers in hiring individuals with 
        disabilities; or
            ``(B) improve or develop relationships between--
                    ``(i) grant recipients or prospective grant 
                recipients; and
                    ``(ii) employers or organized labor; or
            ``(C) assist employers in understanding and meeting the 
        requirements of the Americans with Disabilities Act of 1990 (42 
        U.S.C. 12101 et seq.) as the Act relates to employment of 
        individuals with disabilities.
    ``(b) No payment shall be made by the Commissioner under any 
agreement with a grant recipient entered into under subsection (a) 
unless such agreement--
            ``(1) provides an assurance that individuals with 
        disabilities placed under such agreement shall receive at least 
        the applicable minimum wage;
            ``(2) provides an assurance that any individual with a 
        disability placed under this part shall be afforded terms and 
        benefits of employment equal to terms and benefits that are 
        afforded to the similarly situated nondisabled co-workers of 
        the individual, and that such individuals with disabilities 
        shall not be segregated from their co-workers; and
            ``(3) provides an assurance that an annual evaluation 
        report containing information specified under subsection (a)(5) 
        shall be submitted as determined to be appropriate by the 
        Commissioner.
    ``(c) Payments under this section with respect to any project may 
not exceed 80 per centum of the costs of the project.
    ``(d)(1) The Commissioner shall develop standards for the 
evaluation described in subsection (a)(5) and shall review and revise 
the evaluation standards as necessary, subject to paragraphs (2) and 
(3).
    ``(2) In revising the standards for evaluation to be used by the 
grant recipients, the Commissioner shall obtain and consider 
recommendations for such standards from State vocational rehabilitation 
agencies, current and former grant recipients, professional 
organizations representing business and industry, organizations 
representing individuals with disabilities, individuals served by grant 
recipients, organizations representing community rehabilitation program 
providers, and labor organizations.
    ``(3) No standards may be established under this subsection unless 
the standards are approved by the National Council on Disability. The 
Council shall be afforded adequate time to review and approve the 
standards.
    ``(e)(1)(A) A grant may be awarded under this section for a period 
of up to 5 years and such grant may be renewed.
    ``(B) Grants under this section shall be awarded on a competitive 
basis. To be eligible to receive such a grant, a prospective grant 
recipient shall submit an application to the Commissioner at such time, 
in such manner, and containing such information as the Commissioner may 
require.
    ``(2) The Commissioner shall, to the extent practicable, ensure an 
equitable distribution of payments made under this section among the 
States. To the extent funds are available, the Commissioner shall award 
grants under this section to new projects that will serve individuals 
with disabilities in States, portions of States, Indian tribes, or 
tribal organizations, that are currently unserved or underserved by 
projects.
    ``(f)(1) The Commissioner shall, as necessary, develop and publish 
in the Federal Register, in final form, indicators of what constitutes 
minimum compliance consistent with the evaluation standards under 
subsection (d)(1).
    ``(2) Each grant recipient shall report to the Commissioner at the 
end of each project year the extent to which the grant recipient is in 
compliance with the evaluation standards.
    ``(3)(A) The Commissioner shall annually conduct on-site compliance 
reviews of at least 15 percent of grant recipients. The Commissioner 
shall select grant recipients for review on a random basis.
    ``(B) The Commissioner shall use the indicators in determining 
compliance with the evaluation standards.
    ``(C) The Commissioner shall ensure that at least one member of a 
team conducting such a review shall be an individual who--
            ``(i) is not an employee of the Federal Government; and
            ``(ii) has experience or expertise in conducting projects.
    ``(D) The Commissioner shall ensure that--
            ``(i) a representative of the appropriate designated State 
        unit shall participate in the review; and
            ``(ii) no person shall participate in the review of a grant 
        recipient if--
                    ``(I) the grant recipient provides any direct 
                financial benefit to the reviewer; or
                    ``(II) participation in the review would give the 
                appearance of a conflict of interest.
    ``(4) In making a determination concerning any subsequent grant 
under this section, the Commissioner shall consider the past 
performance of the applicant, if applicable. The Commissioner shall use 
compliance indicators developed under this subsection that are 
consistent with program evaluation standards developed under subsection 
(d) to assess minimum project performance for purposes of making 
continuation awards in the third, fourth, and fifth years.
    ``(5) Each fiscal year the Commissioner shall include in the annual 
report to Congress required by section 13 an analysis of the extent to 
which grant recipients have complied with the evaluation standards. The 
Commissioner may identify individual grant recipients in the analysis. 
In addition, the Commissioner shall report the results of onsite 
compliance reviews, identifying individual grant recipients.
    ``(g) The Commissioner may provide, directly or by way of grant, 
contract, or cooperative agreement, technical assistance to--
            ``(1) entities conducting projects for the purpose of 
        assisting such entities in--
                    ``(A) the improvement of or the development of 
                relationships with private industry or labor; or
                    ``(B) the improvement of relationships with State 
                vocational rehabilitation agencies; and
            ``(2) entities planning the development of new projects.
    ``(h) As used in this section:
            ``(1) The term `agreement' means an agreement described in 
        subsection (a)(4).
            ``(2) The term `project' means a Project With Industry 
        established under subsection (a)(2).
            ``(3) The term `grant recipient' means a recipient of a 
        grant under subsection (a)(2).

                   ``authorization of appropriations

    ``Sec. 622. There are authorized to be appropriated to carry out 
the provisions of this part, such sums as may be necessary for each of 
fiscal years 1998 through 2004.

 ``Part C--Supported Employment Services for Individuals With the Most 
                        Significant Disabilities

``SEC. 631. PURPOSE.

    ``It is the purpose of this part to authorize allotments, in 
addition to grants for vocational rehabilitation services under title 
I, to assist States in developing collaborative programs with 
appropriate entities to provide supported employment services for 
individuals with the most significant disabilities to enable such 
individuals to achieve the employment outcome of supported employment.

``SEC. 632. ALLOTMENTS.

    ``(a) In General.--
            ``(1) States.--The Secretary shall allot the sums 
        appropriated for each fiscal year to carry out this part among 
        the States on the basis of relative population of each State, 
        except that--
                    ``(A) no State shall receive less than $250,000, or 
                one-third of one percent of the sums appropriated for 
                the fiscal year for which the allotment is made, 
                whichever is greater; and
                    ``(B) if the sums appropriated to carry out this 
                part for the fiscal year exceed by $1,000,000 or more 
                the sums appropriated to carry out this part in fiscal 
                year 1992, no State shall receive less than $300,000, 
                or one-third of one percent of the sums appropriated 
                for the fiscal year for which the allotment is made, 
                whichever is greater.
            ``(2) Certain territories.--
                    ``(A) In general.--For the purposes of this 
                subsection, Guam, American Samoa, the United States 
                Virgin Islands, and the Commonwealth of the Northern 
                Mariana Islands shall not be considered to be States.
                    ``(B) Allotment.--Each jurisdiction described in 
                subparagraph (A) shall be allotted not less than one-
                eighth of one percent of the amounts appropriated for 
                the fiscal year for which the allotment is made.
    ``(b) Reallotment.--Whenever the Commissioner determines that any 
amount of an allotment to a State for any fiscal year will not be 
expended by such State for carrying out the provisions of this part, 
the Commissioner shall make such amount available for carrying out the 
provisions of this part to one or more of the States that the 
Commissioner determines will be able to use additional amounts during 
such year for carrying out such provisions. Any amount made available 
to a State for any fiscal year pursuant to the preceding sentence 
shall, for the purposes of this section, be regarded as an increase in 
the allotment of the State (as determined under the preceding 
provisions of this section) for such year.

``SEC. 633. AVAILABILITY OF SERVICES.

    ``Funds provided under this part may be used to provide supported 
employment services to individuals who are eligible under this part. 
Funds provided under this part, or title I, may not be used to provide 
extended services to individuals who are eligible under this part or 
title I.

``SEC. 634. ELIGIBILITY.

    ``An individual shall be eligible under this part to receive 
supported employment services authorized under this Act if--
            ``(1) the individual is eligible for vocational 
        rehabilitation services;
            ``(2) the individual is determined to be an individual with 
        a most significant disability; and
            ``(3) a comprehensive assessment of rehabilitation needs of 
        the individual described in section 7(2)(B), including an 
        evaluation of rehabilitation, career, and job needs, identifies 
        supported employment as the appropriate employment outcome for 
        the individual.

``SEC. 635. STATE PLAN.

