[Congressional Record Volume 141, Number 4 (Monday, January 9, 1995)]
[Senate]
[Pages S658-S671]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. KENNEDY (for himself, Mr. Simon, and Mr. Dodd):
  S. 180. A bill to streamline and reform Federal job training programs 
to create a world-class work force development system for the 21st 
century, and for other purposes; to the Committee on Labor and Human 
Resources.


                     the workforce development act

  Mr. KENNEDY. Mr. President, today I am introducing the Workforce 
Development Act. This bill is a complement to S. 6, the Working 
Americans Opportunity Act, which was introduced on the first day of 
this Congress by Senator Daschle, Senator Breaux, other Senators, and 
myself.
  One of our top priorities for this session is to modernize the 
current confusing and overlapping array of job training programs. In 
today's rapidly changing economy, we must provide more effective 
opportunities for workers to upgrade their skills and improve their 
earning power over the course of their careers.
  Compared to other major industrial nations, the United States is 
still in the Dark Ages of enabling workers and firms to adjust to 
changes taking place in the economy. The policy foundations for our 
current job training system was established during the years of the New 
Deal, the New Frontier, and the Great Society.
  The primary challenge that most of our current programs were designed 
to address was to help various hard-to-serve groups to enter the labor 
force. Many of these programs--such as the Job Corps--have been very 
successful. Over the years millions of economically disadvantaged 
individuals have benefitted.
  As we move forward with new ideas to modernize our job training 
system we must not retreat from the commitment to provide the basic 
skills and support services which make it possible for large numbers of 
disadvantaged Americans to achieve self-sufficiency in the labor 
market.
  At the same time, we also need to respond to the new and powerful 
economic forces which are disrupting the existing labor markets for 
millions of working Americans and their families. As a result of 
increased international competition, rapid technological change, 
reductions in defense spending, and the re-engineering and down-sizing 
of corporations, many men and women already in the labor force must be 
retrained to improve their skills and enable them to continue to 
productive careers. In the evolving modern economy, this kind of 
retraining may be needed more than once, and often several times, over 
the course of people's careers.
  We also must respond to the concerns of the large numbers of two-
income families, and families with single heads [[Page S659]] of 
household who face the difficult challenge of balancing work and family 
responsibilities. We need a more flexible job training and employment 
system that can help the breadwinners in working families to move in 
and out of the labor force without losing their earning power.
  Over the past decade, many private businesses have taken steps to 
streamline their operations to deal with the profound changes taking 
place in our economy. It is clearly time for the Federal Government to 
act as well to consolidate and coordinate current job training programs 
in order to give workers a greater opportunity to succeed. It is time 
for a comprehensive overhaul of Federal job training policy. The 
Workforce Development Act I am introducing provides action to 
streamline and reform current policy. It encourages the States to 
experiment with new approaches to make their own job training programs 
more responsive to the real needs of working families.
  A key element of both the Workforce Development Act and S. 6, the 
Working Americans Opportunity Act introduced earlier this week, is the 
idea of making vouchers available to workers, so that they can purchase 
the training programs of their choice. President Clinton is right in 
proposing vouchers as a means to enable market forces to help transform 
the current excessively bureaucratic programs into a more effective 
system driven by the real needs of workers, job seekers, and firms in 
communities across the country.
  Last year Senator Kassebaum and I began to work together to devise a 
new strategy to create the type of work force development system the 
Nation needs. In June we issued a joint statement on the Senate floor 
which laid out a series of principles to guide this reform. Several 
other Senators joined us at that time, and we subsequently received 
support from many other Senators on both sides of the aisle. Over the 
course of the summer and into last fall we worked together to lay the 
groundwork for a bipartisan reform effort in the 104th Congress.
  The Senate has a good record of bipartisan accomplishment in the area 
of work force development policy. When the Republicans controlled this 
body in the 1980's, many of us worked closely with Senator Dan Quayle 
to pass the Job Training Partnership Act, which established the 
principle of a strong private sector role at the local level in 
designing training programs for disadvantaged and dislocated workers.
  Similarly, in the last session of Congress, a bipartisan coalition of 
Senators joined in passing the School-To-Work Act. Much of the 
foundation for this bill was laid by the landmark ``American choice'' 
report issued in 1990 by a distinguished bipartisan commission led by 
former Labor Secretaries Bill Brock and Ray Marshall. As a result of 
this groundwork, the School-To-Work Act earned broad support from 
business, labor, governors, mayors, and leaders in education. It is 
time to apply that same sense of shared purpose to making all our job 
training programs more responsive to the needs of job seekers and 
workers struggling to be competitive in our modern economy.
  The legislation I am introducing today grew out of discussions with 
Members of Congress on both sides of the aisle in the 103d Congress and 
with the Clinton administration. It also draws on the innovative steps 
being taken in Massachusetts to meet this challenge and to define the 
proper role of the private and public sectors and Federal, State, and 
local governments in work force policy.
  In addition to streamlining and reforming Federal job training 
programs, this legislation will repeal duplicative or outmoded 
programs, and encourage States and communities to rationalize many 
others.
  These efforts will give flexibility to the States to test ways that 
vouchers can best be implemented to help workers navigate or circumvent 
the excessive bureaucracy that now exists. One-stop career centers will 
be established to ensure that workers have an opportunity to make 
effective use of these vouchers. A new information system will produce 
reports on the effectiveness of training programs. All of the 
activities authorized by this act will be paid for by cost savings 
achieved in existing programs.
  The existing bureaucracy is unlikely to reform itself. The private 
sector, especially business, labor, and community leaders, will have a 
key role in advising the public sector on all aspects of these reforms.
  The Work Force Development Act also takes direct steps to assist 
current workers. Assistance will be available to business and labor to 
upgrade the skills of adult workers and establish portable industry-
based skill credentials to serve as a passport to succeed in the labor 
market.
  Finally, the bill establishes a timetable for further reform. By June 
1, 1999 a national board must submit recommendations to the President 
and Congress. To ensure that Congress acts on these recommendations, 20 
separate programs with more than $4 billion in funding will sunset 
September 30, 1999.
  I look forward to working closely with Senators on all aspects of 
these fundamental issues. We need practical, not partisan or 
ideological answers. Most of all, we need a job training policy that 
can be for workers. I am hopeful that we can make landmark progress 
toward that goal in this session of Congress.
  I ask unanimous consent that a summary of the bill and a copy of the 
bill be entered into the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                 S. 180

       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 
     Development Act''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purpose.
Sec. 3. Authorization of appropriations.
Sec. 4. Definitions.

                TITLE I--STREAMLINING AND CONSOLIDATION

Sec. 101. Purpose; findings; sense of the Congress.
Sec. 102. Elimination of certain programs.
Sec. 103. Streamlining and integration of adult training programs.
Sec. 104. Process for establishing 21st century workforce development 
              system.
Sec. 105. Centralized waivers.

                  TITLE II--MARKET BUILDING ACTIVITIES

                  Subtitle A--Federal Level Activities

Sec. 201. Purpose.
Sec. 202. National Workforce Development Board.
Sec. 203. Mechanisms for building high quality integrated workforce 
              development systems.
Sec. 204. Quality assurance system.

                   Subtitle B--State Level Activities

Sec. 211. State Workforce Development Councils.
Sec. 212. Membership.
Sec. 213. Chairperson.
Sec. 214. Duties and responsibilities.
Sec. 215. Development of quality assurance systems and consumer 
              reports.
Sec. 216. Administration.
Sec. 217. Establishment of unified service delivery areas.
Sec. 218. Financial and management information systems.
Sec. 219. Capacity building grants.
Sec. 220. Performance standards for unified service delivery areas.

                   Subtitle C--Local Level Activities

Sec. 231. Workforce development boards.
Sec. 232. Workforce development board policy blueprint.
Sec. 233. Report card.
Sec. 234. One-stop career centers.
Sec. 235. Capacity building.

    TITLE III--ENHANCING INDIVIDUAL CHOICE THROUGH TRAINING ACCOUNTS

Sec. 301. Purpose.
Sec. 302. Establishment.
Sec. 303. Participation of workforce development programs.
Sec. 304. Administration.
Sec. 305. Eligibility requirements for providers of education and 
              training services.
Sec. 306. Evaluation and recommendations.
Sec. 307. Report relating to income support.

                   TITLE IV--PRIVATE-PUBLIC LINKAGES

Sec. 401. Purpose.
Sec. 402. Incentives to encourage worker training.
Sec. 403. Labor Day report on private-public training practices.
Sec. 404. Matching grants to encourage incumbent worker training.

          TITLE V--INTEGRATED LABOR MARKET INFORMATION SYSTEM

Sec. 501. Integrated labor market information.
Sec. 502. Responsibilities of the National Board. [[Page S660]] 
Sec. 503. Responsibilities of the Secretary.
Sec. 504. Responsibilities of Governors.

     SEC. 2. FINDINGS AND PURPOSE.

       (a) Findings.--Congress finds that--
       (1) increasing international competition, technological 
     advances, and structural changes in the United States economy 
     present new challenges to private firms and public 
     policymakers in creating a skilled workforce with the ability 
     to adapt to change and technological progress;
       (2) the Federal Government should work with the private 
     sector to create a streamlined, high-performance workforce 
     development system that is driven by the needs of its 
     customers rather than bureaucratic requirements;
       (3) such a system should actively encourage collaboration 
     among private sector firms and publicly funded education and 
     training efforts in order to assist jobseekers and workers to 
     adjust to structural economic changes;
       (4) although it is necessary for the Federal Government to 
     consolidate or eliminate unnecessary programs, the primary 
     goal of Federal workforce development policy should be to 
     help facilitate transactions taking place between jobseekers, 
     workers, and business in local labor markets;
       (5) while the Federal Government must maintain its 
     commitment to provide economically and educationally 
     disadvantaged individuals with skills and support services 
     necessary to succeed in the labor market, Federal workforce 
     development policy must also begin to provide incentives to 
     assist firms to help upgrade the skills of their front-line 
     workers;
       (6) in order for labor markets to function more 
     effectively, there must be--
       (A) timely, accurate information about the supply, demand, 
     price, and quality of services available in the job training 
     marketplace; and
       (B) trained brokers available to assist customers to choose 
     the most suitable service;
       (7) accordingly, the United States needs a comprehensive 
     integrated labor market information system to ensure that 
     workforce development programs are related to the demand for 
     particular skills in local labor markets, and a mechanism for 
     providing brokerage services to ensure that information about 
     the employment and earnings of the local workforce, and the 
     performance of education and training institutions, will be 
     available to jobseekers, workers, and firms;
       (8) in order to bring more coherence to Federal workforce 
     development policy, there should be a single entity at the 
     Federal, State, and local level vested with the necessary 
     authority to strategically plan ways to transform the 
     separate training and employment programs into an integrated 
     and accountable workforce development system;
       (9) these Federal, State, and local strategic planning 
     bodies should be structured in such a way to give businesses 
     and workers a meaningful role in shaping policy and 
     overseeing the quality of workforce development programs;
       (10) in recent years, many States and communities have made 
     progress in developing new approaches to better integrate 
     Federal employment and training programs;
       (11) the Federal Government should take more systematic 
     measures to encourage experimentation and flexibility, and to 
     disseminate best practices in the design and implementation 
     of a comprehensive workforce development system throughout 
     the country; and
       (12) the Federal Government should address the findings of 
     this subsection through the implementation of immediate and 
     long-term improvements that result in the establishment of a 
     high-quality workforce development system needed for the 
     economy of the 21st century.
       (b) Purpose.--It is the purpose of this Act--
       (1) to take certain immediate actions, and to establish a 
     process for bringing about longer term improvements, that are 
     needed to begin the transformation of Federally funded 
     education and job training efforts from a collection of 
     fragmented programs into a coherent, integrated, accountable 
     workforce development system that--
       (A) is based on the needs of jobseekers, workers, and 
     employers, rather than bureaucratic requirements;
       (B) is accessible to any jobseeker, worker, or employer;
       (C) focuses on accountability, performance, and accurate 
     information;
       (D) provides flexibility and responsibility to the States, 
     and in turn to local communities, for design and 
     implementation of workforce development systems;
       (E) requires the active involvement of firms and workers in 
     the governance, design, and implementation of such system;
       (F) is linked directly to employment and training 
     opportunities in the private sector; and
       (G) adopts best practices of quality administration and 
     management that have been successful in the private sector; 
     and
       (2) to authorize appropriations under this Act for fiscal 
     year 1996 at the same level as appropriations are authorized 
     for fiscal year 1995 for the programs repealed under section 
     102(a).

     SEC. 3. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--Subject to subsection (b), there are 
     authorized to be appropriated to carry out titles II, III, 
     and IV--
       (1) $160,000,000 for fiscal year 1996; and
       (2) such sums as may be necessary for each of fiscal years 
     1997 through 1999.
       (b) Limitations.--
       (1) Fiscal year 1996.--Of the funds made available pursuant 
     to subsection (a) for fiscal year 1996--
       (A) not more than 5 percent shall be used for the 
     activities of the National Board;
       (B) not more than 10 percent shall be used for matching 
     grants pursuant to section 404;
       (C) not more than 15 percent shall be used for development 
     grants pursuant to section 203(a); and
       (D) not less than 70 percent shall be used for 
     implementation grants pursuant to section 203(b).
       (2) Fiscal years 1997 through 1999.--Of the funds made 
     available pursuant to subsection (a) for each of fiscal years 
     1997 through 1999--
       (A) not more than 5 percent shall be used for the 
     activities of the National Board;
       (B) not more than 10 percent shall be used for matching 
     grants pursuant to section 404; and
       (C) not less than 85 percent shall be used for 
     implementation grants pursuant to section 203(b).
       (c) Integrated Labor Market Information System.--To carry 
     out title V, there are authorized to be appropriated--
       (1) $90,000,000 for fiscal year 1996; and
       (2) such sums as may be necessary for each succeeding 
     fiscal year.

