[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1385 Engrossed in House (EH)]


  1st Session

                               H. R. 1385

_______________________________________________________________________

                                 AN ACT

To consolidate, coordinate, and improve employment, training, literacy, 
 and vocational rehabilitation programs in the United States, and for 
                            other purposes.
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
105th CONGRESS
  1st Session
                                H. R. 1385

_______________________________________________________________________

                                 AN ACT


 
To consolidate, coordinate, and improve employment, training, literacy, 
 and vocational rehabilitation programs in the United States, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Employment, Training, and Literacy 
Enhancement Act of 1997''.

SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF CONTENTS.

    (a) Divisions.--This Act is organized into two divisions as 
follows:
            (1) Division A--Employment, Training, and Literacy 
        Programs.
            (2) Division B--Vocational Rehabilitation Programs.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title.
Sec. 2. Organization of Act into divisions; table of contents.
        DIVISION A--EMPLOYMENT, TRAINING, AND LITERACY PROGRAMS

   TITLE I--AMENDMENTS TO GENERAL PROVISIONS AND PROGRAM REQUIREMENTS

                     Subtitle A--General Provisions

Sec. 101. Statement of purpose.
Sec. 102. Authorization of appropriations.
Sec. 103. Definitions.
         Subtitle B--State and Local Administrative Provisions

Sec. 111. State administrative provisions.
Sec. 112. Local administrative provisions.
               Subtitle C--Program and Fiscal Provisions

                     Chapter 1--General Provisions

Sec. 121. General program requirements.
Sec. 122. Benefits.
Sec. 123. Labor standards.
Sec. 124. Grievance procedure.
Sec. 125. Identification of additional imposed requirements.
Sec. 126. Authority of State legislature.
Sec. 127. Interstate agreements.
            Chapter 2--Performance Accountability Provisions

Sec. 131. Performance accountability provisions.
                      Chapter 3--Other Provisions

Sec. 141. Prompt allocation of funds.
Sec. 142. Fiscal controls; sanctions.
Sec. 143. Reports; recordkeeping; and investigations.
Sec. 144. Administrative adjudication.
Sec. 145. Nondiscrimination.
Sec. 146. Judicial review.
Sec. 147. Administrative provisions.
Sec. 148. Presidential awards for outstanding private sector 
                            involvement in job training programs.
Sec. 149. Construction.
Sec. 150. Limitation on certain costs.
                  Subtitle D--Miscellaneous Provisions

Sec. 161. Criminal provisions.
Sec. 162. Reference.
Sec. 163. Repealers.
     TITLE II--AMENDMENTS TO EMPLOYMENT AND TRAINING PROGRAMS FOR 
                          DISADVANTAGED YOUTH

Sec. 201. Adult training program.
Sec. 202. Summer youth employment and training program.
Sec. 203. Disadvantaged youth employment and training opportunities 
                            grants.
  TITLE III--AMENDMENTS TO EMPLOYMENT AND TRAINING PROGRAMS FOR ADULTS

Sec. 301. Adult employment and training opportunities grants.
        TITLE IV--AMENDMENTS TO FEDERALLY ADMINISTERED PROGRAMS

 Subtitle A--Employment and Training Programs for Native Americans and 
                    Migrant and Seasonal Farmworkers

Sec. 401. Native American program.
Sec. 402. Migrant and seasonal farmworker program.
                         Subtitle B--Job Corps

Sec. 411. Statement of purpose.
Sec. 412. Individuals eligible for the Job Corps.
Sec. 413. Screening and selection of applicants; general provisions.
Sec. 414. Job Corps centers.
Sec. 415. Standards of conduct.
Sec. 416. Counseling and job placement.
Sec. 417. Experimental and developmental projects and coordination with 
                            other programs.
                    Subtitle C--National Activities

Sec. 421. Research, demonstration, evaluation, and capacity building.
Sec. 422. Nontraditional employment demonstration program.
                         Subtitle D--Repealers

Sec. 451. Repealers.
            TITLE V--AMENDMENTS TO ADULT EDUCATION PROGRAMS

Sec. 501. Repeal of Jobs for Employable Dependent Individuals Incentive 
                            Bonus Program.
Sec. 502. Amendment to Adult Education Act.
Sec. 503. Repeal of National Literacy Act of 1991.
Sec. 504. Conforming amendments.
                   TITLE VI--MISCELLANEOUS PROVISIONS

Sec. 601. Repealers.
Sec. 602. Conforming amendments.
    TITLE VII--AMENDMENTS TO STATE HUMAN RESOURCE INVESTMENT COUNCIL

Sec. 701. Amendments to Council.
Sec. 702. Transfer of Council.
Sec. 703. Conforming amendments.
              TITLE VIII--AMENDMENTS TO WAGNER-PEYSER ACT

Sec. 801. Definitions.
Sec. 802. Functions.
Sec. 803. Designation of State agencies.
Sec. 804. Appropriations.
Sec. 805. Disposition of allotted funds.
Sec. 806. State plans.
Sec. 807. Federal advisory council.
Sec. 808. Regulations.
Sec. 809. Effective date.
             TITLE IX--TECHNICAL AND CONFORMING AMENDMENTS

       Subtitle A--Amendments to the Job Training Partnership Act

Sec. 901. Short title; table of contents.
Sec. 902. Definitions.
Sec. 903. Amendments to title I.
Sec. 904. Amendments to title IV.
Sec. 905. Amendments to title VI.
Sec. 906. Clarification.
                  Subtitle B--Amendments to Other Acts

Sec. 911. Amendments to other Acts.
           TITLE X--EFFECTIVE DATE AND TRANSITION PROVISIONS

Sec. 1001. Effective date.
Sec. 1002. Transition provisions.
             DIVISION B--VOCATIONAL REHABILITATION PROGRAMS

              TITLE XXI--AMENDMENTS TO GENERAL PROVISIONS

Sec. 2101. Rehabilitation Services Administration.
Sec. 2102. Definitions.
Sec. 2103. Reports.
Sec. 2104. Buy-American requirements.
      TITLE XXII--AMENDMENTS TO VOCATIONAL REHABILITATION SERVICES

                     Subtitle A--General Provisions

Sec. 2201. Declaration of policy; authorization of appropriations.
Sec. 2202. State plans.
Sec. 2203. Individualized plan for employment.
Sec. 2204. Scope of vocational rehabilitation services.
Sec. 2205. State Rehabilitation Advisory Council.
Sec. 2206. Evaluation standards and performance indicators.
Sec. 2207. Monitoring and review.
          Subtitle B--Basic Vocational Rehabilitation Services

Sec. 2211. State allotments.
Sec. 2212. Payments to States.
Sec. 2213. Client assistance program.
            TITLE XXIII--AMENDMENTS TO RESEARCH AND TRAINING

Sec. 2221. Authorization of appropriations.
Sec. 2222. National Institute on Disability and Rehabilitation 
                            Research.
     TITLE XXIV--AMENDMENTS TO TRAINING AND DEMONSTRATION PROJECTS

  Subtitle A--Training Programs and Community Rehabilitation Programs

Sec. 2231. Declaration of purpose.
Sec. 2232. Training.
Sec. 2233. Repealers.
Sec. 2234. Authorization of appropriations.
        Subtitle B--Special Projects and Supplementary Services

Sec. 2241. Special demonstration programs.
Sec. 2242. Migratory workers.
Sec. 2243. Repealers.
Sec. 2244. Special recreational programs.
        TITLE XXV--AMENDMENTS TO NATIONAL COUNCIL ON DISABILITY

Sec. 2251. Authorization of appropriations.
             TITLE XXVI--AMENDMENTS TO RIGHTS AND ADVOCACY

Sec. 2261. Employment of individuals with disabilities.
Sec. 2262. Architectural and Transportation Barriers Compliance Board.
Sec. 2263. Protection and advocacy of individual rights.
Sec. 2264. Requirement that Federal agencies provide certification of 
                            compliance with electronic and information 
                            technology accessibility guidelines.
  TITLE XXVII--AMENDMENTS TO EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS 
                           WITH DISABILITIES

Sec. 2271. Authorization of appropriations.
Sec. 2272. Repealers.
TITLE XXVIII--AMENDMENTS TO INDEPENDENT LIVING SERVICES AND CENTERS FOR 
                           INDEPENDENT LIVING

Sec. 2281. Authorization of appropriations.
Sec. 2282. Program authorization for centers for independent living.
 TITLE XXIX--AMENDMENTS TO SPECIAL DEMONSTRATIONS AND TRAINING PROJECTS

Sec. 2291. Authorization of appropriations.
Sec. 2292. Demonstration activities.
Sec. 2293. Training activities.
     TITLE XXX--AMENDMENTS TO THE HELEN KELLER NATIONAL CENTER ACT

Sec. 2295. Authorization of appropriations.
                       TITLE XXXI--EFFECTIVE DATE

Sec. 2297. Effective date.

        DIVISION A--EMPLOYMENT, TRAINING, AND LITERACY PROGRAMS

   TITLE I--AMENDMENTS TO GENERAL PROVISIONS AND PROGRAM REQUIREMENTS

                     Subtitle A--General Provisions

SEC. 101. STATEMENT OF PURPOSE.

    Section 2 of the Job Training Partnership Act (29 U.S.C. 1501) is 
amended to read as follows:

``SEC. 2. STATEMENT OF PURPOSE.

    ``The purpose of this Act is to transform the current array of 
Federal employment, training, and adult education and literacy programs 
from a collection of fragmented and duplicative categorical programs 
into high quality, coherent, and accountable State and local systems 
that are designed--
            ``(1) to provide high quality training for today and for 
        the 21st century;
            ``(2) to empower individuals to choose occupations and 
        training programs, based on accurate and up-to-date 
        information, that will develop more fully their academic, 
        occupational, and literacy skills, leading to productive 
        employment and economic self-sufficiency, and reduction in 
        welfare dependency;
            ``(3) to provide resources and authority to States and 
        local communities and increase ease of access to high quality 
        employment, training, and literacy programs;
            ``(4) to provide adults with the adult education services 
        they require to participate fully in society;
            ``(5) to meet the needs of employers in the United States 
        to be competitive; and
            ``(6) to ensure an adequate return on the investment of 
        funds in employment, training, and literacy programs through 
        strong program accountability.''.

SEC. 102. AUTHORIZATION OF APPROPRIATIONS.

    Section 3 of the Job Training Partnership Act (29 U.S.C. 1502) is 
amended to read as follows:

``SEC. 3. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated the 
following amounts for the following purposes (in addition to amounts 
otherwise available for such purposes):
            ``(1) Title ii.--Such sums as may be necessary for each of 
        the fiscal years 1999 through 2003 to carry out title II.
            ``(2) Title iii.--(A) Such sums as may be necessary for 
        each of the fiscal years 1999 through 2003 to carry out section 
        312(a)(1).
            ``(B) Such sums as may be necessary for each of the fiscal 
        years 1999 through 2003 to carry out section 312(a)(2).
            ``(3) Parts a, c, d, and e of title iv.--Subject to 
        subsection (b), such sums as may be necessary for each of the 
        fiscal years 1999 through 2003 to carry out parts A, C, D, and 
        E of title IV.
            ``(4) Part b of title iv.--Such sums as may be necessary 
        for each of the fiscal years 1999 through 2003 to carry out 
        part B of title IV.
    ``(b) Reservations.--Of the amount appropriated under subsection 
(a)(3) for a fiscal year--
            ``(1) not less than $70,000,000 shall be reserved for 
        carrying out section 401;
            ``(2) not less than $70,000,000 shall be reserved for 
        carrying out section 402; and
            ``(3) the remainder shall be reserved for carrying out 
        parts C, D, and E of title IV.
    ``(c) Reallotment.--
            ``(1) In general.--The Secretary of Labor shall, in 
        accordance with this subsection, reallot to eligible States 
        amounts appropriated for programs authorized under titles II 
        and title III of this Act that are available for reallotment.
            ``(2) Amount.--The amount available for reallotment is 
        equal to the amount by which the unobligated balance of the 
        State allotment under title II or title III, respectively, at 
        the end of the program year prior to the program year for which 
        the determination under this paragraph is made exceeds 20 
        percent of such allotment for the prior program year.
            ``(3) Reallotment.--In making reallotments to eligible 
        States of amounts available pursuant to paragraph (2) for a 
        program year, the Secretary shall allot to each eligible State 
        an amount based on the relative amount allotted to such State 
        under title II or title III, respectively, for the prior 
        program year as compared to the total amount allotted to all 
        eligible States under title II or title III, respectively, for 
        such prior program year.
            ``(4) Eligibility.--For purposes of this subsection, an 
        eligible State means a State which has obligated at least 80 
        percent of its allotments under title II or title III, 
        respectively, for the program year prior to the program year 
        for which the determination under this subsection is made.
            ``(5) Procedures.--The Governor of each State shall 
        prescribe uniform procedures for the obligation of funds by 
        workforce development areas within the State in order to avoid 
        the requirement that funds be made available for reallotment 
        under this subsection. The Governor shall further prescribe 
        equitable procedures for making funds available from the State 
        and workforce development areas in the event that a State is 
        required to make funds available for reallotment under this 
        paragraph.''.

SEC. 103. DEFINITIONS.

    Section 4 of the Job Training Partnership Act (29 U.S.C. 1503) is 
amended--
            (1) in paragraph (1) to read as follows:
            ``(1) Adult education and literacy activities.--The term 
        `adult education and literacy activities' means the activities 
        authorized under section 314 of the Adult Education and Family 
        Literacy Act.'';
            (2) by striking paragraph (2);
            (3) by inserting after paragraph (1) the following:
            ``(2) Appropriate secretary.--The term `appropriate 
        Secretary' means--
                    ``(A) the Secretary of Labor, with respect to 
                programs authorized under titles II, III, and IV of 
                this Act; and
                    ``(B) the Secretary of Education, with respect to 
                programs authorized under the Adult Education and 
                Family Literacy Act.'';
            (4) in paragraph (3), by striking ``under parts A and C of 
        title II'' and inserting ``under title II and title III'';
            (5) in paragraph (4) to read as follows:
            ``(4) Chief elected official.--The term `chief elected 
        official' means the chief elected executive officer of a unit 
        of general local government in a workforce development area.'';
            (6) in paragraph (5) to read as follows:
            ``(5) Community-based organization.--The term `community-
        based organization' means a private nonprofit organization that 
        is representative of a community or a significant segment of a 
        community and that has demonstrated the ability, or that can 
        demonstrate a capacity, to effectively administer a program 
        under this Act.'';
            (7) by striking paragraph (6);
            (8) by inserting after paragraph (5) the following:
            ``(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) is eligible for or has exhausted entitlement 
                to unemployment compensation; and
                    ``(iii) is unlikely to return to a previous 
                industry or occupation;
                    ``(B) 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 
                and substantial layoff at, a plant, facility, or 
                enterprise;
                    ``(C) was self-employed (including a farmer and a 
                rancher) but is unemployed as a result of general 
                economic conditions in the community in which the 
                individual resides or because of natural disasters;
                    ``(D) is a displaced homemaker; or
                    ``(E) has become unemployed as a result of a 
                Federal action that limits the use of, or restricts 
                access to, a marine natural resource.'';
            (9) in paragraph (10) to read as follows:
            ``(10) Individual with a disability.--(A) 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) The term `individuals with disabilities' means more 
        than one individual with a disability.'';
            (10) by striking paragraph (11);
            (11) in paragraph (14), by striking ``section 521(22) of 
        the Carl D. Perkins Vocational Education Act'' and inserting 
        ``section 14101 of the Elementary and Secondary Education Act 
        of 1965 (20 U.S.C. 8801)'';
            (12) in paragraph (18), by striking all after ``institution 
        of higher education'' and inserting ``(as such term is defined 
        in section 481 of the Higher Education Act of 1965 (20 U.S.C. 
        1088)) that continues to meet the eligibility and certification 
        requirements under title IV of such Act (20 U.S.C. 1070 et 
        seq.).'';
            (13) by striking paragraph (19);
            (14) in paragraph (21) to read as follows:
            ``(21) Secretaries.--The term `Secretaries' means the 
        Secretary of Labor and the Secretary of Education.'';
            (15) in paragraph (22) to read as follows:
            ``(22) State.--The term `State' means each of the several 
        States of the United States, the District of Columbia, and the 
        Commonwealth of Puerto Rico.'';
            (16) in paragraph (24) to read as follows:
            ``(24) Supportive services.--The term `supportive services' 
        means services such as transportation, child care, dependent 
        care, and needs-based payments, that are necessary to enable an 
        individual to participate in programs authorized under title II 
        and title III of this Act, consistent with the provisions of 
        such titles.'';
            (17) in paragraph (27) to read as follows:
            ``(27) Veteran.--The term `veteran' has the meaning given 
        such term in section 101(2) of title 38, United States Code.'';
            (18) by striking paragraph (35);
            (19) by striking paragraph (36);
            (20) in paragraph (37), by striking ``post-termination 
        services authorized under sections 204(c)(4) and 264(d)(5) and 
        follow up services authorized under section 253(d)'' and 
        inserting ``follow up services authorized under this Act''; and
            (21) by adding at the end the following:
            ``(41) Employment, training and literacy programs.--The 
        term `employment, training and literacy programs' means 
        programs authorized under titles II and III of this Act and the 
        Adult Education and Family Literacy Act.
            ``(42) English literacy program.--The term `English 
        literacy program' means a program of instruction designed to 
        help individuals of limited English proficiency achieve full 
        competence in the English language.
            ``(43) Family literacy services.--The term `family literacy 
        services' means services provided to participants on a 
        voluntary basis that are of sufficient intensity in terms of 
        hours, and of sufficient duration, to make sustainable changes 
        in a family (such as eliminating or reducing welfare 
        dependency) and that integrate all of the following activities:
                    ``(A) Interactive literacy activities between 
                parents and their children.
                    ``(B) Equipping parents to partner with their 
                children in learning.
                    ``(C) Parent literacy training that leads to 
                economic self-sufficiency.
                    ``(D) Appropriate instruction for children of 
                parents receiving parent literacy services.
            ``(44) Full service eligible providers.--The term `full 
        service eligible provider' means a provider designated under 
        section 123(c).
            ``(45) Human resource programs.--The term `human resource 
        programs' means programs identified under section 103.
            ``(46) Individual of limited english proficiency.--The term 
        `individual of limited English proficiency' means an 
        individual--
                    ``(A) who has limited ability in speaking, reading, 
                or writing the English language; and
                    ``(B)(i) whose native language is a language other 
                than English; or
                    ``(ii) who lives in a family or community 
                environment where a language other that English is the 
                dominant language.
            ``(47) Literacy.--The term `literacy' used with respect to 
        an individual, means the ability of the individual to speak, 
        read, and write English, and compute and solve problems, at 
        levels of proficiency necessary--
                    ``(A) to function on the job, in the family of the 
                individual, and in society;
                    ``(B) to achieve the goals of the individual; and
                    ``(C) to develop the knowledge potential of the 
                individual.
            ``(48) Local benchmarks.--The term `local benchmarks' means 
        the expected level of performance of a local workforce 
        development area established pursuant to section 153(b).
            ``(49) Local board.--The term `local board' means a local 
        workforce development board established under section 122.
            ``(50) Local workforce development area.--The term `local 
        workforce development area' means an area designated under 
        section 121(a).
            ``(51) On-the-job training.--The term `on-the-job training' 
        means training by an employer 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, 
                taking into account the content of the training, the 
                prior work experience of the participant, and the 
                service strategy of the participant, as appropriate.
            ``(52) 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.
            ``(53) Rapid response assistance.--The term `rapid response 
        assistance' means assistance provided by a State, or by an 
        entity designated by a State, with funds provided by the State 
        under section 313(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 voluntary labor 
                management committees with the ability to devise and 
                implement a strategy for assessing the employment and 
                training needs of dislocated workers and obtaining 
                services to meet those 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.
            ``(54) Representatives of employees.--For purposes of 
        section 122, the term `representatives of employees' means--
                    ``(A) individuals who have been elected by 
                organizations, associations, or a network of similar 
                institutions to represent the economic interests of 
                employees at a significant segment of workplaces 
                located in, or adjacent to, the local workforce 
                development area; or
                    ``(B) individuals from organizations, associations, 
                or a network of similar institutions, with expertise to 
                represent, or experience representing, the interests of 
                employees with respect to the job training priorities 
                in the local workforce development area.
            ``(55) Skill grant.--The term `skill grant' means a voucher 
        or credit issued to a participant under section 314(c)(6)(A) 
        for the purchase of training services from eligible providers 
        of such services.
            ``(56) State adjusted benchmarks.--The term `state adjusted 
        benchmarks' means a state's expected levels of performance 
        established pursuant to 153(a).
            ``(57) State benchmark.--The term `State benchmark' means 
        the benchmarks established by the state pursuant to section 
        152(a).
            ``(58) Statewide system.--The term `statewide system' means 
        a statewide employment and training and literacy system that 
        includes programs authorized under titles II and III of this 
        Act and the Adult Education and Family Literacy Act.''.

         Subtitle B--State and Local Administrative Provisions

SEC. 111. STATE ADMINISTRATIVE PROVISIONS.

    Part A of title I of the Job Training Partnership Act (29 U.S.C. 
1511 et seq.) is amended to read as follows:

               ``PART A--STATE ADMINISTRATIVE PROVISIONS

``SEC. 101. STATE PLAN.

    ``(a) In General.--For a State to be eligible to receive an 
allotment under title II or III, the Adult Education and Family 
Literacy Act, or section 6 of the Wagner-Peyser Act (29 U.S.C. 49e), 
the Governor of the State shall submit to Secretaries, for 
consideration by the appropriate Secretary, a single comprehensive 
State plan that provides a 3-year strategy and policy guidance with 
respect to the Statewide system, and programs authorized under the 
Wagner-Peyser Act (29 U.S.C. 49 et seq.), operated in the State. Such 
plan shall meet the requirements of this section and section 102.
    ``(b) Contents.--The State plan shall include the following:
            ``(1) A description of the collaborative process described 
        in section 102, including a description of the manner in which 
        the individuals and entities involved in such process 
        collaborated in the development of the plan and will continue 
        to collaborate in carrying out the functions described in 
        section 102(c).
            ``(2) Information describing--
                    ``(A) the needs of the State with regard to current 
                and projected demands for workers, by occupation;
                    ``(B) the skills and economic development needs of 
                the State; and
                    ``(C) the type and availability of employment and 
                training services in the State.
            ``(3)(A) A description of the State long-term goals for the 
        Statewide system.
            ``(B) An identification of the benchmarks that the State 
        will use to measure its progress toward meeting the goals 
        described in subparagraph (A) based on the core indicators of 
        performance described in section 154.
            ``(C) A description of how the goals and benchmarks will 
        ensure continuous improvement of the Statewide system and make 
        such system relevant and responsive to labor market, skill, and 
        literacy needs at the State and local levels.
            ``(4) An identification of local workforce development 
        areas in the State, including a description of the process used 
        for the designation of such areas.
            ``(5) An identification of criteria to be used by local 
        chief elected officials for the appointment of members of local 
        workforce development boards, consistent with the provisions of 
        section 122.
            ``(6)(A) A description of measures that will be taken by 
        the State to assure coordination and consistency and avoid 
        duplication among employment, training, and literacy programs 
        receiving assistance under this Act, and, at a minimum, 
        programs carried out under the Wagner-Peyser Act (29 U.S.C. 49 
        et seq.), the Rehabilitation Act of 1973 (20 U.S.C. 701 et 
        seq.), title I of the Personal Responsibility and Work 
        Opportunity Reconciliation Act of 1996, the Community Services 
        Block Grant Act, title V of the Older Americans Act of 1965, 
        the National and Community Service Act of 1990, and programs 
        carried out by the Veterans' Employment and Training Service 
        with funds received under section 4103 of title 38, United 
        States Code, including a description of common data collection 
        and reporting processes.
            ``(B) Information identifying how any funds that a State 
        receives through the allotments made under this Act will be 
        leveraged with other private and public resources (including 
        funds made available to the State under the Wagner-Peyser Act 
        (29 U.S.C. 49 et seq.)) and other human resource programs to 
        maximize the effectiveness of such resources, and expand the 
        participation of business, industry, employees, and individuals 
        in the Statewide system.
            ``(7) A description of the process used by the State to 
        provide an opportunity for public comment, and input into 
        development of the plan, prior to submission of the plan.
            ``(8) A description of the within-State allocation formulas 
        developed through the collaborative process pursuant to 
        sections 204(b)(2) and 313(b), through which the State will 
        distribute funds to local workforce development areas, 
        including--
                    ``(A) a description of how the individuals and 
                entities involved in the collaborative process, 
                including representatives of the State legislature, 
                determined the factors for such formulas;
                    ``(B) a description of how such individuals and 
                entities consulted with chief elected officials in 
                local workforce development areas throughout the State 
                in determining such formulas; and
                    ``(C) assurances that such formulas will result in 
                funds being distributed equitably throughout the State, 
                that no one factor in such formulas receive 
                disproportionate weighting, and that such formulas 
                protect local workforce development areas from 
                significant shifts in funding from year to year.
            ``(9)(A) With respect to employment and training programs 
        for disadvantaged youth authorized under title II, information 
        describing the State's strategy for providing comprehensive 
        services to disadvantaged youth, particularly those youth who 
        are recognized as having significant barriers to employment, 
        and a description of how the State intends to use its State 
        reserve funds (described in section 204(a)) to serve areas in 
        the State with high concentrations of disadvantaged youth.
            ``(B) An assurance that each local workforce development 
        area will be allowed to determine the proportion of funds 
        allocated to such area under section 204(b)(2) that will be 
        used to provide summer employment opportunities and year-round 
        disadvantaged youth activities, respectively.
            ``(10) With respect to employment and training programs for 
        adults and dislocated workers authorized under title III, 
        information--
                    ``(A) describing the employment and training 
                activities that will be carried out with the funds 
                received by the State through the allotments made under 
                section 312, including a description of how the State 
                will provide rapid response assistance to dislocated 
                workers from funds reserved under section 313(a)(2);
                    ``(B) describing the strategy of the State 
                (including the timeframe for such strategy) for 
                development of a fully operational statewide full 
                service employment and training delivery system as 
                described in section 123, including the steps that the 
                State will take over the 3 years covered by the plan, 
                working with local workforce development boards, to 
                provide information to individuals through the full 
                service employment and training delivery system on the 
                quality of employment, training, and literacy services;
                    ``(C) describing the procedures the State will use, 
                working with local workforce development boards, to 
                identify eligible providers of training services 
                described in section 314(c), as required under section 
                124; and
                    ``(D) describing how the State will serve the 
                employment and training needs of dislocated workers 
                (including displaced homemakers), economically 
                disadvantaged individuals (including welfare 
                recipients), individuals training for nontraditional 
                employment, and other individuals with multiple 
                barriers to employment (including older workers and 
                individuals with disabilities).
            ``(11) With respect to adult education and literacy 
        activities authorized under part A of the Adult Education and 
        Family Literacy Act--
                    ``(A) a description of the assessment that will be 
                made to determine the adult education and family 
                literacy needs of the State;
                    ``(B) a description of the adult education and 
                literacy activities that will be carried out with any 
                funds received under such part, including activities 
                carried out under section 314(a) of such Act;
                    ``(C) a description of how the adult education and 
                literacy activities that will be carried out with any 
                funds received under such part will be integrated with 
                other adult education, career development, and 
                employment and training activities in the State or 
                outlying area of the eligible agency;
                    ``(D) a description of how the eligible agency 
                annually will evaluate the effectiveness of the adult 
                education and literacy activities that are carried out 
                with any funds received under such part;
                    ``(E) an assurance that any funds received under 
                such part will not be expended for any purpose other 
                than the activities described in sections 313 and 314 
                of such Act;
                    ``(F) an assurance that the eligible agency will 
                expend any funds received under such part only in a 
                manner consistent with the fiscal requirements in 
                section 315 of such Act;
                    ``(G) an assurance that the eligible agency will 
                award not less than 1 grant under such part to 
                providers who offer flexible schedules and necessary 
                support services (such as child care and 
                transportation) to enable individuals, including 
                individuals with disabilities or other special needs to 
                participate in adult education and literacy activities; 
                and
                    ``(H) a description of the steps the State will 
                take to ensure direct and equitable access, as 
                stipulated in section 313(c)(2) of the Adult Education 
                and Family Literacy Act.
            ``(12) With respect to programs authorized under the 
        Wagner-Peyser Act (29 U.S.C. 49 et seq.), the plan information 
        required under section 8 of such Act.
    ``(c) Plan Submission.--A State plan submitted to the Secretaries 
under this section shall be approved by the appropriate Secretary 
unless such Secretary makes a written determination, within 90 days 
after receiving the plan, that the plan is inconsistent with the 
specific provisions of this Act.
    ``(d) Special Rules.--
            ``(1) Governor.--The Governor of a State shall have final 
        authority to determine the content of the portion of the State 
        plan described in paragraphs (1) through (9)(A), paragraph 
        (10), and paragraph (12) of subsection (b).
            ``(2) Eligible agency.--The eligible agency for adult 
        education and literacy in a State shall have final authority to 
        determine the content of the portion of the State plan 
        described in paragraph (11) of subsection (b).
    ``(e) Modifications to Plan.--A State may submit modifications to a 
State plan in accordance with the requirements of this section and 
section 102 as necessary during the 3-year period covered by the plan.

``SEC. 102. COLLABORATIVE PROCESS.

    ``(a) In General.--A State shall use a collaborative process in the 
development of the State plan described in section 101 and in carrying 
out the functions described under subsection (c). Such collaborative 
process shall be carried out by, at a minimum, the following 
individuals and entities (who overall, represent diverse regions of the 
State, including urban, rural, and suburban areas):
            ``(1) the Governor;
            ``(2) representatives of the State legislature;
            ``(3) representatives, appointed by the Governor, of--
                    ``(A) business and industry;
                    ``(B) local chief elected officials (representing 
                both cities and counties, where appropriate);
                    ``(C) local educational agencies (including adult 
                education and literacy providers);
                    ``(D) postsecondary institutions (including 
                community and technical colleges);
                    ``(E) organizations representing individuals served 
                by programs authorized under this Act (including 
                community-based organizations);
                    ``(F) organizations serving individuals 
                participating in programs authorized under this Act and 
                the Adult Education and Family Literacy Act;
                    ``(G) parents; and
                    ``(H) employees (which may include labor);
            ``(4) the lead State agency official or officials for--
                    ``(A) employment security;
                    ``(B) job training;
                    ``(C) the State educational agency;
                    ``(D) the eligible agency for vocational education;
                    ``(E) the eligible agency for adult education and 
                literacy;
                    ``(F) the State agency responsible for 
                postsecondary education;
                    ``(G) the State agency responsible for welfare; and
                    ``(H) the State agency responsible for vocational 
                rehabilitation, and where applicable, the State agency 
                providing vocational rehabilitation program activities 
                for the blind;
            ``(5) such other State agency officials, including 
        officials responsible for economic development, as the Governor 
        may designate; and
            ``(6) the representative of the Veterans' Employment and 
        Training Service assigned to the State under section 4103 of 
        title 38, United States Code.
    ``(b) Clarification.--For purposes of complying with subsection 
(a), a State may use any State collaborative process (including a 
council, board, State Human Resource Investment Council established 
under section 103, or a similar entity) that meets or is conformed to 
meet the requirements of such subsection.
    ``(c) Additional Functions of the Collaborative Process.--In 
addition to development of the State plan, the individuals and entities 
described in subsection (a) shall collaborate in--
            ``(1) the designation of local workforce areas as required 
        under section 121;
            ``(2) the development of allocation formulas for the 
        distribution of funds to local workforce development areas for 
        programs authorized under title II and title III;
            ``(3) the development of the State goals and benchmarks as 
        required under part C of this title, including the continued 
        updating of such goals and benchmarks;
            ``(4) the provision of management guidance and review for 
        all programs in the State, including review of the operation of 
        programs conducted in each local workforce development area, 
        and the availability, responsiveness, and adequacy of State 
        services, and make recommendations to the Governor, the State 
        legislature, appropriate chief elected officials, local 
        workforce development boards, and service providers throughout 
        the State regarding the findings of such review;
            ``(5) the continued development of linkages between 
        employment, training, literacy, and other human resource and 
        workforce preparation programs in the State;
            ``(6) comment at least once annually on the measures taken 
        pursuant to section 113(b)(14) of the Carl D. Perkins 
        Vocational Education Act; and
            ``(7) review plans of all State agencies providing 
        employment, training, literacy, and related services, and 
        provide comments and recommendations to the Governor, the State 
        legislature, the State agencies, and the appropriate federal 
        agencies on the relevancy and effectiveness of employment, 
        training, literacy, and related delivery systems in the 
        State.''.

SEC. 112. LOCAL ADMINISTRATIVE PROVISIONS.

    Part B of title I of the Job Training Partnership Act (29 U.S.C. 
1531 et seq.) is amended by striking sections 121 through 123 and 
inserting the following:

``SEC. 121. LOCAL WORKFORCE DEVELOPMENT AREAS.

    ``(a) Designation of areas.--
            ``(1) In general.--Except as provided in subsection (b), 
        and consistent with paragraph (2), a State that desires to 
        receive a grant under title II or title III shall, through the 
        collaborative process established under section 102 and after 
        consultation with local chief elected officials, and after 
        consideration of comments received through the public comment 
        process as described in section 101(b)(7) of the State plan, 
        designate local workforce development areas within the State 
        that are consistent with labor market areas, or a substantial 
        portion of a labor market area, and that take into 
        consideration the following:
                    ``(A) Units of general local government.
                    ``(B) Geographic areas served by local educational 
                agencies and intermediate educational agencies.
                    ``(C) Geographic areas served by postsecondary 
                institutions and area vocational education schools.
                    ``(D) Service delivery areas established under 
                section 101 of this Act (as such section was in effect 
                on the day before the date of the enactment of the 
                Employment, Training, and Literacy Enhancement Act of 
                1997).
                    ``(E) The distance that individuals will need to 
                travel to receive services.
            ``(2) Automatic designation.--The Governor shall approve 
        any request for designation as a workforce development area 
        from any unit of general local government with a population of 
        500,000 or more.
    ``(b) Small States.--Any State determined to be eligible to receive 
a minimum allotment under section 203(b)(2)(D) or paragraph (1)(B)(iv) 
or paragraph (2)(B)(iv) of section 312(b) may designate itself, through 
the collaborative process established pursuant to section 102, and 
after consultation with local chief elected officials, and 
consideration of comments received through the public comment process 
described in section 101(b)(7) of the State plan, as a single State 
workforce development area for purposes of this Act.

``SEC. 122. LOCAL WORKFORCE DEVELOPMENT BOARDS.