    ``(a) State Plan Supplements.--To be eligible for an allotment 
under this part, a State shall submit to the Commissioner, as part of 
the State plan under section 101, a State plan supplement for providing 
supported employment services authorized under this Act to individuals 
who are eligible under this Act to receive the services. Each State 
shall make such annual revisions in the plan supplement as may be 
necessary.
    ``(b) Contents.--Each such plan supplement shall--
            ``(1) designate each designated State agency as the agency 
        to administer the program assisted under this part;
            ``(2) summarize the results of the comprehensive, statewide 
        assessment conducted under section 101(a)(15)(A)(i), with 
        respect to the rehabilitation needs of individuals with 
        significant disabilities and the need for supported employment 
        services, including needs related to coordination;
            ``(3) describe the quality, scope, and extent of supported 
        employment services authorized under this Act to be provided to 
        individuals who are eligible under this Act to receive the 
        services and specify the goals and plans of the State with 
        respect to the distribution of funds received under section 
        632;
            ``(4) demonstrate evidence of the efforts of the designated 
        State agency to identify and make arrangements (including 
        entering into cooperative agreements) with other State agencies 
        and other appropriate entities to assist in the provision of 
        supported employment services;
            ``(5) demonstrate evidence of the efforts of the designated 
        State agency to identify and make arrangements (including 
        entering into cooperative agreements) with other public or 
        nonprofit agencies or organizations within the State, 
        employers, natural supports, and other entities with respect to 
        the provision of extended services;
            ``(6) provide assurances that--
                    ``(A) funds made available under this part will 
                only be used to provide supported employment services 
                authorized under this Act to individuals who are 
                eligible under this part to receive the services;
                    ``(B) the comprehensive assessments of individuals 
                with significant disabilities conducted under section 
                102(b)(1) and funded under title I will include 
                consideration of supported employment as an appropriate 
                employment outcome;
                    ``(C) an individualized rehabilitation employment 
                plan, as required by section 102, will be developed and 
                updated using funds under title I in order to--
                            ``(i) specify the supported employment 
                        services to be provided;
                            ``(ii) specify the expected extended 
                        services needed; and
                            ``(iii) identify the source of extended 
                        services, which may include natural supports, 
                        or to the extent that it is not possible to 
                        identify the source of extended services at the 
                        time the individualized rehabilitation 
                        employment plan is developed, a statement 
                        describing the basis for concluding that there 
                        is a reasonable expectation that such sources 
                        will become available;
                    ``(D) the State will use funds provided under this 
                part only to supplement, and not supplant, the funds 
                provided under title I, in providing supported 
                employment services specified in the individualized 
                rehabilitation employment plan;
                    ``(E) services provided under an individualized 
                rehabilitation employment plan will be coordinated with 
                services provided under other individualized plans 
                established under other Federal or State programs;
                    ``(F) to the extent jobs skills training is 
                provided, the training will be provided onsite; and
                    ``(G) supported employment services will include 
                placement in an integrated setting for the maximum 
                number of hours possible based on the unique strengths, 
                resources, priorities, concerns, abilities, 
                capabilities, interests, and informed choice of 
                individuals with the most significant disabilities;
            ``(7) provide assurances that the State agencies designated 
        under paragraph (1) will expend not more than 5 percent of the 
        allotment of the State under this part for administrative costs 
        of carrying out this part; and
            ``(8) contain such other information and be submitted in 
        such manner as the Commissioner may require.

``SEC. 636. RESTRICTION.

    ``Each State agency designated under section 635(b)(1) shall 
collect the information required by section 101(a)(10) separately for 
eligible individuals receiving supported employment services under this 
part and for eligible individuals receiving supported employment 
services under title I.

``SEC. 637. SAVINGS PROVISION.

    ``(a) Supported Employment Services.--Nothing in this Act shall be 
construed to prohibit a State from providing supported employment 
services in accordance with the State plan submitted under section 101 
by using funds made available through a State allotment under section 
110.
    ``(b) Postemployment Services.--Nothing in this part shall be 
construed to prohibit a State from providing discrete postemployment 
services in accordance with the State plan submitted under section 101 
by using funds made available through a State allotment under section 
110 to an individual who is eligible under this part.

``SEC. 638. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
such sums as may be necessary for each of fiscal years 1998 through 
2004.''.

SEC. 610. INDEPENDENT LIVING SERVICES AND CENTERS FOR INDEPENDENT 
              LIVING.

    Title VII of the Rehabilitation Act of 1973 (29 U.S.C. 796 et seq.) 
is amended to read as follows:

 ``TITLE VII--INDEPENDENT LIVING SERVICES AND CENTERS FOR INDEPENDENT 
                                 LIVING

         ``CHAPTER 1--INDIVIDUALS WITH SIGNIFICANT DISABILITIES

                      ``PART A--GENERAL PROVISIONS

``SEC. 701. PURPOSE.

    ``The purpose of this chapter is to promote a philosophy of 
independent living, including a philosophy of consumer control, peer 
support, self-help, self-determination, equal access, and individual 
and system advocacy, in order to maximize the leadership, empowerment, 
independence, and productivity of individuals with disabilities, and 
the integration and full inclusion of individuals with disabilities 
into the mainstream of American society, by--
            ``(1) providing financial assistance to States for 
        providing, expanding, and improving the provision of 
        independent living services;
            ``(2) providing financial assistance to develop and support 
        statewide networks of centers for independent living; and
            ``(3) providing financial assistance to States for 
        improving working relationships among State independent living 
        rehabilitation service programs, centers for independent 
        living, Statewide Independent Living Councils established under 
        section 705, State vocational rehabilitation programs receiving 
        assistance under title I, State programs of supported 
        employment services receiving assistance under part C of title 
        VI, client assistance programs receiving assistance under 
        section 112, programs funded under other titles of this Act, 
        programs funded under other Federal law, and programs funded 
        through non-Federal sources.

``SEC. 702. DEFINITIONS.

    ``As used in this chapter:
            ``(1) Center for independent living.--The term `center for 
        independent living' means a consumer-controlled, community-
        based, cross-disability, nonresidential private nonprofit 
        agency that--
                    ``(A) is designed and operated within a local 
                community by individuals with disabilities; and
                    ``(B) provides an array of independent living 
                services.
            ``(2) Consumer control.--The term `consumer control' means, 
        with respect to a center for independent living, that the 
        center vests power and authority in individuals with 
        disabilities.

``SEC. 703. ELIGIBILITY FOR RECEIPT OF SERVICES.

    ``Services may be provided under this chapter to any individual 
with a significant disability, as defined in section 7(21)(B).

``SEC. 704. STATE PLAN.

    ``(a) In General.--
            ``(1) Requirement.--To be eligible to receive financial 
        assistance under this chapter, a State shall submit to the 
        Commissioner, and obtain approval of, a State plan containing 
        such provisions as the Commissioner may require, including, at 
        a minimum, the provisions required in this section.
            ``(2) Joint development.--The plan under paragraph (1) 
        shall be jointly developed and signed by--
                    ``(A) the director of the designated State unit; 
                and
                    ``(B) the chairperson of the Statewide Independent 
                Living Council, acting on behalf of and at the 
                direction of the Council.
            ``(3) Periodic review and revision.--The plan shall provide 
        for the review and revision of the plan, not less than once 
        every 3 years, to ensure the existence of appropriate planning, 
        financial support and coordination, and other assistance to 
        appropriately address, on a statewide and comprehensive basis, 
        needs in the State for--
                    ``(A) the provision of State independent living 
                services;
                    ``(B) the development and support of a statewide 
                network of centers for independent living; and
                    ``(C) working relationships between--
                            ``(i) programs providing independent living 
                        services and independent living centers; and
                            ``(ii) the vocational rehabilitation 
                        program established under title I, and other 
                        programs providing services for individuals 
                        with disabilities.
            ``(4) Date of submission.--The State shall submit the plan 
        to the Commissioner 90 days before the completion date of the 
        preceding plan. If a State fails to submit such a plan that 
        complies with the requirements of this section, the 
        Commissioner may withhold financial assistance under this 
        chapter until such time as the State submits such a plan.
    ``(b) Statewide Independent Living Council.--The plan shall provide 
for the establishment of a Statewide Independent Living Council in 
accordance with section 705.
    ``(c) Designation of State Unit.--The plan shall designate the 
designated State unit of such State as the agency that, on behalf of 
the State, shall--
            ``(1) receive, account for, and disburse funds received by 
        the State under this chapter based on the plan;
            ``(2) provide administrative support services for a program 
        under part B, and a program under part C in a case in which the 
        program is administered by the State under section 723;
            ``(3) keep such records and afford such access to such 
        records as the Commissioner finds to be necessary with respect 
        to the programs; and
            ``(4) submit such additional information or provide such 
        assurances as the Commissioner may require with respect to the 
        programs.
    ``(d) Objectives.--The plan shall--
            ``(1) specify the objectives to be achieved under the plan 
        and establish timelines for the achievement of the objectives; 
        and
            ``(2) explain how such objectives are consistent with and 
        further the purpose of this chapter.
    ``(e) Independent Living Services.--The plan shall provide that the 
State will provide independent living services under this chapter to 
individuals with significant disabilities, and will provide the 
services to such an individual in accordance with an independent living 
plan mutually agreed upon by an appropriate staff member of the service 
provider and the individual, unless the individual signs a waiver 
stating that such a plan is unnecessary.
    ``(f) Scope and Arrangements.--The plan shall describe the extent 
and scope of independent living services to be provided under this 
chapter to meet such objectives. If the State makes arrangements, by 
grant or contract, for providing such services, such arrangements shall 
be described in the plan.
    ``(g) Network.--The plan shall set forth a design for the 
establishment of a statewide network of centers for independent living 
that comply with the standards and assurances set forth in section 725.
    ``(h) Centers.--In States in which State funding for centers for 
independent living equals or exceeds the amount of funds allotted to 
the State under part C, as provided in section 723, the plan shall 
include policies, practices, and procedures governing the awarding of 
grants to centers for independent living and oversight of such centers 
consistent with section 723.
    ``(i) Cooperation, Coordination, and Working Relationships Among 
Various Entities.--The plan shall set forth the steps that will be 
taken to maximize the cooperation, coordination, and working 
relationships among--
            ``(1) the independent living rehabilitation service 
        program, the Statewide Independent Living Council, and centers 
        for independent living; and
            ``(2) the designated State unit, other State agencies 
        represented on such Council, other councils that address the 
        needs of specific disability populations and issues, and other 
        public and private entities determined to be appropriate by the 
        Council.
    ``(j) Coordination of Services.--The plan shall describe how 
services funded under this chapter will be coordinated with, and 
complement, other services, in order to avoid unnecessary duplication 
with other Federal, State, and local programs.
    ``(k) Coordination Between Federal and State Sources.--The plan 
shall describe efforts to coordinate Federal and State funding for 
centers for independent living and independent living services.
    ``(l) Outreach.--With respect to services and centers funded under 
this chapter, the plan shall set forth steps to be taken regarding 
outreach to populations that are unserved or underserved by programs 
under this title, including minority groups and urban and rural 
populations.
    ``(m) Requirements.--The plan shall provide satisfactory assurances 
that all recipients of financial assistance under this chapter will--
            ``(1) notify all individuals seeking or receiving services 
        under this chapter about the availability of the client 
        assistance program under section 112, the purposes of the 
        services provided under such program, and how to contact such 
        program;
            ``(2) take affirmative action to employ and advance in 
        employment qualified individuals with disabilities on the same 
        terms and conditions required with respect to the employment of 
        such individuals under the provisions of section 503;
            ``(3) adopt such fiscal control and fund accounting 
        procedures as may be necessary to ensure the proper 
        disbursement of and accounting for funds paid to the State 
        under this chapter;
            ``(4)(A) maintain records that fully disclose--
                    ``(i) the amount and disposition by such recipient 
                of the proceeds of such financial assistance;
                    ``(ii) the total cost of the project or undertaking 
                in connection with which such financial assistance is 
                given or used; and
                    ``(iii) the amount of that portion of the cost of 
                the project or undertaking supplied by other sources;
            ``(B) maintain such other records as the Commissioner 
        determines to be appropriate to facilitate an effective audit;
            ``(C) afford such access to records maintained under 
        subparagraphs (A) and (B) as the Commissioner determines to be 
        appropriate; and
            ``(D) submit such reports with respect to such records as 
        the Commissioner determines to be appropriate;
            ``(5) provide access to the Commissioner and the 
        Comptroller General or any of their duly authorized 
        representatives, for the purpose of conducting audits and 
        examinations, of any books, documents, papers, and records of 
        the recipients that are pertinent to the financial assistance 
        received under this chapter; and
            ``(6) provide for public hearings regarding the contents of 
        the plan during both the formulation and review of the plan.
    ``(n) Evaluation.--The plan shall establish a method for the 
periodic evaluation of the effectiveness of the plan in meeting the 
objectives established in subsection (d), including evaluation of 
satisfaction by individuals with disabilities.