     SEC. 4. DEFINITIONS.

       As used in this Act--
       (1) Development grant.--The term ``development grant'' 
     means a grant provided to each State under section 203(a).
       (2) Implementation grant.--The term ``implementation 
     grant'' means a grant provided under section 203(b).
       (3) Leading edge state.--The term ``leading edge State'' 
     means a State that has been awarded an implementation grant 
     under section 203(b).
       (4) Workforce development program.--The term ``workforce 
     development program'' means any Federally-funded or State-
     funded program that provides job training assistance to 
     individuals or assists employers to identify or train 
     workers.
       (5) Integrated workforce development system; integrated 
     system.--The terms ``integrated workforce development 
     system'' and ``integrated system'' mean the system of 
     employment, training, and employment-related education 
     programs, including the programs described in section 103(a) 
     and any additional Federal or State programs designated by 
     the Governor of a State, comprising the system described in 
     section 203(b).
       (6) National board.--The term ``National Board'' means the 
     National Workforce Development Board established under 
     section 202(b).
       (7) National report card.--The term ``National Report 
     Card'' means the Nation's Workforce Development Report Card 
     prepared pursuant to section 202(c)(1).
       (8) State council.--The term ``State Council'' means a 
     State Workforce Development Council established pursuant to 
     section 211.
       (9) State blueprint.--The term ``State Blueprint'' means 
     the State Workforce Development Policy Blueprint prepared 
     pursuant to section 214(a);
       (10) State report card.--The term ``State Report Card'' 
     means the State Workforce Development Report Card issued 
     pursuant to section 214(b).
       (11) Workforce development board.--The term ``workforce 
     development board'' means a local board established pursuant 
     to section 202.
       (12) Unified service delivery area.--The term ``unified 
     service delivery area'' means the common geographic service 
     area boundaries established pursuant to section 217 and 
     overseen by a workforce development board.
       (13) One-stop career center.--The term ``one-stop career 
     center'' means an access point for intake, assessment, 
     referral, and placement services, including services provided 
     electronically, that is part of the network established 
     pursuant to section 234.
       (14) Hard-to-serve.--The term ``hard-to-serve'' means an 
     individual meeting the requirements of section 203(b) of the 
     Job Training Partnership Act (29 U.S.C. 1603(b)).
       (15) Secretary.--The term ``Secretary'' means the Secretary 
     of Labor, unless otherwise specified.
                TITLE I--STREAMLINING AND CONSOLIDATION

     SEC. 101. PURPOSE; FINDINGS; SENSE OF THE CONGRESS.

       (a) Purpose.--The purpose of this title is to streamline 
     the system of federally funded employment training services 
     available to jobseekers, workers, and businesses.
       (b) Findings.--The Congress finds that--
       (1) the process of streamlining the current collection of 
     federally funded employment training programs begins with 
     eliminating and consolidating separate employment training 
     programs; and
       (2) as such programs are eliminated, the funding for such 
     programs should be utilized to support the creation of a 
     market-driven workforce development system, as described in 
     section 2(b).
       (c) Sense of the Congress.--It is the sense of the Congress 
     that--
       (1) any budget savings realized as a result of the repeal 
     of programs pursuant to section 102 or through the 
     consolidation of programs pursuant to sections 103 and 104 
     should be reinvested in the Nation's job training system; and
       (2) as programs are eliminated and merged, it is imperative 
     that such elimination and merging be done without in any way 
     reducing the commitment or level of effort of the 
     [[Page S661]] Federal Government to improving the education, 
     employment, and earnings of all workers and jobseekers 
     particularly hard-to-serve individuals.

     SEC. 102. ELIMINATION OF CERTAIN PROGRAMS.

       (a) In General.--The following provisions are repealed:
       (1) Section 6(d)(4) of the Food Stamp Act of 1977 (7 U.S.C. 
     2015(d)(4)).
       (2) Section 211 of the Appalachian Regional Development Act 
     of 1965 (40 U.S.C. App. 211).
       (3) Section 204 of the Immigration Reform and Control Act 
     of 1986 (8 U.S.C. 1255a note).
       (4) Section 20 of the Federal Transit Act (49 U.S.C. App. 
     1616).
       (5) The Displaced Homemaker Self-Sufficiency Assistance Act 
     (29 U.S.C. 2301 et seq.).
       (6) Section 43 of the Airline Deregulation Act of 1978 (49 
     U.S.C. App. 1552).
       (7) Title II of Public Law 95-250 (92 Stat. 172).
       (8) Section 413 of the Carl D. Perkins Vocational and 
     Applied Technology Education Act (21 U.S.C. 2413).
       (9) Title V of the Job Training Partnership Act (29 U.S.C. 
     1791 et seq.).
       (10) Part J of title IV such Act (29 U.S.C. 1784 et seq.).
       (11) Section 325 of such Act (29 U.S.C. 1662d).
       (12) Section 325A of such Act (29 U.S.C. 1662d-1).
       (13) Section 326 of such Act (29 U.S.C. 1662e).
       (14) Sections 1141 through 1144 of title 10, United States 
     Code.
       (15) Subtitle C of title VII of the Stewart B. McKinney 
     Homeless Assistance Act (42 U.S.C. 11441 et seq.).
       (b) Repeals of Employment Training Programs.--The repeals 
     made by subsection (a) shall take effect on the date of 
     enactment of this Act.
       (c) Technical and conforming amendments.--The National 
     Board shall include in the draft joint resolution submitted 
     under section 104(b), technical and conforming amendments 
     regarding the provisions repealed under subsection (a). Such 
     proposed amendments should be consistent with the purposes of 
     this Act.

     SEC. 103. STREAMLINING AND INTEGRATION OF ADULT TRAINING 
                   PROGRAMS.

       (a) Requirements.--
       (1) In general.--A State that receives an implementation 
     grant to develop an integrated workforce development system--
       (A) shall include in such system the components of the 
     program and activities carried out on the date of enactment 
     of this Act under the provisions described in subsection 
     (b)(1); and
       (B) may include any other Federal or State workforce 
     development program identified by the Governor under 
     paragraph (2).
       (2) Additional programs.--Any other Federal or State 
     workforce development program identified by the Governor 
     pursuant to section 203(b), subject to a two-thirds vote of 
     the National Board, may be included in the integrated system 
     of a State described in paragraph (1).
       (b) Repeals of Job Training Programs.--
       (1) In general.--The following provisions are repealed:
       (A) Part A of title II of the Job Training Partnership Act 
     (29 U.S.C. 1601 et seq.).
       (B) Title III of such Act (29 U.S.C. 1651 et seq.).
       (C) Part C of title IV of such Act (29 U.S.C. 1721).
       (D) The Wagner-Peyser Act (29 U.S.C. 40 et seq.).
       (E) Sections 235 and 236 of the Trade Act of 1974 (19 
     U.S.C. 2295 and 2296), and paragraphs (1) and (2) of section 
     250(d) of such Act (19 U.S.C. 2331(d)(1) and(2)).
       (F) The Refugee Education Assistance Act of 1980 (8 U.S.C. 
     1522 note).
       (G) Title V of the Older Americans Act of 1965 (42 U.S.C. 
     3056 et seq.).
       (2) Effective date.--The repeals made by paragraph (1) 
     shall take effect on September 30, 1999.
       (3) Technical and conforming amendments.--The National 
     Board shall include in the draft joint resolution submitted 
     under section 104(b), technical and conforming amendments 
     regarding the provisions repealed under subsection (a). Such 
     proposed amendments should be consistent with the purposes of 
     this Act.

     SEC. 104. PROCESS FOR ESTABLISHING 21ST CENTURY WORKFORCE 
                   DEVELOPMENT SYSTEM.

       (a) Annual Recommendations.--Not later than 180 days after 
     the date of enactment of this Act, and each June 1 
     thereafter, the National Board shall make recommendations to 
     the President and Congress for the elimination of Federal 
     workforce development programs, or programs whose functions 
     should be subsumed under other Federal programs.
       (b) Report and Joint Resoluntion.--
       (1) Report.--Not later than June 1, 1999, the National 
     Board, based on such board's analysis of the experience of 
     leading edge States and the progress made toward establishing 
     an integrated, market-driven workforce development system, 
     shall prepare and submit to the Committee on Economic and 
     Educational Opportunities of the House of Representatives and 
     the Committee on Labor and Human Resources of the Senate a 
     report containing the findings of such board, and 
     recommendations for proposed reforms.
       (2) Joint resolution.--Not later than June 1, 1999, the 
     National Board shall submit to the Congress a draft of a 
     joint resolution containing provisions to develop a 
     streamlined, integrated, market-driven workforce development 
     system, from the programs described in section 103(b) and any 
     other Federal workforce development program determined by the 
     National Board as appropriate to be included that is 
     consistent with this Act, pursuant to section 2(b). The joint 
     resolution shall include recommendations for standard outcome 
     measures as described in section 204(a)(2) and shall describe 
     how the new system will maintain services to hard-to-serve 
     populations.

     SEC. 105. CENTRALIZED WAIVERS.

       (a) Expedited Process.--Not later than 180 days after the 
     date of enactment of this Act, the President shall establish 
     an expedited process to consider and act on waiver requests 
     submitted by the States under this section.
       (b) States Not Receiving Implementation Grants.--
       (1) In general.--Any State may apply, in accordance with 
     this section, for a waiver of statutory or regulatory 
     requirements under one or more of the programs described in 
     section 103(b)(1), for a period of 2 years to facilitate the 
     provision of assistance for workforce development.
       (2) Waiver authority.--A waiver may be granted under this 
     subsection only if--
       (A) the requirement sought to be waived impedes the ability 
     of the State, or a local entity in the States, to carry out 
     the State or local workforce development plan;
       (B) the State has waived, or agrees to waive, similar 
     requirements of State law; and
       (C) in the case of a statewide waiver, the State--
       (i) provides all State and local agencies and appropriate 
     organizations in the State, including labor organizations, 
     with notice and an opportunity to comment on the State's 
     proposal to seek a waiver; and
       (ii) submits the affected agency's comments with the waiver 
     application.
       (3) Application.--Each application submitted under this 
     subsection shall--
       (A) identify the statutory or regulatory requirements that 
     are requested to be waived and the goals that the State or 
     local agency intends to achieve;
       (B) describe the action that the State has undertaken to 
     remove State statutory or regulatory barriers identified in 
     the application;
       (C) describe the purpose of the waiver and the expected 
     programmatic outcomes if the request is granted;
       (D) describe the numbers and types of people to be affected 
     by such waiver;
       (E) describe a timetable for implementing the waiver;
       (F) describe the process the State will use to monitor, on 
     a biannual basis, the progress in implementing the waiver; 
     and
       (G) describe how the goals of the program or programs for 
     which a waiver is granted will continue to be met.
       (c) States Receiving Implementation Grants.--Subject to 
     subsection (d), each State receiving an implementation grant 
     under section 203(b) shall have the statutory or regulatory 
     requirement, described in its grant application or State 
     Blueprint of such State waived for the duration of the 
     implementation grant.
       (d) Limitations.--
       (1) In general.--A waiver shall not be granted under a 
     workforce development program if such waiver would alter--
       (A) the purposes or goals of such program;
       (B) the allocation of funds under such program;
       (C) any statutory or regulatory requirement under such 
     program relating to public health or safety, civil rights, 
     protections granted under title I and sections 503 and 504 of 
     the Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.), 
     occupational safety and health, environmental protection, 
     displacement of current employees, or fraud and abuse; or
       (D) eligibility requirements under such program, except 
     that a waiver may be granted with respect to an eligibility 
     requirement if such waiver would provide for increased 
     flexibility in developing common definitions for individuals 
     eligible for such program.
       (2) Circulars and related regulations.--The following 
     circulars promulgated by the Office of Management and Budget 
     shall be subject to the waiver authority of this subsection:
       (A) A-87, relating to cost principles for State and local 
     governments.
       (B) A-102, relating to grants and cooperative agreements 
     with State and local governments.
       (C) A-122, relating to nonprofit organizations.
       (D) A-110, relating to administrative requirements for 
     grants and cooperative agreements with nonprofit 
     organizations and institutions of higher education.
       (E) A-21, relating to cost principles for institutions of 
     higher education.
       (3) Effective date.--A waiver granted under this section 
     shall take effect on the date such waiver is granted.
       (4) Review of application.--Each application submitted by a 
     State pursuant to subsection (b)(3) shall be reviewed by the 
     Secretary or agency head who has jurisdiction over the 
     workforce development program or programs to which such 
     waiver request relates.
       (5) Approval or disapproval of application.--
       (A) Timing.--Each application submitted by a State in 
     accordance with subsection (b)(3) shall be reviewed promptly 
     upon receipt, and shall be approved or disapproved 
     [[Page S662]] not later than the end of the 60-day period 
     beginning on the date such application is received.
       (B) Approval.--A waiver or waivers proposed in an 
     application may be approved for the 2-year period beginning 
     on the date such application is approved, if the State 
     demonstrates in the application that such waiver or waivers 
     will achieve coordination, expansion, and improvement in the 
     quality of services under its workforce development system.
       (C) Disapproval and resubmission.--If an application is 
     incomplete or unsatisfactory, the appropriate Federal 
     official shall, before the end of the period referred to in 
     subparagraph (A)--
       (i) notify the State of the reasons for the failure to 
     approve the application;
       (ii) notify the State that the application may be 
     resubmitted during the period referred to in clause (iii); 
     and
       (iii) permit the State to resubmit a corrected or amended 
     application during the 60-day period beginning on the date of 
     notification under this subparagraph.
       (D) Review of resubmitted application.--Any application 
     resubmitted under subparagraph (C) shall be approved or 
     disapproved before the expiration of the 60-day period 
     beginning on the date of the resubmission.
       (6) Revocation of waiver.--If, after the approval of an 
     application under this subsection, the Secretary determines 
     that the waiver or waivers do not achieve coordination, 
     expansion, and improvement in the quality of services under 
     the workforce development programs to which such waiver or 
     waivers relate, the waiver or waivers may be revoked in whole 
     or in part.
                  TITLE II--MARKET BUILDING ACTIVITIES
                  Subtitle A--Federal Level Activities

     SEC. 201. PURPOSE.

