[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1186 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                S. 1186

     To provide for education and training, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 17, 1997

Mr. DeWine (for himself, Mr. Jeffords, Mr. Kennedy, and Mr. Wellstone) 
introduced the following bill; which was read twice and referred to the 
                 Committee on Labor and Human Resources

_______________________________________________________________________

                                 A BILL


 
     To provide for education and training, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Workforce 
Investment Partnership Act of 1997''.
    (b) Table of Contents.--The table of contents is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
      TITLE I--VOCATIONAL, TECHNOLOGICAL, AND TECH-PREP EDUCATION

Sec. 101. Short title.
Sec. 102. Findings and purpose.
Sec. 103. Voluntary selection and participation.
                    Subtitle A--Vocational Education

                     Chapter 1--Federal Provisions

Sec. 111. Reservations and State allotment.
Sec. 112. Performance measures and expected levels of performance.
Sec. 113. Assistance for the outlying areas.
Sec. 114. Indian and Hawaiian Native programs.
Sec. 115. Tribally controlled postsecondary vocational institutions.
Sec. 116. Incentive grants.
                      Chapter 2--State Provisions

Sec. 121. State administration.
Sec. 122. State use of funds.
Sec. 123. State leadership activities.
Sec. 124. State plan.
                      Chapter 3--Local Provisions

Sec. 131. Distribution for secondary school vocational education.
Sec. 132. Distribution for postsecondary vocational education.
Sec. 133. Local activities.
Sec. 134. Local application.
                    Subtitle B--Tech-Prep Education

Sec. 151. Short title.
Sec. 152. Purposes.
Sec. 153. Definitions.
Sec. 154. Program authorized.
Sec. 155. Tech-prep education programs.
Sec. 156. Applications.
Sec. 157. Authorization of appropriations.
                     Subtitle C--General Provisions

Sec. 161. Administrative provisions.
Sec. 162. Evaluation, improvement, and accountability.
Sec. 163. National activities.
Sec. 164. National assessment of vocational education programs.
Sec. 165. National research center.
Sec. 166. Data systems.
              Subtitle D--Authorization of Appropriations

Sec. 171. Authorization of appropriations.
                           Subtitle E--Repeal

Sec. 181. Repeal.
                 TITLE II--ADULT EDUCATION AND LITERACY

Sec. 201. Short title.
Sec. 202. Findings and purpose.
           Subtitle A--Adult Education and Literacy Programs

                     Chapter 1--Federal Provisions

Sec. 211. Reservation; grants to States; allotments.
Sec. 212. Performance measures and expected levels of performance.
Sec. 213. National leadership activities.
                      Chapter 2--State Provisions

Sec. 221. State administration.
Sec. 222. State distribution of funds; State share.
Sec. 223. State leadership activities.
Sec. 224. State plan.
Sec. 225. Programs for corrections education and other 
                            institutionalized individuals.
                      Chapter 3--Local Provisions

Sec. 231. Grants and contracts for eligible providers.
Sec. 232. Local application.
Sec. 233. Local administrative cost limits.
                     Chapter 4--General Provisions

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

Sec. 251. Repeal.
         TITLE III--WORKFORCE INVESTMENT AND RELATED ACTIVITIES

              Subtitle A--Workforce Investment Activities

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

Sec. 301. General authorization.
Sec. 302. State allotments.
Sec. 303. Statewide partnership.
Sec. 304. State plan.
       Chapter 2--Allocations To Local Workforce Investment Areas

Sec. 306. Within State allocations.
Sec. 307. Local workforce investment areas.
Sec. 308. Local workforce investment partnerships and youth 
                            partnerships.
Sec. 309. Local plan.
        Chapter 3--Workforce Investment Activities and Providers

Sec. 311. Identification and oversight of one-stop partners and one-
                            stop customer service center operators.
Sec. 312. Determination and identification of eligible providers of 
                            training services by program.
Sec. 313. Identification of eligible providers of youth activities.
Sec. 314. Statewide workforce investment activities.
Sec. 315. Local employment and training activities.
Sec. 316. Local youth activities.
                     Chapter 4--General Provisions

Sec. 321. Accountability.
Sec. 322. Authorization of appropriations.
                         Subtitle B--Job Corps

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

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

Sec. 371. Requirements and restrictions.
Sec. 372. Prompt allocation of funds.
Sec. 373. Monitoring.
Sec. 374. Fiscal controls; sanctions.
Sec. 375. Reports; recordkeeping; investigations.
Sec. 376. Administrative adjudication.
Sec. 377. Judicial review.
Sec. 378. Nondiscrimination.
Sec. 379. Administrative provisions.
Sec. 380. State legislative authority.
             Subtitle E--Repeals and Conforming Amendments

Sec. 391. Repeals.
Sec. 392. Conforming amendments.
Sec. 393. Effective dates.
           TITLE IV--WORKFORCE INVESTMENT-RELATED ACTIVITIES

                     Subtitle A--Wagner-Peyser Act

Sec. 401. Definitions.
Sec. 402. Functions.
Sec. 403. Designation of State agencies.
Sec. 404. Appropriations.
Sec. 405. Disposition of allotted funds.
Sec. 406. State plans.
Sec. 407. Repeal of Federal Advisory Council.
Sec. 408. Regulations.
Sec. 409. Labor market information.
Sec. 410. Technical amendments.
                Subtitle B--Linkages With Other Programs

Sec. 421. Trade Act of 1974.
Sec. 422. National Apprenticeship Act.
Sec. 423. Veterans' employment programs.
Sec. 424. Older Americans Act of 1965.
                      TITLE V--GENERAL PROVISIONS

Sec. 501. State unified plans.
Sec. 502. Transition provisions.
Sec. 503. Effective date.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Adult.--In paragraph (14) and title III, the term 
        ``adult'' means an individual who is age 22 or older.
            (2) Adult education.--The term ``adult education'' means 
        services or instruction below the postsecondary level for 
        individuals--
                    (A) who have attained 16 years of age or who are 
                beyond the age of compulsory school attendance under 
                State law;
                    (B) who are not enrolled in secondary school; and
                    (C) who--
                            (i) lack sufficient mastery of basic 
                        educational skills to enable the individuals to 
                        function effectively in society;
                            (ii) do not possess a secondary school 
                        diploma or its recognized equivalent; or
                            (iii) are unable to speak, read, or write 
                        the English language.
            (3) Area vocational education school.--The term ``area 
        vocational education school'' means--
                    (A) a specialized public secondary school used 
                exclusively or principally for the provision of 
                vocational education for individuals who seek to study 
                and prepare for entering the labor market;
                    (B) the department of a public secondary school 
                exclusively or principally used for providing 
                vocational education in not fewer than 5 different 
                occupational fields to individuals who are available 
                for study in preparation for entering the labor market;
                    (C) a technical institute or vocational school used 
                exclusively or principally for the provision of 
                vocational education to individuals who have completed 
                or left public secondary school and who seek to study 
                and prepare for entering the labor market, if the 
                institute or school admits as regular students both 
                individuals who have completed public secondary school 
                and individuals who have left public secondary school; 
                or
                    (D) the department or division of a junior college, 
                community college, or university operating under the 
                policies of the eligible agency and that provides 
                vocational education in not fewer than 5 different 
                occupational fields leading to immediate employment but 
                not necessarily leading to a baccalaureate degree, if 
                the department or division admits as regular students 
                both individuals who have completed public secondary 
                school and individuals who have left public secondary 
                school.
            (4) Chief elected official.--The term ``chief elected 
        official'' means the chief elected executive officer of a unit 
        of general local government in a local area.
            (5) Disadvantaged adult.--In title III, and except as 
        provided in section 302, the term ``disadvantaged adult'' means 
        an adult who is a low-income individual.
            (6) Dislocated worker.--The term ``dislocated worker'' 
        means an individual who--
                    (A)(i) has been terminated or laid off, or who has 
                received a notice of termination or layoff, from 
                employment;
                    (ii)(I) is eligible for or has exhausted 
                entitlement to unemployment compensation; or
                    (II) has been employed for a duration sufficient to 
                demonstrate, to the appropriate entity at a one-stop 
                customer service center, attachment to the workforce, 
                but is not eligible for unemployment compensation due 
                to insufficient earnings or having performed services 
                for an employer that were not covered under a State 
                unemployment compensation law; and
                    (iii) is unlikely to return to a previous industry 
                or occupation;
                    (B)(i) has been terminated or laid off, or has 
                received a notice of termination or layoff, from 
                employment as a result of any permanent closure of, or 
                any substantial layoff at, a plant, facility, or 
                enterprise;
                    (ii) is employed at a facility at which the 
                employer has made a general announcement that such 
                facility will close within 180 days; or
                    (iii) for purposes of eligibility to receive 
                services under title III other than training services 
                described in section 315(c)(3), intensive services, or 
                supportive services, is employed at a facility at which 
                the employer has made a general announcement that such 
                facility will close;
                    (C) was self-employed (including employment as a 
                farmer, a rancher, or a fisherman) but is unemployed as 
                a result of general economic conditions in the 
                community in which the individual resides or because of 
                natural disasters; or
                    (D) is a displaced homemaker.
            (7) Displaced homemaker.--The term ``displaced homemaker'' 
        means an individual who has been providing unpaid services to 
        family members in the home and who--
                    (A) has been dependent on the income of another 
                family member but is no longer supported by that 
                income; and
                    (B) is unemployed or underemployed and is 
                experiencing difficulty in obtaining or upgrading 
                employment.
            (8) Economic development agencies.--The term ``economic 
        development agencies'' includes local planning and zoning 
        commissions or boards, community development agencies, and 
        other local agencies and institutions responsible for 
        regulating, promoting, or assisting in local economic 
        development.
            (9) Educational service agency.--The term ``educational 
        service agency'' means a regional public multiservice agency 
        authorized by State statute to develop and manage a service or 
        program, and provide the service or program to a local 
        educational agency.
            (10) Elementary school; local educational agency.--The 
        terms ``elementary school'' and ``local educational agency'' 
        have the meanings given the terms in section 14101 of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        8801).
            (11) Eligible agency.--The term ``eligible agency'' means--
                    (A) in the case of vocational education activities 
                or requirements described in title I--
                            (i) the individual, entity, or agency in a 
                        State or an outlying area responsible for 
                        administering or setting policy for vocational 
                        education in the State or outlying area, 
                        respectively, pursuant to the law of the State 
                        or outlying area, respectively; or
                            (ii) if no individual, entity, or agency is 
                        responsible for administering or setting such 
                        policy pursuant to the law of the State or 
                        outlying area, the individual, entity, or 
                        agency in a State or outlying area, 
                        respectively, responsible for administering or 
                        setting policy for vocational education in the 
                        State or outlying area, respectively, on the 
                        date of enactment of the Workforce Investment 
                        Partnership Act of 1997; and
                    (B) in the case of adult education and literacy 
                activities or requirements described in title II--
                            (i) the individual, entity, or agency in a 
                        State or an outlying area responsible for 
                        administering or setting policy for adult 
                        education and literacy in the State or outlying 
                        area, respectively, pursuant to the law of the 
                        State or outlying area, respectively; or
                            (ii) if no individual, entity, or agency is 
                        responsible for administering or setting such 
                        policy pursuant to the law of the State or 
                        outlying area, the individual, entity, or 
                        agency in a State or outlying area, 
                        respectively, responsible for administering or 
                        setting policy for adult education and literacy 
                        in the State or outlying area, respectively, on 
                        the date of enactment of the Workforce 
                        Investment Partnership Act of 1997.
            (12) Eligible institution.--In title I, the term ``eligible 
        institution'' means--
                    (A) an institution of higher education;
                    (B) a local educational agency providing education 
                at the postsecondary level;
                    (C) an area vocational education school providing 
                education at the postsecondary level;
                    (D) a postsecondary educational institution 
                controlled by the Bureau of Indian Affairs or operated 
                by or on behalf of any Indian tribe that is eligible to 
                contract with the Secretary of the Interior for the 
                administration of programs under the Indian Self-
                Determination Act or the Act of April 16, 1934 (48 
                Stat. 596; 25 U.S.C. 452 et seq.); and
                    (E) a consortium of 2 or more of the entities 
                described in subparagraphs (A) through (D).
            (13) Eligible provider.--The term ``eligible provider''--
                    (A) in title II, means--
                            (i) a local educational agency;
                            (ii) a community-based organization;
                            (iii) an institution of higher education;
                            (iv) a public or private nonprofit agency;
                            (v) a consortium of such agencies, 
                        organizations, or institutions; or
                            (vi) a library; and
                    (B) in title III, used with respect to--
                            (i) training services (other than on-the-
                        job training), means a provider who is 
                        identified in accordance with section 312;
                            (ii) youth activities, means a provider who 
                        is awarded a grant in accordance with section 
                        313; or
                            (iii) other workforce investment 
                        activities, means a public or private entity 
                        selected to be responsible for such activities, 
                        in accordance with subtitle A of title III, 
                        such as a one-stop customer service center 
                        operator designated or certified under section 
                        311.
            (14) Employment and training activity.--The term 
        ``employment and training activity'' means an activity 
        described in section 314(b)(1) or subsection (c)(1) or (d) of 
        section 315, carried out for an adult or dislocated worker.
            (15) English literacy program.--The term ``English literacy 
        program'' means a program of instruction designed to help 
        individuals of limited English proficiency achieve competence 
        in the English language.
            (16) Governor.--The term ``Governor'' means the chief 
        executive officer of a State.
            (17) Individual with a disability.--
                    (A) In general.--The term ``individual with a 
                disability'' means an individual with any disability 
                (as defined in section 3 of the Americans with 
                Disabilities Act of 1990 (42 U.S.C. 12102)).
                    (B) Individuals with disabilities.--The term 
                ``individuals with disabilities'' means more than 1 
                individual with a disability.
            (18) Individual of limited english proficiency.--The term 
        ``individual of limited English proficiency'' means an adult or 
        out-of-school youth who has limited ability in speaking, 
        reading, writing, or understanding the English language, and--
                    (A) whose native language is a language other than 
                English; or
                    (B) who lives in a family or community environment 
                where a language other than English is the dominant 
                language.
            (19) Institution of higher education.--Except for purposes 
        of subtitle B of title I, the term ``institution of higher 
        education'' has the meaning given the term in section 1201(a) 
        of the Higher Education Act of 1965 (20 U.S.C. 1141(a)).
            (20) Literacy.--
                    (A) In general.--The term ``literacy'' means an 
                individual's ability to read, write, and speak in 
                English, compute, and solve problems, at levels of 
                proficiency necessary to function on the job and in 
                society.
                    (B) Workplace literacy program.--The term 
                ``workplace literacy program'' means a program of 
                literacy activities that is offered in the workplace 
                for the purpose of improving the productivity of the 
                workforce through the improvement of literacy skills.
            (21) Local area.--In paragraph (4) and title III, the term 
        ``local area'' means a local workforce investment area 
        designated under section 307.
            (22) Local partnership.--In title III, the term ``local 
        partnership'' means a local workforce investment partnership 
        established under section 308(a).
            (23) Local performance measure.--The term ``local 
        performance measure'' means a performance measure established 
        under section 321(b).
            (24) Low-income individual.--In paragraph (49) and title 
        III, the term ``low-income individual'' means an individual 
        who--
                    (A) receives, or is a member of a family that 
                receives, cash payments under a Federal, State, or 
                local income-based public assistance program;
                    (B) received an income, or is a member of a family 
                that received a total family income, for the 6-month 
                period prior to application for the program involved 
                (exclusive of unemployment compensation, child support 
                payments, payments described in subparagraph (A), and 
                old-age and survivors insurance benefits received under 
                section 202 of the Social Security Act (42 U.S.C. 402)) 
                that, in relation to family size, does not exceed the 
                higher of--
                            (i) the poverty line, for an equivalent 
                        period; or
                            (ii) 70 percent of the lower living 
                        standard income level, for an equivalent 
                        period;
                    (C) is a member of a household that receives (or 
                has been determined within the 6-month period prior to 
                application for the program involved to be eligible to 
                receive) food stamps pursuant to the Food Stamp Act of 
                1977 (7 U.S.C. 2011 et seq.);
                    (D) qualifies as a homeless individual, as defined 
                in subsections (a) and (c) of section 103 of the 
                Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 
                11302);
                    (E) is a foster child on behalf of whom State or 
                local government payments are made; or
                    (F) in cases permitted by regulations of the 
                Secretary of Labor, is an individual with a disability 
                whose own income meets the requirements of a program 
                described in subparagraph (A) or of subparagraph (B), 
                but who is a member of a family whose income does not 
                meet such requirements.
            (25) Lower living standard income level.--The term ``lower 
        living standard income level'' means that income level 
        (adjusted for regional, metropolitan, urban, and rural 
        differences and family size) determined annually by the 
        Secretary of Labor based on the most recent lower living family 
        budget issued by the Secretary of Labor.
            (26) Nontraditional employment.--In titles I and III, the 
        term ``nontraditional employment'' refers to occupations or 
        fields of work for which individuals from one gender comprise 
        less than 25 percent of the individuals employed in each such 
        occupation or field of work.
            (27) On-the-job training.--The term ``on-the-job training'' 
        means training in the public or private sector that is provided 
        to a paid participant while engaged in productive work in a job 
        that--
                    (A) provides knowledge or skills essential to the 
                full and adequate performance of the job;
                    (B) provides reimbursement to employers of up to 50 
                percent of the wage rate of the participant, for the 
                extraordinary costs of providing the training and 
                additional supervision related to the training; and
                    (C) is limited in duration as appropriate to the 
                occupation for which the participant is being trained.
            (28) Out-of-school youth.--The term ``out-of-school youth'' 
        means--
                    (A) a youth who is a school dropout; or
                    (B) a youth who has received a secondary school 
                diploma or its equivalent but is basic literacy skills 
                deficient, unemployed, or underemployed.
            (29) Outlying area.--The term ``outlying area'' means the 
        United States Virgin Islands, Guam, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, the Republic of 
        the Marshall Islands, the Federated States of Micronesia, and 
        the Republic of Palau.
            (30) Participant.--The term ``participant'', used with 
        respect to an activity carried out under title III, means an 
        individual participating in the activity.
            (31) Postsecondary educational institution.--The term 
        ``postsecondary educational institution'' means--
                    (A) an institution of higher education that 
                provides not less than a 2-year program of instruction 
                that is acceptable for credit toward a bachelor's 
                degree;
                    (B) a tribally controlled community college; or
                    (C) a nonprofit educational institution offering 
                certificate or apprenticeship programs at the 
                postsecondary level.
            (32) Poverty line.--The term ``poverty line'' means the 
        poverty line (as defined by the Office of Management and 
        Budget, and revised annually in accordance with section 673(2) 
        of the Community Services Block Grant Act (42 U.S.C. 9902(2))) 
        applicable to a family of the size involved.
            (33) Public assistance.--In title III, the term ``public 
        assistance'' means Federal, State, or local government cash 
        payments for which eligibility is determined by a needs or 
        income test.
            (34) Rapid response activity.--In title III, the term 
        ``rapid response activity'' means an activity provided by a 
        State, or by an entity designated by a State, with funds 
        provided by the State under section 306(a)(2), in the case of a 
        permanent closure or mass layoff at a plant, facility, or 
        enterprise, or a natural or other disaster, that results in 
        mass job dislocation, in order to assist dislocated workers in 
        obtaining reemployment as soon as possible, with services 
        including--
                    (A) the establishment of onsite contact with 
                employers and employee representatives--
                            (i) immediately after the State is notified 
                        of a current or projected permanent closure or 
                        mass layoff; or
                            (ii) in the case of a disaster, immediately 
                        after the State is made aware of mass job 
                        dislocation as a result of such disaster;
                    (B) the provision of information and access to 
                available employment and training activities;
                    (C) assistance in establishing a labor-management 
                committee, voluntarily agreed to by labor and 
management, with the ability to devise and implement a strategy for 
assessing the employment and training needs of dislocated workers and 
obtaining services to meet such needs;
                    (D) the provision of emergency assistance adapted 
                to the particular closure, layoff, or disaster; and
                    (E) the provision of assistance to the local 
                community in developing a coordinated response and in 
                obtaining access to State economic development 
                assistance.
            (35) School dropout.--The term ``school dropout'' means an 
        individual who is no longer attending any school and who has 
        not received a secondary school diploma or its recognized 
        equivalent.
            (36) Secondary school.--The term ``secondary school'' has 
        the meaning given the term in section 14101 of the Elementary 
        and Secondary Education Act of 1965 (20 U.S.C. 8801), except 
        that the term does not include education below grade 9.
            (37) Secretary.--
                    (A) Titles i and ii.--In titles I and II, the term 
                ``Secretary'' means the Secretary of Education.
                    (B) Title iii.--In title III, the term 
                ``Secretary'' means the Secretary of Labor.
            (38) State.--The term ``State'' means each of the several 
        States of the United States, the District of Columbia, and the 
        Commonwealth of Puerto Rico.
            (39) State educational agency.--The term ``State 
        educational agency'' means the State board of education or 
        other agency or officer primarily responsible for the State 
        supervision of public elementary or secondary schools, or, if 
        there is no such agency or officer, an agency or officer 
        designated by the Governor or by State law.
            (40) State performance measure.--In title III, the term 
        ``State performance measure'' means a performance measure 
        established under section 321(a).
            (41) Statewide partnership.--The term ``statewide 
        partnership'' means a partnership established under section 
        303.
            (42) Supportive services.--In title III, the term 
        ``supportive services'' means services such as transportation, 
        child care, dependent care, housing, and needs-based payments, 
        that are necessary to enable an individual to participate in 
        employment and training activities or youth activities.
            (43) Tribally controlled community college.--The term 
        ``tribally controlled community college'' means an institution 
        that receives assistance under the Tribally Controlled 
        Community College Assistance Act of 1978 (25 U.S.C. 1801 et 
        seq.) or the Navajo Community College Act (25 U.S.C. 640a et 
        seq.).
            (44) Unit of general local government.--In title III, the 
        term ``unit of general local government'' means any general 
        purpose political subdivision of a State that has the power to 
        levy taxes and spend funds, as well as general corporate and 
        police powers.
            (45) Veteran; related definitions.--
                    (A) Veteran.--The term ``veteran'' means an 
                individual who served in the active military, naval, or 
                air service, and who was discharged or released from 
                such service under conditions other than dishonorable.
                    (B) Disabled veteran.--The term ``disabled 
                veteran'' means--
                            (i) a veteran who is entitled to 
                        compensation under laws administered by the 
                        Secretary of Veterans Affairs; or
                            (ii) an individual who was discharged or 
                        released from active duty because of service-
                        connected disability.
                    (C) Recently separated veteran.--The term 
                ``recently separated veteran'' means any veteran who 
                applies for participation under title III within 48 
                months of the discharge or release from active 
                military, naval, or air service.
                    (D) Vietnam era veteran.--The term ``Vietnam era 
                veteran'' means a veteran any part of whose active 
                military, naval, or air service occurred between August 
                5, 1964, and May 7, 1975.
            (46) Vocational education.--The term ``vocational 
        education'' means organized education that--
                    (A) offers a sequence of courses that provides 
                individuals with the academic knowledge and skills the 
                individuals need to prepare for further education and 
                for careers in current or emerging employment sectors; 
                and
                    (B) includes competency-based applied learning that 
                contributes to the academic knowledge, higher-order 
                reasoning and problem-solving skills, work attitudes, 
                general employability skills, and occupation-specific 
                skills, of an individual.
            (47) Vocational rehabilitation program.--The term 
        ``vocational rehabilitation program'' means a program assisted 
        under title I of the Rehabilitation Act of 1973 (29 U.S.C. 720 
        et seq.).
            (48) Workforce investment activity.--The term ``workforce 
        investment activity'' means an employment and training 
        activity, a youth activity, and an activity described in 
        section 314.
            (49) Youth.--In paragraph (50) and title III (other than 
        subtitles B and C of such title), the term ``youth'' means an 
        individual who--
                    (A) is not less than age 14 and not more than age 
                21;
                    (B) is a low-income individual; and
                    (C) an individual who is 1 or more of the 
                following:
                            (i) Deficient in basic literacy skills.
                            (ii) A school dropout.
                            (iii) Homeless, a runaway, or a foster 
                        child.
                            (iv) Pregnant or a parent.
                            (v) An offender.
                            (vi) An individual who requires additional 
                        assistance to complete an educational program, 
                        or to secure and hold employment.
            (50) Youth activity.--The term ``youth activity'' means an 
        activity described in section 316, carried out for youth.
            (51) Youth partnership.--The term ``youth partnership'' 
        means a partnership established under section 308(i).