    ``(a) Establishment.--There shall be established in each local 
workforce development area of a State, and certified by the Governor of 
the State, a local workforce development board (hereinafter referred to 
as the `local board'), reflecting business and community interests in 
employment, training, and other workforce preparation activities.
    ``(b) Membership.--
            ``(1) State criteria.--The Governor of the State, through 
        the collaborative process described in section 102, shall 
        establish criteria for use by local chief elected officials in 
        the local workforce development areas for appointment of 
        members of the local boards in such local areas in accordance 
        with the requirements of paragraph (2).
            ``(2) Composition.--(A) Such criteria shall require at a 
        minimum, that the membership of each local board consist of--
                    ``(i) a majority of members who are representatives 
                of business and industry in the local workforce 
                development area, who are owners of businesses, chief 
                executives or chief operating officers of private 
                business, and other business executives with optimum 
                policymaking authority in local businesses, appointed 
                from among individuals nominated by local business 
                organizations and trade associations;
                    ``(ii) representatives of local educational 
                entities, including representatives of local 
                educational agencies, local school boards, 
                postsecondary educational institutions (including 
                representatives of community colleges), and 
                representatives of providers of adult education and 
                literacy services, where such schools, institutions, 
                educators, or providers, as appropriate, exist, 
                selected from among individuals nominated by regional 
                or local educational agencies, institutions, or 
                organizations representing such individuals or 
                entities; and
                    ``(iii) representatives of community-based 
                organizations (including, as appropriate, a community-
                based organization that provides direct job training 
                and placement services to individuals with 
                disabilities), employees (which may include labor), and 
                other representatives of the public who may include 
                program participants, parents, individuals with 
                disabilities, older workers, veterans, or organizations 
                serving such individuals, as nominated to the board by 
                regional or local agencies, institutions, or 
                organizations representing such individuals or 
                entities.
            ``(B) In addition, the membership of each local board may 
        consist of representatives of local welfare agencies, economic 
        development agencies, and the local employment service system.
            ``(3) Chairperson.--The local board shall elect a 
        chairperson from among the members of the board.
    ``(c) Appointment and Certification of Board.--
            ``(1) Appointment of board members and assignment of 
        responsibilities.--
                    ``(A) In general.--The chief elected official in a 
                local workforce development area is authorized to 
                appoint the members of the local board for such area, 
                in accordance with the State criteria established under 
                subsection (b).
                    ``(B) Multiple units of local government in area.--
                            ``(i) In general.--In a case in which a 
                        local workforce development 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 board from the 
                                individuals nominated or recommended to 
                                be such members in accordance with the 
                                criteria established under subsection 
                                (b); and
                                    ``(II) in carrying out any other 
                                responsibilities assigned to such 
                                officials.
                            ``(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 board from individuals so 
                        nominated or recommended.
            ``(2) Certification.--
                    ``(A) In general.--The Governor is authorized to 
                biennially certify 1 local board for each local 
                workforce development area in the State.
                    ``(B) Criteria.--Such certification shall be based 
                on factors including the criteria established under 
                subsection (b) and, for a second or subsequent 
                certification, the extent to which the local board has 
                ensured that employment and training activities and 
                disadvantaged youth activities carried out in the local 
                workforce development area have met expected levels of 
                performance with respect to the local benchmarks 
                negotiated pursuant to subsection (d)(6)(A).
                    ``(C) Failure to achieve certification.--Failure of 
                a local board to achieve certification shall result in 
                reappointment and certification of another local board 
                for the local workforce development area pursuant to 
                the process described in paragraph (1) and this 
                paragraph.
            ``(3) Decertification.--
                    ``(A) Fiscal noncompliance.--Notwithstanding 
                paragraph (2), the Governor may decertify a local board 
                if it is determined as a result of financial and 
                compliance audits that there is a substantial violation 
                of a specific requirement under this Act and corrective 
                action has not been taken, in accordance with section 
                164. If the Governor decertifies a local board for a 
                local workforce development area under this 
                subparagraph, the Governor may require that a new local 
                board be appointed and certified for the local 
                workforce development area pursuant to a reorganization 
                plan developed by the Governor under section 164(b)(1) 
                and in accordance with the criteria established under 
                subsection (b).
                    ``(B) Nonperformance.--Notwithstanding paragraph 
                (2), the Governor may decertify a local board if a 
                local workforce development area fails to meet the 
                local benchmarks established pursuant to section 153(b) 
                for such local area for two consecutive program years 
                (in accordance with section 156(b)(2)). If the Governor 
                decertifies a local board for a local workforce 
                development area under this subparagraph, the Governor 
                may require that a new local board be appointed and 
                certified for the local area pursuant to a 
                reorganization plan developed by the Governor under 
                section 156(b)(2) and in accordance with the criteria 
                established under subsection (b).
            ``(4) Single state area.--Notwithstanding subsection (b) 
        and paragraphs (1) and (2), if a State described in section 
        121(b) indicates in the State plan that the State will be 
        treated as a local workforce development area for purposes of 
        the application of this Act, the Governor may designate the 
        individuals and entities involved in the collaborative process 
        described in section 105 to carry out the functions described 
        in subsection (d).
    ``(d) Functions of Local Board.--The functions of the local board 
shall include the following:
            ``(1) Local plan.--
                    ``(A) In general.--Each local board, in partnership 
                with the chief local elected official, shall develop 
                and submit to the Governor, for approval, a 
                comprehensive 3-year strategic local plan. The local 
                plan shall be consistent with the State goals and State 
                plan described in section 101.
                    ``(B) Contents.--The local plan shall include--
                            ``(i) an identification of the workforce 
                        development needs of local industries, job 
                        seekers, and workers;
                            ``(ii) a description of the disadvantaged 
                        youth activities and the employment and 
                        training activities for adults and dislocated 
                        workers to be carried out in the local 
                        workforce development area as required under 
                        titles II and III, that, with activities 
                        authorized under the Wagner-Peyser Act (29 
                        U.S.C. 49 et seq.), will contribute to the 
                        coherent delivery of employment, training and 
                        workforce preparation activities in the local 
                        area;
                            ``(iii) a description of the local 
                        benchmarks negotiated with the Governor 
                        pursuant to paragraph (6)(A), to be used by the 
                        local board for measuring the performance of 
                        the local administrative entity (where 
                        appropriate), eligible providers of services 
                        authorized under titles II and III, and the 
                        performance of the full service employment and 
                        training delivery system in the local workforce 
                        development area;
                            ``(iv) a description of the local full 
                        service employment and training delivery system 
                        to be established or designated in the local 
                        workforce development area, including--
                                    ``(I) a description of the process 
                                negotiated with the Governor pursuant 
                                to paragraph (6)(B) that the local 
                                board will use to designate or certify 
                                full service eligible providers in the 
                                local workforce development area, which 
                                ensures that the most effective and 
                                efficient providers will be chosen;
                                    ``(II) a description of how the 
                                local board will ensure the continuous 
                                improvement of such full service 
                                eligible providers and that such 
                                providers will continue to meet the 
                                labor market needs of local employers 
                                and participants; and
                                    ``(III) an identification of the 
                                roles of individual employment, 
                                training, and other human resources 
                                programs, as determined appropriate, 
                                including programs authorized by the 
                                Wagner-Peyser Act (20 U.S.C. 49 et 
                                seq.), in carrying out the functions of 
                                the full service employment and 
                                training delivery system, including a 
                                description of the funding sources to 
                                be used in the operation of the full 
                                service employment and training system;
                            ``(v) an identification of the 
                        administrative entity designated by the local 
                        board in accordance with paragraph (5);
                            ``(vi) a description of the steps the local 
                        board will take to work with local educational 
                        agencies, postsecondary educational 
                        institutions (including community colleges, 
                        where applicable), vocational educators, 
                        providers of adult education and literacy 
                        services, and other representatives of the 
                        educational community to address local 
                        employment, education, and training needs, 
                        including a description of linkages established 
                        with such individuals and entities to enhance 
                        the provision of services, including supportive 
                        services, and avoid duplication;
                            ``(vii) a description of the process that 
                        will be used by the local board to fully 
                        involve representatives of the local community, 
                        including community-based organizations with 
                        experience in serving disadvantaged youth, the 
                        local education community (including vocational 
                        educators and teachers), parents, youth, local 
                        law enforcement agencies, and representatives 
                        of business and employees (which may include 
                        labor) in the development and implementation of 
                        disadvantaged youth programs in the local 
                        workforce development area, including a 
                        description of the process used (involving the 
                        individuals and organizations described in this 
                        clause) to ensure that the most effective and 
                        efficient providers are chosen to carry out the 
                        activities authorized under title II; and
                            ``(viii) such other information as the 
                        Governor may require.
            ``(2) Selection of providers.--
                    ``(A) Selection of full service providers.--
                Consistent with section 123 and the agreement 
                negotiated with the Governor under paragraph (6)(B)(i), 
                the local board is authorized to designate or certify 
                full service eligible providers, and to terminate for 
                cause, the eligibility of such providers.
                    ``(B) Selection of disadvantaged youth providers.--
                Consistent with section 207, the local board is 
                authorized to award grants on a competitive basis to 
                eligible providers of disadvantaged youth activities in 
                the local workforce development area.
            ``(3) Identification of eligible providers of training 
        services.--Consistent with section 124, the local board is 
        authorized to work in partnership with the Governor concerning 
        the identification of eligible providers of training services 
        described in section 314(c) in the local workforce development 
        area.
            ``(4) Budget and program oversight.--
                    ``(A) Budgeting.--
                            ``(i) In general.--The local workforce 
                        development board shall develop a budget for 
                        the purpose of carrying out local programs 
                        established under titles II and III and section 
                        123.
                            ``(ii) Approval of budget.--Such budget 
                        shall be subject to the approval of the chief 
                        elected official or officials in the local 
                        workforce development area.
                    ``(B) Program oversight.--The local workforce 
                development board, in partnership with the chief 
                elected official or officials in the local workforce 
                development area, shall conduct oversight of the 
                programs established under titles II and III and 
                section 123.
            ``(5) Administration.--
                    ``(A) Designation of administrative entity.--
                            ``(i) In general.--The local workforce 
                        development board may designate itself as the 
                        administrative entity for receipt and 
                        disbursement of funds made available for 
                        carrying out programs authorized under title II 
                        and title III of this Act, or the local board 
                        may designate an administrative entity (which 
                        may be the State through a mutual agreement 
                        between the local board and the State), for the 
                        purpose of receipt and disbursement of such 
                        funds.
                            ``(ii) Additional fiscal 
                        responsibilities.--Each administrative entity 
                        shall be responsible for the distribution of 
                        funds and shall have responsibility to take 
                        action against its subcontractors, subgrantees, 
                        and other recipients to eliminate abuses in the 
                        programs being carried out in the local 
                        workforce development area and to prevent any 
                        misuse of funds by subcontractors, subgrantees, 
                        and other recipients.
                    ``(B) Staff; grants and other contributions.--The 
                local board may employ its own staff, independent of 
                local programs and service providers, and may solicit 
                or accept grants and contributions from sources other 
                than from this Act.
                    ``(C) Prohibition on direct provision of 
                services.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), a local board or employees of such 
                        board may not directly provide services under 
                        programs established under this Act.
                            ``(ii) Waiver.--The Governor of the State 
                        in which the local board is located may grant 
                        to the local board a written waiver of the 
                        prohibition under clause (i) where necessary to 
                        improve performance or to provide a full array 
                        of services in the local area as may be 
                        particularly necessary in rural areas.
                    ``(D) Conflict of interest.--A member of a local 
                board may not--
                            ``(i) vote on a matter under consideration 
                        by the local board--
                                    ``(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
                            ``(ii) engage in any other activity 
                        determined by the Governor to constitute a 
                        conflict of interest.
            ``(6) Negotiations.--
                    ``(A) Local benchmarks.--The local board, the local 
                chief elected official, and the Governor shall 
                negotiate and reach agreement on local benchmarks 
                designed to meet the State goals described in the State 
                plan under section 101 for the local workforce 
                development area. In determining such benchmarks, the 
                Governor, the local chief elected official, and the 
                local board shall take into account the State adjusted 
                benchmarks described in section 153(a) with respect to 
                programs authorized under titles II and III, and 
                specific economic, demographic, and other 
                characteristics of the populations to be served in the 
                local workforce development area.
                    ``(B) Local delivery of services.--
                            ``(i) In general.--The local board, the 
                        local chief elected official, and the Governor 
                        shall negotiate and reach agreement on a 
                        process to be used by the local board that 
                        meets the requirements of subclauses (I) and 
                        (II) of paragraph (1)(B)(iv) for--
                                    ``(I) the designation or 
                                certification of full service eligible 
                                providers (as described in section 
                                123(c)) in the local workforce 
                                development area, including, consistent 
                                with State statute, a determination of 
                                the role of providers of activities 
                                authorized under the Wagner-Peyser Act 
                                (29 U.S.C. 49 et seq.) in the full 
                                service delivery of services in the 
                                local workforce development area; and
                                    ``(II) the continued role of the 
                                local board and the local elected 
                                official in conducting oversight with 
                                respect to full service eligible 
                                providers that are providers of 
                                activities authorized under the Wagner-
                                Peyser Act (29 U.S.C. 49 et seq.).
                            ``(ii) Established full service employment 
                        and training delivery system.--Notwithstanding 
                        this subsection and section 123(c), if a full 
                        service employment and training delivery system 
                        has been established in a local workforce 
                        development area prior to the date of enactment 
                        of this Act, or if approval has been obtained 
                        for a plan for a full service employment and 
                        training delivery system under the Wagner-
                        Peyser Act (29 U.S.C. 49 et seq.) prior to the 
                        date of enactment of this Act, the local board 
                        and the Governor involved may agree to certify 
                        such full service employment and training 
                        delivery system for purposes of this 
                        subparagraph.
            ``(7) Limitation.--Nothing in this Act shall be construed 
        to provide local workforce development boards with the 
        authority to mandate curriculum for schools.
    ``(e) Sunshine Provision.--
            ``(1) In general.--The local board shall make available to 
        the public, on a regular basis, information regarding the 
        activities of the local board, including information regarding 
        membership, the designation and certification of full service 
        employment and training eligible providers, the award of grants 
        to eligible providers of disadvantaged youth activities, and 
        upon request, minutes of formal meetings of the local board.
            ``(2) Local plan.--Prior to the submission of the local 
        plan to the Governor, under subsection (d)(1)(D)(ii), the local 
        board shall make such plan available for review and comment 
        to--
                    ``(A) appropriate community-based organizations and 
                local educational and other public agencies in the 
                local workforce development area;
                    ``(B) local business organizations and 
                representatives of employees in the local workforce 
                development area; and
                    ``(C) the general public through such means as 
                public hearings and local news media.

``SEC. 123. FULL SERVICE EMPLOYMENT AND TRAINING DELIVERY SYSTEM.

    ``(a) In General.--There shall be established in a State that 
receives an allotment under section 312, a full service employment and 
training delivery system that--
            ``(1) shall provide the core services described in 
        subsection (d), including the information described in part E 
        of title IV and labor exchange services authorized under the 
        Wagner-Peyser Act (29 U.S.C. 49 et seq.);
            ``(2) shall provide access to the activities carried out 
        under subsection (e), if any; and
            ``(3) shall provide access to intensive and training 
        services described in section 314, including serving as the 
        point of distribution of skill grants for training services to 
        participants in accordance with section 314(c)(6)(A).
    ``(b) Access to Delivery of Services.--
            ``(1) In general.--The State's full service employment and 
        training delivery system shall provide individuals and 
        employers with access to the services described in subsection 
        (a) through a network of eligible providers that assures 
        participants that such services will be available, regardless 
        of where the participants initially enter the system. At a 
        minimum, such services shall be available--
                    ``(A) through a network of full service employment 
                and training delivery centers, established in all local 
                workforce development areas in the State, that provide 
                all of the services described in subsection (a); or
                    ``(B) at not less than one full service employment 
                and training delivery center in each local workforce 
                development area in the State that provides all of the 
                services described in subsection (a), supplemented with 
                multiple affiliated sites that provide one or more of 
                such services and are linked through electronic and 
                technological access points.
            ``(2) Specialized centers.--Of the full service employment 
        and training delivery centers or affiliated sites described in 
        paragraph (1), such centers or sites may have a specialization 
        in addressing special needs, such as the needs of dislocated 
        workers.
    ``(c) Eligibility for Designation.--Any entity or consortium of 
entities located in a local workforce development area may be 
designated or certified by the local workforce development board (in 
accordance with section 122(d)(2)(A)) through a competitive process, or 
through an agreement reached between the local board and a consortium 
of entities, to operate a full service employment and training delivery 
center or to participate as an affiliated site in the full service 
employment and training delivery system. Such entities shall be known 
as `full service eligible providers' and may include--
            ``(1) institutions of higher education;
            ``(2) local employment service offices established under 
        the Wagner-Peyser Act (29 U.S.C 49 et seq.);
            ``(3) private, nonprofit organizations (including 
        community-based organizations);
            ``(4) private for-profit entities;
            ``(5) agencies of local government; and
            ``(6) other interested organizations and entities of 
        demonstrated effectiveness, including local chambers of 
        commerce and other business organizations, consistent with 
        State criteria as described in the State plan under section 
        101.
    ``(d) Core Services.--Funds made available to local workforce 
development areas under section 313(b), in addition to funds made 
available under the Wagner-Peyser Act, part E of title IV, and other 
related programs, shall be used to provide core services, which shall 
be available to all individuals through the full service employment and 
training delivery system and shall, at a minimum, include--
            ``(1) outreach, intake (which may include worker 
        profiling), and orientation to the information and other 
        services available through the full service employment and 
        training delivery system;
            ``(2) initial assessment of skill levels, aptitudes, 
        abilities, and supportive service needs;
            ``(3) job search and placement assistance, and where 
        appropriate, career counseling;
            ``(4) provision of accurate information relating to local, 
        regional, and national labor markets, including--
                    ``(A) job vacancy listings in such markets; and
                    ``(B) information relating to local occupations in 
                demand and the earnings and skill requirements for such 
                occupations;
            ``(5) provision of accurate information relating to the 
        quality and availability of employment, training, and literacy 
        activities authorized under titles II and III of this Act and 
        the Adult Education and Family Literacy Act, and of vocational 
        rehabilitation program activities as appropriate, and referral 
        to such activities;
            ``(6) provision of information relating to unemployment 
        compensation, publicly funded employment and training programs 
        (including registered apprenticeships), and forms of public 
        financial assistance, such as student aid programs, that may be 
        available in order to enable individuals to participate in 
        employment, training, literacy, and other workforce preparation 
        activities;
            ``(7) soliciting and accepting job orders submitted by 
        employers in the local workforce development area, and 
        screening and referring applicants in accordance with such 
        orders;
            ``(8) dissemination of lists of eligible training providers 
        and performance information regarding such providers in 
        accordance with section 124; and
            ``(9) any additional performance information with respect 
        to the full service employment and training delivery system in 
        the local workforce development area.
    ``(e) Permissible Services.--Funds made available to local 
workforce development areas under section 313(b) may be used to 
contribute to, through the full service employment and training 
delivery system--
            ``(1) co-location of services related to employment, 
        training, and literacy activities, such as unemployment 
        insurance, vocational rehabilitation program activities, 
        veterans' employment services, programs authorized under the 
        Wagner-Peyser Act (29 U.S.C. 49 et seq.), employment-related 
        services for welfare recipients, or other public assistance 
        activities;
            ``(2) customized screening and referral of qualified 
        participants to employment; and
            ``(3) customized employment-related services to employers 
        on a fee-for-service basis.

``SEC. 124. IDENTIFICATION OF TRAINING PROVIDERS.

    ``(a) Eligibility Requirements.--
            ``(1) In general.--Except as provided in subsection (e), to 
        be identified as an eligible provider of training services 
        under title III and to receive funds made available for the 
        provision of training services described in section 314(c) 
        (referred to in this section as `training services'), a 
        provider of such services shall meet the requirements of this 
        section.
            ``(2) Postsecondary educational institution.--Subject to 
        the provisions of this section, a postsecondary educational 
        institution shall automatically be eligible to provide training 
        services under title III for programs that are eligible to 
        participate in title IV of the Higher Education Act of 1965.
            ``(3) Other eligible providers.--
                    ``(A) Procedure.--
                            ``(i) In general.--The Governor shall 
                        establish a procedure for use by local 
                        workforce development boards in determining the 
                        eligibility of public and private providers not 
                        described in paragraph (2) (including 
                        eligibility of postsecondary educational 
                        institutions for programs not described in 
                        paragraph (2)) to receive such funds.
                            ``(ii) Factors.--In developing such 
                        procedure, the Governor--
                                    ``(I) shall solicit and take into 
                                consideration the recommendations of 
                                local workforce development boards and 
                                providers of training services within 
                                the State; and
                                    ``(II) shall take into 
                                consideration--
                                            ``(aa) the specific 
                                        economic, geographic, and 
                                        demographic factors in the 
                                        local areas in which eligible 
                                        providers are located; and
                                            ``(bb) the characteristics 
                                        of the populations served by 
                                        the eligible providers, 
                                        including the demonstrated 
                                        difficulties in serving such 
                                        populations, where applicable.
                    ``(B) Levels of performance.--At a minimum, the 
                procedure described in subparagraph (A) shall require 
                such a provider to meet minimum acceptable levels of 
                performance based on verifiable program-specific 
                performance information described in subsection (b) and 
                submitted to the State agency designated under 
                subsection (c), as required under paragraphs (2) and 
                (3) of subsection (c).
    ``(b) Performance Information.--
            ``(1) Required information.--Pursuant to subsection (c)(2), 
        to be eligible to provide training services under title III, a 
        provider shall submit information on--
                    ``(A) program completion rates for individuals in 
                the applicable program conducted by the provider;
                    ``(B) the percentage of individuals in the 
                applicable program who obtain employment, which may 
                also include information specifying the percentage of 
                individuals who obtain employment in an occupation 
                related to the program conducted;
                    ``(C) the earnings at placement of individuals who 
                complete the program; and
                    ``(D) for literacy providers or providers of 
                integrated education and training services, the success 
                rate of the applicable program in raising the literacy 
                levels of individuals in skill areas that are 
                considered important for successful participation in 
                training and employment.
            ``(2) Additional information.--Subject to paragraph (3), in 
        addition to the performance information described in paragraph 
        (1), the Governor may require that a provider described in this 
        paragraph submit such other performance information as the 
        Governor determines to be appropriate, which may include 
        information relating to--
                    ``(A) the retention in employment and the 
                subsequent earnings of the individuals who complete the 
                applicable program;
                    ``(B) where appropriate, the rates of licensure or 
                certification of individuals who complete the program;
                    ``(C) the percentage of individuals who complete 
                the program who attain industry-recognized occupational 
                skills in the subject, occupation, or industry for 
                which training is provided, where applicable; and
                    ``(D) the adequacy of space, staff, equipment, 
                instructional materials, and student support services 
                offered by the provider through a program conducted by 
                the provider.
            ``(3) Conditions.--
                    ``(A) In general.--If the Governor requests 
                additional information pursuant to paragraph (2) that 
                imposes extraordinary costs on providers, the Governor 
                shall provide access to cost-effective methods for the 
                collection of such information or provide additional 
                resources to assist providers in the collection of such 
                information from funds made available under section 
                313(a).
                    ``(B) Transition period for performance-based 
                information.--For program years 1999 and 2000, the 
                performance-based information to be submitted by a 
                provider under this subsection shall only be required 
                to be provided relating to the performance of 
                participants assisted under title III in lieu of all 
                individuals participating in the program of the 
                provider. Nothing in this subparagraph shall be 
                construed to prohibit the submission of performance-
                based information for all individuals participating in 
                the program of the provider as soon as is practicable 
                prior to program year 2001 and each provider shall be 
                encouraged to submit such information.
    ``(c) Administration.--
            ``(1) Designation.--The Governor shall designate a State 
        agency to collect and disseminate the performance information 
        described in subsection (b) and to carry out other duties 
        described in this subsection.
            ``(2) Submission.--A provider described in subsection (a) 
        shall submit the performance information described in 
        subsection (b) annually to the designated State agency at such 
        time and in such manner as the designated State agency may 
        require. The designated State agency may accept program-
        specific performance information consistent with the 
        requirements for eligibility under title IV of the Higher 
        Education Act of 1965 (20 U.S.C. 1070 et seq.) from such a 
        provider for purposes of enabling the provider to fulfill the 
        applicable requirements of this paragraph, if such information 
        is substantially similar to the information required under 
        subsection (b).
            ``(3) List of eligible providers.--
                    ``(A) In general.--The designated State agency 
                shall compile a list of eligible providers accompanied 
                by the performance information described in subsection 
                (b) consisting of--
                            ``(i) providers determined to be 
                        automatically eligible subject to subsection 
                        (a)(2); and
                            ``(ii) providers determined to be eligible 
                        by local workforce development boards, subject 
                        to subsection (a)(3).
                    ``(B) Availability.--The designated State agency 
                shall disseminate such lists and information to the 
                full service employment and training delivery system 
                and to local boards. Such list and information shall be 
                made widely available to participants in employment and 
                training programs authorized under title III and others 
                through the full service employment and training 
                delivery system described in section 123.
    ``(d) Enforcement.--
            ``(1) Accuracy of information.--If the designated State 
        agency 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 eligible provider to receive 
        funds described in subsection (a) for a period of time, but not 
        less than 2 years, as prescribed in regulations issued by the 
        Governor.
            ``(2) Noncompliance.--If the designated State agency, or 
        the local workforce development board working through the State 
        agency, determines that an eligible provider under subsection 
        (a) substantially violates any requirement under this Act, the 
        agency, or the local board through the State agency, may 
        terminate the eligibility of such provider to receive funds 
        described in subsection (a) for such program or take such other 
        action as the agency or local board determines to be 
        appropriate.
            ``(3) Nonperformance.--
                    ``(A) Termination for nonperformance.--If the 
                designated State agency, or the local workforce 
                development board working through the State agency, 
                determines that an eligible provider under subsection 
                (a) substantially fails to meet performance criteria 
                established by the Governor, the agency, or the local 
                board working through the State agency, may terminate 
                the eligibility of such provider.
                    ``(B) Factors.--In establishing the performance 
                criteria described under subparagraph (A)(i), the 
                Governor shall--
                            ``(i) solicit and take into consideration 
                        the recommendations of local workforce 
                        development boards and providers of training 
                        services within the State; and
                            ``(ii) take into consideration--
                                    ``(I) the specific economic, 
                                geographic, and demographic factors in 
                                the local areas in which eligible 
                                providers are located; and
                                    ``(II) the characteristics of the 
                                populations served by the eligible 
                                providers, including the demonstrated 
                                difficulties in serving such 
                                populations, where applicable.
            ``(4) Eligibility under the higher education act of 1965.--
        If the designated State agency determines that the eligibility 
        of an eligible provider described in subsection (a)(2) under 
        title IV of the Higher Education Act of 1965 has been 
        terminated, the agency--
                    ``(A) shall terminate the automatic eligibility of 
                the provider under subsection (a)(2); and
                    ``(B) shall require the provider to meet the 
                requirements of subsection (a)(3) to be eligible to 
                receive funds as described in subsection (a).
            ``(5) Repayment.--A provider whose eligibility is 
        terminated under paragraph (1) or (2) for a program shall be 
        liable for repayment of all funds described in subsection (a) 
        received for the program during any period of noncompliance 
        described in such paragraph.
            ``(6) Appeal.--The Governor shall establish a procedure for 
        an eligible provider to appeal a determination by the local 
        board or the designated state agency that results in the denial 
        or 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.
            ``(7) Construction.--This subsection shall be construed to 
        supplement, but not supplant, other civil and criminal remedies 
        and penalties.
    ``(e) On-The-Job Training Exception.--
            ``(1) In general.--Providers of on-the-job training, and 
        apprenticeship programs registered in accordance with the 
        National Apprenticeship Act, shall not be subject to the 
        requirements of subsection (a), (b), (c), or (d).
            ``(2) Collection and dissemination of information.--A full-
        service eligible provider in a local workforce development area 
        shall collect such performance information from on-the-job 
        training providers as the Governor may require, and disseminate 
        such information through the delivery of core services 
        described in section 123, as appropriate.''.

               Subtitle C--Program and Fiscal Provisions

                     CHAPTER 1--GENERAL PROVISIONS

SEC. 121. GENERAL PROGRAM REQUIREMENTS.

    (a) Employment and Training Opportunities.--Section 141(a) of the 
Job Training Partnership Act (29 U.S.C. 1551(a)) is amended--
            (1) by striking ``and shall make efforts'' and all that 
        follows and inserting a period; and
            (2) by adding at the end the following: ``In addition, 
        efforts shall be made to develop programs which contribute to 
        occupational development, upward mobility, development of new 
        careers, and overcoming sex-stereotyping in occupations 
        traditional for the other sex.''.
    (b) Relocation.--Section 141(c) of such Act (29 U.S.C. 1551(c)) is 
amended to read as follows:
    ``(c) Relocation.--
            ``(1) Prohibition on use of funds to encourage or induce 
        relocation.--No funds provided under title II, III, or IV shall 
        be used or proposed for use to encourage or induce the 
        relocation, of a business or part of a business, that results 
        in a loss of employment for any employee of such business at 
        the original location, if 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 title II, III, or IV 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 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 of Labor 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.''.
    (c) Training for Occupations in Demand.--Subsection (d) of section 
141 of such Act (29 U.S.C. 1551(d)) is hereby repealed.
    (d) Agreements Among Areas Relating to Education, Training, and 
Employment of Participants.--Section 141(e) of such Act (29 U.S.C. 
1551(e)) is amended--
            (1) by striking paragraph (1); and
            (2) in paragraph (2)--
                    (A) by striking ``(2)'';
                    (B) by striking ``service delivery area'' each 
                place it appears and inserting ``local workforce 
                development area''; and
                    (C) in the second sentence--
                            (i) by striking ``private industry 
                        council'' and inserting ``local workforce 
                        development board''; and
                            (ii) by striking ``section 104'' and 
                        inserting ``section 122(d)(1)''.
    (e) Prohibition on Certain Votes.--Subsection (f) of section 141 of 
such Act (29 U.S.C. 1551(f)) is hereby repealed.
    (f) Payments to Employers for On-The-Job Training.--Section 141(g) 
of such Act (29 U.S.C. 1551(g)) is amended--
            (1) by striking paragraphs (1) through (3); and
            (2) in paragraph (4)--
                    (A) by striking ``(4)'';
                    (B) by striking ``In accordance with regulations 
                issued by the Secretary, on-the-job training 
                contracts'' and inserting ``On-the-job training 
                contracts''; and
                    (C) by striking ``with wages and employment 
                benefits'' and all that follows and inserting a period.
    (g) Duplicate Facilities or Services.--Section 141(h) of such Act 
(29 U.S.C. 1551(h)) is amended to read as follows:
    ``(h)(1) Upon the approval of the Governor, real property in which, 
as of July 1, 1998, equity has resulted from funds provided under title 
III of the Social Security Act, section 903(c) of such Act (commonly 
referred to as the `Reed Act'), or the Wagner-Peyser Act (29 U.S.C. 49 
et seq.) may be used for the purposes of a full service employment and 
training delivery center.
    ``(2) Unless otherwise provided in a plan approved pursuant to 
section 101, subsequent to the commencement of the use of the property 
described in paragraph (1) for the purposes of a full service 
employment and training delivery center, funds provided under the 
provisions of law described in paragraph (1) 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.''.
    (h) Responsibilities of Administrative Entities.--Section 141(i) of 
such Act (29 U.S.C. 1551(i)) is hereby repealed.
    (i) Prohibition on Certain Subsidized Employment.--Section 141(k) 
of such Act (29 U.S.C. 1551(k)) is hereby repealed.
    (j) Consultation Requirements.--Section 141(n) of such Act (29 
U.S.C. 1551(n)) is amended--
            (1) by striking ``private industry councils'' each place it 
        appears and inserting ``local workforce development boards'';
            (2) by striking ``councils'' and inserting ``boards'';
            (3) by striking ``service delivery area'' each place it 
        appears and inserting ``local workforce development area''; and
            (4) by striking ``this Act'' each place it appears and 
        inserting ``title II or title III''.
    (k) Prohibition on Use of Funds for Public Service Employment.--
Section 141(p) of such Act (29 U.S.C. 1551(p)) is amended--
            (1) by striking ``part B of this title or part A or C of 
        title II'' and inserting ``this Act''; and
            (2) by inserting at the end before the period the 
        following: ``except as specifically authorized under this 
        Act''.
    (l) Prohibition on Use of Funds for Certain Economic Activities.--
Section 141(q) of such Act (29 U.S.C. 1551(p)) is amended in the first 
sentence by inserting at the end before the period the following: 
``which are not directly related to training or related services for 
eligible individuals under this Act''.
    (m) Priority for Excess Property of the Department of Defense.--
Section 141(s) of such Act (29 U.S.C. 1551(s)) is hereby repealed.
    (n) Prohibition on Entitlement to Service.--Section 141 of such Act 
(29 U.S.C. 1551) is amended by adding at the end the following:
    ``(s) Prohibition on Entitlement to Service.--Nothing in this Act 
shall be construed to provide an individual with an entitlement to a 
service under this Act.
    ``(t) Fee for Service Authority.--Services, facilities, and 
equipment funded under titles II and III may be used, as appropriate, 
on a fee for service basis, by employers in a local workforce 
development area in order to provide employment and training services 
to incumbent workers--
            ``(1) when such services, facilities, or equipment are not 
        in use for the provision of services for eligible program 
        participants under title II or title III, respectively;
            ``(2) if such use would not have an adverse affect on the 
        provision of services to eligible program participants under 
        title II or title III, respectively; and
            ``(3) if the income derived from such fees is used to carry 
        out the programs authorized under title II or title III, 
        respectively.''.

SEC. 122. BENEFITS.

    Section 142(a) of the Job Training Partnership Act (29 U.S.C. 
1552(a)) is amended--
            (1) by striking all that precedes paragraph (4) and 
        inserting the following:
    ``(a) Wages.--
            ``(1) In general.--Individuals in on-the-job training or 
        individuals employed in activities under this Act 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 training, 
        experience and skills, and 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.''; and
            (2) by redesignating paragraph (4) as paragraph (2).

SEC. 123. LABOR STANDARDS.

    Section 143 of the Job Training Partnership Act (29 U.S.C. 1553) is 
amended to read as follows:

``SEC. 143. LABOR STANDARDS.

    ``(a) Limitations on Activities That Impact Wages of Employees.--No 
funds provided under this title shall be used to pay the wages of 
incumbent employees during their participation in economic development 
activities provided through the statewide system.
    ``(b) Displacement.--
            ``(1) Prohibition.--A participant in an activity authorized 
        under title II, III, or IV of this Act (referred to in this 
        section 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).
            ``(2) 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.
    ``(c) Other Prohibitions.--A participant in a specified activity 
shall not be employed in a job--
            ``(1) when any other individual is on layoff from the same 
        or any substantially equivalent job;
            ``(2) 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
            ``(3) which is created in a promotional line that will 
        infringe in any way upon the promotional opportunities of 
        currently employed individuals.
    ``(d) 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.
    ``(e) Employment Conditions.--Individuals in on-the-job training or 
individuals employed in activities under this Act, 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.
    ``(f) Opportunity To Submit Comments.--Interested parties shall be 
provided an opportunity to submit comments with respect to training 
programs proposed to be funded under this Act.''.

SEC. 124. GRIEVANCE PROCEDURE.

    Section 144 of the Job Training Partnership Act (29 U.S.C. 1554) is 
amended to read as follows:

``SEC. 144. GRIEVANCE PROCEDURE.

    ``(a) In General.--Each State receiving an allotment under this Act 
shall establish and maintain a procedure for grievances or complaints 
alleging violations of the requirements of this Act from participants 
and other interested or affected parties. Such procedure shall include 
an opportunity for a hearing and be completed within 60 days of filing 
the complaint.
    ``(b) Investigation.--
            ``(1) In general.--The Secretary shall investigate an 
        allegation of a violation described in subsection (a) if--
                    ``(A) 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 to the Secretary; or
                    ``(B) a decision relating to such violation has 
                been reached within such 60 days and the party to which 
                such decision is adverse appeals such decision to the 
                Secretary.
            ``(2) Additional requirement.--The Secretary shall make a 
        final determination relating to an appeal made under paragraph 
        (1) no later than 120 days after receiving such appeal.
    ``(c) Remedies.--Remedies shall be limited--
            ``(1) to suspension or termination of payments under this 
        Act;
            ``(2) to prohibition of placement of a participant with an 
        employer that has violated any requirements under this Act;
            ``(3) 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
            ``(4) where appropriate, to other equitable relief.''.

SEC. 125. IDENTIFICATION OF ADDITIONAL IMPOSED REQUIREMENTS.

    Section 124 of the Job Training Partnership Act (29 U.S.C. 1534) is 
amended--
            (1) by redesignating such section as section 146 of such 
        Act; and
            (2) by inserting such section after section 145 of such 
        Act.

SEC. 126. AUTHORITY OF STATE LEGISLATURE.

    Section 126 of the Job Training Partnership Act (29 U.S.C. 1536) is 
amended--
            (1) by adding at the end ``Any funds received by a State 
        under title II or III of this Act shall be subject to 
        appropriation by the State legislature, consistent with the 
        terms and conditions required under this Act.'';
            (2) by redesignating such section as section 147 of such 
        Act; and
            (3) by inserting such section after section 146 of such 
        Act, as amended by this Act.

SEC. 127. INTERSTATE AGREEMENTS.

    Section 127 of the Job Training Partnership Act (29 U.S.C. 1537) is 
amended--
            (1) by redesignating such section as section 148 of such 
        Act; and
            (2) by inserting such section after section 147 of such 
        Act, as amended by this Act.

            CHAPTER 2--PERFORMANCE ACCOUNTABILITY PROVISIONS

SEC. 131. PERFORMANCE ACCOUNTABILITY PROVISIONS.

    The Job Training Partnership Act (29 U.S.C. 1501 et seq.) is 
amended by inserting after part C of title I of such Act the following:

``SEC. 151. PERFORMANCE ACCOUNTABILITY SYSTEM.

    ``In order to promote high levels of performance and to ensure an 
appropriate return on the Nation's investment in employment, training, 
and literacy programs, each State receiving funds under this Act or the 
Adult Education and Family Literacy Act shall implement a statewide 
performance accountability system that meets the requirements of this 
subpart.

``SEC. 152. INDICATORS OF PERFORMANCE.

    ``(a) State Benchmarks.--
            ``(1) In general.--Each State receiving funds under this 
        Act shall identify indicators and related levels of performance 
        (hereinafter referred to as `State benchmarks'), for each of 
        the programs established under titles II, III, and V of this 
        Act, to be used to measure the State's progress in meeting the 
        State long-term goals described in the State plan under section 
        101. Such State benchmarks shall, at a minimum--
                    ``(A) include the core indicators of performance 
                described in section 154;
                    ``(B) be expressed in an objective, quantifiable, 
                and measurable form; and
                    ``(C) show the progress of the State to 
                continuously improve in performance over the 3-year 
                period covered by the State plan.
            ``(2) Customer satisfaction.--Such State benchmarks may 
        also include post-program surveys and other measures of 
        customer satisfaction of both employers and program 
        participants.
    ``(b) Technical Definitions of Core Indicators.--In order to ensure 
nationwide comparability of performance data, the Secretary of Labor 
and the Secretary of Education, in collaboration with the States, 
localities, representatives of business and industry, employees, 
employment and training service providers, State directors of adult 
education, providers of adult education and literacy services, 
individuals with expertise in serving the employment and training needs 
of disadvantaged youth, participants, parents and other interested 
parties with expertise in the provision of employment, training, 
literacy, and related services, shall promulgate definitions of each of 
the core indicators of performance described in section 154, with the 
exception of the indicators described under subsections (a)(6), (b)(1), 
(b)(5), (c)(1), and (c)(5) of such section, to be used under this Act 
in measuring performance.

``SEC. 153. STATE ADJUSTED BENCHMARKS.

