[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 4501 Introduced in Senate (IS)]

<DOC>






118th CONGRESS
  2d Session
                                S. 4501

 To amend the Workforce Innovation and Opportunity Act to improve the 
                   performance accountability system.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 11, 2024

  Mr. Mullin introduced the following bill; which was read twice and 
  referred to the Committee on Health, Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL


 
 To amend the Workforce Innovation and Opportunity Act to improve the 
                   performance accountability system.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``WIOA Performance Accountability 
Improvement Act''.

SEC. 2. PERFORMANCE ACCOUNTABILITY SYSTEM.

    (a) State Performance Accountability Measures.--
            (1) Primary indicators of performance.--Section 
        116(b)(2)(A) of the Workforce Innovation and Opportunity Act 
        (29 U.S.C. 3141(b)(2)(A)) is amended--
                    (A) in clause (i)--
                            (i) in subclause (II)--
                                    (I) by striking ``fourth'' and 
                                inserting ``second''; and
                                    (II) by inserting ``and remain in 
                                unsubsidized employment during the 
                                fourth quarter after exit from the 
                                program'' after ``the program'';
                            (ii) in subclause (V)--
                                    (I) by striking ``, during a 
                                program year,'';
                                    (II) by striking ``are in'' and 
                                inserting ``enter into''; and
                                    (III) by inserting before the 
                                semicolon at the end the following: 
                                ``within 6 months after the quarter in 
                                which the participant enters into the 
                                education or training program''; and
                            (iii) by amending subclause (VI) to read as 
                        follows:
                                    ``(VI) of the program participants 
                                who received training services and who 
                                exited the program during a program 
                                year, the percentage of such program 
                                participants who completed, prior to 
                                such exit, on-the-job training, 
                                employer-directed skills development, 
                                incumbent worker training, or an 
                                apprenticeship.'';
                    (B) in clause (ii)--
                            (i) in subclause (II), by striking ``and'' 
                        at the end;
                            (ii) in subclause (III), by striking the 
                        period at the end and inserting ``; and''; and
                            (iii) by adding at the end the following:
                                    ``(IV) the percentage of program 
                                participants who, during a program 
                                year, participate in paid or unpaid 
                                work experiences as described in 
                                section 129(c)(2)(C).''; and
                    (C) by striking clause (iv).
            (2) Levels of performance.--Section 116(b)(3)(A) of the 
        Workforce Innovation and Opportunity Act (29 U.S.C. 
        3141(b)(3)(A)) is amended--
                    (A) by amending clause (iii) to read as follows:
                            ``(iii) Identification in state plan.--
                                    ``(I) Secretaries.--For each State 
                                submitting a State plan, the 
                                Secretaries of Labor and Education 
                                shall--
                                            ``(aa) not later than 
                                        December 1 of the calendar year 
                                        prior to the calendar year in 
                                        which such State plan is 
                                        submitted, for the first 2 
                                        program years covered by the 
                                        State plan, and not later than 
                                        December 1 of the year prior to 
                                        the third program year covered 
                                        by the State plan, for the 
                                        third and fourth program years 
                                        covered by the State plan, 
                                        propose expected levels of 
                                        performance for each of the 
                                        corresponding primary 
                                        indicators of performance for 
                                        each of the programs described 
                                        in clause (ii) for such State, 
                                        which levels shall--

                                                    ``(AA) be 
                                                consistent with the 
                                                factors listed in 
                                                clause (v); and

                                                    ``(BB) be proposed 
                                                in a manner that 
                                                ensures sufficient time 
                                                is provided for the 
                                                State to evaluate and 
                                                respond to such 
                                                proposals; and

                                            ``(bb) publish, on a public 
                                        website of the Department of 
                                        Labor, the statistical model 
                                        developed under clause (viii) 
                                        and the methodology used to 
                                        develop each such proposed 
                                        level of performance.
                                    ``(II) States.--Each State shall--
                                            ``(aa) evaluate each of the 
                                        expected levels of performance 
                                        proposed under subclause (I) 
                                        with respect to such State;
                                            ``(bb) based on such 
                                        evaluation of each such 
                                        proposed level of performance--