``SEC. 705. STATEWIDE INDEPENDENT LIVING COUNCIL.

    ``(a) Establishment.--To be eligible to receive financial 
assistance under this chapter, each State shall establish a Statewide 
Independent Living Council (referred to in this section as the 
`Council'). The Council shall not be established as an entity within a 
State agency.
    ``(b) Composition and Appointment.--
            ``(1) Appointment.--Members of the Council shall be 
        appointed by the Governor. The Governor shall select members 
        after soliciting recommendations from representatives of 
        organizations representing a broad range of individuals with 
        disabilities and organizations interested in individuals with 
        disabilities.
            ``(2) Composition.--The Council shall include--
                    ``(A) at least one director of a center for 
                independent living chosen by the directors of centers 
                for independent living within the State;
                    ``(B) as ex officio, nonvoting members--
                            ``(i) a representative from the designated 
                        State unit; and
                            ``(ii) representatives from other State 
                        agencies that provide services for individuals 
                        with disabilities; and
                    ``(C) in a State in which 1 or more projects are 
                carried out under section 121, at least 1 
                representative of the directors of the projects.
            ``(3) Additional members.--The Council may include--
                    ``(A) other representatives from centers for 
                independent living;
                    ``(B) parents and guardians of individuals with 
                disabilities;
                    ``(C) advocates of and for individuals with 
                disabilities;
                    ``(D) representatives from private businesses;
                    ``(E) representatives from organizations that 
                provide services for individuals with disabilities; and
                    ``(F) other appropriate individuals.
            ``(4) Qualifications.--
                    ``(A) In general.--The Council shall be composed of 
                members--
                            ``(i) who provide statewide representation;
                            ``(ii) who represent a broad range of 
                        individuals with disabilities from diverse 
                        backgrounds;
                            ``(iii) who are knowledgeable about centers 
                        for independent living and independent living 
                        services; and
                            ``(iv) a majority of whom are persons who 
                        are--
                                    ``(I) individuals with disabilities 
                                described in section 7(20)(B); and
                                    ``(II) not employed by any State 
                                agency or center for independent 
                                living.
                    ``(B) Voting members.--A majority of the voting 
                members of the Council shall be--
                            ``(i) individuals with disabilities 
                        described in section 7(20)(B); and
                            ``(ii) not employed by any State agency or 
                        center for independent living.
            ``(5) Chairperson.--The Council shall select a chairperson 
        from among the voting membership of the Council.
            ``(6) Terms of appointment.--
                    ``(A) Length of term.--Each member of the Council 
                shall serve for a term of 3 years, except that--
                            ``(i) a member appointed to fill a vacancy 
                        occurring prior to the expiration of the term 
                        for which a predecessor was appointed, shall be 
                        appointed for the remainder of such term; and
                            ``(ii) the terms of service of the members 
                        initially appointed shall be (as specified by 
                        the Governor) for such fewer number of years as 
                        will provide for the expiration of terms on a 
                        staggered basis.
                    ``(B) Number of terms.--No member of the Council 
                may serve more than two consecutive full terms.
            ``(7) Vacancies.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), any vacancy occurring in the 
                membership of the Council shall be filled in the same 
                manner as the original appointment. The vacancy shall 
                not affect the power of the remaining members to 
                execute the duties of the Council.
                    ``(B) Delegation.--The Governor may delegate the 
                authority to fill such a vacancy to the remaining 
                voting members of the Council after making the original 
                appointment.
    ``(c) Duties.--The Council shall--
            ``(1) jointly develop and sign (in conjunction with the 
        designated State unit) the State plan required in section 704;
            ``(2) monitor, review, and evaluate the implementation of 
        the State plan;
            ``(3) coordinate activities with the State Rehabilitation 
        Council established under section 105, if the State has such a 
        Council, or the commission described in section 101(a)(21)(A), 
        if the State has such a commission, and councils that address 
        the needs of specific disability populations and issues under 
        other Federal law;
            ``(4) ensure that all regularly scheduled meetings of the 
        Statewide Independent Living Council are open to the public and 
        sufficient advance notice is provided; and
            ``(5) submit to the Commissioner such periodic reports as 
        the Commissioner may reasonably request, and keep such records, 
        and afford such access to such records, as the Commissioner 
        finds necessary to verify such reports.
    ``(d) Hearings and Forums.--The Council is authorized to hold such 
hearings and forums as the Council may determine to be necessary to 
carry out the duties of the Council.
    ``(e) Plan.--
            ``(1) In general.--The Council shall prepare, in 
        conjunction with the designated State unit, a plan for the 
        provision of such resources, including such staff and 
        personnel, as may be necessary and sufficient to carry out the 
        functions of the Council under this section, with funds made 
        available under this chapter, and under section 110 (consistent 
        with section 101(a)(18)), and from other public and private 
        sources. The resource plan shall, to the maximum extent 
        possible, rely on the use of resources in existence during the 
        period of implementation of the plan.
            ``(2) Supervision and evaluation.--Each Council shall, 
        consistent with State law, supervise and evaluate such staff 
        and other personnel as may be necessary to carry out the 
        functions of the Council under this section.
            ``(3) Conflict of interest.--While assisting the Council in 
        carrying out its duties, staff and other personnel shall not be 
        assigned duties by the designated State agency or any other 
        agency or office of the State, that would create a conflict of 
        interest.
    ``(f) Compensation and Expenses.--The Council may use such 
resources to reimburse members of the Council for reasonable and 
necessary expenses of attending Council meetings and performing Council 
duties (including child care and personal assistance services), and to 
pay compensation to a member of the Council, if such member is not 
employed or must forfeit wages from other employment, for each day the 
member is engaged in performing Council duties.

``SEC. 706. RESPONSIBILITIES OF THE COMMISSIONER.

