[Congressional Record Volume 141, Number 156 (Tuesday, October 10, 1995)]
[Senate]
[Pages S14803-S14843]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   WORKFORCE DEVELOPMENT ACT OF 1995

  The PRESIDING OFFICER. Under the previous order, the Senate will now 
proceed to the consideration of S. 143, which the clerk will report.
  The assistant legislative clerk read as follows:

       A bill (S. 143) to consolidate Federal employment training 
     programs and create a new process and structure for funding 
     the programs, and for other purposes, which had been reported 
     from the Committee on Labor and Human Resources, with an 
     amendment to strike all after the enacting clause and 
     inserting in lieu thereof the following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Workforce 
     Development Act of 1995''.
       (b) Table of Contents.--The table of contents is as 
     follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Definitions.

          TITLE  I--STATEWIDE  WORKFORCE  DEVELOPMENT  SYSTEMS

                      Subtitle A--State Provisions

Sec. 101. Statewide workforce development systems established.
Sec. 102. State allotments.
Sec. 103. State apportionment by activity.
Sec. 104. State plans.
Sec. 105. State workforce development boards.
Sec. 106. Use of funds.

                      Subtitle B--Local Provisions

Sec. 111. Local apportionment by activity.
Sec. 112. Distribution for secondary school vocational education.
Sec. 113. Distribution for postsecondary and adult vocational 
              education.
Sec. 114. Distribution for adult education.
Sec. 115. Special rule for minimal allocation.
Sec. 116. Redistribution.
Sec. 117. Local application for workforce education activities.
Sec. 118. Local partnerships, agreements, and workforce development 
              boards.

               Subtitle C--Provisions for Other Entities

Sec. 121. Indian workforce development activities.
Sec. 122. Grants to outlying areas.

                     Subtitle D--General Provisions

Sec. 131. Accountability.
Sec. 132. Incentives and sanctions.
Sec. 133. Unemployment trust fund.
Sec. 134. Authorization of appropriations.
Sec. 135. Effective date.

                    TITLE II--TRANSITION PROVISIONS

Subtitle A--Transition Provisions Relating to Use of Federal Funds for 
                       State and Local Activities

Sec. 201. Waivers.

  Subtitle B--Transition Provisions Relating to Applications and Plans

Sec. 211. Interim State plans.
Sec. 212. Applications and plans under covered Acts.

 Subtitle C--Job Corps and Other Workforce Preparation Activities for 
                             At-Risk Youth

                Chapter 1--General Job Corps Provisions

Sec. 221. Purposes.
Sec. 222. Definitions.
Sec. 223. General authority.
Sec. 224. Individuals eligible for the Job Corps.
Sec. 225. Screening and selection of applicants.
Sec. 226. Enrollment and assignment.
Sec. 227. Job Corps centers.
Sec. 228. Program activities.
Sec. 229. Support.
Sec. 230. Operating plan.
Sec. 231. Standards of conduct.
Sec. 232. Community participation.
Sec. 233. Counseling and placement.
Sec. 234. Leases and sales of centers.
Sec. 235. Closure of Job Corps centers.
Sec. 236. Interim operating plans for Job Corps centers.
Sec. 237. Effective date.

  Chapter 2--Other Workforce Preparation Activities for At-risk Youth

Sec. 241. Workforce preparation activities for at-risk youth.

     Subtitle D--Interim Administration of School-to-Work Programs

Sec. 251. Administration of school-to-work programs.

     Subtitle E--Amendments Relating to Certain Authorizations of 
                             Appropriations

Sec. 261. Older American Community Service Employment Act.
Sec. 262. Carl D. Perkins Vocational and Applied Technology Education 
              Act.
Sec. 263. Adult Education Act.

                     TITLE III--NATIONAL ACTIVITIES

Sec. 301. Federal Partnership.

[[Page S 14804]]

Sec. 302. National assessment of vocational education programs.
Sec. 303. Labor market information.
Sec. 304. National Center for Research in Education and Workforce 
              Development.
Sec. 305. Transfers to Federal Partnership.
Sec. 306. Transfers to other Federal agencies and offices.
Sec. 307. Elimination of certain offices.

         TITLE IV--AMENDMENTS TO THE REHABILITATION ACT OF 1973

Sec. 401. References.
Sec. 402. Findings and purposes.
Sec. 403. Consolidated rehabilitation plan.
Sec. 404. Definitions.
Sec. 405. Administration.
Sec. 406. Reports.
Sec. 407. Evaluation.
Sec. 408. Declaration of policy.
Sec. 409. State plans.
Sec. 410. Individualized employment plans.
Sec. 411. Scope of vocational rehabilitation services.
Sec. 412. State Rehabilitation Advisory Council.
Sec. 413. Evaluation standards and performance indicators.
Sec. 414. Repeals.
Sec. 415. Effective date.

                        TITLE V--OTHER PROGRAMS

       Subtitle A--Amendments to Immigration and Nationality Act

Sec. 501. Prohibition on use of funds for certain employment 
              activities.

                      Subtitle B--Welfare Programs

Sec. 511. Welfare reform.

 TITLE VI--REPEALS OF EMPLOYMENT AND TRAINING AND VOCATIONAL AND ADULT 
                           EDUCATION PROGRAMS

Sec. 601. Repeals.
Sec. 602. Conforming amendments.

     SEC. 2. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds that--
       (1) increasing international competition, technological 
     advances, and structural changes in the United States economy 
     present new challenges to private businesses and public 
     policymakers in creating a skilled workforce with the ability 
     to adapt to change and technological progress;
       (2) despite more than 60 years of federally funded 
     employment training programs, the Federal Government has no 
     single, coherent policy guiding employment training efforts;
       (3) according to the General Accounting Office, there are 
     over 100 federally funded employment training programs, which 
     are administered by 15 different Federal agencies and cost 
     more than $20,000,000,000 annually;
       (4) many of the programs fail to collect enough performance 
     data to determine the relative effectiveness of each of the 
     programs or the effectiveness of the programs as a whole;
       (5) because of the fragmentation, duplication, and lack of 
     accountability that currently exist within and among Federal 
     employment training programs it is often difficult for 
     workers, jobseekers, and businesses to easily access the 
     services they need;
       (6) high quality, innovative vocational education programs 
     provide youth with skills and knowledge on which to build 
     successful careers and, in providing the skills and 
     knowledge, vocational education serves as the foundation of a 
     successful workforce development system;
       (7) in recent years, several States and communities have 
     begun to develop promising new initiatives such as--
       (A) school-to-work programs to better integrate youth 
     employment and education programs; and
       (B) one-stop systems to make workforce development 
     activities more accessible to workers, jobseekers, and 
     businesses; and
       (8) Federal, State, and local governments have failed to 
     adequately allow for private sector leadership in designing 
     workforce development activities that are responsive to local 
     labor market needs.
       (b) Purposes.--The purposes of this Act are--
       (1) to make the United States more competitive in the world 
     economy by eliminating the fragmentation in Federal 
     employment training efforts and creating coherent, integrated 
     statewide workforce development systems designed to develop 
     more fully the academic, occupational, and literacy skills of 
     all segments of the workforce;
       (2) to ensure that all segments of the workforce will 
     obtain the skills necessary to earn wages sufficient to 
     maintain the highest quality of living in the world; and
       (3) to promote the economic development of each State by 
     developing a skilled workforce that is responsive to the 
     labor market needs of the businesses of each State.

     SEC. 3. DEFINITIONS.