                                                    ``(AA) accept the 
                                                expected level of 
                                                performance as so 
                                                proposed; or

                                                    ``(BB) provide a 
                                                counterproposal for 
                                                such proposed expected 
                                                level of performance, 
                                                including an analysis 
                                                of how the 
                                                counterproposal 
                                                addresses factors or 
                                                circumstances unique to 
                                                the State that may not 
                                                have been accounted for 
                                                in the proposed 
                                                expected level of 
                                                performance; and

                                            ``(cc) include in the State 
                                        plan, with respect to each of 
                                        the corresponding primary 
                                        indicators of performance for 
                                        each of the programs described 
                                        in clause (ii) for such State--

                                                    ``(AA) the expected 
                                                level of performance 
                                                proposed under 
                                                subclause (I);

                                                    ``(BB) the 
                                                counterproposal for 
                                                such proposed level, if 
                                                any; and

                                                    ``(CC) the expected 
                                                level of performance 
                                                that is agreed to under 
                                                clause (iv).''; and

                    (B) in clause (v)(II)--
                            (i) in the matter preceding item (aa), by 
                        striking ``based on'' and inserting ``based on 
                        (for each of the following factors that is 
                        found to be predictive of performance on an 
                        indicator for a program)''; and
                            (ii) in item (bb), by inserting ``, foster 
                        care status, school status, education level, 
                        highest grade level completed, low-income 
                        status'' after ``ex-offender status''.
    (b) Performance Reports.--Section 116(d) of the Workforce 
Innovation and Opportunity Act (29 U.S.C. 3141(d)) is amended--
            (1) by amending paragraph (1) to read as follows:
            ``(1) In general.--
                    ``(A) Template for performance reports.--Not later 
                than 12 months after the date of enactment of the WIOA 
                Performance Accountability Improvement Act, the 
                Secretary of Labor, in conjunction with the Secretary 
                of Education, shall develop, or review and modify, as 
                appropriate, to comply with the requirements of this 
                subsection, the template for performance reports that 
                shall be used by States (including by States on behalf 
                of eligible providers of training services under 
                section 122) and local boards to produce a report on 
                outcomes achieved by the core programs. In developing, 
                or reviewing and modifying, such templates, the 
                Secretary of Labor, in conjunction with the Secretary 
                of Education, shall take into account the need to 
                maximize the value of the templates for workers, 
                jobseekers, employers, local elected officials, State 
                officials, Federal policymakers, and other key 
                stakeholders.
                    ``(B) Standardized reporting.--In developing, or 
                reviewing and modifying, the template under 
                subparagraph (A), the Secretary of Labor, in 
                conjunction with the Secretary of Education, shall 
                ensure that States and local areas, in producing 
                performance reports for core programs and eligible 
                training providers, collect and report, in a comparable 
                and uniform format, information on common data 
                elements, which use terms that are assigned identical 
                meanings across all such reports.
                    ``(C) Additional reporting.--The Secretary of 
                Labor, in conjunction with the Secretary of Education--
                            ``(i) in addition to information on the 
                        common data elements described in subparagraph 
                        (B), may require a core program to provide 
                        additional information as necessary for 
                        effective reporting; and
                            ``(ii) shall periodically review any 
                        requirement for additional information to 
                        ensure the requirement is necessary and does 
                        not impose an undue reporting burden.'';
            (2) in paragraph (2)--
                    (A) by redesignating subparagraphs (J) through (L) 
                as subparagraphs (K) through (M), respectively and 
                inserting after subparagraph (I) the following:
                    ``(J) the median earnings gain of participants who 
                received training services, calculated as the 
                difference between--
                            ``(i) median participant earnings in 
                        unsubsidized employment during the second 