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

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Carl D. Perkins Vocational and 
Applied Technology Education Act of 1997''.

SEC. 102. FINDINGS AND PURPOSE.

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

SEC. 103. VOLUNTARY SELECTION AND PARTICIPATION.

    No funds made available under this title shall be used--
            (1) to require any secondary school student to choose or 
        pursue a specific career path or major; and
            (2) to mandate that any individual participate in a 
        vocational education program under this title.

                    Subtitle A--Vocational Education

                     CHAPTER 1--FEDERAL PROVISIONS

SEC. 111. RESERVATIONS AND STATE ALLOTMENT.

    (a) Reservations and State Allotment.--
            (1) Reservations.--From the sum appropriated under section 
        171 for each fiscal year, the Secretary shall reserve--
                    (A) 0.2 percent to carry out section 113;
                    (B) 1.75 percent to carry out sections 114 and 115, 
                of which--
                            (i) 1.25 percent of the sum shall be 
                        available to carry out section 114(b);
                            (ii) 0.25 percent of the sum shall be 
                        available to carry out section 114(c); and
                            (iii) 0.25 percent of the sum shall be 
                        available to carry out section 115; and
                    (C) 1.3 percent of the sum shall be used to carry 
                out sections 116, 163, 164, 165, and 166, of which not 
                less than 0.65 percent of the sum shall be available to 
                carry out section 116.
            (2) State allotment formula.--Subject to paragraphs (3) and 
        (4), from the remainder of the sums appropriated under section 
        171 and not reserved under paragraph (1) for a fiscal year, the 
        Secretary shall allot to a State for the fiscal year--
                    (A) an amount that bears the same ratio to 50 
                percent of the sums being allotted as the product of 
                the population aged 15 to 19 inclusive, in the State in 
                the fiscal year preceding the fiscal year for which the 
                determination is made and the State's allotment ratio 
                bears to the sum of the corresponding products for all 
                the States;
                    (B) an amount that bears the same ratio to 20 
                percent of the sums being allotted as the product of 
                the population aged 20 to 24, inclusive, in the State 
                in the fiscal year preceding the fiscal year for which 
                the determination is made and the State's allotment 
                ratio bears to the sum of the corresponding products 
                for all the States;
                    (C) an amount that bears the same ratio to 15 
                percent of the sums being allotted as the product of 
                the population aged 25 to 65, inclusive, in the State 
                in the fiscal year preceding the fiscal year for which 
                the determination is made and the State's allotment 
                ratio bears to the sum of the corresponding products 
                for all the States; and
                    (D) an amount that bears the same ratio to 15 
                percent of the sums being allotted as the amounts 
                allotted to the State under subparagraphs (A), (B), and 
                (C) for such years bears to the sum of the amounts 
                allotted to all the States under subparagraphs (A), 
                (B), and (C) for such year.
            (3) Minimum allotment.--
                    (A) In general.--Notwithstanding any other 
                provision of law and subject to subparagraphs (B) and 
                (C), and paragraph (4), no State shall receive for a 
                fiscal year under this subsection less than \1/2\ of 1 
                percent of the amount appropriated under section 171 
                and not reserved under paragraph (1) for such fiscal 
                year. Amounts necessary for increasing such payments to 
                States to comply with the preceding sentence shall be 
                obtained by ratably reducing the amounts to be paid to 
                other States.
                    (B) Requirement.--Due to the application of 
                subparagraph (A), for any fiscal year, no State shall 
                receive more than 150 percent of the amount the State 
                received under this subsection for the preceding fiscal 
                year (or in the case of fiscal year 1999 only, under 
                section 101 of the Carl D. Perkins Vocational and 
                Applied Technology Education Act, as such section was 
                in effect on the day before the date of enactment of 
                this Act).
                    (C) Special rule.--
                            (i) In general.--Subject to paragraph (4), 
                        no State, by reason of subparagraph (A), shall 
                        be allotted for a fiscal year more than the 
                        lesser of--
                                    (I) 150 percent of the amount that 
                                the State received in the preceding 
                                fiscal year (or in the case of fiscal 
                                year 1999 only, under section 101 of 
                                the Carl D. Perkins Vocational and 
                                Applied Technology Education Act, as 
                                such section was in effect on the day 
                                before the date of enactment of this 
                                Act); and
                                    (II) the amount calculated under 
                                clause (ii).
                            (ii) Amount.--The amount calculated under 
                        this clause shall be determined by 
                        multiplying--
                                    (I) the number of individuals in 
                                the State counted under paragraph (2) 
                                in the preceding fiscal year; by
                                    (II) 150 percent of the national 
                                average per pupil payment made with 
                                funds available under this section for 
                                that year (or in the case of fiscal 
                                year 1999, only, under section 101 of 
                                the Carl D. Perkins Vocational and 
                                Applied Technology Education Act, as 
                                such section was in effect on the day 
                                before the date of enactment of this 
                                Act).
            (4) Hold harmless.--
                    (A) In general.--No State shall receive an 
                allotment under this section for a fiscal year that is 
                less than the allotment the State received under part A 
                of title I of the Carl D. Perkins Vocational and 
                Applied Technology Education Act (20 U.S.C. 2311 et 
                seq.) (as such part was in effect on the day before the 
                date of enactment of this Act) for fiscal year 1997.
                    (B) Ratable reduction.--If for any fiscal year the 
                amount appropriated for allotments under this section 
                is insufficient to satisfy the provisions of 
                subparagraph (A), the payments to all States under such 
                subparagraph shall be ratably reduced.
    (b) Reallotment.--If the Secretary determines that any amount of 
any State's allotment under subsection (a) for any fiscal year will not 
be required for such fiscal year for carrying out the activities for 
which such amount has been allotted, the Secretary shall make such 
amount available for reallotment. Any such reallotment among other 
States shall occur on such dates during the same year as the Secretary 
shall fix, and shall be made on the basis of criteria established by 
regulation. No funds may be reallotted for any use other than the use 
for which the funds were appropriated. Any amount reallotted to a State 
under this subsection for any fiscal year shall remain available for 
obligation during the succeeding fiscal year and shall be deemed to be 
part of the State's allotment for the year in which the amount is 
obligated.
    (c) Allotment Ratio.--
            (1) In general.--The allotment ratio for any State shall be 
        1.00 less the product of--
                    (A) 0.50; and
                    (B) the quotient obtained by dividing the per 
                capita income for the State by the per capita income 
                for all the States (exclusive of the Commonwealth of 
                Puerto Rico), except that--
                            (i) the allotment ratio in no case shall be 
                        more than 0.60 or less than 0.40; and
                            (ii) the allotment ratio for the 
                        Commonwealth of Puerto Rico shall be 0.60.
            (2) Promulgation.--The allotment ratios shall be 
        promulgated by the Secretary for each fiscal year between 
        October 1 and December 31 of the fiscal year preceding the 
        fiscal year for which the determination is made. Allotment 
        ratios shall be computed on the basis of the average of the 
        appropriate per capita incomes for the 3 most recent 
        consecutive fiscal years for which satisfactory data are 
        available.
            (3) Definition of per capita income.--For the purpose of 
        this section, the term ``per capita income'' means, with 
        respect to a fiscal year, the total personal income in the 
        calendar year ending in such year, divided by the population of 
        the area concerned in such year.
            (4) Population determination.--For the purposes of this 
        section, population shall be determined by the Secretary on the 
        basis of the latest estimates available to the Department of 
        Education.

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

    (a) Establishment of Performance Measures.--After consultation with 
eligible agencies, local educational agencies, eligible institutions, 
and other interested parties (including representatives of business and 
representatives of labor organizations), the Secretary shall establish 
and publish performance measures described in this subsection to assess 
the progress of each eligible agency in achieving the following:
            (1) Student mastery of academic skills.
            (2) Student mastery of job readiness skills.
            (3) Student mastery of vocational skill proficiencies for 
        students in vocational education programs, that are necessary 
        for the receipt of a secondary school diploma or its recognized 
        equivalent, or a secondary school skill certificate.
            (4) Receipt of a postsecondary degree or certificate.
            (5) Placement in, retention in, and completion of, 
        secondary school education (as determined under State law) and 
        postsecondary education, and placement and retention in 
        employment and in military service, including for the 
        populations described in section 124(c)(16).
            (6) Participation in and completion of nontraditional 
        vocational education programs.
            (7) Other performance measures as determined by the 
        Secretary.
    (b) Expected Levels of Performance.--In developing a State plan, 
each eligible agency shall negotiate with the Secretary the expected 
levels of performance for the performance measures described in 
subsection (a).

SEC. 113. ASSISTANCE FOR THE OUTLYING AREAS.

    (a) In General.--From the funds reserved under section 
111(a)(1)(A), the Secretary--
            (1) shall award a grant in the amount of $500,000 to Guam 
        for vocational education and training for the purpose of 
        providing direct educational services related to vocational 
        education, including--
                    (A) teacher and counselor training and retraining;
                    (B) curriculum development; and
                    (C) improving vocational education programs in 
                secondary schools and institutions of higher education, 
                or improving cooperative education programs involving 
                both secondary schools and institutions of higher 
                education;
            (2) shall award a grant in the amount of $600,000 to the 
        United States Virgin Islands for vocational education for the 
        purpose described in paragraph (1); and
            (3) shall award a grant in the amount of $190,000 to each 
        of American Samoa and the Commonwealth of the Northern Mariana 
        Islands for vocational education for the purpose described in 
        paragraph (1).
    (b) Special Rule.--
            (1) In general.--From funds reserved under section 
        111(a)(1)(A) and not awarded under subsection (a), the 
        Secretary shall make available the amount awarded to the 
        Republic of the Marshall Islands, the Federated States of 
        Micronesia, and the Republic of Palau under section 101A of the 
        Carl D. Perkins Vocational and Applied Technology Education Act 
        (as such section was in effect on the day before the date of 
        enactment of this Act) to award grants under the succeeding 
        sentence. From the amount made available under the preceding 
        sentence, the Secretary shall award grants, to Guam, American 
        Samoa, the Commonwealth of the Northern Mariana Islands, the 
        Republic of the Marshall Islands, the Federated States of 
        Micronesia, or the Republic of Palau for the purpose described 
        in subsection (a)(1).
            (2) Award basis.--The Secretary shall award grants pursuant 
        to paragraph (1) on a competitive basis and pursuant to 
        recommendations from the Pacific Region Educational Laboratory 
        in Honolulu, Hawaii.
            (3) Termination of eligibility.--Notwithstanding any other 
        provision of law, the Republic of the Marshall Islands, the 
        Federated States of Micronesia, and the Republic of Palau shall 
        not receive any funds under this title for any fiscal year that 
        begins after September 30, 2004.
            (4) Administrative costs.--The Secretary may provide not 
        more than 5 percent of the funds made available for grants 
        under this subsection to pay the administrative costs of the 
        Pacific Region Educational Laboratory regarding activities 
assisted under this subsection.

SEC. 114. INDIAN AND HAWAIIAN NATIVE PROGRAMS.

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

SEC. 115. TRIBALLY CONTROLLED POSTSECONDARY VOCATIONAL INSTITUTIONS.

    (a) In General.--It is the purpose of this section to provide 
grants for the operation and improvement of tribally controlled 
postsecondary vocational institutions to ensure continued and expanded 
educational opportunities for Indian students, and to allow for the 
improvement and expansion of the physical resources of such 
institutions.
    (b) Grants Authorized.--From the funds reserved pursuant to section 
111(a)(1)(B)(iii), the Secretary shall make grants to tribally 
controlled postsecondary vocational institutions to provide basic 
support for the vocational education and training of Indian students.
    (c) Eligible Grant Recipients.--To be eligible for assistance under 
this section a tribally controlled postsecondary vocational institution 
shall--
            (1) be governed by a board of directors or trustees, a 
        majority of whom are Indians;
            (2) demonstrate adherence to stated goals, a philosophy, or 
        a plan of operation which fosters individual Indian economic 
        and self-sufficiency opportunity, including programs that are 
        appropriate to stated tribal goals of developing individual 
        entrepreneurships and self-sustaining economic infrastructures 
        on reservations;
            (3) have been in operation for at least 3 years;
            (4) hold accreditation with or be a candidate for 
        accreditation by a nationally recognized accrediting authority 
for postsecondary vocational education; and
            (5) enroll the full-time equivalency of not less than 100 
        students, of whom a majority are Indians.
    (d) Grant Requirements.--
            (1) Applications.--Any tribally controlled postsecondary 
        vocational institution that desires to receive a grant under 
        this section shall submit an application to the Secretary. Such 
        application shall include a description of recordkeeping 
        procedures for the expenditure of funds received under this 
        section that will allow the Secretary to audit and monitor 
        programs.
            (2) Number.--The Secretary shall award not less than 2 
        grants under this section for each fiscal year.
            (3) Consultation.--In awarding grants under this section, 
        the Secretary shall, to the extent practicable, consult with 
        the boards of trustees of, and the tribal governments 
        chartering, the institutions desiring the grants.
            (4) Limitation.--Amounts made available through grants 
        under this section shall not be used in connection with 
        religious worship or sectarian instruction.
    (e) Uses of Grants.--
            (1) In general.--The Secretary shall, subject to the 
        availability of appropriations, provide for each program year 
        to each tribally controlled vocational institution having an 
        application approved by the Secretary, an amount necessary to 
        pay expenses associated with--
                    (A) the maintenance and operation of the program, 
                including development costs, costs of basic and special 
                instruction (including special programs for individuals 
                with disabilities and academic instruction), materials, 
                student costs, administrative expenses, boarding costs, 
                transportation, student services, daycare and family 
                support programs for students and their families 
                (including contributions to the costs of education for 
                dependents), and student stipends;
                    (B) capital expenditures, including operations and 
                maintenance, and minor improvements and repair, and 
                physical plant maintenance costs, for the conduct of 
                programs funded under this section; and
                    (C) costs associated with repair, upkeep, 
                replacement, and upgrading of the instructional 
                equipment.
            (2) Accounting.--Each institution receiving a grant under 
        this section shall provide annually to the Secretary an 
        accurate and detailed accounting of the institution's operating 
        and maintenance expenses and such other information concerning 
        costs as the Secretary may reasonably require.
    (f) Effect on Other Programs.--
            (1) In general.--Except as specifically provided in this 
        Act, eligibility for assistance under this section shall not 
        preclude any tribally controlled postsecondary vocational 
        institution from receiving Federal financial assistance under 
        any program authorized under the Higher Education Act of 1965 
        (20 U.S.C. 1001 et seq.) or any other applicable program for 
        the benefit of institutions of higher education or vocational 
        education.
            (2) Prohibition on alteration of grant amount.--The amount 
        of any grant for which tribally controlled postsecondary 
        vocational institutions are eligible under this section shall 
        not be altered because of funds allocated to any such 
        institution from funds appropriated under the Act of November 
        2, 1921 (commonly known as the ``Snyder Act'') (42 Stat. 208, 
        chapter 115; 25 U.S.C. 13).
            (3) Prohibition on contract denial.--No tribally controlled 
        postsecondary vocational institution for which an Indian tribe 
        has designated a portion of the funds appropriated for the 
        tribe from funds appropriated under such Act of November 2, 
        1921, may be denied a contract for such portion under the 
        Indian Self-Determination and Education Assistance Act (25 
        U.S.C. 450b et seq.) (except as provided in that Act), or 
        denied appropriate contract support to administer such portion 
        of the appropriated funds.
    (g) Needs Estimate and Report on Facilities and Facilities 
Improvement.--
            (1) Needs estimate.--The Secretary shall, based on the most 
        accurate data available from the institutions and Indian tribes 
        whose Indian students are served under this section, and in 
        consideration of employment needs, economic development needs, 
        population training needs, and facilities needs, prepare an 
        actual budget needs estimate for each institution eligible 
        under this section for each subsequent program year, and submit 
        such budget needs estimate to Congress in such a timely manner 
        as will enable the appropriate committees of Congress to 
        consider such needs data for purposes of the uninterrupted flow 
        of adequate appropriations to such institutions. Such data 
        shall take into account the goals and requirements of the 
        Personal Responsibility and Work Opportunity Reconciliation Act 
        of 1996 (Public Law 104-193; 110 Stat. 2105).
            (2) Study of training and housing needs.--
                    (A) In general.--The Secretary shall conduct a 
                detailed study of the training, housing, and immediate 
                facilities needs of each institution eligible under 
                this section. The study shall include an examination 
                of--
                            (i) training equipment needs;
                            (ii) housing needs of families whose heads 
                        of households are students and whose dependents 
                        have no alternate source of support while such 
                        heads of households are students; and
                            (iii) immediate facilities needs.
                    (B) Report.--The Secretary shall report to Congress 
                not later than July 1, 1999, on the results of the 
                study required by subparagraph (A).
                    (C) Contents.--The report required by subparagraph 
                (B) shall include the number, type, and cost of meeting 
the needs described in subparagraph (A), and rank each institution by 
relative need.
                    (D) Priority.--In conducting the study required by 
                subparagraph (A), the Secretary shall give priority to 
                institutions that are receiving assistance under this 
                section.
            (3) Long-term study of facilities.--
                    (A) In general.--The Secretary shall provide for 
                the conduct of a long-term study of the facilities of 
                each institution eligible for assistance under this 
                section.
                    (B) Contents.--The study required by subparagraph 
                (A) shall include a 5-year projection of training 
                facilities, equipment, and housing needs and shall 
                consider such factors as projected service population, 
                employment, and economic development forecasting, based 
                on the most current and accurate data available from 
                the institutions and Indian tribes affected.
                    (B) Submission.--The Secretary shall submit to 
                Congress a detailed report on the results of such study 
                not later than the end of the 18-month period beginning 
                on the date of enactment of this Act.
    (h) Definitions.--For the purposes of this section:
            (1) Indian; indian tribe.--The terms ``Indian'' and 
        ``Indian tribe'' have the meaning given such terms in section 2 
        of the Tribally Controlled Community College Assistance Act of 
        1978 (25 U.S.C. 1801).
            (2) Tribally controlled postsecondary vocational 
        institution.--The term ``tribally controlled postsecondary 
        vocational institution'' means an institution of higher 
        education that--
                    (A) is formally controlled, or has been formally 
                sanctioned or chartered by the governing body of an 
                Indian tribe or tribes; and
                    (B) offers technical degrees or certificate 
                granting programs.

SEC. 116. INCENTIVE GRANTS.

    (a) In General.--The Secretary may make grants to States that 
exceed--
            (1) the State performance measures established by the 
        Secretary of Education under this Act; and
            (2) the State performance measures established under title 
        III.
    (b) Priority.--In awarding incentive grants under this section, the 
Secretary shall give priority to those States submitting a State 
unified plan as described in section 501 that is approved by the 
appropriate Secretaries as described in such section.
    (c) Use of Funds.--A State that receives an incentive grant under 
this section shall use the funds made available through the grant to 
carry out innovative programs as determined by the State.

                      CHAPTER 2--STATE PROVISIONS

SEC. 121. STATE ADMINISTRATION.

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

SEC. 122. STATE USE OF FUNDS.

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

SEC. 123. STATE LEADERSHIP ACTIVITIES.

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

SEC. 124. STATE PLAN.

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

                      CHAPTER 3--LOCAL PROVISIONS

SEC. 131. DISTRIBUTION FOR SECONDARY SCHOOL VOCATIONAL EDUCATION.

    (a) Allocation.--Except as otherwise provided in this section, each 
eligible agency shall distribute the portion of the funds made 
available for secondary school vocational education activities under 
section 122(b) for any fiscal year to local educational agencies within 
the State as follows:
            (1) Seventy percent.--From 70 percent of such portion, each 
        local educational agency shall be allocated an amount that 
        bears the same relationship to such 70 percent as the amount 
        such local educational agency was allocated under section 1124 
        of the Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 6333) for the preceding fiscal year bears to the total 
        amount received under such section by all local educational 
        agencies in the State for such year.
            (2) Twenty percent.--From 20 percent of such portion, each 
        local educational agency shall be allocated an amount that 
        bears the same relationship to such 20 percent as the number of 
        students with disabilities who have individualized education 
        programs under section 614(d) of the Individuals with 
        Disabilities Education Act (20 U.S.C. 1414(d)) served by such 
        local educational agency for the preceding fiscal year bears to 
        the total number of such students served by all local 
        educational agencies in the State for such year.
            (3) Ten percent.--From 10 percent of such portion, each 
        local educational agency shall be allocated an amount that 
        bears the same relationship to such 10 percent as the number of 
        students enrolled in schools and adults enrolled in training 
        programs under the jurisdiction of such local educational 
        agency for the preceding fiscal year bears to the number of 
        students enrolled in schools and adults enrolled in training 
        programs under the jurisdiction of all local educational 
        agencies in the State for such year.
    (b) Minimum Allocation.--
            (1) In general.--Except as provided in paragraph (2), no 
        local educational agency shall receive an allocation under 
        subsection (a) unless the amount allocated to such agency under 
        subsection (a) is not less than $25,000. A local educational 
        agency may enter into a consortium with other local educational 
        agencies for purposes of meeting the minimum allocation 
        requirement of this paragraph.
            (2) Waiver.--The eligible agency may waive the application 
        of paragraph (1) in any case in which the local educational 
        agency--
                    (A) is located in a rural, sparsely populated area; 
                and
                    (B) demonstrates that such agency is unable to 
                enter into a consortium for purposes of providing 
                services under this section.
            (3) Reallocation.--Any amounts that are not allocated by 
        reason of paragraph (1) or (2) shall be reallocated to local 
        educational agencies that meet the requirements of paragraph 
        (1) or (2) in accordance with the provisions of this section.
    (c) Limited Jurisdiction Agencies.--
            (1) In general.--In applying the provisions of subsection 
        (a), no eligible agency receiving assistance under this 
        subtitle shall allocate funds to a local educational agency 
        that serves only elementary schools, but shall distribute such 
        funds to the local educational agency or regional educational 
        agency that provides secondary school services to secondary 
        school students in the same attendance area.
            (2) Special rule.--The amount to be allocated under 
        paragraph (1) to a local educational agency that has 
        jurisdiction only over secondary schools shall be determined 
        based on the number of students that entered such secondary 
        schools in the previous year from the elementary schools 
        involved.
    (d) Allocations to Area Vocational Education Schools and 
Educational Service Agencies.--
            (1) In general.--Each eligible agency shall distribute the 
        portion of funds made available for any fiscal year by such 
        entity for secondary school vocational education activities 
        under section 122(b) to the appropriate area vocational 
        education school or educational service agency in any case in 
        which--
                    (A) the area vocational education school or 
                educational service agency, and the local educational 
                agency concerned--
                            (i) have formed or will form a consortium 
                        for the purpose of receiving funds under this 
                        section; or
                            (ii) have entered into or will enter into a 
                        cooperative arrangement for such purpose; and
                    (B)(i) the area vocational education school or 
                educational service agency serves an approximately 
                equal or greater proportion of students who are 
                individuals with disabilities or are low-income than 
                the proportion of such students attending the secondary 
                schools under the jurisdiction of all of the local 
                educational agencies sending students to the area 
                vocational education school or the educational service 
                agency; or
                    (ii) the area vocational education school, 
                educational service agency, or local educational agency 
                demonstrates that the vocational education school or 
                educational service agency is unable to meet the 
criterion described in clause (i) due to the lack of interest by 
students described in clause (i) in attending vocational education 
programs in that area vocational education school or educational 
service agency.
            (2) Allocation basis.--If an area vocational education 
        school or educational service agency meets the requirements of 
        paragraph (1), then--
                    (A) the amount that will otherwise be distributed 
                to the local educational agency under this section 
                shall be allocated to the area vocational education 
                school, the educational service agency, and the local 
                educational agency, based on each school's or agency's 
                relative share of students described in paragraph 
                (1)(B)(i) who are attending vocational education 
                programs (based, if practicable, on the average 
                enrollment for the prior 3 years); or
                    (B) such amount may be allocated on the basis of an 
                agreement between the local educational agency and the 
                area vocational education school or educational service 
                agency.
            (3) State determination.--
                    (A) In general.--For the purposes of this 
                subsection, the eligible agency may determine the 
                number of students who are low-income on the basis of--
                            (i) eligibility for--
                                    (I) free or reduced-price meals 
                                under the National School Lunch Act (7 
                                U.S.C. 1751 et seq.);
                                    (II) assistance under a State 
                                program funded under part A of title IV 
                                of the Social Security Act;
                                    (III) benefits under the Food Stamp 
                                Act of 1977 (7 U.S.C. 2011 et seq.); or
                                    (IV) services under title I of the 
                                Elementary and Secondary Education Act 
                                of 1965 (20 U.S.C. 6301 et seq.); and
                            (ii) another index of economic status, 
                        including an estimate of such index, if the 
                        eligible agency demonstrates to the 
                        satisfaction of the Secretary that such index 
                        is a more representative means of determining 
                        such number.
                    (B) Data.--If an eligible agency elects to use more 
                than 1 factor described in subparagraph (A) for 
                purposes of making the determination described in such 
                subparagraph, the eligible agency shall ensure that the 
                data used is not duplicative.
            (4) Appeals procedure.--The eligible agency shall establish 
        an appeals procedure for resolution of any dispute arising 
        between a local educational agency and an area vocational 
        education school or an educational service agency with respect 
        to the allocation procedures described in this section, 
        including the decision of a local educational agency to leave a 
        consortium.
            (5) Special rule.--Notwithstanding the provisions of 
        paragraphs (1), (2), (3), and (4), any local educational agency 
        receiving an allocation that is not sufficient to conduct a 
        secondary school vocational education program of sufficient 
        size, scope, and quality to be effective may--
                    (A) form a consortium or enter into a cooperative 
                agreement with an area vocational education school or 
                educational service agency offering secondary school 
                vocational education programs of sufficient size, 
                scope, and quality to be effective and that are 
                accessible to students who are individuals with 
                disabilities or are low-income, and are served by such 
                local educational agency; and
                    (B) transfer such allocation to the area vocational 
                education school or educational service agency.
    (e) Special Rule.--Each eligible agency distributing funds under 
this section shall treat a secondary school funded by the Bureau of 
Indian Affairs within the State as if such school were a local 
educational agency within the State for the purpose of receiving a 
distribution under this section.