       The purpose of this title is to establish a framework at 
     the Federal, state, and local levels for key stakeholders to 
     work cooperatively to build the infrastructure, brokerage, 
     and accountability systems needed to transform current 
     Federally funded job training programs into a market-driven 
     workforce development system.

     SEC. 202. NATIONAL WORKFORCE DEVELOPMENT BOARD.

       (a) Findings.--The Congress finds that a national workforce 
     development board is necessary to ensure--
       (1) the establishment and continuous improvement of the 
     national workforce development system;
       (2) that integrated strategic planning takes place among 
     the Federal agencies currently responsible for administering 
     job training programs;
       (3) incorporation of private sector expertise to the 
     governance of the national workforce development system; and
       (4) that unnecessary legislative and regulatory barriers to 
     service integration are removed as a market-driven workforce 
     development system is established.
       (b) Establishment.--
       (1) In general.--There is established the National 
     Workforce Development Board (referred to in this Act as the 
     ``National Board'').
       (2) Composition.--The National Board shall be comprised of 
     16 members, of whom--
       (A) one member shall be the Secretary of Labor;
       (B) one member shall be the Secretary of Education;
       (C) one member shall be the Secretary of Health and Human 
     Services;
       (D) one member shall be the Secretary of Commerce;
       (E) three members shall be representatives of business 
     (including representatives of small businesses and large 
     employers);
       (F) three members shall be representatives of organized 
     labor;
       (G) three members shall be State and local elected 
     officials of whom two shall be Governors of a State and one 
     shall be a local elected official; and
       (H)(i) one member shall be selected from representatives of 
     community-based organizations;
       (ii) one member shall be selected from representatives of 
     secondary schools or postsecondary educational institutions; 
     and
       (iii) one member shall be selected from representatives of 
     nongovernmental organizations that have a history of 
     successfully protecting the rights of individuals with 
     disabilities or older persons.
       (3) Additional requirements.--The members described in 
     subparagraphs (E) and (F) of paragraph (2) shall--
       (A) in the aggregate, represent a broad cross-section of 
     occupations and industries;
       (B) to the extent feasible, be geographically 
     representative of the United States, and reflect the racial, 
     ethnic, and gender diversity of the United States; and
       (C) shall include at least one member of the National Skill 
     Standards Board established pursuant to section 503 the 
     National Skill Standards Act of 1994.
       (4) Expertise.--The National Board and the staff shall have 
     sufficient expertise to effectively carry out the duties and 
     functions of the National Board.
       (5) Appointment.--The members described in subparagraphs 
     (E), (F), (G), and (H) of paragraph (2) shall be appointed by 
     the President, by and with the advice and consent of the 
     Senate.
       (6) Ex officio nonvoting members.--The Director of the 
     Office of Management and Budget and the chairpersons and 
     ranking minority members of the Committee on Labor and Human 
     Resources of the Senate and the Committee on Economic and 
     Educational Opportunities of the House of Representatives 
     shall be ex officio, nonvoting members of the National Board.
       (7) Terms.--Each member of the National Board appointed 
     under subparagraph (E), (F), (G), and (H) of paragraph (2) 
     shall be appointed for a term of 4 years, except that of the 
     initial members of the National Board appointed under such 
     subparagraphs--
       (A) four members shall be appointed for a term of 2 years;
       (B) four members shall be appointed for a term of 3 years; 
     and
       (C) four members shall be appointed for a term of 4 years.
       (8) Vacancies.--Any vacancy on the National Board shall not 
     affect the powers of the National Board, but shall be filled 
     in the same manner as the original appointments.
       (9) Chairpersons.--The President, by and with the advice 
     and consent of the Senate, shall select one cochairperson of 
     the National Board from among the members of the National 
     Board appointed under paragraph (2)(E) and one cochairperson 
     from among the members appointed pursuant to paragraph 
     (2)(F).
       (10) Compensation and expenses.--
       (A) Compensation.--Each member of the National Board who is 
     not a full-time employee or officer of the Federal Government 
     shall serve without compensation. Each member of the National 
     Board who is an officer or employee of the Federal Government 
     shall serve without compensation in addition to that received 
     for the services of such member as an officer or employee of 
     the Federal Government.
       (B) Expenses.--The members of the National Board shall be 
     allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for employees of agencies 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from their homes or regular places of 
     business in the performance of services for the National 
     Board.
       (11) Executive director and staff.--
       (A) Executive director.--The cochairpersons of the National 
     Board shall appoint an Executive Director who shall be 
     compensated at a rate determined by the National Board, not 
     to exceed the rate payable for level V of the Executive 
     Schedule under section 5316 of title 5, United States Code.
       (B) Staff.--The Executive Director may--
       (i) appoint and compensate such additional staff as may be 
     necessary to enable the National Board to perform its duties; 
     and
       (ii) fix the compensation of the staff without regard to 
     the provisions of chapter 51 and subchapter III of chapter 53 
     of title 5, United States Code, relating to classifications 
     of positions and General Schedule pay rates, except that the 
     rate of pay for the staff may not exceed the rate payable for 
     level V of the Executive Schedule under section 5316 of such 
     title.
       (12) Agency support.--
       (A) Use of facilities.--The National Board may use the 
     research, equipment, services, and facilities of any agency 
     or instrumentality of the United States with the consent of 
     such agency or instrumentality.
       (B) Staff of federal agencies.--Upon the request of the 
     National Board, the head of any Federal agency may detail to 
     the National Board, on a reimbursable basis, any of the 
     personnel of such Federal agency to assist the National Board 
     in carrying out this Act. Such detail shall be without 
     interruption or loss of civil service status or privilege.
       (13) Procurement of temporary and intermittent services.--
     The co-chairpersons of the National Board may procure 
     temporary and intermittent services of experts and 
     consultants under section 3109(b) of title 5, United States 
     Code.
       (c) Duties.--
       (1) National report card.--
       (A) In general.--Not later than July 1, 1996, and each July 
     1 thereafter, the National Board shall prepare a report to be 
     known as the Nation's Workforce Development Report Card 
     (referred to in this Act as the ``National Report Card'').
       (B) Requirements.--The National Report Card shall assess 
     the performance of the workforce development system of the 
     United States, based on the earnings and employment gains and 
     other nonemployment-related outcomes of individuals assisted 
     by the programs comprising such system. The National Report 
     Card shall evaluate all workforce development programs that 
     receive Federal funding, and shall--
       (i) assess the performance of each program;
       (ii) assess performance based on the type of assistance 
     provided, including the categories of services identified in 
     section 204(b)(1)(C);
       (iii) assess year-to-year changes in performance;
       (iv) report on the extent to which hard-to-serve 
     populations are receiving services and the related outcomes 
     in relation to services received in the preceding three 
     years;
       (v) determine the annual Federal investment in workforce 
     development in each State;
       (vi) assess the lessons learned from the experience of 
     leading-edge States, and States that waive certain program 
     requirements to experiment with alternative workforce 
     development strategies; and
       (vii) assess the performance of the workforce development 
     system in each State. [[Page S663]] 
       (2) Congressional testimony.--The cochairpersons of the 
     National Board shall, at least annually, provide testimony, 
     during a joint hearing before the Committee on Labor and 
     Human Resources of the Senate and the Committee on Economic 
     and Educational Opportunities of the House of Representatives 
     on the progress being made in--
       (A) developing a more streamlined integrated and 
     accountable public and private workforce development system 
     in the United States; and
       (B) carrying out the purposes described in section 2(b).
       (3) Review of grant proposals.--The National Board shall 
     review the development grant proposals pursuant section 
     203(a), the implementation grant proposals pursuant to 
     section 203(b), and the matching grant proposals submitted 
     pursuant to section 404, and make recommendations to the 
     Secretary regarding such proposals.
       (4) Final recommendations.--Not later than June 1, 1999, 
     the National Board shall submit recommendations in the form 
     of a joint resolution to the President and Congress, pursuant 
     to section 104(b).
       (d) Termination.--The National Board shall terminate on the 
     date on which the National Board submits the joint resolution 
     to President and Congress under section 104(b).
       (e) National for employment policy.--
       (1) In general.--Part F of title IV of the Job Training 
     Partnership Act (29 U.S.C. 1771 et seq.) is repealed.
       (2) Conforming amendment.--Subsection (i) of section 106 of 
     such Act (29 U.S.C. 1516(i)) is amended by striking ``(i) 
     Functions of NCEP.--The National Commission for Employment 
     Policy'' and inserting ``(i) Functions of National Workforce 
     Development Board.--The National Workforce Development Board 
     established under section 202 of the Workforce Development 
     Act''.

     SEC. 203. MECHANISMS FOR BUILDING HIGH QUALITY INTEGRATED 
                   WORKFORCE DEVELOPMENT SYSTEMS.

       (a) State Development Grants.--
       (1) Purpose.--The purpose of this subsection is to assist 
     States and communities in strategic planning for integrated 
     workforce development systems, including the development of a 
     financial and management information system, a quality 
     assurance system, and an integrated labor market information 
     system.
       (2) Grants to states.--The Secretary may provide a 
     development grant to a State in such amount as the Secretary, 
     in consultation with the National Board, determines to be 
     necessary to enable such State to develop a strategic plan, 
     as described in paragraph (1), for the development of a 
     comprehensive statewide integrated workforce development 
     system.
       (3) Application.--To be eligible to receive a development 
     grant under this subsection, the Governor of a State, on 
     behalf of the State, shall submit to the National Board and 
     the Secretary an application, at such time, in such form, and 
     containing such information as the Secretary may require.
       (b) Implementation Grants to Leading-Edge States.--
       (1) Purpose.--The purpose of this subsection is to assist 
     States in implementing statewide high-quality integrated 
     workforce development systems that are accountable for 
     achieving results.
       (2) Grants to states.--The Secretary, in consultation with 
     the National Board, may provide an implementation grant to 
     the State in such amount as the Secretary determines to be 
     necessary to enable such State to implement an integrated 
     workforce development system.
       (3) Period of grant.--The provision of payments under a 
     grant under this subsection shall not exceed 4 fiscal years, 
     and shall be subject to the annual approval of the Secretary, 
     in consultation with the National Board, and the availability 
     of appropriations for the fiscal year involved.
       (4) Allocation requirements.--
       (A) First year.--For the first fiscal year for which a 
     State receives amounts from an implementation grant under 
     this subsection, the State shall use not less than 75 percent 
     of such amount to provide subgrants to local workforce 
     development boards.
       (B) Second year.--For the second fiscal year for which a 
     State receives amounts from an implementation grant under 
     this subsection, the State shall use not less than 80 percent 
     of such amount to provide subgrants to local workforce 
     development boards.
       (C) Third and succeeding years.--For the third, and each 
     succeeding, fiscal year for which a State receives amounts 
     from an implementation grant under this subsection, the State 
     shall use not less than 85 percent of such amount to provide 
     subgrants to local workforce development boards.
       (5) Limitation.--A State shall be eligible to receive not 
     more than 1 implementation grant under this subsection.
       (6) Application.--To be eligible to receive an 
     implementation grant under this subsection, the Governor of a 
     State, on behalf of the State, shall submit to the National 
     Board and the Secretary an application that shall include a 
     copy of the State Blueprint and such other information as the 
     Secretary, with the advice of the National Board, may 
     require.
       (c) Dissemination of Information on Best Practices.--The 
     Secretary, in consultation with the National Board, shall--
       (1) collect and disseminate information that will assist 
     State and local communities undertaking activities to 
     streamline and reform their job training systems, including 
     information on--
       (A) the successful experiences of States and localities 
     that--
       (i) have received development or implementation grants;
       (ii) have been granted waivers; or
       (iii) are experimenting with training account systems 
     established under title III of this Act; and
       (B) research concerning the restructuring of workforce 
     development systems; and
       (2) facilitate the exchange of information and ideas among 
     States and local entities that are building market-based 
     workforce development systems.
       (d) Workforce Development Impact Reports.--
       (1) Submission.--For each bill or resolution concerning 
     workforce development reported by any committee of the Senate 
     or the House of Representatives, the National Board shall 
     determine whether proposed Federal job training legislation 
     complies with the data reporting, common definitions, and 
     common funding cycles described in subsections (b) and (e) of 
     section 204. A determination of compliance by the National 
     Board under this subsection shall be included in the 
     committee report accompanying such legislation, if timely 
     submitted to such committee before such report is filed.
       (2) Procedure.--It shall not be in order in the Senate or 
     the House of Representatives to consider any bill or 
     resolution concerning workforce development that would not 
     comply with the national workforce development system, as 
     determined by the National Board under paragraph (1).
       (3) Waiver.--This subsection may be waived or suspended in 
     the Senate or the House of Representatives only by the 
     affirmative vote of three-fifths of the members of such 
     House.