                        quarter after program exit; and
                            ``(ii) median participant earnings in 
                        unsubsidized employment in the second quarter 
                        prior to entering the program;''; and
                    (B) in subparagraph (L), as so redesignated, by 
                striking clause (ii); and
                    (C) by striking ``strategies for programs'' and all 
                that follows through ``the performance'', and inserting 
                ``strategies for programs, the performance'';
            (3) in paragraph (3)--
                    (A) in subparagraph (B), by striking ``and'' at the 
                end;
                    (B) by redesignating subparagraph (C) as 
                subparagraph (E); and
                    (C) by inserting after subparagraph (B) the 
                following:
                    ``(C) the percentage of the local area's allocation 
                under section 133(b) that the local area spent on 
                services paid for through an individual training 
                account described in section 134(c)(3)(F)(iii) or a 
                training contract described in section 
                134(c)(3)(G)(ii);
                    ``(D) the percentage of the local area's allocation 
                under section 133(b) that the local area spent on 
                supportive services; and'';
            (4) by amending paragraph (4) to read as follows:
            ``(4) Contents of eligible training providers performance 
        report.--
                    ``(A) In general.--The State shall use the 
                information submitted by the eligible providers of 
                training services under section 122 and administrative 
                records, including quarterly wage records, of the 
                participants of the programs offered by the providers 
                to produce a performance report on the eligible 
                providers of training services in the State, which 
                shall include, subject to paragraph (6)(C)--
                            ``(i) with respect to each program of study 
                        (or the equivalent) of such a provider--
                                    ``(I) information specifying the 
                                levels of performance achieved with 
                                respect to the primary indicators of 
                                performance described in subclauses (I) 
                                through (IV) of subsection (b)(2)(A)(i) 
                                with respect to all individuals 
                                engaging in the program of study (or 
                                the equivalent); and
                                    ``(II) the total number of 
                                individuals exiting from the program of 
                                study (or the equivalent);
                            ``(ii) with respect to all such providers--
                                    ``(I) the total number of 
                                participants who received training 
                                services through each of the adult 
                                program, and the dislocated worker 
                                program, authorized under chapter 3 of 
                                subtitle B, disaggregated by the type 
                                of entity that provided the training, 
                                during the most recent program year and 
                                the 3 preceding program years;
                                    ``(II) the total number of 
                                participants who exited from training 
                                services, disaggregated by the type of 
                                entity that provided the training, 
                                during the most recent program year and 
                                the 3 preceding program years;
                                    ``(III) the average cost for the 
                                participants who received training 
                                services, divided by the average 
                                earnings received by such participants 
                                during the second quarter after exit 
                                from the program, disaggregated by the 
                                type of entity that provided the 
                                training, during the most recent 
                                program year and the 3 preceding 
                                program years; and
                                    ``(IV) the number of individuals 
                                with barriers to employment served by 
                                each of the adult program, and the 
                                dislocated worker program, authorized 
                                under chapter 3 of subtitle B, 
                                disaggregated by each subpopulation of 
                                such individuals, and by race, 
                                ethnicity, sex, and age; and
                            ``(iii) with respect to each recognized 
                        postsecondary credential on the list of 
                        credentials awarded by eligible providers in 
                        the State described in section 122(d)--
                                    ``(I) information specifying the 
                                levels of performance achieved with 
                                respect to the primary indicators of 
                                performance described in subclauses (I) 
                                through (IV) of subsection (b)(2)(A)(i) 
                                for all participants in the State 
                                receiving such credential; and
                                    ``(II) information specifying the 
                                levels of performance achieved with 
                                respect to the primary indicators of 
                                performance described in subclauses (I) 
                                through (IV) of subsection (b)(2)(A)(i) 