    ``(a) Approval of State Plans.--
            ``(1) In general.--The Commissioner shall approve any State 
        plan submitted under section 704 that the Commissioner 
        determines meets the requirements of section 704, and shall 
        disapprove any such plan that does not meet such requirements, 
        as soon as practicable after receiving the plan. Prior to such 
        disapproval, the Commissioner shall notify the State of the 
        intention to disapprove the plan, and shall afford such State 
        reasonable notice and opportunity for a hearing.
            ``(2) Procedures.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the provisions of subsections (c) and 
                (d) of section 107 shall apply to any State plan 
                submitted to the Commissioner under section 704.
                    ``(B) Application.--For purposes of the application 
                described in subparagraph (A), all references in such 
                provisions--
                            ``(i) to the Secretary shall be deemed to 
                        be references to the Commissioner; and
                            ``(ii) to section 101 shall be deemed to be 
                        references to section 704.
    ``(b) Indicators.--Not later than October 1, 1993, the Commissioner 
shall develop and publish in the Federal Register indicators of minimum 
compliance consistent with the standards set forth in section 725.
    ``(c) Onsite Compliance Reviews.--
            ``(1) Reviews.--The Commissioner shall annually conduct 
        onsite compliance reviews of at least 15 percent of the centers 
        for independent living that receive funds under section 722 and 
        shall periodically conduct such a review of each such center. 
        The Commissioner shall annually conduct onsite compliance 
        reviews of at least one-third of the designated State units 
        that receive funding under section 723, and, to the extent 
        necessary to determine the compliance of such a State unit with 
        subsections (f) and (g) of section 723, centers that receive 
        funding under section 723 in such State. The Commissioner shall 
        select the centers and State units described in this paragraph 
        for review on a random basis.
            ``(2) Qualifications of employees conducting reviews.--The 
        Commissioner shall--
                    ``(A) to the maximum extent practicable, carry out 
                such a review by using employees of the Department who 
                are knowledgeable about the provision of independent 
                living services;
                    ``(B) ensure that the employee of the Department 
                with responsibility for supervising such a review shall 
                have such knowledge; and
                    ``(C) ensure that at least one member of a team 
                conducting such a review shall be an individual who--
                            ``(i) is not a government employee; and
                            ``(ii) has experience in the operation of 
                        centers for independent living.
    ``(d) Reports.--The Commissioner shall include, in the annual 
report required under section 13, information on the extent to which 
centers for independent living receiving funds under part C have 
complied with the standards and assurances set forth in section 725. 
The Commissioner may identify individual centers for independent living 
in the analysis. The Commissioner shall report the results of onsite 
compliance reviews, identifying individual centers for independent 
living and other recipients of assistance under this chapter.

                 ``PART B--INDEPENDENT LIVING SERVICES

``SEC. 711. ALLOTMENTS.

    ``(a) In General.--
            ``(1) States.--
                    ``(A) Population basis.--Except as provided in 
                subparagraphs (B) and (C), from sums appropriated for 
                each fiscal year to carry out this part, the 
                Commissioner shall make an allotment to each State 
                whose State plan has been approved under section 706 of 
                an amount bearing the same ratio to such sums as the 
                population of the State bears to the population of all 
                States.
                    ``(B) Maintenance of 1992 amounts.--Subject to the 
                availability of appropriations to carry out this part, 
                the amount of any allotment made under subparagraph (A) 
                to a State for a fiscal year shall not be less than the 
                amount of an allotment made to the State for fiscal 
                year 1992 under part A of this title, as in effect on 
                the day before the date of enactment of the 
                Rehabilitation Act Amendments of 1992.
                    ``(C) Minimums.--Subject to the availability of 
                appropriations to carry out this part, and except as 
                provided in subparagraph (B), the allotment to any 
                State under subparagraph (A) shall be not less than 
                $275,000 or one-third of one percent of the sums made 
                available for the fiscal year for which the allotment 
                is made, whichever is greater, and the allotment of any 
                State under this section for any fiscal year that is 
                less than $275,000 or one-third of one percent of such 
                sums shall be increased to the greater of the two 
                amounts.
            ``(2) Certain territories.--
                    ``(A) In general.--For the purposes of paragraph 
                (1)(C), Guam, American Samoa, the United States Virgin 
                Islands, and the Commonwealth of the Northern Mariana 
                Islands shall not be considered to be States.
                    ``(B) Allotment.--Each jurisdiction described in 
                subparagraph (A) shall be allotted under paragraph 
                (1)(A) not less than one-eighth of one percent of the 
                amounts made available for purposes of this part for 
                the fiscal year for which the allotment is made.
            ``(3) Adjustment for inflation.--For any fiscal year, 
        beginning in fiscal year 1999, in which the total amount 
        appropriated to carry out this part exceeds the total amount 
        appropriated to carry out this part for the preceding fiscal 
        year, the Commissioner shall increase the minimum allotment 
        under paragraph (1)(C) by a percentage that shall not exceed 
        the percentage increase in the total amount appropriated to 
        carry out this part between the preceding fiscal year and the 
        fiscal year involved.
    ``(b) Proportional Reduction.--To provide allotments to States in 
accordance with subsection (a)(1)(B), to provide minimum allotments to 
States (as increased under subsection (a)(3)) under subsection 
(a)(1)(C), or to provide minimum allotments to States under subsection 
(a)(2)(B), the Commissioner shall proportionately reduce the allotments 
of the remaining States under subsection (a)(1)(A), with such 
adjustments as may be necessary to prevent the allotment of any such 
remaining State from being reduced to less than the amount required by 
subsection (a)(1)(B).
    ``(c) Reallotment.--Whenever the Commissioner determines that any 
amount of an allotment to a State for any fiscal year will not be 
expended by such State in carrying out the provisions of this part, the 
Commissioner shall make such amount available for carrying out the 
provisions of this part to one or more of the States that the 
Commissioner determines will be able to use additional amounts during 
such year for carrying out such provisions. Any amount made available 
to a State for any fiscal year pursuant to the preceding sentence 
shall, for the purposes of this section, be regarded as an increase in 
the allotment of the State (as determined under the preceding 
provisions of this section) for such year.

``SEC. 712. PAYMENTS TO STATES FROM ALLOTMENTS.

    ``(a) Payments.--From the allotment of each State for a fiscal year 
under section 711, the State shall be paid the Federal share of the 
expenditures incurred during such year under its State plan approved 
under section 706. Such payments may be made (after necessary 
adjustments on account of previously made overpayments or 
underpayments) in advance or by way of reimbursement, and in such 
installments and on such conditions as the Commissioner may determine.
    ``(b) Federal Share.--
            ``(1) In general.--The Federal share with respect to any 
        State for any fiscal year shall be 90 percent of the 
        expenditures incurred by the State during such year under its 
        State plan approved under section 706.
            ``(2) Non-federal share.--The non-Federal share of the cost 
        of any project that receives assistance through an allotment 
        under this part may be provided in cash or in kind, fairly 
        evaluated, including plant, equipment, or services.

``SEC. 713. AUTHORIZED USES OF FUNDS.

    ``The State may use funds received under this part to provide the 
resources described in section 705(e), relating to the Statewide 
Independent Living Council, and may use funds received under this 
part--
            ``(1) to provide independent living services to individuals 
        with significant disabilities;
            ``(2) to demonstrate ways to expand and improve independent 
        living services;
            ``(3) to support the operation of centers for independent 
        living that are in compliance with the standards and assurances 
        set forth in subsections (b) and (c) of section 725;
            ``(4) to support activities to increase the capacities of 
        public or nonprofit agencies and organizations and other 
        entities to develop comprehensive approaches or systems for 
        providing independent living services;
            ``(5) to conduct studies and analyses, gather information, 
        develop model policies and procedures, and present information, 
        approaches, strategies, findings, conclusions, and 
        recommendations to Federal, State, and local policymakers in 
        order to enhance independent living services for individuals 
        with disabilities;
            ``(6) to train individuals with disabilities and 
        individuals providing services to individuals with disabilities 
        and other persons regarding the independent living philosophy; 
        and
            ``(7) to provide outreach to populations that are unserved 
        or underserved by programs under this title, including minority 
        groups and urban and rural populations.

``SEC. 714. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
such sums as may be necessary for each of the fiscal years 1998 through 
2004.

                ``PART C--CENTERS FOR INDEPENDENT LIVING

``SEC. 721. PROGRAM AUTHORIZATION.