       As used in this Act:
       (1) Adult education.--
       (A) In general.--The term ``adult education'' means 
     services or instruction below the college level for adults 
     who--
       (i) lack sufficient education or literacy skills to enable 
     the adults to function effectively in society; or
       (ii) do not have a certificate of graduation from a school 
     providing secondary education (as determined under State law) 
     and who have not achieved an equivalent level of education.
       (B) Adult.--As used in subparagraph (A), the term ``adult'' 
     means an individual who is age 16 or older, or beyond the age 
     of compulsory school attendance under State law, and who is 
     not enrolled in secondary school.
       (2) Area vocational education school.--The term ``area 
     vocational education school'' means--
       (A) a specialized secondary school used exclusively or 
     principally for the provision of vocational education to 
     individuals who are available for study in preparation for 
     entering the labor market;
       (B) the department of a secondary school exclusively or 
     principally used for providing vocational education in not 
     fewer than 5 different occupational fields to individuals who 
     are available for study in preparation for entering the labor 
     market;
       (C) a technical institute or vocational school used 
     exclusively or principally for the provision of vocational 
     education to individuals who have completed or left secondary 
     school and who are available for study in preparation for 
     entering the labor market, if the institute or school admits 
     as regular students both individuals who have completed 
     secondary school and individuals who have left secondary 
     school; or
       (D) the department or division of a junior college, 
     community college, or university that provides vocational 
     education in not fewer than 5 different occupational fields 
     leading to immediate employment but not necessarily leading 
     to a baccalaureate degree, if the department or division 
     admits as regular students both individuals who have 
     completed secondary school and individuals who have left 
     secondary school.
       (3) At-risk youth.--The term ``at-risk youth'' means an 
     individual who--
       (A) is not less than age 15 and not more than age 24; and
       (B)(i) is determined under guidelines developed by the 
     Governing Board to be low-income, using the most recent 
     available data provided by the Bureau of the Census, prior to 
     the determination; or
       (ii) is a dependent of a family that is determined under 
     guidelines developed by the Governing Board to be low-income, 
     using such data.
       (4) Chief elected official.--The term ``chief elected 
     official'' means the chief elected officer of a unit of 
     general local government in a substate area.
       (5) Community-based organization.--The term ``community-
     based organization'' means a private nonprofit organization 
     of demonstrated effectiveness that is representative of a 
     community or a significant segment of a community and that 
     provides workforce development activities.
       (6) Covered activity.--The term ``covered activity'' means 
     an activity authorized to be carried out under a provision 
     described in section 601(b) (as such provision was in effect 
     on the day before the date of enactment of this Act).
       (7) Dislocated worker.--The term ``dislocated worker'' 
     means an individual who--
       (A) has been terminated from employment and is eligible for 
     unemployment compensation;
       (B) has received a notice of termination of employment as a 
     result of any permanent closure, or any layoff of 50 or more 
     people, at a plant, facility, or enterprise;
       (C) is long-term unemployed;
       (D) was self-employed (including a farmer and a rancher) 
     but is unemployed due to local economic conditions;
       (E) is a displaced homemaker; or
       (F) has become unemployed as a result of a Federal action 
     that limits the use of, or restricts access to, a marine 
     natural resource.
       (8) Displaced homemaker.--The term ``displaced homemaker'' 
     means an individual who was a full-time homemaker for a 
     substantial number of years, as determined under guidelines 
     developed by the Governing Board, and who no longer receives 
     financial support previously provided by a spouse or by 
     public assistance.
       (9) Economic development activities.--The term ``economic 
     development activities'' means the activities described in 
     section 106(e).
       (10) Educational service agency.--The term ``educational 
     service agency'' means a regional public multiservice agency 
     authorized by State statute to develop and manage a service 
     or program, and provide the service or program to a local 
     educational agency.
       (11) Elementary school; local educational agency; secondary 
     school.--The terms ``elementary school'', ``local educational 
     agency'' and ``secondary school'' have the meanings given the 
     terms in section 14101 of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 8801).
       (12) Federal partnership.--The term ``Federal Partnership'' 
     means the Workforce Development Partnership established in 
     section 301.
       (13) Flexible workforce activities.--The term ``flexible 
     workforce activities'' means the activities described in 
     section 106(d).
       (14) Governing board.--The term ``Governing Board'' means 
     the Governing Board of the Federal Partnership.
       (15) Individual with a disability.--
       (A) In general.--The term ``individual with a disability'' 
     means an individual with any disability (as defined in 
     section 3 of the Americans with Disabilities Act of 1990 (42 
     U.S.C. 12102)).
       (B) Individuals with disabilities.--The term ``individuals 
     with disabilities'' means more than 1 individual with a 
     disability.
       (16) Local entity.--The term ``local entity'' means a 
     public or private entity responsible for local workforce 
     development activities or workforce preparation activities 
     for at-risk youth.
       (17) Local partnership.--The term ``local partnership'' 
     means a partnership referred to in section 118(a).
       (18) Older worker.--The term ``older worker'' means an 
     individual who is age 55 or older and who is determined under 
     guidelines developed by the Governing Board to be low-income, 
     using the most recent available data provided by the Bureau 
     of the Census, prior to the determination.
       (19) Outlying area.--The term ``outlying area'' means the 
     United States Virgin Islands, Guam, American Samoa, the 
     Commonwealth of the Northern Mariana Islands, the Republic of 
     the Marshall Islands, the Federated States of Micronesia, and 
     the Republic of Palau. 

[[Page S 14805]]

       (20) Participant.--The term ``participant'' means an 
     individual participating in workforce development activities 
     or workforce preparation activities for at-risk youth, 
     provided through a statewide system.
       (21) Postsecondary educational institution.--The term 
     ``postsecondary educational institution'' means an 
     institution of higher education, as defined in section 481(a) 
     of the Higher Education Act of 1965 (20 U.S.C. 1088(a)), that 
     offers--
       (A) a 2-year program of instruction leading to an 
     associate's degree or a certificate of mastery; or
       (B) a 4-year program of instruction leading to a bachelor's 
     degree.
       (22) Rapid response assistance.--The term ``rapid response 
     assistance'' means workforce employment assistance provided 
     in the case of a permanent closure, or layoff of 50 or more 
     people, at a plant, facility, or enterprise, including the 
     establishment of on-site contact with employers and employee 
     representatives immediately after the State is notified of a 
     current or projected permanent closure, or layoff of 50 or 
     more people.
       (23) School-to-work activities.--The term ``school-to-work 
     activities'' means activities for youth that--
       (A) integrate school-based learning and work-based 
     learning;
       (B) integrate academic and occupational learning;
       (C) establish effective linkages between secondary 
     education and postsecondary education;
       (D) provide each youth participant with the opportunity to 
     complete a career major; and
       (E) provide assistance in the form of connecting activities 
     that link each youth participant with an employer in an 
     industry or occupation relating to the career major of the 
     youth participant.
       (24) State.--The term ``State'' means each of the several 
     States of the United States, the District of Columbia, and 
     the Commonwealth of Puerto Rico.
       (25) State benchmarks.--The term ``State benchmarks'', used 
     with respect to a State, means--
       (A) the quantifiable indicators established under section 
     131(c) and identified in the report submitted under section 
     131(a); and
       (B) such other quantifiable indicators of the statewide 
     progress of the State toward meeting the State goals as the 
     State may identify in the report submitted under section 
     131(a).
       (26) State educational agency.--The term ``State 
     educational agency'' means the State board of education or 
     other agency or officer primarily responsible for the State 
     supervision of public elementary or secondary schools, or, if 
     there is no such officer or agency, an officer or agency 
     designated by the chief Governor or by State law.
       (27) State goals.--The term ``State goals'', used with 
     respect to a State, means--
       (A) the goals specified in section 131(b); and
       (B) such other major goals of the statewide system of the 
     State as the State may identify in the report submitted under 
     section 131(a).
       (28) Statewide system.--The term ``statewide system'' means 
     a statewide workforce development system, referred to in 
     section 101, that is designed to integrate workforce 
     employment activities, workforce education activities, 
     flexible workforce activities, economic development 
     activities (in a State that is eligible to carry out such 
     activities), vocational rehabilitation program activities, 
     and workforce preparation activities for at-risk youth in the 
     State in order to enhance and develop more fully the 
     academic, occupational, and literacy skills of all segments 
     of the population of the State and assist participants in 
     obtaining meaningful unsubsidized employment.
       (29) Substate area.--The term ``substate area'' means a 
     geographic area designated by a Governor that reflects, to 
     the extent feasible, a local labor market in a State.
       (30) Tech-prep program.--The term ``tech-prep program'' 
     means a program of study that--
       (A) combines at least 2 years of secondary education (as 
     determined under State law) and 2 years of postsecondary 
     education in a nonduplicative sequence;
       (B) integrates academic and vocational instruction and 
     utilizes worksite learning where appropriate;
       (C) provides technical preparation in an area such as 
     engineering technology, applied science, a mechanical, 
     industrial, or practical art or trade, agriculture, a health 
     occupation, or business;
       (D) builds student competence in mathematics, science, 
     communications, and workplace skills, through applied 
     academics and integrated instruction in a coherent sequence 
     of courses;
       (E) leads to an associate degree or a certificate in a 
     specific career field; and
       (F) leads to placement in appropriate employment or further 
     education.
       (31) Vocational education.--The term ``vocational 
     education'' means organized educational programs that--
       (A) offer a sequence of courses that provide individuals 
     with the academic knowledge and skills the individuals need 
     to prepare for further education and careers in current or 
     emerging employment sectors; and
       (B) include competency-based applied learning that 
     contributes to the academic knowledge, higher-order reasoning 
     and problem-solving skills, work attitudes, general 
     employability skills, and occupational-specific skills, of an 
     individual.
       (32) Vocational rehabilitation program.--The term 
     ``vocational rehabilitation program'' means a program 
     assisted under title I of the Rehabilitation Act of 1973 (29 
     U.S.C. 720 et seq.).
       (33) Welfare assistance.--The term ``welfare assistance'' 
     means a Federal, State, or local government cash payment for 
     which eligibility is determined by need or by an income test.
       (34) Welfare recipient.--The term ``welfare recipient'' 
     means an individual who receives welfare assistance.
       (35) Workforce development activities.--The term 
     ``workforce development activities'' means workforce 
     education activities, workforce employment activities, 
     flexible workforce activities, and economic development 
     activities (within a State that is eligible to carry out such 
     activities).
       (36) Workforce education activities.--The term ``workforce 
     education activities'' means the activities described in 
     section 106(b).
       (37) Workforce employment activities.--The term ``workforce 
     employment activities'' means the activities described in 
     paragraphs (2) through (8) of section 106(a), including 
     activities described in section 106(a)(6) provided through a 
     voucher described in section 106(a)(9).
       (38) Workforce preparation activities for at-risk youth.--
     The term ``workforce preparation activities for at-risk 
     youth'' means the activities described in section 241(b), 
     carried out for at-risk youth.
         TITLE  I--STATEWIDE  WORK- FORCE  DEVELOPMENT  SYSTEMS
                      Subtitle A--State Provisions