                                for participants in the State receiving 
                                such credential with respect to 
                                individuals with barriers to 
                                employment, disaggregated by each 
                                subpopulation of such individuals, and 
                                by race, ethnicity, sex, and age.''; 
                                and
            (5) in paragraph (6)--
                    (A) by amending subparagraph (A) to read as 
                follows:
                    ``(A) State performance reports.--The Secretary of 
                Labor and the Secretary of Education shall annually 
                make available the performance reports for States 
                containing the information described in paragraph (2), 
                which shall include making such reports available--
                            ``(i) digitally using transparent, linked, 
                        open, and interoperable data formats that are 
                        human readable and machine actionable such that 
                        the data from these reports--
                                    ``(I) is easily understandable; and
                                    ``(II) can be easily included in 
                                web-based tools and services supporting 
                                search, discovery, comparison, 
                                analysis, navigation, and guidance; and
                            ``(ii) in a printable format.''; and
                    (B) in subparagraph (B)--
                            (i) by striking ``(including by electronic 
                        means), in an easily understandable format,''; 
                        and
                            (ii) by adding at the end the following: 
                        ``The Secretary of Labor and the Secretary of 
                        Education shall include, on the website where 
                        the State performance reports required under 
                        subparagraph (A) are made available, a link to 
                        local area performance reports and the eligible 
                        training provider report for each State. Such 
                        reports shall be made available in each of the 
                        formats described in subparagraph (A).''.
    (c) Evaluation of State Programs.--Section 116(e) of the Workforce 
Innovation and Opportunity Act (29 U.S.C. 3141(e)) is amended--
            (1) in paragraph (1)--
                    (A) in the first sentence, by striking ``shall 
                conduct ongoing'' and inserting ``shall use data to 
                conduct analyses and ongoing''; and
                    (B) in the second sentence, by striking ``conduct 
                the'' and inserting ``conduct such analyses and''; and
            (2) in paragraph (2), by adding ``A State may use other 
        forms of analysis, such as machine learning or other advanced 
        analytics, to improve program operations and outcomes and to 
        identify areas for further evaluation.'' at the end.
    (d) Sanctions for State Failure To Meet State Performance 
Accountability Measures.--Section 116(f) of the Workforce Innovation 
and Opportunity Act (29 U.S.C. 3141(f)) is amended to read as follows:
    ``(f) Sanctions for State Failure To Meet State Performance 
Accountability Measures.--
            ``(1) Targeted support and assistance.--
                    ``(A) In general.--If a State fails to meet 80 
                percent of the State adjusted level of performance for 
                an indicator described in subsection (b)(2)(A) for a 
                program for any program year, the Secretary of Labor 
                and the Secretary of Education shall provide technical 
                assistance.
                    ``(B) Sanctions.--
                            ``(i) In general.--If the State fails in 
                        the manner described in subclause (I) or (II) 
                        of clause (ii) with respect to a program year, 
                        the percentage of each amount that would (in 
                        the absence of this paragraph) be reserved by 
                        the Governor under section 128(a)(1) for the 
                        immediately succeeding program year shall be 
                        reduced by 5 percentage points.
                            ``(ii) Failures.--A State shall be subject 
                        to clause (i)--
                                    ``(I) if (except in the case of 
                                exceptional circumstances as determined 
                                by the Secretary of Labor or the 
                                Secretary of Education, as 
                                appropriate), such State fails to 
                                submit a report under subsection (d) 
                                for the appropriate program year; or
                                    ``(II) for a failure under 
                                subparagraph (A) that continues for a 
                                second consecutive year.
            ``(2) Comprehensive support and assistance.--
                    ``(A) In general.--If a State fails to meet an 
                average of 90 percent of the State adjusted levels of 
                performance for a single program across all 
                corresponding performance indicators for any program 
                year, or if a State fails to meet an average of 90 
                percent of the State adjusted levels of performance for 
                a single corresponding performance indicator across all 
                programs for any program year, the Secretary of Labor 
                and the Secretary of Education shall provide technical 
                assistance, as described and authorized under section 
                168(b), including assistance in the development of a 
                comprehensive performance improvement plan.
                    ``(B) Second consecutive year failure.--If such 
                failure under subparagraph (A) continues for a second 
                consecutive year, the percentage of each amount that 
                would (in the absence of this subsection) be reserved 