    ``(a) In General.--From the funds appropriated for fiscal year 1998 
and for each subsequent fiscal year to carry out this part, the 
Commissioner shall allot such sums as may be necessary to States and 
other entities in accordance with subsections (b) through (d).
    ``(b) Training.--
            ``(1) Grants; contracts; other arrangements.--For any 
        fiscal year in which the funds appropriated to carry out this 
        part exceed the funds appropriated to carry out this part for 
        fiscal year 1993, the Commissioner shall first reserve from 
        such excess, to provide training and technical assistance to 
        eligible agencies, centers for independent living, and 
        Statewide Independent Living Councils for such fiscal year, not 
        less than 1.8 percent, and not more than 2 percent, of the 
        funds appropriated to carry out this part for the fiscal year 
        involved.
            ``(2) Allocation.--From the funds reserved under paragraph 
        (1), the Commissioner shall make grants to, and enter into 
        contracts and other arrangements with, entities that have 
        experience in the operation of centers for independent living 
        to provide such training and technical assistance with respect 
        to planning, developing, conducting, administering, and 
        evaluating centers for independent living.
            ``(3) Funding priorities.--The Commissioner shall conduct a 
        survey of Statewide Independent Living Councils and centers for 
        independent living regarding training and technical assistance 
        needs in order to determine funding priorities for such grants, 
        contracts, and other arrangements.
            ``(4) Review.--To be eligible to receive a grant or enter 
        into a contract or other arrangement under this subsection, 
        such an entity shall submit an application to the Commissioner 
        at such time, in such manner, and containing a proposal to 
        provide such training and technical assistance, and containing 
        such additional information as the Commissioner may require. 
        The Commissioner shall provide for peer review of grant 
        applications by panels that include persons who are not 
        government employees and who have experience in the operation 
        of centers for independent living.
            ``(5) Prohibition on combined funds.--No funds reserved by 
        the Commissioner under this subsection may be combined with 
        funds appropriated under any other Act or part of this Act if 
        the purpose of combining funds is to make a single 
        discretionary grant or a single discretionary payment, unless 
        such funds appropriated under this chapter are separately 
        identified in such grant or payment and are used for the 
        purposes of this chapter.
    ``(c) In General.--
            ``(1) States.--
                    ``(A) Population basis.--After the reservation 
                required by subsection (b) has been made, and except as 
                provided in subparagraphs (B) and (C), from the 
                remainder of the amounts appropriated for each such 
                fiscal year to carry out this part, the Commissioner 
                shall make an allotment to each State whose State plan 
                has been approved under section 706 of an amount 
                bearing the same ratio to such remainder as the 
                population of the State bears to the population of all 
                States.
                    ``(B) Maintenance of 1992 amounts.--Subject to the 
                availability of appropriations to carry out this part, 
                the amount of any allotment made under subparagraph (A) 
                to a State for a fiscal year shall not be less than the 
                amount of financial assistance received by centers for 
                independent living in the State for fiscal year 1992 
                under part B of this title, as in effect on the day 
                before the date of enactment of the Rehabilitation Act 
                Amendments of 1992.
                    ``(C) Minimums.--Subject to the availability of 
                appropriations to carry out this part and except as 
                provided in subparagraph (B), for a fiscal year in 
                which the amounts appropriated to carry out this part 
                exceed the amounts appropriated for fiscal year 1992 to 
                carry out part B of this title, as in effect on the day 
                before the date of enactment of the Rehabilitation Act 
                Amendments of 1992--
                            ``(i) if such excess is not less than 
                        $8,000,000, the allotment to any State under 
                        subparagraph (A) shall be not less than 
                        $450,000 or one-third of one percent of the 
                        sums made available for the fiscal year for 
                        which the allotment is made, whichever is 
                        greater, and the allotment of any State under 
                        this section for any fiscal year that is less 
                        than $450,000 or one-third of one percent of 
                        such sums shall be increased to the greater of 
                        the two amounts;
                            ``(ii) if such excess is not less than 
                        $4,000,000 and is less than $8,000,000, the 
                        allotment to any State under subparagraph (A) 
                        shall be not less than $400,000 or one-third of 
                        one percent of the sums made available for the 
                        fiscal year for which the allotment is made, 
                        whichever is greater, and the allotment of any 
                        State under this section for any fiscal year 
                        that is less than $400,000 or one-third of one 
                        percent of such sums shall be increased to the 
                        greater of the two amounts; and
                            ``(iii) if such excess is less than 
                        $4,000,000, the allotment to any State under 
                        subparagraph (A) shall approach, as nearly as 
                        possible, the greater of the two amounts 
                        described in clause (ii).
            ``(2) Certain territories.--
                    ``(A) In general.--For the purposes of paragraph 
                (1)(C), Guam, American Samoa, the United States Virgin 
                Islands, and the Commonwealth of the Northern Mariana 
                Islands shall not be considered to be States.
                    ``(B) Allotment.--Each jurisdiction described in 
                subparagraph (A) shall be allotted under paragraph 
                (1)(A) not less than one-eighth of one percent of the 
                remainder for the fiscal year for which the allotment 
                is made.
            ``(3) Adjustment for inflation.--For any fiscal year, 
        beginning in fiscal year 1999, in which the total amount 
        appropriated to carry out this part exceeds the total amount 
        appropriated to carry out this part for the preceding fiscal 
        year, the Commissioner shall increase the minimum allotment 
        under paragraph (1)(C) by a percentage that shall not exceed 
        the percentage increase in the total amount appropriated to 
        carry out this part between the preceding fiscal year and the 
        fiscal year involved.
            ``(4) Proportional reduction.--To provide allotments to 
        States in accordance with paragraph (1)(B), to provide minimum 
        allotments to States (as increased under paragraph (3)) under 
        paragraph (1)(C), or to provide minimum allotments to States 
        under paragraph (2)(B), the Commissioner shall proportionately 
        reduce the allotments of the remaining States under paragraph 
        (1)(A), with such adjustments as may be necessary to prevent 
        the allotment of any such remaining State from being reduced to 
        less than the amount required by paragraph (1)(B).
    ``(d) Reallotment.--Whenever the Commissioner determines that any 
amount of an allotment to a State for any fiscal year will not be 
expended by such State for carrying out the provisions of this part, 
the Commissioner shall make such amount available for carrying out the 
provisions of this part to one or more of the States that the 
Commissioner determines will be able to use additional amounts during 
such year for carrying out such provisions. Any amount made available 
to a State for any fiscal year pursuant to the preceding sentence 
shall, for the purposes of this section, be regarded as an increase in 
the allotment of the State (as determined under the preceding 
provisions of this section) for such year.

``SEC. 722. GRANTS TO CENTERS FOR INDEPENDENT LIVING IN STATES IN WHICH 
              FEDERAL FUNDING EXCEEDS STATE FUNDING.

    ``(a) Establishment.--
            ``(1) In general.--Unless the director of a designated 
        State unit awards grants under section 723 to eligible agencies 
        in a State for a fiscal year, the Commissioner shall award 
        grants under this section to such eligible agencies for such 
        fiscal year from the amount of funds allotted to the State 
        under subsection (c) or (d) of section 721 for such year.
            ``(2) Grants.--The Commissioner shall award such grants, 
        from the amount of funds so allotted, to such eligible agencies 
        for the planning, conduct, administration, and evaluation of 
        centers for independent living that comply with the standards 
        and assurances set forth in section 725.
    ``(b) Eligible Agencies.--In any State in which the Commissioner 
has approved the State plan required by section 704, the Commissioner 
may make a grant under this section to any eligible agency that--
            ``(1) has the power and authority to carry out the purpose 
        of this part and perform the functions set forth in section 725 
        within a community and to receive and administer funds under 
        this part, funds and contributions from private or public 
        sources that may be used in support of a center for independent 
        living, and funds from other public and private programs;
            ``(2) is determined by the Commissioner to be able to plan, 
        conduct, administer, and evaluate a center for independent 
        living consistent with the standards and assurances set forth 
        in section 725; and
            ``(3) submits an application to the Commissioner at such 
        time, in such manner, and containing such information as the 
        Commissioner may require.
    ``(c) Existing Eligible Agencies.--In the administration of the 
provisions of this section, the Commissioner shall award grants to any 
eligible agency that has been awarded a grant under this part by 
September 30, 1997, unless the Commissioner makes a finding that the 
agency involved fails to meet program and fiscal standards and 
assurances set forth in section 725.
    ``(d) New Centers for Independent Living.--
            ``(1) In general.--If there is no center for independent 
        living serving a region of the State or a region is 
        underserved, and the increase in the allotment of the State is 
        sufficient to support an additional center for independent 
        living in the State, the Commissioner may award a grant under 
        this section to the most qualified applicant proposing to serve 
        such region, consistent with the provisions in the State plan 
        setting forth the design of the State for establishing a 
        statewide network of centers for independent living.
            ``(2) Selection.--In selecting from among applicants for a 
        grant under this section for a new center for independent 
        living, the Commissioner--
                    ``(A) shall consider comments regarding the 
                application, if any, by the Statewide Independent 
                Living Council in the State in which the applicant is 
                located;
                    ``(B) shall consider the ability of each such 
                applicant to operate a center for independent living 
                based on--
                            ``(i) evidence of the need for such a 
                        center;
                            ``(ii) any past performance of such 
                        applicant in providing services comparable to 
                        independent living services;
                            ``(iii) the plan for satisfying or 
                        demonstrated success in satisfying the 
                        standards and the assurances set forth in 
                        section 725;
                            ``(iv) the quality of key personnel and the 
                        involvement of individuals with significant 
                        disabilities;
                            ``(v) budgets and cost-effectiveness;
                            ``(vi) an evaluation plan; and
                            ``(vii) the ability of such applicant to 
                        carry out the plans; and
                    ``(C) shall give priority to applications from 
                applicants proposing to serve geographic areas within 
                each State that are currently unserved or underserved 
                by independent living programs, consistent with the 
                provisions of the State plan submitted under section 
                704 regarding establishment of a statewide network of 
                centers for independent living.
            ``(3) Current centers.--Notwithstanding paragraphs (1) and 
        (2), a center for independent living that receives assistance 
        under part B for a fiscal year shall be eligible for a grant 
        for the subsequent fiscal year under this subsection.
    ``(e) Order of Priorities.--The Commissioner shall be guided by the 
following order of priorities in allocating funds among centers for 
independent living within a State, to the extent funds are available:
            ``(1) The Commissioner shall support existing centers for 
        independent living, as described in subsection (c), that comply 
        with the standards and assurances set forth in section 725, at 
        the level of funding for the previous year.
            ``(2) The Commissioner shall provide for a cost-of-living 
        increase for such existing centers for independent living.
            ``(3) The Commissioner shall fund new centers for 
        independent living, as described in subsection (d), that comply 
        with the standards and assurances set forth in section 725.
    ``(f) Nonresidential Agencies.--A center that provides or manages 
residential housing after October 1, 1994, shall not be considered to 
be an eligible agency under this section.
    ``(g) Review.--
            ``(1) In general.--The Commissioner shall periodically 
        review each center receiving funds under this section to 
        determine whether such center is in compliance with the 
        standards and assurances set forth in section 725. If the 
        Commissioner determines that any center receiving funds under 
        this section is not in compliance with the standards and 
        assurances set forth in section 725, the Commissioner shall 
        immediately notify such center that it is out of compliance.
            ``(2) Enforcement.--The Commissioner shall terminate all 
        funds under this section to such center 90 days after the date 
        of such notification unless the center submits a plan to 
        achieve compliance within 90 days of such notification and such 
        plan is approved by the Commissioner.

``SEC. 723. GRANTS TO CENTERS FOR INDEPENDENT LIVING IN STATES IN WHICH 
              STATE FUNDING EQUALS OR EXCEEDS FEDERAL FUNDING.