     SEC. 101. STATEWIDE WORKFORCE DEVELOPMENT SYSTEMS 
                   ESTABLISHED.

       For program year 1998 and each subsequent program year, the 
     Governing Board shall make allotments under section 102 to 
     States to assist the States in paying for the cost of 
     establishing and carrying out activities through statewide 
     workforce development systems, in accordance with this title.

     SEC. 102. STATE ALLOTMENTS.

       (a) In General.--The Governing Board shall allot to each 
     State with a State plan approved under section 104 an amount 
     equal to the total of the amounts made available under 
     subparagraphs (A), (B), (C), and (D) of subsection (b)(2), 
     adjusted in accordance with subsection (c).
       (b) Allotments Based on Populations.--
       (1) Definitions.--As used in this subsection:
       (A) Adult recipient of aid to families with dependent 
     children.--The term ``adult recipient of aid to families with 
     dependent children'' means a recipient of aid to families 
     with dependent children under part A of title IV of the 
     Social Security Act (42 U.S.C. 601 et seq.) who is not a 
     dependent child (as defined in section 406(a) of such Act (42 
     U.S.C. 606(a))).
       (B) Individual in poverty.--The term ``individual in 
     poverty'' means an individual who--
       (i) is not less than age 18;
       (ii) is not more than age 64; and
       (iii) is a member of a family (of 1 or more members) with 
     an income at or below the poverty line.
       (C) Poverty line.--The term ``poverty line'' means the 
     poverty line (as defined by the Office of Management and 
     Budget, and revised annually in accordance with section 
     673(2) of the Community Services Block Grant Act (42 U.S.C. 
     9902(2)) applicable to a family of the size involved, using 
     the most recent available data provided by the Bureau of the 
     Census, prior to the program year for which the allotment is 
     made, and applying the definition of poverty used by the 
     Bureau of the Census in compiling the 1990 decennial census.
       (2) Calculation.--Except as provided in subsection (c), 
     from the amount reserved under section 134(b)(1), the 
     Governing Board--
       (A) using funds equal to 60 percent of such reserved 
     amount, shall make available to each State an amount that 
     bears the same relationship to such funds as the total number 
     of individuals who are not less than 15 and not more than 65 
     (as determined by the Governing Board using the most recent 
     available data provided by the Bureau of the Census, prior to 
     the program year for which the allotment is made) in the 
     State bears to the total number of such individuals in all 
     States;
       (B) using funds equal to 10 percent of such reserved 
     amount, shall make available to each State an amount that 
     bears the same relationship to such funds as the total number 
     of individuals in poverty in the State bears to the total 
     number of individuals in poverty in all States;
       (C) using funds equal to 10 percent of such reserved 
     amount, shall make available to each State an amount that 
     bears the same relationship to such funds as the average 
     number of unemployed individuals (as determined by the 
     Secretary of Labor for the most recent 24-month period for 
     which data are available, prior to the program year for which 
     the allotment is made) in the State bears to the average 
     number of unemployed individuals (as so determined) in all 
     States; and
       (D) using funds equal to 20 percent of such reserved 
     amount, shall make available to each State an amount that 
     bears the same relationship to such funds as the average 
     monthly number of adult recipients of aid to families with 
     dependent children (as determined by the Secretary of Health 
     and Human Services for the most recent 12-month period for 
     which data are available, prior to the program year for which 
     the allotment is made) in the State bears to the average 
     monthly number of adult recipients of aid to families with 
     dependent children (as so determined) in all States.
       (c) Adjustments.--
       (1) Definition.--As used in this subsection, the term 
     ``national average per capita payment'', used with respect to 
     a program year, means the amount obtained by dividing--
       (A) the total amount allotted to all States under this 
     section for the program year; by
       (B) the total number of individuals who are not less than 
     15 and not more than 65 (as determined by the Governing Board 
     using the most recent available data provided by the Bureau 
     of the Census, prior to the program year for which the 
     allotment is made) in all States.
       (2) Minimum allotment.--Except as provided in paragraph 
     (3), no State with a State plan approved under section 104 
     for a program year 

[[Page S 14806]]
     shall receive an allotment under this section for the program year in 
     an amount that is less than 0.5 percent of the amount 
     reserved under section 134(b)(1) for the program year.
       (3) Limitation.--No State that receives an increase in an 
     allotment under this section for a program year as a result 
     of the application of paragraph (2) shall receive an 
     allotment under this section for the program year in an 
     amount that is more than the product obtained by 
     multiplying--
       (A) the total number of individuals who are not less than 
     15 and not more than 65 (as determined by the Governing Board 
     using the most recent available data provided by the Bureau 
     of the Census, prior to the program year for which the 
     allotment is made) in the State; and
       (B) the product obtained by multiplying--
       (i) 1.3; and
       (ii) the national average per capita payment for the 
     program year.

     SEC. 103. STATE APPORTIONMENT BY ACTIVITY.

       (a) Activities.--From the sum of the funds made available 
     to a State through an allotment received under section 102 
     and the funds made available under section 901(c)(1)(A) of 
     the Social Security Act (42 U.S.C. 1101(c)(1)(A)) to carry 
     out this Act for a program year--
       (1) a portion equal to 25 percent of such sum (which 
     portion shall include the amount allotted to the State from 
     funds made available under section 901(c)(1)(A) of the Social 
     Security Act) shall be made available for workforce 
     employment activities;
       (2) a portion equal to 25 percent of such sum shall be made 
     available for workforce education activities; and
       (3) a portion (referred to in this Act as the ``flex 
     account'') equal to 50 percent of such sum shall be made 
     available for flexible workforce activities.
       (b) Recipients.--In making an allotment under section 102 
     to a State, the Governing Board shall make a payment--
       (1) to the Governor of the State for the portion described 
     in subsection (a)(1), and such part of the flex account as 
     the Governor may be eligible to receive, as determined under 
     the State plan of the State submitted under section 104; and
       (2) to the State educational agency of the State for the 
     portion described in subsection (a)(2), and such part of the 
     flex account as the State educational agency may be eligible 
     to receive, as determined under the State plan of the State 
     submitted under section 104.

     SEC. 104. STATE PLANS.