    ``(a) Agreement.--
            ``(1) In general.--In order to ensure an adequate return on 
        the investment of Federal funds in employment, training, and 
        literacy programs authorized under this Act and the Adult 
        Education and Family Literacy Act, the appropriate Secretary 
        and each State shall reach agreement on the levels of 
        performance expected to be achieved by such State based upon 
        the State's benchmarks established pursuant to section 
        152(a)(1) (hereinafter referred to as the `State adjusted 
        benchmarks'), for the core indicators of performance described 
        in section 154 (except for the indicators described under 
        subsections (a)(6), (b)(1), (b)(5), (c)(1), and (c)(5) of such 
        section). Such agreement shall take into account--
                    ``(A) whether the levels will enable each State to 
                attain the State goals;
                    ``(B) how the levels compare with the levels 
                established by other States, taking into consideration 
                the specific circumstances, including economic 
                circumstances, of each State;
                    ``(C) how the levels compare with the model levels 
                of performance identified pursuant to subsection (c); 
                and
                    ``(D) the extent to which such levels demonstrate 
                continuous improvement in performance by such State and 
                ensure an adequate return on the investment of Federal 
                funds.
            ``(2) Authority of governor.--The Governor of a State is 
        authorized to enter into the agreement described in paragraph 
        (1) for programs authorized under titles II and III.
            ``(3) Authority of eligible state agency.--The eligible 
        State agency for adult education and literacy programs is 
        authorized to enter into the agreement described in paragraph 
        (1) for programs authorized under the Adult Education and 
        Family Literacy Act.
    ``(b) Local Benchmarks for Employment and Training Programs.--Based 
on the expected levels of performance established pursuant to 
subsection (a), each State shall negotiate with the local workforce 
development board and the chief local elected official in each local 
workforce development area (consistent with section 122(d)(6)(A)) the 
levels of performance for each indicator that are expected for such 
local workforce development areas. Such levels of performance shall be 
known as `local benchmarks'.
    ``(c) Model Levels of Performance.--In order to encourage high 
levels of performance and advance the Nation's competitiveness, the 
Secretary of Labor and the Secretary of Education, in collaboration 
with the States, localities, and with representatives of business and 
industry, employees, employment and training service providers, State 
directors of adult education, providers of adult education and literacy 
services, individuals with expertise in serving the employment and 
training needs of disadvantaged youth, participants, parents and other 
interested parties with expertise in the provision of employment, 
training, literacy, and related services, shall identify challenging 
model levels of performance (hereinafter referred to as `model levels 
of performance') with respect to the core indicators of performance 
described in section 154, with the exception of the indicators 
described under subsections (a)(6), (b)(1), (b)(5), (c)(1), and (c)(5).

``SEC. 154. CORE INDICATORS OF PERFORMANCE.

    ``(a) Core Indicators for Adult Employment and Training Programs.--
The common core indicators of performance for programs authorized under 
title III of this Act shall include measures of--
            ``(1) placement in unsubsidized employment;
            ``(2) retention in unsubsidized employment for not less 
        than 6 months and for not less than 12 months, respectively;
            ``(3) increases in earnings or in earnings in combination 
        with employer-assisted benefits;
            ``(4) reductions in welfare dependency;
            ``(5) attainment of industry-recognized occupational 
        skills;
            ``(6) attainment of a high school diploma or a general 
        equivalency diploma; and
            ``(7) such other measures of performance as the State may 
        wish to collect.
    ``(b) Core Indicators for Adult Education and Literacy Programs.--
The core indicators of performance for programs conducted under the 
Adult Education and Family Literacy Act shall include measures of--
            ``(1) achievement in the areas of reading, writing, English 
        language acquisition, problem solving, numeracy, and other 
        literacy skills;
            ``(2) receipt of a high school diploma or a general 
        equivalency diploma;
            ``(3) entry into a postsecondary school, job retraining 
        program, employment, or career advancement;
            ``(4) attainment of the literacy skills and knowledge 
        individuals need to be productive and responsible citizens and 
        to become more actively involved in the education of their 
        children; and
            ``(5) such other measures of performance as the State may 
        wish to collect.
    ``(c) Core Indicators for Disadvantaged Youth.--The core indicators 
of performance for programs conducted under title II shall include 
measures of--
            ``(1) attainment of challenging State academic 
        proficiencies;
            ``(2) attainment of secondary school diplomas or general 
        equivalency diplomas;
            ``(3) attainment of industry-recognized work readiness and 
        occupational skills;
            ``(4) placement in, retention in, and completion of 
        postsecondary education or advanced training, or placement and 
        retention in military service, employment, or qualified 
        apprenticeships; and
            ``(5) such other measures of performance as the State may 
        wish to collect.
    ``(d) Population Indicators.--
            ``(1) Adult employment and training programs.--The core 
        indicators of performance for programs conducted under title 
        III, as provided under subsection (a), shall include measures 
        of the success of individuals with multiple barriers to 
        employment, including economically disadvantaged individuals 
        (including welfare recipients), displaced homemakers, older 
        workers, and other individuals as determined by the State.
            ``(2) Adult education and literacy programs.--The core 
        indicators of performance for programs conducted under the 
        Adult Education and Family Literacy Act, as provided under 
        subsections (a) and (b), shall include measures of the success 
        of economically disadvantaged individuals, individuals with 
        limited literacy (as determined by the eligible agency), and 
        other individuals as determined by the eligible agency.
            ``(3) Disadvantaged youth programs.--The core indicators of 
        performance for programs conducted under title II, as provided 
        under subsection (c), shall include measures of the success of 
        hard to serve youth, including individuals who are school 
        dropouts or whose educational attainment is one or more grade 
        levels below the grade level appropriate to the age of the 
        individual, and other individuals as determined by the State.

``SEC. 155. REPORT ON PERFORMANCE.

    ``(a) Report.--
            ``(1) In general.--Each State that receives funds under 
        titles II and III of this Act and the Adult Education and 
        Family Literacy Act shall annually prepare and submit to the 
        Secretary of Labor and the Secretary of Education (for 
        consideration by the appropriate Secretary) a report on the 
        levels of performance achieved by the State with respect to the 
        State adjusted benchmarks identified pursuant to section 
        153(a), and by each local workforce development area with 
        respect to the local benchmarks identified pursuant to section 
        153(b) for programs authorized under title II and title III for 
        each program year.
            ``(2) Additional information.--In preparing such report, 
        the State may include--
                    ``(A) information on such additional benchmarks as 
                the State may establish to meet the State goals; and
                    ``(B) comments assessing the process used for 
                reaching agreement on the State adjusted benchmarks 
                pursuant to section 153(a) and may also include 
                comments from local workforce development areas 
                assessing the process for negotiating local benchmarks 
                pursuant to section 153(b).
    ``(b) Information Dissemination.--The Secretary of Labor and the 
Secretary of Education--
            ``(1) shall make the information contained in such reports 
        available to the general public through publication and other 
        appropriate methods;
            ``(2) shall disseminate State-by-State comparisons of the 
        information; and
            ``(3) shall provide the appropriate congressional 
        committees with copies of such reports.

``SEC. 156. INCENTIVE GRANTS AND SANCTIONS.

    ``(a) Incentive Grants.--
            ``(1) Award of grants.--From amounts made available under 
        section 452 and section 502 for any fiscal year, the 
        appropriate Secretary may award incentive grants to States 
        that--
                    ``(A) exceed, during the most recent 12-month 
                period for which data are available, the adjusted State 
                benchmarks described under section 153(a);
                    ``(B) demonstrate continuing progress toward 
                exceeding, during the 3-year period covered by the 
                State plan submitted under section 101, the adjusted 
                State benchmarks described under section 153(a); or
                    ``(C) demonstrate significant progress in the 
                coordination and integration of employment, training, 
                literacy, and other human resource and workforce 
                preparation programs within the State, and demonstrate 
                high performance in such programs.
            ``(2) Technical assistance.--The Secretary, upon request, 
        shall provide technical assistance to any State that does not 
        qualify for receipt of an incentive grant under paragraph (1).
            ``(3) Use of funds.--A State that receives an incentive 
        grant under paragraph (1) may use funds made available under 
        such grant only to carry out employment, training, or literacy 
        activities.
    ``(b) Sanctions.--
            ``(1) States.--
                    ``(A) Technical assistance.--If a State fails to 
                meet expected levels of performance for a program for 
                any program year as established pursuant to section 
                153(a), the Secretary of Labor for programs established 
                under title II and title III, or the Secretary of 
                Education for programs established under the Adult 
                Education and Family Literacy Act, shall, upon request, 
                provide technical assistance, including assistance in 
                the development of a performance improvement plan.
                    ``(B) Reduction in amount of grant.--If such 
                failure continues for a second consecutive year, the 
                appropriate Secretary may reduce by not more than 5 
                percent, the amount of the grant that would (in the 
                absence of this paragraph) be payable to the State 
                under such program for the immediately succeeding 
                program year. Such penalty shall be based on the degree 
                of failure to meet adjusted levels of performance.
            ``(2) Local areas.--
                    ``(A) Technical assistance.--If a local workforce 
                development area, or other applicable local 
                administrative entity, fails to meet expected levels of 
                performance for a program for any program year under 
                section 153(b), the Governor, or upon request by the 
                Governor, the Secretary, shall provide technical 
                assistance, which may include the development of a 
                performance improvement plan, or the development of a 
                modified local plan.
                    ``(B) Corrective actions.--
                            ``(i) In general.--If such failure 
                        continues for a second consecutive year, the 
                        Governor shall take corrective actions, which 
                        may include development of a reorganization 
                        plan through which the Governor may require the 
                        appointment of a new local board (consistent 
                        with the criteria established under section 
                        122(b)), prohibit the use of designated service 
                        providers, require the redesignation of a local 
                        administrative entity (in such case chosen 
                        jointly by the Governor and the chief elected 
                        official in the local workforce development 
                        area), or such other actions as the Governor 
                        determines are appropriate, consistent with 
                        State law, and the requirements of this 
                        subparagraph.
                            ``(ii) Appeal by workforce development 
                        area.--
                                    ``(I) Appeal to governor.--A 
                                workforce development area that is 
                                subject to a reorganization plan under 
                                clause (i) may, not later than 30 days 
                                after receiving notice thereof, appeal 
                                to the Governor to rescind or revise 
                                such plan. In such case, the Governor 
                                shall make a final decision not later 
                                then 30 days after the receipt of the 
                                appeal.
                                    ``(II) Subsequent action.--A local 
                                workforce development area may, not 
                                later than 30 days after receiving a 
                                decision from the Governor pursuant to 
                                subclause (I), appeal such decision to 
                                the Secretary. In such case the 
                                Secretary shall make a final decision 
                                not later than 30 days after the 
                                receipt of the appeal.
                            ``(iii) Effective date.-- The actions take 
                        by the Governor under subclause (I) shall 
                        become effective at the time the Governor 
                        issues a decision pursuant to such subclause. 
                        Such action shall remain effective unless the 
                        Secretary rescinds or revises such plan 
                        pursuant to subclause (II).''.

                      CHAPTER 3--OTHER PROVISIONS

SEC. 141. PROMPT ALLOCATION OF FUNDS.

    Section 162 of the Job Training Partnership Act (29 U.S.C. 1572) is 
amended--
            (1) in the second sentence of subsection (a), by striking 
        ``1980 Census or later data'' and inserting ``the most recent 
        satisfactory data from the Bureau of the Census''; and
            (2) by striking subsection (f).

SEC. 142. FISCAL CONTROLS; SANCTIONS.

    (a) Establishment of Fiscal Controls by States.--Section 164(a) of 
the Job Training Partnership Act (29 U.S.C. 1574(a)) is amended--
            (1) in paragraph (2)--
                    (A) in the first sentence of the matter preceding 
                subparagraph (A), before the period at the end insert 
                the following: ``, consistent with appropriate 
                circulars of the Office of Management and Budget''; and
                    (B) in subparagraph (C), by striking ``except as 
                specifically provided by this Act'' and inserting ``, 
                and procurement transactions between workforce 
                development boards and such governments shall be 
                conducted only on a cost-reimbursable basis'';
            (2) in paragraph (3)--
                    (A) by inserting before the second comma in the 
                first sentence ``consistent with appropriate circulars 
                of the Office of Management and Budget''; and
                    (B) by striking the second sentence and all that 
                follows;
            (3) in paragraph (4), by striking ``service delivery area 
        and substate area'' and inserting ``workforce development 
        area'';
            (4) in paragraph (5), by striking ``service delivery area 
        or substate area'' and inserting ``workforce development 
        area'';
            (5) in paragraph (6)(B), by striking ``substate areas and 
        service delivery areas'' and inserting ``workforce development 
        areas''; and
            (6) by striking paragraph (8).
    (b) Sanctions.--Section 164(b) of such Act (29 U.S.C. 1574(b)) is 
amended--
            (1) in paragraph (1)--
                    (A) in the matter preceding subparagraph (A)--
                            (i) by striking ``provision of'' and 
                        inserting ``requirement under''; and
                            (ii) by striking ``or the regulations under 
                        this Act'';
                    (B) in subparagraph (A), by inserting ``local'' 
                before ``plan''; and
                    (C) in subparagraph (B)--
                            (i) in clause (i), by striking ``private 
                        industry council'' and inserting ``workforce 
                        development board'';
                            (ii) in clause (iii), by striking ``service 
                        delivery'' and inserting ``workforce 
                        development''; and
                            (iii) in clause (iv), by striking ``service 
                        delivery'' each place it appears and inserting 
                        ``workforce development''; and
            (2) in paragraph (2)--
                    (A) in subparagraph (A)--
                            (i) in the matter preceding clause (i)--
                                    (I) by striking ``paragraph 
                                (1)(A)'' and inserting ``subparagraphs 
                                (A) and (B) of paragraph (1)''; and
                                    (II) by striking ``under the same 
                                terms and conditions as the disapproval 
                                of the plan''; and
                            (ii) in clause (i), by inserting ``the'' 
                        before ``appeal''; and
                    (B) in subparagraph (B)--
                            (i) by striking ``The actions'' and all 
                        that follows through ``, who'' and inserting 
                        ``The Secretary''; and
                            (ii) by striking ``60'' and inserting 
                        ``45''.
    (c) Evaluation by Comptroller General of the United States.--
Subsection (c) of section 164 of such Act (29 U.S.C. 1574(c)) is hereby 
repealed.
    (d) Repayment of Misexpenditures to the United States.--Subsection 
(d) of section 164 of such Act (29 U.S.C. 1574(d)) is amended to read 
as follows:
    ``(d) Repayment of Certain Amounts to the United States.--
            ``(1) In general.--Every recipient of funds under titles II 
        and III of this Act shall repay to the United States amounts 
        found not to have been expended in accordance with this Act.
            ``(2) Offset of repayment.--If the Secretary determines 
        that a State has expended funds made available under this Act 
        in a manner contrary to the requirements of this Act, 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 recipient or a subgrantee of such recipient in a 
        local workforce development area of the State has expended 
        funds contrary to the requirements of this Act, 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 workforce 
        development area from funds reserved for the administrative 
        costs of such local programs under title II or title III, as 
        appropriate.
            ``(5) Limitations.--A deduction made by a State as 
        described under paragraph (4) shall not be made until such time 
        as the Governor has taken appropriate corrective action to 
        ensure full compliance within such local workforce development 
        area with regard to appropriate expenditures of funds under 
        this Act.''.
    (e) Repayment of Certain Amounts to the United States.--Subsection 
(e) of section 164 of such Act (29 U.S.C. 1574(e)) is amended--
            (1) in paragraph (1)--
                    (A) in the first sentence--
                            (i) by inserting ``by the Secretary'' after 
                        ``upon a determination'';
                            (ii) by striking ``or failure'' and 
                        inserting ``failure''; and
                            (iii) by inserting before the period at the 
                        end the following: ``, or a pattern of failure 
                        with respect to paragraphs (2) and (3) of 
                        subsection (d)''; and
                    (B) in the second sentence--
                            (i) by inserting ``under this subsection or 
                        subsection (d)'' after ``shall be made''; and
                            (ii) by inserting before the period at the 
                        end the following: ``has been given to the 
                        recipient''; and
            (2) in paragraph (3), by striking the second sentence.
    (f) Remedies Construed as Exclusive Remedies.--Subsection (h) of 
section 164 of such Act (29 U.S.C. 1574(h)) is hereby repealed.

SEC. 143. REPORTS; RECORDKEEPING; INVESTIGATIONS.

    Section 165 of the Job Training Partnership Act (29 U.S.C. 1575) is 
amended--
            (1) in subsection (d)(1)(C)--
                    (A) by striking the comma after ``occupations''; 
                and
                    (B) by striking the semicolon at the end and 
                inserting ``and placement for participants in 
                nontraditional employment;''; and
            (2) by striking subsection (h).

SEC. 144. ADMINISTRATIVE ADJUDICATION.

    Section 166(a) of the Job Training Partnership Act (29 U.S.C. 
1576(a)) is amended by striking the last sentence.

SEC. 145. NONDISCRIMINATION.

    Section 167 of the Job Training Partnership Act (29 U.S.C. 1577) is 
amended to read as follows:

``SEC. 167. NONDISCRIMINATION.

    ``(a) In General.--
            ``(1) Federal financial assistance.--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.), or 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.), programs and activities funded or 
        otherwise financially assisted in whole or in part under this 
        Act are considered to be programs and activities receiving 
        Federal financial assistance.
            ``(2) Nondiscrimination.--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, political affiliation or belief, or status as a 
        qualified individual with a disability or as a participant of 
        such program or activity.
    ``(b) Secretarial Authority.--Whenever the Secretary finds that a 
State or other recipient has failed to comply with a provision of this 
section, or with an applicable regulation prescribed to carry out this 
section, the Secretary shall notify such State or recipient and seek 
compliance through the processes of conciliation, mediation or 
persuasion, as appropriate. If within a reasonable time the State or 
recipient fails or refuses to comply, the Secretary may--
            ``(1) refer the matter to the Attorney General with a 
        recommendation for appropriate action; or
            ``(2) take such other action as may be provided by law.
    ``(c) Authority of Attorney General.--When a matter is referred to 
the Attorney General pursuant to subsection (b)(1), 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.--For the purposes of this section, Job Corps 
members shall be considered as the ultimate beneficiaries of Federal 
financial assistance.
    ``(e) Regulations.--The Secretary shall issue regulations necessary 
to implement this section not later than one year after the date of the 
enactment of the Employment, Training, and Literacy Enhancement Act of 
1997. Such regulations shall adopt standards for determining 
discrimination and procedures for enforcement that are consistent with 
the Acts referred to in a subsection (a)(1), as well as procedures to 
ensure that complaints filed under this section and such Acts are 
processed in a manner that avoids duplication of effort.''.

SEC. 146. JUDICIAL REVIEW.

    Section 168 of the Job Training Partnership Act (29 U.S.C. 1578) is 
hereby repealed.

SEC. 147. ADMINISTRATIVE PROVISIONS.

    Section 169 of the Job Training Partnership Act (29 U.S.C. 1579) is 
amended--
            (1) in the first sentence of subsection (a), by striking 
        ``such rules and regulations'' and all that follows and 
        inserting ``rules and regulations only to the extent necessary 
        to administer and ensure compliance with the specific 
        requirements of this Act.''; and
            (2) by striking subsection (e) and inserting the following:
    ``(e) Waivers.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, the Secretary of Labor may waive--
                    ``(A) any of the statutory or regulatory 
                requirements of this title and titles II and III of 
                this Act (except for requirements relating to wage and 
                labor standards, worker rights, participation and 
                protection, grievance procedures and judicial review, 
                nondiscrimination, allocation of funds to local areas, 
                eligibility, review and approval of plans, the 
                establishment and functions of workforce development 
                areas and workforce development boards, and the basic 
                purposes of the Act); and
                    ``(B) any of the statutory or regulatory 
                requirements of sections 8 through 10 of the Wagner-
                Peyser Act (29 U.S.C. 49g through 49i) (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 job seekers), pursuant to a request 
                submitted by a State which meets the requirements of 
                paragraph (2).
            ``(2) Requests.--A State requesting a waiver under 
        paragraph (1) shall submit a plan to the Secretary to improve 
        the workforce development system which--
                    ``(A) identifies the statutory or regulatory 
                requirements that are requested to be waived and the 
                goals which the State or local workforce development 
                areas intend to achieve;
                    ``(B) describes the actions that the State or local 
                workforce development areas have undertaken to remove 
                State or local statutory or regulatory barriers;
                    ``(C) describes the goals of the waiver and the 
                expected programmatic outcomes if the request is 
                granted;
                    ``(D) describes the individuals impacted by the 
                waiver; and
                    ``(E) describes the process used to monitor the 
                progress in implementing a waiver, and for which notice 
                and an opportunity to comment on such request has been 
                provided to the organizations identified in section 122 
                (e)(2) of this Act, if and only to the extent that the 
                Secretary determines that such requirements impede the 
                ability of the State to implement such plan to improve 
                the workforce development system and the State has 
                executed a memorandum of understanding with the 
                Secretary requiring such State to meet agreed-upon 
                outcomes and implement other appropriate measures to 
                ensure accountability.''.

SEC. 148. PRESIDENTIAL AWARDS FOR OUTSTANDING PRIVATE SECTOR 
              INVOLVEMENT IN JOB TRAINING PROGRAMS.

    Section 172 of the Job Training Partnership Act (29 U.S.C. 1582) is 
hereby repealed.

SEC. 149. CONSTRUCTION.

    Section 173 of the Job Training Partnership Act (29 U.S.C. 1583) is 
hereby repealed.

SEC. 150. LIMITATION ON CERTAIN COSTS.

    Part D of title I of the Job Training Partnership Act (29 U.S.C. 
1571 et seq.), as amended by this Act, is further amended by adding at 
the end the following:

``SEC. 172. LIMITATION ON CERTAIN COSTS.

    ``(a) Administrative Costs.--
            ``(1) In general.--The Secretary, after consultation with 
        the Inspector General of the Department of Labor and the 
        Comptroller General of the United States, shall develop 
        regulations that define `administrative costs' for purposes of 
        programs under titles II and III. Such definition shall reflect 
        generally accepted accounting principles.
            ``(2) Additional requirement.--Notwithstanding any other 
        provision of law, regulations issued by the Secretary under 
        paragraph (1) shall provide procedures under which the Governor 
        may approve a plan for the pooling of administrative funds, 
        which are available in accordance with the limitation in 
        subsection (b)(1), if the Governor determines that such plan 
        would not jeopardize the administration of the activities from 
        which such funds are to be transferred.
    ``(b) Limitation.--
            ``(1) In general.--Of the amounts allocated to local 
        workforce development areas for a program year under titles II 
        and III, not more that 10 percent of such amounts may be 
        expended for administrative costs.
            ``(2) Definition.--For purposes of paragraph (1), the term 
        `allocated' means allocated for a program year, as adjusted for 
        reallocations and reallotments and for transfers of funds in 
        accordance with this Act.

``SEC. 173. BUY-AMERICAN REQUIREMENTS.

    ``(a) Compliance With Buy American Act.--None of the funds made 
available in this Act may be expended by an entity unless the entity 
agrees that in expending the funds the entity will comply with the Buy 
American Act (41 U.S.C. 10a-10c).
    ``(b) Sense of Congress; Requirement Regarding Notice.--
            ``(1) Purchase of american-made equipment and products.--In 
        the case of any equipment or product that may be authorized to 
        be purchased with financial assistance provided using funds 
        made available in this Act, it is the sense of the Congress 
        that entities receiving the assistance should, in expending the 
        assistance, purchase only American-made equipment and products.
            ``(2) Notice to recipients of assistance.--In providing 
        financial assistance using funds made available in this Act, 
        the head of each Federal agency shall provide to each recipient 
        of the assistance a notice describing the statement made in 
        paragraph (1) by the Congress.
    ``(c) Prohibition of Contracts With Persons Falsely Labeling 
Products as Made in America.--If it has been finally determined by a 
court or Federal agency that any person intentionally affixed a label 
bearing a `Made in America' inscription, or any inscription with the 
same meaning, to any product sold in or shipped to the United States 
that is not made in the United States, the person shall be ineligible 
to receive any contract or subcontract made with funds made available 
in this Act, pursuant to the debarment, suspension, and ineligibility 
procedures described in sections 9.400 through 9.409 of title 48, Code 
of Federal Regulations.''.

                  Subtitle D--Miscellaneous Provisions

SEC. 161. CRIMINAL PROVISIONS.

    (a) In General.--Section 182 of the Job Training Partnership Act is 
hereby repealed.
    (b) Savings Provision.--The repeal of section 182 of such Act made 
by subsection (a) does not affect in any way the amendment made by such 
section 182.

SEC. 162. REFERENCE.

    Section 183 of the Job Training Partnership Act (29 U.S.C. 1592) is 
amended to read as follows:

``SEC. 183. REFERENCE.

    ``Effective on the date of the enactment of the Employment, 
Training, and Literacy Enhancement Act of 1997, all references in any 
other provision of law (other than section 665 of title 18, United 
States Code) to the Comprehensive Employment and Training Act, or to 
the Job Training Partnership Act, as the case may be, shall be deemed 
to refer to Employment, Training, and Literacy Enhancement Act.''.

SEC. 163. REPEALERS.

    (a) In General.--Section 184 of the Job Training Partnership Act 
(29 U.S.C. 801 et seq.) is hereby repealed.
    (b) Savings Provision.--The repeal of section 184 of such Act made 
by subsection (a) does not affect in any way the repealers made by such 
section 184.

     TITLE II--AMENDMENTS TO EMPLOYMENT AND TRAINING PROGRAMS FOR 
                          DISADVANTAGED YOUTH

SEC. 201. ADULT TRAINING PROGRAM.

    Title II of the Job Training Partnership Act (29 U.S.C. 1601 et 
seq.) is amended by striking part A of such title.

SEC. 202. SUMMER YOUTH EMPLOYMENT AND TRAINING PROGRAM.

    Title II of the Job Training Partnership Act (29 U.S.C. 1601 et 
seq.) is amended by striking part B of such title.

SEC. 203. DISADVANTAGED YOUTH EMPLOYMENT AND TRAINING OPPORTUNITIES 
              GRANTS.

    (a) Authorization.--Title II of the Job Training Partnership Act 
(29 U.S.C. 1601 et seq.), as amended by this Act, is further amended--
            (1) in the heading to read as follows:

 ``TITLE II--DISADVANTAGED YOUTH EMPLOYMENT AND TRAINING OPPORTUNITIES 
                               GRANTS'';

            (2) by striking the heading for part C of such title;
            (3) by redesignating section 261 as section 201; and
            (4) by inserting after section 201 (as redesignated) the 
        following:

``SEC. 202. AUTHORIZATION.

    ``(a) In General.--In the case of each State that in accordance 
with the requirements of sections 101 and 102 submits to the Secretary 
of Labor (hereinafter in this title referred to as the `Secretary') a 
State plan, the Secretary shall provide a grant to the State for the 
purpose of providing employment, job training, educational, and related 
assistance for disadvantaged youth in the State.
    ``(b) Amount.--The grant shall consist of the allotment determined 
for the State under section 203.''.
    (b) Allotment and Allocation Among States.--Title II of the Job 
Training Partnership Act (29 U.S.C. 1601 et seq.), as amended by this 
Act, is further amended--
            (1) by redesignating section 262 as section 203; and
            (2) in section 203 (as redesignated)--
                    (A) in the heading to read as follows:

``SEC. 203. ALLOTMENT AND ALLOCATION AMONG STATES.'';

                    (B) by striking subsections (b) and (c);
                    (C) by redesignating subsections (a) and (d) as 
                subsections (b) and (c), respectively;
                    (D) by inserting before subsection (b) (as 
                redesignated) the following:
    ``(a) In General.--Of the amount appropriated pursuant to section 
3(a)(1) to carry out this title for a fiscal year, the Secretary shall 
allot such amount in accordance with subsection (b).'';
                    (E) in subsection (b) (as redesignated)--
                            (i) in the heading to read as follows:
    ``(b) Allotment Among States.--'';
                            (ii) in paragraph (1) to read as follows:
            ``(1) Outlying areas.--
                    ``(A) In general.--From the amount appropriated for 
                any fiscal year to carry out this title, the Secretary 
                shall reserve not more than one quarter of one percent 
                to provide assistance to--
                            ``(i) the outlying areas; and
                            ``(ii) for each of the fiscal years 1998 
                        through 2001, to carry out the competition 
                        described in subparagraph (B), except that the 
                        amount reserved to carry out such subparagraph 
                        for any such fiscal year shall not exceed the 
                        amount reserved for the freely associated 
                        states for fiscal year 1997, from amounts 
                        reserved under section 262(a)(1) of the Job 
                        Training Partnership Act (29 U.S.C. 1642(a)(1)) 
                        (as such section was in effect on the day 
                        before the date of the enactment of Employment, 
                        Training, and Literacy Enhancement Act of 
                        1997).
                    ``(B) Limitation for freely associated states.--
                            ``(i) Competitive grants.--The Secretary 
                        shall use funds described in subparagraph 
                        (A)(ii) to award grants to Guam, American 
                        Samoa, the Commonwealth of the Northern Mariana 
                        Islands, and the freely associated states to 
                        carry out the purposes of this title.
                            ``(ii) Award basis.--The Secretary shall 
                        award grants pursuant to clause (i) 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.
                            ``(iii) Assistance requirements.--Any 
                        freely associated state that desires to receive 
                        amounts under this title shall include in its 
                        application for assistance--
                                    ``(I) information demonstrating 
                                that it will meet all conditions that 
                                apply to States under this title;
                                    ``(II) an assurance that, 
                                notwithstanding any other provision of 
                                this title, it will use such amounts 
                                only for the direct provision of 
                                services; and
                                    ``(III) such other information and 
                                assurances as the Secretary may 
                                require.
                            ``(iv) Termination of eligibility.--
                        Notwithstanding any other provision of law, the 
                        freely associated states shall not receive any 
                        funds under this title for any program year 
                        that begins after September 30, 2001.
                            ``(v) Administrative costs.--The Secretary 
                        may provide not more than 5 percent of the 
                        amount made available for grants under this 
                        subparagraph to pay the administrative costs of 
                        the Pacific Region Educational Laboratory in 
                        Honolulu, Hawaii, regarding activities assisted 
                        under this section.
                    ``(C) 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 or to the freely associated 
                states under this section.
                    ``(D) Definition.--For purposes of this paragraph, 
                the term `freely associated states' means the Republic 
                of the Marshall Islands, the Federated States of 
                Micronesia, and the Republic of Palau.''; and
                            (iii) in paragraph (2)--
                                    (I) by inserting after the heading 
                                the following:
                    ``(A) In general.--'';
                                    (II) by striking ``82 percent of 
                                the remainder'' and all that follows 
                                and inserting the following: ``the 
                                remaining amount to the States pursuant 
                                to the formula contained in 
                                subparagraph (B).''; and
                                    (III) by adding at the end the 
                                following:
                    ``(B) Formula.--Subject to the provisions of 
                subparagraphs (C) and (D) of the amounts allotted to 
                States for this title for each fiscal year--
                            ``(i) 33\1/3\ percent shall be allotted on 
                        the basis of the relative number of unemployed 
                        individuals residing in areas of substantial 
                        unemployment within each State as compared to 
                        the total number of such unemployed individuals 
                        in all such 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 who reside in each State 
                        as 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 
                        economically disadvantaged youth within each 
                        State as compared to the total number of 
                        economically disadvantaged youth in all States.
                    ``(C) Minimum allotment.--
                            ``(i) Minimum percentage.--No State shall 
                        be allotted less than 90 percent of its 
                        allotment percentage for the fiscal year 
                        preceding the fiscal year for which the 
                        determination is made.
                            ``(ii) Maximum percentage.--No State shall 
                        be allotted more than 130 percent of its 
                        allotment percentage for the fiscal year 
                        preceding the fiscal year for which the 
                        determination is made.
                    ``(D) Small state minimum allotment.--No State 
                shall receive less than one-quarter of one percent of 
                the amount available under this title for a 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.''; and
                    (F) in subsection (c)(1)(A) (as redesignated)--
                            (i) in the heading, by striking 
                        ``Economically disadvantaged'' and inserting 
                        ``Disadvantaged''; and
                            (ii) in the matter preceding clause (i), by 
                        striking ``economically''.
    (c) Allocation Within States.--Title II of the Job Training 
Partnership Act (29 U.S.C. 1601 et seq.), as amended by this Act, is 
further amended by inserting after section 203 the following:

``SEC. 204. ALLOCATION WITHIN STATES.