    ``(a) Establishment.--
            ``(1) In general.--
                    ``(A) Initial year.--
                            ``(i) Determination.--The director of a 
                        designated State unit, as provided in paragraph 
                        (2), or the Commissioner, as provided in 
                        paragraph (3), shall award grants under this 
                        section for an initial fiscal year if the 
                        Commissioner determines that the amount of 
                        State funds that were earmarked by a State for 
                        a preceding fiscal year to support the general 
                        operation of centers for independent living 
                        meeting the requirements of this part equaled 
                        or exceeded the amount of funds allotted to the 
                        State under subsection (c) or (d) of section 
                        721 for such year.
                            ``(ii) Grants.--The director or the 
                        Commissioner, as appropriate, shall award such 
                        grants, from the amount of funds so allotted 
                        for the initial fiscal year, to eligible 
                        agencies in the State for the planning, 
                        conduct, administration, and evaluation of 
                        centers for independent living that comply with 
                        the standards and assurances set forth in 
                        section 725.
                            ``(iii) Regulation.--The Commissioner shall 
                        by regulation specify the preceding fiscal year 
                        with respect to which the Commissioner will 
                        make the determinations described in clause (i) 
                        and subparagraph (B), making such adjustments 
                        as may be necessary to accommodate State 
                        funding cycles such as 2-year funding cycles or 
                        State fiscal years that do not coincide with 
                        the Federal fiscal year.
                    ``(B) Subsequent years.--For each year subsequent 
                to the initial fiscal year described in subparagraph 
                (A), the director of the designated State unit shall 
                continue to have the authority to award such grants 
                under this section if the Commissioner determines that 
                the State continues to earmark the amount of State 
                funds described in subparagraph (A)(i). If the State 
                does not continue to earmark such an amount for a 
                fiscal year, the State shall be ineligible to make 
                grants under this section after a final year following 
                such fiscal year, as defined in accordance with 
                regulations established by the Commissioner, and for 
                each subsequent fiscal year.
            ``(2) Grants by designated state units.--In order for the 
        designated State unit to be eligible to award the grants 
        described in paragraph (1) and carry out this section for a 
        fiscal year with respect to a State, the designated State 
        agency shall submit an application to the Commissioner at such 
        time, and in such manner as the Commissioner may require, 
        including information about the amount of State funds described 
        in paragraph (1) for the preceding fiscal year. If the 
        Commissioner makes a determination described in subparagraph 
        (A)(i) or (B), as appropriate, of paragraph (1), the 
        Commissioner shall approve the application and designate the 
        director of the designated State unit to award the grant and 
        carry out this section.
            ``(3) Grants by commissioner.--If the designated State 
        agency of a State described in paragraph (1) does not submit 
        and obtain approval of an application under paragraph (2), the 
        Commissioner shall award the grant described in paragraph (1) 
        to eligible agencies in the State in accordance with section 
        722.
    ``(b) Eligible Agencies.--In any State in which the Commissioner 
has approved the State plan required by section 704, the director of 
the designated State unit may award a grant under this section to any 
eligible agency that--
            ``(1) has the power and authority to carry out the purpose 
        of this part and perform the functions set forth in section 725 
        within a community and to receive and administer funds under 
        this part, funds and contributions from private or public 
        sources that may be used in support of a center for independent 
        living, and funds from other public and private programs;
            ``(2) is determined by the director to be able to plan, 
        conduct, administer, and evaluate a center for independent 
        living, consistent with the standards and assurances set forth 
        in section 725; and
            ``(3) submits an application to the director at such time, 
        in such manner, and containing such information as the head of 
        the designated State unit may require.
    ``(c) Existing Eligible Agencies.--In the administration of the 
provisions of this section, the director of the designated State unit 
shall award grants under this section to any eligible agency that has 
been awarded a grant under this part by September 30, 1997, unless the 
director makes a finding that the agency involved fails to comply with 
the standards and assurances set forth in section 725.
    ``(d) New Centers for Independent Living.--
            ``(1) In general.--If there is no center for independent 
        living serving a region of the State or the region is unserved 
        or underserved, and the increase in the allotment of the State 
        is sufficient to support an additional center for independent 
        living in the State, the director of the designated State unit 
        may award a grant under this section from among eligible 
        agencies, consistent with the provisions of the State plan 
        under section 704 setting forth the design of the State for 
        establishing a statewide network of centers for independent 
        living.
            ``(2) Selection.--In selecting from among eligible agencies 
        in awarding a grant under this part for a new center for 
        independent living--
                    ``(A) the director of the designated State unit and 
                the chairperson of, or other individual designated by, 
                the Statewide Independent Living Council acting on 
                behalf of and at the direction of the Council, shall 
                jointly appoint a peer review committee that shall rank 
                applications in accordance with the standards and 
                assurances set forth in section 725 and criteria 
                jointly established by such director and such 
                chairperson or individual;
                    ``(B) the peer review committee shall consider the 
                ability of each such applicant to operate a center for 
                independent living, and shall recommend an applicant to 
                receive a grant under this section, based on--
                            ``(i) evidence of the need for a center for 
                        independent living, consistent with the State 
                        plan;
                            ``(ii) any past performance of such 
                        applicant in providing services comparable to 
                        independent living services;
                            ``(iii) the plan for complying with, or 
                        demonstrated success in complying with, the 
                        standards and the assurances set forth in 
                        section 725;
                            ``(iv) the quality of key personnel of the 
                        applicant and the involvement of individuals 
                        with significant disabilities by the applicant;
                            ``(v) the budgets and cost-effectiveness of 
                        the applicant;
                            ``(vi) the evaluation plan of the 
                        applicant; and
                            ``(vii) the ability of such applicant to 
                        carry out the plans; and
                    ``(C) the director of the designated State unit 
                shall award the grant on the basis of the 
                recommendations of the peer review committee if the 
                actions of the committee are consistent with Federal 
                and State law.
            ``(3) Current centers.--Notwithstanding paragraphs (1) and 
        (2), a center for independent living that receives assistance 
        under part B for a fiscal year shall be eligible for a grant 
        for the subsequent fiscal year under this subsection.
    ``(e) Order of Priorities.--Unless the director of the designated 
State unit and the chairperson of the Council or other individual 
designated by the Council acting on behalf of and at the direction of 
the Council jointly agree on another order of priority, the director 
shall be guided by the following order of priorities in allocating 
funds among centers for independent living within a State, to the 
extent funds are available:
            ``(1) The director of the designated State unit shall 
        support existing centers for independent living, as described 
        in subsection (c), that comply with the standards and 
        assurances set forth in section 725, at the level of funding 
        for the previous year.
            ``(2) The director of the designated State unit shall 
        provide for a cost-of-living increase for such existing centers 
        for independent living.
            ``(3) The director of the designated State unit shall fund 
        new centers for independent living, as described in subsection 
        (d), that comply with the standards and assurances set forth in 
        section 725.
    ``(f) Nonresidential Agencies.--A center that provides or manages 
residential housing after October 1, 1994, shall not be considered to 
be an eligible agency under this section.
    ``(g) Review.--
            ``(1) In general.--The director of the designated State 
        unit shall periodically review each center receiving funds 
        under this section to determine whether such center is in 
        compliance with the standards and assurances set forth in 
        section 725. If the director of the designated State unit 
        determines that any center receiving funds under this section 
        is not in compliance with the standards and assurances set 
        forth in section 725, the director of the designated State unit 
        shall immediately notify such center that it is out of 
        compliance.
            ``(2) Enforcement.--The director of the designated State 
        unit shall terminate all funds under this section to such 
        center 90 days after--
                    ``(A) the date of such notification; or
                    ``(B) in the case of a center that requests an 
                appeal under subsection (i), the date of any final 
                decision under subsection (i),
        unless the center submits a plan to achieve compliance within 
        90 days and such plan is approved by the director, or if 
        appealed, by the Commissioner.
    ``(h)  Onsite Compliance Review.--The director of the designated 
State unit shall annually conduct onsite compliance reviews of at least 
15 percent of the centers for independent living that receive funding 
under this section in the State. Each team that conducts onsite 
compliance review of centers for independent living shall include at 
least one person who is not an employee of the designated State agency, 
who has experience in the operation of centers for independent living, 
and who is jointly selected by the director of the designated State 
unit and the chairperson of or other individual designated by the 
Council acting on behalf of and at the direction of the Council. A copy 
of this review shall be provided to the Commissioner.
    ``(i) Adverse Actions.--If the director of the designated State 
unit proposes to take a significant adverse action against a center for 
independent living, the center may seek mediation and conciliation to 
be provided by an individual or individuals who are free of conflicts 
of interest identified by the chairperson of or other individual 
designated by the Council. If the issue is not resolved through the 
mediation and conciliation, the center may appeal the proposed adverse 
action to the Commissioner for a final decision.

``SEC. 724. CENTERS OPERATED BY STATE AGENCIES.

    ``A State that receives assistance for fiscal year 1993 with 
respect to a center in accordance with subsection (a) of this section 
(as in effect on the day before the date of enactment of the 
Rehabilitation Act Amendments of 1998) may continue to receive 
assistance under this part for fiscal year 1994 or a succeeding fiscal 
year if, for such fiscal year--
            ``(1) no nonprofit private agency--
                    ``(A) submits an acceptable application to operate 
                a center for independent living for the fiscal year 
                before a date specified by the Commissioner; and
                    ``(B) obtains approval of the application under 
                section 722 or 723; or
            ``(2) after funding all applications so submitted and 
        approved, the Commissioner determines that funds remain 
        available to provide such assistance.