     SEC. 204. QUALITY ASSURANCE SYSTEM.

       (a) Purpose.--The purpose of this section is to improve the 
     quality of all Federal programs directed at improving the 
     knowledge, skills, and abilities of members of the workforce 
     by strengthening accountability and encouraging the adoption 
     of quality improvement processes at all levels of the 
     workforce development system. In order to accomplish this 
     purpose, this Act--
       (1) directs the Secretaries of Labor, Education, and Health 
     and Human Services to jointly, in consultation with the 
     National Board--
       (A) develop common terms and definitions as described in 
     subsection (b);
       (B) develop a placement accountability system as described 
     in subsection (c); and
       (C) adjust existing program performance standards as 
     described in section 220(c); and
       (2) directs the National Board to recommend a system of 
     performance standards in its joint resolution submitted to 
     Congress pursuant to section 104(b) that includes standard 
     outcome measures relating to--
       (A) employment;
       (B) job retention;
       (C) earnings; and
       (D) nonemployment outcome measures, such as learning and 
     competency gains.
       (b) Common Terms and Definitions.--
       (1) In general.--Each workforce development program that 
     receives Federal funds shall collect and report to the 
     Governor and the State Council, if applicable, for each 
     participant to whom assistance is provided, the following 
     information:
       (A) The quarterly employment status and earnings for 1 year 
     after the participant no longer receives assistance under 
     such program.
       (B) Economic and demographic characteristics, including the 
     participant's--
       (i) social security number;
       (ii) date of birth;
       (iii) gender;
       (iv) race or ethnicity;
       (v) disability status;
       (vi) education (highest formal grade level achieved at 
     commencement of participation in program);
       (vii) academic degrees and credentials at time of entry 
     into the program; and
       (viii) employment status at the time of entry into the 
     program.
       (C) Services received, the extent, when appropriate, and 
     spending for such services, including--
       (i) assessments;
       (ii) testing;
       (iii) counseling;
       (iv) job development or job search assistance;
       (v) occupational skills training;
       (vi) work experience;
       (vii) job readiness training;
       (viii) basic skills education;
       (ix) postsecondary academic education (nonoccupational);
       (x) supportive and supplementary services; and
       (xi) on-the-job training.
       (D) Program outcomes, as specified by the State, such as--
       (i) advancement to higher level education or training;
       (ii) attainment of additional degrees or credentials 
     (including skill standards as such standards become 
     available);
       (iii) assessment of learning gain in basic skills programs;
       (iv) attainment and retention of subsidized or unsubsidized 
     employment;
       (v) quarterly earnings; and
       (vi) reduction in welfare dependency.
       (2) Replacement of existing requirements.--Program 
     monitoring under this section shall supplant existing 
     monitoring and [[Page S664]] reporting requirements for 
     program participants.
       (3) Adoption of common terms and definitions.--
       (A) Report.--Not later than 180 days after the date of 
     enactment of this Act, each Federal department and agency 
     with responsibility for a workforce development program shall 
     report to the National Board on its progress in adopting the 
     common terms and definitions for program participants, 
     service activities, and outcomes by program operators and 
     grant recipients.
       (B) Implementation.--Not later than 1 year after the date 
     of enactment of this Act, each workforce development program 
     receiving Federal funds shall use the common terms and 
     definitions.
       (C) Use.--Upon adoption by the appropriate Federal 
     agencies, the common definitions for terminology developed 
     and reported pursuant to section 455 of the Job Training 
     Partnership Act (29 U.S.C. 1735(b)) shall be utilized in 
     interpreting and compiling the core data elements. 
     Notwithstanding any other provision of Federal law, such 
     common definitions shall be utilized in lieu of existing 
     program definitions for similar data elements.
       (4) Recommendations.--Not later than 180 days after the 
     date all of the Members of the National Board are appointed, 
     the National Board shall make recommendations to the 
     Secretaries of Labor, Education, and Health and Human 
     Services, and the heads of other agencies operating workforce 
     development programs, on common definitions for other terms, 
     including terms relating to--
       (A) program status, including--
       (i) applicant;
       (ii) participant;
       (iii) terminee; and
       (iv) training-related placement;
       (B) program eligibility, including--
       (i) family income; and
       (ii) economically disadvantaged individuals; and
       (C) other terms considered appropriate by the National 
     Board, such as common cost categories.
       (5) Amendments.--If any of the proposed common definitions 
     require amendment to existing laws, the National Board shall 
     submit to Congress recommendations for legislative action not 
     later than 9 months after the date all of the members of the 
     National Board are appointed.
       (c) Placement Accountability.--
       (1) In general.--The purpose of this subsection is to 
     establish a placement accountability system using a cost-
     effective data source with information on job placement, 
     earnings, and job retention, to foster accountability by all 
     federally funded workforce development programs.
       (2) Performance monitoring.--Each workforce development 
     program that receives Federal funds shall--
       (A) engage in continuous performance self-monitoring by 
     measuring, at a minimum, the quarterly employment status and 
     earnings of each recipient of assistance under such program; 
     and
       (B) monitor each recipient of assistance for a period of 
     not less than 1 year, beginning on the date on which the 
     recipient no longer receives assistance under such program.
       (3) Information matching.--
       (A) Core data.--Each workforce development program that 
     receives Federal funds shall provide the information 
     described in subsection (b) regarding program participants to 
     the State agency responsible for labor market information 
     designated in title V.
       (B) Matching.--The State agency responsible for labor 
     market information designated in title V shall, in 
     conjunction with the Bureau of Labor Statistics, match the 
     information provided pursuant to subparagraph (A) with 
     quarterly employment and earnings records.
       (4) Reimbursement.--Requesting programs shall reimburse the 
     State agency responsible for wage record data for the cost of 
     matching such information. Notwithstanding any other 
     provision of Federal law, requesting programs may use Federal 
     funds for such reimbursement.
       (5) Confidentiality.--Requesting pro- grams--
       (A) shall protect the confidentiality of wage record data 
     through the use of recognized security procedures; and
       (B) may not retain such data for more than 10 years.
       (6) Submission to state council.--The State agency 
     responsible for labor market information shall submit the 
     results of the matching to the State Council, in accordance 
     with procedures and schedules specified by the National Board 
     and the Secretary.
       (7) Responsibility of governors.--The Governor of each 
     State shall ensure the submission of the matched data to the 
     State Council, the National Board, the Secretary, and other 
     Federal entities, as required by the National Board.
       (d) Dissemination of Quality Assurance.--The information 
     obtained under subsection (c) shall be made available to--
       (1) the State Council of the State in which the program is 
     located;
       (2) the local workforce development boards in the State in 
     which the program is located; and
       (3) consumers of labor market information to judge 
     individual program performance in an easily accessible 
     format.
       (e) Consistent Funding Cycles.--
       (1) In general.--All federally funded workforce development 
     training activities shall, to the extent practicable, be 
     funded on a consistent funding cycle basis.
       (2) Recommendations for funding cycle.--Not later than 180 
     days after the date on which all of the members of the 
     National Board are appointed, the National Board shall make 
     recommendations to Congress on the appropriate funding cycle 
     to be used for all workforce development programs and 
     activities.
                   Subtitle B--State Level Activities

     SEC. 211. STATE WORKFORCE DEVELOPMENT COUNCILS.

       (a) Establishment.--Each State desiring to participate in 
     the development of an integrated and accountable workforce 
     development system under the procedures specified in section 
     203(b) shall establish a State Workforce Development Council 
     (referred to in this Act as a ``State Council'') or have 
     located within such State an existing entity that is similar 
     to a State Council and that includes members who are 
     representatives of employers and workers.
       (b) Purpose.--Each State Council shall serve as the 
     principal advisory board for the Governor of such State for 
     all programs included in the integrated workforce development 
     system of such State.
       (c) Functions.--Each State Council shall assume the 
     functions and responsibilities of councils and commissions 
     required under Federal law that are part of the integrated 
     workforce development system of such State.

     SEC. 212. MEMBERSHIP.

       (a) In General.--
       (1) Representatives of business and industry and organized 
     labor.--Each State Council shall be comprised of individuals 
     who are appointed by the Governor for a term of not less than 
     2 years from among--
       (A) representatives of business and industry, who shall 
     constitute not less than 33 percent of the membership of the 
     State Council, including individuals who are members of local 
     workforce development boards;
       (B) representatives of organized labor who shall constitute 
     not less than 25 percent of the membership of the State 
     Council and shall be selected from among individuals 
     nominated by recognized State labor federations; and
       (C) representatives of secondary and postsecondary academic 
     or vocational education institutions.
       (2) Additional members.--Each State Council may include one 
     or more qualified members who are appointed by the Governor 
     from among representatives of the following:
       (A) Community-based organizations.
       (B) Nongovernmental organizations that have a history of 
     successfully protecting the rights of individuals with 
     disabilities or older persons.
       (C) Units of general local government or consortia of such 
     units.
       (D) State officials responsible for administering programs 
     described in sections 103 and 104 and included in the 
     integrated system.
       (E) The State legislature.
       (F) Any local program that receives Federal funding from 
     any program included in the integrated workforce development 
     system of the State.
       (b) Ex Officio.--
       (1) Nonvoting members.--The Governor may appoint ex officio 
     additional nonvoting members to the State Council.
       (2) Expertise.--The Governor of the State shall ensure that 
     the State Council and the staff of the State Council have 
     sufficient expertise to effectively carry out the duties and 
     functions of the State Council described under the laws 
     relating to the applicable program.

     SEC. 213. CHAIRPERSON.

       The Governor of the State shall appoint a chairperson of 
     the State Council who shall be a representative of the 
     business community.

     SEC. 214. DUTIES AND RESPONSIBILITIES.

       (a) State Workforce Development Policy Blueprint.--The 
     State Council shall assist the Governor to prepare and submit 
     to the National Board a biennial report to be known as the 
     State Workforce Development Policy Blueprint (referred to in 
     this Act as the ``State Blueprint''). The State Blueprint 
     shall--
       (1) serve as a strategic plan for integrating federally 
     funded workforce development programs included in an 
     integrated system of the State, established pursuant to 
     section 203(b), with State-funded job training, employment, 
     employment-related education, and economic development 
     activities;
       (2) summarize and analyze information about training needs 
     of critical industries in the State contained in the local 
     workforce development policy blueprints developed by the 
     workforce development boards;
       (3) establish State goals for the integrated workforce 
     development system and a common core set of performance 
     measures and standards for programs included in the system, 
     to be used in lieu of existing performance measures and 
     standards for each of the included programs;
       (4) analyze how the businesses and labor organizations of 
     the State are--
       (A) progressing in the restructuring of the work place to 
     provide continuous learning;
       (B) improving the skills and abilities of front-line 
     workers of such businesses; and
       (C) participating in State and local efforts to transform 
     federally funded education and job training programs into a 
     coherent and accountable workforce development system;
     [[Page S665]]
     
       (5) utilize information available from the State Report 
     Card and other sources to analyze the relative effectiveness 
     of individual workforce development programs within the State 
     and of the State's workforce development system as a whole;
       (6) evaluate the progress being made within the State in 
     streamlining, consolidating, and reforming the workforce 
     development system of the State in accordance with the 
     purposes contained in section 2(b) and the framework for 
     State implementation contained in the implementation grant 
     proposal of the State;
       (7) describe how service to special hard-to-serve 
     populations is to be maintained;
       (8) identify how any funds that a State may be receiving 
     under section 203(b) are to be utilized in conjunction with 
     existing resources to continuously improve the effectiveness 
     of the workforce development system of the State;
       (9) describe the method to be used to allocate funds 
     received under section 203(b) in a fair and equitable manner 
     among unified service delivery areas;
       (10) specify the additional elements, if any, to be 
     included in operating agreements between local workforce 
     development boards and one-stop career centers;
       (11) specify additional criteria, if any, for selection of 
     one-stop career centers;
       (12) specify the nonemployment-related outcome measures 
     that will be used for the workforce development system;
       (13) specify the nature and scope of the budget authority 
     for local workforce development boards in the State; and
       (14) supplant federally required planning reports for 
     programs under the integrated workforce development system of 
     the State.
       (b) State Workforce Development Report Card.--The State 
     Council shall assist the Governor of the State to issue an 
     annual report to be known as the State Workforce Development 
     Report Card (referred to in this Act as the ``State Report 
     Card''). The State Report Card shall describe the performance 
     of all workforce development programs operating in the State 
     that receive Federal funding and any additional State-funded 
     programs that the Governor may choose to include. The State 
     Report Card shall--
       (1) include an integrated budget that documents the annual 
     spending, number of clients served, and types of services 
     provided for workforce development programs for the State as 
     a whole and for each unified service delivery area within the 
     State;
       (2) assess the level of services to hard-to-serve 
     populations in relation to the number served and outcomes for 
     those populations during the preceding 3 years;
       (3) utilize information available from the quality 
     assurance system established under section 204 to assess--
       (A) employment and earnings experiences of individuals who 
     have received assistance from each workforce development 
     program operated in the State; and
       (B) relative employment and earnings experiences of 
     participants receiving services from each one-stop career 
     center in the State;
       (4) include an analysis of other nonemployment-related 
     results for each workforce development program operating 
     within the State; and
       (5) include a report of annual employment trends and 
     earnings (by industry and occupation) in the State and each 
     unified service delivery area, to assist State and local 
     policymakers, training providers, and users of the system to 
     link the training provided to the skill and labor force needs 
     of local employers.
       (c) Workforce Development Board Certification and 
     Effectiveness Criteria.--Each State Council shall--
       (1) assist the Governor to certify each local workforce 
     development board; and
       (2) make recommendations to the Governor for criteria that 
     will be used to judge the effectiveness of each of the 
     workforce development boards of the State.