    ``(a) Reservation for State Activities.--
            ``(1) In general.--
                    ``(A) Reservation.--The Governor of the State shall 
                reserve not more than 25 percent of the amount allotted 
                to the State under section 203(b) for a fiscal year to 
                carry out the activities described in this subsection.
                    ``(B) Matching funds for out-of-school youth 
                programs.--Of the amount reserved under subparagraph 
                (A), the Governor shall reserve not less than 10 
                percent of the total amount alloted to the State under 
                section 203(b) for any fiscal year to award grants in 
                accordance with this title to programs for 
                disadvantaged youth that--
                            ``(i) serve only out-of-school youth; and
                            ``(ii) agree to provide matching funds from 
                        sources other than those received under this 
                        subparagraph for such services in an amount 
                        equal to the Federal funds received under this 
                        subparagraph.
            ``(2) Required activities.--Activities described in 
        paragraph (1)(A) shall include the provision of additional 
        assistance to areas that have high concentrations of 
        disadvantaged youth to carry out the activities described in 
        section 206.
            ``(3) Discretionary activities.--Activities described in 
        paragraph (1)(A) may include--
                    ``(A) subject to paragraph (4), administration by 
                the State of programs under this title;
                    ``(B) capacity building and technical assistance to 
                local workforce development areas and to providers of 
                disadvantaged youth services as authorized under this 
                title, including the development and training of staff, 
                members of local workforce development boards, and 
                employers and workplace mentors providing training 
                through programs authorized under this title;
                    ``(C) incentives for program coordination and 
                integration, performance awards, and research and 
                demonstrations;
                    ``(D) implementation of innovative disadvantaged 
                youth employment and training programs, pilot projects, 
                and demonstration projects which further the purposes 
                of this title; and
                    ``(E) support for a common management information 
                system across employment, training, literacy, and human 
                resource programs as identified in section 103.
            ``(4) Limitation.--Of the amount reserved by the Governor 
        under paragraph (1)(A), not more than 5 percent of the total 
        amount allotted to the State under section 203(b) may be used 
        for administration by the State of programs under this title.
    ``(b) Within State Allocation.--
            ``(1) In general.--The Governor of the State shall allocate 
        the remainder of the amount allotted to the State under section 
        203(b) to workforce development areas designated under section 
        121, in accordance with paragraphs (2) and (3), for the purpose 
        of providing services for disadvantaged youth in accordance 
        with section 206.
            ``(2) Allocation by formula.--
                    ``(A) In general.--Each State shall allocate not 
                less than 70 percent of the remainder of funds 
                described in paragraph (1) to workforce development 
                areas within the State pursuant to the formula 
                contained in subparagraph (B) for the provision of 
                services for disadvantaged youth in accordance with 
                section 206.
                    ``(B) Formula.--Of the amounts described in 
                subparagraph (A)--
                            ``(i) 33\1/3\ percent shall be allocated on 
                        the basis of the relative number of unemployed 
                        individuals residing in areas of substantial 
                        unemployment in each workforce development area 
                        as compared to the total number of such 
                        unemployed individuals in all such areas of 
                        substantial unemployment in the State;
                            ``(ii) 33\1/3\ percent shall be allocated 
                        on the basis of the relative excess number of 
                        unemployed individuals who reside in each 
                        workforce development area as compared to the 
                        total excess number of unemployed individuals 
                        in all workforce development areas in the 
                        State; and
                            ``(iii) 33\1/3\ percent shall be allocated 
                        on the basis of the relative number of 
                        economically disadvantaged youth in each 
                        workforce development area as compared to the 
                        total number of disadvantaged youth in all 
                        workforce development areas in the State.
            ``(3) Discretionary allocation.--The State, through the 
        collaborative process under section 102, is authorized to 
        allocate not more than 30 percent of the remainder of funds 
        described in paragraph (1) to workforce development areas for 
        the provision of services for disadvantaged youth in accordance 
        with section 206. Such funds shall be allocated to urban, 
        rural, and suburban areas throughout the State and shall be 
        allocated promptly in accordance with section 162(e).''.
    (d) Eligibility for Services.--Title II of the Job Training 
Partnership Act (29 U.S.C. 1601 et seq.), as amended by this Act, is 
further amended--
            (1) by redesignating section 263 as section 205; and
            (2) in section 205 (as redesignated)--
                    (A) in subsection (a)--
                            (i) in the heading to read as follows:
    ``(a) In General.--'';
                            (ii) in the matter preceding paragraph 
                        (1)--
                                    (I) by striking ``subsections (e) 
                                and (g)'' and inserting ``subsection 
                                (c)'';
                                    (II) by striking ``who is in 
                                school''; and
                                    (III) by striking ``part'' and 
                                inserting ``title''; and
                            (iii) in paragraph (1)(B) to read as 
                        follows:
            ``(B) if provided in the local plan developed pursuant to 
        section 122(d)(1), is age 14 through 24; and'';
                    (B) in subsection (b)--
                            (i) by amending the heading to read as 
                        follows:
    ``(b) Priority for Service.--'';
                            (ii) by redesignating paragraphs (1) 
                        through (7) as subparagraphs (B) through (H), 
                        respectively, and moving the margin for each 
                        such subparagraph two ems to the right;
                            (iii) by inserting before subparagraph (B) 
                        (as redesignated) the following:
                    ``(A) Individuals who are school dropouts.'';
                            (iv) in subparagraph (H) (as redesignated) 
                        to read as follows:
                    ``(H) Other disadvantaged youth who face serious 
                barriers to employment as identified by the local 
                workforce development area.''; and
                            (v) by amending the matter preceding 
                        subparagraph (A) (as added by clause (iii)) to 
                        read as follows:
            ``(1) Priority.--Of the disadvantaged youth described in 
        subsection (a), priority for service shall be given to school 
        dropouts and to other hard-to-serve youth.
            ``(2) Definition.--For the purposes of this title, the term 
        `hard-to-serve youth' includes--'';
                    (C) by striking subsections (c), (d), (f), (g), and 
                (h);
                    (D) by redesignating subsection (e) as subsection 
                (c); and
                    (E) in subsection (c) (as redesignated)--
                            (i) by striking ``subsection (a)(2) or 
                        (c)(2)'' and inserting ``subsection (a)''; and
                            (ii) by striking ``of individuals who 
                        face'' and all that follows and inserting 
                        ``described in subparagraphs (A) through (G) of 
                        subsection (b)(2).''.
    (e) Use of Funds.--Title II of the Job Training Partnership Act (29 
U.S.C. 1601 et seq.), as amended by this Act, is further amended--
            (1) by redesignating section 264 as section 206; and
            (2) in section 206 (as redesignated)--
                    (A) by striking subsection (a);
                    (B) by redesignating subsections (b), (c), and (d) 
                as subsections (a), (b), and (c), respectively;
                    (C) in subsection (a) (as redesignated)--
                            (i) in the heading to read as follows:
    ``(a) Program Design.--'';
                            (ii) in paragraph (1)--
                                    (I) in the heading to read as 
                                follows:
            ``(1) Essential elements.--'';
                                    (II) in the matter preceding 
                                subparagraph (A)--
                                            (aa) by striking ``part'' 
                                        and inserting ``title''; and
                                            (bb) by striking 
                                        ``include'';
                                    (III) in subparagraph (A)--
                                            (aa) by inserting 
                                        ``provide'' after ``(A)'';
                                            (bb) by striking ``skill 
                                        levels and service needs'' and 
                                        inserting ``academic levels, 
                                        skill levels, and service 
                                        needs''; and
                                            (cc) by striking ``and 
                                        supportive service needs'' and 
                                        inserting ``supportive service 
                                        needs, and developmental needs 
                                        of such participants'';
                                    (IV) in subparagraph (B)--
                                            (aa) by striking 
                                        ``development of'' and 
                                        inserting ``develop''; and
                                            (bb) by inserting ``for 
                                        each participant'' after 
                                        ``service strategies''; and
                                    (V) by amending subparagraphs (C) 
                                and (D) to read as follows:
                    ``(C) integrate academic, occupational, and work-
                based learning opportunities;
                    ``(D) provide comprehensive guidance and 
                counseling;
                    ``(E) provide postsecondary educational or training 
                opportunities, where appropriate;
                    ``(F) involve employers and parents in the design 
                and implementation of programs;
                    ``(G) provide adult mentoring; and
                    ``(H) provide summer employment opportunities that 
                are directly linked to academic and occupational 
                learning.'';
                            (iii) in paragraph (2)--
                                    (I) in subparagraph (A)--
                                            (aa) in the matter 
                                        preceding clause (i), by 
                                        striking ``service delivery'' 
                                        and inserting ``workforce 
                                        development''; and
                                            (bb) in clause (i), by 
                                        striking ``service delivery'' 
                                        and inserting ``workforce 
                                        development''; and
                                    (II) in subparagraph (B)--
                                            (aa) in clause (i), by 
                                        striking ``(i) Service 
                                        providers.--''; and
                                            (bb) by striking clause 
                                        (ii);
                    (D) in subsection (b) (as redesignated)--
                            (i) in the matter preceding paragraph (1), 
                        by striking ``part'' and inserting ``title'';
                            (ii) in paragraph (1)--
                                    (I) in subparagraph (A), by 
                                striking ``section 204(b)(1)'' and 
                                inserting ``section 314(c)(4)'';
                                    (II) in subparagraph (C), by 
                                striking ``section 141(o)(1)'' and 
                                inserting ``section 141(11)(A)'';
                                    (III) in subparagraph (G) by 
                                striking ``in public agencies, 
                                nonprofit agencies, and other 
                                appropriate agencies, institutions, and 
                                organizations'';
                                    (IV) by amending subparagraph (H) 
                                to read as follows:
                    ``(H) such other training and transition services 
                that assist disadvantaged youth in making the 
                transition to employment or to postsecondary education 
                or training, as determined appropriate by the local 
                workforce development area; and'';
                                    (V) by amending subparagraph (I) to 
                                read as follows:
                    ``(I) summer employment opportunities that are 
                directly linked to academic and occupational 
                learning.''; and
                                    (VI) by striking subparagraphs (J) 
                                through (L); and
                            (iii) in paragraph (2)--
                                    (I) in subparagraph (A) to read as 
                                follows:
                    ``(A) assessment, outreach, staff development, job 
                development, and job search assistance activities;'';
                                    (II) in subparagraph (C), by 
                                striking ``and'' at the end;
                                    (III) in subparagraph (D)--
                                            (aa) by striking ``cash''; 
                                        and
                                            (bb) by striking the period 
                                        at the end and inserting ``; 
                                        and''; and
                                    (IV) by adding at the end the 
                                following:
                    ``(E) peer-centered activities encouraging 
                responsibility and other positive social behaviors 
                during non-school hours.'';
                    (E) in subsection (c) (as redesignated)--
                            (i) in paragraph (1)--
                                    (I) by striking ``service 
                                delivery'' and inserting ``workforce 
                                development'';
                                    (II) by striking ``private industry 
                                council'' and inserting ``local 
                                board''; and
                                    (III) by striking ``section 
                                453(c)'' and inserting ``part D of 
                                title IV'';
                            (ii) in clauses (i) through (iii) of 
                        paragraph (2)(B), by striking ``service 
                        delivery'' each place it occurs and inserting 
                        ``workforce development'';
                            (iii) in paragraph (3)--
                                    (I) in subparagraph (A)--
                                            (aa) in the heading to read 
                                        as follows:
                    ``(A) Work-related activities.--'';
                                            (bb) in the first sentence, 
                                        by inserting after ``work 
                                        maturity skills training'' the 
                                        following: ``, summer 
                                        employment, job search 
                                        assistance, job club 
                                        activities, and other work-
                                        related activities'';
                                            (cc) in the first sentence, 
                                        by striking ``part'' and 
                                        inserting ``title'';
                                            (dd) in the first sentence, 
                                        by striking ``by either work 
                                        experience or other additional 
                                        services'' and inserting ``by 
                                        occupational and academic 
                                        learning opportunities'';
                                            (ee) in the first sentence, 
                                        by striking ``basic education 
                                        or occupational skills'' and 
                                        inserting ``basic education and 
                                        occupational skills''; and
                                            (ff) in the second 
                                        sentence, by striking ``, 
                                        including the Job Corps'';
                                    (II) by striking subparagraph (B);
                                    (III) by redesignating subparagraph 
                                (C) as subparagraph (B); and
                                    (IV) in subparagraph (B) (as 
                                redesignated)--
                                            (aa) by striking clause 
                                        (i);
                                            (bb) by redesignating 
                                        clause (ii) as clause (i);
                                            (cc) in clause (i) (as 
                                        redesignated), by striking 
                                        ``part'' and inserting 
                                        ``title''; and
                                            (dd) by redesignating 
                                        clause (iii) as clause (ii);
                            (iv) in paragraph (5)--
                                    (I) in the heading, by striking 
                                ``Counseling'' and inserting ``Follow-
                                up, counseling'';
                                    (II) by striking ``part'' and 
                                inserting ``title''; and
                                    (III) by striking ``for a period of 
                                up to 1 year'';
                            (v) by striking paragraph (6);
                            (vi) in paragraph (7), by striking 
                        ``service delivery'' and inserting ``workforce 
                        development'' and
                            (vii) by redesignating paragraph (7) as 
                        paragraph (6).
    (f) Selection of Service Providers.--Title II of the Job Training 
Partnership Act (29 U.S.C. 1601 et seq.), as amended by this Act, is 
further amended by adding after section 206 (as redesignated), the 
following:

``SEC. 207. SELECTION OF SERVICE PROVIDERS.

    ``From funds made available under section 204(b) to a local 
workforce development area, the local board for such local area shall 
award grants, on a competitive basis, to eligible providers to carry 
out the disadvantaged youth programs described in section 206.''.
    (g) Educational Linkages.--Title II of the Job Training Partnership 
Act (29 U.S.C. 1601 et seq.), as amended by this Act, is further 
amended--
            (1) by redesignating section 265 as section 208; and
            (2) in section 208 (as redesignated)--
                    (A) in subsection (a), by striking ``service 
                delivery'' and inserting ``workforce development'';
                    (B) in subsection (b)--
                            (i) in the matter preceding paragraph (1), 
                        by striking ``service delivery'' and inserting 
                        ``workforce development''; and
                            (ii) in paragraph (6) to read as follows:
            ``(6) title I of the Personal Responsibility and Work 
        Opportunity Reconciliation Act of 1996;'';
                    (C) in subsection (c)--
                            (i) in the first sentence, by striking 
                        ``service delivery'' and inserting ``workforce 
                        development''; and
                            (ii) in the second sentence, by striking 
                        ``, including programs conducted under part 
                        A''; and
                    (D) by striking subsection (d).
    (h) Transfer of Funds.--Title II of the Job Training Partnership 
Act (29 U.S.C. 1601 et seq.), as amended by this Act, is further 
amended by striking section 266.

  TITLE III--AMENDMENTS TO EMPLOYMENT AND TRAINING PROGRAMS FOR ADULTS

SEC. 301. ADULT EMPLOYMENT AND TRAINING OPPORTUNITIES GRANTS.

    Title III of the Job Training Partnership Act (29 U.S.C. 1651 et 
seq.) is amended to read as follows:

    ``TITLE III--ADULT EMPLOYMENT AND TRAINING OPPORTUNITIES GRANTS

``SEC. 301. PURPOSE.

    ``The purpose of this title is to establish a high-quality, 
efficient system of employment, job training, and related assistance 
that--
            ``(1) provides individuals with choice in the selection of 
        employment and training options that will facilitate the 
        transition of such individuals into productive, high skills, 
        private sector jobs;
            ``(2) provides quality training of such individuals for the 
        21st century; and
            ``(3) drives resources and authority to States and local 
        communities for the design of job training programs.

      ``PART A--ADULT EMPLOYMENT AND TRAINING OPPORTUNITIES GRANTS

``SEC. 311. AUTHORIZATION.

    ``(a) In General.--In the case of each State that in accordance 
with the requirements of sections 101 and 102 submits to the Secretary 
of Labor (hereinafter in this title referred to as the `Secretary') a 
State plan, the Secretary shall provide funds to the State for the 
purpose of providing employment, job training, and related assistance 
for adults and dislocated workers in the State, in accordance with this 
title.
    ``(b) Amount.--The funds described in subsection (a) shall consist 
of the allotments determined for the State under section 312.

``SEC. 312. ALLOTMENT AMONG STATES.

    ``(a) In General.--Of the amount appropriated pursuant to section 
3(a)(2) to carry out this title for a fiscal year, the Secretary--
            ``(1) shall allot the total amount appropriated pursuant to 
        section 3(a)(2)(A) in accordance with subsection (b)(1); and
            ``(2)(A) shall allot 80 percent of the amount appropriated 
        pursuant to section 3(a)(2)(B) in accordance with the 
        subsection (b)(2); and
            ``(B) shall reserve the remainder of the amount 
        appropriated pursuant to section 3(a)(2)(B) for use under part 
        B.
    ``(b) Allotment Among States.--
            ``(1) Adult employment and training.--
                    ``(A) Reservation for outlying areas.--
                            ``(i) In general.--Of the amount allotted 
                        under subsection (a)(1), the Secretary shall 
                        allot not more than one quarter of one percent 
                        among the outlying areas.
                            ``(ii) Applicability of additional 
                        requirements.--Of the amount allotted under 
                        clause (i), the Secretary shall award grants to 
                        Guam, American Samoa, the Commonwealth of the 
                        Northern Mariana Islands, and the freely 
                        associated states in accordance with the 
                        requirements of section 203(b)(1).
                    ``(B) States.--
                            ``(i) In general.--After determining the 
                        amount to be allotted under subparagraph (A), 
                        the Secretary shall allot the remaining amount 
                        to the States pursuant to the formula contained 
                        in clause (ii).
                            ``(ii) Formula.--Subject to the provisions 
                        of clause (iii), of the amounts allotted to 
                        States for adult employment and training under 
                        this title for each fiscal year--
                                    ``(I) 33\1/3\ percent shall be 
                                allotted on the basis of the relative 
                                number of unemployed individuals 
                                residing in areas of substantial 
                                unemployment within each State as 
                                compared to the total number of such 
                                unemployed individuals in all such 
                                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 
                                within each State as 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 economically disadvantaged 
                                adults within each State as compared to 
                                the total number of economically 
                                disadvantaged adults in all States.
                            ``(iii) Minimum allotment.--
                                    ``(I) Minimum percentage.--No State 
                                shall be allotted less than 90 percent 
                                of its allotment percentage for the 
                                fiscal year preceding the fiscal year 
                                for which the determination is made.
                                    ``(II) Maximum percentage.--No 
                                State shall be allotted more than 130 
                                percent of its allotment percentage for 
                                the fiscal year preceding the fiscal 
                                year for which the determination is 
                                made.
                            ``(iv) Small state minimum allotment.--No 
                        State shall receive less than one-quarter of 
                        one percent of the amount available under this 
                        subparagraph for a 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.
            ``(2) Dislocated workers.--
                    ``(A) Reservation for outlying areas.--
                            ``(i) In general.--Of the amount allotted 
                        under subsection (a)(2)(A), the Secretary shall 
                        allot not more than one quarter of one percent 
                        among the outlying areas.
                            ``(ii) Applicability of additional 
                        requirements.--Of the amount allotted under 
                        clause (i), the Secretary shall award grants to 
                        Guam, American Samoa, the Commonwealth of the 
                        Northern Mariana Islands, and the freely 
                        associated states in accordance with the 
                        requirements of section 203(b)(1).
                    ``(B) States.--
                            ``(i) In general.--After determining the 
                        amount to be allotted under subparagraph (A), 
                        the Secretary shall allot the remaining amount 
                        to the States pursuant to the formula contained 
                        in clause (ii).
                            ``(ii) Formula.--Subject to the provisions 
                        of clause (iii), of the amounts allotted to 
                        States for dislocated worker employment and 
                        training under this title for each fiscal 
                        year--
                                    ``(I) 33\1/3\ percent shall be 
                                allotted among the States on the basis 
                                of the relative number of unemployed 
                                individuals who reside in each State as 
                                compared to the total number of 
                                unemployed individuals in all the 
                                States;
                                    ``(II) 33\1/3\ percent shall be 
                                allotted among the States on the basis 
                                of the relative excess number of 
                                unemployed individuals who reside in 
                                each State as compared to the total 
                                excess number of unemployed individuals 
                                in all the States (for purposes of this 
                                subclause, the term `excess number' 
                                means the number which represents 
                                unemployed individuals in excess of 4.5 
                                percent of the civilian labor force in 
                                the State); and
                                    ``(III) 33\1/3\ percent shall be 
                                allotted among the States on the basis 
                                of the relative number of individuals 
                                who have been unemployed for 15 weeks 
                                or more and who reside in each State as 
                                compared to the total number of such 
                                individuals in all the States.
                            ``(iii) Minimum allotment.--
                                    ``(I) Minimum percentage.--No State 
                                shall be allotted less than 90 percent 
                                of its allotment percentage for the 
                                fiscal year preceding the fiscal year 
                                for which the determination is made.
                                    ``(II) Maximum percentage.--No 
                                State shall be allotted more than 130 
                                percent of its allotment percentage for 
                                the fiscal year preceding the fiscal 
                                year for which the determination is 
                                made.
                            ``(iv) Small state minimum allotment.--No 
                        State shall receive less than one-quarter of 
                        one percent of the amount available under this 
                        subparagraph for a 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.

``SEC. 313. ALLOCATION WITHIN STATES.

    ``(a) Reservations for State Activities.--
            ``(1) Adult employment and training.--
                    ``(A) In general.--The Governor of the State shall 
                reserve not more than 15 percent of the total amount 
                allotted to the State under section 312(b)(1) for a 
                fiscal year for statewide activities for employment, 
                job training, and related assistance for adults.
                    ``(B) Allowable activities.--Such activities may 
                include--
                            ``(i) subject to subparagraph (C), 
                        administration by the State of programs under 
                        this title;
                            ``(ii) capacity building and technical 
                        assistance to local workforce development 
                        areas, full service employment and training 
                        delivery systems, and service providers 
                        including the development and training of staff 
                        and the development of exemplary program 
                        activities;
                            ``(iii) incentives for program coordination 
                        and integration, performance awards, and 
                        research and demonstrations;
                            ``(iv) implementation of innovative 
                        incumbent worker training programs, which may 
                        include the establishment and implementation of 
                        an employer loan program to assist in skills 
                        upgrading, and the establishment and 
                        implementation of programs targeted to 
                        empowerment zones;
                            ``(v) implementation of experimentation, 
                        model activities, pilot projects, demonstration 
                        projects, and the provision of employment and 
                        training services which further the goals and 
                        purposes of this Act;
                            ``(vi) additional assistance for the 
                        development and implementation of the full 
                        service employment and training delivery system 
                        established in accordance with section 123;
                            ``(vii) support for a common management 
                        information system across employment, training, 
                        literacy, and human resource programs as 
                        identified in section 103;
                            ``(viii) support for the identification of 
                        eligible training providers as required under 
                        section 124; and
                            ``(ix) implementation of innovative 
                        programs for displaced homemakers and programs 
                        to increase the number of individuals training 
                        and placed in nontraditional employment.
                    ``(C) Limitation.--Of the amount reserved by the 
                Governor under subparagraph (A) not more than 5 percent 
                of the total amount allotted to the State under section 
                312(b)(1) for a fiscal year may be used for 
                administration by the State of programs under this 
                part.
            ``(2) Dislocated workers employment and training.--
                    ``(A) In general.--The Governor of the State shall 
                reserve not more than 30 percent of the total amount 
                allotted to the State under section 312(b)(2) for a 
                fiscal year for statewide activities for employment, 
                job training, and related assistance for dislocated 
                workers.
                    ``(B) Required activities.--Such activities shall 
                include--
                            ``(i) rapid response activities carried out 
                        by a designated State dislocated worker unit, 
                        working in conjunction with the local workforce 
                        development board and the chief elected 
                        official in an affected local workforce 
                        development area; and
                            ``(ii) additional assistance to areas that 
                        experience disasters, mass layoffs or plant 
                        closings, or other events that precipitate 
                        substantial increases in the number of 
                        unemployed workers, working in conjunction with 
                        the local workforce development board and the 
                        chief elected official in affected local 
                        workforce development areas.
                    ``(C) Discretionary activities.--Such activities 
                may include those activities described in paragraph 
                (1)(B).
                    ``(D) Limitation.--Of the amount reserved by the 
                Governor under subparagraph (A) not more than 10 
                percent of the total amount allotted to the State under 
                section 312(b)(2) for a fiscal year may be used for 
                activities described in paragraph (1)(B) and of that 
                amount not more than 5 percent of the total amount 
                allotted to the State under section 312(b)(2) for a 
                fiscal year may be used for administration by the State 
                of programs under this part.
    ``(b) Within State Allocation.--
            ``(1) Allocation.--
                    ``(A) In general.--The Governor of the State shall 
                allocate the remainder of the amounts allotted to the 
                State under section 312 to workforce development areas 
                designated under section 121 for the purpose of 
                providing a single system of employment and training 
                services for adults and dislocated workers in 
                accordance with section 314.
                    ``(B) Additional requirements.--(i) Funds allocated 
                under paragraph (2)(B), shall be used by a local 
                workforce development area to contribute 
                proportionately to the costs of the local full service 
                employment and training delivery system, and to pay for 
                services provided to adults, in the local area, 
                consistent with section 314.
                    ``(ii) Funds allocated under paragraph (2)(C), 
                shall be used by a local workforce development area to 
                contribute proportionately to the costs of the local 
                full service employment and training delivery system, 
                and to pay for services provided to dislocated workers, 
                in the local area, consistent with section 314.
            ``(2) Methods.--
                    ``(A) In general.--The Governor, through the 
                collaborative process under section 102, and after 
                consultation with local chief elected officials in the 
                local workforce development areas, shall allocate the 
                remainder of funds described in subsection (a)(1)(A) 
                for adult employment and training in accordance with 
                subparagraph (B), and the funds described in subsection 
                (a)(2)(A) for dislocated workers in accordance with 
                subparagraph (C).
                    ``(B) Adult employment and training allocations.--
                            ``(i) Adult employment and training formula 
                        allocations.--Each State shall allocate not 
                        less than 70 percent of the remainder of funds 
                        described in subsection (a)(1)(A) to workforce 
                        development areas within the State pursuant to 
                        the formula contained in clause (ii) for the 
                        provision of adult employment and training 
                        services in accordance with section 314.
                            ``(ii) Formula.--Of the amounts described 
                        in clause (i)--
                                    ``(I) 33\1/3\ percent shall be 
                                allocated on the basis of the relative 
                                number of unemployed individuals 
                                residing in areas of substantial 
                                unemployment in each workforce 
                                development area as compared to the 
                                total number of such unemployed 
                                individuals in all such areas of 
                                substantial unemployment in the State;
                                    ``(II) 33\1/3\ percent shall be 
                                allocated on the basis of the relative 
                                excess number of unemployed individuals 
                                who reside in each workforce 
                                development area as compared to the 
                                total excess number of unemployed 
                                individuals in all workforce 
                                development areas in the State; and
                                    ``(III) 33\1/3\ percent shall be 
                                allocated on the basis of the relative 
                                number of economically disadvantaged 
                                adults in each workforce development 
                                area as compared to the total number of 
                                disadvantaged adults in all workforce 
                                development areas in the State.
                            ``(iii) Adult employment and training 
                        discretionary allocation.--The State, through 
                        the collaborative process, is authorized to 
                        allocate not more than 30 percent of the 
                        remainder of funds described in subsection 
                        (a)(1)(A) to workforce development areas for 
                        the provision of adult employment and training 
                        services in accordance with section 314. Such 
                        funds shall be allocated to urban, rural, and 
                        suburban areas throughout the State and shall 
                        be allocated promptly in accordance with 
                        section 162(e).
                    ``(C) Dislocated worker employment and training 
                allocations.--
                            ``(i) Dislocated worker employment and 
                        training formula allocations.--Each State shall 
                        allocate not less than 70 percent of the 
                        remainder of funds described in subsection 
                        (a)(2)(A) to workforce development areas within 
                        the State pursuant to the formula contained in 
                        clause (ii) for the provision of employment and 
                        training services to dislocated workers in 
                        accordance with section 314.
                            ``(ii) Formula.--Of the amounts described 
                        in clause (i)--
                                    ``(I) 33\1/3\ percent shall be 
                                allocated on the basis of the relative 
                                number of unemployed individuals 
                                residing in areas of substantial 
                                unemployment in each workforce 
                                development area as compared to the 
                                total number of such unemployed 
                                individuals in all such areas of 
                                substantial unemployment in the State;
                                    ``(II) 33\1/3\ percent shall be 
                                allocated on the basis of the relative 
                                excess number of unemployed individuals 
                                who reside in each workforce 
                                development area as compared to the 
                                total excess number of unemployed 
                                individuals in all workforce 
                                development areas in the State; and
                                    ``(III) 33\1/3\ percent shall be 
                                allocated on the basis of the relative 
                                number of individuals who have been 
                                unemployed for 15 weeks or more within 
                                each workforce development area of the 
                                State as compared to the total number 
                                of such individuals in all workforce 
                                development areas in the State.
                            ``(iii) Dislocated worker employment and 
                        training discretionary allocation.--The State, 
                        through the collaborative process, is 
                        authorized to allocate not more than 30 percent 
                        of the remainder of funds described in 
                        subsection (a)(2)(A) to workforce development 
                        areas for the provision employment and training 
                        services to dislocated workers in accordance 
                        with section 314. Such funds shall be allocated 
                        to urban, rural, and suburban areas throughout 
                        the State and shall be allocated promptly in 
                        accordance with section 162(e).
            ``(3) Transfer authority.--A local workforce development 
        area is authorized to transfer up to 20 percent of the funds 
        received under this subsection between adult employment and 
        training and dislocated worker allocations if such transfer is 
        approved by the Governor.

``SEC. 314. USE OF AMOUNTS.

    ``(a) Core Services.--Amounts allocated for adults under section 
313(b)(2)(B) and for dislocated workers under section 313(b)(2)(C) 
shall be used to provide core services described in section 123(d) to 
adults and dislocated workers, respectively, through a full service 
employment and training delivery system in accordance with such 
section.
    ``(b) Intensive Services.--
            ``(1) In general.--Amounts allocated for adults under 
        section 313(b)(2)(B) and for dislocated workers under section 
        313(b)(2)(C) shall be used to provide intensive services to 
        adults and dislocated workers, respectively--
                    ``(A)(i) who are unable to obtain employment 
                through core services under subsection (a); and
                    ``(ii) who have been determined to be in need of 
                more intensive services in order to gain employment; or
                    ``(B)(i) who are employed but are economically 
                disadvantaged despite such employment; and
                    ``(ii) who are determined to be in need of such 
                intensive services in order to gain employment that 
                allows for self-sufficiency.
            ``(2) Delivery of services.--Such intensive services shall 
        be provided--
                    ``(A) directly through full service eligible 
                providers identified pursuant to section 123(c); or
                    ``(B) through contracts through full service 
                employment and training delivery systems with service 
                providers approved by the local workforce development 
                board, which may include private, for-profit providers.
            ``(3) Types of services.--Such intensive services may 
        include the following:
                    ``(A) Comprehensive and specialized assessments of 
                the skill levels and service needs of adults, which may 
                include--
                            ``(i) diagnostic testing and other 
                        assessment tools; and
                            ``(ii) in-depth interviewing and evaluation 
                        to identify employment barriers and appropriate 
                        employment goals.
                    ``(B) Development of an individual employment plan, 
                to identify the employment goals, appropriate 
                achievement objectives, and the appropriate combination 
                of services for the participant to achieve the 
                employment goal.
                    ``(C) Group counseling.
                    ``(D) Individual counseling and career planning.
                    ``(E) Case management for participants receiving 
                training services under subsection (c).
                    ``(F) Follow-up services for participants placed in 
                training or employment, for up to 1 year, to assist in 
                retention or advancement in employment.
    ``(c) Training Services.--
            ``(1) In general.--Amounts allocated for adults under 
        section 313(b)(2)(B) and for dislocated workers under section 
        313(b)(2)(C) shall be used to provide training services to 
        adults and dislocated workers, respectively--
                    ``(A) who are unable to obtain employment through 
                core services under subsection (a);
                    ``(B) who are in need of training services in order 
                to gain employment as a result of determinations made 
                through--
                            ``(i) initial assessments under subsection 
                        (a); or
                            ``(ii) comprehensive and specialized 
                        assessments under subsection (b)(3)(A); or
                    ``(C)(i) who are employed but are economically 
                disadvantaged despite such employment; and
                    ``(ii) who are determined to be in need of such 
                training services in order to gain employment that 
                allows for self-sufficiency.
            ``(2) Participant qualification.--
                    ``(A) Requirements.--Except as provided in 
                subparagraph (B), provision of such training services 
                shall be limited to participants 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.
                    ``(B) Reimbursements.--Training services may be 
                provided under this subsection to an individual who 
                otherwise meets the requirements of this subsection 
                while an application for a Federal Pell Grant or other 
                grant assistance is pending, except that if such 
                individual is subsequently awarded a Federal Pell Grant 
                or other grant assistance, appropriate reimbursement 
                shall be made to the local workforce development area 
                from such Federal Pell Grant or other grant assistance.
            ``(3) Provider qualification.--Such training services shall 
        be provided through training providers identified under in 
        accordance with section 124.
            ``(4) Types of services.--Such training services may 
        include the following:
                    ``(A) Basic skills training, including remedial 
                education, literacy training, and English literacy 
                program instruction.
                    ``(B) Occupational skills training, including 
                training for nontraditional employment.
                    ``(C) On-the-job training.
                    ``(D) Programs that combine workplace training with 
                related instruction, which may include cooperative 
                education programs.
                    ``(E) Training programs operated by the private 
                sector.
                    ``(F) Skill upgrading and retraining.
                    ``(G) Entrepreneurial training.
                    ``(H) Employability training to enhance basic 
                workplace competencies.
                    ``(I) Customized training conducted with a 
                commitment by an employer or group of employers to 
                employ an individual upon successful completion of the 
                training.
            ``(5) Individual choice requirements.--
                    ``(A) In general.--All training services under this 
                section shall be provided through service delivery 
                methods that, to the extent practicable, maximize 
                consumer choice in the selection of eligible providers 
                of training services.
                    ``(B) Information on eligible providers.--Each 
                local workforce development board, through the full 
                service employment and training delivery system, shall 
                make available--
                            ``(i) the list of eligible providers of 
                        training services required under section 124, 
                        with a description of the training courses 
                        available from such providers and a list of the 
                        names of on-the-job training providers; and
                            ``(ii) the performance information 
                        described in section 124 relating to such 
                        providers.
                    ``(C) Purchase of services.--An individual eligible 
                for training services under this section may select an 
                eligible provider of training services from the list of 
                providers described in subparagraph (B)(i). Upon such 
                selection, the full service eligible provider shall, to 
                the extent practicable, refer such individual to the 
                selected eligible provider of training services and 
                arrange for payment for such services.
            ``(6) Additional requirements.--
                    ``(A) Use of skill grants.--
                            ``(i) In general.--Except as provided in 
                        clause (ii) and clause (iii), training services 
                        under this section shall be provided through 
                        the use of skill grants in accordance with this 
                        subsection, and shall be distributed to 
                        eligible individuals through full service 
                        eligible providers or affiliated sites as 
                        described in section 123.
                            ``(ii) Exceptions.--Training services 
                        authorized under this title may be provided 
                        pursuant to a contract for services in lieu of 
                        a skill grant if the requirements of paragraph 
                        (5) are met and if--
                                    ``(I) such services are on-the-job 
                                training provided by an employer;
                                    ``(II) the local workforce 
                                development board determines there are 
                                an insufficient number of qualified 
                                providers of training services in the 
                                workforce development area to 
                                accomplish the purposes of a skill 
                                grant system;
                                    ``(III) the local workforce 
                                development board determines that the 
                                qualified providers of training 
                                services in the workforce development 
                                area are unable to provide effective 
                                services to special participant 
                                populations; or
                                    ``(IV) the local workforce 
                                development board decides to enter into 
                                a direct training contract with a 
                                community based organization.
                            ``(iii) Transition.--Each State shall, not 
                        later than three years after the date of the 
                        enactment of the Employment, Training, and 
                        Literacy Enhancement Act of 1997, fully 
                        implement the requirements of clause (i). 
                        Nothing in this Act shall prohibit a State from 
                        beginning such implementation at an earlier 
                        date.
                    ``(B) Linkage to occupations in demand.--Training 
                services under this subsection shall be directly linked 
                to occupations for which there is a demand in the local 
                workforce development area, or in another area to which 
                an adult receiving such services is willing to 
                relocate, except that a local workforce development 
                board may approve training in occupations determined by 
                the local board to be in sectors of the economy which 
                have a high potential for sustained demand or growth in 
                the local workforce development area.
    ``(d) Additional Uses of Amounts.--
            ``(1) Supportive services.--Amounts allocated for adults 
        under section 313(b)(2)(B) and for dislocated workers under 
        section 313(b)(2)(C) may be used to provide supportive services 
        for adults and dislocated workers, respectively--
                    ``(A) who are receiving assistance under any of 
                subsections (a) through (c); and
                    ``(B) who are unable to receive such services 
                through other programs providing such services.
            ``(2) Needs-related payments.--
                    ``(A) In general.--Amounts allocated under section 
                313(b) may be used to provide needs-related payments to 
                adults and dislocated workers who are unemployed and do 
                not qualify for (or have ceased to qualify for) 
                unemployment compensation for the purpose of enabling 
                such individuals to participate in training programs 
                under subsection (c).
                    ``(B) Additional eligibility requirements.--In 
                addition to the requirements contained in subparagraph 
                (A), a dislocated worker who has exhausted unemployment 
                insurance benefits may be eligible to receive needs-
                related payments under this paragraph only if such 
                worker was enrolled in training by the end of the 13th 
                week of the worker's most recent layoff, or, if later, 
                by the end of the 8th week after the worker is informed 
                that a short-term layoff will in fact exceed 6 months.
    ``(e) Priority.--From funds allocated to local workforce 
development areas for adult employment and training under section 
313(b)(1)(B)(i), priority shall be given to welfare recipients and 
other economically disadvantaged individuals with multiple barriers to 
employment for receipt of intensive services and training services 
provided under subsections (b) and (c) of section 314, respectively.

                      ``PART B--NATIONAL PROGRAMS

``SEC. 321. NATIONAL EMERGENCY GRANTS.

    ``(a) In General.--From the amount reserved under section 
312(a)(2), the Secretary of Labor is authorized to award national 
emergency grants in a timely manner--
            ``(1) to an entity described in subsection (b) 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; and
            ``(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').
    ``(b) Employment and Training Assistance Requirements.--
            ``(1) Application.--To be eligible to receive a grant under 
        subsection (a)(1), an entity shall submit an application to the 
        Secretary of Labor at such time, in such manner, and 
        accompanied by such information, as the Secretary may 
        reasonably require.
            ``(2) Eligible entity.--For purposes of this section, the 
        term `entity' means a State, local workforce development board, 
        employer or employer association, worker-management transition 
        assistance committee or other employer-employee entity, 
        representative of employees, community development corporation 
        or community-based organization, or an industry consortia
    ``(c) Disaster Relief Employment Assistance Requirements.--
            ``(1) In general.--Funds made available under subsection 
        (a)(2)--
                    ``(A) shall be used exclusively to provide 
                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; and
                    ``(B) may be expended through public and private 
                agencies and organizations engaged in such projects.
            ``(2) Eligibility.--An individual shall be eligible to be 
        offered disaster relief employment under this section if such 
        individual is a dislocated worker or is temporarily or 
        permanently laid off as a consequence of the disaster.
            ``(3) Limitations on disaster relief employment.--No 
        individual shall be employed under this part for more than 6 
        months for work related to recovery from a single natural 
        disaster.''.

        TITLE IV--AMENDMENTS TO FEDERALLY ADMINISTERED PROGRAMS

 Subtitle A--Employment and Training Programs for Native Americans and 
                    Migrant and Seasonal Farmworkers

SEC. 401. NATIVE AMERICAN PROGRAM.

    Section 401 of the Job Training Partnership Act (29 U.S.C. 1671) is 
amended to read as follows:

``SEC. 401. NATIVE AMERICAN PROGRAMS.

    ``(a) Purpose.--
            ``(1) In general.--The purpose of this section is to 
        support employment and training activities for Indian, Alaska 
        Native, 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, Alaska Native, and Native 
                Hawaiian communities in accordance with the goals and 
                values of such communities.
            ``(2)  Indian policy.--All programs assisted under this 
        section shall be administered in a manner consistent with the 
        principles of the Indian Self-Determination and Education 
        Assistance Act (25 U.S.C. 450 et seq.) and the government-to-
        government relationship between the Federal Government and 
        Indian tribal governments.
    ``(b) Definitions.--As used in this section:
            ``(1) Alaska native.--The term `Alaska Native' means a 
        Native as such term is defined in section 3(b) of the Alaska 
        Native Claims Settlement Act (43 U.S.C. 1602(b)).
            ``(2) Indian, indian tribe, and tribal organization.--The 
        terms `Indian', `Indian tribe', and `tribal organization' have 
        the meanings given such terms in subsections (d), (e), and (l), 
        respectively, of section 4 of the Indian Self-Determination and 
        Education Assistance Act (25 U.S.C. 450b).
            ``(3) 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) Program Authorized.--The Secretary of Labor shall make grants 
to, or enter into contracts or cooperative agreements with, Indian 
tribes, tribal organizations, Alaska Native entities, Indian-controlled 
organizations serving Indians, or Native Hawaiian organizations to 
carry out the authorized activities described in subsection (d).
    ``(d) Authorized Activities.--
            ``(1) In general.--Funds made available under this section 
        shall be used to carry out the activities described in 
        paragraphs (2) and (3) that--
                    ``(A) are consistent with this section; and
                    ``(B) are necessary to meet the needs of Indians or 
                Native Hawaiians preparing to enter, renter, or retain 
                unsubsidized employment.
            ``(2) Employment and training activities and supplemental 
        services.--
                    ``(A) In general.--Funds made available under this 
                section shall be used for--
                            ``(i) comprehensive workforce and career 
                        development activities for Indians or Native 
                        Hawaiians; or
                            ``(ii) 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 of Labor a 
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--
            ``(1) shall be consistent with the purposes of this 
        section;
            ``(2) shall identify the population to be served;
            ``(3) shall identify the education and employment needs of 
        the population to be served and the manner in which the 
        services to be provided will strengthen the ability of the 
        individuals served to obtain or retain unsubsidized employment;
            ``(4) shall describe the services to be provided and the 
        manner in which such services are to be integrated with other 
        appropriate services; and
            ``(5) shall describe the goals and benchmarks 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 this section may consolidate such assistance with assistance 
received from related programs in accordance with the provisions of the 
Indian Employment, Training and Related Services Demonstration Act of 
1992 (25 U.S.C. 3401 et seq.).
    ``(g) Nonduplicative and Nonexclusive Services.--Nothing in this 
section shall be construed--
            ``(1) to limit the eligibility of any entity described in 
        subsection (c) 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 of 
        Labor shall designate a single organizational unit that shall 
        have as its primary responsibility the administration of the 
        activities authorized under this section.
            ``(2) Regulations.--The Secretary of Labor shall consult 
        with the entities described in subsection (c)(1) in 
        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 groups, and in developing a funding distribution plan 
        that takes into consideration previous levels of funding.
            ``(3) Technical assistance.--The Secretary of Labor, 
        through the unit established under paragraph (1), are 
        authorized to provide technical assistance to entities 
        described in subsection (c) that receive assistance under this 
        section to enable such entities to improve the workforce and 
        career development activities provided by such entities.''.