       (a) In General.--For a State to be eligible to receive an 
     allotment under section 102, the Governor of the State shall 
     submit to the Governing Board, and obtain approval of, a 
     single comprehensive State workforce development plan 
     (referred to in this section as a ``State plan''), outlining 
     a 3-year strategy for the statewide system of the State.
       (b) Parts.--
       (1) In general.--The State plan shall contain 3 parts.
       (2) Strategic plan and flexible workforce activities.--The 
     first part of the State plan shall describe a strategic plan 
     for the statewide system, including the flexible workforce 
     activities, and, if appropriate, economic development 
     activities, that are designed to meet the State goals and 
     reach the State benchmarks and are to be carried out with the 
     allotment. The Governor shall develop the first part of the 
     State plan, using procedures that are consistent with the 
     procedures described in subsection (d).
       (3) Workforce employment activities.--The second part of 
     the State plan shall describe the workforce employment 
     activities that are designed to meet the State goals and 
     reach the State benchmarks and are to be carried out with the 
     allotment. The Governor shall develop the second part of the 
     State plan.
       (4) Workforce education activities.--The third part of the 
     State plan shall describe the workforce education activities 
     that are designed to meet the State goals and reach the State 
     benchmarks and are to be carried out with the allotment. The 
     State educational agency of the State shall develop the third 
     part of the State plan.
       (c) Contents of the Plan.--The State plan shall include--
       (1) with respect to the strategic plan for the statewide 
     system--
       (A) information describing how the State will identify the 
     current and future workforce development needs of the 
     industry sectors most important to the economic 
     competitiveness of the State;
       (B) information describing how the State will identify the 
     current and future workforce development needs of all 
     segments of the population of the State;
       (C) information identifying the State goals and State 
     benchmarks and how the goals and benchmarks will make the 
     statewide system relevant and responsive to labor market and 
     education needs at the local level;
       (D) information describing how the State will coordinate 
     workforce development activities to meet the State goals and 
     reach the State benchmarks;
       (E) information describing the allocation within the State 
     of the funds made available through the flex account for the 
     State, and how the flexible workforce activities, including 
     school-to-work activities, to be carried out with such funds 
     will be carried out to meet the State goals and reach the 
     State benchmarks;
       (F) information identifying how the State will obtain the 
     active and continuous participation of business, industry, 
     and labor in the development and continuous improvement of 
     the statewide system;
       (G) information identifying how any funds that a State 
     receives under this title will be leveraged with other public 
     and private resources to maximize the effectiveness of such 
     resources for all workforce development activities, and 
     expand the participation of business, industry, labor, and 
     individuals in the statewide system;
       (H) information describing how the State will eliminate 
     duplication in the administration and delivery of services 
     under this Act;
       (I) information describing the process the State will use 
     to independently evaluate and continuously improve the 
     performance of the statewide system, on a yearly basis, 
     including the development of specific performance indicators 
     to measure progress toward meeting the State goals;
       (J) an assurance that the funds made available under this 
     title will supplement and not supplant other public funds 
     expended to provide workforce development activities;
       (K) information identifying the steps that the State will 
     take over the 3 years covered by the plan to establish common 
     data collection and reporting requirements for workforce 
     development activities and vocational rehabilitation program 
     activities;
       (L) with respect to economic development activities, 
     information--
       (i) describing the activities to be carried out with the 
     funds made available under this title;
       (ii) describing how the activities will lead directly to 
     increased earnings of nonmanagerial employees in the State; 
     and
       (iii) describing whether the labor organization, if any, 
     representing the nonmanagerial employees supports the 
     activities;
       (M) the description referred to in subsection (d)(1); and
       (N)(i) information demonstrating the support of individuals 
     and entities described in subsection (d)(1) for the plan; or
       (ii) in a case in which the Governor is unable to obtain 
     the support of such individuals and entities as provided in 
     subsection (d)(2), the comments referred to in subsection 
     (d)(2)(B),
       (2) with respect to workforce employment activities, 
     information--
       (A)(i) identifying and designating substate areas, 
     including urban and rural areas, to which funds received 
     through the allotment will be distributed, which areas shall, 
     to the extent feasible, reflect local labor market areas; or
       (ii) stating that the State will be treated as a substate 
     area for purposes of the application of this title, if the 
     State receives an increase in an allotment under section 102 
     for a program year as a result of the application of section 
     102(c)(2); and
       (B) describing the basic features of one-stop delivery of 
     core services described in section 106(a)(2) in the State, 
     including information regarding--
       (i) the strategy of the State for developing fully 
     operational one-stop delivery of core services described in 
     section 106(a)(2);
       (ii) the time frame for achieving the strategy;
       (iii) the estimated cost for achieving the strategy;
       (iv) the steps that the State will take over the 3 years 
     covered by the plan to provide individuals with access to 
     one-stop delivery of core services described in section 
     106(a)(2);
       (v) the steps that the State will take over the 3 years 
     covered by the plan to provide information through the one-
     stop delivery to individuals on the quality of workforce 
     employment activities, workforce education activities, and 
     vocational rehabilitation program activities, provided 
     through the statewide system;
       (vi) the steps that the State will take over the 3 years 
     covered by the plan to link services provided through the 
     one-stop delivery with services provided through State 
     welfare agencies; and
       (vii) in a case in which the State chooses to use vouchers 
     to deliver workforce employment activities, the steps that 
     the State will take over the 3 years covered by the plan to 
     comply with the requirements in section 106(a)(9) and the 
     information required in such section;
       (C) identifying performance indicators that relate to the 
     State goals, and to the State benchmarks, concerning 
     workforce employment activities;
       (D) describing the workforce employment activities to be 
     carried out with funds received through the allotment;
       (E) describing the steps that the State will take over the 
     3 years covered by the plan to establish a statewide 
     comprehensive labor market information system described in 
     section 303(c) that will be utilized by all the providers of 
     one-stop delivery of core services described in section 
     106(a)(2), providers of other workforce employment 
     activities, and providers of workforce education activities, 
     in the State;
       (F) describing the steps that the State will take over the 
     3 years covered by the plan to establish a job placement 
     accountability system described in section 131(d); and
       (G)(i) describing the steps that the State will take to 
     segregate the amount allotted to the State from funds made 
     available under section 901(c)(1)(A) of the Social Security 
     Act (42 U.S.C. 1101(c)(1)(A)) from the remainder of the 
     portion described in section 103(a)(1); and
       (ii) describing how the State will use the amount allotted 
     to the State from funds made available under such section 
     901(c)(1)(A) to carry out--
       (I) the required activities described in clauses (ii) 
     through (v) of section 106(a)(2)(B) and section 303; and
       (II) any permissive activities carried out by the State 
     that consist of--

       (aa) the evaluation of programs provided through the 
     statewide system of the State;
       (bb) the provision of services through the statewide system 
     for workers who have received notice of permanent or 
     impending layoff, or workers in occupations that are 
     experiencing limited demand due to technological change, the 
     impact of imports, or plant closures; or
       (cc) the administration of the work test for the State 
     unemployment compensation system and 

[[Page S 14807]]
     provision of job finding and placement services for unemployment 
     insurance claimants; and

       (3) with respect to workforce education activities, 
     information--
       (A) describing how funds received through the allotment 
     will be allocated among--
       (i) secondary school vocational education, or postsecondary 
     and adult vocational education, or both; and
       (ii) adult education;
       (B) identifying performance indicators that relate to the 
     State goals, and to the State benchmarks, concerning 
     workforce education activities;
       (C) describing the workforce education activities that will 
     be carried out with funds received through the allotment;
       (D) describing how the State will address the adult 
     education needs of the State;
       (E) describing how the State will disaggregate data 
     relating to at-risk youth in order to adequately measure the 
     progress of at-risk youth toward accomplishing the results 
     measured by the State goals, and the State benchmarks;
       (F) describing how the State will adequately address the 
     needs of both at-risk youth who are in school, and out-of-
     school youth, in alternative education programs that teach to 
     the same challenging academic, occupational, and skill 
     proficiencies as are provided for in-school youth;
       (G) describing how the workforce education activities 
     described in the State plan and the State allocation of funds 
     received through the allotment for such activities are an 
     integral part of comprehensive efforts of the State to 
     improve education for all students and adults;
       (H) describing how the State will annually evaluate the 
     effectiveness of the State plan with respect to workforce 
     education activities;
       (I) describing how the State will address the professional 
     development needs of the State with respect to workforce 
     education activities;
       (J) describing how the State will provide local educational 
     agencies in the State with technical assistance; and
       (K) describing how the State will assess the progress of 
     the State in implementing student performance measures.
       (d) Procedure for Development of Part of Plan Relating to 
     Strategic Plan.--
       (1) Description of development.--The part of the State plan 
     relating to the strategic plan shall include a description of 
     the manner in which--
       (A) the Governor;
       (B) the State educational agency;
       (C) representatives of business and industry, including 
     representatives of key industry sectors, and of small- and 
     medium-size and large employers, in the State;
       (D) representatives of labor and workers;
       (E) local elected officials from throughout the State;
       (F) the State agency officials responsible for vocational 
     education;
       (G) the State agency officials responsible for 
     postsecondary education;
       (H) the State agency officials responsible for adult 
     education;
       (I) the State agency officials responsible for vocational 
     rehabilitation;
       (J) such other State agency officials, including officials 
     responsible for economic development and employment, as the 
     Governor may designate;
       (K) representatives of elected officials of tribal 
     governments;
       (L) the representative of the Veterans' Employment Training 
     Service assigned to the State under section 4103 of title 38, 
     United States Code; and
       (M) other appropriate officials, including members of the 
     State workforce development board described in section 105, 
     if the State has established such a board;

     collaborated in the development of such part of the plan.
       (2) Failure to obtain support.--If, after a reasonable 
     effort, the Governor is unable to obtain the support of the 
     individuals and entities described in paragraph (1) for the 
     strategic plan the Governor shall--
       (A) provide such individuals and entities with copies of 
     the strategic plan;
       (B) allow such individuals and entities to submit to the 
     Governor, not later than the end of the 30-day period 
     beginning on the date on which the Governor provides such 
     individuals and entities with copies of such plan under 
     subparagraph (A), comments on such plan; and
       (C) include any such comments in such plan.
       (e) Approval.--The Governing Board shall approve a State 
     plan if the Governing Board--
       (1) determines that the plan contains the information 
     described in subsection (c);
       (2) determines that the State has prepared the plan in 
     accordance with the requirements of this section, including 
     the requirements relating to development of any part of the 
     plan; and
       (3) has negotiated State benchmarks with the State in 
     accordance with section 131(c).
       (f) No Entitlement to a Service.--Nothing in this Act shall 
     be construed to provide any individual with an entitlement to 
     a service provided under this Act.