     SEC. 215. DEVELOPMENT OF QUALITY ASSURANCE SYSTEMS AND 
                   CONSUMER REPORTS.

       (a) In General.--The State Council shall develop a quality 
     assurance system to complement and expand upon the quality 
     assurance system established in section 204 in order to 
     provide customers of job training services with consumer 
     reports on the supply, demand, price, and quality of job 
     training services in each unified service delivery area in 
     the State.
       (b) Selection of Tools and Measures.--Each State shall 
     select the tools and measures that are appropriate to the 
     needs of such State, including--
       (1) collecting and organizing service provider performance 
     data in accordance with information generated from the State 
     Report Card under section 214(b), the financial and 
     management information system designed pursuant to section 
     218, and the labor market information system of the State 
     described in section 501; and
       (2) conducting surveys as appropriate to ascertain customer 
     satisfaction.
       (c) Collection and Dissemination.--The State Council shall, 
     in conjunction with the local workforce development boards, 
     establish mechanisms for collecting and disseminating the 
     quality assurance information on a regular basis to--
       (1) individuals seeking employment;
       (2) employers;
       (3) policymakers at the Federal, State, and local levels; 
     and
       (4) training and education providers.
       (d) Assurances.--Each public and private education, 
     training, and career development service provider receiving 
     Federal funds under a program in an integrated system of the 
     State pursuant to section 203(b) shall collect and provide 
     the quality assurance information required under this 
     section.

     SEC. 216. ADMINISTRATION.

       (a) Authorities.--Each State Council shall be independent 
     of other State workforce development agencies and have the 
     authority to--
       (1) employ staff; and
       (2) receive and disburse funds.
       (b) Special Projects.--Each State Council may fund and 
     operate special pilot or demonstration projects for purposes 
     of research or continuous improvement of system performance.
       (c) Limitation on Use of Funds.--Not more than 5 percent of 
     the funds received by the State from an implementation grant 
     under section 203(b) shall be used for the administration of 
     the State Council.

     SEC. 217. ESTABLISHMENT OF UNIFIED SERVICE DELIVERY AREAS.

       (a) Recommendations.--Each State Council shall make 
     recommendations to the Governor of such State for the 
     establishment of unified service delivery areas that may be 
     used as intrastate geographic boundaries, to the extent 
     practicable, for all workforce development programs in an 
     integrated system of the State pursuant to section 203(b).
       (b) Establishment.--Each State receiving an implementation 
     grant under section 203(b) shall, based upon the 
     recommendations of the State Council, and in consultation and 
     cooperation with local communities, establish unified service 
     delivery areas throughout the State for the purpose of 
     providing community-wide workforce development assistance in 
     one-stop career centers under section 234.
       (c) Responsibilities.--In establishing unified service 
     delivery areas, the Governor, in consultation with the State 
     Council and local communities--
       (1) shall take into consideration existing--
       (A) labor market areas;
       (B) units of general local government;
       (C) service delivery areas established under section 101 of 
     the Job Training Partnership Act (29 U.S.C. 1511); and
       (D) the distance traveled by individuals to receive 
     services;
       (2) may merge existing service delivery areas; and
       (3) may not approve a total number of unified service 
     delivery areas that is greater than the total number of 
     service delivery areas in existence in the State on the date 
     of enactment of this Act.

     SEC. 218. FINANCIAL AND MANAGEMENT INFORMATION SYSTEMS.

       (a) In General.--Each State shall use a portion of the 
     funds it receives under section 203(a) to design a unified 
     financial and management information system. Each State that 
     receives an implementation grant under section 203(b) shall 
     require that all programs designated in the integrated system 
     use the unified financial and management information system.
       (b) Requirements.--Each unified financial and management 
     information system shall--
       (1) notwithstanding any other provision of Federal law, 
     supplant federally required fiscal reporting and monitoring 
     for each individual program included in the integrated 
     system;
       (2) be used by all agencies involved in workforce 
     development activities, including one-stop career centers 
     which shall have the capability to track the overall public 
     investments within the State and unified service delivery 
     areas, and to inform policymakers as to the results being 
     achieved through that investment;
       (3) contain a common structure of financial reporting 
     requirements, fiscal systems, and monitoring for all 
     workforce development expenditures included in the integrated 
     system that shall utilize the common data elements and 
     definitions included in subsection (b) of section 204; and
       (4) support local efforts to establish unified service 
     systems, including intake and eligibility determination for 
     all financial aid sources.

     SEC. 219. CAPACITY BUILDING GRANTS.

       From funds made available to a State for implementation 
     pursuant to section 203(b) or development pursuant to section 
     203(a), the State shall develop a strategy to enhance the 
     capacity of the institutions, organizations, and staff 
     involved in State and local workforce development activities 
     by providing services such as--
       (1) training for members of the local workforce development 
     boards;
       (2) training for front-line staff of any local education or 
     training service provider or one-stop career center;
       (3) technical assistance regarding managing systemic 
     change;
       (4) customer service training;
       (5) organization of peer-to-peer network for training, 
     technical assistance, and information sharing;
       (6) organizing a best practices database covering the 
     various workforce development system components; and
       (7) training for State and local staff on the principles of 
     quality management and decentralizing decisionmaking.
     [[Page S666]]
     
     SEC. 220. PERFORMANCE STANDARDS FOR UNIFIED SERVICE DELIVERY 
                   AREAS.

       (a) In General.--The Governor of each State that implements 
     an integrated workforce development system under section 
     203(b) may, in consultation with the State Council, the local 
     workforce development boards in the State, and employees of 
     any of the job training programs included in the integrated 
     system or the employee organizations of such employees, make 
     adjustments to existing performance standards for programs in 
     such system in the unified service delivery area of the 
     State.
       (b) Criteria.--Criteria developed pursuant to subsection 
     (a) may include such factors as--
       (1) placement, retention, and earnings of participants in 
     unsubsidized employment, including--
       (A) earnings at 1, 2, and 4 quarters after termination from 
     the program; and
       (B) comparability of wages 1 year after termination from 
     the program with wages prior to participation in the program;
       (2) acquisition of skills pursuant to a skill standards and 
     skill certification system endorsed by the National Skill 
     Standards Board established pursuant to section 503 of the 
     National Skill Standards Act of 1994;
       (3) the satisfaction of participants and employers with 
     services provided and employment outcomes; and
       (4) the quality of services provided and the level of 
     services provided to hard-to-serve populations, such as low-
     income individuals and older workers.
       (c) Adjustments.--Each Governor of a State that implements 
     an integrated workforce development system under section 
     203(b) shall, within parameters established by the National 
     Board, and after consultation with the workforce development 
     boards in the State, prescribe adjustments to the performance 
     criteria prescribed under subsections (a) and (b) for the 
     unified service delivery areas based on--
       (1) specific economic, geographic, and demographic factors 
     in the State and in regions within the State; and
       (2) the characteristics of the population to be served, 
     including the demonstrated difficulties in serving special 
     populations.
       (d) Use of Criteria.--The performance criteria developed 
     pursuant to this section shall be utilized in lieu of similar 
     criteria for programs receiving Federal funding included in 
     the integrated system of the State, to the extent determined 
     by the State Council subject to the approval of the National 
     Board.
                   Subtitle C--Local Level Activities

     SEC. 231. WORKFORCE DEVELOPMENT BOARDS.

       (a) Establishment.--In each State receiving an 
     implementation grant under section 203(b), and subject to 
     subsection (b) of this section, the local elected officials 
     of each unified service delivery area shall establish a 
     workforce development board to administer the workforce 
     development assistance provided by all the programs in the 
     integrated workforce development system in such area.
       (b) Exception.--States with a single unified delivery area 
     with contiguous borders shall not be subject to the 
     requirement of subsection (a).
       (c) Membership.--
       (1) In general.--Each workforce development board shall be 
     comprised of--
       (A) representatives of business and industry, who shall 
     constitute a majority of the board and who shall be business 
     leaders in the unified service delivery area;
       (B)(i) representatives of State and local organized labor 
     organizations, who shall be selected from among individuals 
     nominated by recognized State labor federations; and
       (ii) representatives of community-based organizations, who 
     shall be selected from among those individuals nominated by 
     officers of such organizations;
       (C) representatives of educational institutions;
       (D) community leaders, such as leaders of--
       (i) economic development agencies;
       (ii) human service agencies and institutions;
       (iii) veterans organizations; and
       (iv) entities providing job training;
       (E) representatives of nongovernmental organizations that 
     have a history of successfully protecting the rights of 
     individuals with disabilities or older persons; and
       (F) a local elected official, who shall be a nonvoting 
     member.
       (2) Special rule.--The representatives described in 
     paragraph (1)(B) shall comprise not less than 33 percent of 
     the membership of the Board.
       (d) Nominations.--
       (1) Business and industry representatives.--
       (A) In general.--The representatives of business and 
     industry under paragraph (1) of subsection (c) shall be 
     selected by local elected officials from among individuals 
     nominated by general purpose business organizations after 
     consultation with, and receiving recommendations from, other 
     business organizations in the unified service delivery area.
       (B) Definition.--For purposes of this paragraph, the term 
     ``general purpose business organization'' means an 
     organization that admits to membership any for-profit 
     business operating within the unified service delivery area.
       (2) Labor representatives.--The representatives of 
     organized labor under subsection (c)(1)(B)(i) shall be 
     selected from among individuals recommended by recognized 
     State and local labor federations.
       (3) Other members.--The members of the workforce 
     development board described in subparagraphs (A), (D), and 
     (E) of subsection (c)(1) shall be selected by chief local 
     elected officials in accordance with subsection (e) from 
     individuals recommended by interested organizations.
       (4) Expertise.--The State Council and Governor of each 
     State shall ensure that the workforce development board and 
     the staff of the State Council have sufficient expertise to 
     effectively carry out the duties and functions of existing 
     local boards described under the laws relating to the 
     applicable program.
       (e) Appointment Process.--In the case of a unified service 
     delivery area--
       (1) in which there is one unit of general local government, 
     the chief elected official of such unit shall determine the 
     number of members to serve on the workforce development board 
     and appoint the members to such board from the individuals 
     nominated or recommended under subsection (d); and
       (2) in which there are 2 or more units of general local 
     government, the chief elected officials of such units shall 
     determine the number of members to serve on the workforce 
     development board and appoint the members to such board from 
     the individuals nominated or recommended under subsection 
     (d), in accordance with an agreement entered into by such 
     units of general local government or, in the absence of such 
     an agreement, by the Governor of the State in which the 
     unified service delivery area is located.
       (f) Terms.--Each workforce development board shall 
     establish, in its bylaws, terms to be served by its members, 
     who may serve until the successors of such members are 
     appointed.
       (g) Vacancies.--Any vacancy on a workforce development 
     board shall be filled in the same manner as the original 
     appointment was made.
       (h) Removal for Cause.--Any member of a workforce 
     development board may be removed for cause in accordance with 
     procedures established by the workforce development board.
       (i) Chairperson.--Each workforce development board shall 
     select a chairperson, by a majority vote of the members of 
     the board, from among the members of the workforce 
     development board who are from business or industry. The term 
     of the chairperson shall be determined by the board.
       (j) Duties.--Each workforce development board--
       (1) shall--
       (A) prepare a workforce development board policy blueprint 
     in accordance with section 232;
       (B) issue an annual unified service delivery area report 
     card in accordance with section 233;
       (C) review and comment on the local plans for all programs 
     included in the integrated workforce development system of 
     the State and operating within the unified service delivery 
     area, prior to the submission of such plans to the 
     appropriate State Council, or the relevant Federal agency, if 
     no State approval is required;
       (D) oversee the operations of the one-stop career center 
     established in the unified service delivery area under 
     section 234, including the responsibility to--
       (i) designate one-stop career center operators within the 
     unified service delivery area consistent with selection 
     criteria specified in section 214(a)(11);
       (ii) develop and approve the budgets and annual operating 
     plans of the one-stop career centers;
       (iii) establish annual performance standards, customer 
     service quality criteria, and outcome measures for the one-
     stop career centers, consistent with measures developed 
     pursuant to sections 220;
       (iv) assess the results of programs and services;
       (v) ensure that services and skills provided through the 
     centers are of high quality and are relevant to labor market 
     demands; and
       (vi) determine priorities for client services from Federal 
     funding sources in the system;
       (E) develop a strategy to disseminate consumer reports 
     produced under section 215 to workers, jobseekers, and 
     employers, and other individuals in the unified service 
     delivery area; and
       (2) may apply to the Secretary for a matching grant 
     pursuant to section 404 in the amount of 50 percent of the 
     cost of establishing innovative models of workplace training 
     and upgrading of incumbent workers.
       (k) Administration.--
       (1) In general.--Each local workforce development board 
     shall have the authority to receive and disburse funds made 
     available for carrying out the provisions of this Act and 
     shall employ its own staff, independent of local programs and 
     service providers.
       (2) Funding.--Each workforce development board shall 
     receive a portion of its funding from the implementation 
     grant of the State, with additional funds made available from 
     participating programs.
       (l) Conflict of Interest.--No member of a workforce 
     development board shall cast a vote on the provision of 
     services by that member (or any organization which that 
     member directly represents) or vote on any matter that would 
     provide direct financial benefit to such member.