SEC. 402. MIGRANT AND SEASONAL FARMWORKER PROGRAM.

    Section 402 of the Job Training Partnership Act (29 U.S.C. 1672) is 
amended to read as follows:

``SEC. 402. MIGRANT AND SEASONAL FARMWORKER PROGRAM.

    ``(a) In General.--The Secretary of Labor shall 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 migrant farmworkers and seasonal 
farmworkers, a familiarity with the area to be served, and the ability 
to demonstrate a capacity to administer effectively a diversified 
program of workforce and career development activities for migrant 
farmworkers 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 of Labor a plan 
        that describes a 2-year strategy for meeting the needs of 
        migrant farmworkers and seasonal farmworkers and their 
        dependents in the area to be served by such entity.
            ``(2) Contents.--Such plan shall--
                    ``(A) identify the education and employment needs 
                of the population to be served and the manner in which 
                the services to be provided will strengthen the ability 
                of the eligible farmworkers and dependents to obtain or 
                be retained in unsubsidized employment or stabilize 
                their unsubsidized employment;
                    ``(B) describe the related assistance and 
                supportive services to be provided and the manner in 
                which such services are to be integrated and 
                coordinated with other appropriate services; and
                    ``(C) describe the goals and benchmarks 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 comprehensive workforce and career 
development activities and related services for migrant farmworkers and 
seasonal farmworkers which may include employment, training, 
educational assistance, literacy assistance, an English literacy 
program, worker safety training, housing, supportive services, and the 
continuation of the case management database on participating migrant 
farmworkers and seasonal farmworkers.
    ``(e) Consultation With Governors and Local Boards.--In making 
grants and entering into contracts under this section, the Secretary of 
Labor shall consult with the Governors and local boards of the States 
in which the eligible entities will carry out the activities described 
in subsection (d).
    ``(f) Regulations.--The Secretaries shall consult with migrant and 
seasonal farmworker groups and States in establishing regulations to 
carry out this section, including performance measures for eligible 
entities which take into account the economic circumstances of migrant 
farmworkers and seasonal farmworkers.
    ``(g) Definitions.--As used in this section:
            ``(1) Migrant farmworker.--The term `migrant farmworker' 
        means a seasonal farmworker whose farm work requires travel 
        such that the worker is unable to return to a permanent place 
        of residence within the same day.
            ``(2) Seasonal farmworker.--The term `seasonal farmworker' 
        means a person who during the eligibility determination period 
        (12 consecutive months out of 24 months prior to application)--
                    ``(A) has been primarily employed in farm work that 
                is characterized by chronic unemployment or under 
                employment; and
                    ``(B) is economically disadvantaged at the time of 
                application.''.

                         Subtitle B--Job Corps

SEC. 411. STATEMENT OF PURPOSE.

    Section 421 of the Job Training Partnership Act (29 U.S.C. 1691) is 
amended in the first sentence by inserting after ``a distinct national 
program'' the following: ``carried out in collaboration with States and 
localities''.

SEC. 412. INDIVIDUALS ELIGIBLE FOR THE JOB CORPS.

    Section 423 of the Job Training Partnership Act (29 U.S.C. 1693) is 
amended--
            (1) in paragraph (1), by striking ``14'' and inserting 
        ``16'';
            (2) in paragraph (2), by striking ``, and who requires'' 
        and all that follows and inserting a semicolon;
            (3) by redesignating paragraphs (3), (4), and (5) as 
        paragraphs (4), (5), and (6), respectively; and
            (4) by inserting after paragraph (2) the following:
            ``(3) is an individual who--
                    ``(A) is deficient in basic skills;
                    ``(B) is a school dropout;
                    ``(C) is homeless or a runaway;
                    ``(D) is a single parent; or
                    ``(E) requires additional education, training, or 
                intensive counseling and related assistance in order to 
                secure and hold meaningful employment, participate 
                successfully in regular school work, qualify for other 
                suitable training programs, or satisfy Armed Forces 
                requirements;''.

SEC. 413. SCREENING AND SELECTION OF APPLICANTS; GENERAL PROVISIONS.

    Section 424(a) of the Job Training Partnership Act (29 U.S.C. 
1694(a)) is amended--
            (1) in the first sentence, by adding at the end before the 
        period the following: ``after considering input from State, 
        local, and community groups and other interested parties'';
            (2) in the second sentence--
                    (A) by inserting after ``public employment 
                offices,'' the following: ``full service eligible 
                providers,''; and
                    (B) by striking ``and agencies'' and inserting 
                ``and entities''; and
            (3) in the third sentence, by inserting after ``The rules 
        shall'' the following: ``require Job Corps applicants to pass 
        background checks, conducted in accordance with procedures 
        established by the Secretary, and''.

SEC. 414. JOB CORPS CENTERS.

    Section 427 of the Job Training Partnership Act (29 U.S.C. 1697) is 
amended--
            (1) in subsection (a)(1), by adding at the end the 
        following: ``In selecting any entity to serve as an operator or 
        to provide services for a Job Corps center, the Secretary shall 
        take into consideration the previous performance of the entity, 
        if any, relating to operating or providing services for a Job 
        Corps center.'';
            (2) in subsection (c) to read as follows:
    ``(c) The Secretary may select an entity to operate a Civilian 
Conservation Center on a competitive basis if such a center fails to 
meet performance criteria established by the Secretary.''; and
            (3) by adding at the end the following:
    ``(d) Notwithstanding any other provision of law, any proceeds from 
the sale of Job Corps center facilities shall be retained by the 
Secretary to carry out the Job Corps program.
    ``(e) Prior to the closure of any Job Corps center, the Secretary 
shall ensure that--
            ``(1) the proposed decision to close the center is 
        announced in advance to the general public through publication 
        in the Federal Register or other appropriate means;
            ``(2) the establishment of a reasonable comment period, not 
        to exceed 30 days, for interested individuals to submit written 
        comments to the Secretary;
            ``(3) the Members of Congress who represent districts 
        affected by the proposed decision to close the center are 
        notified within a reasonable period of time in advance of any 
        final decision to close the center; and
            ``(4) the geographic location of alternative Job Corps 
        centers is among the factors taken into account in the decision 
        to close the center.''.

SEC. 415. STANDARDS OF CONDUCT.

    Section 430(a) of the Job Training Partnership Act (29 U.S.C. 
1700(a)) is amended--
            (1) in the first sentence, by adding at the end before the 
        period the following: ``, including a policy of zero tolerance 
        for violence and illegal drugs under which enrollees will 
        receive mandatory terminations for specific actions in 
        accordance with regulations issued by the Secretary'';
            (2) by inserting after the first sentence the following: 
        ``As part of the zero tolerance policy, drug testing of all 
        students shall be required in accordance with procedures 
        established by the Secretary.''; and
            (3) in the third sentence, by inserting after ``If 
        violations'' the following: ``of center standards other than 
        those covered by the zero tolerance policy''.

SEC. 416. COUNSELING AND JOB PLACEMENT.

    Section 432(b) of the Job Training Partnership Act (29 U.S.C. 
1702(b)) is amended in the first sentence by inserting after 
``determine their capabilities and'' the following: ``, based on these 
capabilities,''.

SEC. 417. EXPERIMENTAL AND DEVELOPMENTAL PROJECTS AND COORDINATION WITH 
              OTHER PROGRAMS.

    Section 433(c)(1) of the Job Training Partnership Act (29 U.S.C. 
1703(c)(1)) is amended in the first sentence by striking ``disseminate 
information'' and inserting ``disseminate to Federal, State, and local 
workforce development programs information and best practices''.

                    Subtitle C--National Activities

SEC. 421. RESEARCH, DEMONSTRATION, EVALUATION, AND CAPACITY BUILDING.

    Part D of the Job Training Partnership Act (29 U.S.C. 1731 et seq.) 
is amended by striking sections 451 through 454 and inserting the 
following:

``SEC. 451. RESEARCH, DEMONSTRATION, EVALUATION, AND CAPACITY BUILDING.

    ``(a) In General.--The Secretary is authorized to establish and 
carry out research, demonstration, evaluation, and capacity building 
activities described in subsections (b) through (f).
    ``(b) National Partnership and Special Training.--The Secretary may 
award special grants to eligible entities to carry out programs that 
are most appropriately administered at the national level. Such 
activities may include--
            ``(1) partnership programs with national organizations with 
        special expertise in developing, organizing, and administering 
        employment and training services at the national, State, and 
        local levels, such as industry and labor associations, public 
        interest groups, community-based organizations representative 
        of groups that encounter special difficulties in the labor 
        market, and other organizations with special knowledge or 
        capabilities in education and training; and
            ``(2) activities that--
                    ``(A) address industry-wide skill shortages;
                    ``(B) meet training needs that are best addressed 
                on a multi-state basis;
                    ``(C) further the goals of increasing the 
                competitiveness of the United States labor force;
                    ``(D) require technical expertise available at the 
                national level to serve the needs of particular client 
                groups that encounter significant barriers to 
                employment and who the Secretary determines require 
                special assistance; or
                    ``(E) promote and experiment with model activities, 
                pilot projects, and demonstration projects which 
                further the goals and purposes of this Act.
    ``(c) Research.--The Secretary is authorized to conduct continuing 
research, which may include studies and other methods and techniques, 
that will aid in the solution of the employment and training problems 
of the United States. Such studies may include the extent to which 
individuals who participate in programs established under this title 
achieve self-sufficiency as a result of such participation, including 
the identification by States and localities, to the extent practicable, 
of indicators measuring such self-sufficiency.
    ``(d) Pilot and Demonstration Programs.--
            ``(1) In general.--The Secretary is authorized to conduct 
        pilot and demonstration programs for the purpose of developing 
        and improving techniques and demonstrating the effectiveness of 
        specialized methods in addressing employment and training needs 
        which may include--
                    ``(A) the establishment of advanced manufacturing 
                technology skill centers developed through local 
                partnerships of industry, labor, education, community-
                based organizations, and economic development 
                organizations to meet unmet, high-tech skill needs of 
                local communities;
                    ``(B) projects that provide training to upgrade the 
                skills of employed workers who reside and are employed 
                in enterprise zones or empowerment communities;
                    ``(C) programs conducted jointly with the 
                Department of Defense to develop training programs 
                utilizing computer-based and other innovative learning 
                technologies;
                    ``(D) projects that promote the use of distance 
                learning, enabling students to take courses through the 
                use of media technology such as videos, 
                teleconferencing computers, and the Internet;
                    ``(E) projects that assist in providing 
                comprehensive services to increase the employment rates 
                of out-of-school youth residing in targeted high 
                poverty areas within empowerment zones and enterprise 
                communities;
                    ``(F) the establishment of partnerships with 
                national organizations with special expertise in 
                developing, organizing, and administering employment 
                and training services for persons with disabilities at 
                the national, State, and local levels;
                    ``(G) projects to assist public housing authorities 
                that provide to public housing residents job training 
                programs that demonstrate successful job skills 
                upgrading and employment; and
                    ``(H) projects that assist local workforce 
                development areas to develop and implement local self-
                sufficiency standards to evaluate the degree to which 
                program participants are achieving self-sufficiency.
            ``(2) Grants and contracts.--The Secretary may award grants 
        and enter into contracts with entities to carry out this 
        subsection.
            ``(3) Evaluation and effectiveness.--Demonstration programs 
        assisted under this subsection shall include a formal, rigorous 
        evaluation component. Pilot programs assisted under this 
        subsection shall include an appropriate evaluation component.
            ``(4) Special rule.--A demonstration program under this 
        subsection may not be assisted under this subsection for a 
        period of more than 7 years. A pilot program under this 
        subsection may not be assisted under this subsection for a 
        period of more than 3 years.
    ``(e) Evaluation.--
            ``(1) Activities.--
                    ``(A) Job training.--The Secretary shall provide 
                for the continuing evaluation of programs conducted 
                under this Act.
                    ``(B) Other programs.--The Secretary may conduct 
                evaluations of federally-funded employment-related 
                activities under other provisions of law.
            ``(2) Techniques.--
                    ``(A) Methods.--Evaluations conducted under 
                paragraph (1) shall utilize sound statistical methods 
                and techniques for the behavioral and social sciences, 
                including the use of control groups chosen by 
                scientific random assignment methodologies when 
                feasible.
                    ``(B) Effectiveness.--The Secretary shall evaluate 
                the effectiveness of programs authorized under this Act 
                with respect to--
                            ``(i) the statutory goals; and
                            ``(ii) the cost effectiveness and return-
                        on-investment of such programs based on the 
                        extent to which the programs--
                                    ``(I) enhance the employment and 
                                earnings of participants;
                                    ``(II) reduce income support costs 
                                (including the receipt of welfare 
                                assistance);
                                    ``(III) improve the employment 
                                competencies of participants in 
                                comparison to comparable persons who 
                                did not participate in such programs; 
                                and
                                    ``(IV) to the extent feasible, 
                                increase the level of total employment 
                                over the level that would have existed 
                                in the absence of such programs.
    ``(f) Technical Assistance, Dissemination, and Replication 
Activities.--The Secretary shall provide, coordinate, and support the 
development of, appropriate training, technical assistance, staff 
development, and other activities, including assistance in replicating 
programs of demonstrated effectiveness, to States and localities.

``SEC. 452. INCENTIVE GRANTS.

    ``From amounts authorized to be appropriated pursuant to section 
3(a)(3) to carry out this part for a fiscal year, the Secretary is 
authorized to award incentive grants to States consistent with the 
requirements of section 156(a).''.

SEC. 422. NONTRADITIONAL EMPLOYMENT DEMONSTRATION PROGRAM.

    Section 456 of the Job Training Partnership Act (29 U.S.C. 1737) is 
hereby repealed.

                         Subtitle D--Repealers

SEC. 451. REPEALERS.

    Parts F, G, H, I, and J of title IV of the Job Training Partnership 
Act (29 U.S.C. 1771 et seq.) are hereby repealed.

            TITLE V--AMENDMENTS TO ADULT EDUCATION PROGRAMS

SEC. 501. REPEAL OF JOBS FOR EMPLOYABLE DEPENDENT INDIVIDUALS INCENTIVE 
              BONUS PROGRAM.

    Title V of the Job Training Partnership Act (29 U.S.C. 1791 et 
seq.) is repealed.

SEC. 502. AMENDMENT TO ADULT EDUCATION ACT.

    The Adult Education Act (20 U.S.C. 1201 et seq.) is amended to read 
as follows:

       ``TITLE III--ADULT EDUCATION AND FAMILY LITERACY PROGRAMS

``SEC. 301. SHORT TITLE.

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

``SEC. 302. STATEMENT OF PURPOSE.

    ``It is the purpose of this title to assist States and outlying 
areas to provide--
            ``(1) to adults, on a voluntary basis, the basic 
        educational skills necessary for employment and self-
        sufficiency; and
            ``(2) to adults who are parents, on a voluntary basis, the 
        educational skills necessary to be full partners in the 
        educational development of their children.

``SEC. 303. DEFINITION.

    ``For purposes of this title:
            ``(1) Adult education.--The term `adult education' means 
        services or instruction below the postsecondary level for 
        individuals--
                    ``(A) who have attained 16 years of age;
                    ``(B) who are not enrolled or required to be 
                enrolled in secondary school under State law; and
                    ``(C) who--
                            ``(i) lack sufficient mastery of basic 
                        educational skills to enable the individuals to 
                        function effectively in society;
                            ``(ii) do not have a certificate of 
                        graduation from a school providing secondary 
                        education and who have not achieved an 
                        equivalent level of education; or
                            ``(iii) are unable to speak, read, or write 
                        the English language.
            ``(2) Adult education and literacy activities.--The term 
        `adult education and literacy activities' has the meaning given 
        such term in section 4 of the Employment, Training, and 
        Literacy Enhancement Act.
            ``(3) Community-based organization.--The term `community-
        based organization' has the meaning given such term in section 
        4 of the Employment, Training, and Literacy Enhancement Act.
            ``(4) Direct and equitable access.--The term `direct and 
        equitable access', when used with respect to the requirement in 
        section 313(c)(2), means that--
                    ``(A) all eligible providers are given the same 
                opportunity to apply for and receive funds under part 
                A; and
                    ``(B) the same announcement and application process 
                is used for all eligible providers.
            ``(5) Eligible agency.--The term `eligible agency' means--
                    ``(A) the individual, entity, or agency in a State 
                or an outlying area responsible for administering or 
                setting policies for adult education and literacy 
                services in such State or outlying area pursuant to the 
                law of the State or outlying area; or
                    ``(B) if no individual, entity, or agency is 
                responsible for administering or setting such policies 
                pursuant to the law of the State or outlying area, the 
                individual, entity, or agency in a State or outlying 
                area responsible for administering or setting policies 
                for adult education and literacy services in such State 
                or outlying area on the date of the enactment of the 
                Employment, Training, and Literacy Enhancement Act of 
                1997.
            ``(6) Eligible provider.--The term `eligible provider', 
        used with respect to adult education and literacy activities 
        described in section 314(b), means a provider determined to be 
        eligible for assistance in accordance with section 313.
            ``(7) English literacy program.--The term `English literacy 
        program' has the meaning given such term in section 4 of the 
        Employment, Training, and Literacy Enhancement Act.
            ``(8) Family literacy services.--The term `family literacy 
        services' has the meaning given such term in section 4 of the 
        Employment, Training, and Literacy Enhancement Act.
            ``(9) Individual of limited english proficiency.--The term 
        `individual of limited English proficiency' has the meaning 
        given such term in section 4 of the Employment, Training, and 
        Literacy Enhancement Act.
            ``(10) Individual with a disability.--The terms `individual 
        with a disability' and `individuals with disabilities' have the 
        meaning given such terms in section 4 of the Employment, 
        Training, and Literacy Enhancement Act.
            ``(11) Literacy.--The term `literacy' has the meaning given 
        such term in section 4 of the Employment, Training, and 
        Literacy Enhancement Act.
            ``(12) Local educational agency.--The term `local 
        educational agency' has the meaning given such term in section 
        14101 of the Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 8801).
            ``(13) Outlying area.--The term `outlying area' has the 
        meaning given such term in section 4 of the Employment, 
        Training, and Literacy Enhancement Act.
            ``(14) Postsecondary educational institution.--The term 
        `postsecondary educational institution' has the meaning given 
        such term in section 4 of the Employment, Training, and 
        Literacy Enhancement Act.
            ``(15) Secretary.--The term `Secretary' means the Secretary 
        of Education.
            ``(16) State.--The term `State' has the meaning given such 
        term in section 4 of the Employment, Training, and Literacy 
        Enhancement Act.

``SEC. 304. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated to carry 
out this title such sums as may be necessary for fiscal years 1998 
through 2003.
    ``(b) Reservation of Funds for National Leadership Activities.--For 
any fiscal year, the Secretary shall reserve--
            ``(1) 1.5 percent of the amount appropriated under 
        subsection (a) (but not more than $6,500,000) to carry out 
        section 321; and
            ``(2) 1.5 percent of the amount appropriated under 
        subsection (a) (but not more than $6,500,000) to establish and 
        carry out the program of national leadership and evaluation 
        activities described in section 322.

``SEC. 305. HOME SCHOOLS.

    ``Nothing in this title shall be construed to affect home schools, 
nor to compel a parent engaged in home schooling to participate in an 
English literacy program, family literacy services, or adult education.

                 ``PART A--GRANTS TO ELIGIBLE AGENCIES

``SEC. 311. AUTHORITY TO MAKE GRANTS.

    ``(a) In General.--In the case of each eligible agency that in 
accordance with section 101 of the Employment, Training, and Literacy 
Enhancement Act submits to the Secretary a plan, the Secretary shall 
make a grant for each fiscal year for which such plan is in effect to 
the eligible agency for the purpose specified in subsection (b). The 
grant shall consist of the initial and additional allotments determined 
for the eligible agency under section 312.
    ``(b) Purpose of Grants.--The Secretary may make a grant under 
subsection (a) only if the applicant involved agrees to expend the 
grant for adult education and literacy activities in accordance with 
the provisions of this part.

``SEC. 312. ALLOTMENTS.

    ``(a) Initial Allotments.--From the sums available for the purpose 
of making grants under this part for any fiscal year, the Secretary 
shall allot to each eligible agency that in accordance with section 101 
of the Employment, Training, and Literacy Enhancement Act submits to 
the Secretary a plan for the year an initial amount as follows:
            ``(1) $100,000, in the case of an eligible agency of 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.
            ``(2) $250,000, in the case of any other eligible agency.
    ``(b) Additional Allotments.--
            ``(1) In general.--From the remainder available for the 
        purpose of making grants under this part for any fiscal year 
        after the application of subsection (a), the Secretary shall 
        allot to each eligible agency that receives an initial 
        allotment under such subsection an additional amount that bears 
        the same relationship to such remainder as the number of 
        qualifying adults in the State or outlying area of the agency 
        bears to the number of such adults in all States and outlying 
        areas.
            ``(2) Qualifying adult.--For purposes of this subsection, 
        the term `qualifying adult' means an adult who--
                    ``(A) is at least 16 years of age, but less than 61 
                years of age;
                    ``(B) is beyond the age of compulsory school 
                attendance under the law of the State or outlying area;
                    ``(C) does not have a certificate of graduation 
                from a school providing secondary education and has not 
                achieved an equivalent level of education; and
                    ``(D) is not currently enrolled in secondary 
                school.
    ``(c) Special Rule.--
            ``(1) In general.--Using funds not to exceed the amount 
        appropriated and reserved under the Adult Education Act for 
        fiscal year 1997 for the Republic of the Marshall Islands, the 
        Federated States of Micronesia, and the Republic of Palau, the 
        Secretary shall award grants, from funds made available under 
        subsections (a) and (b), 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 part 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, 2001.
            ``(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.
    ``(d) Hold-Harmless.--
            ``(1) In general.--Notwithstanding subsection (a)--
                    ``(A) for fiscal year 1998, no eligible agency 
                shall receive an allotment that is less than 90 percent 
                of the payments made to the State of the agency for 
                fiscal year 1997 for programs for which funds were 
                authorized to be appropriated under section 313 of the 
                Adult Education Act (as such Act was in effect on the 
                day before the date of the enactment of the Employment, 
                Training, and Literacy Enhancement Act of 1997); and
                    ``(B) for fiscal year 1999 and each succeeding 
                fiscal year, no eligible agency shall receive an 
                allotment that is less than 90 percent of the amount 
                the agency received for the preceding fiscal year for 
                programs under this Act.
            ``(2) Ratable reduction.--If for any fiscal year the amount 
        available for allotment under this section is insufficient to 
        satisfy the provisions of paragraph (1), the Secretary shall 
        ratably reduce the payments to all eligible agencies, as 
        necessary.
    ``(e) Reallotment.--The portion of any eligible agency's allotment 
under subsection (a) or (b) for a fiscal year that the Secretary 
determines will not be required for the period such allotment is 
available for carrying out activities under this part, shall be 
available for reallotment from time to time, on such dates during such 
period as the Secretary shall fix, to other eligible agencies in 
proportion to the original allotments to such agencies under such 
subsection for such year.

``SEC. 313. USE OF FUNDS.

    ``(a) In General.--Of the sum that is made available under this 
part to an eligible agency for any program year--
            ``(1) not less than 85 percent shall be made available to 
        award grants in accordance with this section to carry out adult 
        education and literacy activities; and
            ``(2) not more than 15 percent shall be made available to 
        carry out activities described in section 314(a), of which not 
        more than 5 percentage points, or $50,000, whichever is 
        greater, shall be made available for administrative expenses at 
        the State level (or the level of the outlying area).
    ``(b) Grants.--
            ``(1) In general.--Except as provided in paragraph (2), 
        from the amount made available to an eligible agency for adult 
        education and literacy under subsection (a)(1) for a program 
        year, such agency shall award grants, on a competitive basis, 
        to local educational agencies, correctional education agencies, 
        community-based organizations of demonstrated effectiveness, 
        volunteer literacy organizations, libraries, public or private 
        nonprofit agencies, postsecondary educational institutions, 
        public housing authorities, and other nonprofit institutions, 
        that have the ability to provide literacy services to adults 
        and families, or consortia of agencies, organizations, or 
        institutions described in this subsection, to enable such 
        agencies, organizations, institutions, and consortia to carry 
        out adult education and literacy activities.
            ``(2) Consortia.--An eligible agency may award a grant 
        under this section to a consortium that includes a provider 
        described in paragraph (1) and a for-profit agency, 
        organization, or institution, if such agency, organization, or 
        institution--
                    ``(A) can make a significant contribution to 
                carrying out the objectives of this title; and
                    ``(B) enters into a contract with such provider to 
                carry out adult education and literacy activities.
    ``(c) Grant Requirements.--
            ``(1) Required local activities.--An eligible agency shall 
        require that each provider receiving a grant under this section 
        use the grant in accordance with section 314(b).
            ``(2) Equitable access.--Each eligible agency awarding a 
        grant under this section for adult education and literacy 
        activities shall ensure that the providers described in 
        subsection (b) will be provided direct and equitable access to 
        all Federal funds provided under this section.
            ``(3) Special rule.--Each eligible agency awarding a grant 
        under this section shall not use any funds made available under 
        this title for adult education and literacy activities for the 
        purpose of supporting or providing programs, services, or 
        activities for individuals who are not individuals described in 
        subparagraphs (A) and (B) of section 303(1), except that such 
        agency may use such funds for such purpose if such programs, 
        services, or activities are related to family literacy 
        services.
            ``(4) Considerations.--In awarding grants under this 
        section, the eligible agency shall consider--
                    ``(A) the degree to which the provider will 
                establish measurable goals for client outcomes, 
                including the core indicators of performance pertaining 
                to adult education set forth in section 154 of the 
                Employment, Training, and Literacy Enhancement Act, 
                that are tied to challenging State performance 
                standards for literacy proficiency;
                    ``(B) the past effectiveness of a provider in 
                improving the literacy skills of adults and families, 
                and, after the 1-year period beginning with the 
                adoption of a State's core indicators and benchmarks 
                under the Employment, Training, and Literacy 
                Enhancement Act, the success of a provider receiving 
                funding under this Act in meeting or exceeding such 
                benchmarks, especially with respect to those adults 
                with the lowest levels of literacy;
                    ``(C) the degree to which the program is staffed by 
                well-trained instructors and administrators;
                    ``(D) the degree to which the provider will 
                coordinate with other available resources in the 
                community;
                    ``(E) the commitment of the provider to serve 
                individuals in the community who are most in need of 
                literacy services, including individuals who are low 
                income, who have minimal literacy skills, or both;
                    ``(F) whether or not the program is of sufficient 
                intensity and duration for participants to achieve 
                substantial learning gains and uses instructional 
                practices, such as phonemic awareness and systematic 
                phonics, that research has proven to be effective in 
                teaching individuals to read; and
                    ``(G) the degree to which the provider will offer 
                flexible schedules and necessary support services (such 
                as child care and transportation) to enable 
                individuals, including individuals with disabilities or 
                other special needs, to participate in adult education 
                and literacy activities.
    ``(d) Local Administrative Cost Limits.--
            ``(1) In general.--Except as provided in paragraph (2), of 
        the funds provided under this section by an eligible agency to 
        a provider described in subsection (b), not less than 95 
        percent shall be expended for provision of adult education and 
        literacy activities. The remainder shall be used for planning, 
        administration, personnel development, and interagency 
        coordination.
            ``(2) Special rule.--In cases where the cost limits 
        described in paragraph (1) will be too restrictive to allow for 
        adequate planning, administration, personnel development, and 
        interagency coordination supported under this section, the 
        eligible agency shall negotiate with the provider described in 
        subsection (b) in order to determine an adequate level of funds 
        to be used for noninstructional purposes.

``SEC. 314. ADULT EDUCATION AND LITERACY ACTIVITIES.

    ``(a) Permissible Agency Activities.--An eligible agency may use 
funds made available to the eligible agency under section 313(a)(2) for 
activities that may include--
            ``(1) the establishment or operation of professional 
        development programs to improve the quality of instruction 
        provided pursuant to local activities required under subsection 
        (b), including instruction incorporating phonemic awareness and 
        systematic phonics and instruction provided by volunteers or by 
        personnel of a State or outlying area;
            ``(2) the provision of technical assistance to eligible 
        providers of activities authorized under this section;
            ``(3) the provision of technology assistance, including 
        staff training, to eligible providers of activities authorized 
        under this section to enable the providers to improve the 
        quality of such activities;
            ``(4) the support of State or regional networks of literacy 
        resource centers;
            ``(5) the monitoring and evaluation of the quality of, and 
        the improvement in, activities and services authorized under 
        this section;
            ``(6) incentives for--
                    ``(A) program coordination and integration; and
                    ``(B) performance awards;
            ``(7) developing and disseminating curricula, including 
        curricula incorporating phonemic awareness <plus-minus>and 
        systematic phonics;
            ``(8) other activities of statewide significance that 
        promote the purposes of this title; and
            ``(9) the provision of support services, such as 
        transportation, child care, and other assistance designed to 
        increase rates of enrollment in, and successful completion of, 
        adult education and literacy activities, to adults enrolled in 
        such activities.
    ``(b) Required Local Activities.--The eligible agency shall require 
that each eligible provider receiving a grant under section 313 use the 
grant to establish or operate 1 or more programs that provide 
instruction or services in 1 or more of the following categories:
            ``(1) Adult education and literacy services, including 
        services provided on the work site.
            ``(2) Family literacy services.
            ``(3) English literacy programs.
    ``(c) State-Imposed Requirements.--Whenever a State implements any 
rule or policy relating to the administration or operation of a program 
authorized under this title that has the effect of imposing a 
requirement that is not imposed under Federal law (including any rule 
or policy based on a State interpretation of a Federal statute, 
regulation, or guideline), it shall identify, to eligible providers, 
the rule or policy as being State-imposed.

``SEC. 315. FISCAL REQUIREMENTS AND RESTRICTIONS RELATED TO USE OF 
              FUNDS.

    ``(a) Supplement not Supplant.--Funds made available under this 
part for adult education and literacy activities shall supplement, and 
may not supplant, other public funds expended to carry out activities 
described in section 314.
    ``(b) Maintenance of Effort.--
            ``(1) In general.--
                    ``(A) Determination.--An eligible agency may 
                receive funds under this Act for any fiscal year if the 
                Secretary finds that the fiscal effort per student or 
                the aggregate expenditures of such eligible agency for 
                adult education and literacy, in the second preceding 
                fiscal year, was not less than 90 percent of the fiscal 
                effort per student or the aggregate expenditures of 
                such eligible agency for adult education and literacy, 
                in the third preceding fiscal year.
                    ``(B) Proportionate reduction.--Subject to 
                paragraphs (2), (3), and (4), for any program year with 
                respect to which the Secretary determines under 
                subparagraph (A) that the fiscal effort and the 
                aggregate expenditures of an eligible agency for the 
                preceding program year were less than such effort and 
                expenditures for the second preceding program year, the 
                Secretary--
                            ``(i) shall determine the percentage 
                        decreases in such effort and in such 
                        expenditures; and
                            ``(ii) shall decrease the payment made 
                        under this part for such program year to the 
                        agency for adult education and literacy 
                        activities by the lesser of such percentages.
            ``(2) Computation.--In computing the fiscal effort and 
        aggregate expenditures under paragraph (1), the Secretary shall 
        exclude capital expenditures and special one-time project 
        costs.
            ``(3) Decrease in federal support.--If the amount made 
        available for adult education and literacy activities under 
        this part for a fiscal year is less than the amount made 
        available for adult education and literacy activities under 
        this part for the preceding fiscal year, then the fiscal effort 
        per student and the aggregate expenditures of an eligible 
        agency required in order to avoid a reduction under paragraph 
        (1)(B) shall be decreased by the same percentage as the 
        percentage decrease in the amount so made available.
            ``(4) Waiver.--The Secretary may waive the requirements of 
        this subsection for 1 fiscal year only, if the Secretary 
        determines that a waiver would be 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 of the eligible agency. If the Secretary 
        grants a waiver under the preceding sentence for a fiscal year, 
        the level of effort required under paragraph (1) shall not be 
        reduced in the subsequent fiscal year because of the waiver.
    ``(c) Expenditures of Non-Federal Funds for Adult Education and 
Literacy Activities.--For any program year for which a grant is made to 
an eligible agency under this part, the eligible agency shall expend, 
on programs and activities relating to adult education and literacy 
activities, an amount, derived from sources other than the Federal 
Government, equal to 25 percent of the amount made available to the 
eligible agency under this part for adult education and literacy 
activities.

                      ``PART B--NATIONAL PROGRAMS

``SEC. 321. NATIONAL INSTITUTE FOR LITERACY.

    ``(a) Purpose.--The National Institute for Literacy shall--
            ``(1) provide national leadership with respect to literacy 
        in the United States;
            ``(2) coordinate literacy services; and
            ``(3) serve as a national resource for adult education and 
        family literacy by providing the best and most current 
        information available, including the work of the National 
        Institute of Child Health and Human Development in the area of 
        phonemic awareness and systematic phonics, and supporting the 
        creation of new ways to offer services of proven effectiveness.
    ``(b) Establishment.--
            ``(1) In general.--There is established the National 
        Institute for Literacy (in this section referred to as the 
        `Institute'). The Institute shall be administered under the 
        terms of an interagency agreement entered into by the Secretary 
        of Education with the Secretary of Labor and the Secretary of 
        Health and Human Services (in this section referred to as the 
        `Interagency Group'). The Interagency Group may include in the 
        Institute any research and development center, institute, or 
        clearinghouse established within the Department of Education, 
        the Department of Labor, or the Department of Health and Human 
        Services whose purpose is determined by the Interagency Group 
        to be related to the purpose of the Institute.
            ``(2) Offices.--The Institute shall have offices separate 
        from the offices of the Department of Education, the Department 
        of Labor, and the Department of Health and Human Services.
            ``(3) Board recommendations.--The Interagency Group shall 
        consider the recommendations of the National Institute for 
        Literacy Advisory Board (in this section referred to as the 
        `Board') established under subsection (d) in planning the goals 
        of the Institute and in the implementation of any programs to 
        achieve such goals.
            ``(4) Daily operations.--The daily operations of the 
        Institute shall be carried out by the Director of the Institute 
        appointed under subsection (g).
    ``(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--
                    ``(A) to establish, and make accessible, 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 instruction in phonemic awareness and 
                        systematic phonics and the integration of 
                        literacy and basic skills 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) to coordinate support for the provision of 
                literacy and basic skills services across Federal 
                agencies and at the State and local levels;
                    ``(C) to coordinate the support of reliable and 
                replicable research and development on literacy and 
                basic skills in families and adults across Federal 
                agencies, especially with the Office of Educational 
                Research and Improvement in the Department of 
                Education, and to carry out basic and applied research 
                and development on topics that are not being 
                investigated by other organizations or agencies, such 
                as the special literacy needs of individuals with 
                learning disabilities;
                    ``(D) to collect and disseminate information on 
                methods of advancing literacy that show great promise, 
                including phonemic awareness and systematic phonics 
                based on the work of the National Institute of Child 
                Health and Human Development;
                    ``(E) funding 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;
                            ``(ii) carrying out evaluations of the 
                        effectiveness of adult education and literacy 
                        activities;
                            ``(iii) enhancing the capacity of State and 
                        local organizations to provide literacy 
                        services; and
                            ``(iv) serving as a reciprocal link between 
                        the Institute and providers of adult education 
                        and literacy activities for the purpose of 
                        sharing information, data, research, expertise, 
                        and literacy resources;
                    ``(F) to coordinate and share information with 
                national organizations and associations that are 
                interested in literacy and workforce development;
                    ``(G) to inform the development of policy with 
                respect to literacy and basic skills; and
                    ``(H) to 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 agreements.--The Institute may 
        make 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) Fellowships.--The Institute, in consultation with the 
        Board, may award fellowships, with such stipends and allowances 
        as the Director considers necessary, to outstanding individuals 
        pursuing careers in adult education or literacy in the areas of 
        instruction, management, reliable and replicable research, or 
        innovation.
            ``(2) Use of fellowships.--Fellowships awarded under this 
        subsection shall be used, under the auspices of the Institute, 
        to engage in research, education, training, technical 
        assistance, or other activities to advance the field of adult 
        education or literacy, including the training of volunteer 
        literacy providers at the national, State, or local level.
            ``(3) Interns and volunteers.--The Institute, in 
        consultation with the Board, may award paid and unpaid 
        internships to individuals seeking to assist the Institute in 
        carrying out its mission. Notwithstanding section 1342 of title 
        31, United States Code, the Institute may accept and use 
        voluntary and uncompensated services as the Institute 
        determines necessary.
    ``(e) National Institute for Literacy Advisory Board.--
            ``(1) Establishment.--
                    ``(A) In general.--There is established a National 
                Institute for Literacy Advisory Board. The Board shall 
                consist of 10 individuals, appointed by the Interagency 
                Group, from individuals who--
                            ``(i) are not otherwise officers or 
                        employees of the Federal Government; and
                            ``(ii) are representative of entities or 
                        groups described in subparagraph (B).
                    ``(B) Entities or groups described.--The entities 
                or groups referred to in subparagraph (A) are--
                            ``(i) literacy organizations and providers 
                        of literacy services, including--
                                    ``(I) nonprofit providers of 
                                literacy services;
                                    ``(II) providers of programs and 
                                services involving English language 
                                instruction; and
                                    ``(III) providers of services 
                                receiving assistance under this title;
                            ``(ii) businesses that have demonstrated 
                        interest in literacy programs;
                            ``(iii) literacy students;
                            ``(iv) experts in the area of literacy 
                        research;
                            ``(v) State and local governments;
                            ``(vi) representatives of employees; and
                            ``(vii) State directors of adult education.
            ``(2) Duties.--The Board--
                    ``(A) shall make recommendations concerning the 
                appointment of the Director and staff of the Institute;
                    ``(B) shall provide independent advice on the 
                operation of the Institute; and
                    ``(C) shall receive reports from the Interagency 
                Group and the Director.
            ``(3) Federal advisory committee act.--Except as otherwise 
        provided, the Board established by this subsection shall be 
        subject to the provisions of the Federal Advisory Committee Act 
        (5 U.S.C. App.).
            ``(4) Terms.--
                    ``(A) In general.--Each member of the Board shall 
                be appointed for a term of 3 years, except that the 
                initial terms for members may be 1, 2, or 3 years in 
                order to establish a rotation in which \1/3\ of the 
                members are selected each year. Any such member may be 
                appointed for not more than 2 consecutive terms.
                    ``(B) Vacancy appointments.--Any member appointed 
                to fill a vacancy occurring before the expiration of 
                the term for which the member's predecessor was 
                appointed shall be appointed only for the remainder of 
                that term. A member may serve after the expiration of 
                that member's term until a successor has taken office. 
                A vacancy in the Board shall be filled in the manner in 
                which the original appointment was made. A vacancy in 
                the Board shall not affect the powers of the Board.
            ``(5) Quorum.--A majority of the members of the Board shall 
        constitute a quorum but a lesser number may hold hearings. Any 
        recommendation of the Board may be passed only by a majority of 
        the Board's members present.
            ``(6) Election of officers.--The Chairperson and Vice 
        Chairperson of the Board shall be elected by the members of the 
        Board. The term of office of the Chairperson and Vice 
        Chairperson shall be 2 years.
            ``(7) Meetings.--The Board shall meet at the call of the 
        Chairperson or a majority of the members of the Board.
    ``(f) Gifts, Bequests, and Devises.--The Institute may accept, 
administer, and use gifts or donations of services, money, or property, 
both real and personal.
    ``(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 Federal Government.
    ``(h) Director.--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 maximum 
rate payable under section 5376 of title 5, United States Code.
    ``(j) Experts and Consultants.--The Board and 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 report biennially to 
the committees of the United States House of Representatives and the 
Senate having jurisdiction over this title. Each report submitted under 
this subsection shall include--
            ``(1) a comprehensive and detailed description of the 
        Institute's operations, activities, financial condition, and 
        accomplishments in the field of literacy for the period covered 
        by the report;
            ``(2) a description of how plans for the operation of the 
        Institute for the succeeding two fiscal years will facilitate 
        achievement of the goals of the Institute and the goals of the 
        literacy programs within the Department of Education, the 
        Department of Labor, and the Department of Health and Human 
        Services; and
            ``(3) any additional minority, or dissenting views 
        submitted by members of the Board.
    ``(l) Funding.--Any amounts appropriated to the Secretary of 
Education, the Secretary of Labor, or the Secretary of Health and Human 
Services for purposes that the Institute is authorized to perform under 
this section may be provided to the Institute for such purposes.