SEC. 132. DISTRIBUTION FOR POSTSECONDARY VOCATIONAL EDUCATION.

    (a) Distribution.--
            (1) In general.--Except as otherwise provided in this 
        section, each eligible agency shall distribute the portion of 
        funds made available for postsecondary vocational education 
        under section 122(b) for any fiscal year to eligible 
        institutions within the State in accordance with paragraph (2).
            (2) Allocation.--Each eligible institution in the State 
        having an application approved under section 134 for a fiscal 
        year shall be allocated an amount that bears the same 
        relationship to the amount of funds made available for 
        postsecondary vocational education under section 122(b) for the 
fiscal year as the number of Pell Grant recipients and recipients of 
assistance from the Bureau of Indian Affairs enrolled for the preceding 
fiscal year by such eligible institution in vocational education 
programs that do not exceed 2 years in duration bears to the number of 
such recipients enrolled in such programs within the State for such 
fiscal year.
            (3) Minimum allocation.--
                    (A) In general.--Except as provided in subparagraph 
                (B), no eligible institution shall receive an 
                allocation under paragraph (2) unless the amount 
                allocated to the eligible institution under paragraph 
                (2) is not less than $65,000.
                    (B) Waiver.--The eligible agency may waive the 
                application of subparagraph (A) in any case in which 
                the eligible institution is located in a rural, 
                sparsely populated area.
                    (C) Reallocation.--Any amounts that are not 
                allocated by reason of subparagraph (A) or (B) shall be 
                reallocated to eligible institutions that meet the 
                requirements of subparagraph (A) or (B) in accordance 
                with the provisions of this section.
            (4) Definition of pell grant recipient.--The term ``Pell 
        Grant recipient'' means a recipient of financial aid under 
        subpart 1 of part A of title IV of the Higher Education Act of 
        1965 (20 U.S.C. 1070a).
    (b) Alternative Allocation.--An eligible agency may allocate funds 
made available for postsecondary education under section 122(b) for a 
fiscal year using an alternative formula if the eligible agency 
demonstrates to the Secretary's satisfaction that--
            (1) the alternative formula better meets the purpose of 
        this title; and
            (2)(A) the formula described in subsection (a) does not 
        result in an allocation of funds to the eligible institutions 
        that serve the highest numbers or percentages of low-income 
        students; and
            (B) the alternative formula will result in such a 
        distribution.

SEC. 133. LOCAL ACTIVITIES.

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

SEC. 134. LOCAL APPLICATION.

    (a) In General.--Each local educational agency or eligible 
institution desiring assistance under this subtitle shall submit an 
application to the eligible agency at such time, in such manner, and 
accompanied by such information as the eligible agency (in consultation 
with such other educational entities as the eligible agency determines 
to be appropriate) may require.
    (b) Contents.--Each application shall, at a minimum--
            (1) describe how the vocational education activities will 
        be carried out pertaining to meeting the expected levels of 
        performance;
            (2) describe the process that will be used to independently 
        evaluate and continuously improve the performance of the local 
        educational agency or eligible institution, as appropriate; and
            (3) describe how the local educational agency or eligible 
        institution, as appropriate, will consult with students, 
        parents, business, labor organizations, and other interested 
        individuals, in carrying out activities under this subtitle.

                    Subtitle B--Tech-Prep Education

SEC. 151. SHORT TITLE.

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

SEC. 152. PURPOSES.

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

SEC. 153. DEFINITIONS.

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

SEC. 154. PROGRAM AUTHORIZED.

    (a) Discretionary Amounts.--
            (1) In general.--For any fiscal year for which the amount 
        appropriated under section 158 to carry out this subtitle is 
        equal to or less than $50,000,000, the Secretary shall award 
        grants for tech-prep education programs to consortia of--
                    (A) local educational agencies, intermediate 
                educational agencies or area vocational education 
                schools serving secondary school students, or secondary 
                schools funded by the Bureau of Indian Affairs;
                    (B)(i) nonprofit institutions of higher education 
                that offer--
                            (I) a 2-year associate degree program, or a 
                        2-year certificate program, and are qualified 
                        as institutions of higher education pursuant to 
                        section 481(a) of the Higher Education Act of 
                        1965 (20 U.S.C. 1088(a)), including 
                        institutions receiving assistance under the 
                        Tribally Controlled Community College 
                        Assistance Act of 1978 (25 U.S.C. 1801 et seq.) 
                        and tribally controlled postsecondary 
                        vocational institutions; or
                            (II) a 2-year apprenticeship program that 
                        follows secondary instruction,
                if such nonprofit institutions of higher education are 
                not prohibited from receiving assistance under part B 
                of the Higher Education Act of 1965 (20 U.S.C. 1071 et 
                seq.) pursuant to the provisions of section 435(a)(3) 
                of such Act (20 U.S.C. 1083(a)); or
                    (ii) proprietary institutions of higher education 
                which offer a 2-year associate degree program and which 
are qualified as institutions of higher education pursuant to section 
481(a) of the Higher Education Act of 1965 (20 U.S.C. 1088(a)) if such 
proprietary institutions of higher education are not subject to a 
default management plan required by the Secretary; or
                    (C) employers or labor organizations.
            (2) Special rule.--A consortium described in paragraph (1) 
        may include 1 or more institutions of higher education that 
        award baccalaureate degrees.
    (b) State Grants.--
            (1) In general.--For any fiscal year for which the amount 
        made available under section 158 to carry out this subtitle 
        exceeds $50,000,000, the Secretary shall allot such amount 
        among the States in the same manner as funds are allotted to 
        States under paragraphs (2), (3), and (4) of section 111(a).
            (2) Payments to eligible agencies.--The Secretary shall 
        make a payment in the amount of a State's allotment under this 
        paragraph to the eligible agency that serves the State and has 
        an application approved under paragraph (4).
            (3) Award basis.--From amounts made available to each 
        eligible agency under this subsection, the eligible agency 
        shall award grants, on a competitive basis or on the basis of a 
        formula determined by the eligible agency, for tech-prep 
        education programs to consortia described in subsection (a).
            (4) State application.--Each eligible agency desiring 
        assistance under this subtitle shall submit an application to 
        the Secretary at such time, in such manner, and accompanied by 
        such information as the Secretary may require.

SEC. 155. TECH-PREP EDUCATION PROGRAMS.

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

SEC. 156. APPLICATIONS.

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

SEC. 157. AUTHORIZATION OF APPROPRIATIONS.

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

                     Subtitle C--General Provisions

SEC. 161. ADMINISTRATIVE PROVISIONS.

    (a) Supplement Not Supplant.--Funds made available under this title 
for vocational education activities shall supplement, and shall not 
supplant, other public funds expended to carry out vocational education 
and tech-prep activities.
    (b) Maintenance of Effort.--
            (1) Determination.--No payments shall be made under this 
        title for any fiscal year to an eligible agency for vocational 
        education or tech-prep activities unless the Secretary 
        determines that the fiscal effort per student or the aggregate 
        expenditures of the State for vocational education for the 
        fiscal year preceding the fiscal year for which the 
        determination is made, equaled or exceeded such effort or 
        expenditures for vocational education for the second fiscal 
        year preceding the fiscal year for which the determination is 
        made.
            (2) Waiver.--The Secretary may waive the requirements of 
        this section, with respect to not more than 5 percent of 
        expenditures by any eligible agency for 1 fiscal year only, on 
        making a determination that such waiver would be equitable due 
        to exceptional or uncontrollable circumstances affecting the 
        ability of the applicant to meet such requirements, such as a 
        natural disaster or an unforeseen and precipitous decline in 
        financial resources. No level of funding permitted under such a 
        waiver may be used as the basis for computing the fiscal effort 
        or aggregate expenditures required under this section for years 
        subsequent to the year covered by such waiver. The fiscal 
        effort or aggregate expenditures for the subsequent years shall 
        be computed on the basis of the level of funding that would, 
        but for such waiver, have been required.
    (c) Representation.--The eligible agency shall provide 
representation to the statewide partnership.

SEC. 162. EVALUATION, IMPROVEMENT, AND ACCOUNTABILITY.

    (a) Local Evaluation.--Each eligible agency shall evaluate annually 
the vocational education and tech-prep activities of each local 
educational agency or eligible institution receiving assistance under 
this title, using the performance measures established under section 
112.
    (b) Improvement Activities.--If, after reviewing the evaluation, an 
eligible agency determines that a local educational agency or eligible 
institution is not making substantial progress in achieving the purpose 
of this title, the eligible agency may work jointly with the local 
educational agency or eligible institution, respectively, to develop an 
improvement plan. If, after not more than 2 years of implementation of 
the improvement plan, the eligible agency determines that the local 
educational agency or eligible institution, respectively, is not making 
substantial progress, the eligible agency shall take whatever 
corrective action the eligible agency deems necessary, which may 
include termination of funding or the implementation of alternative 
service arrangements, consistent with State law. The eligible agency 
shall take corrective action under the preceding sentence only after 
the eligible agency has provided technical assistance to the local 
educational agency or eligible institution and shall ensure, to the 
extent practicable, that any corrective action the eligible agency 
takes allows for continued services to and activities for individuals 
served by the local educational agency or eligible institution, 
respectively.
    (c) Technical Assistance.--If the Secretary determines that an 
eligible agency is not properly implementing the eligible agency's 
responsibilities under section 124, or is not making substantial 
progress in meeting the purpose of this title, based on the performance 
measures and expected levels of performance under section 112 included 
in the eligible agency's State plan, the Secretary shall work with the 
eligible agency to implement improvement activities.
    (d) Withholding of Federal Funds.--If, after a reasonable time, but 
not earlier than 1 year after implementing activities described in 
subsection (c), the Secretary determines that the eligible agency is 
not making sufficient progress, based on the eligible agency's 
performance measures and expected levels of performance, the Secretary, 
after notice and opportunity for a hearing, shall withhold from the 
eligible agency all, or a portion, of the eligible agency's grant funds 
under this subtitle. The Secretary may use funds withheld under the 
preceding sentence to provide, through alternative arrangements, 
services, and activities within the State to meet the purpose of this 
title.

SEC. 163. NATIONAL ACTIVITIES.

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

SEC. 164. NATIONAL ASSESSMENT OF VOCATIONAL EDUCATION PROGRAMS.

    (a) In General.--The Secretary shall conduct a national assessment 
of vocational education programs assisted under this title, through 
studies and analyses conducted independently through competitive 
awards.
    (b) Independent Advisory Panel.--The Secretary shall appoint an 
independent advisory panel, consisting of vocational education 
administrators, educators, researchers, and representatives of labor 
organizations, business, parents, guidance and counseling 
professionals, and other relevant groups, to advise the Secretary on 
the implementation of such assessment, including the issues to be 
addressed and the methodology of the studies involved, and the findings 
and recommendations resulting from the assessment. The panel shall 
submit to the Committee on Education and the Workforce of the House of 
Representatives, the Committee on Labor and Human Resources of the 
Senate, and the Secretary an independent analysis of the findings and 
recommendations resulting from the assessment. The Federal Advisory 
Committee Act (5 U.S.C. App.) shall not apply to the panel established 
under this subsection.
    (c) Contents.--The assessment required under subsection (a) shall 
include descriptions and evaluations of--
            (1) the effect of the vocational education programs 
        assisted under this title on State and tribal administration of 
        vocational education programs and on local vocational education 
        practices, including the capacity of State, tribal, and local 
        vocational education systems to address the purpose of this 
        title;
            (2) expenditures at the Federal, State, tribal, and local 
        levels to address program improvement in vocational education, 
        including the impact of Federal allocation requirements (such 
        as within-State distribution formulas) on the delivery of 
        services;
            (3) preparation and qualifications of teachers of 
        vocational and academic curricula in vocational education 
        programs, as well as shortages of such teachers;
            (4) participation in vocational education programs;
            (5) academic and employment outcomes of vocational 
        education, including analyses of--
                    (A) the extent and success of integration of 
                academic and vocational curricula; and
                    (B) the degree to which vocational education is 
                relevant to subsequent employment or participation in 
                postsecondary education;
            (6) employer involvement in, and satisfaction with, 
        vocational education programs; and
            (7) the effect of performance measures, and other measures 
        of accountability, on the delivery of vocational education 
        services.
    (d) Consultation.--
            (1) In general.--The Secretary shall consult with the 
        Committee on Education and the Workforce of the House of 
        Representatives and the Committee on Labor and Human Resources 
        of the Senate in the design and implementation of the 
        assessment required under subsection (a).
            (2) Reports.--The Secretary shall submit to the Committee 
        on Education and the Workforce of the House of Representatives, 
        the Committee on Labor and Human Resources of the Senate, and 
        the Secretary--
                    (A) an interim report regarding the assessment on 
                or before July 1, 2001; and
                    (B) a final report, summarizing all studies and 
                analyses that relate to the assessment and that are 
                completed after the assessment, on or before July 1, 
                2002.
            (3) Prohibition.--Notwithstanding any other provision of 
        law or regulation, the reports required by this subsection 
        shall not be subject to any review outside of the Department of 
        Education before their transmittal to the Committee on 
        Education and the Workforce of the House of Representatives, 
        the Committee on Labor and Human Resources of the Senate, and 
        the Secretary, but the President, the Secretary, and the 
        independent advisory panel established under subsection (b) may 
        make such additional recommendations to Congress with respect 
        to the assessment as the President, the Secretary, or the panel 
        determine to be appropriate.

SEC. 165. NATIONAL RESEARCH CENTER.

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

SEC. 166. DATA SYSTEMS.

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

              Subtitle D--Authorization of Appropriations

SEC. 171. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out subtitle (A), 
and sections 163, 164, 165, and 166, such sums as may be necessary for 
each of the fiscal years 1999 through 2004.

                           Subtitle E--Repeal

SEC. 181. REPEAL.

    (a) Repeal.--The Carl D. Perkins Vocational and Applied Technology 
Education Act (20 U.S.C. 2301 et seq.) is repealed.
    (b) References to Carl D. Perkins Vocational and Applied Technology 
Education Act.--
            (1) Immigration and nationality act.--Section 245A(h)(4)(C) 
        of the Immigration and Nationality Act (8 U.S.C. 
        1255a(h)(4)(C)) is amended by striking ``Vocational Education 
        Act of 1963'' and inserting ``Carl D. Perkins Vocational and 
        Applied Technology Education Act of 1997''.
            (2) National defense authorization act.--Section 4461 of 
        the National Defense Authorization Act for Fiscal Year 1993 (10 
        U.S.C. 1143 note) is amended--
                    (A) by striking paragraph (4); and
                    (B) by redesignating paragraphs (5) and (6) as 
                paragraphs (4) and (5), respectively.
            (3) Elementary and secondary education act of 1965.--The 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301 
        et seq.) is amended--
                    (A) in section 1114(b)(2)(C)(v) (20 U.S.C. 
                6314(b)(2)(C)(v)), by striking ``Carl D. Perkins 
                Vocational and Applied Technology Education Act,'' and 
                inserting ``Carl D. Perkins Vocational and Applied 
                Technology Education Act of 1997'';
                    (B) in section 9115(b)(5) (20 U.S.C. 7815(b)(5)), 
                by striking ``Carl D. Perkins Vocational and Applied 
                Technology Education Act'' and inserting ``Carl D. 
                Perkins Vocational and Applied Technology Education Act 
                of 1997'';
                    (C) in section 14302(a)(2) (20 U.S.C. 8852(a)(2))--
                            (i) by striking subparagraph (C); and
                            (ii) by redesignating subparagraphs (D), 
                        (E), and (F) as subparagraphs (C), (D), and 
                        (E), respectively; and
                    (D) in the matter preceding subparagraph (A) of 
                section 14307(a)(1) (20 U.S.C. 8857(a)(1)), by striking 
                ``Carl D. Perkins Vocational and Applied Technology 
                Education Act'' and inserting ``Carl D. Perkins 
                Vocational and Applied Technology Education Act of 
                1997''.
            (4) Equity in educational land-grant status act of 1994.--
        Section 533(c)(4)(A) of the Equity in Educational Land-Grant 
        Status Act of 1994 (7 U.S.C. 301 note) is amended by striking 
        ``(20 U.S.C. 2397h(3)'' and inserting ``, as such section was 
        in effect on the day preceding the date of enactment of the 
        Carl D. Perkins Vocational and Applied Technology Education Act 
        of 1997''.
            (5) Improving america's schools act of 1994.--Section 563 
        of the Improving America's Schools Act of 1994 (20 U.S.C. 6301 
        note) is amended by striking ``the date of enactment of an Act 
        reauthorizing the Carl D. Perkins Vocational and Applied 
        Technology Education Act (20 U.S.C. 2301 et seq.)'' and 
        inserting ``July 1, 1999''.
            (6) Internal revenue code of 1986.--Section 135(c)(3)(B) of 
        the Internal Revenue Code of 1986 (26 U.S.C. 135(c)(3)(B)) is 
        amended--
                    (A) by striking ``subparagraph (C) or (D) of 
                section 521(3) of the Carl D. Perkins Vocational 
                Education Act'' and inserting ``subparagraph (C) or (D) 
                of section 2(3) of the Workforce Investment Partnership 
                Act of 1997''; and
                    (B) by striking ``any State (as defined in section 
                521(27) of such Act)'' and inserting ``any State or 
                outlying area (as the terms `State' and `outlying area' 
                are defined in section 2 of such Act)''.
            (7) Appalachian regional development act of 1965.--Section 
        214(c) of the Appalachian Regional Development Act of 1965 (40 
        U.S.C. App. 214(c)) (as amended by subsection (c)(5)) is 
        further amended by striking ``Carl D. Perkins Vocational 
        Education Act'' and inserting ``Carl D. Perkins Vocational and 
        Applied Technology Education Act of 1997''.
            (8) Vocational education amendments of 1968.--Section 104 
        of the Vocational Education Amendments of 1968 (82 Stat. 1091) 
        is amended by striking ``section 3 of the Carl D. Perkins 
        Vocational Education Act'' and inserting ``the Carl D. Perkins 
        Vocational and Applied Technology Education Act of 1997''.
            (9) Older americans act of 1965.--The Older Americans Act 
        of 1965 (42 U.S.C. 3001 et seq.) is amended--
                    (A) in section 502(b)(1)(N)(i) (42 U.S.C. 
                3056(b)(1)(N)(i)), by striking ``or the Carl D. Perkins 
                Vocational and Applied Technology Education Act (20 
                U.S.C. 2301 et seq.)''; and
                    (B) in section 505(d)(2) (42 U.S.C. 3056c(d)(2))--
                            (i) by striking ``employment and training 
                        programs'' and inserting ``workforce investment 
                        activities''; and
                            (ii) by striking ``the Carl D. Perkins 
                        Vocational and Applied Technology Education Act 
                        (20 U.S.C. 2301 et seq.)'' and inserting ``the 
                        Carl D. Perkins Vocational and Applied 
                        Technology Education Act of 1997''.

                 TITLE II--ADULT EDUCATION AND LITERACY

SEC. 201. SHORT TITLE.

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

SEC. 202. FINDINGS AND PURPOSE.

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

           Subtitle A--Adult Education and Literacy Programs

                     CHAPTER 1--FEDERAL PROVISIONS

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

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

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

    (a) Establishment of Performance Measures.--After consultation with 
eligible agencies, eligible providers, and other interested parties 
(including representatives of business, representatives of labor 
organizations, and institutions of higher education), the Secretary 
shall establish and publish performance measures described in this 
subsection that assess the progress of each eligible agency in 
enhancing and developing more fully the literacy skills of the adult 
population in the State or outlying area. The measures, at a minimum, 
shall include--
            (1) demonstrated improvements in literacy skill levels in 
        reading and writing the English language, numeracy, and problem 
        solving;
            (2) attainment of secondary school diplomas or their 
        recognized equivalent;
            (3) placement in, retention in, or completion of, 
        postsecondary education, training, or unsubsidized employment; 
        and
            (4) other performance measures the Secretary determines 
        necessary.
    (b) Expected Levels of Performance.--In developing a State plan, 
each eligible agency shall negotiate with the Secretary the expected 
levels of performance for the performance measures described in 
subsection (a).

SEC. 213. NATIONAL LEADERSHIP ACTIVITIES.

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

                      CHAPTER 2--STATE PROVISIONS

SEC. 221. STATE ADMINISTRATION.

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

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

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

SEC. 223. STATE LEADERSHIP ACTIVITIES.

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

SEC. 224. STATE PLAN.