``SEC. 725. STANDARDS AND ASSURANCES FOR CENTERS FOR INDEPENDENT 
              LIVING.

    ``(a) In General.--Each center for independent living that receives 
assistance under this part shall comply with the standards set out in 
subsection (b) and provide and comply with the assurances set out in 
subsection (c) in order to ensure that all programs and activities 
under this part are planned, conducted, administered, and evaluated in 
a manner consistent with the purposes of this chapter and the objective 
of providing assistance effectively and efficiently.
    ``(b) Standards.--
            ``(1) Philosophy.--The center shall promote and practice 
        the independent living philosophy of--
                    ``(A) consumer control of the center regarding 
                decisionmaking, service delivery, management, and 
                establishment of the policy and direction of the 
                center;
                    ``(B) self-help and self-advocacy;
                    ``(C) development of peer relationships and peer 
                role models; and
                    ``(D) equal access of individuals with significant 
                disabilities to society and to all services, programs, 
                activities, resources, and facilities, whether public 
                or private and regardless of the funding source.
            ``(2) Provision of services.--The center shall provide 
        services to individuals with a range of significant 
        disabilities. The center shall provide services on a cross-
        disability basis (for individuals with all different types of 
        significant disabilities, including individuals with 
        significant disabilities who are members of populations that 
        are unserved or underserved by programs under this title). 
        Eligibility for services at any center for independent living 
        shall be determined by the center, and shall not be based on 
        the presence of any one or more specific significant 
        disabilities.
            ``(3) Independent living goals.--The center shall 
        facilitate the development and achievement of independent 
        living goals selected by individuals with significant 
        disabilities who seek such assistance by the center.
            ``(4) Community options.--The center shall work to increase 
        the availability and improve the quality of community options 
        for independent living in order to facilitate the development 
        and achievement of independent living goals by individuals with 
        significant disabilities.
            ``(5) Independent living core services.--The center shall 
        provide independent living core services and, as appropriate, a 
        combination of any other independent living services.
            ``(6) Activities to increase community capacity.--The 
        center shall conduct activities to increase the capacity of 
        communities within the service area of the center to meet the 
        needs of individuals with significant disabilities.
            ``(7) Resource development activities.--The center shall 
        conduct resource development activities to obtain funding from 
        sources other than this chapter.
    ``(c) Assurances.--The eligible agency shall provide at such time 
and in such manner as the Commissioner may require, such satisfactory 
assurances as the Commissioner may require, including satisfactory 
assurances that--
            ``(1) the applicant is an eligible agency;
            ``(2) the center will be designed and operated within local 
        communities by individuals with disabilities, including an 
        assurance that the center will have a Board that is the 
        principal governing body of the center and a majority of which 
        shall be composed of individuals with significant disabilities;
            ``(3) the applicant will comply with the standards set 
        forth in subsection (b);
            ``(4) the applicant will establish clear priorities through 
        annual and 3-year program and financial planning objectives for 
        the center, including overall goals or a mission for the 
        center, a work plan for achieving the goals or mission, 
        specific objectives, service priorities, and types of services 
        to be provided, and a description that shall demonstrate how 
        the proposed activities of the applicant are consistent with 
        the most recent 3-year State plan under section 704;
            ``(5) the applicant will use sound organizational and 
        personnel assignment practices, including taking affirmative 
        action to employ and advance in employment qualified 
        individuals with significant disabilities on the same terms and 
        conditions required with respect to the employment of 
        individuals with disabilities under section 503;
            ``(6) the applicant will ensure that the majority of the 
        staff, and individuals in decisionmaking positions, of the 
        applicant are individuals with disabilities;
            ``(7) the applicant will practice sound fiscal management, 
        including making arrangements for an annual independent fiscal 
        audit, notwithstanding section 7502(a)(2)(A) of title 31, 
        United States Code;
            ``(8) the applicant will conduct annual self-evaluations, 
        prepare an annual report, and maintain records adequate to 
        measure performance with respect to the standards, containing 
        information regarding, at a minimum--
                    ``(A) the extent to which the center is in 
                compliance with the standards;
                    ``(B) the number and types of individuals with 
                significant disabilities receiving services through the 
                center;
                    ``(C) the types of services provided through the 
                center and the number of individuals with significant 
                disabilities receiving each type of service;
                    ``(D) the sources and amounts of funding for the 
                operation of the center;
                    ``(E) the number of individuals with significant 
                disabilities who are employed by, and the number who 
                are in management and decisionmaking positions in, the 
                center; and
                    ``(F) a comparison, when appropriate, of the 
                activities of the center in prior years with the 
                activities of the center in the most recent year;
            ``(9) individuals with significant disabilities who are 
        seeking or receiving services at the center will be notified by 
        the center of the existence of, the availability of, and how to 
        contact, the client assistance program;
            ``(10) aggressive outreach regarding services provided 
        through the center will be conducted in an effort to reach 
        populations of individuals with significant disabilities that 
        are unserved or underserved by programs under this title, 
        especially minority groups and urban and rural populations;
            ``(11) staff at centers for independent living will receive 
        training on how to serve such unserved and underserved 
        populations, including minority groups and urban and rural 
        populations;
            ``(12) the center will submit to the Statewide Independent 
        Living Council a copy of its approved grant application and the 
        annual report required under paragraph (8);
            ``(13) the center will prepare and submit a report to the 
        designated State unit or the Commissioner, as the case may be, 
        at the end of each fiscal year that contains the information 
        described in paragraph (8) and information regarding the extent 
        to which the center is in compliance with the standards set 
        forth in subsection (b); and
            ``(14) an independent living plan described in section 
        704(e) will be developed unless the individual who would 
        receive services under the plan signs a waiver stating that 
        such a plan is unnecessary.

``SEC. 726. DEFINITIONS.

    ``As used in this part, the term `eligible agency' means a 
consumer-controlled, community-based, cross-disability, nonresidential 
private nonprofit agency.

``SEC. 727. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
such sums as may be necessary for each of the fiscal years 1998 through 
2004.

``CHAPTER 2--INDEPENDENT LIVING SERVICES FOR OLDER INDIVIDUALS WHO ARE 
                                 BLIND

``SEC. 751. DEFINITION.

    ``For purposes of this chapter, the term `older individual who is 
blind' means an individual age 55 or older whose significant visual 
impairment makes competitive employment extremely difficult to attain 
but for whom independent living goals are feasible.

``SEC. 752. PROGRAM OF GRANTS.