``SEC. 322. NATIONAL LEADERSHIP ACTIVITIES.

    ``The Secretary shall establish and carry out a program of national 
leadership activities to enhance the quality of adult education and 
family literacy programs nationwide. Such activities may include the 
following:
            ``(1) Providing technical assistance to recipients of 
        assistance under part A in developing and using benchmarks and 
        performance measures for improvement of adult education and 
        literacy activities, including family literacy services.
            ``(2) Awarding grants, on a competitive basis, to a 
        postsecondary educational institution, a public or private 
        organization or agency, or a consortium of such institutions, 
        organizations, or agencies to carry out research and technical 
        assistance--
                    ``(A) for the purpose of developing, improving, and 
                identifying the most successful methods and techniques 
                for addressing the education needs of adults, including 
                instructional practices using phonemic awareness and 
                systematic phonics based on the work of the National 
                Institute of Child Health and Human Development; and
                    ``(B) to increase the effectiveness of, and improve 
                the quality of, adult education and literacy 
                activities, including family literacy services.
            ``(3) Providing for the conduct of an independent 
        evaluation and assessment of adult education and literacy 
        activities, through studies and analyses conducted 
        independently through grants and contracts awarded on a 
        competitive basis. Such evaluation and assessment shall include 
        descriptions of--
                    ``(A) the effect of benchmarks, performance 
                measures, and other measures of accountability on the 
                delivery of adult education and literacy activities, 
                including family literacy services;
                    ``(B) the extent to which the adult education and 
                literacy activities, including family literacy 
                services, increase the literacy skills of adults (and 
                of children, in the case of family literacy services), 
                lead the participants in such activities to involvement 
                in further education and training, enhance the 
                employment and earnings of such participants, and, if 
                applicable, lead to other positive outcomes, such as 
                reductions in recidivism in the case of prison-based 
                adult education and literacy services;
                    ``(C) the extent to which the provision of support 
                services to adults enrolled in adult education and 
                family literacy programs increases the rates of 
                enrollment in, and successful completion of, such 
                programs; and
                    ``(D) the extent to which eligible agencies have 
                distributed funds under part A to meet the needs of 
                adults through community-based organizations.
            ``(4) Carrying out demonstration programs, replicating 
        model programs, disseminating best practices information, and 
        providing technical assistance, for the purposes of developing, 
        improving, and identifying the most successful methods and 
        techniques for providing the activities assisted under part A, 
        and based on scientific evidence, where available.
            ``(5) Other activities designed to enhance the quality of 
        adult education and literacy nationwide, such as providing 
        incentive grants to States consistent with section 156 of the 
        Employment, Training, and Literacy Enhancement Act.

``SEC. 323. BUY-AMERICAN REQUIREMENTS.

    ``(a) Compliance With Buy American Act.--None of the funds made 
available in this Act may be expended by an entity unless the entity 
agrees that in expending the funds the entity will comply with the Buy 
American Act (41 U.S.C. 10a-10c).
    ``(b) Sense of Congress; Requirement Regarding Notice.--
            ``(1) Purchase of american-made equipment and products.--In 
        the case of any equipment or product that may be authorized to 
        be purchased with financial assistance provided using funds 
        made available in this Act, it is the sense of the Congress 
        that entities receiving the assistance should, in expending the 
        assistance, purchase only American-made equipment and products.
            ``(2) Notice to recipients of assistance.--In providing 
        financial assistance using funds made available in this Act, 
        the head of each Federal agency shall provide to each recipient 
        of the assistance a notice describing the statement made in 
        paragraph (1) by the Congress.
    ``(c) Prohibition of Contracts With Persons Falsely Labeling 
Products as Made in America.--If it has been finally determined by a 
court or Federal agency that any person intentionally affixed a label 
bearing a `Made in America' inscription, or any inscription with the 
same meaning, to any product sold in or shipped to the United States 
that is not made in the United States, the person shall be ineligible 
to receive any contract or subcontract made with funds made available 
in this Act, pursuant to the debarment, suspension, and ineligibility 
procedures described in sections 9.400 through 9.409 of title 48, Code 
of Federal Regulations.''.

SEC. 503. REPEAL OF NATIONAL LITERACY ACT OF 1991.

    The National Literacy Act of 1991 (Public Law 102-73; 105 Stat. 
333) is hereby repealed.

SEC. 504. CONFORMING AMENDMENTS.

    (a) Refugee Education Assistance Act.--Subsection (b) of section 
402 of the Refugee Education Assistance Act of 1980 (8 U.S.C. 1522 
note) is hereby repealed.
    (b) Elementary and Secondary Education Act of 1965.--
            (1) Section 1206 of esea.--Section 1206(a)(1)(A) of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        6366(a)(1)(A)) is amended by striking ``an adult basic 
        education program'' and inserting ``adult education and 
        literacy activities''.
            (2) 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 303 of the Adult 
        Education and Family Literacy Act;''.
            (3) 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 303 of the Adult 
        Education and Family Literacy Act.''.

                   TITLE VI--MISCELLANEOUS PROVISIONS

SEC. 601. REPEALERS.

    (a) Amendments to the Wagner-Peyser Act.--Section 601 of the Job 
Training Partnership Act is hereby repealed.
    (b) Amendments to Part C of Title IV of the Social Security Act.--
Section 602 of the Job Training Partnership Act is hereby repealed.
    (c) Earnings Disregard.--Section 603 of the Job Training 
Partnership Act is hereby repealed.
    (d) Savings Provision.--The repeals made by subsections (a), (b), 
and (c), of any provision of law described in any such subsection that 
amended or repealed another provision of law does not in any way affect 
that amendment or repeal.

SEC. 602. CONFORMING AMENDMENTS.

    (a) Enforcement of Military Selective Service Act.--Section 604 of 
the Job Training Partnership Act (29 U.S.C. 1504) is amended--
            (1) by redesignating such section as section 182 of such 
        Act; and
            (2) by inserting such section after section 181 of such 
        Act.
    (b) State Job Bank Systems.--Section 605 of such Act (29 U.S.C. 
1505) is amended--
            (1) by striking subsection (a);
            (2) in subsection (b), by striking ``shall make such'' and 
        inserting ``may make'';
            (3) by redesignating subsections (b) and (c) as subsections 
        (a) and (b), respectively;
            (4) by redesignating such section as section 466 of such 
        Act; and
            (5) by adding such section after section 465 of such Act.
    (c) State Labor Market Information Programs.--Section 125 of such 
Act (29 U.S.C. 1535) is amended--
            (1) by redesignating such section as section 467; and
            (2) by inserting such section after section 466.

    TITLE VII--AMENDMENTS TO STATE HUMAN RESOURCE INVESTMENT COUNCIL

SEC. 701. AMENDMENTS TO COUNCIL.

    (a) Establishment and Functions.--Section 701 of the Job Training 
Partnership Act (29 U.S.C. 1792) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) by striking ``shall review'' and 
                        inserting ``reviews''; and
                            (ii) by striking ``advise'' and inserting 
                        ``advises'';
                    (B) in paragraph (2), by striking ``shall advise'' 
                and inserting ``advises'';
                    (C) in paragraph (3), by striking ``shall carry'' 
                and inserting ``carries'';
                    (D) by striking paragraph (4);
                    (E) in paragraph (5), by striking ``may recommend'' 
                and inserting ``recommends'';
                    (F) in paragraph (6), to read as follows:
            ``(6) prepares and recommends to the Governor a strategy to 
        be included as part of the State plan under section 101 that 
        would accomplish the goals developed pursuant to paragraph 
        (4);'';
                    (G) in paragraph (7)--
                            (i) by striking ``may monitor'' and 
                        inserting ``monitors''; and
                            (ii) by striking the period at the end and 
                        inserting ``; and'';
                    (H) by adding at the end the following:
            ``(8) may serve as the collaborative process described in 
        section 102.''; and
                    (I) by redesignating paragraphs (5) through (8) (as 
                amended or added, as the case may be) as paragraphs (4) 
                through (7), respectively; and
            (2) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A), by striking ``(A) 
                        Except as provided in subparagraph (B), for 
                        purposes'' and inserting ``For purposes''; and
                            (ii) by striking subparagraph (B); and
                    (B) in paragraph (2)--
                            (i) by striking ``applicable Federal human 
                        resource programs'' and all that follows 
                        through ``may include'' and inserting 
                        ``applicable Federal human resource programs 
                        may include'';
                            (ii) in clause (v), by striking the ``and'' 
                        at the end;
                            (iii) in clause (vii)--
                                    (I) by adding at the end before the 
                                semicolon the following: ``and title I 
                                of the Personal Responsibility and Work 
                                Opportunity Reconciliation Act of 
                                1996''; and
                                    (II) by redesignating such clause 
                                as clause (vi);
                            (iv) in subparagraph (B)--
                                    (I) by striking ``may not include 
                                programs authorized under''; and
                                    (II) by redesignating such 
                                subparagraph as clause (vii); and
                            (v) by redesignating clauses (i) through 
                        (vii) as subparagraphs (A) through (G), 
                        respectively, and moving the margin for each 
                        such subparagraph two ems to the left.
    (b) Composition.--Section 702 of such Act (29 U.S.C. 1792a) is 
amended--
            (1) by striking subsections (a), (b), and (c); and
            (2) by inserting the following:
    ``Each State Council shall be composed of the individuals and 
entities described in section 102(a).''.
    (c) Administration.--Section 703 of such Act (29 U.S.C. 1792b) is 
amended--
            (1) in subsection (a)(2)--
                    (A) by inserting ``for State administrative 
                expenses'' after ``funds otherwise available''; and
                    (B) by striking ``, including funds available'' and 
                all that follows through ``such Act'';
            (2) by striking subsection (c); and
            (3) by redesignating subsection (d) as subsection (c).

SEC. 702. TRANSFER OF COUNCIL.

    Title VII of the Job Training Partnership Act (29 U.S.C. 1792 et 
seq.), as amended by section 701, is transferred to the end of part A 
of title I of such Act, as amended by section 111 of this Act.

SEC. 703. CONFORMING AMENDMENTS.

    (a) In General.--Title VII of the Job Training Partnership Act (29 
U.S.C. 1792 et seq.), as transferred to the end of part A of title I of 
such Act by section 702, is amended--
            (1) by amending the title heading to read as follows:

``SEC. 103. STATE HUMAN RESOURCE INVESTMENT COUNCIL.'';

            (2) by redesignating sections 701 through 703 as 
        subsections (a) through (c), respectively, of section 103 (as 
        redesignated by paragraph (1)) and conforming the subsection 
        headings and margins accordingly;
            (3) by redesignating each subsection, paragraph, and 
        subparagraph of sections 701 through 703 (as such sections 
        existed immediately prior to the amendments made by paragraph 
        (2)) as a paragraph, subparagraph, and clause, respectively, of 
        section 103 (as redesignated by paragraph (1)) and conforming 
        the headings and margins accordingly; and
            (4) in subsection (a)(2)(B) (as redesignated), by striking 
        ``paragraph (1)'' and inserting ``subparagraph (A)''.
    (b) Additional Amendment.--Section 103 of the Job Training 
Partnership Act, as redesignated by subsection (a)(2), is amended by 
striking ``title'' each place it appears (except in subsection 
(a)(2)(B)(vi) of such section) and inserting ``section''.

              TITLE VIII--AMENDMENTS TO WAGNER-PEYSER ACT

SEC. 801. DEFINITIONS.

    Section 2 of the Wagner-Peyser Act (29 U.S.C. 49a) is amended--
            (1) in paragraph (1), by striking ``Job Training 
        Partnership Act'' and inserting ``Employment, Training, and 
        Literacy Enhancement Act'';
            (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 development area' means a 
        local workforce development area designated under section 121 
        of the Employment, Training, and Literacy Enhancement Act;
            ``(3) the term `local workforce development board' means a 
        local workforce development board established under section 122 
        of the Employment, Training, and Literacy Enhancement Act;
            ``(4) the term `full service employment and training 
        delivery system' means a system established under section 123 
        of the Employment, Training, and Literacy Enhancement Act;''; 
        and
            (5) in paragraph (5) (as redesignated by paragraph (3)), by 
        striking the semicolon and inserting ``; and''.

SEC. 802. FUNCTIONS.

    (a) In General.--Section 3(a) of the Wagner-Peyser Act (29 U.S.C. 
49b(a)) is amended to read as follows:
    ``(a) The Secretary of Labor--
            ``(1) shall assist in the coordination and development of a 
        nationwide system of labor exchange services for the general 
        public, provided as part of the full service employment and 
        training delivery systems of the States;
            ``(2) shall 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) shall ensure, for individuals otherwise eligible to 
        receive unemployment compensation, the continuation of any 
        activities in which the individuals are required to participate 
        to receive the compensation.''.
    (b) Conforming Amendments.--Section 508(b) of the Unemployment 
Compensation Amendments of 1976 (42 U.S.C. 603a) 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. 803. 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. 804. APPROPRIATIONS.

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

SEC. 805. 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 development board'';
            (2) in subsection (c)(2)(B), to read as follows:
            ``(B) Title III of the Employment, Training, and Literacy 
        Enhancement Act.'';
            (3) in subsection (d), by striking ``Job Training 
        Partnership Act'' and inserting ``Employment, Training, and 
        Literacy Enhancement Act''; 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 
subsections (a) and (b) shall be provided as part of the full service 
employment and training delivery system established by the State.''.

SEC. 806. 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 101 of the Employment, Training, and Literacy Enhancement Act, 
detailed plans for carrying out the provisions of this Act within such 
State.'';
            (2) by striking subsections (b), (c), and (e); and
            (3) by redesignating subsection (d) as subsection (b).

SEC. 807. FEDERAL ADVISORY COUNCIL.

    Section 11 of the Wagner-Peyser Act (29 U.S.C. 49j) is hereby 
repealed.

SEC. 808. 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. 809. EFFECTIVE DATE.

    The amendments made by this title shall take effect on July 1, 
1998.

             TITLE IX--TECHNICAL AND CONFORMING AMENDMENTS

       Subtitle A--Amendments to the Job Training Partnership Act

SEC. 901. SHORT TITLE; TABLE OF CONTENTS.

    Section 1 of the Job Training Partnership Act (29 U.S.C. 1501 note) 
is amended to read as follows:

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

    ``(a) Short Title.--This Act may be cited as the `Employment, 
Training, and Literacy Enhancement Act'.
    ``(b) Table of Contents.--The table of contents of this Act is as 
follows:

``Sec. 1. Short title; table of contents.
``Sec. 2. Statement of purpose.
``Sec. 3. Authorization of appropriations.
``Sec. 4. Definitions.
          ``TITLE I--STATE AND LOCAL ADMINISTRATIVE PROVISIONS

               ``Part A--State Administrative Provisions

``Sec. 101. State plan.
``Sec. 102. Collaborative process.
``Sec. 103. State Human Resource Investment Council.
               ``Part B--Local Administrative Provisions

``Sec. 121. Local workforce development areas.
``Sec. 122. Local workforce development boards.
``Sec. 123. Full service employment and training delivery system.
``Sec. 124. Identification of training providers.
                ``Pa``subpart 1--general provisionsions
``Sec. 141. General program requirements.
``Sec. 142. Benefits.
``Sec. 143. Labor standards.
``Sec. 144. Grievance procedure.
``Sec. 145. Prohibition against Federal control of education.
``Sec. 146. Identification of additional imposed requirements.
``Sec. 147. Authority of State legislature.
``Sec. 148.``subpart 2--performance accountability provisions
``Sec. 151. Performance accountability system.
``Sec. 152. Indicators of performance.
``Sec. 153. State adjusted benchmarks.
``Sec. 154. Core indicators of performance.
``Sec. 155. Report on performance.
``Sec. 156. Incentive``subpart 3--other provisions
``Sec. 161. Program year.
``Sec. 162. Prompt allocation of funds.
``Sec. 163. Monitoring.
``Sec. 164. Fiscal controls; sanctions.
``Sec. 165. Reports; recordkeeping; investigations.
``Sec. 166. Administrative Adjudication.
``Sec. 167. Nondiscrimination.
``Sec. 168. Administrative provisions.
``Sec. 169. Utilization of services and facilities.
``Sec. 170. Obligational authority.
``Sec. 171. Limitation on certain costs.
``Sec. 172. Buy-American requirements.
                   ``Part D--Miscellaneous Provisions

``Sec. 181. Reference.
``Sec. 182. Enforcement of Military Selective Service Act.
 ``TITLE II--DISADVANTAGED YOUTH EMPLOYMENT AND TRAINING OPPORTUNITIES 
                                 GRANTS

``Sec. 201. Statement of purpose.
``Sec. 202. Authorization.
``Sec. 203. Allotment and allocation among States.
``Sec. 204. Allocation within States.
``Sec. 205. Eligibility for services.
``Sec. 206. Use of funds.
``Sec. 207. Selection of service providers.
``Sec. 208. Linkages.
    ``TITLE III--ADULT EMPLOYMENT AND TRAINING OPPORTUNITIES GRANTS

``Sec. 301. Purpose.
      ``Part A--Adult Employment and Training Opportunities Grants

``Sec. 311. Authorization.
``Sec. 312. Allotment among States.
``Sec. 313. Allocation within States.
``Sec. 314. Use of amounts.
                      ``Part B--National Programs

``Sec. 321. National emergency grants.
              ``TITLE IV--FEDERALLY ADMINISTERED PROGRAMS

  ``Part A--Employment and Training Programs for Native Americans and 
                    Migrant and Seasonal Farmworkers

``Sec. 401. Native American programs.
``Sec. 402. Migrant and seasonal farmworker program.
                          ``Part B--Job Corps

``Sec. 421. Statement of purpose.
``Sec. 422. Establishment of the Job Corps.
``Sec. 423. Individuals eligible for the Job Corps.
``Sec. 424. Screening and selection of applicants: general provisions.
``Sec. 425. Screening and selection: special limitations.
``Sec. 426. Enrollment and assignment.
``Sec. 427. Job Corps centers.
``Sec. 428. Program activities.
``Sec. 429. Allowances and support.
``Sec. 430. Standards of conduct.
``Sec. 431. Community participation.
``Sec. 432. Counseling and job placement.
``Sec. 433. Experimental and developmental projects and coordination 
                            with other programs.
``Sec. 433A. Job Corps centers for homeless families.
``Sec. 434. Advisory boards and committees.
``Sec. 435. Participation of the States.
``Sec. 436. Application of provisions of Federal law.
``Sec. 437. Special provisions.
``Sec. 438. General provisions.
``Sec. 439. Donations.
                ``Part C--Veterans' Employment Programs

``Sec. 441. Authorization of programs.
                     ``Part D--National Activities

``Sec. 451. Research, demonstration, evaluation, and capacity building.
``Sec. 452. Incentive grants.
``Sec. 453. Uniform reporting requirements.
                   ``Part E--Labor Market Information

``Sec. 461. Labor market information; availability of funds.
``Sec. 462. Cooperative labor market information program.
``Sec. 463. Special federal responsibilities.
``Sec. 464. National Occupational Information Coordinating Committee.
``Sec. 465. Job bank program.
``Sec. 466. State job bank systems.
``Sec. 467. State labor market information programs.''.

SEC. 902. DEFINITIONS.

    Section 4 of such Act (29 U.S.C. 1503), as amended by section 103, 
is further amended, as follows:
            (1) By striking the heading and the matter preceding 
        paragraph (1) and inserting the following:

``SEC. 4. DEFINITIONS.

    ``As used in this Act, the following definitions apply:''.
            (2) In paragraph (3), by striking ``The term'' and 
        inserting ``Area of substantial unemployment.--The term''.
            (3) In paragraph (7), by striking ``The term'' and 
        inserting ``Economic development agencies.--The term''.
            (4) In paragraph (8), by striking ``The term'' and 
        inserting ``Economically disadvantaged.--The term''.
            (5) In paragraph (9), by striking ``The term'' and 
        inserting ``Governor.--The term''.
            (6) In paragraph (12), by striking ``The term'' and 
        inserting ``Institution of higher education.--The term''.
            (7) In paragraph (13), by striking ``The term'' and 
        inserting ``Labor market area.--The term''.
            (8) In paragraph (14), by striking ``The term'' and 
        inserting ``Local educational agency.--The term''.
            (9) In paragraph (15), by striking ``The term'' and 
        inserting ``Low-income level.--The term''.
            (10) In paragraph (16), by striking ``The term'' and 
        inserting ``Lower living standard income level.--The term''.
            (11) In paragraph (17), by striking ``The term'' and 
        inserting ``Offender.--The term''.
            (12) In paragraph (18), by striking ``The term'' and 
        inserting ``Postsecondary institution.--The term''.
            (13) In paragraph (20), by striking ``The term'' and 
        inserting ``Public assistance.--The term''.
            (14) In paragraph (23), by striking ``The term'' and 
        inserting ``State educational agency.--The term''.
            (15) In paragraph (25), by striking ``The term'' and 
        inserting ``Unemployed individuals.--The term''.
            (16) In paragraph (26), by striking ``The term'' and 
        inserting ``Unit of general local government.--The term''.
            (17) In paragraph (28), by striking ``The term'' and 
        inserting ``Vocational education.--The term''.
            (18) In paragraph (29), by striking ``The term'' and 
        inserting ``Displaced homemaker.--The term''.
            (19) In paragraph (30), by striking ``The term'' and 
        inserting ``Nontraditional employment.--The term''.
            (20) In paragraph (31), by striking ``The term'' and 
        inserting ``Basic skills deficient.--The term''.
            (21) In paragraph (32), by striking ``The term'' and 
        inserting ``Case management.--The term''.
            (22) In paragraph (33), by striking ``The term'' and 
        inserting ``Citizenship skills.--The term''.
            (23) In paragraph (34), by striking ``The term'' and 
        inserting ``Family.--The term''.
            (24) In paragraph (37), by striking ``The term'' and 
        inserting ``Participant.--The term''.
            (25) In paragraph (38), by striking ``The term'' and 
        inserting ``School dropout.--The term''.
            (26) In paragraph (39), by striking ``The term'' and 
        inserting ``Termination.--The term''.
            (27) In paragraph (40), by striking ``The term'' and 
        inserting ``Youth corps program.--The term''.
            (28) By redesignating paragraphs (31), (32), (4), (33), 
        (5), (6), (29), (7), (8), (41), (42), (34), (43), (44), (9), 
        (45), (46), (10), (12), (13), (47), (48), (49), (14), (50), 
        (15), (16), (30), (17), (51), (52), (37), (18), (20), (53), 
        (54), (38), (21), (55), (22), (57), (56), (23), (58), (24), 
        (39), (25), (26), (27), (28), and (40) as paragraphs (4) 
        through (54), respectively.

SEC. 903. AMENDMENTS TO TITLE I.

    (a) Heading.--The heading of title I of the Job Training 
Partnership Act (29 U.S.C. 1501 et seq.) is amended to read as follows:

        ``TITLE I--STATE AND LOCAL ADMINISTRATIVE PROVISIONS''.

    (b) Part B.--Part B of title I of such Act (29 U.S.C. 1531 et 
seq.), as amended by this Act, is further amended in the heading of 
such part to read as follows:

              ``PART B--LOCAL ADMINISTRATIVE PROVISIONS''.

    (c) Part C.--
            (1) Headings.--Part C of title I of such Act (29 U.S.C. 
        1551 et seq.), as amended by this Act, is further amended--
                    (A) in the heading of such part to read as follows:

               ``PART C--PROGRAM AND FISCAL PROVISIONS'';

                    (B) by inserting after the heading for such part 
                the following:

                   ``Subpart 1--General Provisions'';

                    (C) by inserting after section 148, as amended by 
                this Act, the following:

         ``Subpart 2--Performance Accountability Provisions'';

                and
                    (D) by inserting after section 156 (as amended by 
                this Act) the following:

                    ``Subpart 3--Other Provisions''.

            (2) Section 141.--Section 141 of such Act (29 U.S.C. 1551), 
        as amended by this Act, is further amended--
                    (A) in the section heading to read as follows:

``SEC. 141. GENERAL PROGRAM REQUIREMENTS.'';

                and
                    (B)(i) by redesignating subsections (a), (b), (c), 
                (e), (g), (h), (j), and (l) through (t) as paragraphs 
                (1) through (16), respectively, and moving the margin 
                for each such paragraph two ems to the right; and
                    (ii) by redesignating each paragraph and 
                subparagraph of such subsections (a), (b), (c), (e), 
                (g), (h), (j), and (l) through (t) (as such subsections 
                existed before the amendment made by clause (i)) as a 
                subparagraph and clause, respectively.
            (3) Section 142.--Section 142 of such Act (29 U.S.C. 1552), 
        as amended by this Act, is further amended--
                    (A) in the section heading to read as follows:

``SEC. 142. BENEFITS.'';

                    (B) in subsection (a)(2) (as redesignated), by 
                striking ``References'' and inserting ``References.--
                References''; and
                    (C) in subsection (b), by striking ``Allowances'' 
                and inserting ``Additional Requirement.--Allowances''.
            (4) Section 145.--Section 145 of such Act (29 U.S.C. 1555) 
        is amended in the section heading to read as follows:

``SEC. 145. PROHIBITION AGAINST FEDERAL CONTROL OF EDUCATION.''.

            (5) Section 146.--Section 146 of such Act (as redesignated) 
        is amended--
                    (A) in the section heading to read as follows:

``SEC. 146. IDENTIFICATION OF ADDITIONAL IMPOSED REQUIREMENTS.'';

                and
                    (B) by striking ``service delivery area'' each 
                place it appears and inserting ``workforce development 
                area''.
            (6) Section 147.--Section 147 of such Act (as redesignated) 
        is amended in the section heading to read as follows:

``SEC. 147. AUTHORITY OF STATE LEGISLATURE.''.

            (7) Section 148.--Section 148 of such Act (as redesignated) 
        is amended in the section heading to read as follows:

``SEC. 148. INTERSTATE AGREEMENTS.''.

    (d) Part D.--
            (1) Heading.--Part D of title I of such Act is amended by 
        striking the heading for such part.
            (2) Section 161.--Section 161 of such Act (29 U.S.C. 1571), 
        as amended by this Act, is further amended--
                    (A) in the section heading to read as follows:

``SEC. 161. PROGRAM YEAR.'';

                    (B) in subsection (a), by striking ``(a)'' and 
                inserting the following:
    ``(a) Program Year.--''; and
                    (C) in subsection (b), by striking ``(b)'' and 
                inserting the following:
    ``(b) Availability.--''.
            (3) Section 162.--Section 162 of such Act (29 U.S.C. 1572), 
        as amended by this Act, is further amended--
                    (A) in the section heading to read as follows:

``SEC. 162. PROMPT ALLOCATION OF FUNDS.'';

                    (B) in subsection (a), by striking ``(a)'' and 
                inserting ``(a) Allotments and Allocations Based on 
                Latest Available Data.--'';
                    (C) in subsection (b), by striking ``(b)'' and 
                inserting ``(b) Publication in Federal Register 
                Relating to Mandatory Funds.--'';
                    (D) in subsection (c), by striking ``(c)'' and 
                inserting ``(c) Requirement for Funds Distributed by 
                Formula.--'';
                    (E) in subsection (d), by striking ``(d)'' and 
                inserting ``(d) Publication in Federal Register 
                Relating to Discretionary Funds.--''; and
                    (F) in subsection (e)--
                            (i) by striking ``(e)'' and inserting ``(e) 
                        Availability of Funds.--''; and
                            (ii) by striking ``service delivery area'' 
                        and inserting ``local workforce development 
                        area''.
            (4) Section 163.--Section 163 of such Act (29 U.S.C. 1573) 
        is amended--
                    (A) in the section heading to read as follows:

``SEC. 163. MONITORING.'';

                    (B) in subsection (a), by striking ``(a)'' and 
                inserting ``(a) In General.--'';
                    (C) in subsection (b), by striking ``(b)'' and 
                inserting ``(b) Investigations.--''; and
                    (D) in subsection (c), by striking ``(c)'' and 
                inserting ``(c) Additional Requirement.--''.
            (5) Section 164.--Section 164 of such Act (29 U.S.C. 1574) 
        is amended--
                    (A) in the section heading to read as follows:

``SEC. 164. FISCAL CONTROLS; SANCTIONS.'';

                    (B) in subsection (a)--
                            (i) by striking ``(a)(1)'' and inserting 
                        the following:
    ``(a) Establishment of Fiscal Controls by States.--
            ``(1) In general.--''; and
                            (ii) in paragraph (2), by striking ``(2)'' 
                        and inserting ``(2) Regulations.--'' and moving 
                        such paragraph two ems to the right;
                    (C) in subsection (e)--
                            (i) by striking ``(e)(1)'' and inserting 
                        the following:
    ``(e) Repayment of Amounts.--
            ``(1) In general.--'';
                            (ii) in paragraph (2), by striking ``(2)'' 
                        and inserting ``(2) Factors in imposing 
                        sanctions.--'' and moving such paragraph two 
                        ems to the right; and
                            (iii) in paragraph (3), by striking ``(3)'' 
                        and inserting ``(3) Waiver.--'' and moving such 
                        paragraph two ems to the right;
                    (D) in subsection (f), by striking ``(f)'' and 
                inserting ``(f) Immediate Termination or Suspension of 
                Assistance in Emergency Situations.--'';
                    (E) in subsection (g), by striking ``(g)'' and 
                inserting ``(g) Discrimination Against Participants.--
                ''; and
                    (F) by redesignating subsections (d), (e), (f), (g) 
                as subsections (c), (d), (e), and (f), respectively.
            (6) Section 165.--Section 165 of such Act (29 U.S.C. 1575) 
        is amended--
                    (A) in the section heading to read as follows:

``SEC. 165. REPORTS; RECORDKEEPING; INVESTIGATIONS.'';

                    (B) in subsection (a)--
                            (i) by striking ``(a)(1)'' and inserting 
                        the following:
    ``(a) Reports.--
            ``(1) In general.--'';
                            (ii) in paragraph (2), by striking ``(2)'' 
                        and inserting ``(2) Submission to the 
                        secretary.--'' and moving such paragraph two 
                        ems to the right; and
                            (iii) in paragraph (3), by striking ``(3)'' 
                        and inserting ``(3) Maintenance of standardized 
                        records.--'' and moving such paragraph two ems 
                        to the right; and
                            (iv) in paragraph (4)--
                                    (I) by striking ``(4)(A)'' and 
                                inserting ``(4) Availability to the 
                                public.--(A)'' and moving such 
                                paragraph two ems to the right;
                                    (II) in subparagraph (B), by 
                                striking ``(B)'' and inserting ``(B) 
                                Exception.--'' and moving such 
                                subparagraph two ems to the right; and
                                    (III) in subparagraph (C), by 
                                striking ``(C)'' and inserting ``(C) 
                                Fees to recover costs.--'' and moving 
                                such subparagraph two ems to the right;
                    (C) in subsection (b)--
                            (i) by striking ``(b)(1)(A)'' and inserting 
                        the following:
    ``(b) Investigations of Use of Funds.--
            ``(1) In general.--(A)'';
                            (ii) in subparagraph (B) of paragraph (1), 
                        by moving such subparagraph two ems to the 
                        right;
                            (iii) in paragraph (2), by striking ``(2)'' 
                        and inserting ``(2) Prohibition.--'' and moving 
                        such paragraph two ems to the right; and
                            (iv) in paragraph (3)--
                                    (I) by striking ``(3)(A)'' and 
                                inserting the following:
            ``(3) Audits.--
                    ``(A) In general.--'';
                                    (II) in subparagraph (B), by 
                                striking ``(B)'' and inserting ``(B) 
                                Notification requirement.--'' and 
                                moving such subparagraph two ems to the 
                                right;
                                    (III) in subparagraph (C), by 
                                striking ``(C)'' and inserting ``(C) 
                                Additional requirement.--'' and moving 
                                such subparagraph two ems to the right; 
                                and
                                    (IV) in subparagraph (D), by 
                                striking ``(D)'' and inserting ``(D) 
                                Rule of construction.--'' and moving 
                                such subparagraph two ems to the right;
                    (D) in subsection (c)--
                            (i) by striking ``(c)'' and inserting ``(c) 
                        Accessibility of Reports.--''; and
                            (ii) in paragraph (2), by striking 
                        ``service delivery area'' and inserting ``local 
                        workforce development area'';
                    (E) in subsection (d)--
                            (i) by striking ``(d)(1)'' and inserting 
                        the following;
    ``(d) Information To Be Included in Reports.--
            ``(1) In general.--''; and
                            (ii) in paragraph (2), by striking ``(2)'' 
                        and inserting ``(2) Additional requirement.--'' 
                        and moving such paragraph two ems to the right;
                    (F) in subsection (e), by striking ``(e)'' and 
                inserting ``(e) Retention of Records.--'';
                    (G) in subsection (f)--
                            (i) by striking ``(f)(1)'' and inserting 
                        the following:
    ``(f) Quarterly Financial Reports.--
            ``(1) In general.--'';
                            (ii) by striking ``service delivery area'' 
                        and inserting ``local workforce development 
                        area''; and
                            (iii) in paragraph (2), by striking ``(2)'' 
                        and inserting ``(2) Additional requirement.--'' 
                        and moving such paragraph two ems to the right; 
                        and
                    (H) in subsection (g), by striking ``(g)'' and 
                inserting ``(g) Maintenance of Additional Records.--''.
            (7) Section 166.--Section 166 of such Act (29 U.S.C. 1576) 
        is amended--
                    (A) in the section heading to read as follows:

``SEC. 166. ADMINISTRATIVE ADJUDICATION.'';

                    (B) in subsection (a), by striking ``(a)'' and 
                inserting the following:
    ``(a) In General.--'';
                    (C) in subsection (b), by striking ``(b)'' and 
                inserting the following:
    ``(b) Appeal.--'';
                    (D) in subsection (c), by striking ``(c)'' and 
                inserting the following:
    ``(c) Time Limit.--''; and
                    (E) in subsection (d), by striking ``(d)'' and 
                inserting the following:
    ``(d) Additional Requirement.--'';
            (8) Section 169.--Section 169 of such Act (29 U.S.C. 1579) 
        is amended--
                    (A) in the section heading to read as follows:

``SEC. 169. ADMINISTRATIVE PROVISIONS.'';

                    (B) in subsection (a), by striking ``(a)'' and 
                inserting ``(a) In General.--'';
                    (C) in subsection (b), by striking ``(b)'' and 
                inserting ``(b) Acquisition of Certain Property and 
                Services.--'';
                    (D) in subsection (c), by striking ``(c)'' and 
                inserting ``(c) Authority To Enter Into Certain 
                Agreements and To Make Certain Expenditures.--''; and
                    (E) in subsection (d), by striking ``(d)'' and 
                inserting ``(d) Annual Report.--''.
            (9) Section 170.--Section 170 of such Act (29 U.S.C 1580) 
        is amended--
                    (A) in the section heading to read as follows:

``SEC. 170. UTILIZATION OF SERVICES AND FACILITIES.'';

                and
                    (B) in the first sentence, by striking ``section 
                169(c)'' and inserting ``section 168(c)''.
            (10) Section 171.--Section 171 of such Act (29 U.S.C 1581) 
        is amended in the section heading to read as follows:

``SEC. 171. OBLIGATIONAL AUTHORITY.''.