     SEC. 232. WORKFORCE DEVELOPMENT BOARD POLICY BLUEPRINT.

       (a) In General.--Each workforce development board shall 
     prepare and submit to the [[Page S667]] State Council a 
     biennial report, to be known as the workforce development 
     board policy blueprint, except that in States with a single 
     unified service delivery area, the additional elements 
     required in the regional blueprint shall be incorporated into 
     the State Blueprint.
       (b) Requirements.--The workforce development board policy 
     blueprint shall--
       (1) include a list of the key industries and industry 
     clusters of small- to mid-size firms that are most critical 
     to the current and future economic competitiveness of unified 
     service delivery area;
       (2) identify the workforce development needs of the 
     critical industries and industry clusters;
       (3) summarize the capacity of local education and training 
     providers to respond to the workforce development needs;
       (4) indicate how the local workforce development programs 
     intend to strategically deploy resources available from 
     implementation grants and existing programs operating in the 
     unified service delivery area to better meet the workforce 
     development needs of critical industries and industry 
     clusters in the unified service delivery area and enhance 
     program performance;
       (5) include a plan to develop one-stop career centers, as 
     described in section 234, including an estimate of the costs 
     in personnel and other resources to develop a network 
     adequate to provide universal access to such centers in the 
     local labor market;
       (6) describe how services will be maintained to all groups 
     served by the participating programs in accordance with their 
     legislative intent, including hard-to-serve populations;
       (7) identify actions for building the capacity of the 
     workforce development system in the unified service delivery 
     area; and
       (8) report on the level and recent changes in earned income 
     of workers in the local labor market, in relation to State 
     and national levels, by occupation and industry.
       (c) Use in Other Reports.--The workforce development board 
     policy blueprint may be utilized in lieu of local planning 
     reports required by any other Federal law for any program 
     included in the integrated workforce development system, 
     subject to the approval of the State Council.

     SEC. 233. REPORT CARD.

       (a) In General.--Each workforce development board shall 
     annually prepare and submit to the State Council a unified 
     service delivery area report card in accordance with this 
     section. The report card shall describe the performance of 
     all workforce development programs and service providers, 
     including the one-stop career centers, operating in the area 
     that is included in the integrated workforce development 
     system. In States with a single unified service delivery 
     area, the State Council shall prepare the report card.
       (b) Requirements.--The report card shall--
       (1) report on the relationship between services provided 
     and the local labor market needs as described in the 
     workforce development board policy blueprint;
       (2) using the quality assurance system information 
     established pursuant to section 215, include an analysis of 
     employment-related, and other outcomes achieved by the 
     programs and service providers operating in the area;
       (3) identity the performance of the one-stop career 
     centers;
       (4) detail the economic and demographic characteristics of 
     individuals served compared to the characteristics of the 
     general population of the unified service delivery area, and 
     the jobseekers, workers, and businesses of such area; and
       (5) assess the level of services to hard-to-serve 
     populations in relation to the number served and the outcomes 
     for those during the preceding 3 years.

     SEC. 234. ONE-STOP CAREER CENTERS.

       (a) Establishment.--Each workforce development board 
     receiving funds under an implementation grant awarded under 
     section 203(b) shall develop and implement a network of one-
     stop career centers in the unified service delivery area of 
     the workforce development board. The one-stop career centers 
     shall provide jobseekers, workers, and businesses universal 
     access to a comprehensive array of quality employment, 
     education, and training services.
       (b) Procedures.--Each workforce development board shall, in 
     conjunction with local elected official or officials in the 
     unified service delivery area, and consistent with criteria 
     specified in section 214(a)(11), select a method for 
     establishing one-stop career centers.
       (c) Eligible Entities.--Each entity within the unified 
     service delivery area that performs the functions specified 
     in subsections (e) and (f) for any of the programs in the 
     integrated workforce development system shall be eligible to 
     be selected as a one-stop career center.
       (d) Period of Selection.--Each one-stop career center 
     operator shall be designated for two-year periods. Every 2 
     years, one-stop career center designations shall be 
     reevaluated by the workforce development board based on 
     performance indicated in the unified service delivery area 
     report card and other criteria established by the workforce 
     development board and the State Council.
       (e) Brokerage Services to Individuals.--Each one-stop 
     career center shall make available to the public, at no 
     cost--
       (1) outreach to make individuals aware of, and encourage 
     the use of, services available from workforce development 
     programs operating in the unified service delivery area;
       (2) intake and orientation to the information and services 
     available through the one-stop career center;
       (3) preliminary assessments of the skill levels (including 
     appropriate testing) and service needs of individuals, 
     including--
       (A) basic skills;
       (B) occupational skills;
       (C) prior work experience;
       (D) employability;
       (E) interests;
       (F) aptitude; and
       (G) supportive service needs;
       (4) job search assistance, including resume and interview 
     preparation and workshops;
       (5) information relating to the supply, demand, price, and 
     quality of job training services available in each unified 
     service delivery area in the State pursuant to section 
     501(c);
       (6) information relating to eligibility requirements and 
     sources of financial assistance for entering the programs 
     described in 501(c)(2)(C); and
       (7) referral to appropriate job training, employment, and 
     employment-related education or support services in the 
     unified service delivery area.
       (f) Brokerage Services to Employers.--Each one-stop career 
     center shall provide to each requesting employer--
       (1) information relating to supply, demand, price, and 
     quality of job training services available in each unified 
     service delivery area in the State, consistent with the 
     consumer reports described in section 215;
       (2) customized screening and referral of individuals for 
     employment;
       (3) customized assessment of skills of the current workers 
     of the employer;
       (4) an analysis of the skill needs of the employer; and
       (5) other specialized employment and training services.
       (g) Conflicts.--Any entity that performs one-stop career 
     center functions shall be prohibited from making an education 
     and training referral to itself.
       (h) Fees.--
       (1) In general.--Except as provided in paragraph (2), each 
     one-stop career center may charge fees for the services 
     described in subsection (f), subject to approval by the 
     workforce development board.
       (2) Limitation.--No fee may be charged for any service that 
     an individual would be eligible to receive at no cost under a 
     participating program.
       (3) Income.--Income received by a one-stop career center 
     from the fees collected shall be used by the workforce 
     development board to expand or enhance one-stop career 
     centers available within the unified service delivery area.
       (i) Core Data Elements and Common Definitions.--Each one-
     stop career center shall adopt the core data elements and 
     common definitions as specified section 204(b), and updated 
     by the National Board.
       (j) Operating Agreements.--
       (1) In general.--Each one-stop career center operator shall 
     enter into a written agreement with the workforce development 
     board concerning the operation of the center.
       (2) Approval.--The agreement shall--
       (A) be subject to the approval of--
       (i) the local chief elected official or officials;
       (ii) the State Council; and
       (iii) the Governor of the State in which the center is 
     located; and
       (B) shall address--
       (i) the services to be provided;
       (ii) the role that local officials of the United States 
     Employment Service will play in the operation of one stop 
     career centers in the unified service delivery area;
       (iii) the financial and nonfinancial contributions to be 
     made to the centers from funds made available pursuant to 
     section 203(b) and all participating workforce development 
     programs;
       (iv) methods of administration;
       (v) procedures to be used to ensure compliance with 
     statutory requirements of the programs in the integrated 
     workforce development system; and
       (vi) other elements, as required by the workforce 
     development board or the State Council under section 214(a).

     SEC. 235. CAPACITY BUILDING.

       (a) In General.--Each workforce development board shall 
     identify actions to be taken for building the capacity of the 
     workforce development system in such unified service 
     delivery, except that in States with a single unified 
     delivery area, the State Council shall be responsible for 
     carrying out the activities under this section.
       (b) Funding.--The State Council shall make funds available 
     to each workforce development board for capacity building 
     activities from funds made available under section 203(b) and 
     any other funds within the integrated workforce development 
     budget of the State. For the activities described in 
     subsection (c), the workforce development board may also 
     submit requests to the State Council to redirect a portion of 
     training and technical assistance resources available from 
     any of the workforce development programs included in the 
     integrated system within the unified service development area 
     of the workforce development board.
       (c) Types of Activities.--Capacity building activities may 
     include--
       (1) training of workforce development board members;
       (2) staff training; [[Page S668]] 
       (3) technical assistance regarding managing systemic 
     change;
       (4) customer service training;
       (5) organization of peer-to-peer network for training, 
     technical assistance, and information sharing;
       (6) organizing a best practices database covering the 
     various system activities; and
       (7) training for local staff on the principles of quality 
     management and decentralized decisionmaking.
    TITLE III--ENHANCING INDIVIDUAL CHOICE THROUGH TRAINING ACCOUNTS

     SEC. 301. PURPOSE.

       It is the purpose of this title to promote the 
     establishment of a market-driven system for the provision of 
     services that will enhance the quality and range of choices 
     available to individuals for obtaining appropriate education 
     and training.

     SEC. 302. ESTABLISHMENT.

       (a) In General.--Each State receiving an implementation 
     grant pursuant to section 203(b) shall establish a training 
     account system for the provision of education and training 
     that meets the requirements of this title.
       (b) Definition.--For purposes of this title, the term 
     ``education and training'' means the services described in 
     clauses (v) and (ix) of section 204(b)(1)(C) and such other 
     services as the Secretary, in consultation with the Secretary 
     of Education, the Secretary of Health and Human Services, and 
     the National Board, determines are appropriate.

     SEC. 303. PARTICIPATION OF WORKFORCE DEVELOPMENT PROGRAMS.

       (a) Dislocated Workers.--Notwithstanding the Job Training 
     Partnership Act, each State that receives an implementation 
     grant pursuant to section 203(b) shall use the funds made 
     available under title III of the Job Training Partnership Act 
     and the funds appropriated under section 3(a) to provide 
     education and training under title III of such Act only 
     through the training account system established pursuant to 
     this title. Notwithstanding section 315 of such Act, not less 
     than 60 percent of the funds available to the State under 
     such title III shall be used to carry out the training 
     account system.
       (b) Additional Programs.--Beginning 1 year or later after a 
     State has commenced administration of the training account 
     system described in subsection (a), the State may provide 
     education and training through the training account system to 
     adults eligible to participate in other workforce development 
     programs if--
       (1) the State--
       (A) identifies the additional workforce development 
     programs in the State blueprint developed pursuant to section 
     214(a) or in an amendment to such blueprint; and
       (B) describes how such programs will be integrated into 
     such system; and
       (2) not less than two-thirds of the voting members of the 
     National Workforce Development Board approves the inclusion 
     of the programs identified pursuant to paragraph (1) into the 
     training account system established in the State.

     SEC. 304. ADMINISTRATION.

       (a) Application To Establish Account.--
       (1) In general.--An individual who is eligible to receive 
     education and training under a workforce development program 
     participating in the training account system pursuant to this 
     title may apply to establish a training account only at a 
     one-stop career center established under section 234.
       (2) Duties of career centers.--The career center shall--
       (A) assist such individual in completing the application;
       (B) provide information relating to the operation of the 
     training account system; and
       (C) ensure that such individual is aware of consumer 
     information available in the center relating to providers of 
     education and training, local occupations in demand, and 
     other appropriate labor market factors.
       (b) Duration; Amount of Account.--
       (1) Duration.--Upon approval of an application submitted 
     pursuant to subsection (a), an individual may be provided a 
     training account for a maximum of 2 years within any 5-year 
     period.
       (2) Amount of account.--The total amount deposited into a 
     training account for an individual for any fiscal year shall 
     be equal to the greater of the maximum amount of a Pell grant 
     established--
       (1) pursuant to paragraphs (2)(A) and (3)(A) of section 
     401(b) of the Higher Education Act of 1965 for such year; or
       (2) by an appropriation Act for such year.
       (c) Use of Funds.--An account established under subsection 
     (b) may be used by an individual to pay for education and 
     training provided by a service provider meeting the 
     eligibility requirements described in section 305.
       (d) Administrative Procedures.--Not later than 180 days 
     after the date of enactment of this Act, the Secretary, in 
     consultation with the Secretary of Education, and the 
     Secretary of Health and Human Services shall issue 
     regulations applicable to the administration of a training 
     account under this title that, consistent with the other 
     provisions of this title, specify--
       (1) the application requirements relating to a training 
     account;
       (2) the method of payment to providers from a training 
     account, including appropriate payment schedules and 
     appropriate payment for education or training in which an 
     individual enrolled but did not complete;
       (3) the financial and management information systems to be 
     used to administer the training accounts;
       (4) the Federal, State, and local roles with respect to 
     oversight of the training account system and enforcement of 
     the requirements of this title;
       (5) the manner in which the costs of administering the 
     training account system will be determined and apportioned;
       (6) the performance-based information to be submitted by 
     eligible providers of education and training and procedures 
     for verifying the accuracy of such information; and
       (7) such other procedures or conditions the Secretary 
     determines are necessary to ensure the effective 
     implementation of the training account system.
       (e) Description of System in State Blueprint.--The State 
     blueprint developed pursuant to section 214(a) shall include 
     a description of how the State will administer the training 
     account system and will ensure compliance with the 
     requirements of this title.