    (a) 3-Year Plans.--
            (1) In general.--Each eligible agency desiring a grant 
        under this subtitle for any fiscal year shall submit to, or 
        have on file with, the Secretary a 3-year State plan.
            (2) Comprehensive plan or application.--The eligible agency 
        may submit the State plan as part of a comprehensive plan or 
        application for Federal education assistance.
    (b) Plan Contents.--In developing the State plan, and any revisions 
to the State plan, the eligible agency shall include in the State plan 
or revisions--
            (1) an objective assessment of the needs of individuals in 
        the State for adult education and literacy activities, 
        including individuals most in need or hardest to serve, such as 
        educationally disadvantaged adults, immigrants, individuals 
        with limited English proficiency, incarcerated individuals, 
        homeless individuals, recipients of public assistance, and 
        individuals with disabilities;
            (2) a description of the adult education and literacy 
        activities that will be carried out with any funds received 
        under this subtitle;
            (3) a description of how the eligible agency will evaluate 
        annually the effectiveness of the adult education and literacy 
        activities based on the performance measures described in 
        section 212;
            (4) a description of how the eligible agency will ensure 
        that the data reported to the eligible agency from eligible 
        providers under this subtitle and the data the eligible agency 
        reports to the Secretary are complete, accurate, and reliable;
            (5) a description of the performance measures required 
        under section 212(a) and how such performance measures and the 
        expected levels of performance will ensure improvement of adult 
        education and literacy activities in the State or outlying 
        area;
            (6) an assurance that the funds received under this 
        subtitle will not be expended for any purpose other than for 
        activities under this subtitle;
            (7) a description of how the eligible agency will fund 
        local activities in accordance with the priorities described in 
        section 242(a);
            (8) a description of how the eligible agency will determine 
        which eligible providers are eligible for funding in accordance 
        with the preference described in section 242(b);
            (9) a description of how funds will be used for State 
        leadership activities, which activities may include 
        professional development and training, instructional 
        technology, and management technology;
            (10) an assurance that the eligible agency will expend the 
        funds under this subtitle only in a manner consistent with 
        fiscal requirement in section 241;
            (11) a description of the process that will be used for 
        public participation and comment with respect to the State 
        plan;
            (12) a description of how the eligible agency will develop 
        program strategies for populations that include, at a minimum--
                    (A) low-income students;
                    (B) individuals with disabilities;
                    (C) single parents and displaced homemakers; and
                    (D) individuals with multiple barriers to 
                educational enhancement;
            (13) a description of the measures that will be taken by 
        the eligible agency to assure coordination of and avoid 
        duplication among--
                    (A) adult education activities authorized under 
                this subtitle;
                    (B) activities authorized under title III;
                    (C) programs authorized under the Wagner-Peyser Act 
                (29 U.S.C. 49 et seq.), title I of the Rehabilitation 
                Act of 1973 (29 U.S.C. 720 et seq.), part A of title IV 
                of the Social Security Act (42 U.S.C. 601 et seq.), 
                section 6(d) of the Food Stamp Act of 1977 (7 U.S.C. 
                2015(d)), and title V of the Older Americans Act of 
                1965 (42 U.S.C. 3056 et seq.);
                    (D) a work program authorized under section 6(o) of 
                the Food Stamp Act of 1977 (7 U.S.C. 2015(o));
                    (E) activities authorized under chapter 2 of title 
                II of the Trade Act of 1974 (19 U.S.C. 2271 et seq.);
                    (F) activities authorized under chapter 41 of title 
                38, United States Code;
                    (G) activities carried out by the Bureau of 
                Apprenticeship and Training;
                    (H) training activities carried out by the 
                Department of Housing and Urban Development; and
                    (I) programs authorized under State unemployment 
                compensation laws and the Federal unemployment 
                insurance program under titles III, IX, and XII of the 
                Social Security Act (42 U.S.C. 501 et seq., 1101 et 
                seq., and 1321 et seq.); and
            (14) the description and information specified in 
        paragraphs (8) and (16) of section 304(b).
    (c) Plan Revisions.--When changes in conditions or other factors 
require substantial revisions to an approved State plan, the eligible 
agency shall submit a revision to the State plan to the Secretary.
    (d) Consultation.--The eligible agency shall--
            (1) submit the State plan, and any revisions to the State 
        plan, to the Governor of the State for review and comment; and
            (2) ensure that any comments by the Governor regarding the 
        State plan, and any revision to the State plan, are submitted 
        to the Secretary.
    (e) Plan Approval.--
            (1) In general.--The Secretary shall approve a State plan, 
        or a revision to an approved State plan, only if the Secretary 
        determines that--
                    (A) the State plan, or revision, respectively, 
                meets the requirements of this section; and
                    (B) the State's performance measures and expected 
                levels of performance under section 212 are 
                sufficiently rigorous to meet the purpose of this 
                title.
            (2) Disapproval.--The Secretary shall not finally 
        disapprove a State plan, except after giving the eligible 
        agency notice and an opportunity for a hearing.
            (3) Peer review.--The Secretary shall establish a peer 
        review process to make recommendations regarding the approval 
        of State plans and revisions to the State plan.

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

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

                      CHAPTER 3--LOCAL PROVISIONS

SEC. 231. GRANTS AND CONTRACTS FOR ELIGIBLE PROVIDERS.

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

SEC. 232. LOCAL APPLICATION.

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

SEC. 233. LOCAL ADMINISTRATIVE COST LIMITS.

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

                     CHAPTER 4--GENERAL PROVISIONS

SEC. 241. ADMINISTRATIVE PROVISIONS.

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

SEC. 242. PRIORITIES AND PREFERENCES.

    (a) Priorities.--Each eligible agency and eligible provider 
receiving assistance under this subtitle shall give priority in using 
the assistance to adult education and literacy activities that--
            (1) are built on a strong foundation of research and 
        effective educational practice;
            (2) effectively employ advances in technology, as 
        appropriate, including the use of computers;
            (3) provide learning in real life contexts to ensure that 
        an individual has the skills needed to compete in a global 
        economy and exercise the rights and responsibilities of 
        citizenship;
            (4) are staffed by well-trained instructors, counselors, 
        and administrators;
            (5) are of sufficient intensity and duration for 
        participants to achieve substantial learning gains, such as by 
        earning a basic skills certificate that reflects skills 
        acquisition and has meaning to employers;
            (6) establish measurable performance levels for participant 
        outcomes, such as levels of literacy achieved and attainment of 
        a secondary school diploma or its recognized equivalent, that 
        are tied to challenging State performance levels for literacy 
        proficiency;
            (7) coordinate with other available resources in the 
        community, such as by establishing strong links with elementary 
        schools and secondary schools, postsecondary institutions, 1-
        stop customer service centers, job training programs, and 
        social service agencies;
            (8) offer flexible schedules and support services (such as 
        child care and transportation) that are necessary to enable 
        individuals, including individuals with disabilities or other 
        special needs, to attend and complete programs; and
            (9) maintain a high-quality information management system 
        that has the capacity to report client outcomes and to monitor 
        program performance against the State performance measures.
    (b) Preferences.--In determining which eligible providers will 
receive funds under this subtitle for a fiscal year, each eligible 
agency receiving a grant under this subtitle, in addition to addressing 
the priorities described in subsection (a), shall--
            (1) give preference to eligible providers that the eligible 
        agency determines serve local areas with high concentrations of 
        individuals in poverty or with low levels of literacy 
        (including English language proficiency); and
            (2) consider--
                    (A) the results, if any, of the evaluations 
                required under section 245(a); and
                    (B) the degree to which the eligible provider will 
                coordinate with and utilize other literacy and social 
                services available in the community.

SEC. 243. INCENTIVE GRANTS.

    (a) In General.--The Secretary may make grants to States that 
exceed--
            (1) the State performance measures established by the 
        Secretary of Education under this Act; and
            (2) the State performance measures established under title 
        III.
    (b) Priority.--In awarding incentive grants under this section, the 
Secretary shall give priority to those States submitting a State 
unified plan as described in section 501 that is approved by the 
appropriate Secretaries as described in such section.
    (c) Use of Funds.--A State that receives an incentive grant under 
this section shall use the funds made available through the grant to 
carry out innovative programs as determined by the State.

SEC. 244. EVALUATION, IMPROVEMENT, AND ACCOUNTABILITY.

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

SEC. 245. NATIONAL INSTITUTE FOR LITERACY.

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

SEC. 246. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out this title 
such sums as may be necessary for fiscal year 1998 and each of the 3 
succeeding fiscal years.

                           Subtitle B--Repeal

SEC. 251. REPEAL.

    (a) Repeal.--The Adult Education Act (20 U.S.C. 1201 et. seq.) is 
repealed.
    (b) Conforming Amendments.--
            (1) Refugee education assistance act.--Subsection (b) of 
        section 402 of the Refugee Education Assistance Act of 1980 (8 
        U.S.C. 1522 note) is repealed.
            (2) Elementary and secondary education act of 1965.--
                    (A) Section 1202 of esea.--Section 1202(c)(1) of 
                the Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 6362(c)(1)) is amended by striking ``Adult 
                Education Act'' and inserting ``Workforce Investment 
                Partnership Act of 1997''.
                    (B) Section 1205 of esea.--Section 1205(8)(B) of 
                such Act (20 U.S.C. 6365(8)(B)) is amended by striking 
                ``Adult Education Act'' and inserting ``Workforce 
                Investment Partnership Act of 1997''.
                    (C) Section 1206 of esea.--Section 1206(a)(1)(A) of 
                such Act (20 U.S.C. 6366(a)(1)(A)) is amended by 
                striking ``an adult basic education program under the 
                Adult Education Act'' and inserting ``adult education 
                and literacy activities under the Workforce Investment 
                Partnership Act of 1997''.
                    (D) Section 3113 of esea.--Section 3113(1) of such 
                Act (20 U.S.C. 6813(1)) is amended by striking 
                ``section 312 of the Adult Education Act'' and 
                inserting ``section 2 of the Workforce Investment 
                Partnership Act of 1997''.
                    (E) Section 9161 of esea.--Section 9161(2) of such 
                Act (20 U.S.C. 7881(2)) is amended by striking 
                ``section 312(2) of the Adult Education Act'' and 
                inserting ``section 2 of the Workforce Investment 
                Partnership Act of 1997''.
            (3) Older americans act of 1965.--Section 203(b)(8) of the 
        Older Americans Act of 1965 (42 U.S.C. 3013(b)(8)) is amended 
        by striking ``Adult Education Act'' and inserting ``Workforce 
Investment Partnership Act of 1997''.
            (4) National literacy act of 1991.--The National Literacy 
        Act of 1991 (20 U.S.C. 1201 note) is repealed.

         TITLE III--WORKFORCE INVESTMENT AND RELATED ACTIVITIES

              Subtitle A--Workforce Investment Activities

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

SEC. 301. GENERAL AUTHORIZATION.

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

SEC. 302. STATE ALLOTMENTS.

    (a) In General.--The Secretary shall--
            (1) make allotments and grants from the total amount 
        appropriated under section 322(a) for a fiscal year in 
        accordance with subsection (b)(1);
            (2)(A) reserve 20 percent of the amount appropriated under 
        section 322(b) for a fiscal year for use under section 
        366(b)(2), 367(f), and 369; and
            (B) make allotments and grants from 80 percent of the 
        amount appropriated under section 322(b) for a fiscal year in 
        accordance with subsection (b)(2); and
            (3)(A) for each fiscal year in which the amount 
        appropriated under section 322(c) exceeds $1,000,000,000, 
        reserve a portion determined under subsection (b)(3)(A) of the 
        amount appropriated under section 322(c) for use under sections 
        362 and 364; and
            (B) use the remainder of the amount appropriated under 
        section 322(c) for a fiscal year to make allotments and grants 
        in accordance with subparagraphs (B) and (C) of subsection 
        (b)(3) and make funds available for use under section 361.
    (b) Allotment Among States.--
            (1) Adult employment and training activities.--
                    (A) Outlying areas.--
                            (i) In general.--From the amount made 
                        available under subsection (a)(1) for a fiscal 
                        year, the Secretary shall reserve not more than 
                        \1/4\ of 1 percent--
                                    (I) to provide assistance to the 
                                outlying areas to carry out adult 
                                employment and training activities; and
                                    (II) for each of the fiscal years 
                                1999 through 2003, to carry out the 
                                competition described in clause (iii), 
                                except that the amount reserved to 
                                carry out such clause for any such 
                                fiscal year shall not exceed the amount 
                                reserved for the Freely Associated 
                                States for fiscal year 1998, from 
                                amounts reserved under section 
                                202(a)(1) of the Job Training 
                                Partnership Act (29 U.S.C. 1602(a)(1)) 
                                (as in effect on the day before the 
                                date of enactment of this Act).
                            (ii) Application.--To be eligible to 
                        receive a grant under this subparagraph, an 
                        outlying area shall submit an application to 
                        the Secretary at such time, in such manner, and 
                        containing such information and assurances as 
                        the Secretary may require.
                            (iii) Competitive grants.--The Secretary 
                        shall use funds described in clause (i)(II) to 
                        make grants to outlying areas to carry out 
                        adult employment and training activities.
                            (iv) Basis.--The Secretary shall make 
                        grants pursuant to clause (iii) on a 
                        competitive basis and pursuant to the 
                        recommendations of experts in the field of 
                        employment and training, working through the 
                        Pacific Region Educational Laboratory in 
                        Honolulu, Hawaii.
                            (v) Assistance requirements.--Any Freely 
                        Associated State that desires to receive a 
                        grant made under this subparagraph shall 
                        include in the application of the State for 
                        assistance--
                                    (I) information demonstrating that 
                                the State will meet all conditions of 
                                the regulations described in clause 
                                (ix); and
                                    (II) an assurance that, 
                                notwithstanding any other provision of 
                                this title, the State will use the 
                                amounts made available through such 
                                grants only for the direct provision of 
                                services.
                            (vi) Termination of eligibility.--
                        Notwithstanding any other provision of law, the 
                        Freely Associated States shall not receive any 
                        funds under this subparagraph for any program 
                        year that begins after September 30, 2004.
                            (vii) Administrative costs.--The Secretary 
                        may provide not more than 5 percent of the 
                        amount made available for grants under clause 
                        (iii) to pay the administrative costs of the 
                        Pacific Region Educational Laboratory in 
                        Honolulu, Hawaii, regarding activities assisted 
under this subparagraph.
                            (viii) Additional requirement.--The 
                        provisions of Public Law 95-134, permitting the 
                        consolidation of grants by the outlying areas 
                        shall not apply to funds provided to those 
                        areas, including the Freely Associated States, 
                        under this subparagraph.
                            (ix) Regulations.--The Secretary shall 
                        issue regulations specifying requirements of 
                        this title that apply to outlying areas 
                        receiving funds under this subparagraph.
                            (x) Definition.--In this subparagraph, the 
                        term ``Freely Associated States'' means the 
                        Republic of the Marshall Islands, the Federated 
                        States of Micronesia, and the Republic of 
                        Palau.
                    (B) States.--
                            (i) In general.--After determining the 
                        amount to be reserved under subparagraph (A), 
                        the Secretary shall allot the remainder of the 
                        amount referred to in subsection (a)(1) 
                        relating to a fiscal year to the States 
                        pursuant to clause (ii) for adult employment 
                        and training activities.
                            (ii) Formula.--Subject to clauses (iii) and 
                        (iv), of the remainder--
                                    (I) 33\1/3\ percent shall be 
                                allotted on the basis of the relative 
                                number of unemployed individuals in 
                                areas of substantial unemployment in 
                                each State as compared to the total 
                                number of unemployed individuals in 
                                areas of substantial unemployment in 
                                all States;
                                    (II) 33\1/3\ percent shall be 
                                allotted on the basis of the relative 
                                excess number of unemployed individuals 
                                in each State 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 disadvantaged adults in each 
                                State as compared to the total number 
                                of disadvantaged adults in all States.
                            (iii) Minimum and maximum percentages.--
                                    (I) Minimum percentage.--No State 
                                shall receive an allotment percentage 
                                for a fiscal year that is less than 90 
                                percent of the allotment percentage of 
                                the State for the preceding fiscal 
                                year.
                                    (II) Maximum percentage.--No State 
                                shall receive an allotment percentage 
                                for a fiscal year that is more than 130 
                                percent of the allotment percentage of 
                                the State for the preceding fiscal 
                                year.
                            (iv) Small state minimum allotment.--No 
                        State shall receive an allotment under this 
                        subparagraph that is less than \1/2\ of 1 
                        percent of the remainder described in clause 
                        (i) for a fiscal year. Amounts necessary for 
                        increasing such allotments to States to comply 
                        with the preceding sentence shall be obtained 
                        by ratably reducing the allotments to be made 
                        to other States under this subparagraph.
                            (v) Definitions.--In this subparagraph:
                                    (I) Allotment percentage.--The term 
                                ``allotment percentage'', used with 
                                respect to fiscal year 1999 or a 
                                subsequent fiscal year, means a 
                                percentage of the remainder described 
                                in clause (i), received through an 
                                allotment made under this subparagraph, 
                                for the fiscal year. The term, used 
                                with respect to fiscal year 1998, means 
                                the percentage of the amounts allocated 
                                under section 202(b) of the Job 
                                Training Partnership Act (29 U.S.C. 
                                1602(b)) (as in effect on the day 
                                before the date of enactment of this 
                                Act) received under such section by 
                                service delivery areas in the State 
                                involved for fiscal year 1998.
                                    (II) Area of substantial 
                                unemployment.--The term ``area of 
                                substantial unemployment'' means any 
                                area that is of sufficient size and 
                                scope to sustain a program of workforce 
                                investment activities carried out under 
this subtitle and that has an average rate of unemployment of at least 
6.5 percent for the most recent 12 months, as determined by the 
Secretary. For purposes of this subclause, determinations of areas of 
substantial unemployment shall be made once each fiscal year.
                                    (III) Disadvantaged adult.--The 
                                term ``disadvantaged adult'' means an 
                                individual who is not less than age 22 
                                and not more than age 72 and is a low-
                                income individual.
                                    (IV) Excess number.--The term 
                                ``excess number'' means the number of 
                                unemployed individuals in excess of 4.5 
                                percent of the civilian labor force in 
                                a State.
            (2) Dislocated worker employment and training.--
                    (A) Outlying areas.--
                            (i) In general.--From the amount made 
                        available under subsection (a)(2)(B) for a 
                        fiscal year, the Secretary shall reserve not 
                        more than \1/4\ of 1 percent--
                                    (I) to provide assistance to the 
                                outlying areas to carry out dislocated 
                                worker employment and training 
                                activities; and
                                    (II) for each of the fiscal years 
                                1999 through 2003, to carry out the 
                                competition described in clause (iii), 
                                except that the amount reserved to 
                                carry out such clause for any such 
                                fiscal year shall not exceed the amount 
                                reserved for the Freely Associated 
                                States for fiscal year 1998, from 
                                amounts reserved under section 302(b) 
                                of the Job Training Partnership Act (29 
                                U.S.C. 1652(b)) (as in effect on the 
                                day before the date of enactment of 
                                this Act).
                            (ii) Application.--To be eligible to 
                        receive a grant under this subparagraph, an 
                        outlying area shall submit an application to 
                        the Secretary at such time, in such manner, and 
                        containing such information and assurances as 
                        the Secretary may require.
                            (iii) Competitive grants.--The Secretary 
                        shall use funds described in clause (i)(II) to 
                        make grants to outlying areas to carry out 
                        dislocated worker employment and training 
                        activities.
                            (iv) Basis.--The Secretary shall make 
                        grants pursuant to clause (iii) on a 
                        competitive basis and pursuant to the 
                        recommendations of experts in the field of 
                        employment and training, working through the 
                        Pacific Region Educational Laboratory in 
                        Honolulu, Hawaii.
                            (v) Assistance requirements.--Any Freely 
                        Associated State that desires to receive a 
                        grant made under this subparagraph shall 
                        include in the application of the State for 
                        assistance--
                                    (I) information demonstrating that 
                                the State will meet all conditions of 
                                the regulations described in clause 
                                (ix); and
                                    (II) an assurance that, 
                                notwithstanding any other provision of 
                                this title, the State will use the 
                                amounts made available through such 
                                grants only for the direct provision of 
                                services.
                            (vi) Termination of eligibility.--
                        Notwithstanding any other provision of law, the 
                        Freely Associated States shall not receive any 
                        funds under this subparagraph for any program 
                        year that begins after September 30, 2004.
                            (vii) Administrative costs.--The Secretary 
                        may provide not more than 5 percent of the 
                        amount made available for grants under clause 
                        (iii) to pay the administrative costs of the 
                        Pacific Region Educational Laboratory in 
                        Honolulu, Hawaii, regarding activities assisted 
                        under this subparagraph.
                            (viii) Additional requirement.--The 
                        provisions of Public Law 95-134, permitting the 
                        consolidation of grants by the outlying areas, 
                        shall not apply to funds provided to those 
                        areas, including the Freely Associated States, 
                        under this subparagraph.
                            (ix) Regulations.--The Secretary shall 
                        issue regulations specifying requirements of 
                        this title that apply to outlying areas 
                        receiving funds under this subparagraph.
                            (x) Definition.--In this subparagraph, the 
                        term ``Freely Associated States'' means the 
                        Republic of the Marshall Islands, the Federated 
                        States of Micronesia, and the Republic of 
                        Palau.
                    (B) States.--
                            (i) In general.--After determining the 
                        amount to be reserved under subparagraph (A), 
                        the Secretary shall allot the remainder of the 
                        amount referred to in subsection (a)(2)(B) 
                        relating to a fiscal year to the States 
                        pursuant to clause (ii) for dislocated worker 
                        employment and training activities.
                            (ii) Formula.--Subject to clause (iii), of 
                        the remainder--
                                    (I) 33\1/3\ percent shall be 
                                allotted on the basis of the relative 
                                number of unemployed individuals in 
                                each State as compared to the total 
                                number of unemployed individuals in all 
                                States;
                                    (II) 33\1/3\ percent shall be 
                                allotted on the basis described in 
                                paragraph (1)(B)(ii)(II); and
                                    (III) 33\1/3\ percent shall be 
                                allotted on the basis of the relative 
                                number of individuals in each State who 
                                have been unemployed for 15 weeks or 
                                more as compared to the total number of 
                                individuals in all States who have been 
                                unemployed for 15 weeks or more.
                            (iii) Small state minimum allotment.--
                                    (I) In general.--Except as provided 
                                in subclause (II), the requirements of 
                                clauses (iv) and (v) of paragraph 
                                (1)(B) shall apply to allotments made 
                                under this subparagraph in the same 
                                manner and to the same extent as the 
                                requirements apply to allotments made 
                                under paragraph (1)(B).
                                    (II) Exception.--For purposes of 
                                applying the requirements of those 
                                clauses under this subparagraph 
                                references in those clauses to the 
                                remainder described in clause (i) of 
                                paragraph (1)(B) shall be considered to 
                                be references to the remainder 
                                described in clause (i) of this 
                                subparagraph.
            (3) Youth activities.--
                    (A) Youth opportunity grants.--
                            (i) In general.--For each fiscal year in 
                        which the amount appropriated under section 
                        322(c) exceeds $1,000,000,000, the Secretary 
                        shall reserve a portion of the amount to 
                        provide youth opportunity grants under section 
                        364 and provide youth activities under section 
                        362.
                            (ii) Portion.--The portion referred to in 
                        clause (i) shall equal, for a fiscal year--
                                    (I) except as provided in subclause 
                                (II), the difference obtained by 
                                subtracting $1,000,000,000 from the 
                                amount described in clause (i); and
                                    (II) for any fiscal year in which 
                                the amount is $1,250,000,000 or 
                                greater, $250,000,000.
                            (iii) Youth activities for farmworkers.--
                        From the portion described in clause (i) for a 
                        fiscal year, the Secretary shall make available 
                        $10,000,000 to provide youth activities under 
                        section 362.
                    (B) Outlying areas.--
                            (i) In general.--From the amount made 
                        available under subsection (a)(3)(B) for a 
                        fiscal year, the Secretary shall reserve not 
                        more than \1/4\ of 1 percent--
                                    (I) to provide assistance to the 
                                outlying areas to carry out youth 
                                activities; and
                                    (II) for each of the fiscal years 
                                1999 through 2003, to carry out the 
                                competition described in clause (iii), 
                                except that the amount reserved to 
                                carry out such clause for any such 
                                fiscal year shall not exceed the amount 
                                reserved for the Freely Associated 
                                States for fiscal year 1998, from 
                                amounts reserved under sections 252(a) 
                                and 262(a)(1) of the Job Training 
                                Partnership Act (29 U.S.C. and 1631(a) 
                                and 1642(a)(1)) (as in effect on the 
                                day before the date of enactment of 
                                this Act).
                            (ii) Application.--To be eligible to 
                        receive a grant under this subparagraph, an 
                        outlying area shall submit an application to 
                        the Secretary at such time, in such manner, and 
                        containing such information and assurances as 
                        the Secretary may require.
                            (iii) Competitive grants.--The Secretary 
                        shall use funds described in clause (i)(II) to 
                        make grants to outlying areas to carry out 
                        youth activities.
                            (iv) Basis.--The Secretary shall make 
                        grants pursuant to clause (iii) on a 
                        competitive basis and pursuant to the 
                        recommendations of experts in the field of 
                        employment and training, working through the 
                        Pacific Region Educational Laboratory in 
                        Honolulu, Hawaii.
                            (v) Assistance requirements.--Any Freely 
                        Associated State that desires to receive a 
                        grant made under this subparagraph shall 
                        include in the application of the State for 
                        assistance--
                                    (I) information demonstrating that 
                                the State will meet all conditions of 
                                the regulations described in clause 
                                (ix); and
                                    (II) an assurance that, 
                                notwithstanding any other provision of 
                                this title, the State will use the 
                                amounts made available through such 
                                grants only for the direct provision of 
                                services.
                            (vi) Termination of eligibility.--
                        Notwithstanding any other provision of law, the 
                        Freely Associated States shall not receive any 
                        funds under this subparagraph for any program 
                        year that begins after September 30, 2004.
                            (vii) Administrative costs.--The Secretary 
                        may provide not more than 5 percent of the 
                        amount made available for grants under clause 
                        (iii) to pay the administrative costs of the 
                        Pacific Region Educational Laboratory in 
                        Honolulu, Hawaii, regarding activities assisted 
                        under this subparagraph.
                            (viii) Additional requirement.--The 
                        provisions of Public Law 95-134, permitting the 
                        consolidation of grants by the outlying areas, 
                        shall not apply to funds provided to those 
                        areas, including the Freely Associated States, 
                        under this subparagraph.
                            (ix) Regulations.--The Secretary shall 
                        issue regulations specifying requirements of 
                        this title that apply to outlying areas 
                        receiving funds under this subparagraph.
                            (x) Definition.--In this subparagraph, the 
                        term ``Freely Associated States'' means the 
                        Republic of the Marshall Islands, the Federated 
                        States of Micronesia, and the Republic of 
                        Palau.
                    (C) States.--
                            (i) In general.--After determining the 
                        amounts to be reserved under subparagraph (A) 
                        (if any) and subparagraph (B), the Secretary 
                        shall--
                                    (I) from the amount referred to in 
                                subsection (a)(3)(B) relating to a 
                                fiscal year, make available $15,000,000 
                                to provide youth activities under 
                                section 361; and
                                    (II) allot the remainder of the 
                                amount referred to in subsection 
                                (a)(3)(B) relating to a fiscal year to 
                                the States pursuant to clause (ii) for 
                                youth activities.
                            (ii) Formula.--Subject to clause (iii), of 
                        the remainder--
                                    (I) 33\1/3\ percent shall be 
                                allotted on the basis described in 
                                paragraph (1)(B)(ii)(I);
                                    (II) 33\1/3\ percent shall be 
                                allotted on the basis described in 
                                paragraph (1)(B)(ii)(II); and
                                    (III) 33\1/3\ percent shall be 
                                allotted on the basis of the relative 
                                number of disadvantaged youth in each 
                                State as compared to the total number 
                                of disadvantaged youth in all States.
                            (iii) Minimum percentage; maximum 
                        percentage; small state minimum allotment.--
                                    (I) In general.--Except as provided 
                                in subclause (II), the requirements of 
                                clauses (iii), (iv), and (v) of 
                                paragraph (1)(B) shall apply to 
                                allotments made under this subparagraph 
                                in the same manner and to the same 
                                extent as the requirements apply to 
                                allotments made under paragraph (1)(B).
                                    (II) Exceptions.--For purposes of 
                                applying the requirements of those 
                                clauses under this subparagraph--
                                            (aa) references in those 
                                        clauses to the remainder 
                                        described in clause (i) of 
                                        paragraph (1)(B) shall be 
                                        considered to be references to 
                                        the remainder described in 
                                        clause (i)(II) of this 
                                        subparagraph; and
                                            (bb) the term ``allotment 
                                        percentage'', used with respect 
                                        to fiscal year 1998, means the 
                                        percentage of the amounts 
                                        allocated under sections 252(b) 
                                        and 262(b) of the Job Training 
                                        Partnership Act (29 U.S.C. 
                                        1631(b) and 1642(b)) (as in 
                                        effect on the day before the 
                                        date of enactment of this Act) 
                                        received under such sections by 
                                        service delivery areas in the 
                                        State involved for fiscal year 
                                        1998.
                            (iv) Definition.--In this subparagraph, the 
                        term ``disadvantaged youth'' means an 
                        individual who is not less than age 14 and is 
                        not more than age 21 and is a low-income 
                        individual.