            (11) Redesignation.--Sections 169, 170, 171, 172, and 173 
        of the Job Training Partnership Act (29 U.S.C. 1579, 1580, and 
        1581), as amended or added by this Act, as the case may be, are 
        further amended by redesignating such sections as sections 168, 
        169, 170, 171, and 172 of such Act, respectively.
    (e) Part E.--
            (1) Heading.--The heading for part E of title I of such Act 
        is amended by redesignating such heading as the heading for 
        part D of title I of such Act (and conforming the typeface for 
        such heading in a manner similar to the typeface for the 
        heading for part C of title I of such Act (as amended by 
        subsection (b)(1)(A)).
            (2) Section 183.--Section 183 of such Act (29 U.S.C. 1592), 
        as amended by this Act, is further amended by redesignating 
        such section as section 181.

SEC. 904. AMENDMENTS TO TITLE IV.

    (a) Part Headings.--The following part headings of title IV of the 
Job Training Partnership Act (29 U.S.C. 1671 et seq.) are amended as 
follows:
            (1) The heading for part A of title IV of such Act is 
        amended to read as follows:

  ``PART A--EMPLOYMENT AND TRAINING PROGRAMS FOR NATIVE AMERICANS AND 
                  MIGRANT AND SEASONAL FARMWORKERS''.

            (2) The heading for part B of title IV of such Act is 
        amended to read as follows:

                         ``PART B--JOB CORPS''.

            (3) The heading for part C of title IV of such Act is 
        amended to read as follows:

               ``PART C--VETERANS' EMPLOYMENT PROGRAMS''.

            (4) The heading for part D of title IV of such Act is 
        amended to read as follows:

                    ``PART D--NATIONAL ACTIVITIES''.

            (5) The heading for part E of title IV of such Act is 
        amended to read as follows:

                 ``PART E--LABOR MARKET INFORMATION''.

    (b) Section 441.--Section 441 of such Act (29 U.S.C. 1721) is 
amended--
            (1) in the section heading to read as follows:

``SEC. 441. AUTHORIZATION OF PROGRAMS.'';

            (2) in subsection (a)--
                    (A) by striking ``(a)(1)'' and inserting the 
                following:
    ``(a) Authorization.--
            ``(1) In general.--'';
                    (B) in paragraph (2), by striking ``(2)'' and 
                inserting ``(2) Conduct of pro- grams.--'' and moving 
                such paragraph two ems to the right; and
                    (C) in paragraph (3), by striking ``(3)'' and 
                inserting ``(3) Required activities.--'' and moving 
                such paragraph two ems to the right; and
            (3) in subsection (b)--
                    (A) by striking ``(b)(1)'' and inserting the 
                following:
    ``(b) Administration of Programs.--
            ``(1) In general.--''; and
                    (B) in paragraph (2), by striking ``(2)'' and 
                inserting ``(2) Additional responsibilities.--'' and 
                moving such paragraph two ems to the right.
    (c) Section 455.--Section 455 of such Act (29 U.S.C. 1735) is 
amended--
            (1) in the section heading to read as follows:

``SEC. 455. UNIFORM REPORTING REQUIREMENTS.'';

        and
            (2) by redesignating such section as section 453.
    (d) Section 461.--Section 461 of such Act (29 U.S.C. 1751) is 
amended--
            (1) in the section heading to read as follows:

``SEC. 461. LABOR MARKET INFORMATION; AVAILABILITY OF FUNDS.'';

            (2) in subsection (a), by striking ``(a)'' and inserting 
        ``(a) Set-Aside of Funds.--'';
            (3) in subsection (b)--
                    (A) by striking ``(b)'' and inserting ``(b) 
                Availability for Additional Purpose.--''; and
                    (B) by striking ``section 125'' and inserting 
                ``section 467''; and
            (4) in subsection (c), by striking ``(c)'' and inserting 
        ``(c) Availability of Other Funds.--''.
    (e) Section 462.--Section 462 of such Act (29 U.S.C. 1752) is 
amended--
            (1) in the section heading to read as follows:

``SEC. 462. COOPERATIVE LABOR MARKET INFORMATION PROGRAM.'';

            (2) in subsection (a), by striking ``(a)'' and inserting 
        ``(a) Data on Current Employment.--'';
            (3) in subsection (b), by striking ``(b)'' and inserting 
        ``(b) Maintenance of Descriptions of Job Duties and Related 
        Information.--'';
            (4) in subsection (c), by striking ``(c)'' and inserting 
        ``(c) Additional Requirements.--'';
            (5) in subsection (d)--
                    (A) by striking ``(d)(1)'' and inserting the 
                following:
    ``(d) Data for Annual Statistical Measure of Labor Market Related 
Economic Hardship.--
            ``(1) In general.--'';
                    (B) in paragraph (2), by striking ``(2)'' and 
                inserting ``(2) Household budget data.--'' and moving 
                such paragraph two ems to the right; and
                    (C) in paragraph (3), by striking ``(3)'' and 
                inserting ``(3) Report.--'' and moving such paragraph 
                two ems to the right;
            (6) in subsection (e), by striking ``(e)'' and inserting 
        ``(e) Statistical Data Relating to Permanent Lay-Offs and Plant 
        Closings.--''
            (7) in subsection (f)--
                    (A) by striking ``(f)(1)'' and inserting the 
                following:
    ``(f) Data Relating to Permanent Dislocation of Farmers and 
Ranchers.--
            ``(1) In general.--'';
                    (B) in paragraph (1), by moving subparagraphs (A) 
                through (E) two ems to the right; and
                    (C) in paragraph (2), by striking ``(2)'' and 
                inserting ``(2) Report.--'' and moving such paragraph 
                two ems to the right; and
            (8) by striking subsection (g).
    (f) Section 463.--Section 463 of such Act (29 U.S.C. 1753) is 
amended--
            (1) in the section heading to read as follows:

``SEC. 463. SPECIAL FEDERAL RESPONSIBILITIES.'';

            (2) in subsection (a), by striking ``(a)'' and inserting 
        ``(a) Review and Application of Labor Market Information.--'';
            (3) in subsection (b), by striking ``(b)'' and inserting 
        ``(b) Integrated Occupational Supply and Demand Information 
        System.--''; and
            (4) in subsection (c), by striking ``(c)'' and inserting 
        ``(c) Sufficient Funds for Staf- fing.--''.
    (g) Section 464.--Section 464 of such Act (29 U.S.C. 1754) is 
amended--
            (1) in the section heading to read as follows:

``SEC. 464. NATIONAL OCCUPATIONAL INFORMATION COORDINATING 
              COMMITTEE.'';

            (2) in subsection (a)--
                    (A) by striking ``(a)(1)'' and inserting the 
                following:
    ``(a) Reservation.--
            ``(1) In general.--'';
                    (B) in paragraph (2), by striking ``(2)'' and 
                inserting ``(2) Additional members.--'' and moving such 
                paragraph two ems to the right; and
                    (C) in paragraph (3), by striking ``(3)'' and 
                inserting ``(3) Additional requirement.--'' and moving 
                such paragraph two ems to the right;
            (3) in subsection (b), by striking ``(b)'' and inserting 
        ``(b) Additional Responsibilities.--''; and
            (4) in subsection (c), by striking ``(c)'' and inserting 
        ``(c) Use of Funds.--''.
    (h) Section 465.--Section 465 of such Act (29 U.S.C. 1755) is 
amended in the section heading to read as follows:

``SEC. 465. JOB BANK PROGRAM.''.

    (i) Section 466.--Section 466 of such Act (as redesignated) is 
amended--
            (1) in the section heading to read as follows:

``SEC. 466. STATE JOB BANK SYSTEMS.'';

            (2) in subsection (a) (as redesignated), by striking 
        ``(a)'' and inserting ``(a) In General.--''; and
            (3) in subsection (b) (as redesignated), by striking 
        ``(b)'' and inserting ``(b) Computerized Data Systems.--''.
    (j) Section 467.--Section 467 of such Act (as redesignated) is 
amended--
            (1) in the section heading to read as follows:

``SEC. 467. STATE LABOR MARKET INFORMATION PROGRAMS.'';

            (2) in subsection (a), by striking ``(a)'' and inserting 
        the following:
    ``(a) In General.--'';
            (3) in subsection (b), by striking ``(b)'' and inserting 
        the following:
    ``(b) Additional Requirements.--'';
            (4) in subsection (c), by striking ``(c)'' and inserting 
        the following:
    ``(c) Reimbursements.--''; and
            (5) in subsection (d), by striking ``(d)'' and inserting 
        the following:
    ``(d) Combination or Consolidation of Certain Reporting 
Requirements.--''.

SEC. 905. AMENDMENTS TO TITLE VI.

    The Job Training Partnership Act (29 U.S.C. 1501 et seq.) is 
amended by striking the heading for title VI of such Act.

SEC. 906. CLARIFICATION.

    Nothing in this Act, the amendments made by this Act, or any law 
amended by this Act shall be construed to supplant or modify the 
requirements for registration of an apprenticeship program under the 
National Apprenticeship Act.

                  Subtitle B--Amendments to Other Acts

SEC. 911. AMENDMENTS TO OTHER ACTS.

    The following Acts are amended as follows:
            (1) Title 5, united states code.--Section 3502(d) of title 
        5, United States Code, is amended--
                    (A) in paragraph (3)--
                            (i) in subparagraph (A)(i), by striking 
                        ``or units (referred to in section 311(b)(2) of 
                        the Job Training Partnership Act)'' and 
                        inserting ``referred to in section 
                        313(a)(2)(B)(i) of the Employment, Training, 
                        and Literacy Enhancement Act''; and
                            (ii) in subparagraph (B)(iii), by striking 
                        ``Job Training Partnership Act'' and inserting 
                        ``Employment, Training, and Literacy 
                        Enhancement Act''; and
                    (B) in paragraph (4), in the second sentence, by 
                striking ``Job Training Partnership Act'' and inserting 
                ``Employment, Training, and Literacy Enhancement Act''.
            (2) Food stamp act of 1977.--
                    (A) Section 5.--Section 5(l) of the Food Stamp Act 
                of 1977 (7 U.S.C. 2014(l)) is amended by striking 
                ``section 142(b) of the Job Training Partnership Act 
                (29 U.S.C. 1552(b))'' and inserting ``title II, III, or 
                IV of the Employment, Training, and Literacy 
                Enhancement Act''.
                    (B) Section 6.--Section 6 of the Food Stamp Act of 
                1977 (7 U.S.C. 2015) is amended--
                            (i) in subsection (d)(4)(M), by striking 
                        ``Job Training Partnership Act'' and inserting 
                        ``Employment, Training, and Literacy 
                        Enhancement Act''; and
                            (ii) in subsection (e)(3), by striking 
                        subparagraph (A) and inserting the following:
                    ``(A) a program under title II, III, or IV of the 
                Employment, Training, and Literacy Enhancement Act;''.
                    (C) Section 17.--The second sentence of section 
                17(b)(2) of the Food Stamp Act of 1977 (7 U.S.C. 
                2026(b)(2)) is amended--
                            (i) by striking ``to accept an offer of 
                        employment from a political subdivision or a 
                        prime sponsor pursuant to the Comprehensive 
                        Employment and Training Act of 1973, as amended 
                        (29 U.S.C. 812),'' and inserting ``to accept an 
                        offer of employment from a service provider 
                        carrying out employment and training activities 
                        through a program carried out under title II, 
                        III, or IV of the Employment, Training, and 
                        Literacy Enhancement Act,''; and
                            (ii) by striking ``: Provided, That all of 
                        the political subdivision's'' and all that 
                        follows and inserting ``, if all of the jobs 
                        supported under the program have been made 
                        available to participants in the program before 
                        the service provider providing the jobs extends 
                        an offer of employment under this paragraph, 
                        and if the service provider, in employing the 
                        person, complies with the requirements of 
                        Federal law that relate to the program.''.
            (3) Immigration and nationality act.--Section 245A(h)(4)(F) 
        of the Immigration and Nationality Act (8 U.S.C. 
        1255a(h)(4)(F)) is amended by striking ``The Job Training 
        Partnership Act.'' and inserting ``The Employment, Training, 
        and Literacy Enhancement Act.''.
            (4) Refugee education assistance act of 1980.--Section 
        402(a)(4) of the Refugee Education Assistance Act of 1980 (8 
        U.S.C. 1522 note) is amended by striking ``the Comprehensive 
        Employment and Training Act of 1973'' and inserting ``the 
        Employment, Training, and Literacy Enhancement Act''.
            (5) National defense authorization act for fiscal year 
        1993.--
                    (A) Section 3161.--Section 3161(c)(6) of the 
                National Defense Authorization Act for Fiscal Year 1993 
                (42 U.S.C. 7274h(c)(6)) is amended by striking ``Job 
                Training Partnership Act (29 U.S.C. 1501 et seq.)'' and 
                inserting ``title II, III, or IV of the Employment, 
                Training, and Literacy Enhancement Act''.
                    (B) Section 4461.--Section 4461(1) of the National 
                Defense Authorization Act for Fiscal Year 1993 (10 
                U.S.C. 1143 note) is amended by striking ``The Job 
                Training Partnership Act (29 U.S.C. 1501 et seq.).'' 
                and inserting ``The Employment, Training, and Literacy 
                Enhancement Act.''.
                    (C) Section 4471.--Section 4471 of the National 
                Defense Authorization Act for Fiscal Year 1993 (10 
                U.S.C. 2501 note) is amended--
                            (i) in subsection (c)(2), by striking 
                        ``section 311(b)(2) of the Job Training 
                        Partnership Act (29 U.S.C. 1661(b)(2))'' and 
                        inserting ``313(a)(2)(B)(i) of the Employment, 
                        Training, and Literacy Enhancement Act'';
                            (ii) in subsection (d)--
                                    (I) in the first sentence, by 
                                striking ``for training, adjustment 
                                assistance, and employment services'' 
                                and all that follows through ``except 
                                where'' and inserting ``to participate 
                                in employment and training activities 
                                carried out under the Employment, 
                                Training, and Literacy Enhancement Act, 
                                except in a case in which''; and
                                    (II) by striking the second 
                                sentence; and
                            (iii) in subsection (e), by striking ``for 
                        training,'' and all that follows through 
                        ``beginning'' and inserting ``to participate in 
                        employment and training activities under the 
                        Employment, Training, and Literacy Enhancement 
                        Act beginning''.
            (6) National defense authorization act for fiscal year 
        1991.--Section 4003(5)(C) of the National Defense Authorization 
        Act for Fiscal Year 1991 (10 U.S.C. 2391 note) is amended by 
        inserting before the period the following: ``, as in effect on 
        the day before the date of the enactment of the Employment, 
        Training, and Literacy Enhancement Act of 1997''.
            (7) National defense authorization act for fiscal year 
        1994.--Section 1333(c)(2)(B) of the National Defense 
        Authorization Act for Fiscal Year 1994 (10 U.S.C. 2701 note) is 
        amended by striking ``Private industry councils (as described 
        in section 102 of the Job Training Partnership Act (29 U.S.C. 
        1512)).'' and inserting ``Local workforce development boards 
        established under section 122 of the Employment, Training, and 
        Literacy Enhancement Act.''.
            (8) Small business act.--The fourth sentence of section 
        7(j)(13)(E) of the Small Business Act (15 U.S.C. 636(j)(13)(E)) 
        is amended by striking ``under the Job Training Partnership Act 
        (29 U.S.C. 1501 et seq.)'' and inserting ``under section 124 of 
        the Employment, Training, and Literacy Enhancement Act''.
            (9) Employment act of 1946.--Section 4(f)(2)(B) of the 
        Employment Act of 1946 (15 U.S.C. 1022a(f)(2)(B)) is amended by 
        striking ``and include these in the annual Employment and 
        Training Report of the President required under section 705(a) 
        of the Comprehensive Employment and Training Act of 1973 
        (hereinafter in this Act referred to as `CETA')'' and inserting 
        ``and prepare and submit to the President an annual report 
        containing the recommendations''.
            (10) Full employment and balanced growth act of 1978.--
                    (A) Section 206.--Section 206 of the Full 
                Employment and Balanced Growth Act of 1978 (15 U.S.C. 
                3116) is amended--
                            (i) in subsection (b)--
                                    (I) in the matter preceding 
                                paragraph (1), by striking ``CETA'' and 
                                inserting ``the Employment, Training, 
                                and Literacy Enhancement Act''; and
                                    (II) in paragraph (1), by striking 
                                ``(including use of section 110 of CETA 
                                when necessary)''; and
                            (ii) in subsection (c)(1), by striking 
                        ``through the expansion of CETA and other''.
                    (B) Section 401.--Section 401(d) of the Full 
                Employment and Balanced Growth Act of 1978 (15 U.S.C. 
                3151(d)) is amended by striking ``include, in the 
                annual Employment and Training Report of the President 
                provided under section 705(a) of CETA,'' and inserting 
                ``include, in the annual report referred to in section 
                4(f)(2)(B) of the Employment Act of 1946 (15 U.S.C. 
                1022a(f)(2)(B)),''.
            (11) Title 18, united states code.--Subsections (a), (b), 
        and (c) of section 665 of title 18, United States Code are 
        amended by striking ``or the Job Training Partnership Act'' and 
        inserting ``the Job Training Partnership Act, or the 
        Employment, Training, and Literacy Enhancement Act''.
            (12) Trade act of 1974.--Section 239(e) of the Trade Act of 
        1974 (19 U.S.C. 2311(e)) is amended by striking ``Job Training 
        Partnership Act'' and inserting ``Employment, Training, and 
        Literacy Enhancement Act''.
            (13) Higher education act of 1965.--Section 480(b)(14) of 
        the Higher Education Act of 1965 (20 U.S.C. 1087vv(b)(14)) is 
        amended by striking ``Job Training Partnership Act'' and 
        inserting ``received through participation under title II, III, 
        or IV of the Employment, Training, and Literacy Enhancement 
        Act''.
            (14) Individuals with disabilities education act.--Section 
        626 of the Individuals with Disabilities Education Act (20 
        U.S.C. 1425) is amended--
                    (A) in the first sentence of subsection (a), by 
                striking ``(including the State job training 
                coordinating councils and service delivery area 
                administrative entities established under the Job 
                Training Partnership Act)'' and inserting ``(including 
                the State collaborative process under of section 102 of 
                the Employment, Training, and Literacy Enhancement Act 
                and local workforce development boards established 
                under section 122 of such Act)'';
                    (B) in subsection (e)--
                            (i) in paragraph (3)(C), by striking 
                        ``local Private Industry Councils (PICS) 
                        authorized by the Job Training Partnership Act 
                        (JTPA),'' and inserting ``local workforce 
                        development boards established under section 
                        122 of the Employment, Training, and Literacy 
                        Enhancement Act,'';
                            (ii) in paragraph (4)(A)(iii), by striking 
                        ``local Private Industry Councils (PICS) 
                        authorized by the JTPA,'' and inserting ``local 
                        workforce development boards established under 
                        section 122 of the Employment, Training, and 
                        Literacy Enhancement Act,''; and
                            (iii) in clauses (iii), (iv), (v), and 
                        (vii) of paragraph (4)(B), by striking ``PICS 
                        authorized by the JTPA'' and inserting ``local 
                        workforce development boards established under 
                        section 122 of the Employment, Training, and 
                        Literacy Enhancement Act''; and
                    (C) in subsection (g), by striking ``the Job 
                Training Partnership Act (JTPA),'' and inserting ``the 
                Employment, Training, and Literacy Enhancement Act,''.
            (15) Department of education organization act.--Subsection 
        (a) of section 302 of the Department of Education Organization 
        Act (20 U.S.C. 3443(a)) (as redesignated in section 271(a)(2) 
        of the Improving America's Schools Act of 1994) is amended by 
        striking ``under section 303(c)(2) of the Comprehensive 
        Employment and Training Act'' and inserting ``relating to such 
        education''.
            (16) National skill standards act of 1994.--
                    (A) Section 504.--Section 504(c)(3) of the National 
                Skill Standards Act of 1994 (20 U.S.C. 5934(c)(3)) is 
                amended by striking ``the Capacity Building and 
                Information and Dissemination Network established under 
                section 453(b) of the Job Training Partnership Act (29 
                U.S.C. 1733(b)) and''.
                    (B) Section 508.--Section 508(1) of the National 
                Skill Standards Act of 1994 (20 U.S.C. 5938(1)) is 
                amended to read as follows:
            ``(1) Community-based organization.--The term `community-
        based organization' means a private nonprofit organization of 
        demonstrated effectiveness that is representative of a 
        community or a significant segment of a community and that 
        provides workforce and career development activities, as 
        defined in section 4 of the Employment, Training, and Literacy 
        Enhancement Act.''.
            (17) Elementary and secondary education act of 1965.--
                    (A) Section 1205.--Section 1205(8)(B) of the 
                Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 6365(8)(B)) is amended by striking ``, the Adult 
                Education Act, the Individuals with Disabilities 
                Education Act, and the Job Training Partnership Act'' 
                and inserting ``the Individuals with Disabilities 
                Education Act, and the Employment, Training, and 
                Literacy Enhancement Act''.
                    (B) Section 1414.--Section 1414(c)(8) of the 
                Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 6434(c)(8)) is amended by striking ``programs 
                under the Job Training Partnership Act,'' and inserting 
                ``activities under the Employment, Training, and 
                Literacy Enhancement Act,''.
                    (C) Section 1423.--Section 1423(9) of the 
                Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 6453(9)) is amended by striking ``programs under 
                the Job Training and Partnership Act'' and inserting 
                ``activities under the Employment, Training, and 
                Literacy Enhancement Act''.
                    (D) Section 1425.--Section 1425(9) of the 
                Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 6455(9)) is amended by striking ``, such as 
                funds under the Job Training Partnership Act,'' and 
                inserting ``, such as funds made available under the 
                Employment, Training, and Literacy Enhancement Act,''.
            (18) Freedom support act.--The last sentence of section 505 
        of the FREEDOM Support Act (22 U.S.C. 5855) is amended by 
        striking ``, through the Defense Conversion'' and all that 
        follows through ``or through'' and inserting ``or through''.
            (19) Emergency jobs and unemployment assistance act of 
        1974.--
                    (A) Section 204.--Section 204(b) of the Emergency 
                Jobs and Unemployment Assistance Act of 1974 (26 U.S.C. 
                3304 note) is amended by striking ``designate as an 
                area'' and all that follows and inserting ``designate 
                as an area under this section an area that is a local 
                workforce development area under the Employment, 
                Training, and Literacy Enhancement Act.''.
                    (B) Section 223.--Section 223 of the Emergency Jobs 
                and Unemployment Assistance Act of 1974 (26 U.S.C. 3304 
                note) is amended--
                            (i) in paragraph (3), by striking 
                        ``assistance provided'' and all that follows 
                        and inserting ``assistance provided under the 
                        Employment, Training, and Literacy Enhancement 
                        Act;''; and
                            (ii) in paragraph (4), by striking ``funds 
                        provided'' and all that follows and inserting 
                        ``funds provided under the Employment, 
                        Training, and Literacy Enhancement Act;''.
            (20) Job training reform amendments of 1992.--Section 701 
        of the Job Training Reform Amendments of 1992 (29 U.S.C. 1501 
        note) is repealed.
            (21) Public law 98-524.--Section 7 of Public Law 98-524 (29 
        U.S.C. 1551 note) is repealed.
            (22) Veterans' benefits and programs improvement act of 
        1988.--Section 402 of the Veterans' Benefits and Programs 
        Improvement Act of 1988 (29 U.S.C. 1721 note) is amended--
                    (A) in subsection (a), by striking ``title III of 
                the Job Training Partnership Act (29 U.S.C. 1651 et 
                seq.)'' and inserting ``the Employment, Training, and 
                Literacy Enhancement Act'';
                    (B) in subsection (c), by striking ``Training, in 
                consultation with the office designated or created 
                under section 322(b) of the Job Training Partnership 
                Act,'' and inserting ``Training''; and
                    (C) in subsection (d)--
                            (i) in paragraph (1), by striking ``under--
                        '' and all that follows through ``the 
                        Veterans''' and inserting ``under the 
                        Veterans'''; and
                            (ii) in paragraph (2), by striking 
                        ``Employment and training'' and all that 
                        follows and inserting ``Employment, training, 
                        and literacy activities under the Employment, 
                        Training, and Literacy Enhancement Act.''.
            (23) Veterans' job training act.--
                    (A) Section 13.--Section 13(b) of the Veterans' Job 
                Training Act (29 U.S.C. 1721 note) is amended by 
                striking ``assistance under the Job Training 
                Partnership Act (29 U.S.C. 1501 et seq.)'' and 
                inserting ``assistance under the Employment, Training, 
                and Literacy Enhancement Act''.
                    (B) Section 14.--Section 14(b)(3)(B)(i)(II) of the 
                Veterans' Job Training Act (29 U.S.C. 1721 note) is 
                amended by striking ``under part C of title IV of the 
                Job Training Partnership Act (29 U.S.C. 1501 et seq.)'' 
                and inserting ``under the Employment, Training, and 
                Literacy Enhancement Act''.
                    (C) Section 15.--Section 15(c)(2) of the Veterans' 
                Job Training Act (29 U.S.C. 1721 note) is amended--
                            (i) in the second sentence, by striking 
                        ``part C of title IV of the Job Training 
                        Partnership Act (29 U.S.C. 1501 et seq.)'' and 
                        inserting ``the Employment, Training, and 
                        Literacy Enhancement Act''; and
                            (ii) in the third sentence, by striking 
                        ``title III of''.
            (24) Worker adjustment and retraining notification act.--
        Section 3(a)(2) of the Worker Adjustment and Retraining 
        Notification Act (29 U.S.C. 2102(a)(2)) is amended by striking 
        ``title III of the Job Training Partnership Act'' and inserting 
        ``title II, III, or IV of the Employment, Training, and 
        Literacy Enhancement Act''.
            (25) Title 31, united states code.--Section 6703(a) of 
        title 31, United States Code, is amended by striking paragraph 
        (4) and inserting the following:
            ``(4) Programs under title III or IV of the Employment, 
        Training, and Literacy Enhancement Act.''.
            (26) Veterans' rehabilitation and education amendments of 
        1980.--Section 512 of the Veterans' Rehabilitation and 
        Education Amendments of 1980 (38 U.S.C. 4101 note) is amended 
        by striking ``the Comprehensive Employment and Training Act (29 
        U.S.C. et seq.),'' and inserting ``the Employment, Training, 
        and Literacy Enhancement Act,''.
            (27) Title 38, united states code.--
                    (A) Section 4102a.--Section 4102A(d) of title 38, 
                United States Code, is amended by striking ``the Job 
                Training Partnership Act'' and inserting ``the 
                Employment, Training, and Literacy Enhancement Act''.
                    (B) Section 4103a.--Section 4103A(c)(4) of title 
                38, United States Code, is amended by striking ``Job 
                Training Partnership Act (29 U.S.C. 1501 et seq.))'' 
                and inserting ``Employment, Training, and Literacy 
                Enhancement Act)''.
                    (C) Section 4213.--Section 4213 of title 38, United 
                States Code, is amended by striking ``Job Training 
                Partnership Act (29 U.S.C. 1501 et seq.),'' and 
                inserting ``Employment, Training, and Literacy 
                Enhancement Act,''.
            (28) United states housing act of 1937.--Section 23 of the 
        United States Housing Act of 1937 (42 U.S.C. 1437u) is 
        amended--
                    (A) in subsection (b)(2)(A), by striking ``the Job 
                Training'' and all that follows through ``or the'' and 
                inserting ``the Employment, Training, and Literacy 
                Enhancement Act or the'';
                    (B) in the first sentence of subsection (f)(2), by 
                striking ``programs under the'' and all that follows 
                through ``and the'' and inserting ``programs under 
                title II, III, or IV of the Employment, Training, and 
                Literacy Enhancement Act and the''; and
                    (C) in subsection (g)--
                            (i) in paragraph (2), by striking 
                        ``programs under the'' and all that follows 
                        through ``and the'' and inserting ``programs 
                        under title II, III, or IV of the Employment, 
                        Training, and Literacy Enhancement Act and 
                        the''; and
                            (ii) in paragraph (3)(H), by striking 
                        ``program under'' and all that follows through 
                        ``and any other'' and inserting ``program under 
                        title II, III, or IV of the Employment, 
                        Training, and Literacy Enhancement Act and any 
                        other''.
            (29) Housing act of 1949.--Section 504(c)(3) of the Housing 
        Act of 1949 (42 U.S.C. 1474(c)(3)) is amended by striking 
        ``pursuant to'' and all that follows through ``or the'' and 
        inserting ``pursuant to the Employment, Training, and Literacy 
        Enhancement Act or the''.
            (30) Older americans act of 1965.--
                    (A) Section 203.--Section 203 of the Older 
                Americans Act of 1965 (42 U.S.C. 3013) is amended--
                            (i) in subsection (a)(2), by striking the 
                        last sentence and inserting the following: ``In 
                        particular, the Secretary of Labor and the 
                        Secretary of Education shall consult and 
                        cooperate with the Assistant Secretary in 
                        carrying out the Employment, Training, and 
                        Literacy Enhancement Act of 1997.''; and
                            (ii) in subsection (b), by striking 
                        paragraph (1) and inserting the following:
            ``(1) the Employment, Training, and Literacy Enhancement 
        Act,''.
                    (B) Section 502.--Section 502 of the Older 
                Americans Act of 1965 (42 U.S.C. 3056) is amended--
                            (i) in subsection (b)(1)(N)(i), by striking 
                        ``the Job Training Partnership Act (29 U.S.C. 
                        1501 et seq.)'' and inserting ``the Employment, 
                        Training, and Literacy Enhancement Act''; and
                            (ii) in subsection (e)(2)(C), by striking 
                        ``programs carried out under section 124 of the 
                        Job Training Partnership Act (29 U.S.C. 1534)'' 
                        and inserting ``employment and training 
                        activities carried out under title III of the 
                        Employment, Training, and Literacy Enhancement 
                        Act''.
                    (C) Section 503.--Section 503(b)(1) of the Older 
                Americans Act of 1965 (42 U.S.C. 3056a(b)(1)) is 
                amended by striking ``the Job Training Partnership 
                Act,'' each place it appears and inserting ``the 
                Employment, Training, and Literacy Enhancement Act,''.
            (31) Omnibus crime control and safe streets act of 1968.--
        Section 1801(b)(3) of the Omnibus Crime Control and Safe 
        Streets Act of 1968 (42 U.S.C. 3796ee(b)(3)) is amended by 
        striking ``Job Training Partnership Act (relating to Job Corps) 
        (29 U.S.C. 1691 et seq.)'' and inserting ``Employment, 
        Training, and Literacy Enhancement Act''.
            (32) Environmental programs assistance act of 1984.--The 
        second sentence of section 2(a) of the Environmental Programs 
        Assistance Act of 1984 (42 U.S.C. 4368a(a)) is amended by 
        striking ``Job Training Partnership Act'' and inserting 
        ``Employment, Training, and Literacy Enhancement Act''.
            (33) Domestic volunteer service act of 1973.--
                    (A) Section 103.--Section 103(d) of the Domestic 
                Volunteer Service Act of 1973 (42 U.S.C. 4953(d)) is 
                amended in the second sentence to read as follows: 
                ``Whenever feasible, such efforts shall be coordinated 
                with a local workforce development board established 
                under section 122 of the Employment, Training, and 
                Literacy Enhancement Act.''.
                    (B) Section 109.--Subsections (c)(2) and (d)(2) of 
                section 109 of the Domestic Volunteer Service Act of 
                1973 (42 U.S.C. 4959) is amended by striking ``Job 
                Training Partnership Act'' and inserting ``Employment, 
                Training, and Literacy Enhancement Act''.
            (34) Age discrimination act of 1975.--Section 304(c)(1) of 
        the Age Discrimination Act of 1975 (42 U.S.C. 6103(c)(1)) is 
        amended by striking ``the Comprehensive Employment and Training 
        Act of 1974 (29 U.S.C. 801, et seq.), as amended,'' and 
        inserting ``the Employment, Training, and Literacy Enhancement 
        Act''.
            (35) Energy conservation and production act.--Section 
        414(b)(3) of the Energy Conservation and Production Act (42 
        U.S.C. 6864(b)(3)) is amended by striking ``the Comprehensive 
        Employment and Training Act of 1973'' and inserting ``the 
        Employment, Training, and Literacy Enhancement Act''.
            (36) National energy conservation policy act.--Section 233 
        of the National Energy Conservation Policy Act (42 U.S.C. 6873) 
        is amended, in the matter preceding paragraph (1), by striking 
        ``the Comprehensive Employment and Training Act of 1973'' and 
        inserting ``the Employment, Training, and Literacy Enhancement 
        Act''.
            (37) Community economic development act of 1981.--Section 
        617(a)(3) of the Community Economic Development Act of 1981 (42 
        U.S.C. 9806(a)(3)) is amended by striking ``activities such as 
        those described in the Comprehensive Employment and Training 
        Act'' and inserting ``employment and training activities 
        described in the Employment, Training, and Literacy Enhancement 
        Act''.
            (38) Stewart b. mckinney homeless assistance act.--Section 
        103(b)(2) of the Stewart B. McKinney Homeless Assistance Act 
        (42 U.S.C. 11302(b)(2)) is amended by striking ``the Job 
        Training Partnership Act'' and inserting ``the Employment, 
        Training, and Literacy Enhancement Act''.
            (39) National and community service act of 1990.--
                    (A) Section 177.--Section 177(d) of the National 
                and Community Service Act of 1990 (42 U.S.C. 12637(d)) 
                is amended by striking ``Job Training Partnership Act'' 
                each place it appears and inserting ``Employment, 
                Training, and Literacy Enhancement Act''.
                    (B) Section 198c.--Section 198C of the National and 
                Community Service Act of 1990 (42 U.S.C. 12653c) is 
                amended--
                            (i) in subsection (b)(1), by striking ``a 
                        military installation described in section 
                        325(e)(1) of the Job Training Partnership Act 
                        (29 U.S.C. 1662d(e)(1)).'' and inserting ``a 
                        military installation being closed or realigned 
                        under--
                    ``(A) the Defense Base Closure and Realignment Act 
                of 1990 (part A of title XXIX of Public Law 101-510; 10 
                U.S.C. 2687 note); and
                    ``(B) title II of the Defense Authorization 
                Amendments and Base Closure and Realignment Act (Public 
                Law 100-526; 10 U.S.C. 2687 note).''; and
                            (ii) in subsection (e)(1)(B)(iii), by 
                        striking ``Job Training Partnership Act (29 
                        U.S.C. 1693)'' and inserting ``Employment, 
                        Training, and Literacy Enhancement Act''.
                    (C) Section 199l.--Section 199L(a) of the National 
                and Community Service Act of 1990 (42 U.S.C. 12655m(a)) 
                is amended by striking ``the Job Training Partnership 
                Act (29 U.S.C. 1501 et seq.)'' and inserting ``the 
                Employment, Training, and Literacy Enhancement Act''.
            (40) Cranston-gonzalez national affordable housing act.--
                    (A) Section 454.--Subparagraphs (H) and (M) of 
                subsection (c)(2), and subsection (d)(7), of section 
                454 of the Cranston-Gonzalez National Affordable 
                Housing Act (42 U.S.C. 12899c) are amended by striking 
                ``the Job Training Partnership Act'' and inserting 
                ``the Employment, Training, and Literacy Enhancement 
                Act''.
                    (B) Section 456.--The first sentence of section 
                456(e) of the Cranston-Gonzalez National Affordable 
                Housing Act (42 U.S.C. 12899e(e)) is amended by 
                striking ``the Job Training Partnership Act'' each 
                place it appears and inserting ``the Employment, 
                Training, and Literacy Enhancement Act''.
            (41) Violent crime control and law enforcement act of 
        1994.--Section 31113(a)(4)(C) of the Violent Crime Control and 
        Law Enforcement Act of 1994 (42 U.S.C. 13823(a)(4)(C)) is 
        amended by inserting after ``the Job Training Partnership Act 
        (29 U.S.C. 1501 et seq.)'' the following: ``, title II, III, or 
        IV of the Employment, Training, and Literacy Enhancement 
        Act,''.
            (42) Personal responsibility and work opportunity 
        reconciliation act of 1996.--Section 403(c)(2)(K) and section 
        423(d)(11) of the Personal Responsibility and Work Opportunity 
        Reconciliation Act of 1996 (8 U.S.C. 1613(c)(2)(K) and 1138a 
        note) are amended by striking ``Job Training Partnership Act'' 
        each place it appears and inserting ``Employment, Training, and 
        Literacy Enhancement Act''.