     SEC. 105. STATE WORKFORCE DEVELOPMENT BOARDS.

       (a) Establishment.--A Governor of a State that receives an 
     allotment under section 102 may establish a State workforce 
     development board--
       (1) on which a majority of the members are representatives 
     of business and industry;
       (2) on which not less than 25 percent of the members shall 
     be representatives of labor, workers, and community-based 
     organizations;
       (3) that shall include representatives of veterans;
       (4) that shall include a representative of the State 
     educational agency and a representative from the State agency 
     responsible for vocational rehabilitation;
       (5) that may include any other individual or entity that 
     participates in the collaboration described in section 
     104(d)(1); and
       (6) that may include any other individual or entity the 
     Governor may designate.
       (b) Chairperson.--The State workforce development board 
     shall select a chairperson from among the members of the 
     board who are representatives of business and industry.
       (c) Functions.--The functions of the State workforce 
     development board shall include--
       (1) advising the Governor on the development of the 
     statewide system, the State plan described in section 104, 
     and the State goals and State benchmarks;
       (2) assisting in the development of specific performance 
     indicators to measure progress toward meeting the State goals 
     and reaching the State benchmarks and providing guidance on 
     how such progress may be improved;
       (3) serving as a link between business, industry, labor, 
     and the statewide system;
       (4) assisting the Governor in preparing the annual report 
     to the Governing Board regarding progress in reaching the 
     State benchmarks, as described in section 131(a);
       (5) receiving and commenting on the State plan developed 
     under section 101 of the Rehabilitation Act of 1973 (29 
     U.S.C. 721);
       (6) assisting the Governor in developing the statewide 
     comprehensive labor market information system described in 
     section 303(c) to provide information that will be utilized 
     by all the providers of one-stop delivery of core services 
     described in section 106(a)(2), providers of other workforce 
     employment activities, and providers of workforce education 
     activities, in the State; and
       (7) assisting in the monitoring and continuous improvement 
     of the performance of the statewide system, including 
     evaluation of the effectiveness of workforce development 
     activities funded under this Act.

     SEC. 106. USE OF FUNDS.

       (a) Workforce Employment Activities.--
       (1) In general.--Funds made available to a State under this 
     title to carry out workforce employment activities through a 
     statewide system--
       (A) shall be used to carry out the activities described in 
     paragraphs (2), (3), and (4); and
       (B) may be used to carry out the activities described in 
     paragraphs (5), (6), (7), and (8), including providing 
     activities described in paragraph (6) through vouchers 
     described in paragraph (9).
       (2) One-stop delivery of core services.--
       (A) Access.--The State shall use a portion of the funds 
     described in paragraph (1) to establish a means of providing 
     access to the statewide system through core services 
     described in subparagraph (B) available--
       (i) through multiple, connected access points, linked 
     electronically or otherwise;
       (ii) through a network that assures participants that such 
     core services will be available regardless of where the 
     participants initially enter the statewide system;
       (iii) at not less than 1 physical location in each substate 
     area of the State; or
       (iv) through some combination of the options described in 
     clauses (i), (ii), and (iii).
       (B) Core services.--The core services referred to in 
     subparagraph (A) shall, at a minimum, include--
       (i) outreach, intake, and orientation to the information 
     and other services available through one-stop delivery of 
     core services described in this subparagraph;
       (ii) initial assessment of skill levels, aptitudes, 
     abilities, and supportive service needs;
       (iii) job search and placement assistance and, where 
     appropriate, career counseling;
       (iv) customized screening and referral of qualified 
     applicants to employment;
       (v) provision of accurate information relating to local 
     labor market conditions, including employment profiles of 
     growth industries and occupations within a substate area, the 
     educational and skills requirements of jobs in the industries 
     and occupations, and the earnings potential of the jobs;
       (vi) provision of accurate information relating to the 
     quality and availability of other workforce employment 
     activities, workforce education activities, and vocational 
     rehabilitation program activities;
       (vii) provision of information regarding how the substate 
     area is performing on the State benchmarks;
       (viii) provision of initial eligibility information on 
     forms of public financial assistance that may be available in 
     order to enable persons to participate in workforce 
     employment activities, workforce education activities, or 
     vocational rehabilitation program activities; and
       (ix) referral to other appropriate workforce employment 
     activities, workforce education activities, and vocational 
     rehabilitation employment activities.
       (3) Labor market information system.--The State shall use a 
     portion of the funds described in paragraph (1) to establish 
     a statewide comprehensive labor market information system 
     described in section 303(c).
       (4) Job placement accountability system.--The State shall 
     use a portion of the funds described in paragraph (1) to 
     establish a job placement accountability system described in 
     section 131(d).
       (5) Permissible one-stop delivery activities.--The State 
     may provide, through one-stop delivery--
       (A) co-location of services related to workforce 
     development activities, such as unemployment insurance, 
     vocational rehabilitation program activities, welfare 
     assistance, veterans' employment services, or other public 
     assistance;
       (B) intensive services for participants who are unable to 
     obtain employment through the core services described in 
     paragraph (2)(B), as determined by the State; and
       (C) dissemination to employers of information on activities 
     carried out through the statewide system.

[[Page S 14808]]

       (6) Other permissible activities.--The State may use a 
     portion of the funds described in paragraph (1) to provide 
     services through the statewide system that may include--
       (A) on-the-job training;
       (B) occupational skills training;
       (C) entrepreneurial training;
       (D) training to develop work habits to help individuals 
     obtain and retain employment;
       (E) customized training conducted with a commitment by an 
     employer or group of employers to employ an individual after 
     successful completion of the training;
       (F) rapid response assistance for dislocated workers;
       (G) skill upgrading and retraining for persons not in the 
     workforce;
       (H) preemployment and work maturity skills training for 
     youth;
       (I) connecting activities that organize consortia of small- 
     and medium-size businesses to provide work-based learning 
     opportunities for youth participants in school-to-work 
     programs;
       (J) programs for adults that combine workplace training 
     with related instruction;
       (K) services to assist individuals in attaining 
     certificates of mastery with respect to industry-based skill 
     standards;
       (L) case management services;
       (M) supportive services, such as transportation and 
     financial assistance, that enable individuals to participate 
     in the statewide system; and
       (N) followup services for participants who are placed in 
     unsubsidized employment.
       (7) Staff development and training.--The State may use a 
     portion of the funds described in paragraph (1) for the 
     development and training of staff of providers of one-stop 
     delivery of core services described in paragraph (2), 
     including development and training relating to principles of 
     quality management.
       (8) Incentive grant awards.--The State may use a portion of 
     the funds described in paragraph (1) to award incentive 
     grants to substate areas that reach or exceed the State 
     benchmarks established under section 131(c), with an emphasis 
     on benchmarks established under section 131(c)(3). A substate 
     area that receives such a grant may use the funds made 
     available through the grant to carry out any workforce 
     development activities authorized under this Act.
       (9) Vouchers.--
       (A) In general.--A State may deliver some or all of the 
     workforce employment activities described in paragraph (6) 
     that are provided under this title through a system of 
     vouchers administered through the one-stop delivery of core 
     services described in paragraph (2) in the State.
       (B) Eligibility requirements.--
       (i) In general.--A State that chooses to deliver the 
     activities described in subparagraph (A) through vouchers 
     shall indicate in the State plan described in section 104 the 
     criteria that will be used to determine--

       (I) which workforce employment activities described in 
     paragraph (6) will be delivered through the voucher system;
       (II) eligibility requirements for participants to receive 
     the vouchers and the amount of funds that participants will 
     be able to access through the voucher system; and
       (III) which employment, training, and education providers 
     are eligible to receive payment through the vouchers.