SEC. 303. STATEWIDE PARTNERSHIP.

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

SEC. 304. STATE PLAN.

    (a) In General.--For a State to be eligible to receive an allotment 
under section 302, the Governor of the State shall submit to the 
Secretary for approval a single comprehensive State plan (referred to 
in this title as the ``State plan'') that outlines a 3-year strategy 
for the statewide workforce investment system of the State and that 
meets the requirements of section 303 and this section.
    (b) Contents.--The State plan shall include--
            (1) a description of the statewide partnership described in 
        section 303 used in developing the plan;
            (2) a description of State-imposed requirements for the 
        statewide workforce investment system;
            (3) a description of the State performance measures 
        developed for the workforce investment activities to be carried 
        out through the system, that includes information identifying 
        the State performance measures, established in accordance with 
        section 321(a);
            (4) information describing--
                    (A) the needs of the State with regard to current 
                and projected employment opportunities;
                    (B) the job skills necessary to obtain the needed 
                employment opportunities;
                    (C) the economic development needs of the State; 
                and
                    (D) the type and availability of workforce 
                investment activities in the State;
            (5) an identification of local areas designated in the 
        State, including a description of the process used for the 
        designation of such areas, which shall--
                    (A) ensure a linkage between participants in 
                workforce investment activities funded under this 
                subtitle, and local employment opportunities;
                    (B) ensure that a significant portion of the 
                population that lives in the local area also works in 
                the same local area;
                    (C) ensure cooperation and coordination of 
                activities between neighboring local areas; and
                    (D) take into consideration State economic 
                development areas;
            (6) an identification of criteria for the appointment of 
        members of local partnerships based on the requirements of 
        section 308;
            (7) the detailed plans required under section 8 of the 
        Wagner-Peyser Act;
            (8) a description of the measures that will be taken by the 
        State to assure coordination of and avoid duplication among--
                    (A) workforce investment activities authorized 
                under this subtitle;
                    (B) other activities authorized under this title;
                    (C) activities authorized under title I or II;
                    (D) programs authorized under the Wagner-Peyser Act 
                (29 U.S.C. 49 et seq.), title I of the Rehabilitation 
                Act of 1973 (29 U.S.C. 720 et seq.), part A of title IV 
                of the Social Security Act (42 U.S.C. 601 et seq.), and 
                section 6(d) of the Food Stamp Act of 1977 (7 U.S.C. 
                2015(d)), and activities authorized under title V of 
                the Older Americans Act of 1965 (42 U.S.C. 3056 et 
                seq.);
                    (E) work programs authorized under section 6(o) of 
                the Food Stamp Act of 1977 (7 U.S.C. 2015(o));
                    (F) activities authorized under chapter 2 of title 
                II of the Trade Act of 1974 (19 U.S.C. 2271 et seq.);
                    (G) activities authorized under chapter 41 of title 
                38, United States Code;
                    (H) activities carried out by the Bureau of 
                Apprenticeship and Training;
                    (I) training activities carried out by the 
                Department of Housing and Urban Development; and
                    (J) programs authorized under State unemployment 
                compensation laws and the Federal unemployment 
                insurance program under titles III, IX, and XII of the 
                Social Security Act (42 U.S.C. 501 et seq., 1101 et 
                seq., and 1321 et seq.);
            (9) a description of the process used by the State to 
        provide an opportunity for public comment, and input into the 
        development of the State plan, prior to submission of the plan;
            (10) a description of the process for the public to comment 
        on members of the local partnerships;
            (11) a description of the length of terms and appointment 
        processes for members of the statewide partnership and local 
        partnerships in the State;
            (12) information identifying how the State will leverage 
        any funds the State receives under this subtitle with other 
        private and Federal resources;
            (13) assurances that the State will provide, in accordance 
        with section 374, for fiscal control and fund accounting 
        procedures that may be necessary to ensure the proper 
        disbursement of, and accounting for, funds paid to the State 
        through the allotment made under section 302;
            (14) if appropriate, a description of a within-State 
        allocation formula--
                    (A) that is based on factors relating to excess 
                poverty in local areas or excess unemployment above the 
                State average in local areas; and
                    (B) through which the State may distribute the 
                funds the State receives under this subtitle for adult 
                employment and training activities or youth activities 
                to local areas;
            (15) an assurance that the funds made available to the 
        State through the allotment made under section 302 will 
        supplement and not supplant other public funds expended to 
        provide activities described in this subtitle;
            (16) information indicating--
                    (A) how the services of one-stop partners in the 
                State will be provided through the one-stop customer 
                service system;
                    (B) how the costs of such services and the 
                operating costs of the system will be funded; and
                    (C) how the State will assist in the development 
                and implementation of the operating agreement described 
                in section 311(c);
            (17) information specifying the actions that constitute a 
        conflict of interest prohibited in the State for purposes of 
        section 308(g)(2)(B);
            (18) a description of a core set of consistently defined 
        data elements for reporting on the activities carried out 
        through the one-stop customer service system in the State;
            (19) with respect to employment and training activities 
        funded under this subtitle, information--
                    (A) describing the employment and training 
                activities that will be carried out with the funds the 
                State receives under this subtitle, and a description 
                of how the State will provide rapid response activities 
                to dislocated workers;
                    (B) describing the State strategy for development 
                of a fully operational statewide one-stop customer 
                service system as described in section 315(b), 
                including--
                            (i) criteria for use by chief elected 
                        officials and local partnerships, for 
                        designating or certifying one-stop customer 
                        service center operators, appointing one-stop 
                        partners, and conducting oversight with respect 
                        to the one-stop customer service system, for 
                        each local area; and
                            (ii) the steps that the State will take 
                        over the 3 years covered by the plan to ensure 
                        that all publicly funded labor exchange 
                        services described in section 315(c)(2) or the 
                        Wagner-Peyser Act (29 U.S.C. 49 et seq.), will 
                        be available through the one-stop customer 
                        service system of the State;
                    (C) describing the criteria used by the local 
                partnership in the development of the local plan 
                described in section 309; and
                    (D) describing the procedures the State will use to 
                identify eligible providers of training services, as 
                required under this subtitle; and
            (20) with respect to youth activities funded under this 
        subtitle, information--
                    (A) describing the youth activities that will be 
                carried out with the funds the State receives under 
                this subtitle;
                    (B) identifying the criteria to be used by the 
                local partnership in awarding grants under section 313 
                for youth activities;
                    (C) identifying the types of criteria the Governor 
                and local partnerships will use to identify effective 
                and ineffective youth activities and eligible providers 
                of such activities; and
                    (D) describing how the State will coordinate the 
                youth activities carried out in the State under this 
                subtitle with the services provided by Job Corps 
                centers in the State.
    (c) Plan Submission and Approval.--A State plan submitted to the 
Secretary under this section by a Governor shall be considered to be 
approved by the Secretary at the end of the 60-day period beginning on 
the day the Secretary receives the plan, unless the Secretary makes a 
written determination, during the 60-day period, that--
            (1) the plan is inconsistent with a specific provision of 
        this title; or
            (2) the levels of performance have not been agreed to 
        pursuant to section 321(a)(4).
    (d) Modifications to Initial Plan.--A State may submit, for 
approval by the Secretary, substantial modifications to the State plan 
in accordance with the requirements of this section and section 303, as 
necessary, during the 3-year period of the plan.

       CHAPTER 2--ALLOCATIONS TO LOCAL WORKFORCE INVESTMENT AREAS

SEC. 306. WITHIN STATE ALLOCATIONS.

    (a) Reservations for State Activities.--
            (1) Adult employment and training activities, dislocated 
        worker employment and training activities, and youth 
        activities.--The Governor of a State shall reserve not more 
        than 15 percent of each of the amounts allotted to the State 
under paragraphs (1)(B), (2)(B), and (3)(C)(ii) of section 302(b) for a 
fiscal year for statewide workforce investment activities described in 
subsections (b)(2) and (c) of section 314.
            (2) Statewide rapid response activities.--The Governor of 
        the State shall reserve not more than 25 percent of the total 
        amount allotted to the State under section 302(b)(2)(B) for a 
        fiscal year for statewide rapid response activities described 
        in section 314(b)(1).
    (b) Within State Allocation.--
            (1) Allocation.--The Governor of the State shall allocate 
        to the local areas the funds that are allotted to the State 
        under section 302(b) and are not reserved under subsection (a) 
        for the purpose of providing employment and training activities 
        to eligible participants pursuant to section 315 and youth 
        activities to eligible participants pursuant to section 316.
            (2) Methods.--The State, acting in accordance with the 
        State plan, and after consulting with chief elected officials 
        in the local areas, shall allocate--
                    (A) the funds that are allotted to the State for 
                adult employment and training activities under section 
                302(b)(1)(B) and are not reserved under subsection 
                (a)(1), in accordance with paragraph (3) or (4);
                    (B) the funds that are allotted to the State for 
                dislocated worker employment and training activities 
                under section 302(b)(2)(B) and are not reserved under 
                paragraph (1) or (2) of subsection (a), in accordance 
                with paragraph (3); and
                    (C) the funds that are allotted to the State for 
                youth activities under section 302(b)(3)(C)(ii) and are 
                not reserved under subsection (a)(1), in accordance 
                with paragraph (3) or (4).
            (3) Adult employment and training activities, dislocated 
        worker employment and training activities, and youth activities 
        formula allocations.--
                    (A) Adult employment and training activities.--In 
                allocating the funds described in paragraph (2)(A) to 
                local areas, a State may allocate--
                            (i) 33\1/3\ percent of the funds on the 
                        basis described in section 302(b)(1)(B)(ii)(I);
                            (ii) 33\1/3\ percent of the funds on the 
                        basis described in section 
                        302(b)(1)(B)(ii)(II); and
                            (iii) 33\1/3\ percent of the funds on the 
                        basis described in section 
                        302(b)(1)(B)(ii)(III).
                    (B) Dislocated worker employment and training 
                activities.--In allocating the funds described in 
                paragraph (2)(B) to local areas, a State shall 
                allocate--
                            (i) 33\1/3\ percent of the funds on the 
                        basis described in section 302(b)(2)(B)(ii)(I);
                            (ii) 33\1/3\ percent of the funds on the 
                        basis described in section 
                        302(b)(2)(B)(ii)(II); and
                            (iii) 33\1/3\ percent of the funds on the 
                        basis described in section 
                        302(b)(2)(B)(ii)(III).
                    (C) Youth activities.--In allocating the funds 
                described in paragraph (2)(C) to local areas, a State 
                may allocate--
                            (i) 33\1/3\ percent of the funds on the 
                        basis described in section 302(b)(3)(C)(ii)(I);
                            (ii) 33\1/3\ percent of the funds on the 
                        basis described in section 
                        302(b)(3)(C)(ii)(II); and
                            (iii) 33\1/3\ percent of the funds on the 
                        basis described in section 
                        302(b)(3)(C)(ii)(III).
                    (D) Application.--For purposes of carrying out 
                subparagraphs (A), (B), and (C), and subparagraphs (A) 
                and (B) of paragraph (4)--
                            (i) references in section 302(b) to a State 
                        shall be deemed to be references to a local 
                        area; and
                            (ii) references in section 302(b) to all 
                        States shall be deemed to be references to all 
                        local areas in the State involved.
            (4) Adult employment and training and youth discretionary 
        allocations.--
                    (A) Adult employment and training activities.--In 
                lieu of making the allocation described in paragraph 
                (3)(A), in allocating the funds described in paragraph 
                (2)(A) to local areas, a State may distribute--
                            (i) a portion equal to not less than 70 
                        percent of the funds in accordance with 
                        paragraph (3)(A); and
                            (ii) the remaining portion of the funds on 
                        the basis of a formula that--
                                    (I) takes into consideration 
                                factors relating to excess poverty in 
                                local areas or excess unemployment 
                                above the State average in local areas; 
                                and
                                    (II) was developed by the statewide 
                                partnership and approved by the 
                                Secretary as part of the State plan.
                    (B) Youth activities.--In lieu of making the 
                allocation described in paragraph (3)(C), in allocating 
                the funds described in paragraph (2)(C) to local areas, 
                a State may distribute--
                            (i) a portion equal to not less than 70 
                        percent of the funds in accordance with 
                        paragraph (3)(C); and
                            (ii) the remaining portion of the funds on 
                        the basis of a formula that--
                                    (I) takes into consideration 
                                factors relating to excess youth 
                                poverty in local areas or excess 
                                unemployment above the State average in 
                                local areas; and
                                    (II) was developed by the statewide 
                                partnership and approved by the 
                                Secretary as part of the State plan.
            (5) Limitation.--
                    (A) In general.--Not more than 15 percent of the 
                amount allocated to a local area for a fiscal year--
                            (i) under paragraph (3)(A) or (4)(A) may be 
                        used by the local partnership for the area for 
                        the administrative cost of carrying out local 
                        adult employment and training activities;
                            (ii) under paragraph (3)(B) may be used by 
                        the local partnership for the administrative 
                        cost of carrying out local dislocated worker 
                        employment and training activities; and
                            (iii) under paragraph (3)(C) or (4)(B) may 
                        be used by the local partnership for the 
                        administrative cost of carrying out local youth 
                        activities.
                    (B) Regulations.--The Secretary, after consulting 
                with the Governors, shall develop and issue regulations 
                that define the term ``administrative cost'' for 
                purposes of this title.
            (6) Transfer authority.--A local partnership may transfer, 
        if such a transfer is approved by the Governor, not more than 
        20 percent of the funds allocated to the local area under 
        paragraph (3)(A) or (4)(A), and 20 percent of the funds 
        allocated to the local area under paragraph (3)(B), for a 
        fiscal year between--
                    (A) adult employment and training activities; and
                    (B) dislocated worker employment and training 
                activities.
            (7) Fiscal authority.--
                    (A) Fiscal agent.--The chief elected official in a 
                local area shall serve as the fiscal agent for, and 
                shall be liable for any misuse of, the funds allocated 
                to the local area under this section, unless the chief 
                elected official reaches an agreement with the Governor 
                for the Governor to act as the fiscal agent and bear 
                such liability.
                    (B) Disbursal.--The fiscal agent shall disburse 
                such funds for workforce investment activities at the 
                direction of the local partnership, pursuant to the 
                requirements of this title, if the direction does not 
                violate a provision of this Act. The fiscal agent shall 
                disburse funds immediately on receiving such direction 
                from the local partnership.

SEC. 307. LOCAL WORKFORCE INVESTMENT AREAS.

    (a) Designation of Areas.--
            (1) In general.--Except as provided in subsection (b) and 
        paragraph (2), the Governor shall designate local workforce 
        investment areas in the State, in accordance with the State 
        plan requirements described in section 304(b)(5).
            (2) Automatic designation.--
                    (A) In general.--The Governor of the State shall 
                approve a request for designation as a local area from 
                any unit of general local government with a population 
                of 500,000 or more, if the designation meets the State 
                plan requirements described in section 304(b)(5).
                    (B) Large counties.--A county with a population of 
                500,000 or more may request such designation only with 
                the agreement of the political subdivisions within the 
                county with populations of 200,000 or more.
                    (C) Large political subdivisions.--Single units of 
                general local government with populations of 200,000 or 
                more that are service delivery areas on the date of 
enactment of this Act shall have an automatic right to request 
designation as local areas under this section.
            (3) Permanent designation.--Once the boundaries for a local 
        area are determined under this section in accordance with the 
        State plan, the boundaries shall not change except with the 
        approval of the Governor.
    (b) Small States.--The Governor of any State determined to be 
eligible to receive a minimum allotment under paragraph (1), (2), or 
(3) of section 302(b) for the first year covered by the State plan may 
designate the State as a single State local area for the purposes of 
this title. The Governor shall identify the State as a local area under 
section 304(b)(5), in lieu of designating local areas as described in 
subparagraphs (A), (B), and (C) of section 304(b)(5).

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

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

SEC. 309. LOCAL PLAN.

    (a) In General.--Each local partnership shall develop and submit to 
the Governor a comprehensive 3-year local plan (referred to in this 
title as the ``local plan''), in partnership with the appropriate chief 
elected official. The local plan shall be consistent with the State 
plan.
    (b) Contents.--The local plan shall include--
            (1) an identification of the needs of the local area with 
        regard to current and projected employment opportunities;
            (2) an identification of the job skills necessary to obtain 
        such employment opportunities;
            (3) a description of the activities to be used under this 
        subtitle to link local employers and local job seekers;
            (4) an identification and assessment of the type and 
        availability of adult and dislocated worker employment and 
        training activities in the local area;
            (5) an identification of successful eligible providers of 
        youth activities in the local area;
            (6) a description of the measures that will be taken by the 
        local area to assure coordination of and avoid duplication 
        among the programs and activities described in section 
        304(b)(8);
            (7) a description of the manner in which the local 
        partnership will coordinate activities carried out under this 
        subtitle in the local area with such activities carried out in 
        neighboring local areas;
            (8) a description of the competitive process to be used to 
        award grants in the local area for activities carried out under 
        this subtitle;
            (9) information describing local performance measures for 
        the local area that are based on the performance measures in 
        the State plan;
            (10) in accordance with the State plan, a description of 
        the criteria that the chief elected official in the local area 
        and the local partnership will use to appoint, designate, or 
        certify, and to conduct oversight with respect to, one-stop 
        customer service center systems in the local area; and
            (11) such other information as the Governor may require.
    (c) Plan Submission and Approval.--A local plan submitted to the 
Governor under this section shall be considered to be approved by the 
Governor at the end of the 60-day period beginning on the day the 
Governor receives the plan, unless the Governor makes a written 
determination during the 60-day period that--
            (1) entities conducting evaluations conducted under section 
        321(d) in the local area have found deficiencies in activities 
        carried out under this subtitle and the local area has not made 
        acceptable progress in implementing corrective measures to 
        address the deficiencies; or
            (2) the plan does not comply with this title.
    (d) Lack of Agreement.--If the local partnership and the 
appropriate chief elected official in the local area cannot agree on 
the local plan after making a reasonable effort, the Governor may 
develop the local plan.