                by the Governor under section 128(a)(1) for the 
                immediately succeeding program year shall be reduced by 
                10 percentage points.
            ``(3) Reallotment of reductions.--Any amounts not reserved 
        under section 128(a)(1) for a State for a program year pursuant 
        to paragraph (1)(B) or (2)(B) of this subsection shall be 
        realloted to other States in a manner consistent with paragraph 
        (1)(B) or (2)(B) of section 132(b).''.
    (e) Sanctions for Local Area Failure To Meet Local Performance 
Accountability Measures.--Section 116(g) of the Workforce Innovation 
and Opportunity Act (29 U.S.C. 3141(g)) is amended--
            (1) in paragraph (1)--
                    (A) by inserting ``80 percent of the'' before 
                ``local performance''; and
                    (B) by striking ``local performance accountability 
                measures'' and inserting ``local level of performance 
                for a single corresponding performance indicator for a 
                single program, an average of 90 percent of the local 
                levels of performance across all corresponding 
                performance indicators for a single program, or an 
                average of 90 percent of the local levels of 
                performance for a single corresponding performance 
                indicator across all programs,''; and
            (2) in paragraph (2)--
                    (A) by amending subparagraph (A) to read as 
                follows:
                    ``(A) In general.--If such failure continues, the 
                Governor shall take corrective actions, which shall 
                include--
                            ``(i) in the case of a failure, as 
                        described in paragraph (1), for a second 
                        consecutive year, on any individual indicator, 
                        across indicators for a single program, or on a 
                        single indicator across programs, a 5-percent 
                        reduction in the amount that would have 
                        otherwise been provided (in the absence of this 
                        clause) to the local area for the immediately 
                        succeeding program year under chapter 2 or 3 of 
                        subtitle B for the program subject to the 
                        performance failure;
                            ``(ii) in the case of a failure, as 
                        described in paragraph (1), for a third 
                        consecutive year, the development of a 
                        reorganization plan through which the Governor 
                        shall--
                                    ``(I) require the appointment and 
                                certification of a new local board, 
                                consistent with the criteria 
                                established under section 107(b);
                                    ``(II) prohibit the use of one-stop 
                                partners identified as achieving a poor 
                                level of performance; and
                                    ``(III) revise or redesignate a 
                                local area, which may include merging a 
                                local area with another local area if 
                                the Governor determines that the likely 
                                cause of such continued performance 
                                failure of a local area is due to such 
                                local area's designation being granted 
                                without the appropriate consideration 
                                of parameters described under section 
                                106(b)(1)(B); or
                            ``(iii) other significant actions 
                        determined appropriate by the Governor.'';
                    (B) in subparagraph (B)(i), by inserting ``(ii)'' 
                after ``subparagraph (A)''; and
                    (C) by adding at the end the following:
                    ``(D) Reallocation of reductions.--Any amounts not 
                allocated under chapter 2 or 3 of subtitle B to a local 
                area for a program year pursuant to subparagraph (A)(i) 
                retained by the Governor and added to the funds 
                reserved under section 128(a)(1) or 133(a)(1), as 
                applicable.''.
    (f) Establishing Pay-for-Performance Contract Strategy 
Incentives.--Section 116(h) of the Workforce Innovation and Opportunity 
Act (29 U.S.C. 3141(h)) is amended by striking ``non-Federal funds'' 
and inserting ``the funds reserved under section 128(a)(1)''.
    (g) Fiscal and Management Accountability Information Systems.--
Section 116(i) of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3141(i)) is amended--
            (1) in paragraph (2), by inserting ``, and may use 
        information provided from the National Directory of New Hires 
        in accordance with section 453(j)(8) of the Social Security Act 
        (42 U.S.C. 653(j)(8))'' after ``State law'';
            (2) by redesignating paragraph (3) as paragraph (4); and
            (3) by inserting after paragraph (2) the following:
            ``(3) Designated entity.--The Governor shall designate a 
        State agency (or appropriate State entity) to assist in 
        carrying out the performance reporting requirements for core 
        programs and eligible providers of training services. The 
        designated State agency (or appropriate State entity) shall be 
        responsible for--
                    ``(A) facilitating data matches using quarterly 
                wage record information, including wage record 
                information made available by other States, to measure 
                employment and earnings outcomes;
                    ``(B) data validation and reliability, as described 
                in subsection (d)(5); and
                    ``(C) protection against disaggregation that would 
                violate applicable privacy standards, as described in 
                subsection (d)(6)(C).''.
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