     SEC. 305. ELIGIBILITY REQUIREMENTS FOR PROVIDERS OF EDUCATION 
                   AND TRAINING SERVICES.

       (a) Eligibility Requirements.--A provider of education and 
     training services shall be eligible to receive funds from a 
     training account under this title if such provider--
       (1) is either--
       (A) eligible to participate in programs under title IV of 
     the Higher Education Act of 1965; or
       (B) determined to be eligible under the procedures 
     described in subsection (b); and
       (2) uses the common definitions and performance-based 
     information described in section 204(b).
       (b) Alternative Eligibility Procedure.--
       (1) In general.--The Governor of each State receiving an 
     implementation grant pursuant to section 203(b) shall 
     establish an alternative eligibility procedure for providers 
     of education and training services in such State that desire 
     to receive funds from a training account under this title, 
     but are not eligible to participate in programs under title 
     IV of the Higher Education Act of 1965. Such procedure shall 
     establish minimum acceptable levels of performance for such 
     providers based on factors and guidelines developed by the 
     Secretary, after consultation with the Secretary of 
     Education. Such factors shall be comparable in rigor and 
     scope to those provisions of part H of such title of such Act 
     that are used to determine an institution of higher 
     education's eligibility to participate in programs under such 
     title as are appropriate to the type of provider seeking 
     eligibility under this subsection and the nature of the 
     education and training services to be provided.
       (2) Limitation.--Notwithstanding paragraph (1), if the 
     participation of an institution of higher education in any of 
     the programs under title IV of the Higher Education Act of 
     1965 is terminated, such institution shall not be eligible to 
     receive funds under this Act for a period of 2 years 
     beginning on the date of such termination.
       (c) Administration.--
       (1) State agency.--Upon the recommendation of the State 
     Council, the Governor of each State receiving an 
     implementation grant pursuant to section 203(b) shall 
     designate a State agency or agencies to collect, verify, and 
     disseminate the performance-based information submitted by 
     eligible providers.
       (2) Application.--A provider of education and training 
     services that desires to be eligible to receive funds under 
     this title shall submit to the State agency or agencies the 
     information required under paragraph (1) at such time and in 
     such form as such State agency or agencies may require.
       (3) List of eligible providers.--The State agency or 
     agencies shall compile a list of eligible providers, 
     accompanied by the performance-based information submitted, 
     and disseminate such list and information to the one-stop 
     career centers in the State.

     SEC. 306. EVALUATION AND RECOMMENDATIONS.

       The National Workforce Development Board shall evaluate the 
     administration and effectiveness of the training account 
     system in enhancing individual choice and promoting high-
     quality education and training and shall include the 
     evaluation, accompanied by recommendations, in the National 
     Report Card developed pursuant to section 202(c)(1) and the 
     joint resolution to the President and the Congress pursuant 
     to section 104(b).

     SEC. 307. REPORT RELATING TO INCOME SUPPORT.

       (a) Sense of Congress.--It is the sense of the Congress 
     that--
       (1) many dislocated workers and economically disadvantaged 
     adults are unable to enroll in long-term job training because 
     such workers and adults lack income support after 
     unemployment compensation is exhausted;
       (2) evidence suggests that long-term job training is among 
     the most effective adjustment service in assisting dislocated 
     workers and economically disadvantaged adults to obtain 
     employment and enhance wages; and
       (3) there is a need to identify options relating to how 
     income support may be provided to enable dislocated workers 
     and economically disadvantaged adults to participate in long-
     term job training.
       (b) Report.--Not later than 120 days after the date of 
     enactment of this Act, the Secretary of Labor shall submit to 
     the Congress a report that--
       (1) examines the need for income support to enable 
     dislocated workers and economically disadvantaged adults to 
     participate in long-term job training; [[Page S669]] 
       (2) identifies options relating to how income support can 
     be provided to such workers and adults; and
       (3) contains such recommendations as the Secretary of Labor 
     determines are appropriate.
                   TITLE IV--PRIVATE-PUBLIC LINKAGES

     SEC. 401. PURPOSE.

       The purpose of this title is to begin to more explicitly 
     link federally funded workforce development programs with 
     training practices and systems utilized by workers and firms 
     in the private sector.

     SEC. 402. INCENTIVES TO ENCOURAGE WORKER TRAINING.

       Not later than 180 days after the date of enactment of this 
     Act, the National Board shall make recommendations to the 
     appropriate committees of Congress and the President on what 
     measures can be taken, including changes in the tax codes--
       (1) to encourage employers and workers to invest in 
     training and skills upgrading;
       (2) to encourage employers to hire and train hard-to-serve 
     individuals; and
       (3) to provide income support to enable jobseekers and 
     workers to participate in long-term training programs.

     SEC. 403. LABOR DAY REPORT ON PRIVATE-PUBLIC TRAINING 
                   PRACTICES.

       Beginning on September 1, 1996, and in each succeeding year 
     thereafter, the National Board shall issue a report that--
       (1) analyzes how businesses in the United States are--
       (A) restructuring the workplace to provide continuous 
     learning for the employees of such businesses;
       (B) improving the skills and abilities of the front-line 
     workers of such businesses; and
       (C) integrating public workforce development programs into 
     private sector training systems;
       (2) highlights innovative approaches that other countries 
     are taking to encourage firms to invest in training the 
     front-line workers of such firms and to ensure that publicly 
     funded workforce development programs in such countries are 
     relevant to the training needs of workers and firms in the 
     private sector;
       (3) reports on the progress being made by the National 
     Skills Standards Board established pursuant to section 503 of 
     the National Skill Standards Act and the degree to which 
     publicly funded education and training providers throughout 
     the United States are incorporating industry-based skill 
     standards developed by the Board into program offerings of 
     such programs; and
       (4) makes recommendations to Congress and the President on 
     ways to improve linkages between federally funded industrial 
     modernization programs and federally funded workforce 
     development programs.

     SEC. 404. MATCHING GRANTS TO ENCOURAGE INCUMBENT WORKER 
                   TRAINING.

       (a) Purpose.--The purpose of this section is to establish a 
     program to award competitive matching grants to assist local 
     workforce development boards respond to the training needs of 
     front-line workers in the communities in which such boards 
     are located.
       (b) Application.--Each local workforce development board 
     seeking a grant under this section shall submit an 
     application to the State Council of the State in which such 
     board is located, at such time, in such manner, and 
     containing such information as the Secretary may prescribe. 
     Not later than 30 days after receiving an application, the 
     State Council shall review and forward the application, with 
     comments, to the National Board and the Secretary.
       (c) Selection of Grantees.--
       (1) In general.--The Secretary, with the advice of the 
     National Board, shall award a grant under this section only 
     if the Secretary determines, from the grant application, that 
     the grant will be used to maintain or enhance the competitive 
     position of local industries that are committed to making the 
     investments necessary to develop the skills of their workers.
       (2) Criteria.--In awarding grants under this section, the 
     Secretary shall take into account--
       (A) the policy priorities and training needs of local 
     industries identified in the local workforce development 
     policy blueprints;
       (B) whether there is a demonstrated need for skill 
     upgrading to maintain firm or industry competitiveness;
       (C) whether the application contains proposals for training 
     that will directly lead to increased earnings of front-line 
     workers;
       (D) whether the labor organizations representing such 
     front-line workers support the grant proposal;
       (E) initiatives by firms or firm partnerships to develop 
     high performance work organizations;
       (F) whether the grant proposal meets the training needs of 
     small- and medium-sized firms;
       (G) whether the grant proposal is focused on workers with 
     substantial firm or industry tenure; and
       (H) whether the proposed industry activities are integrated 
     with private sector activities under the School-to-Work 
     Opportunities Act of 1994.
       (d) Use of Funds.--Grants awarded under this section shall 
     be used for skill enhancement and training activities that 
     may include--
       (1) basic skills;
       (2) occupational skills;
       (3) statistical process control training;
       (4) total quality management techniques;
       (5) team building and problem solving skills; and
       (6) other training or activities that will result in the 
     increased likelihood of job retention, higher wages, or 
     increased firm competitiveness.
       (e) Funding.--
       (1) Cost share.--
       (A) Federal share.--A grant awarded under this section 
     shall be in an amount equal to 50 percent of the cost of 
     carrying out the grant proposal.
       (B) Local share.--As a condition to receiving Federal funds 
     under this section, local businesses, industry associations, 
     and worker organizations shall provide funding in an amount 
     equal to 50 percent of the cost of carrying out the grant 
     proposal.
       (2) Limitations.--
       (A) Use of funds.--Amounts awarded under this section shall 
     not be used to pay the wages of workers during the training 
     of such workers.
       (B) Additional funding.--Each recipient of funds under this 
     section shall certify that such funds shall supplement and 
     not supplant other public or private funds otherwise spent on 
     worker training.
          TITLE V--INTEGRATED LABOR MARKET INFORMATION SYSTEM

     SEC. 501. INTEGRATED LABOR MARKET INFORMATION.

       (a) Findings.--The Congress finds that accurate, timely, 
     and relevant data for the Nation, States, and localities are 
     required to achieve Federal domestic policy goals, such as--
       (1) economic growth and productivity through--
       (A) career planning and successful job training and job 
     searching by youth and adults; and
       (B) efficient hiring, effective worker training, and 
     appropriate location and organization of work by employers;
       (2) accountability, through planning and evaluation, in 
     workforce development and job placement programs funded by 
     the Federal Government or developed by other public or 
     private entities;
       (3) equity and efficiency in the allocation of Federal 
     funds; and
       (4) greater understanding of local labor market dynamics 
     through the support of research.
       (b) Purpose.--The purpose of this title is to provide for 
     the development, maintenance, and continuous improvement of a 
     nationwide integrated system for the collection, analysis, 
     and dissemination of labor market information.
       (c) System.--
       (1) Development.--The Secretary, in cooperation with the 
     National Board, the State Councils, where appropriate, and 
     the Governors, shall oversee and ensure the development, 
     maintenance, and continuous improvement of a nationwide 
     integrated system of labor market information that will--
       (A) promote comprehensive workforce development planning, 
     evaluation, and service integration;
       (B) meet and be responsive to the customer needs of 
     jobseekers, employers, and public officials at all government 
     levels who develop economic and social policy, allocate 
     funds, plan and implement workforce development systems, are 
     involved in career planning or exploration, and deliver 
     integrated services;
       (C) serve as the foundation for automated information 
     delivery systems that provide easy access to labor market, 
     occupational and career information; and
       (D) meet the Federal domestic policy goals specified in 
     section (a).
       (2) Information to be included.--The integrated system 
     described in paragraph (1) shall include statistical data 
     from survey and projection programs and data from 
     administrative reporting systems which, taken together, shall 
     enumerate, estimate, and project the supply of and demand for 
     labor at national, State, and local levels in a timely 
     manner, including data on--
       (A) labor market demand, such as--
       (i) profiles of occupations that describe job duties, 
     education, and training requirements, skills, wages, 
     benefits, working conditions, and the industrial distribution 
     of occupations;
       (ii) current and projected employment opportunities and 
     trends, by industry and occupation, including growth 
     projections by industry, and growth and replacement need 
     projections by occupation;
       (iii) job openings, job locations, hiring requirements, and 
     application procedures;
       (iv) profiles of industries and employers in the local 
     labor market describing the nature of the work performed, 
     employment skill and experience requirements, specific 
     occupations, wages, hours, and benefits, and hiring patterns;
       (v) industries, occupations, and geographic locations 
     facing significant change or dislocation; and
       (vi) information maintained in a longitudinal manner on the 
     quarterly earnings, establishment, industry affiliation, and 
     geographic location of employment for all individuals for 
     whom such information is collected by the States;
       (B) labor supply, such as--
       (i) educational attainment, training, skills, skill levels, 
     and occupations of the population;
       (ii) demographic, socioeconomic characteristics, and 
     current employment status of the [[Page S670]] population, 
     including self-employed, part-time, and seasonal workers;
       (iii) jobseekers, including their education and training, 
     skills, skill levels, employment experience, and employment 
     goals;
       (iv) the number of workers displaced by permanent layoffs 
     and plant closings by industry, occupation, and geographic 
     location; and
       (v) current and projected training completers who have 
     acquired specific occupational or work skills and 
     competencies; and
       (C) consumer information, which shall be current, 
     comprehensive, localized, automated, and in a form useful for 
     immediate employment, entry into training and education 
     programs, and career exploration, including--
       (i) job openings, locations, hiring requirements, 
     application procedures, and profiles of employers in the 
     local labor market describing the nature of the work 
     performed, employment requirements, wages, benefits, and 
     hiring patterns;
       (ii) jobseekers, including their education and training, 
     skills, skill levels, employment experience, and employment 
     goals;
       (iii) the labor market experiences, in terms of wages and 
     annual earnings, by industry and occupation, of workers in 
     local labor markets, by sex and racial or ethnic group, 
     including information on hard-to-serve populations;
       (iv) education courses, training programs, and job 
     placement programs, including information derived from 
     statistically based performance evaluations and their user 
     satisfaction ratings; and
       (v) eligibility for funding and other assistance in job 
     training, job search, income support, supportive services, 
     and other employment services.
       (3) Technical standards.--The integrated labor market 
     information system shall use common standards that will 
     include--
       (A) standard classification and coding systems for 
     industries, occupations, skills, programs, and courses;
       (B) nationally standardized definitions of terms consistent 
     with subsections (b), (c), and (d) of section 204 and with 
     paragraph (2);
       (C) a common system for designating geographic areas 
     consistent with the unified service delivery areas;
       (D) data standards and quality control mechanisms; and
       (E) common schedules for data collection and dissemination.
       (4) Availability of information.--Data generated by the 
     labor market information system including information on 
     quarterly employment and earnings, together with matched data 
     on individuals who have participated in a federally supported 
     job training activity, shall be made available to the 
     National Board for use in the preparation of the National 
     Report Card. Aggregate level information shall be made 
     available to consumers in automated information delivery 
     systems.
       (5) Dissemination, technical assistance, and research.--The 
     Secretary, in cooperation with the National Board, the 
     Governors, and State Councils, where appropriate, shall 
     oversee the development, maintenance, and continuous 
     improvement of--
       (A) dissemination mechanisms for data and analysis, 
     including mechanisms that may be standardized among the 
     States;
       (B) programs of technical assistance and staff development 
     for States and localities, including assistance in adopting 
     and utilizing automated systems and improving the access, 
     through electronic and other means, to labor market 
     information; and
       (C) programs of research and demonstration, on ways to 
     improve the products and processes authorized by this 
     section.