        CHAPTER 3--WORKFORCE INVESTMENT ACTIVITIES AND PROVIDERS

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

    (a) In General.--Consistent with the State plan, the chief elected 
official and the local partnership may develop and implement operating 
agreements described in subsection (c) to appoint one-stop partners, 
may designate or certify one-stop customer service center operators, 
and may conduct oversight with respect to the one-stop customer service 
system, in the local area.
    (b) One-Stop Partners.--
            (1) Designated partners.--
                    (A) In general.--Each entity that carries out a 
                program, services, or activities described in 
                subparagraph (B) shall make available to participants, 
                through a one-stop customer service center, the 
                services described in section 315(c)(2) that are 
                applicable to such program, and shall participate in 
                the operation of such center as a party to the 
                agreement described in subsection (c).
                    (B) Programs; services; activities.--The programs, 
                services, and activities referred to in subparagraph 
                (A) consist of--
                            (i) core services authorized under this 
                        subtitle;
                            (ii) other activities authorized under this 
                        title;
                            (iii) activities authorized under title I 
                        and title II;
                            (iv) programs authorized under the Wagner-
                        Peyser Act (29 U.S.C. 49 et seq.);
                            (v) programs authorized under title I of 
                        the Rehabilitation Act of 1973 (29 U.S.C. 729 
                        et seq.);
                            (vi) programs authorized under section 
                        403(a)(5) of the Social Security Act (42 U.S.C. 
                        603(a)(5)) (as added by section 5001 of the 
                        Balanced Budget Act of 1997);
                            (vii) programs authorized under title V of 
                        the Older Americans Act of 1965 (42 U.S.C. 3056 
                        et seq.);
                            (viii) activities authorized under chapter 
                        2 of title II of the Trade Act of 1974 (19 
                        U.S.C. 2271 et seq.);
                            (ix) activities authorized under chapter 41 
                        of title 38, United States Code;
                            (x) activities carried out by the Bureau of 
                        Apprenticeship and Training;
                            (xi) training activities carried out by the 
                        Department of Housing and Urban Development; 
                        and
                            (xii) programs authorized under State 
                        unemployment compensation laws and the Federal 
                        unemployment insurance program under titles 
                        III, IX, and XII of the Social Security Act (42 
                        U.S.C. 501 et seq., 1101 et seq., and 1321 et 
                        seq.).
            (2) Additional partners.--
                    (A) In general.--In addition to the entities 
                described in paragraph (1), other entities that carry 
                out human resource programs may make available to 
                participants through a one-stop customer service center 
                the services described in section 315(c)(2) that are 
                applicable to such program, and participate in the 
                operation of such centers as a party to the agreement 
                described in subsection (c), if the local partnership 
                and chief elected official involved approve such 
                participation.
                    (B) Programs.--The programs referred to in 
                subparagraph (A) include--
                            (i) programs authorized under part A of 
                        title IV of the Social Security Act;
                            (ii) programs authorized under section 
                        6(d)(4) of the Food Stamp Act of 1977 (7 U.S.C. 
                        2015(d)(4));
                            (iii) work programs authorized under 
                        section 6(o) of the Food Stamp Act of 1997 (7 
                        U.S.C. 2015 (o)); and
                            (iv) other appropriate Federal, State, or 
                        local programs, including programs in the 
                        private sector.
    (c) Operating Agreements.--
            (1) In general.--The one-stop customer service center 
        operator selected pursuant to subsection (d) for a one-stop 
        customer service center shall enter into a written agreement 
        with the local partnership and one-stop partners described in 
        subsection (b) concerning the operation of the center. Such 
        agreement shall be subject to the approval of the chief elected 
        official and the local partnership.
            (2) Contents.--The written agreement required under 
        paragraph (1) shall contain--
                    (A) provisions describing--
                            (i) the services to be provided through the 
                        center;
                            (ii) how the costs of such services and the 
                        operating costs of the system will be funded,
                            (iii) methods for referral of individuals 
                        between the one-stop customer service center 
                        operators and the one-stop partners, for the 
                        appropriate services and activities;
                            (iv) the monitoring and oversight of 
                        activities carried out under the agreement; and
                            (v) the duration of the agreement and the 
                        procedures for amending the agreement during 
                        the term of the agreement; and
                    (B) such other provisions, consistent with the 
                requirements of this title, as the parties to the 
                agreement determine to be appropriate.
    (d) One-Stop Customer Service Center Operators.--
            (1) In general.--To be eligible to receive funds made 
        available under this subtitle to operate a one-stop customer 
        service center, an entity shall--
                    (A) be designated or certified as a one-stop 
                customer service center operator, as described in 
                subsection (a); and
                    (B) be a public or private entity, or consortium of 
                entities, located in the local area, which entity or 
                consortium may include an institution of higher 
                education (as defined in section 481 of the Higher 
                Education Act of 1965 (20 U.S.C. 1088), a local 
                employment service office established under the Wagner-
                Peyser Act (29 U.S.C. 49 et seq.), a local government 
                agency, a private for-profit entity, a private 
                nonprofit entity, or other interested entity, of 
                demonstrated effectiveness.
            (2) Exception.--Elementary schools and secondary schools 
        shall not be eligible for designation or certification as one-
        stop customer service center operators, except that 
        nontraditional secondary schools and area vocational education 
        schools shall be eligible for such designation or 
        certification.
    (e) Established One-Stop Customer Service System.--For a local area 
in which a one-stop customer service system has been established prior 
to the date of enactment of this Act, the local partnership, the chief 
elected official, and the Governor may agree to appoint, designate, or 
certify the one-stop partners and one-stop customer service center 
operators of such system, for purposes of this section.
    (f) Oversight.--The local partnership shall conduct oversight with 
respect to the one-stop customer service center system and may 
terminate for cause the eligibility of such a partner or operator to 
provide activities through or operate a one-stop customer service 
center.

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

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

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

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

SEC. 314. STATEWIDE WORKFORCE INVESTMENT ACTIVITIES.

    (a) In General.--Funds reserved by a Governor for a State--
            (1) under section 306(a)(2) shall be used to carry out the 
        statewide rapid response activities described in subsection 
        (b)(1); and
            (2) under section 306(a)(1)--
                    (A) shall be used to carry out the statewide 
                workforce investment activities described in subsection 
                (b)(2); and
                    (B) may be used to carry out any of the statewide 
                workforce investment activities described in subsection 
                (c),
        regardless of whether the funds were allotted to the State 
        under paragraph (1), (2), or (3) of section 302(b).
    (b) Required Statewide Workforce Investment Activities.--
            (1) Statewide rapid response activities.--A State shall use 
        funds reserved under section 306(a)(2) to carry out statewide 
        rapid response activities, which shall include--
                    (A) provision of rapid response activities, carried 
                out in local areas by the State, working in conjunction 
                with the local partnership and the chief elected 
                official in the local area; and
                    (B) provision of additional assistance to local 
                areas that experience disasters, mass layoffs or plant 
                closings, or other events that precipitate substantial 
                increases in the number of unemployed individuals, 
                carried out in the local areas by the State, working in 
                conjunction with the local partnership and the chief 
                elected official in the local areas.
            (2) Other required statewide workforce investment 
        activities.--A State shall use funds reserved under section 
        306(a)(1) to carry out other statewide workforce investment 
        activities, which shall include--
                    (A) disseminating the list of eligible providers of 
                training services, including eligible providers of 
                nontraditional training services, and the performance 
                information as described in subsections (b) and (c) of 
                section 312 and a list of eligible providers of youth 
                activities described in section 313;
                    (B) conducting evaluations, under section 321(d), 
                of activities authorized in this section, section 315, 
                and section 316, in coordination with the activities 
                carried out under section 368;
                    (C) provision of incentive grants to local areas 
                for regional cooperation among local partnerships, for 
                local coordination and nonduplication of activities 
                carried out under this Act, and for comparative 
                performance by local areas on the local performance 
                measures described in section 321(b);
                    (D) providing technical assistance to local areas 
                that fail to meet local performance measures;
                    (E) assisting in the establishment and operation of 
                a one-stop customer service system; and
                    (F) operation of a fiscal and management 
                accountability information system under section 321(e).
    (c) Allowable Statewide Workforce Investment Activities.--
            (1) In general.--A State may use funds reserved under 
        section 306(a)(1) to carry out additional statewide workforce 
        investment activities, which may include--
                    (A) subject to paragraph (2), administration by the 
                State of the workforce investment activities carried 
                out under this subtitle;
                    (B) identification and implementation of incumbent 
                worker training programs, which may include the 
                establishment and implementation of an employer loan 
                program;
                    (C) carrying out other activities authorized in 
                section 315 that the State determines to be necessary 
                to assist local areas in carrying out activities 
                described in subsection (c) or (d) of section 315 
                through the statewide workforce investment system; and
                    (D) carrying out, on a statewide basis, activities 
                described in section 316.
            (2) Limitation.--Of the reserved funds described in 
        paragraph (1)(A), a portion, equal to not more than 5 percent 
        of the total amount allotted to the State under paragraphs (1), 
        (2), and (3) of section 302(b) for the fiscal year involved, 
        may be used for the administration of the workforce investment 
        activities carried out under this subtitle. Funds made 
        available from the portion may be used for the administration 
        of any of the workforce investment activities, regardless of 
        whether the funds were allotted to the State under paragraph 
        (1), (2), or (3) of section 302(b).

SEC. 315. LOCAL EMPLOYMENT AND TRAINING ACTIVITIES.

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

SEC. 316. LOCAL YOUTH ACTIVITIES.

    (a) Purposes.--The purposes of this section are--
            (1) to provide effective and comprehensive activities to 
        youth seeking assistance in achieving academic and employment 
        success;
            (2) to ensure continuous contact for youth with committed 
        adults;
            (3) to provide opportunities for training to youth;
            (4) to provide continued support services for youth;
            (5) to provide incentives for recognition and achievement 
        to youth; and
            (6) to provide opportunities for youth in activities 
        related to leadership, development, decisionmaking, 
        citizenship, and community service.
    (b) Required Elements.--Funds received by a local area under 
paragraph (3)(C) or (4)(B) of section 306(b) shall be used to carry 
out, for youth who seek the activities, activities that--
            (1) consist of the provision of--
                    (A) tutoring, study skills training, and 
                instruction, leading to completion of secondary school, 
                including dropout prevention strategies;
                    (B) alternative secondary school services;
                    (C) summer employment opportunities and other paid 
                and unpaid work experiences, including internships;
                    (D) employment skill training, as appropriate;
                    (E) community service and leadership development 
                opportunities;
                    (F) services described in section 315(c)(2);
                    (G) supportive services;
                    (H) adult mentoring for the period of participation 
                and a subsequent period, for a total of not less than 
                12 months; and
                    (I) followup services for not less than 12 months 
                after the completion of participation, as appropriate;
            (2) provide--
                    (A) preparation for postsecondary educational 
                opportunities, in appropriate cases;
                    (B) strong linkages between academic and 
                occupational learning; and
                    (C) preparation for unsubsidized employment 
                opportunities, in appropriate cases; and
            (3) involve parents, participants, and other members of the 
        community with experience relating to youth in the design and 
        implementation of the activities.
    (c) Priority.--At a minimum, 50 percent of the funds described in 
subsection (b) shall be used to provide youth activities to out-of-
school youth.
    (d) Prohibitions.--
            (1) No local education curriculum.--No funds described in 
        subsection (b) shall be used to develop or implement local 
        school system education curricula.
            (2) Nonduplication.--No funds described in subsection (b) 
        shall be used to carry out activities that duplicate federally 
        funded activities available to youth in the local area.
            (3) Noninterference and nonreplacement of regular academic 
        requirements.--No funds described in subsection (b) shall be 
        used to provide an activity for youth who are not school 
        dropouts if participation in the activity would interfere with 
        or replace the regular academic requirements of the youth.

                     CHAPTER 4--GENERAL PROVISIONS

SEC. 321. ACCOUNTABILITY.

    (a) Purpose.--The purpose of this section is to provide 
comprehensive performance measures to assess the progress of States and 
local areas (including eligible providers and programs of activities 
authorized under this subtitle that are made available in the States 
and local areas), in assisting both employers and jobseekers in meeting 
their employment needs, in order to ensure an adequate return on the 
investment of Federal funds for the activities.
    (b) State Performance Measures.--
            (1) In general.--To be eligible to receive an allotment 
        under section 302, a State shall establish, and identify in the 
        State plan, State performance measures. Each State performance 
        measure shall consist of an indicator of performance, referred 
        to in paragraph (2) or (3), and a performance level, referred 
        to in paragraph (4).
            (2) Core indicators of performance.--The State performance 
        measures shall contain indicators of performance, including, at 
        a minimum--
                    (A) core indicators of performance for adults, 
                including dislocated workers, participating in 
                activities that are training services, which indicators 
                consist of--
                            (i) placement in unsubsidized employment 
                        related to the training received through the 
                        activities;
                            (ii) retention in unsubsidized employment 
                        related to the training received through the 
                        activities--
                                    (I) 6 months after completion of 
                                participation in the activities; and
                                    (II) 12 months after completion of 
                                participation;
                            (iii) wages received by such participants 
                        who are placed in unsubsidized employment 
                        related to the training received through the 
                        activities after completion of participation--
                                    (I) on the first day of the 
                                employment;
                                    (II) 6 months after the first day 
                                of the employment; and
                                    (III) 12 months after the first day 
                                of the employment; and
                            (iv) percentage of wage replacement for 
                        dislocated workers placed in unsubsidized 
                        employment related to the training received 
                        through the activities;
                    (B) core indicators of performance for adults, 
                including dislocated workers, participating in 
                activities that are core services, which indicators 
                consist of the indicators described in clauses (i) 
                through (iv) of subparagraph (A); and
                    (C) core indicators of performance for youth 
                participating in youth activities under section 316, 
                that consist of--
                            (i) attainment of secondary school diplomas 
                        or their recognized equivalents;
                            (ii) attainment of job readiness and 
                        employment skills;
                            (iii) placement in, retention in, and 
                        completion of postsecondary education, advanced 
                        training, or an apprenticeship;
                            (iv) placement in unsubsidized employment 
                        related to the training received through the 
                        activities;
                            (v) retention in unsubsidized employment 
                        related to the training received through the 
                        activities--
                                    (I) 6 months after completion of 
                                participation in the activities; and
                                    (II) 12 months after completion of 
                                participation; and
                            (vi) wages received by such participants 
                        who are placed in unsubsidized employment 
                        related to the training received through the 
                        activities, after completion of participation--
                                    (I) on the first day of the 
                                employment;
                                    (II) 6 months after the first day 
                                of the employment; and
                                    (III) 12 months after the first day 
                                of the employment.
            (3) Customer satisfaction indicator.--The State performance 
        measures shall contain an indicator of performance with respect 
        to customer satisfaction of employers and participants, which 
        may be measured through surveys conducted after the conclusion 
        of participation in workforce investment activities.
            (4) State levels of performance.--In order to ensure an 
        adequate return on the investment of Federal funds in workforce 
        investment activities, the Secretary and each Governor shall 
        reach agreement on the levels of performance expected to be 
        achieved by the State, on the State performance measures 
        established pursuant to this subsection. In reaching the 
        agreement, the Secretary and Governor shall establish a level 
        of performance for each indicator of performance described in 
        paragraph (2) or (3). Such agreement shall take into account--
                    (A) how the levels compare with the levels 
                established by other States, taking into consideration 
                the specific circumstances, including economic 
                circumstances, of each State; and
                    (B) the extent to which such levels promote 
                continuous improvement in performance by such State and 
                ensure an adequate return on the investment of Federal 
                funds.
            (5) Populations.--In developing the State performance 
        measures, a State shall develop and identify in the State plan 
        State performance measures for populations that include, at a 
        minimum--
                    (A) disadvantaged adults;
                    (B) dislocated workers;
                    (C) out-of-school youth; and
                    (D) individuals with disabilities.
    (b) Local Performance Measures.--
            (1) In general.--Each Governor shall negotiate and reach 
        agreement with the local partnership and the chief elected 
        official in each local area on local performance measures. Each 
        local performance measure shall consist of an indicator of 
        performance referred to in paragraph (2) or (3) of subsection 
        (a), and a performance level referred to in paragraph (2).
            (2) Performance levels.--Based on the expected levels of 
        performance established pursuant to subsection (a)(4), the 
        Governor shall negotiate and reach agreement with the local 
        partnership and the chief elected official in each local area 
        regarding the levels of performance expected to be achieved for 
        the local area on the indicators of performance.
            (3) Populations.--In negotiating and reaching agreement on 
        the local performance measures, the Governor, local 
        partnership, and chief elected official, shall negotiate and 
        reach agreement on local performance measures for populations 
        that include, at a minimum, the populations described in 
        subsection (a)(5). The local partnership shall identify these 
        local performance measures in the local plan.
    (c) Report.--
            (1) In general.--Each State that receives an allotment 
        under section 302 shall annually prepare and submit to the 
        Secretary a report on the progress of the State in achieving 
        State performance measures. The annual report shall also 
        include information regarding the progress of local areas in 
        achieving local performance measures. The report shall also 
        include information on the status of State evaluations of 
        workforce investment activities described in subsection (d).
            (2) Additional information.--In preparing such report, the 
        State shall include, at a minimum, information relating to--
                    (A) the performance of graduates of programs of 
                training services as compared to former enrollees in 
                the programs, with the respect to the core indicators 
                described in subsection (a)(2)(A);
                    (B) the educational attainment of such graduates 
                and former enrollees;
                    (C) the cost of the workforce investment activities 
                relative to the impact of the activities on the 
                performance of graduates on the core indicators; and
                    (D) the performance of welfare recipients, 
                veterans, individuals with disabilities, and displaced 
                homemakers with respect to the core indicators 
                described in subparagraphs (A) and (B) of subsection 
                (a)(2).
            (3) Information dissemination.--The Secretary shall make 
        the information contained in such reports available to 
        Congress, the Library of Congress, and the public through 
        publication and other appropriate methods, and shall 
        disseminate State-by-State comparisons of the information that 
        take into consideration the specific circumstances, including 
        economic circumstances, of the States.
            (4) Definition.--In this subsection, the term ``welfare 
        recipient'' means a person receiving payments described in 
        section 2(24)(A).
    (d) Evaluation of State Programs.--
            (1) Workforce investment activities.--Using funds reserved 
        under section 306(a)(1), a State shall conduct ongoing 
        evaluations of workforce investment activities carried out in 
        the State under this subtitle.
            (2) Criteria for longitudinal studies.--The evaluations 
        shall include longitudinal studies of the workforce investment 
        activities. Evaluation criteria for purposes of the 
        longitudinal studies shall be developed in conjunction with 
        statewide partnerships and local partnerships. The criteria 
        shall measure the relationship between the level of public 
        funding for the activities and the degree to which the 
        activities promote employment and wage gains. Such longitudinal 
        studies shall be conducted by an evaluator who is unaffiliated 
        with the statewide partnership or the local partnership and 
        shall include measures that reflect the State performance 
        measures.
            (3) Additional studies.--The State shall also fund 
        evaluation studies of the workforce investment activities. The 
        evaluation studies shall provide ongoing analysis to statewide 
        partnerships and local partnerships to promote efficiency and 
        effectiveness in improving employability outcomes for 
        jobseekers and competitiveness for employers. Such evaluation 
        studies shall be designed in conjunction with statewide 
        partnerships and local partnerships, and shall include analysis 
        of customer feedback, and outcome and process measures.
    (e) Fiscal and Management Accountability Information Systems.--
            (1) In general.--Using funds reserved under section 
        306(a)(1), the Governor shall operate a fiscal and management 
        accountability information system, based on guidelines 
        established by the Secretary in consultation with the Governors 
        and other appropriate parties. Such guidelines shall promote 
        the efficient collection and use of fiscal and management 
        information for reporting and monitoring the use of funds made 
        available to the State under this subtitle for workforce 
        investment activities and for use by the State in preparing the 
        annual report described in subsection (c). In measuring the 
        progress of the State on State and local performance measures, 
        a State shall utilize quarterly wage records available through 
        the unemployment insurance system.
            (2) Confidentiality.--In carrying out the requirements of 
        this Act, the State shall comply with section 444 of the 
        General Education Provisions Act (20 U.S.C. 1232g) (as added by 
        the Family Educational Rights and Privacy Act of 1974).
    (f) Sanctions.--
            (1) Determination.--If a State fails to meet 2 or more 
        State performance measures described in this section for each 
        of the 3 years covered by a State plan, the Secretary shall 
        determine whether the failure is attributable to--
                    (A) adult employment and training activities;
                    (B) dislocated worker employment and training 
                activities; or
                    (C) youth activities.
            (2) Technical assistance or reduction of allotments.--The 
        Secretary--
                    (A) may provide technical assistance to the State 
                to improve the level of performance of the State, in 
                accordance with section 366(b); and
                    (B) shall, on finding that a State fails to meet 2 
                or more State performance measures for 2 consecutive 
                years, reduce, by not more than 5 percent, the 
                allotment made under section 302 for the category of 
                activities to which the failure is attributable.
            (3) Funds resulting from reduced allotments.--The Secretary 
        may use an amount retained as a result of a reduction in an 
        allotment made under paragraph (2)(B) to award an incentive 
        grant under section 365 or to provide technical assistance in 
        accordance with section 366.
    (g) Incentive Grants.--The Secretary may make incentive grants 
under section 365 to States that exceed the State performance measures.
    (h) Definitions.--In this section:
            (1) Former enrollee.--The term ``former enrollee'' means an 
        individual who has been selected for and has enrolled in a 
        program of workforce investment activities, but left the 
        program before completing the requirements of the program.
            (2) Graduate.--The term ``graduate'' means an individual 
        who has been selected for and has enrolled in a program of 
        workforce investment activities and has completed the 
        requirements of such program.
    (i) Other Terms.--The Secretary, in consultation with the 
Governors, local partnerships, and other appropriate entities, shall 
issue regulations that identify and define other terms used in this 
title, in order to promote uniformity in the implementation of this 
Act.

SEC. 322. AUTHORIZATION OF APPROPRIATIONS.

    (a) Adult Employment and Training Activities.--There are authorized 
to be appropriated to carry out the activities described in section 
302(a)(1) under this subtitle, such sums as may be necessary for each 
of fiscal years 1999 through 2003.
    (b) Dislocated Worker Employment and Training Activities.--There 
are authorized to be appropriated to carry out the activities described 
in section 302(a)(2) under this subtitle, such sums as may be necessary 
for each of fiscal years 1999 through 2003.
    (c) Youth Activities.--There are authorized to be appropriated to 
carry out the activities described in section 302(a)(3) under this 
subtitle, such sums as may be necessary for each of fiscal years 1999 
through 2003.

                         Subtitle B--Job Corps

SEC. 331. PURPOSES.

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

SEC. 332. DEFINITIONS.

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

SEC. 333. ESTABLISHMENT.

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

SEC. 334. INDIVIDUALS ELIGIBLE FOR THE JOB CORPS.

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

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

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

SEC. 336. ENROLLMENT.

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

SEC. 337. JOB CORPS CENTERS.

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

SEC. 338. PROGRAM ACTIVITIES.

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

SEC. 339. COUNSELING AND JOB PLACEMENT.

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

SEC. 340. SUPPORT.

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

SEC. 341. OPERATING PLAN.

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

SEC. 342. STANDARDS OF CONDUCT.

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

SEC. 343. COMMUNITY PARTICIPATION.

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

SEC. 344. INDUSTRY COUNCILS.

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

SEC. 345. ADVISORY COMMITTEES.

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

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

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

SEC. 347. APPLICATION OF PROVISIONS OF FEDERAL LAW.

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

SEC. 348. SPECIAL PROVISIONS.

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

SEC. 349. MANAGEMENT INFORMATION.

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

SEC. 350. GENERAL PROVISIONS.

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

SEC. 351. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out this subtitle 
such sums as may be necessary for each of the fiscal years 1999 through 
2003.

                     Subtitle C--National Programs

SEC. 361. NATIVE AMERICAN PROGRAMS.

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

SEC. 362. MIGRANT AND SEASONAL FARMWORKER PROGRAMS.