       (ii) Considerations.--In establishing State criteria for 
     service providers eligible to receive payment through the 
     vouchers under clause (i)(III), the State shall take into 
     account industry-recognized skills standards promoted by the 
     National Skills Standards Board.
       (C) Accountability requirements.--A State that chooses to 
     deliver the activities described in paragraph (6) through 
     vouchers shall indicate in the State plan--
       (i) information concerning how the State will utilize the 
     statewide comprehensive labor market information system 
     described in section 303(c) and the job placement 
     accountability system established under section 131(d) to 
     provide timely and accurate information to participants about 
     the performance of eligible employment, training, and 
     education providers;
       (ii) other information about the performance of eligible 
     providers of services that the State believes is necessary 
     for participants receiving the vouchers to make informed 
     career choices; and
       (iii) the timeframe in which the information developed 
     under clauses (i) and (ii) will be widely available through 
     the one-stop delivery of core services described in paragraph 
     (2) in the State.
       (b) Workforce Education Activities.--The State educational 
     agency shall use the funds made available to the State 
     educational agency under this title for workforce education 
     activities to carry out, through the statewide system, 
     activities that include--
       (1) integrating academic and vocational education;
       (2) linking secondary education (as determined under State 
     law) and postsecondary education, including implementing 
     tech-prep programs;
       (3) providing career guidance and counseling for students 
     at the earliest possible age, including the provision of 
     career awareness, exploration, and guidance information to 
     students and their parents that is, to the extent possible, 
     in a language and form that the students and their parents 
     understand;
       (4) providing literacy and basic education services for 
     adults and out-of-school youth, including adults and out-of-
     school youth in correctional institutions;
       (5) providing programs for adults and out-of-school youth 
     to complete their secondary education;
       (6) expanding, improving, and modernizing quality 
     vocational education programs; and
       (7) improving access to quality vocational education 
     programs for at-risk youth.
       (c) Fiscal Requirements for Workforce Education 
     Activities.--
       (1) Supplement not supplant.--Funds made available under 
     this title for workforce education activities shall 
     supplement, and may not supplant, other public funds expended 
     to carry out workforce education activities.
       (2) Maintenance of effort.--
       (A) Determination.--No payments shall be made under this 
     title for any program year to a State for workforce education 
     activities unless the Governing Board determines that the 
     fiscal effort per student or the aggregate expenditures of 
     such State for workforce education for the program year 
     preceding the program year for which the determination is 
     made, equaled or exceeded such effort or expenditures for 
     workforce education for the second program year preceding the 
     fiscal year for which the determination is made.
       (B) Waiver.--The Governing Board may waive the requirements 
     of this section (with respect to not more than 5 percent of 
     expenditures by any State educational agency) for 1 program 
     year only, on making a determination that such waiver would 
     be equitable due to exceptional or uncontrollable 
     circumstances affecting the ability of the applicant to meet 
     such requirements, such as a natural disaster or an 
     unforeseen and precipitous decline in financial resources. No 
     level of funding permitted under such a waiver may be used as 
     the basis for computing the fiscal effort or aggregate 
     expenditures required under this section for years subsequent 
     to the year covered by such waiver. The fiscal effort or 
     aggregate expenditures for the subsequent years shall be 
     computed on the basis of the level of funding that would, but 
     for such waiver, have been required.
       (d) Flexible Workforce Activities.--
       (1) Core flexible workforce activities.--The State shall 
     use a portion of the funds made available to the State under 
     this title through the flex account to carry out school-to-
     work activities through the statewide system, except that any 
     State that received a grant under subtitle B of title II of 
     the School-to-Work Opportunities Act of 1994 (20 U.S.C. 6141 
     et seq.) shall use such portion to support the continued 
     development of the statewide School-to-Work Opportunities 
     system of the State through the continuation of activities 
     that are carried out in accordance with the terms of such 
     grant.
       (2) Permissible flexible workforce activities.--The State 
     may use a portion of the funds made available to the State 
     under this title through the flex account--
       (A) to carry out workforce employment activities through 
     the statewide system; and
       (B) to carry out workforce education activities through the 
     statewide system.
       (e) Economic Development Activities.--In the case of a 
     State that meets the requirements of section 118(c), the 
     State may use a portion of the funds made available to the 
     State under this title through the flex account to supplement 
     other funds provided by the State or private sector--
       (1) to provide customized assessments of the skills of 
     workers and an analysis of the skill needs of employers;
       (2) to assist consortia of small- and medium-size employers 
     in upgrading the skills of their workforces;
       (3) to provide productivity and quality improvement 
     training programs for the workforces of small- and medium-
     size employers;
       (4) to provide recognition and use of voluntary industry-
     developed skills standards by employers, schools, and 
     training institutions;
       (5) to carry out training activities in companies that are 
     developing modernization plans in conjunction with State 
     industrial extension service offices; and
       (6) to provide on-site, industry-specific training programs 
     supportive of industrial and economic development;
     through the statewide system.
       (f) Limitations.--
       (1) Wages.--No funds provided under this title shall be 
     used to pay the wages of incumbent workers during their 
     participation in economic development activities provided 
     through the statewide system.
       (2) Relocation.--No funds provided under this title shall 
     be used or proposed for use to encourage or induce the 
     relocation, of a business or part of a business, that results 
     in a loss of employment for any employee of such business at 
     the original location.
       (3) Training and assessments following relocation.--No 
     funds provided under this title shall be used for customized 
     or skill training, on-the-job training, or company specific 
     assessments of job applicants or workers, for any business or 
     part of a business, that has relocated, until 120 days after 
     the date on which such business commences operations at the 
     new location, if the relocation of such business or part of a 
     business, results in a loss of employment for any worker of 
     such business at the original location.
       (g) Limitations on Participants.--
       (1) Diploma or equivalent.--
       (A) In general.--No individual may participate in workforce 
     employment activities described in subparagraph (A), (B), 
     (C), (E), (G), (J), or (K) of section 106(a)(6) until the 
     individual has obtained a secondary school diploma or its 
     recognized equivalent, or is enrolled in a program or course 
     of study to obtain a secondary school diploma or its 
     recognized equivalent.
       (B) Exception.--Nothing in subparagraph (A) shall prevent 
     participation in workforce employment activities described 
     under subparagraph (A), (B), (C), (E), (G), (J), or (K) of 
     section 106(a)(6) by individuals who, after testing and in 
     the judgment of medical, psychiatric, academic, or other 
     appropriate professionals, lack the requisite capacity to 
     complete successfully a course of study that would lead to a 
     secondary school diploma or its recognized equivalent.

[[Page S 14809]]

       (2) Services.--
       (A) Referral.--If an individual who has not obtained a 
     secondary school diploma or its recognized equivalent applies 
     to participate in workforce employment activities described 
     under subparagraph (A), (B), (C), (E), (G), (J), or (K) of 
     section 106(a)(6), such individual shall be referred to State 
     approved adult education services that provide instruction 
     designed to help such individual obtain a secondary school 
     diploma or its recognized equivalent.
       (B) State provision of services.--Notwithstanding any other 
     provision of this Act, a State may use funds made available 
     under section 103(a)(1) to provide State approved adult 
     education services that provide instruction designed to help 
     individuals obtain a secondary school diploma or its 
     recognized equivalent, to individuals who--
       (i) are seeking to participate in workforce employment 
     activities described under subparagraph (A), (B), (C), (E), 
     (G), (J), or (K) of section 106(a)(6); and
       (ii) are otherwise unable to obtain such services.
                      Subtitle B--Local Provisions

     SEC. 111. LOCAL APPORTIONMENT BY ACTIVITY.