           TITLE X--EFFECTIVE DATE AND TRANSITION PROVISIONS

SEC. 1001. EFFECTIVE DATE.

    This division and the amendments made by this division shall take 
effect on July 1, 1998.

SEC. 1002. TRANSITION PROVISIONS.

    (a) In General.--The Secretary of Education and the Secretary of 
Labor, as appropriate, shall take such steps as such Secretaries 
determine to be appropriate to provide for the orderly transition from 
any authority under provisions of law amended or repealed by this 
division or any related authority under the provisions of this 
division.
    (b) Extended Transition Period.--
            (1) In general.--If, on or before July 1, 1997, a State has 
        enacted a State statute that provides for the establishment or 
        conduct of three or more of the programs, projects, or 
        activities described in subparagraphs (A) through (E) or 
        paragraph (2), the State shall not be required to comply with 
        provisions of this Act that conflict with such State statute 
        for the period ending three years after the date of enactment 
        of this Act.
            (2) Programs, projects, and activities described.--The 
        programs, projects, and activities described in this paragraph 
        are the following:
                    (A) Establishment of human resource investment 
                councils or substate councils.
                    (B) Reorganization or consolidation of State 
                agencies with responsibility for State employment and 
                training programs.
                    (C) Reorganization or consolidation of State 
                employment and training programs.
                    (D) Restructuring of local delivery systems for 
                State employment and training programs.
                    (E) Development or restructuring of State 
                accountability or oversight systems to focus on 
                performance.

             DIVISION B--VOCATIONAL REHABILITATION PROGRAMS

              TITLE XXI--AMENDMENTS TO GENERAL PROVISIONS

SEC. 2101. REHABILITATION SERVICES ADMINISTRATION.

    Section 3 of the Rehabilitation Act of 1973 (29 U.S.C. 702) is 
amended--
            (1) in subsection (b), by striking ``, as well as 
        unexpended appropriations for carrying out the Vocational 
        Rehabilitation Act (29 U.S.C. 31-42),''; and
            (2) by striking subsection (c).

SEC. 2102. DEFINITIONS.

    Section 7 of the Rehabilitation Act of 1973 (29 U.S.C. 706) is 
amended--
            (1) in paragraph (5), by inserting after ``supported 
        employment'' the following: ``and self-employment or business 
        ownership'';
            (2) by striking paragraph (12);
            (3) in paragraph (15)(A), by inserting a comma after 
        ``subparagraph (B) or (C)'';
            (4) by adding at the end the following:
    ``(36) The term `administrative costs' means--
            ``(A) expenditures not incurred by the State unit for--
                    ``(i) rehabilitation counselors;
                    ``(ii) rehabilitation case coordinators; or
                    ``(iii) other direct service personnel; and
            ``(B) notwithstanding subparagraph (A) includes 
        expenditures incurred by the State unit in the performance of 
        administrative functions under the vocational rehabilitation 
        program, including expenses related to program planning, 
        development, monitoring, and evaluation, including--
                    ``(i) quality assurance;
                    ``(ii) budgeting, accounting, financial management, 
                information systems, and related data processing;
                    ``(iii) providing information about the program to 
                the public;
                    ``(iv) technical assistance to other State 
                agencies, private nonprofit organizations, and 
                businesses and industries;
                    ``(v) the State Rehabilitation Advisory Council and 
                other advisory committees;
                    ``(vi) professional organization membership dues 
                for State unit employees;
                    ``(vii) the removal architectural barriers in State 
                vocational rehabilitation agency offices and State 
                operated rehabilitation facilities;
                    ``(viii) operating and maintaining State unit 
                facilities, equipment, and grounds;
                    ``(ix) supplies;
                    ``(x) administration of the comprehensive system of 
                personnel development, including personnel 
                administration, administration of affirmative action 
                plans, and training and staff development, 
                administrative salaries, including clerical and other 
                support staff salaries, in support of these functions;
                    ``(xi) travel costs related to carrying out the 
                program, other than travel costs related to the 
                provision of services;
                    ``(xii) costs incurred in conducting reviews of 
                rehabilitation counselor or coordinator determinations; 
                and
                    ``(xiii) legal expenses required in the 
                administration of the program.''; and
            (5) by redesignating paragraphs (36), (22), (23), (24), 
        (25), (1), (2), (3), (26), (4), (5), (6), (27), (7), (28), 
        (29), (30), (20), (21), (8), (31), (15), (32), (9), (10), (33), 
        (11), (19), (13), (14), (16), (18), (34), (35), and (17) as 
        paragraphs (1) through (35), respectively.

SEC. 2103. REPORTS.

    Section 13 of the Rehabilitation Act of 1973 (29 U.S.C. 712) is 
amended by inserting after the third sentence ``The Commissioner shall 
also annually collect information with respect to the title I, 
vocational rehabilitation services program, on administrative costs and 
other expenditures under the program.''.

SEC. 2104. BUY-AMERICAN REQUIREMENTS.

    (a) In General.--The Rehabilitation Act of 1973 (29 U.S.C. 701 et 
seq.) is amended by inserting after section 21 the following:

``SEC. 22. BUY-AMERICAN REQUIREMENTS.

    ``(a) Compliance With Buy American Act.--None of the funds made 
available in this Act may be expended by an entity unless the entity 
agrees that in expending the funds the entity will comply with the Buy 
American Act (41 U.S.C. 10a-10c).
    ``(b) Sense of Congress; Requirement Regarding Notice.--
            ``(1) Purchase of american-made equipment and products.--In 
        the case of any equipment or product that may be authorized to 
        be purchased with financial assistance provided using funds 
        made available in this Act, it is the sense of the Congress 
        that entities receiving the assistance should, in expending the 
        assistance, purchase only American-made equipment and products.
            ``(2) Notice to recipients of assistance.--In providing 
        financial assistance using funds made available in this Act, 
        the head of each Federal agency shall provide to each recipient 
        of the assistance a notice describing the statement made in 
        paragraph (1) by the Congress.
    ``(c) Prohibition of Contracts With Persons Falsely Labeling 
Products as Made in America.--If it has been finally determined by a 
court or Federal agency that any person intentionally affixed a label 
bearing a `Made in America' inscription, or any inscription with the 
same meaning, to any product sold in or shipped to the United States 
that is not made in the United States, the person shall be ineligible 
to receive any contract or subcontract made with funds made available 
in this Act, pursuant to the debarment, suspension, and ineligibility 
procedures described in sections 9.400 through 9.409 of title 48, Code 
of Federal Regulations.''.
    (b) Conforming Amendment.--The table of contents of such Act (29 
U.S.C. 701 note) is amended by inserting after the item relating to 
section 21 the following:

``Sec. 172. Buy-American requirements.''.

      TITLE XXII--AMENDMENTS TO VOCATIONAL REHABILITATION SERVICES

                     Subtitle A--General Provisions

SEC. 2201. DECLARATION OF POLICY; AUTHORIZATION OF APPROPRIATIONS.

    (a) Declaration of Policy.--Section 100(a)(3)(C) of the 
Rehabilitation Act of 1973 (29 U.S.C. 720(a)(3)(C)) is amended to read 
as follows:

                    ``(C) Applicants and eligible individuals must be 
                active and full partners in the vocational 
                rehabilitation process, making meaningful and informed 
                choices--
                            ``(i) during assessments to determine 
                        eligibility and vocational rehabilitation 
                        needs; and
                            ``(ii) in the selection of the employment 
                        goal, services needed to achieve the goal, 
                        entities providing such services, and the 
                        methods used to procure such services.''.
    (b) Authorization of Appropriations.--Section 100(b) of the 
Rehabilitation Act of 1973 (29 U.S.C. 720(b)) is amended in each of 
paragraphs (1) and (2) by striking ``fiscal years 1993 through 1997'' 
and inserting ``fiscal years 1998, 1999, and 2000''.

SEC. 2202. STATE PLANS.

    Section 101(a) of the Rehabilitation Act of 1973 (29 U.S.C. 721(a)) 
is amended--
            (1) in paragraph (4)--
                    (A) by striking ``, except that in the case'' and 
                inserting ``, except that--
            ``(A) in the case'';
                    (B) by striking ``to the extent permitted by such 
                regulations,'';
                    (C) by inserting ``and'' after the semicolon; and
                    (D) by adding at the end the following:
            ``(B) in the case of earmarked funds used as the State 
        match for Federal funds, where such funds are earmarked for 
        particular geographic areas within a State;'';
            (2) in paragraph (7)(A) to read as follows:
            ``(A) include a description, consistent with the purposes 
        of this Act, of a comprehensive system of personnel 
        development, which, at a minimum, shall consist of--
                    ``(i) a description of the procedures and 
                activities the State agency will undertake to address 
                the current and projected training needs of all 
                personnel in the designated State unit to ensure that 
                they 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 institutions to 
                recruit, prepare, and retain qualified personnel, 
                including personnel from minority backgrounds and 
                personnel who are individuals with disabilities; and
                    ``(iii) the development and maintenance of a system 
                for determining on an annual basis the number and type 
                of personnel that are employed by the State agency in 
                the provision of vocational rehabilitation services, 
                including ratios of counselors to clients;'';
            (3) in paragraph (11)(A)--
                    (A) by inserting ``the Rural Development 
                Administration of the Department of Agriculture,'' 
                after ``the Department of Veterans Affairs,'';
                    (B) by striking ``(20 U.S.C. 2301 et seq.), and'' 
                and inserting ``(20 U.S.C. 2301 et seq.),''; and
                    (C) by inserting after ``(41 U.S.C. 46 et seq.)'' 
                the following: ``, and State use contracting 
                programs'';
            (4) by striking paragraph (13);
            (5) by striking paragraph (17);
            (6) in paragraph (24)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``students who are individuals'' and inserting 
                ``students''; and
                    (B) in subparagraph (B), by striking 
                ``individualized written rehabilitation program'' and 
                inserting ``individualized education program'';
            (7) in paragraph (25), by striking ``Secretary'' and 
        inserting ``Commissioner'';
            (8) in paragraph (28), by adding at the end before the 
        semicolon the following: ``and State use contracting 
        programs'';
            (9) by striking paragraph (30);
            (10) in paragraph (33), by striking ``and working 
        relationships'';
            (11) in paragraph (35), by striking ``and'' at the end;
            (12) in paragraph (36)--
                    (A) in subparagraph (B)(i), by moving the margin 
                two ems to the left;
                    (B) in clauses (i), (ii), and (iii) of subparagraph 
                (C) (including subclause (II) of each of such clauses 
                (ii) and (iii)), by moving the margin two ems to the 
                left; and
                    (C) by striking the period at the end and inserting 
                ``; and'';
            (13) by adding at the end the following:
    ``(37) provide assurances that the State, or any recipient of funds 
made available to the State under this title, will comply with the 
guidelines established under section 508(a) of this Act.''; and
            (14) by redesignating paragraphs (14), (15), (16), (18) 
        through (22), (24) through (29), and (31) through (37) as 
        paragraphs (13) through (33), respectively.

SEC. 2203. INDIVIDUALIZED PLAN FOR EMPLOYMENT.

    (a) Section Heading.--Section 102 of the Rehabilitation Act of 1973 
(29 U.S.C. 722) is amended in the section heading by striking 
``individualized written rehabilitation program'' and inserting 
``individualized plan for employment''.
    (b) Assessment.--Section 102(b) of such Act (29 U.S.C. 722(b)) is 
amended to read as follows:
    ``(b)(1) As soon as a determination has been made that an 
individual is eligible for vocational rehabilitation services, the 
designated State unit shall complete the assessment described in 
subparagraphs (B) and (C) of section 7(2), if such assessment is 
necessary, and ensure that an individualized plan for employment is--
            ``(A) either--
                    ``(i) at the request of the individual, developed 
                by the individual or, as appropriate, the eligible 
                individual's representative and approved by the 
                vocational rehabilitation counselor; or
                    ``(ii) developed and approved by the individual or, 
                as appropriate, by a parent, a family member, a 
                guardian, an advocate, or an authorized representative 
                of such individual (hereafter referred to in this 
                subsection as the `eligible individual's 
                representative') and the vocational rehabilitation 
                counselor;
            ``(B) based on the findings of the assessment to determine 
        the individual's eligibility and vocational rehabilitation 
        needs described in section 7(2);
            ``(C) written, and, as appropriate, otherwise documented, 
        and provided to the individual or, as appropriate, to the 
        eligible individual's representative in the native language or 
        mode of communication of the individual or, as appropriate, of 
        the eligible individual's representative;
            ``(D) implemented in a timely manner;
            ``(E) reviewed at least annually by the vocational 
        rehabilitation counselor and the individual or, as appropriate, 
        the eligible individual's representative; and
            ``(F) amended, as necessary, by the individual or, as 
        appropriate, the eligible individual's representative, in 
        collaboration with the counselor, when there are substantive 
        changes in the employment goal, the services to be provided, or 
        the service providers (such revisions or amendments shall not 
        take effect until agreed to and signed by the individual or, as 
        appropriate, by the eligible individual's representative, and 
        the vocational rehabilitation counselor).
    ``(2) The individual plan for employment shall be developed and 
implemented in a manner that affords eligible individuals the 
opportunity to exercise informed choice in selecting the employment 
goal, the specific vocational rehabilitation services to be provided, 
the entity or entities that will provide the vocational rehabilitation 
services, and the methods used to procure the services, consistent with 
the informed choice provisions in subsection (e).
    ``(3) The individualized plan for employment shall identify--
            ``(A) the specific employment goal that is chosen by the 
        individual, consistent with the unique strengths, resources, 
        priorities, concerns, abilities, capabilities, and informed 
        choice of the individual, and is, to the maximum extent 
        appropriate, in an integrated setting;
            ``(B) the specific vocational rehabilitation services that 
        are--
                    ``(i) needed to achieve the employment goal, 
                including, as appropriate, assistive technology devices 
                and services, and personal assistance services, 
                including training in the management of such services; 
                and
                    ``(ii) provided in the most integrated setting that 
                is appropriate to the service being provided and is 
                consistent with the informed choice of the individual;
            ``(C) the entity or entities chosen by the individual or, 
        as appropriate, the eligible individual's representative, that 
        will provide the vocational rehabilitation services and the 
        methods used to procure such services;
            ``(D) timelines for the achievement of the employment goal 
        and for the initiation of services;
            ``(E) the terms and conditions of the individualized plan 
        for employment, including--
                    ``(i) the responsibilities of the designated State 
                unit and the individual under such plan, including 
                participation in the costs of the plan;
                    ``(ii) criteria to evaluate progress toward 
                achievement of the employment goal; and
                    ``(iii) the use of comparable services and benefits 
                under such plan, in accordance with section 101(a)(8);
            ``(F) prior to the determination that the individual has 
        achieved an employment outcome, the expected need for post-
        employment services; and
            ``(G) the rights and remedies available to the individual 
        as provided in subsection (d), including notification of the 
        availability of assistance from the client assistance program 
        under section 112 of this Act.
    ``(4) For an individual with the most severe disabilities for whom 
an employment goal in a supported employment setting has been 
determined to be appropriate, the individualized plan for employment 
shall, in addition to the requirements identified in subsection (b)(3), 
identify--
            ``(A) the extended services needed by the individual;
            ``(B) the source of extended services or, to the extent 
        that the sources to provide the extended services cannot be 
        identified at the time of the development of the individualized 
        plan for employment, a description of the basis for concluding 
        that there is a reasonable expectation that such sources will 
        become available; and
            ``(C) in cases in which multiple extended service providers 
        are available to the individual, the providers of such services 
        chosen by the individual or, as appropriate, the eligible 
        individual's representative.''.
    (c) Informed Choice.--Section 102 of such Act (29 U.S.C. 722) is 
amended by adding at the end the following:
    ``(e) Each State agency, in consultation with its State 
Rehabilitation Advisory Council, if it has one, shall, consistent with 
section 100(a)(3)(C), develop and implement written policies and 
procedures that enable each individual to exercise informed choice 
throughout the vocational rehabilitation process, including policies 
and procedures that require the State agency--
            ``(1) to inform each applicant and eligible individual 
        (including students with disabilities 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;
            ``(2) to assist applicants and eligible individuals to 
        exercise informed choice in decisions related to the provision 
        of assessment services;
            ``(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;
            ``(4) to provide or assist eligible individuals in 
        acquiring information that enables those individuals to 
        exercise informed choice in the selection of--
                    ``(A) the employment goal;
                    ``(B) the specific services needed to achieve the 
                individual's employment goal;
                    ``(C) the providers of the selected services;
                    ``(D) the employment setting and the settings in 
                which services are provided; and
                    ``(E) the methods available for procuring the 
                selected services; and
            ``(5) to ensure that the availability and scope of informed 
        choice under this section is consistent with the State agency's 
        obligations under section 12(e).''.
    (d) Conforming Amendment.--Section 102 of such Act (29 U.S.C. 722) 
is amended by striking ``individualized written rehabilitation 
program'' each place it appears and inserting ``individualized plan for 
employment''.

SEC. 2204. SCOPE OF VOCATIONAL REHABILITATION SERVICES.

    Section 103(a) of the Rehabilitation Act of 1973 (29 U.S.C. 723(a)) 
is amended--
            (1) by striking paragraph (7); and
            (2) by redesignating paragraphs (8) through (16) as 
        paragraphs (7) through (15), respectively.

SEC. 2205. STATE REHABILITATION ADVISORY COUNCIL.

    Section 105 of the Rehabilitation Act of 1973 (29 U.S.C. 725) is 
amended by striking subsection (i).

SEC. 2206. EVALUATION STANDARDS AND PERFORMANCE INDICATORS.

    Section 106(a) of the Rehabilitation Act of 1973 (29 U.S.C. 726(a)) 
is amended in paragraph (1) by adding at the end the following: ``After 
such date, the Commissioner shall review and, if necessary, revise the 
evaluation standards and performance indicators every three years. Any 
necessary revisions 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 proposed revisions shall be subject to 
the notice, publication, and comment provisions described in paragraph 
(3).''.

SEC. 2207. MONITORING AND REVIEW.

    Section 107(a) of the Rehabilitation Act of 1973 (29 U.S.C. 727(a)) 
is amended by adding at the end the following:
            ``(5) Monitoring and review reports.--Any reports detailing 
        the findings of the annual reviews and periodic on-site 
        monitoring visits shall be made available to the State 
        Rehabilitation Advisory Council for use in the development and 
        modification of the State plan.''.

          Subtitle B--Basic Vocational Rehabilitation Services

SEC. 2211. STATE ALLOTMENTS.

    Section 110(d)(2) of the Rehabilitation Act of 1973 (29 U.S.C. 
730(d)(2)) is amended--
            (1) by striking ``the Secretary--'' and all that follows 
        through ``(B) not less than'' and inserting ``the Secretary, 
        not less than''; and
            (2) by striking ``fiscal years 1995, 1996, and 1997'' and 
        inserting ``fiscal years 1998, 1999, and 2000''.

SEC. 2212. PAYMENTS TO STATES.

    Section 111(a)(2)(B) of the Rehabilitation Act of 1973 (29 U.S.C. 
731(a)(2)(B)) is amended--
            (1) by striking clause (i); and
            (2) by striking ``(ii)''.

SEC. 2213. CLIENT ASSISTANCE PROGRAM.

    Section 112(h) of the Rehabilitation Act of 1973 (29 U.S.C. 732(h)) 
is amended by striking ``fiscal years 1993 through 1997'' and inserting 
``fiscal years 1998, 1999, and 2000''.

            TITLE XXIII--AMENDMENTS TO RESEARCH AND TRAINING

SEC. 2221. AUTHORIZATION OF APPROPRIATIONS.

    Section 201(a) of the Rehabilitation Act of 1973 (29 U.S.C. 761(a)) 
is amended--
            (1) in paragraph (1), by striking ``each of fiscal years 
        1993 through 1997'' and inserting ``fiscal years 1998, 1999, 
        and 2000''; and
            (2) in paragraph (2), by striking ``each of fiscal years 
        1993 through 1997'' and inserting ``fiscal years 1998, 1999, 
        and 2000''.

SEC. 2222. NATIONAL INSTITUTE ON DISABILITY AND REHABILITATION 
              RESEARCH.

    Section 202(c) of the Rehabilitation Act of 1973 (29 U.S.C. 
761a(c)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``, except that'' and all that 
                follows through ``continue to serve as Director''; and
                    (B) by striking the third and fourth sentences;
            (2) by striking paragraph (2);
            (3) in paragraph (3)--
                    (A) by striking ``ncessary'' and inserting 
                ``necessary''; and
                    (B) by redesignating such paragraph as paragraph 
                (2); and
            (4) by redesignating paragraph (4) as paragraph (3).

     TITLE XXIV--AMENDMENTS TO TRAINING AND DEMONSTRATION PROJECTS

  Subtitle A--Training Programs and Community Rehabilitation Programs

SEC. 2231. DECLARATION OF PURPOSE.

    Section 301(1)(A) of the Rehabilitation Act of 1973 (29 U.S.C. 
770(1)(A)) is amended by inserting after ``independent living services 
programs'' the following: ``, through community economic or business 
development programs''.

SEC. 2232. TRAINING.

    Section 302 of the Rehabilitation Act of 1973 (29 U.S.C. 771a) is 
amended--
            (1) in subsection (a)(1)--
                    (A) by striking ``and (E)'' and inserting ``(E)'';
                    (B) by striking the period at the end and inserting 
                the following: ``, and (F) personnel specifically 
                trained to deliver services to individuals whose 
                vocational goal is self-employment or business 
                ownership.'';
            (2) in subsection (b)(1)(B)--
                    (A) in clause (ii)--
                            (i) by redesignating subclauses (IV) and 
                        (V) as subclauses (V) and (VI), respectively; 
                        and
                            (ii) by inserting after subclause (III) the 
                        following:
                                    ``(IV) assistance and support to 
                                individuals pursuing self-employment or 
                                business ownership as their 
                                rehabilitation goal;''; and
                    (B) in clause (iv), by moving the margin two ems to 
                the left;
            (3) by striking subsection (e);
            (4) in subsection (g)(3)(A)--
                    (A) in clause (ii), by adding ``and'' at the end;
                    (B) in clause (iii), by striking ``; and'' and 
                inserting a period; and
                    (C) by striking clause (iv); and
            (5) in subsection (h), by striking ``fiscal years 1993 
        through 1997'' and inserting ``fiscal years 1998, 1999, and 
        2000''; and
            (6) by redesignating subsections (f) through (i) as 
        subsections (e) through (h), respectively.

SEC. 2233. REPEALERS.

    (a) In General.--Sections 303, 304, 305, and 306 of the 
Rehabilitation Act of 1973 (29 U.S.C. 772, 773, 775, and 776) are 
hereby repealed.
    (b) Conforming Amendment.--The table of contents of such Act (29 
U.S.C. 701 note) is amended by striking the items relating to sections 
303, 304, 305, and 306.

SEC. 2234. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--Section 310 of the Rehabilitation Act of 1973 (29 
U.S.C. 777) is amended--
            (1) by striking ``each of fiscal years 1993 through 1997'' 
        and inserting ``fiscal years 1998, 1999, and 2000'';
            (2) by redesignating such section as section 303; and
            (3) by inserting such section after section 302.
    (b) Conforming Amendment.--The table of contents of such Act (29 
U.S.C. 701 note) is amended--
            (1) by striking the item relating to section 310 (as such 
        section was in effect prior to the redesignation of such 
        section under subsection (a)(2)); and
            (2) by inserting after the item relating to section 302 the 
        following:

``Sec. 303. Authorization of appropriations.''.

        Subtitle B--Special Projects and Supplementary Services

SEC. 2241. SPECIAL DEMONSTRATION PROGRAMS.

    Section 311 of the Rehabilitation Act of 1973 (29 U.S.C. 777a) is 
amended--
            (1) in subsection (a)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``Subject to the provisions of section 306, 
                the'' and inserting ``The'';
                    (B) in paragraph (3), by striking ``and'' at the 
                end;
                    (C) in paragraph (4), by striking the period at the 
                end and inserting ``; and''; and
                    (D) by adding at the end the following:
            ``(5) establishing programs for supporting the effects of 
        vocational rehabilitation programs to promote self-employment 
        or business ownership goals of people with disabilities.''.
            (2) by striking subsection (b);
            (3) in subsections (c) and (d), by striking ``fiscal years 
        1993 through 1997'' each place it appears and inserting 
        ``fiscal years 1998, 1999, and 2000''
            (4) by striking subsection (e); and
            (5) by redesignating subsections (c), (d), and (f) as 
        subsections (b), (c), and (d), respectively.

SEC. 2242. MIGRATORY WORKERS.

    Section 312(b) of the Rehabilitation Act of 1973 (29 U.S.C. 
777b(b)) is amended by striking ``fiscal years 1993 through 1997'' and 
inserting ``fiscal years 1998, 1999, and 2000''.

SEC. 2243. REPEALERS.

    (a) In General.--Sections 314 and 315 of the Rehabilitation Act of 
1973 (29 U.S.C. 777d and 777e) are hereby repealed.
    (b) Conforming Amendment.--The table of contents of such Act (29 
U.S.C. 701 note) is amended by striking the items relating to sections 
314 and 315.

SEC. 2244. SPECIAL RECREATIONAL PROGRAMS.

    (a) In General.--Section 316 of the Rehabilitation Act of 1973 (29 
U.S.C. 777f) is amended--
            (1) in subsection (b), by striking ``fiscal years 1993 
        through 1997'' and inserting ``fiscal years 1998, 1999, and 
        2000'';
            (2) by redesignating such section as section 313; and
            (3) by inserting such section after section 312, as amended 
        by this Act.
    (b) Conforming Amendment.--The table of contents of such Act (29 
U.S.C. 701 note) is amended--
            (1) by striking the item relating to section 316 (as such 
        section was in effect prior to the redesignation of such 
        section under subsection (a)(2)); and
            (2) by inserting after the item relating to section 312 the 
        following:

``Sec. 313. Special recreational programs.''.

        TITLE XXV--AMENDMENTS TO NATIONAL COUNCIL ON DISABILITY

SEC. 2251. AUTHORIZATION OF APPROPRIATIONS.

    Section 405 of the Rehabilitation Act of 1973 (29 U.S.C. 785) is 
amended by striking ``fiscal years 1993 through 1997'' and inserting 
``fiscal years 1998, 1999, and 2000''.

             TITLE XXVI--AMENDMENTS TO RIGHTS AND ADVOCACY

SEC. 2261. EMPLOYMENT OF INDIVIDUALS WITH DISABILITIES.

    Section 501(a) of the Rehabilitation Act of 1973 (29 U.S.C. 791(a)) 
is amended in the third sentence by striking ``the Handicapped'' and 
inserting ``People With Disabilities''.

SEC. 2262. ARCHITECTURAL AND TRANSPORTATION BARRIERS COMPLIANCE BOARD.

    Section 502 of the Rehabilitation Act of 1973 (29 U.S.C. 792) is 
amended--
            (1) in subsection (a), by striking ``Chairperson'' and 
        inserting ``chairperson''; and
            (2) in subsection (g)(2), by striking ``Committee on 
        Education and Labor'' and inserting ``Committee on Education 
        and the Workforce''.

SEC. 2263. PROTECTION AND ADVOCACY OF INDIVIDUAL RIGHTS.

    Section 509 of the Rehabilitation Act of 1973 (29 U.S.C. 794e) is 
amended--
            (1) by redesignating subsection (n) as subsection (i);
            (2) in subsection (l), by striking ``Committee on Education 
        and Labor'' and inserting ``Committee on Education and the 
        Workforce''; and
            (3) in subsection (m), by striking ``each of the fiscal 
        years 1993, 1994, 1995, 1996, and 1997'' and inserting ``each 
        of the fiscal years 1998, 1999, and 2000''.

SEC. 2264. REQUIREMENT THAT FEDERAL AGENCIES PROVIDE CERTIFICATION OF 
              COMPLIANCE WITH ELECTRONIC AND INFORMATION TECHNOLOGY 
              ACCESSIBILITY GUIDELINES.

    Section 508(b) of the Rehabilitation Act of 1973 (29 U.S.C 794d(b)) 
is amended to read as follows:
    ``(b) Compliance.--
            ``(1) In general.--Each Federal agency shall comply with 
        the guidelines established under this section.
            ``(2) Certification.--
                    ``(A) Establishment of certification procedures.--
                The Director of the Office of Management and Budget 
                shall establish uniform procedures under which the head 
                of each Federal agency shall submit to the Director a 
                written certification, containing such information as 
                the Director may reasonably require, that such agency 
                is in compliance with the guidelines established under 
                this section.
                    ``(B) Submission of certification.--Not later than 
                September 30 of each year, the head of each Federal 
                agency shall submit to the Director of the Office of 
                Management and Budget a written certification in 
                accordance with the procedures established under 
                subparagraph (A).
                    ``(C) Review of certification.--The Director of the 
                Office of Management and Budget--
                            ``(i) shall review each certification 
                        submitted by each Federal agency under 
                        subparagraph (B); and
                            ``(ii) shall provide notice to each such 
                        Federal agency that such agency is either in 
                        compliance or not in compliance with the 
                        guidelines established under this section, as 
                        the case may be.
                    ``(D) Assistance for and monitoring of agencies not 
                in compliance.--In the case of a Federal agency that is 
                not in compliance with the guidelines established under 
                this section, the Director of the Office of Management 
                and Budget--
                            ``(i) shall assist such agency in its 
                        efforts to comply with such guidelines; and
                            ``(ii) shall monitor the progress of such 
                        agency to comply with such guidelines.''.

  TITLE XXVII--AMENDMENTS TO EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS 
                           WITH DISABILITIES

SEC. 2271. AUTHORIZATION OF APPROPRIATIONS.

    Sections 622 and 638 of the Rehabilitation Act of 1973 (29 U.S.C. 
795i and 795q) are each amended by striking ``each of fiscal years 1993 
through 1997'' and inserting ``each of the fiscal years 1998, 1999, and 
2000''.

SEC. 2272. REPEALERS.

    (a) In General.--Parts A and D of title VI of the Rehabilitation 
Act of 1973 (29 U.S.C. 795 et seq. and 795r) are hereby repealed.
    (b) Conforming Amendments.--
            (1) In general.--Parts B and C of title VI of such Act (29 
        U.S.C. 795g et seq. and 795k et seq.) are redesignated as parts 
        A and B of title VI of such Act, respectively.
            (2) Table of contents.--The table of contents of such Act 
        (29 U.S.C. 701 note) is amended--
                    (A) by striking the items relating to parts A and D 
                of title VI (as such parts were in effect prior to the 
                repeal of such parts under subsection (a)); and
                    (B) by redesignating the items relating to parts B 
                and C of title VI (as such parts were in effect prior 
                to the redesignation of such parts under paragraph (1)) 
                as items relating to parts A and B of title VI of such 
                Act, respectively.

TITLE XXVIII--AMENDMENTS TO INDEPENDENT LIVING SERVICES AND CENTERS FOR 
                           INDEPENDENT LIVING

SEC. 2281. AUTHORIZATION OF APPROPRIATIONS.

    (a) Sections 714 and 727.--Sections 714 and 727 of the 
Rehabilitation Act of 1973 (29 U.S.C. 796e-3 and 796f-6) are amended by 
striking ``each of the fiscal years 1993, 1994, 1995, 1996, and 1997'' 
and inserting ``each of the fiscal years 1998, 1999, and 2000''.
    (b) Section 753.--Section 753 of such Act (29 U.S.C. 796l) is 
amended by striking ``each of the fiscal years 1993 through 1997'' and 
inserting ``each of the fiscal years 1998, 1999, and 2000''.

SEC. 2282. PROGRAM AUTHORIZATION FOR CENTERS FOR INDEPENDENT LIVING.

    Section 721(c)(1)(A) of the Rehabilitation Act of 1973 (29 U.S.C. 
796f(c)(1)(A)) is amended by striking ``,,'' and inserting a comma.

 TITLE XXIX--AMENDMENTS TO SPECIAL DEMONSTRATIONS AND TRAINING PROJECTS

SEC. 2291. AUTHORIZATION OF APPROPRIATIONS.

    Section 801 of the Rehabilitation Act of 1973 (29 U.S.C. 797) is 
amended by striking ``1993 through 1997.'' each place such term appears 
and inserting ``1998 through 2000.''.

SEC. 2292. DEMONSTRATION ACTIVITIES.

    Section 802 of the Rehabilitation Act of 1973 (29 U.S.C. 797a) is 
amended to read as follows:

``SEC. 802. DEMONSTRATION PROJECTS TO INCREASE CLIENT CHOICE.

    ``(a) Grants.--The Commissioner may make grants to States and 
public or nonprofit agencies and organizations to pay all or part of 
the costs of projects to demonstrate ways to increase client choice in 
the rehabilitation process, including the selection of providers of 
vocational rehabilitation services.
    ``(b) Use of Funds.--An entity that receives a grant under this 
section shall use the grant only--
            ``(1) for activities that are directly related to planning, 
        operating, and evaluating the demonstration projects; and
            ``(2) to supplement, and not supplant, funds made available 
        from Federal and non-Federal sources for such projects.
    ``(c) Application.--Any eligible entity that desires to receive a 
grant under this section shall submit an application at such time, in 
such manner, and containing such information and assurances as the 
Commissioner may require, including--
            ``(1) a description of--
                    ``(A) how the applicant intends to promote 
                increased client choice in the rehabilitation process, 
                including a description, if appropriate, of how an 
                applicant will determine the cost of any service or 
                product offered to an eligible client;
                    ``(B) how the applicant intends to ensure that any 
                vocational rehabilitation service or related service is 
                provided by a qualified provider who is accredited or 
                meets such other quality assurance and cost-control 
                criteria as the State may establish; and
                    ``(C) the outreach activities to be conducted by 
                the applicant to obtain eligible clients; and
            ``(2) assurances that a written plan will be established 
        with the full participation of the client, which plan shall, at 
        a minimum, include--
                    ``(A) a statement of the vocational rehabilitation 
                goals to be achieved;
                    ``(B) a statement of the specific vocational 
                rehabilitation services to be provided, the projected 
                dates for their initiation, and the anticipated 
                duration of each such service; and
                    ``(C) objective criteria, an evaluation procedure, 
                and a schedule, for determining whether such goals are 
                being achieved.
    ``(d) Award of Grants.--In selecting entities to receive grants 
under subsection (a), the Commissioner shall take into consideration 
the--
            ``(1) diversity of strategies used to increase client 
        choice, including selection among qualified service providers;
            ``(2) geographic distribution of projects; and
            ``(3) diversity of clients to be served.
    ``(e) Records.--Entities that receive grants under subsection (a) 
shall maintain such records as the Commissioner may require and comply 
with any request from the Commissioner for such records.
    ``(f) Direct Services.--At least 80 percent of the funds awarded 
for any project under this section shall be used for direct services, 
as specifically chosen by eligible clients.
    ``(g) Evaluation.--The Commissioner shall conduct an evaluation of 
the demonstration projects with respect to the services provided, 
clients served, client outcomes obtained, implementation issues 
addressed, the cost effectiveness of the project, and the effects of 
increased choice on clients and service providers. The Commissioner may 
reserve funds for the evaluation for a fiscal year from the amounts 
appropriated to carry out projects under this section for the fiscal 
year.
    ``(h) Definitions.--For the purposes of this section:
            ``(1) Direct services.--The term `direct services' means 
        vocational rehabilitation services, as described in section 
        103(a).
            ``(2) Eligible client.--The term `eligible client' means an 
        individual with a disability, as defined in section 7(8)(A), 
        who is not currently receiving services under an individualized 
        written rehabilitation program established through a designated 
        State unit.''.

SEC. 2293. TRAINING ACTIVITIES.

    (a) In General.--Section 803 of the Rehabilitation Act of 1973 (29 
U.S.C. 797b) is amended--
            (1) by striking subsections (d) and (e) and redesignating 
        subsection (f) as subsection (d);
            (2) in subsection (d) (as so redesignated by paragraph 
        (1))--
                    (A) by striking ``(g)'' and inserting ``(f)''; and
                    (B) by striking the last sentence; and
            (3) by striking subsection (a) and redesignating 
        subsections (b) through (d) (as so redesignated by paragraph 
        (1)) as subsections (a) through (c).
    (b) Effective Dates.--
            (1) Paragraphs (1) and (2).--The amendments made by 
        paragraphs (1) and (2) of subsection (a) shall take effect on 
        October 1, 1997.
            (2) Subsection (a)(3).--The amendment made by paragraph (3) 
        of subsection (a) shall take effect on October 1, 1998.

     TITLE XXX--AMENDMENTS TO THE HELEN KELLER NATIONAL CENTER ACT

SEC. 2295. AUTHORIZATION OF APPROPRIATIONS.

    Section 205(a) of the Helen Keller National Center Act (29 U.S.C. 
1904(a)) and section 208(h) of such Act (29 U.S.C. 1907(h)) are each 
amended by striking ``1993 through 1997'' and inserting ``1998, 1999, 
and 2000''.

                       TITLE XXXI--EFFECTIVE DATE

SEC. 2297. EFFECTIVE DATE.

    Except as provided in section 2293, this division and the 
amendments made by this division shall take effect on October 1, 1997.

            Passed the House of Representatives May 16, 1997.

            Attest:

                                                                 Clerk.