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

SEC. 363. VETERANS' WORKFORCE INVESTMENT PROGRAMS.

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

SEC. 364. YOUTH OPPORTUNITY GRANTS.

    (a) Grants.--
            (1) In general.--Using funds made available under section 
        302(b)(3)(A), the Secretary shall make grants to eligible local 
        partnerships to provide activities described in subsection (b) 
        for youth to increase the long-term employment of eligible 
        youth who live in empowerment zones, enterprise communities, 
        and high poverty areas and who seek assistance.
            (2) Grant period.--The Secretary may make a grant under 
        this section for a 1-year period, and may renew the grant for 
        each of the 4 succeeding years.
            (3) Grant awards.--The minimum amount that may be made 
        available to a grant recipient for the first year of a grant 
        made under this section shall be $10,000,000.
    (b) Use of Funds.--
            (1) In general.--A local partnership that receives a grant 
        under this section shall use the funds made available through 
        the grant to provide activities that meet the requirements of 
        section 316, except as provided in paragraph (2), as well as 
        youth development activities such as activities relating to 
        leadership development, citizenship, and community service, and 
        recreation activities.
            (2) Intensive placement and followup services.--In 
        providing activities under this section, a local partnership 
        shall provide--
                    (A) intensive placement services; and
                    (B) followup services for not less than 24 months 
                after the completion of participation in the other 
                activities described in this subsection, as 
                appropriate.
    (c) Eligible Local Partnerships.--To be eligible to receive a grant 
under this section, a local partnership--
            (1) shall serve a community that--
                    (A) has a population of at least 50,000; and
                    (B) has been designated as an empowerment zone or 
                an enterprise community under section 1391 of the 
                Internal Revenue Code of 1986; or
            (2) in a State without a zone or community described in 
        paragraph (1)(B), shall serve a community that has been 
        designated as a high poverty area by the Governor of the State.
    (d) Application.--To be eligible to receive a grant under this 
section, a local partnership shall submit an application to the 
Secretary at such time, in such manner, and containing such information 
as the Secretary may require, including--
            (1) a description of the activities that the local 
        partnership will provide under this section to youth in the 
        community described in subsection (c);
            (2) a description of the performance measures negotiated 
        under subsection (e), and the manner in which the local 
        partnerships will carry out the activities to meet the 
        performance measures;
            (3) a description of the manner in which the activities 
        will be linked to activities described in section 316; and
            (4) a description of the community support, including 
        financial support through leveraging additional public and 
        private resources, for the activities.
    (e) Performance Measures.--
            (1) In general.--The Secretary shall negotiate and reach 
        agreement with the local partnership on performance measures 
        that will be used to evaluate the performance of the local 
        partnership in carrying out the activities described in 
        subsection (b). Each local performance measure shall consist of 
        an indicator of performance referred to in paragraph (2) or (3) 
        of section 321(a), and a performance level referred to in 
        paragraph (2).
            (2) Performance levels.--The Secretary shall negotiate and 
        reach agreement with the local partnership regarding the levels 
        of performance expected to be achieved for the local 
        partnership on the indicators of performance.

SEC. 365. INCENTIVE GRANTS.

    (a) In General.--The Secretary may make grants to States that 
exceed--
            (1) the State performance measures established by the 
        Secretary of Education under this Act; and
            (2) the State performance measures established under this 
        title.
    (b) Priority.--In awarding incentive grants under this section, the 
Secretary shall give priority to those States submitting a State 
unified plan as described in section 501 that is approved by the 
appropriate Secretaries as described in such section.
    (c) Use of Funds.--A State that receives an incentive grant under 
this section shall use the funds made available through the grant to 
carry out innovative programs as determined by the State.

SEC. 366. TECHNICAL ASSISTANCE.

    (a) Transition Assistance.--The Secretary shall provide technical 
assistance to assist States in making transitions from carrying out 
activities under provisions described in section 391 to carrying out 
activities under this title.
    (b) Performance Improvement.--
            (1) General assistance.--
                    (A) Authority.--The Secretary--
                            (i) shall provide technical assistance to 
                        States that do not meet a State performance 
                        measure described in section 321(a) for a 
                        program year; and
                            (ii) may provide technical assistance to 
                        other States, local areas, and grant recipients 
                        under sections 361 and 362 to promote the 
                        continuous improvement of the programs and 
                        activities authorized under this title.
                    (B) Form of assistance.--In carrying out this 
                paragraph on behalf of a State, or grant recipient 
                under section 361 or 362, the Secretary, after 
                consultation with the State or grant recipient, may 
                award grants and enter into contracts and cooperative 
                agreements.
                    (C) Limitation.--Grants or contracts awarded under 
                this paragraph that are for amounts in excess of 
                $50,000 shall only be awarded on a competitive basis.
            (2) Dislocated worker technical assistance.--
                    (A) Authority.--Of the amounts available pursuant 
                to section 302(a)(2), the Secretary shall reserve not 
                more than 5 percent of such amounts to provide 
                technical assistance to States that do not meet the 
                State performance measures described in section 321(a) 
                with respect to employment and training activities for 
                dislocated workers. Using such reserved funds, the 
                Secretary may provide such assistance to other States, 
                local areas, business and labor organizations, and 
                other entities involved in providing assistance to 
                dislocated workers, to promote the continuous 
                improvement of assistance provided to dislocated 
                workers, under this title.
                    (B) Training.--Amounts reserved under this 
                paragraph may be used to provide for the training of 
                staff, including specialists, who provide rapid 
                response services. Such training shall include 
                instruction in proven methods of promoting, 
                establishing, and assisting labor-management 
                committees. Such projects shall be administered through 
                the dislocated worker office described in section 
                369(b).

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

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

SEC. 368. EVALUATIONS.

    (a) Programs and Activities Carried Under This Title.--For the 
purpose of improving the management and effectiveness of programs and 
activities carried out under this title, the Secretary shall provide 
for the continuing evaluation of the programs and activities. Such 
evaluations shall address--
            (1) the general effectiveness of such programs and 
        activities in relation to their cost;
            (2) the effectiveness of the performance measures relating 
        to such programs and activities;
            (3) the effectiveness of the structure and mechanisms for 
        delivery of services through such programs and activities;
            (4) the impact of the programs and activities on the 
        community and participants involved;
            (5) the impact of such programs and activities on related 
        programs and activities;
            (6) the extent to which such programs and activities meet 
        the needs of various demographic groups; and
            (7) such other factors as may be appropriate.
    (b) Other Programs and Activities.--The Secretary may conduct 
evaluations of other federally funded employment-related programs and 
activities, including programs and activities administered under--
            (1) the Wagner-Peyser Act (29 U.S.C. 49 et seq.);
            (2) the Act of August 16, 1937 (commonly known as the 
        ``National Apprenticeship Act''; 50 Stat. 664, chapter 663; 29 
        U.S.C. 50 et seq.);
            (3) the Older Americans Act of 1965 (42 U.S.C. 3001 et 
        seq.);
            (4) chapter 2 of title II of the Trade Act of 1974 (19 
        U.S.C. 2271 et seq.); and
            (5) the Federal unemployment insurance program under titles 
        III, IX, and XII of the Social Security Act (42 U.S.C. 501 et 
        seq., 1101 et seq., and 1321 et seq.).
    (c) Techniques.--Evaluations conducted under this section shall 
utilize appropriate methodology and research designs, which may include 
the use of control groups chosen by scientific random assignment 
methodologies. Such an evaluation shall be conducted by a person not 
immediately involved in the administration of the program or activity 
being evaluated.
    (d) Reports.--The entity carrying out an evaluation described in 
subsection (a), (b), or (c) shall prepare and submit to the Secretary a 
draft report and a final report containing the results of the 
evaluation.
    (e) Reports to Congress.--Not later than 30 days after the 
completion of such a draft report, the Secretary shall transmit the 
draft report to the appropriate committees of Congress. Not later than 
60 days after the completion of such a final report, the Secretary 
shall transmit the final report to the appropriate committees of 
Congress.

SEC. 369. NATIONAL EMERGENCY GRANTS.

    (a) In General.--The Secretary is authorized to award national 
emergency grants in a timely manner--
            (1) to an entity described in subsection (c) to provide 
        employment and training assistance to workers affected by major 
        economic dislocations, such as plant closures, mass layoffs, or 
        closures and realignments of military installations;
            (2) to provide assistance to the Governor of any State 
        within the boundaries of which is an area that has suffered an 
        emergency or a major disaster as defined in paragraphs (1) and 
        (2), respectively, of section 102 of The Robert T. Stafford 
        Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122 
        (1) and (2)) (referred to in this section as the ``disaster 
        area'') to provide disaster relief employment in the area; and
            (3) to provide additional assistance to a State or local 
        partnership for eligible dislocated workers in a case in which 
        the State or local partnership has expended the funds provided 
        under this section to carry out activities described in 
        paragraphs (1) and (2) and can demonstrate the need for 
        additional funds to provide appropriate services for such 
        workers, in accordance with requirements prescribed by the 
        Secretary.
    (b) Administration.--The Secretary shall designate a dislocated 
worker office to coordinate the functions of the Secretary under this 
title relating to national emergency grants.
    (c) 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 at such time, in such manner, and containing such 
        information as the Secretary may require.
            (2) Eligible entity.--In this subsection, the term 
        ``entity'' means a State, a local partnership, an entity 
        described in section 361(c), an employer or employer 
        association, a labor organization, and an entity determined to 
        be eligible by the Governor of the State involved.
    (d) Disaster Relief Employment Assistance Requirements.--
            (1) In general.--Funds made available under subsection 
        (a)(2)--
                    (A) shall be used to provide disaster relief 
                employment on projects that provide food, clothing, 
                shelter, and other humanitarian assistance for disaster 
                victims, and projects regarding demolition, cleaning, 
                repair, renovation, and reconstruction of damaged and 
                destroyed structures, facilities, and lands located 
                within the disaster area;
                    (B) may be expended through public and private 
                agencies and organizations engaged in such projects; 
                and
                    (C) may be expended to provide the services 
                authorized under section 315(c).
            (2) Eligibility.--An individual shall be eligible to be 
        offered disaster relief employment under subsection (a)(2) if 
        such individual is a dislocated worker, is a long-term 
        unemployed individual, or is temporarily or permanently laid 
        off as a consequence of the disaster.
            (3) Limitations on disaster relief employment.--No 
        individual shall be employed under subsection (a)(2) for more 
        than 6 months for work related to recovery from a single 
        natural disaster.

SEC. 370. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--
            (1) Native american programs; migrant and seasonal 
        farmworker programs; veterans' employment programs.--Subject to 
        subsection (b)(1), there are authorized to be appropriated to 
        carry out sections 361 through 363 such sums as may be 
        necessary for each of the fiscal years 1999 through 2003.
            (2) Incentive grants; technical assistance; demonstration 
        and pilot projects; evaluations.--Subject to subsection (b)(2), 
        there are authorized to be appropriated to carry out sections 
        365 through 368, such sums as may be necessary for each of 
        fiscal years 1999 through 2003.
    (b) Reservations.--
            (1) Native american programs; migrant and seasonal 
        farmworker programs; veterans' employment programs.--Of the 
        amount appropriated under subsection (a)(1) for a fiscal year, 
        the Secretary shall--
                    (A) reserve not less than $55,000,000 for carrying 
                out section 361;
                    (B) reserve not less than $70,000,000 for carrying 
                out section 362; and
                    (C) reserve not less than $7,300,000 for carrying 
                out section 363.
            (2) Incentive grants; technical assistance; demonstration 
        and pilot projects; evaluations.--Of the amount appropriated 
        under subsection (a)(2) for a fiscal year, the Secretary 
        shall--
                    (A) reserve 36.8 percent for carrying out section 
                365;
                    (B) reserve 25 percent for carrying out section 366 
                (other than section 366(b)(2));
                    (C) reserve 24.2 percent of a carrying out section 
                367 (other than 367(f)); and
                    (D) reserve 14 percent for carrying out section 
                368.

                       Subtitle D--Administration

SEC. 371. REQUIREMENTS AND RESTRICTIONS.

    (a) Benefits.--
            (1) Wages.--
                    (A) In general.--Individuals in on-the-job training 
                or individuals employed in programs and activities 
                carried out under this title shall be compensated at 
                the same rates, including periodic increases, as 
                trainees or employees who are similarly situated in 
                similar occupations by the same employer and who have 
                similar skills. Such rates shall be in accordance with 
                applicable law, but in no event less than the higher of 
                the rate specified in section 6(a)(1) of the Fair Labor 
                Standards Act of 1938 (29 U.S.C. 206(a)(1)) or the 
                applicable State or local minimum wage law.
                    (B) Construction.--The reference in subparagraph 
                (A) to section 6(a)(1) of the Fair Labor Standards Act 
                of 1938--
                            (i) shall be deemed to be a reference to 
                        section 6(c) of that Act (29 U.S.C. 206(c)) for 
                        individuals in the Commonwealth of Puerto Rico;
                            (ii) shall be deemed to be a reference to 
                        section 6(a)(3) (29 U.S.C. 206(a)(3)) of that 
                        Act for individuals in American Samoa; and
                            (iii) shall not be applicable for 
                        individuals in other territorial jurisdictions 
                        in which section 6 of the Fair Labor Standards 
                        Act of 1938 (29 U.S.C. 206) does not apply.
            (2) Treatment of allowances, earnings, and payments.--
        Allowances, earnings, and payments to individuals participating 
        in programs and activities carried out under this title shall 
        not be considered to be income for the purposes of determining 
        eligibility for, and the amount of income transfer and in-kind 
        aid furnished under, any Federal or federally assisted program 
        based on need, other than as provided under the Social Security 
        Act (42 U.S.C. 301 et seq.).
    (b) Labor Standards.--
            (1) Displacement.--
                    (A) Prohibition.--A participant in a program or 
                activity authorized under this title (referred to in 
                this subsection as a ``specified activity'') shall not 
                displace (including a partial displacement, such as a 
reduction in the hours of nonovertime work, wages, or employment 
benefits) any currently employed employee (as of the date of the 
participation).
                    (B) Prohibition on impairment of contracts.--A 
                specified activity shall not impair an existing 
                contract for services or collective bargaining 
                agreement, and no such activity that would be 
                inconsistent with the terms of a collective bargaining 
                agreement shall be undertaken without the written 
                concurrence of the labor organization and employer 
                concerned.
            (2) Other prohibitions.--A participant in a specified 
        activity shall not be employed in a job--
                    (A) when any other individual is on layoff from the 
                same or any substantially equivalent job with the 
                participating employer;
                    (B) when the employer has terminated the employment 
                of any regular employee or otherwise reduced the 
                workforce of the employer with the intention of filling 
                the vacancy so created with the participant; or
                    (C) that is created in a promotional line that will 
                infringe in any way on the promotional opportunities of 
                currently employed individuals (as of the date of the 
                participation).
            (3) Health and safety.--Health and safety standards 
        established under Federal and State law otherwise applicable to 
        working conditions of employees shall be equally applicable to 
        working conditions of participants engaged in specified 
        activities. To the extent that a State workers' compensation 
        law applies, workers' compensation shall be provided to 
        participants on the same basis as the compensation is provided 
        to other individuals in the State in similar employment.
            (4) Employment conditions.--Individuals in on-the-job 
        training or individuals employed in programs and activities 
        carried out under this title, shall be provided benefits and 
        working conditions at the same level and to the same extent as 
        other trainees or employees working a similar length of time 
        and doing the same type of work.
            (5) Opportunity to submit comments.--Consistent with 
        sections 303(d)(2) and 309(c), interested members of the public 
        shall be provided an opportunity to submit comments with 
        respect to programs and activities proposed to be funded under 
        subtitle A.
    (c) Grievance Procedure.--
            (1) In general.--Each State receiving an allotment under 
        section 302 and each grant recipient under section 361 or 362 
        shall establish and maintain a procedure for grievances or 
        complaints alleging violations of the requirements of this 
        title from participants and other interested or affected 
        parties. Such procedure shall include an opportunity for a 
        hearing and be completed within 60 days after the date of the 
        filing of the grievance or complaint.
            (2) Investigation.--
                    (A) In general.--The Secretary shall investigate an 
                allegation of a violation described in paragraph (1) 
                if--
                            (i) a decision relating to such violation 
                        has not been reached within 60 days after the 
                        date of the filing of the grievance or 
                        complaint and either party appeals the decision 
                        to the Secretary; or
                            (ii) a decision relating to such violation 
                        has been reached within 60 days after the date 
                        of the filing and the party to which such 
                        decision is adverse appeals the decision to the 
                        Secretary.
                    (B) Additional requirement.--The Secretary shall 
                make a final determination relating to an appeal made 
                under subparagraph (A) no later than 120 days after the 
                date of such appeal.
            (3) Remedies.--Remedies that may be imposed under this 
        subsection for a violation of any requirement of this title 
        shall be limited--
                    (A) to suspension or termination of payments under 
                this title to a person that has violated any 
                requirement of this title;
                    (B) to prohibition of placement of a participant 
                with an employer that has violated any requirement of 
                this title;
                    (C) where applicable, to reinstatement of an 
                employee, payment of lost wages and benefits, and 
                reestablishment of other relevant terms, conditions and 
                privileges of employment; and
                    (D) where appropriate, to other equitable relief.
            (4) Construction.--Nothing in paragraph (3) shall be 
        construed to prohibit a grievant or complainant from pursuing a 
        remedy authorized under another Federal, State, or local law 
        for a violation of this title.
    (d) Relocation.--
            (1) Prohibition on use of funds to encourage or induce 
        relocation.--No funds provided under this title shall be used, 
        or proposed for use, to encourage or induce the relocation of a 
        business or part of a business if such relocation would result 
        in a loss of employment for any employee of such business at 
        the original location and such original location is within the 
        United States.
            (2) Prohibition on use of funds for customized or skill 
        training and related activities after relocation.--No funds 
        provided under this title for an employment and training 
        activity shall be used for customized or skill training, on-
        the-job training, or company-specific assessments of job 
        applicants or employees, for any business or part of a business 
        that has relocated, until the date that is 120 days after the 
        date on which such business commences operations at the new 
        location, if the relocation of such business or part of a 
        business results in a loss of employment for any employee of 
        such business at the original location and such original 
        location is within the United States.
            (3) Repayment.--If the Secretary determines that a 
        violation of paragraph (1) or (2) has occurred, the Secretary 
        shall require the State that has violated such paragraph to 
        repay to the United States an amount equal to the amount 
        expended in violation of such paragraph.
    (e) Limitation on Use of Funds.--No funds available under this 
title shall be used for employment generating activities, economic 
development activities, activities for the capitalization of 
businesses, investment in contract bidding resource centers, or similar 
activities. No funds available under subtitle A shall be used for 
foreign travel.

SEC. 372. PROMPT ALLOCATION OF FUNDS.

    (a) Allotments and Allocations Based on Latest Available Data.--All 
allotments and allocations under section 302, 306, or 366 shall be 
based on the latest available data and estimates satisfactory to the 
Secretary. All data relating to disadvantaged adults, disadvantaged 
youth, and low-income individuals shall be based on the most recent 
satisfactory data from the Bureau of the Census.
    (b) Publication in Federal Register Relating to Formula Funds.--
Whenever the Secretary allots funds required to be allotted under 
section 302 or 366, the Secretary shall publish in a timely fashion in 
the Federal Register the proposed amount to be distributed to each 
recipient of the funds.
    (c) Requirement for Funds Distributed by Formula.--All funds 
required to be allotted or allocated under section 302, 306, or 366 
shall be allotted or allocated within 45 days after the date of 
enactment of the Act appropriating the funds, except that, if such 
funds are appropriated in advance as authorized by section 379(g), such 
funds shall be allotted or allocated not later than the March 31 
preceding the program year for which such funds are to be available for 
obligation.
    (d) Availability of Funds.--Funds shall be made available under 
section 306 to the chief elected official for a local area not later 
than 30 days after the date the funds are made available to the 
Governor involved, under section 302, or 7 days after the date the 
local plan for the area is approved, whichever is later.

SEC. 373. MONITORING.

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

SEC. 374. FISCAL CONTROLS; SANCTIONS.

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

SEC. 375. REPORTS; RECORDKEEPING; INVESTIGATIONS.

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

SEC. 376. ADMINISTRATIVE ADJUDICATION.

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

SEC. 377. JUDICIAL REVIEW.

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

SEC. 378. NONDISCRIMINATION.

    (a) Prohibited Discrimination.--
            (1) Prohibition on discrimination in federal programs and 
        activities.--For the purpose of applying the prohibitions 
        against discrimination on the basis of age under the Age 
        Discrimination Act of 1975 (42 U.S.C. 6101 et seq.), on the 
        basis of disability under section 504 of the Rehabilitation Act 
        of 1973 (29 U.S.C. 794), on the basis of sex under title IX of 
        the Education Amendments of 1972 (20 U.S.C. 1681 et seq.), 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 in whole or in part under this 
        title shall be considered to be programs and activities 
        receiving Federal financial assistance, and education programs 
        and activities receiving Federal financial assistance.
            (2) Prohibition of discrimination regarding participation, 
        benefits, and employment.--No individual shall be excluded from 
        participation in, denied the benefits of, subjected to 
        discrimination under, or denied employment in the 
        administration of or in connection with, any such program or 
        activity because of race, color, religion, sex, national 
        origin, age, disability, or political affiliation or belief.
            (3) Prohibition on assistance for facilities for sectarian 
        instruction or religious worship.--Participants shall not be 
        employed under this title to carry out the construction, 
        operation, or maintenance of any part of any facility that is 
        used or to be used for sectarian instruction or as a place for 
        religious worship.
            (4) Prohibition on discrimination on basis of participant 
        status.--No person may discriminate against an individual who 
        is a participant in a program or activity that receives funds 
        under this title, with respect to the terms and conditions 
        affecting, or rights provided to, the individual, solely 
        because of the status of the individual as a participant, in 
        carrying out any endeavor that involves--
                    (A) participants in programs and activities that 
                receive funding under this title; and
                    (B) persons who receive no assistance under this 
                title.
            (5) Prohibition on discrimination against certain 
        noncitizens.--Participation in programs and activities or 
        receiving funds under this title shall be available to citizens 
        and nationals of the United States, lawfully admitted permanent 
        resident aliens, refugees, asylees, and parolees, other aliens 
        lawfully present in the United States, and other individuals 
        authorized by the Attorney General to work in the United 
        States.
    (b) Action of Secretary.--Whenever the Secretary finds that a State 
or other recipient of funds under this title has failed to comply with 
a provision of law referred to in subsection (a)(1), or with paragraph 
(2), (3), (4), or (5) of subsection (a), including an applicable 
regulation prescribed to carry out such provision or paragraph, the 
Secretary shall notify such State or recipient and shall request that 
the State or recipient comply. If within a reasonable period of time, 
not to exceed 60 days, the State or recipient fails or refuses to 
comply, the Secretary may--
            (1) refer the matter to the Attorney General with a 
        recommendation that an appropriate civil action be instituted;
            (2) exercise the powers and functions provided to the head 
        of a Federal department or agency under the Age Discrimination 
        Act of 1975, title V of the Rehabilitation Act of 1973 (29 
        U.S.C. 791 et seq.), title IX of the Education Amendments of 
        1972, or title VI of the Civil Rights Act of 1964, as may be 
        applicable; or
            (3) take such other action as may be provided by law.
    (c) Action of Attorney General.--When a matter is referred to the 
Attorney General pursuant to subsection (b)(1), or whenever the 
Attorney General has reason to believe that a State or other recipient 
of funds under this title is engaged in a pattern or practice of 
discrimination in violation of a provision of law referred to in 
subsection (a)(1) or in violation of paragraph (2), (3), (4), or (5) of 
subsection (a), the Attorney General may bring a civil action in any 
appropriate district court of the United States for such relief as may 
be appropriate, including injunctive relief.
    (d) Job Corps Members.--For purposes of this section, Job Corps 
members shall be considered as the ultimate beneficiaries of an 
education program or activity receiving Federal financial assistance.