     SEC. 502. RESPONSIBILITIES OF THE NATIONAL BOARD.

       (a) In General.--The National Board shall plan, review, and 
     evaluate the Nation's integrated labor market information 
     system.
       (b) Duties.--The National Board shall--
       (1) be responsible for providing policy guidance;
       (2) evaluate the integrated labor market information system 
     and ensure the cooperation of participating agencies; and
       (3) recommend to the Secretary needed improvements in 
     Federal, State, and local information systems to support the 
     development of an integrated labor market information system.

     SEC. 503. RESPONSIBILITIES OF THE SECRETARY.

       (a) In General.--The Secretary shall manage the investment 
     in an integrated labor market information system by--
       (1) reviewing all requirements for labor market information 
     across all programs within the system;
       (2) developing a comprehensive annual budget, including 
     funds at the Federal level, funds allotted to States by 
     formula, and funds supplied to the States by contracts with 
     departmental entities;
       (3) administering grants allotted to States by formula;
       (4) negotiating and executing contracts with the States;
       (5) coordinating the activities of Federal workforce 
     development agencies responsible for collecting the 
     statistics and program administrative data that comprise the 
     integrated system and disseminating labor market information 
     at the National, State, regional, and local levels; and
       (6) ensuring that standards are designed to meet the 
     requirements of chapter 35 of title 44, United States Code, 
     and are coordinated and consistent with other appropriate 
     Federal standards established by the Bureau of Labor 
     Statistics and other statistical agencies.
       (b) Requirements.--In carrying out the duties of the 
     Secretary under this section, the Secretary shall--
       (1) in consultation with the States and the private sector, 
     define a common core set of labor market information data 
     elements as specified in section 501(c)(2) that will be 
     consistently available across States in an integrated labor 
     market information system; and
       (2) ensure that data is sufficiently timely and locally 
     detailed for use, including uses specified in subsections (b) 
     and (c)(2) of section 501.
       (c) Annual Plan.--
       (1) In general.--The Secretary shall annually prepare and 
     submit to the National Board for review, a plan for improving 
     the Nation's integrated labor market information system. The 
     Secretary shall also submit the plan, together with the 
     comments and recommendations of the National Board, to the 
     President and Congress.
       (2) Contents.--The plan shall describe the budgetary needs 
     of the labor market information system, and shall describe 
     the activities of such Federal agencies with respect to data 
     collection, analysis, and dissemination for each fiscal year 
     succeeding the fiscal year in which the plan is developed. 
     The plan shall--
       (A) establish goals for system development and improvement 
     based on information needs for achieving economic growth and 
     productivity, accountability, fund allocation equity, and an 
     understanding of labor market characteristics and dynamics;
       (B) specify the common core set of data that shall be 
     included in the integrated labor market information system;
       (C) describe the current spending on integrated labor 
     market information activities from all sources, assess the 
     adequacy of the funds and identify the specific budget needs 
     of the Federal and State workforce development agencies with 
     respect to implementing and improving an integrated labor 
     market information system and the activities of such agencies 
     with respect to data compilation, analysis, and dissemination 
     for each fiscal year in which the plan is developed;
       (D) develop a budget for an integrated labor market 
     information system that accounts for all funds in 
     subparagraph (C) and any new funds made available pursuant to 
     this Act, and describes the relative allotments to be made 
     for--
       (i) the operation of the cooperative statistical programs 
     under section 501(c)(2);
       (ii) ensuring that technical standards are met pursuant to 
     section 501(c)(3); and
       (iii) consumer information and analysis, matching data, 
     dissemination, technical assistance, and research under 
     paragraphs (2)(C), (4), and (5) of section 501(c);
       (E) describe the existing system, information needs, and 
     the development of new data programs, analytical techniques, 
     definitions and standards, dissemination mechanisms, 
     governance mechanisms, and funding processes to meet new 
     needs;
       (F) summarize the results of an annual review of the costs 
     to the States of meeting contract requirements for data 
     production, including a description of how the budget request 
     for an integrated labor market information system will cover 
     such costs;
       (G) describe how the State Councils will be reimbursed for 
     carrying out the duties for labor market information;
       (H) recommend methods to simplify and integrate automated 
     client intake and eligibility determination systems across 
     workforce development programs to permit easy determination 
     of eligibility for funding and other assistance in job 
     training, job search, income support, supportive services, 
     and other reemployment services; and
       (I) provide for the involvement of States in developing the 
     plan by holding formal consultations conducted in cooperation 
     with representatives of the Governor or State Council, where 
     appropriate, pursuant to a process established by the 
     National Board.
       (d) Assistance From Other Agencies.--The Secretary may 
     receive assistance from member and other Federal agencies 
     (such as the Bureau of Labor Statistics and the Employment 
     and Training Administration of the Department of Labor, the 
     Administration on Children and Families of the Department of 
     Health and Human Services, and the Office of Adult and 
     Vocational Education and the National Center for Education 
     Statistics of the Department of Education) to assist in the 
     collection, analysis, and dissemination of labor market 
     information, and in the provision of training and technical 
     assistance to users of information, including States, 
     employers, youth, and adults.

     SEC. 504. RESPONSIBILITIES OF GOVERNORS.

       (a) Designation of State Agency.--The Governor of each 
     State and the State Council, where appropriate, shall 
     designate one State agency to be the agency responsible for--
       (1) the management and oversight of a statewide 
     comprehensive integrated labor market information system; and
       (2) developing a State unified labor market information 
     budget on an annual basis.
       (b) Requirements.--As a condition of receiving Federal 
     financial assistance under this title, the Governor or State 
     Council, where appropriate, shall-- [[Page S671]] 
       (1) develop, maintain, and continuously improve a 
     comprehensive integrated labor market information system, 
     which shall--
       (A) include the data specified in section 501(c)(2);
       (B) be responsive to the needs of the State and the 
     localities of such State for planning and evaluative data, 
     including employment and economic analyses and projections, 
     and program outcome data on employment and earnings for the 
     quality assurance system under section 204; and
       (C) meet Federal standards under chapter 35 of title 44, 
     United States Code, and other appropriate Federal standards 
     established by the Bureau;
       (2) ensure the performance of contract and grant 
     responsibilities for data compilation, analysis, and 
     dissemination;
       (3) conduct such other data collection, analysis, and 
     dissemination activities as will ensure the availability of 
     comprehensive State and local labor market information;
       (4) coordinate the data collection, analysis, and 
     dissemination activities of other State and local agencies, 
     with particular attention to State education, economic 
     development, human services, and welfare agencies, to ensure 
     complementary and compatibility among data; and
       (5) cooperate with the National Board and the Secretary by 
     making available, as requested, data for the evaluation of 
     programs covered by the labor market information and the 
     quality assurance systems under section 204.
       (c) Noninterference With State Functions.--Nothing in this 
     Act shall limit the ability of the State agency designated 
     under this section to conduct additional data collection, 
     analysis, and dissemination activities with funds derived 
     from sources other than this Act.
                                                                    ____


                The Workforce Development Act--Overview

       The federal government currently spends billions each year 
     on a wide array of different job training programs. There is 
     widespread consensus that these programs are not collectively 
     doing a good enough job of preparing workers for high skill 
     jobs in an increasingly competitive world economy.
       This bill takes immediate action to streamline and reform 
     current job training programs. In addition, over the next 
     four years states will be encouraged to experiment with 
     creative new approaches to transform federally-funded job 
     training efforts from a collection of free standing 
     bureaucratically-driven programs into an integrated and 
     accountable market-driven workforce development system.
       After examining lessons learned from the experimentation 
     taking place in the states, Congress will act upon 
     recommendations to create a new system to help workers to 
     compete in the 21st century economy.


                 Title I Streamlining and Consolidation

       This title immediately repeals 15 duplicative or outmoded 
     programs and encourages states to compete for grants to set 
     up integrated workforce development system that will, over 
     time, include one-stop career centers and voucher programs 
     for a wide range of adult training programs.
       This title establishes an expedited wavier authority 
     process to allow states and communities to waive programmatic 
     requirements that may impede the ability of those that are 
     willing to embark on the challenge of building a more 
     integrated workforce development system.
       This title also establishes a clear timetable and process 
     for taking action on the lessons learned from the experiments 
     undertaken by the states. By June 1, 1999, a tripartite 
     National Board must submit a joint resolution to the 
     President and Congress containing recommendations for a new 
     public/private workforce development system suitable for the 
     needs of the 21st century. To ensure that Congress acts on 
     these recommendations, twenty separate programs with more 
     than $4 billion in funding will sunset September 30, 1999. 
     The National Board will itself be sunsetted after if issues 
     this joint resolution.


                  TITLE II MARKET BUILDING ACTIVITIES

       This title establishes a framework at the federal, state, 
     and local levels for key stakeholders to work cooperatively 
     to build the information, accountability, and brokerage 
     systems needed to transform currently federally funded job 
     training programs into a market-driven workforce development 
     system.
       At the federal level, new streamlined accountability, labor 
     market information and management systems will replace the 
     myriad of existing federal monitoring and compliance systems 
     currently utilized by separate categorical programs. All 
     states will receive grants to develop these new systems which 
     will, for the first time, give policy makers and individuals 
     a clear sense of how well each program is doing in preparing 
     and placing people in jobs. Each year the National Board will 
     issue a National Report Card documenting the performance of 
     the nation's workforce development system.
       States will be given the opportunity to compete for multi-
     year implementation grants to experiment with new approaches 
     to building a market-driven workforce development system. 
     States that receive these grants will create a new tripartite 
     State Workforce Development Council to replace the multiple 
     existing boards created by separate federal job training 
     programs. These Council's responsibilities will include 
     developing a strategic plan that identifies ways to integrate 
     existing job training, education and economic development 
     programs to meet the needs of critical industries in the 
     state; and developing a quality assurance system to provide 
     consumer reports on the supply, demand, price and quality of 
     job training services throughout the state.
       At the local level, private sector led boards will be 
     established to bring coherence to job training activities at 
     the labor market level. These boards will identify the 
     training needs of critical industries in their region, and 
     develop strategies to redeploy public and private training 
     resources to respond to these needs. These boards will also 
     be responsible for establishing a network of one-stop career 
     centers to provide local jobseekers, workers, and businesses 
     universal access to a comprehensive array of quality 
     employment services.


                 title iii  enhancing individual choice

       This title will promote the establishment of a market-
     driven workforce development system by establishing training 
     accounts that make vouchers available to individuals to allow 
     them to choose the education and training service most 
     appropriate for their own career advancement.
       States that receive implementation grants to establish 
     market-driven workforce development systems will initially 
     establish training accounts from which dislocated workers can 
     receive vouchers. States will also have the option, over 
     time, of converting additional training programs into a 
     voucher system, subject to the approval of the National 
     Board.


                   title iv  private-public linkages

       This title take steps to begin to explicitly link federally 
     funded workforce development programs with training practices 
     and systems utilized by workers and firms in the private 
     sector.
       These steps include: recommending changes in the tax codes 
     to encourage employers and workers to invest in training and 
     skills upgrading for both existing workers and hard-to-serve 
     individuals; analyzing how businesses and labor in the United 
     States are restructuring the workplace to provide continuous 
     learning for their employees; overseeing the degree to which 
     publicly funded education and training providers throughout 
     the United States are incorporating industry-based skill 
     standards into their program offerings; and making matching 
     grants available on a competitive basis to encourage firms to 
     develop innovative approaches to upgrade the skills of their 
     front-line workers.


                   title v  labor market information

       This title establishes a comprehensive labor market 
     information system to provide accurate, timely data to 
     improve the functioning of local labor markets. These new 
     information systems will allow job seekers, workers and firms 
     to determine where the growth industries are in their 
     communities, what skills jobs in these industries require, 
     and which local training providers are successfully meeting 
     the training needs of these industries.


                                funding

       This bill authorizes funding of $250 million in fiscal year 
     1996--$160 million for the market building activities 
     identified in Title II and the matching grants for incumbent 
     worker training in Title IV; and the remaining $90 million 
     for the development of the integrated labor market 
     information system described in Title V. The funds are not 
     new spending, but are cost savings realized from streamlining 
     activities undertaken in Title I.
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