       (a) Workforce Employment Activities.--
       (1) In general.--The sum of the funds made available to a 
     State for any program year under paragraphs (1) and (3) of 
     section 103(a) for workforce employment activities shall be 
     made available to the Governor of such State for use in 
     accordance with paragraph (2).
       (2) Distribution.--Of the sum described in paragraph (1), 
     for a program year--
       (A) 25 percent shall be reserved by the Governor to carry 
     out workforce employment activities through the statewide 
     system; and
       (B) 75 percent shall be distributed by the Governor to 
     local entities to carry out workforce employment activities 
     through the statewide system, based on--
       (i) such factors as the relative distribution among 
     substate areas of individuals who are not less than 15 and 
     not more than 65, individuals in poverty, unemployed 
     individuals, and adult recipients of aid to families with 
     dependent children, as determined using the definitions 
     specified and the determinations described in section 102(b); 
     and
       (ii) such additional factors as the Governor (in 
     consultation with local partnerships described in section 
     118(a) or, where established, local workforce development 
     boards described in section 118(b)), determines to be 
     necessary.
       (b) Workforce Education Activities.--
       (1) In general.--The sum of the funds made available to a 
     State for any program year under paragraphs (2) and (3) of 
     section 103(a) for workforce education activities shall be 
     made available to the State educational agency serving such 
     State for use in accordance with paragraph (2).
       (2) Distribution.--Of the sum described in paragraph (1), 
     for a program year--
       (A) 20 percent shall be reserved by the State educational 
     agency to carry out statewide workforce education activities 
     through the statewide system, of which not more than 5 
     percent of such 20 percent may be used for administrative 
     expenses; and
       (B) 80 percent shall be distributed by the State 
     educational agency to entities eligible for financial 
     assistance under section 112, 113, or 114, to carry out 
     workforce education activities through the statewide system.
       (3) State determinations.--From the amount available to a 
     State educational agency under paragraph (2)(B) for a program 
     year, such agency shall determine the percentage of such 
     amount that will be distributed in accordance with sections 
     112, 113, and 114 for such year for workforce education 
     activities in such State in each of the following areas:
       (A) Secondary school vocational education, or postsecondary 
     and adult vocational education, or both; and
       (B) Adult education.
       (c) Special Rule.--Nothing in this title shall be construed 
     to prohibit any individual or agency in a State (other than 
     the State educational agency) that is administering workforce 
     education activities on the day preceding the date of 
     enactment of this Act from continuing to administer such 
     activities under this title.

     SEC. 112. DISTRIBUTION FOR SECONDARY SCHOOL VOCATIONAL 
                   EDUCATION.

       (a) Allocation.--Except as otherwise provided in this 
     section and section 115, each State educational agency shall 
     distribute the portion of the funds made available for any 
     program year (from funds made available for the corresponding 
     fiscal year, as determined under section 134(c)) by such 
     agency for secondary school vocational education under 
     section 111(b)(3)(A) to local educational agencies within the 
     State as follows:
       (1) Seventy percent.--From 70 percent of such portion, each 
     local educational agency shall be allocated an amount that 
     bears the same relationship to such 70 percent as the amount 
     such local educational agency was allocated under section 
     1124 of the Elementary and Secondary Education Act of 1965 
     (20 U.S.C. 6333) for the preceding fiscal year bears to the 
     total amount received under such section by all local 
     educational agencies in the State for such year.
       (2) Twenty percent.--From 20 percent of such portion, each 
     local educational agency shall be allocated an amount that 
     bears the same relationship to such 20 percent as the number 
     of students with disabilities who have individualized 
     education programs under section 614(a)(5) of the Individuals 
     with Disabilities Education Act (20 U.S.C. 1414(a)(5)) served 
     by such local educational agency for the preceding fiscal 
     year bears to the total number of such students served by all 
     local educational agencies in the State for such year.
       (3) Ten percent.--From 10 percent of such portion, each 
     local educational agency shall be allocated an amount that 
     bears the same relationship to such 10 percent as the number 
     of students enrolled in schools and adults enrolled in 
     training programs under the jurisdiction of such local 
     educational agency for the preceding fiscal year bears to the 
     number of students enrolled in schools and adults enrolled in 
     training programs under the jurisdiction of all local 
     educational agencies in the State for such year.
       (b) Minimum Allocation.--
       (1) In general.--Except as provided in paragraph (2), no 
     local educational agency shall receive an allocation under 
     subsection (a) unless the amount allocated to such agency 
     under subsection (a) is not less than $15,000. A local 
     educational agency may enter into a consortium with other 
     local educational agencies for purposes of meeting the 
     minimum allocation requirement of this paragraph.
       (2) Waiver.--The State educational agency may waive the 
     application of paragraph (1) in any case in which the local 
     educational agency--
       (A) is located in a rural, sparsely-populated area; and
       (B) demonstrates that such agency is unable to enter into a 
     consortium for purposes of providing services under this 
     section.
       (3) Redistribution.--Any amounts that are not allocated by 
     reason of paragraph (1) or (2) shall be redistributed to 
     local educational agencies that meet the requirements of 
     paragraph (1) or (2) in accordance with the provisions of 
     this section.
       (c) Limited Jurisdiction Agencies.--
       (1) In general.--In applying the provisions of subsection 
     (a), no State educational agency receiving assistance under 
     this title shall allocate funds to a local educational agency 
     that serves only elementary schools, but shall distribute 
     such funds to the local educational agency or regional 
     educational agency that provides secondary school services to 
     secondary school students in the same attendance area.
       (2) Special rule.--The amount to be allocated under 
     paragraph (1) to a local educational agency that has 
     jurisdiction only over secondary schools shall be determined 
     based on the number of students that entered such secondary 
     schools in the previous year from the elementary schools 
     involved.
       (d) Allocations to Area Vocational Education Schools and 
     Educational Service Agencies.--
       (1) In general.--Each State educational agency shall 
     distribute the portion of funds made available for any 
     program year by such agency for secondary school vocational 
     education under section 111(b)(3)(A) to the appropriate area 
     vocational education school or educational service agency in 
     any case in which--
       (A) the area vocational education school or educational 
     service agency, and the local educational agency concerned--
       (i) have formed or will form a consortium for the purpose 
     of receiving funds under this section; or
       (ii) have entered into or will enter into a cooperative 
     arrangement for such purpose; and
       (B)(i) the area vocational education school or educational 
     service agency serves an approximately equal or greater 
     proportion of students who are individuals with disabilities 
     or are low-income than the proportion of such students 
     attending the secondary schools under the jurisdiction of all 
     of the local educational agencies sending students to the 
     area vocational education school or the educational service 
     agency; or
       (ii) the area vocational education school, educational 
     service agency, or local educational agency demonstrates that 
     the vocational education school or educational service agency 
     is unable to meet the criterion described in clause (i) due 
     to the lack of interest by students described in clause (i) 
     in attending vocational education programs in that area 
     vocational education school or educational service agency.
       (2) Allocation basis.--If an area vocational education 
     school or educational service agency meets the requirements 
     of paragraph (1), then--
       (A) the amount that will otherwise be distributed to the 
     local educational agency under this section shall be 
     allocated to the area vocational education school, the 
     educational service agency, and the local educational agency, 
     based on each school's or agency's relative share of students 
     described in paragraph (1)(B)(i) who are attending vocational 
     education programs (based, if practicable, on the average 
     enrollment for the prior 3 years); or
       (B) such amount may be allocated on the basis of an 
     agreement between the local educational agency and the area 
     vocational education school or educational service agency.
       (3) State determination.--
       (A) In general.--For the purposes of this subsection, the 
     State educational agency may determine the number of students 
     who are low-income on the basis of--
       (i) eligibility for--

       (I) free or reduced-price meals under the National School 
     Lunch Act (7 U.S.C. 1751 et seq.);
       (II) the program for aid to families with dependent 
     children under part A of title IV of the Social Security Act 
     (42 U.S.C. 601 et seq.);

       (III) benefits under the Food Stamp Act of 1977 (7 U.S.C. 
     2011 et seq.); or
       (IV) services under title I of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 6301 et seq.); and

       (ii) another index of economic status, including an 
     estimate of such index, if the State educational agency 
     demonstrates to the satisfaction of the Governing Board that 
     such index is a more representative means of determining such 
     number.
       (B) Data.--If a State educational agency elects to use more 
     than 1 factor described in subparagraph (A) for purposes of 
     making the determination described in such subparagraph, the 
     State educational agency shall ensure that the data used is 
     not duplicative.

[[Page S 14810]]

       (4) Appeals procedure.--The State educational agency shall 
     establish an appeals procedure for resolution of any dispute 
     arising between a local educational agency and an area 
     vocational education school or an educational service agency 
     with respect to the allocation procedures described in this 
     section, including the decision of a local educational agency 
     to leave a consortium.
       (5) Special rule.--Notwithstanding the provisions of 
     paragraphs (1), (2), (3), and (4), any local educational 
     agency receiving an allocation that is not sufficient to 
     conduct a secondary school vocational education program of 
     sufficient size, scope, and quality to be effective may--
       (A) form a consortium or enter into a cooperative agreement 
     with an area vocational education school or educational 
     service agency offering secondary school vocational education 
     programs of sufficient size, scope, and quality to be 
     effective and that are accessible to students who are 
     individuals with disabilities or are low-income, and are 
     served by such local educational agency; and
       (B) transfer such allocation to the area vocational 
     education school or educational service agency.
       (e) Special Rule.--Each State educational agency 
     distributing funds under this section shall treat a secondary 
     school funded by the Bureau of Indian Affairs within the 
     State as if such school were a local educational agency 
     within the State for the purpose of receiving a distribution 
     under this section.