SEC. 379. ADMINISTRATIVE PROVISIONS.

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

SEC. 380. STATE LEGISLATIVE AUTHORITY.

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

             Subtitle E--Repeals and Conforming Amendments

SEC. 391. REPEALS.

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

SEC. 392. CONFORMING AMENDMENTS.

    (a) Preparation.--After consultation with the appropriate 
committees of Congress and the Director of the Office of Management and 
Budget, the Secretary shall prepare recommended legislation containing 
technical and conforming amendments to reflect the changes made by this 
subtitle.
    (b) Submission to Congress.--Not later than 6 months after the date 
of enactment of this Act, the Secretary shall submit to Congress the 
recommended legislation referred to under paragraph (1).

SEC. 393. EFFECTIVE DATES.

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

           TITLE IV--WORKFORCE INVESTMENT-RELATED ACTIVITIES

                     Subtitle A--Wagner-Peyser Act

SEC. 401. DEFINITIONS.

    Section 2 of the Wagner-Peyser Act (29 U.S.C. 49a) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``or officials''; and
                    (B) by striking ``Job Training Partnership Act'' 
                and inserting ``Workforce Investment Partnership Act of 
                1997'';
            (2) by striking paragraphs (2) and (4);
            (3) by redesignating paragraphs (3) and (5) as paragraphs 
        (5) and (6), respectively;
            (4) by inserting after paragraph (1) the following:
            ``(2) the term `local workforce investment area' means a 
        local workforce investment area designated under section 307 of 
        the Workforce Investment Partnership Act of 1997;
            ``(3) the term `local workforce investment partnership' 
        means a local workforce investment partnership established 
        under section 308 of the Workforce Investment Partnership Act 
        of 1997;
            ``(4) the term `one-stop customer service system' means a 
        one-stop customer service system established under section 
        315(b) of the Workforce Investment Partnership Act of 1997;''; 
        and
            (5) in paragraph (5) (as redesignated in paragraph (3)), by 
        striking the semicolon and inserting ``; and''.

SEC. 402. FUNCTIONS.

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

SEC. 403. DESIGNATION OF STATE AGENCIES.

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

SEC. 404. APPROPRIATIONS.

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

SEC. 405. DISPOSITION OF ALLOTTED FUNDS.

    Section 7 of the Wagner-Peyser Act (29 U.S.C. 49f) is amended--
            (1) in subsection (b)(2), by striking ``private industry 
        council'' and inserting ``local workforce investment 
        partnership'';
            (2) in subsection (c)(2), by striking ``any program under'' 
        and all that follows and inserting ``any workforce investment 
        activity carried out under the Workforce Investment Partnership 
        Act of 1997.'';
            (3) in subsection (d)--
                    (A) by striking ``United States Employment 
                Service'' and inserting ``Secretary''; and
                    (B) by striking ``Job Training Partnership Act'' 
                and inserting ``Workforce Investment Partnership Act of 
                1997''; and
            (4) by adding at the end the following:
    ``(e) All job search, placement, recruitment, labor market 
information, and other labor exchange services authorized under 
subsection (a) shall be provided as part of the one-stop customer 
service system established by the State.''.

SEC. 406. STATE PLANS.

    Section 8 of the Wagner-Peyser Act (29 U.S.C. 49g) is amended--
            (1) in subsection (a) to read as follows:
    ``(a) Any State desiring to receive assistance under this Act shall 
submit to the Secretary, as part of the State plan submitted under 
section 304 of the Workforce Investment Partnership Act of 1997, 
detailed plans for carrying out the provisions of this Act within such 
State.'';
            (2) by striking subsections (b), (c), and (e);
            (3) by redesignating subsection (d) as subsection (b); and
            (4) by adding at the end the following:
    ``(c) The part of the State plan described in subsection (a) shall 
include the information described in paragraphs (8) and (16) of section 
304(b) of the Workforce Investment Partnership Act of 1997.''.

SEC. 407. REPEAL OF FEDERAL ADVISORY COUNCIL.

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

SEC. 408. REGULATIONS.

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

SEC. 409. LABOR MARKET INFORMATION.

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

``SEC. 15. LABOR MARKET INFORMATION.

    ``(a) System Content.--
            ``(1) In general.--The Secretary, in accordance with the 
        provisions of this section, shall oversee the development, 
        maintenance, and continuous improvement of a system of labor 
        market information that includes--
                    ``(A) statistical data from cooperative statistical 
                survey and projection programs and data from 
administrative reporting systems that, taken together, enumerate, 
estimate, and project the employment opportunities at the national, 
State, and local levels in a timely manner, including data on--
                            ``(i) employment and unemployment status of 
                        the national, State, and local populations, as 
                        such data are developed by the Bureau of Labor 
                        Statistics and other sources;
                            ``(ii) industrial distribution of 
                        occupations, as well as current and projected 
                        employment opportunities and skill trends by 
                        occupation and industry, with particular 
                        attention paid to State and local employment 
                        opportunities;
                            ``(iii) data on the incidence of, 
                        industrial and geographical location of, and 
                        number of workers displaced by, permanent 
                        layoffs and plant closings; and
                            ``(iv) employee information maintained in a 
                        longitudinal manner and collected (as of the 
                        date of enactment of the Workforce Investment 
                        Partnership Act of 1997) by States;
                    ``(B) State and local employment information, and 
                other appropriate statistical data related to labor 
                market dynamics (compiled for States and localities 
                with technical assistance provided by the Secretary), 
                which shall--
                            ``(i) be current and comprehensive, as of 
                        the date used;
                            ``(ii) assist individuals to make informed 
                        choices relating to employment and training; 
                        and
                            ``(iii) assist employers to locate, 
                        identify skill traits of, and train individuals 
                        who are seeking employment and training;
                    ``(C) technical standards (which the Secretary 
                shall make publicly available) for data and information 
                described in subparagraphs (A) and (B) that, at a 
                minimum, meet the criteria of chapter 35 of title 44, 
                United States Code;
                    ``(D) procedures to ensure compatibility and 
                additivity of the data and information described in 
                subparagraphs (A) and (B) from national, State, and 
                local levels;
                    ``(E) procedures to support standardization and 
                aggregation of data from administrative reporting 
                systems described in subparagraph (A) of employment-
                related programs;
                    ``(F) analysis of data and information described in 
                subparagraphs (A) and (B) for uses such as State and 
                local policymaking;
                    ``(G) wide dissemination of such data, information, 
                and analysis, training for users of the data, 
                information, and analysis, and voluntary technical 
                standards for dissemination mechanisms; and
                    ``(H) programs of--
                            ``(i) research and demonstration; and
                            ``(ii) technical assistance for States and 
                        localities.
            ``(2) Information to be confidential.--
                    ``(A) In general.--No officer or employee of the 
                Federal Government or agent of the Federal Government 
                may--
                            ``(i) use any submission that is furnished 
                        for exclusively statistical purposes under the 
                        provisions of this section for any purpose 
                        other than the statistical purposes for which 
                        the submission is furnished;
                            ``(ii) make any publication or media 
                        transmittal of the data contained in the 
                        submission described in clause (i) that permits 
                        information concerning individual subjects to 
                        be reasonably inferred by either direct or 
                        indirect means; or
                            ``(iii) permit anyone other than a sworn 
                        officer, employee, or agent of any Federal 
                        department or agency, or a contractor 
                        (including an employee of a contractor) of such 
                        department or agency, to examine an individual 
                        submission described in clause (i);
                without the consent of the individual, agency, or other 
                person who is the subject of the submission or provides 
                that submission.
                    ``(B) Immunity from legal process.--Any submission 
                (including any data derived from the submission) that 
                is collected and retained by a Federal department or 
                agency, or an officer, employee, agent, or contractor 
                of such a department or agency, for exclusively 
                statistical purposes under this section shall be immune 
                from the legal process and shall not, without the 
                consent of the individual, agency, or other person who 
                is the subject of the submission or provides that 
                submission, be admitted as evidence or used for any 
purpose in any action, suit, or other judicial or administrative 
proceeding.
                    ``(C) Construction.--Nothing in this section shall 
                be construed to provide immunity from the legal process 
                for such submission (including any data derived from 
                the submission) if the submission is in the possession 
                of any person, agency, or entity other than the Federal 
                Government or an officer, employee, agent, or 
                contractor of the Federal Government, or if the 
                submission is independently collected, retained, or 
                produced for purposes other than the purposes of this 
                Act.
    ``(b) System Responsibilities.--
            ``(1) In general.--The labor market information system 
        shall be planned, administered, overseen, and evaluated through 
        a cooperative governance structure involving the Federal 
        Government and States.
            ``(2) Duties.--The Secretary, with respect to data 
        collection, analysis, and dissemination of labor market 
        information for the system, shall carry out the following 
        duties:
                    ``(A) Assign responsibilities within the Department 
                of Labor for elements of the system described in 
                subsection (a) to ensure that all statistical and 
                administrative data collected is consistent with 
                appropriate Bureau of Labor Statistics standards and 
                definitions.
                    ``(B) Actively seek the cooperation of other 
                Federal agencies to establish and maintain mechanisms 
                for ensuring complementarity and nonduplication in the 
                development and operation of statistical and 
                administrative data collection activities.
                    ``(C) Eliminate gaps and duplication in statistical 
                undertakings, with the systemization of wage surveys as 
                an early priority.
                    ``(D) In collaboration with the Bureau of Labor 
                Statistics and States, develop and maintain the 
                elements of the system described in subsection (a), 
                including the development of consistent definitions for 
                use by the States in collecting the data and 
                information described in subparagraphs (A) and (B), of 
                subsection (a)(1) and the development of the annual 
                plan under subsection (c).
                    ``(E) Establish procedures for the system to ensure 
                that--
                            ``(i) such data and information are timely;
                            ``(ii) administrative records for the 
                        system are consistent in order to facilitate 
                        aggregation of such data and information;
                            ``(iii) paperwork and reporting for the 
                        system are reduced to a minimum; and
                            ``(iv) States and localities are fully 
                        involved in the maintenance and continuous 
                        improvement of the system at the State and 
                        local levels.
    ``(c) Annual Plan.--The Secretary, with the assistance of the 
States and the Bureau of Labor Statistics, and with the assistance of 
other appropriate Federal agencies, shall prepare an annual plan which 
shall be the mechanism for achieving cooperative management of the 
nationwide labor market information system described in subsection (a) 
and the statewide labor market information systems that comprise the 
nationwide system. The plan shall--
            ``(1)(A) describe the elements of the system described in 
        subsection (a), including standards, definitions, formats, 
        collection methodologies, and other necessary system elements, 
        for use in collecting data and information described in 
        subparagraphs (A) and (B) of subsection (a)(1); and
            ``(B) include assurances that--
                    ``(i) the data will be timely and detailed;
                    ``(ii) administrative records will be standardized 
                to facilitate the aggregation of the data from local 
                areas to State and national levels and to support the 
                creation of new statistical series from program 
                records; and
                    ``(iii) paperwork and reporting requirements for 
                employers and individuals will be reduced;
            ``(2) include a report on the results of an annual consumer 
        satisfaction review concerning the performance of the system, 
        including the performance of the system in addressing the needs 
        of Congress, States, localities, employers, jobseekers, and 
        other consumers;
            ``(3) evaluate the performance of the system and recommend 
        needed improvements, taking into consideration the results of 
        the consumer satisfaction review, with particular attention 
        paid to the improvements needed at the State and local levels;
            ``(4) describe annual priorities, and priorities over 5 
        years, for the system;
            ``(5) describe current (as of the date of the submission of 
        the plan) spending and spending needs to carry out activities 
        under this section, including the costs to States and 
        localities of meeting the requirements of subsection (d)(2); 
        and
            ``(6) describe the involvement of States in the development 
        of the plan, through formal consultations conducted by the 
        Secretary in cooperation with representatives of the Governors 
        of every State, and with representatives of local partnerships, 
        pursuant to a process established by the Secretary in 
        cooperation with the States.
    ``(d) State Responsibilities.--
            ``(1) Designation of state agency.--In order to receive 
        Federal financial assistance under this section, the Governor 
        of a State--
                    ``(A) shall designate a single State agency to be 
                responsible for the management of the portions of the 
                system described in subsection (a) that comprise a 
                statewide labor market information system; and
                    ``(B) shall establish a process for the oversight 
                of such system.
            ``(2) Duties.--In order to receive Federal financial 
        assistance under this section, the State agency shall--
                    ``(A) consult with State and local employers, 
                participants, and local partnerships about the labor 
                market relevance of the data to be collected and 
                disseminated through the statewide labor market 
                information system;
                    ``(B) consult with State educational agencies and 
                local educational agencies concerning providing labor 
                market information in order to meet the needs of 
                secondary school and postsecondary school students who 
                seek such information;
                    ``(C) collect and disseminate for the system, on 
                behalf of the State and localities in the State, the 
                information and data described in subparagraphs (A) and 
                (B) of subsection (a)(1);
                    ``(D) maintain and continuously improve the 
                statewide labor market information system in accordance 
                with this section;
                    ``(E) perform contract and grant responsibilities 
                for data collection, analysis, and dissemination for 
                such system;
                    ``(F) conduct such other data collection, analysis, 
                and dissemination activities as will ensure an 
                effective statewide labor market information system;
                    ``(G) actively seek the participation of other 
                State and local agencies in data collection, analysis, 
                and dissemination activities in order to ensure 
                complementarity, compatibility, and usefulness of data;
                    ``(H) participate in the development of the annual 
                plan described in subsection (c); and
                    ``(I) utilize the quarterly records described in 
                section 321(e)(1) and section 312 to assist the State 
                and other States in measuring State progress on State 
                performance measures.
            ``(3) Rule of construction.--Nothing in this section shall 
        be construed as limiting the ability of a State agency to 
        conduct additional data collection, analysis, and dissemination 
        activities with State funds or with Federal funds from sources 
        other than this section.
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for each of fiscal years 1999 through 2003.
    ``(f) Definitions.--In this section, the terms `local area' and 
`local partnership' have the meanings given the terms in section 2 of 
the Workforce Investment Partnership Act of 1997.''.

SEC. 410. TECHNICAL AMENDMENTS.

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

                Subtitle B--Linkages With Other Programs

SEC. 421. TRADE ACT OF 1974.

    Section 241 of the Trade Act of 1974 (19 U.S.C. 2313) is amended by 
adding at the end the following:
    ``(d) To be eligible to receive funds under this section, a State 
shall submit to the Secretary an application that includes the 
description and information described in paragraphs (8) and (16) of 
section 304(b) of the Workforce Investment Partnership Act of 1997.''.

SEC. 422. NATIONAL APPRENTICESHIP ACT.

    The Act of August 16, 1937 (commonly known as the ``National 
Apprenticeship Act''; 50 Stat. 664, chapter 663; 29 U.S.C. 50 et seq.) 
is amended by inserting after section 3 the following:

``SEC. 3A. COORDINATION AND NONDUPLICATION.

    ``In carrying out this Act, the Secretary of Labor shall require 
that an appropriate administrative entity in each State enter into an 
agreement with the Secretary regarding the implementation of this Act 
that includes the description and information described in paragraphs 
(8) and (16) of section 304(b) of the Workforce Investment Partnership 
Act of 1997.''.

SEC. 423. VETERANS' EMPLOYMENT PROGRAMS.

    Chapter 41 of title 38, United States Code, is amended by adding at 
the end the following:
``Sec. 4110B. Coordination and nonduplication
    ``In carrying out this chapter, the Secretary shall require that an 
appropriate administrative entity in each State enter into an agreement 
with the Secretary regarding the implementation of this Act that 
includes the description and information described in paragraphs (8) 
and (16) of section 304(b) of the Workforce Investment Partnership Act 
of 1997.''.

SEC. 424. OLDER AMERICANS ACT OF 1965.

    Section 502(b)(1) of the Older Americans Act of 1965 (42 U.S.C. 
3056(b)(1)) is amended--
            (1) in subparagraph (O), by striking ``; and'' and 
        inserting a semicolon;
            (2) in subparagraph (P), by striking the period and 
        inserting ``; and''; and
            (3) by adding at the end the following subparagraph:
            ``(Q) will provide to the Secretary the description and 
        information described in paragraphs (8) and (16) of section 
        304(b) of the Workforce Investment Partnership Act of 1997.''.

                      TITLE V--GENERAL PROVISIONS

SEC. 501. STATE UNIFIED PLANS.

    (a) Purpose.--The purpose of this section is to permit and 
encourage the submission of State unified plans, to assure coordination 
of and to avoid duplication between the activities carried out through 
the one-stop customer service systems.
    (b) Definitions.--In this section:
            (1) Appropriate secretary.--The term ``appropriate 
        Secretary'' means the head of the Federal agency with authority 
        to carry out a system program.
            (2) Appropriate state agency.--The term ``appropriate State 
        agency''--
                    (A) used with respect to a system program 
                authorized under title I or II, means an eligible 
                agency; and
                    (B) used with respect to another system program, 
                means a State agency with authority to carry out the 
                system program, as specified by the Governor of the 
                State.
            (3) System program.--The term ``system program'' means a 
        program of activities, carried out through the one-stop 
        customer service system, that are--
                    (A) activities authorized under title I or II;
                    (B) workforce investment activities authorized 
                under subtitle A of title III;
                    (C) other activities authorized under title III;
                    (D) programs authorized under section 6(d) of the 
                Food Stamp Act of 1977 (7 U.S.C. 2015(d));
                    (E) work programs authorized under section 6(o) of 
                the Food Stamp Act of 1977 (7 U.S.C. 2015(o));
                    (F) activities authorized under chapter 2 of title 
                II of the Trade Act of 1974 (19 U.S.C. 2271 et seq.);
                    (G) programs authorized under the Wagner-Peyser Act 
                (29 U.S.C. 49 et seq.);
                    (H) activities carried out by the Bureau of 
                Apprenticeship and Training;
                    (I) programs authorized under title I of the 
                Rehabilitation Act of 1973 (29 U.S.C. 720 et seq.);
                    (J) activities authorized under chapter 41 of title 
                38, United States Code;
                    (K) programs authorized under State unemployment 
                compensation laws and the Federal unemployment 
                insurance program under titles III, IX, and XII of the 
                Social Security Act (42 U.S.C. 501 et seq., 1101 et 
                seq., and 1321 et seq.).
                    (L) programs authorized under part A of title IV of 
                the Social Security Act (42 U.S.C. 601 et seq.);
                    (M) programs authorized under title V of the Older 
                Americans Act of 1965 (42 U.S.C. 3056 et seq.); or
                    (N) training activities carried out by the 
                Department of Housing and Urban Development.
    (c) State Unified Plan.--A State may develop and submit to the 
appropriate Secretaries a State unified plan for 2 or more of the 
system programs.
    (d) Contents.--
            (1) Planning provisions.--
                    (A) In general.--In a State that elects to develop 
                a State unified plan, the plan shall contain planning 
                provisions, which shall be developed in a manner that 
                substantially reflects the planning requirements of the 
                provisions of the Federal statutes authorizing the 
                system programs.
                    (B) Planning requirements.--In subparagraph (A), 
                the term ``planning requirements'', used with respect 
                to a system program, means such requirements as the 
                appropriate Secretary shall by regulation specify for 
                the system program.
            (2) Information provisions.--In addition to the planning 
        provisions required to be included pursuant to paragraph (1), 
        the plan shall include the following:
                    (A) A description of the process used for 
                developing the State unified plan.
                    (B) A description of the process used to consult 
                the chief elected officials in the State about the 
                State unified plan.
                    (C) A description of the accountability system of 
                the State for activities carried out through the one-
                stop customer service system.
                    (D) A description of how the one-stop customer 
                service system will provide the services identified in 
                the State unified plan through such system.
                    (E) An assurance that the funds appropriated under 
                Federal law to carry out the activities identified in 
                the State unified plan will be used to supplement and 
                not supplant other Federal, State, and local public 
                funds expended to carry out the activities for eligible 
                individuals.
    (e) Development.--
            (1) Planning provisions.--The provisions of the plan 
        described in subsection (d)(1) shall be developed by the 
        statewide partnership. The portion of the State unified plan 
        relating to a system program may be modified, as appropriate, 
        with the agreement of the Governor and the head of the 
        appropriate State agency with authority to carry out the system 
        program. The Governor and the head of the appropriate State 
        agency shall have the final authority to determine the content 
        of the portion of the State unified plan that relates to the 
        system program.
            (2) Information provisions.--The provisions of the plan 
        described in subsection (d)(2) shall be developed by the 
        statewide partnership, which shall have the final authority to 
        determine the content of the provisions.
    (f) Submission.--After the heads of the appropriate State agencies 
approve the portions of the State unified plan that relate to their 
system programs, the State unified plan shall be submitted to the 
appropriate Secretaries by--
            (1) the Governor; and
            (2) an eligible agency, in the case of a plan containing a 
        portion relating to the system program of the eligible agency.
    (g) Approval by the Appropriate Secretaries.--
            (1) Jurisdiction.--Each of the appropriate Secretaries 
        shall have the authority to approve the portion of the State 
        unified plan relating to the system program for which the 
        Secretary has authority. On the approval of the Secretary, the 
        portion of the plan relating to the system program shall be 
        implemented by the State pursuant to the State unified plan.
            (2) Approval.--A portion of a State unified plan submitted 
        to an appropriate Secretary under this section shall be 
        considered to be approved by the appropriate Secretary at the 
        end of the 60-day period beginning on the day the appropriate 
        Secretary receives the portion, unless the Secretary makes a 
        written determination, during the 60-day period, that the 
        portion does not substantially reflect the planning 
        requirements of the appropriate Federal statutes authorizing 
        the system programs.

SEC. 502. TRANSITION PROVISIONS.

    (a) In General.--The Secretary of Education or the Secretary of 
Labor, as appropriate, shall take such steps as such Secretary 
determines to be appropriate to provide for the orderly transition to 
the authority of this Act from any authority under provisions of law to 
be repealed under subtitle E of title I, subtitle B of title II, or 
subtitle E of title III, or any related authority.
    (b) Extended Transition Period.--
            (1) In general.--If, on or before July 1, 1999, a State has 
        enacted a State statute that provides for the establishment or 
        conduct of 3 or more of the programs, projects, or activities 
        described in subparagraphs (A) through (E) of paragraph (2), 
        the State shall not be required to comply with provisions of 
        this Act that conflict the provisions of with such State 
        statute relating to such programs, projects, or activities for 
        the period ending 3 years after the effective date specified in 
        section 503(a). After such 3-year period, the Secretary of 
        Education or the Secretary of Labor, as appropriate, shall 
        allow a State to continue operating under such State statute if 
        the State is meeting the State performance measures of the 
        State.
            (2) Programs, projects, and activities described.--The 
        programs, projects, and activities described in this paragraph 
        are the following:
                    (A) Establishment of statewide partnerships or 
                substate partnerships, including local and regional 
                partnerships.
                    (B) Reorganization or consolidation of State 
                agencies with responsibility for workforce investment 
                activities.
                    (C) Reorganization or consolidation of workforce 
                investment activities.
                    (D) Restructuring of local delivery systems for 
                workforce investment activities.
                    (E) Development or restructuring of State 
                accountability or oversight systems for workforce 
                investment systems to focus on performance.

SEC. 503. EFFECTIVE DATE.

    (a) In General.--Except as otherwise provided in this Act, this Act 
takes effect on July 1, 1999.
    (b) Early Implementation.--At the option of a State, the Governor 
of the State and the chief official of the eligible agencies in the 
State may use funds made available under a provision of law described 
in section 502(a), or any related authority to implement this Act at 
any time prior to July 1, 1999.
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