    ``(a) In General.--
            ``(1) Authority for grants.--Subject to subsections (b) and 
        (c), the Commissioner may make grants to States for the purpose 
        of providing the services described in subsection (d) to older 
        individuals who are blind.
            ``(2) Designated state agency.--The Commissioner may not 
        make a grant under subsection (a) unless the State involved 
        agrees that the grant will be administered solely by the agency 
        described in section 101(a)(2)(A)(i).
    ``(b) Contingent Competitive Grants.--Beginning with fiscal year 
1993, in the case of any fiscal year for which the amount appropriated 
under section 753 is less than $13,000,000, grants made under 
subsection (a) shall be--
            ``(1) discretionary grants made on a competitive basis to 
        States; or
            ``(2) grants made on a noncompetitive basis to pay for the 
        continuation costs of activities for which a grant was 
        awarded--
                    ``(A) under this chapter; or
                    ``(B) under part C, as in effect on the day before 
                the date of enactment of the Rehabilitation Act 
                Amendments of 1992.
    ``(c) Contingent Formula Grants.--
            ``(1) In general.--In the case of any fiscal year for which 
        the amount appropriated under section 753 is equal to or 
        greater than $13,000,000, grants under subsection (a) shall be 
        made only to States and shall be made only from allotments 
        under paragraph (2).
            ``(2) Allotments.--For grants under subsection (a) for a 
        fiscal year described in paragraph (1), the Commissioner shall 
        make an allotment to each State in an amount determined in 
        accordance with subsection (j), and shall make a grant to the 
        State of the allotment made for the State if the State submits 
        to the Commissioner an application in accordance with 
        subsection (i).
    ``(d) Services Generally.--The Commissioner may not make a grant 
under subsection (a) unless the State involved agrees that the grant 
will be expended only for purposes of--
            ``(1) providing independent living services to older 
        individuals who are blind;
            ``(2) conducting activities that will improve or expand 
        services for such individuals; and
            ``(3) conducting activities to help improve public 
        understanding of the problems of such individuals.
    ``(e) Independent Living Services.--Independent living services for 
purposes of subsection (d)(1) include--
            ``(1) services to help correct blindness, such as--
                    ``(A) outreach services;
                    ``(B) visual screening;
                    ``(C) surgical or therapeutic treatment to prevent, 
                correct, or modify disabling eye conditions; and
                    ``(D) hospitalization related to such services;
            ``(2) the provision of eyeglasses and other visual aids;
            ``(3) the provision of services and equipment to assist an 
        older individual who is blind to become more mobile and more 
        self-sufficient;
            ``(4) mobility training, braille instruction, and other 
        services and equipment to help an older individual who is blind 
        adjust to blindness;
            ``(5) guide services, reader services, and transportation;
            ``(6) any other appropriate service designed to assist an 
        older individual who is blind in coping with daily living 
        activities, including supportive services and rehabilitation 
        teaching services;
            ``(7) independent living skills training, information and 
        referral services, peer counseling, and individual advocacy 
        training; and
            ``(8) other independent living services.
    ``(f) Matching Funds.--
            ``(1) In general.--The Commissioner may not make a grant 
        under subsection (a) unless the State involved agrees, with 
        respect to the costs of the program to be carried out by the 
        State pursuant to such subsection, to make available (directly 
        or through donations from public or private entities) non-
        Federal contributions toward such costs in an amount that is 
        not less than $1 for each $9 of Federal funds provided in the 
        grant.
            ``(2) Determination of amount contributed.--Non-Federal 
        contributions required in paragraph (1) may be in cash or in 
        kind, fairly evaluated, including plant, equipment, or 
        services. Amounts provided by the Federal Government, or 
        services assisted or subsidized to any significant extent by 
        the Federal Government, may not be included in determining the 
        amount of such non-Federal contributions.
    ``(g) Certain Expenditures of Grants.--A State may expend a grant 
under subsection (a) to carry out the purposes specified in subsection 
(d) through grants to public and nonprofit private agencies or 
organizations.
    ``(h) Requirement Regarding State Plan.--The Commissioner may not 
make a grant under subsection (a) unless the State involved agrees 
that, in carrying out subsection (d)(1), the State will seek to 
incorporate into the State plan under section 704 any new methods and 
approaches relating to independent living services for older 
individuals who are blind.
    ``(i) Application for Grant.--
            ``(1) In general.--The Commissioner may not make a grant 
        under subsection (a) unless an application for the grant is 
        submitted to the Commissioner and the application is in such 
        form, is made in such manner, and contains such agreements, 
        assurances, and information as the Commissioner determines to 
        be necessary to carry out this section (including agreements, 
        assurances, and information with respect to any grants under 
        subsection (j)(4)).
            ``(2) Contents.--An application for a grant under this 
        section shall contain--
                    ``(A) an assurance that the agency described in 
                subsection (a)(2) will prepare and submit to the 
                Commissioner a report, at the end of each fiscal year, 
                with respect to each project or program the agency 
                operates or administers under this section, whether 
                directly or through a grant or contract, which report 
                shall contain, at a minimum, information on--
                            ``(i) the number and types of older 
                        individuals who are blind and are receiving 
                        services;
                            ``(ii) the types of services provided and 
                        the number of older individuals who are blind 
                        and are receiving each type of service;
                            ``(iii) the sources and amounts of funding 
                        for the operation of each project or program;
                            ``(iv) the amounts and percentages of 
                        resources committed to each type of service 
                        provided;
                            ``(v) data on actions taken to employ, and 
                        advance in employment, qualified individuals 
                        with significant disabilities, including older 
                        individuals who are blind; and
                            ``(vi) a comparison, if appropriate, of 
                        prior year activities with the activities of 
                        the most recent year;
                    ``(B) an assurance that the agency will--
                            ``(i) provide services that contribute to 
                        the maintenance of, or the increased 
                        independence of, older individuals who are 
                        blind; and
                            ``(ii) engage in--
                                    ``(I) capacity-building activities, 
                                including collaboration with other 
                                agencies and organizations;
                                    ``(II) activities to promote 
                                community awareness, involvement, and 
                                assistance; and
                                    ``(III) outreach efforts; and
                    ``(C) an assurance that the application is 
                consistent with the State plan for providing 
                independent living services required by section 704.
    ``(j) Amount of Formula Grant.--
            ``(1) In general.--Subject to the availability of 
        appropriations, the amount of an allotment under subsection (a) 
        for a State for a fiscal year shall be the greater of--
                    ``(A) the amount determined under paragraph (2); or
                    ``(B) the amount determined under paragraph (3).
            ``(2) Minimum allotment.--
                    ``(A) States.--In the case of the several States, 
                the District of Columbia, and the Commonwealth of 
                Puerto Rico, the amount referred to in subparagraph (A) 
                of paragraph (1) for a fiscal year is the greater of--
                            ``(i) $225,000; or
                            ``(ii) an amount equal to one-third of one 
                        percent of the amount appropriated under 
                        section 753 for the fiscal year and available 
                        for allotments under subsection (a).
                    ``(B) Certain territories.--In the case of Guam, 
                American Samoa, the United States Virgin Islands, and 
                the Commonwealth of the Northern Mariana Islands, the 
                amount referred to in subparagraph (A) of paragraph (1) 
                for a fiscal year is $40,000.
            ``(3) Formula.--The amount referred to in subparagraph (B) 
        of paragraph (1) for a State for a fiscal year is the product 
        of--
                    ``(A) the amount appropriated under section 753 and 
                available for allotments under subsection (a); and
                    ``(B) a percentage equal to the quotient of--
                            ``(i) an amount equal to the number of 
                        individuals residing in the State who are not 
                        less than 55 years of age; divided by
                            ``(ii) an amount equal to the number of 
                        individuals residing in the United States who 
                        are not less than 55 years of age.
            ``(4) Disposition of certain amounts.--
                    ``(A) Grants.--From the amounts specified in 
                subparagraph (B), the Commissioner may make grants to 
                States whose population of older individuals who are 
                blind has a substantial need for the services specified 
                in subsection (d) relative to the populations in other 
                States of older individuals who are blind.
                    ``(B) Amounts.--The amounts referred to in 
                subparagraph (A) are any amounts that are not paid to 
                States under subsection (a) as a result of--
                            ``(i) the failure of any State to submit an 
                        application under subsection (i);
                            ``(ii) the failure of any State to prepare 
                        within a reasonable period of time such 
                        application in compliance with such subsection; 
                        or
                            ``(iii) any State informing the 
                        Commissioner that the State does not intend to 
                        expend the full amount of the allotment made 
                        for the State under subsection (a).
                    ``(C) Conditions.--The Commissioner may not make a 
                grant under subparagraph (A) unless the State involved 
                agrees that the grant is subject to the same conditions 
                as grants made under subsection (a).

``SEC. 753. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this chapter 
such sums as may be necessary for each of the fiscal years 1998 through 
2004.''.

SEC. 611. HELEN KELLER NATIONAL CENTER ACT.

    (a) General Authorization of Appropriations.--The first sentence of 
section 205(a) of the Helen Keller National Center Act (29 U.S.C. 
1904(a)) is amended by striking ``1993 through 1997'' and inserting 
``1998 through 2004''.
    (b) Helen Keller National Center Federal Endowment Fund.--The first 
sentence of section 208(h) of such Act (29 U.S.C. 1907(h)) is amended 
by striking ``1993 through 1997'' and inserting ``1998 through 2004''.
    (c) Registry.--Such Act (29 U.S.C. 1901 et seq.) is amended by 
adding at the end the following:

``SEC. 209. NATIONAL REGISTRY AND AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Registry.--The Center shall establish and maintain a national 
registry of individuals who are deaf-blind, using funds made available 
under subsection (b).
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out subsection (a) such sums as may be necessary 
for each of fiscal years 1998 through 2004.''.

SEC. 612. PRESIDENT'S COMMITTEE ON EMPLOYMENT OF PEOPLE WITH 
              DISABILITIES.

    Section 2(2) of the joint resolution approved July 11, 1949 (63 
Stat. 409, chapter 302; 36 U.S.C. 155b(2)) is amended by inserting 
``solicit,'' before ``accept,''.

SEC. 613. CONFORMING AMENDMENTS.

    (a) Preparation.--After consultation with the appropriate 
committees of Congress and the Director of the Office of Management and 
Budget, the Secretary of Education shall prepare recommended 
legislation containing technical and conforming amendments to reflect 
the changes made by this title.
    (b) Submission to Congress.--Not later than 6 months after the date 
of enactment of this Act, the Secretary of Education shall submit to 
Congress the recommended legislation referred to under subsection (a).

            Attest:

                                                             Secretary.
105th CONGRESS

  2d Session

                               H. R. 1385

_______________________________________________________________________

                               AMENDMENT

HR 1385 EAS----2
HR 1385 EAS----3
HR 1385 EAS----4
HR 1385 EAS----5
HR 1385 EAS----6
HR 1385 EAS----7
HR 1385 EAS----8
HR 1385 EAS----9
HR 1385 EAS----10
HR 1385 EAS----11
HR 1385 EAS----12
HR 1385 EAS----13
HR 1385 EAS----14
HR 1385 EAS----15
HR 1385 EAS----16
HR 1385 EAS----17
HR 1385 EAS----18
HR 1385 EAS----19
HR 1385 EAS----20
HR 1385 EAS----21
HR 1385 EAS----22
HR 1385 EAS----23
HR 1385 EAS----24
HR 1385 EAS----25
HR 1385 EAS----26
HR 1385 EAS----27
HR 1385 EAS----28
HR 1385 EAS----29
HR 1385 EAS----30
HR 1385 EAS----31
HR 1385 EAS----32
HR 1385 EAS----33
HR 1385 EAS----34
HR 1385 EAS----35
HR 1385 EAS----36
HR 1385 EAS----37
HR 1385 EAS----38
HR 1385 EAS----39
HR 1385 EAS----40
HR 1385 EAS----41
HR 1385 EAS----42
HR 1385 EAS----43
HR 1385 EAS----44
HR 1385 EAS----45
HR 1385 EAS----46
HR 1385 EAS----47
HR 1385 EAS----48
HR 1385 EAS----49
HR 1385 EAS----50
HR 1385 EAS----51
HR 1385 EAS----52
HR 1385 EAS----53
HR 1385 EAS----54
HR 1385 EAS----55
HR 1385 EAS----56
HR 1385 EAS----57
HR 1385 EAS----58
HR 1385 EAS----59
HR 1385 EAS----60