     SEC. 113. DISTRIBUTION FOR POSTSECONDARY AND ADULT VOCATIONAL 
                   EDUCATION.

       (a) Allocation.--
       (1) In general.--Except as provided in subsection (b) and 
     section 115, each State educational agency, using the portion 
     of the funds made available for any program year by such 
     agency for postsecondary and adult vocational education under 
     section 111(b)(3)(A)--
       (A) shall reserve funds to carry out subsection (d); and
       (B) shall distribute the remainder to eligible institutions 
     or consortia of the institutions within the State.
       (2) Formula.--Each such eligible institution or consortium 
     shall receive an amount for the program year (from funds made 
     available for the corresponding fiscal year, as determined 
     under section 134(c)) from such remainder bears the same 
     relationship to such remainder as the number of individuals 
     who are Pell Grant recipients or recipients of assistance 
     from the Bureau of Indian Affairs and are enrolled in 
     programs offered by such institution or consortium for the 
     preceding fiscal year bears to the number of all such 
     individuals who are enrolled in any such program within the 
     State for such preceding year.
       (3) Consortium requirements.--In order for a consortium of 
     eligible institutions described in paragraph (1) to receive 
     assistance pursuant to such paragraph such consortium shall 
     operate joint projects that--
       (A) provide services to all postsecondary institutions 
     participating in the consortium; and
       (B) are of sufficient size, scope, and quality to be 
     effective.
       (b) Waiver for More Equitable Distribution.--The Governing 
     Board may waive the application of subsection (a) in the case 
     of any State educational agency that submits to the Governing 
     Board an application for such a waiver that--
       (1) demonstrates that the formula described in subsection 
     (a) does not result in a distribution of funds to the 
     institutions or consortia within the State that have the 
     highest numbers of low-income individuals and that an 
     alternative formula will result in such a distribution; and
       (2) includes a proposal for an alternative formula that may 
     include criteria relating to the number of individuals 
     attending the institutions or consortia within the State 
     who--
       (A) receive need-based postsecondary financial aid provided 
     from public funds;
       (B) are members of families participating in the program of 
     aid to families with dependent children under part A of title 
     IV of the Social Security Act (42 U.S.C. 601 et seq.);
       (C) are enrolled in postsecondary educational institutions 
     that--
       (i) are funded by the State;
       (ii) do not charge tuition; and
       (iii) serve only low-income students;
       (D) are enrolled in programs serving low-income adults; or
       (E) are Pell Grant recipients.
       (c) Minimum Amount.--
       (1) In general.--No distribution of funds provided to any 
     institution or consortium for a program year under this 
     section shall be for an amount that is less than $50,000.
       (2) Redistribution.--Any amounts that are not distributed 
     by reason of paragraph (1) shall be redistributed to eligible 
     institutions or consortia in accordance with the provisions 
     of this section.
       (d) Special Rule for Criminal Offenders.--Each State 
     educational agency shall distribute the funds reserved under 
     subsection (a)(1)(A) to 1 or more State corrections agencies 
     to enable the State corrections agencies to administer 
     vocational education programs for juvenile and adult criminal 
     offenders in correctional institutions in the State, 
     including correctional institutions operated by local 
     authorities.
       (e) Definition.--For the purposes of this section--
       (1) the term ``eligible institution'' means an institution 
     of higher education, a local educational agency serving 
     adults, or an area vocational education school serving adults 
     that offers or will offer a program that seeks to receive 
     financial assistance under this section;
       (2) the term ``institution of higher education'', 
     notwithstanding section 427(b)(2) of the Higher Education 
     Amendments of 1992 (20 U.S.C. 1085 note), has the meaning 
     given the term in section 435(b) of the Higher Education Act 
     of 1965 as such section was in effect on July 22, 1992;
       (3) the term ``low-income'', used with respect to a person, 
     means a person who is determined under guidelines developed 
     by the Governing Board to be low-income, using the most 
     recent available data provided by the Bureau of the Census, 
     prior to the determination; and
       (4) the term ``Pell Grant recipient'' means a recipient of 
     financial aid under subpart 1 of part A of title IV of the 
     Higher Education Act of 1965 (20 U.S.C. 1070a et seq.).

     SEC. 114. DISTRIBUTION FOR ADULT EDUCATION.

       (a) In General.--Except as provided in subsection (b)(3), 
     from the amount made available by a State educational agency 
     for adult education under section 111(b)(3)(B) for a program 
     year, such agency shall award grants, on a competitive basis, 
     to local educational agencies, correctional education 
     agencies, community-based organizations of demonstrated 
     effectiveness, volunteer literacy organizations, public or 
     private nonprofit agencies, postsecondary educational 
     institutions, public housing authorities, and other nonprofit 
     institutions that have the ability to provide literacy 
     services to adults and families, or consortia of agencies, 
     organizations, or institutions described in this subsection, 
     to enable such agencies, organizations, institutions, and 
     consortia to establish or expand adult education programs.
       (b) Grant Requirements.--
       (1) Access.--Each State educational agency making funds 
     available for any program year for adult education under 
     section 111(b)(3)(B) shall ensure that the entities described 
     in subsection (a) will be provided direct and equitable 
     access to all Federal funds provided under this section.
       (2) Considerations.--In awarding grants under this section, 
     the State educational agency shall consider--
       (A) the past effectiveness of applicants in providing 
     services (especially with respect to recruitment and 
     retention of educationally disadvantaged adults and the 
     learning gains demonstrated by such adults);
       (B) the degree to which an applicant will coordinate and 
     utilize other literacy and social services available in the 
     community; and
       (C) the commitment of the applicant to serve individuals in 
     the community who are most in need of literacy services.
       (3) Consortia.--A State educational agency may award a 
     grant under subsection (a) to a consortium that includes an 
     entity described in subsection (a) and a for-profit agency, 
     organization, or institution, if such agency, organization, 
     or institution--
       (A) can make a significant contribution to carrying out the 
     purposes of this Act; and
       (B) enters into a contract with the entity described in 
     subsection (a) for the purpose of establishing or expanding 
     adult education programs.
       (c) Local Administrative Costs Limits.--
       (1) In general.--Except as provided in paragraph (2), of 
     the funds provided under this section by a State educational 
     agency to an agency, organization, institution, or consortium 
     described in subsection (a), at least 95 percent shall be 
     expended for provision of adult education instructional 
     activities. The remainder shall be used for planning, 
     administration, personnel development, and interagency 
     coordination.
       (2) Special rule.--In cases where the cost limits described 
     in paragraph (1) will be too restrictive to allow for 
     adequate planning, administration, personnel development, and 
     interagency coordination supported under this section, the 
     State educational agency shall negotiate with the agency, 
     organization, institution, or consortium described in 
     subsection (a) in order to determine an adequate level of 
     funds to be used for noninstructional purposes.

     SEC. 115. SPECIAL RULE FOR MINIMAL ALLOCATION.

       (a) General Authority.--For any program year for which a 
     minimal amount is made available by a State educational 
     agency for distribution under section 112 or 113 such agency 
     may, notwithstanding the provisions of section 112 or 113, 
     respectively, in order to make a more equitable distribution 
     of funds for programs serving the highest numbers of low-
     income individuals (as defined in section 113(e)), distribute 
     such minimal amount--
       (1) on a competitive basis; or
       (2) through any alternative method determined by the State 
     educational agency.
       (b) Minimal Amount.--For purposes of this section, the term 
     ``minimal amount'' means not more than 15 percent of the 
     total amount made available by the State educational agency 
     under section 111(b)(3)(A) for section 112 or 113, 
     respectively, for such program year.

     SEC. 116. REDISTRIBUTION.

       (a) In General.--In any program year that an entity 
     receiving financial assistance under section 112 or 113 does 
     not expend all of the amounts distributed to such entity for 
     such year under section 112 or 113, respectively, such entity 
     shall return any unexpended amounts to the State educational 
     agency for distribution under section 112 or 113, 
     respectively.
       (b) Redistribution of Amounts Returned Late in an Program 
     Year.--In any program year in which amounts are returned to 
     the State educational agency under subsection (a) for 
     programs described in section 112 or 113 and the State 
     educational agency is unable to redistribute such amounts 
     according to section 112 or 113, respectively, in time for 
     such amounts to be expended in such program year, the State 
     educational agency shall retain such amounts for distribution 
     in combination with amounts provided under such section for 
     the following program year.
     
[[Page S 14811]]


     SEC. 117. LOCAL APPLICATION FOR WORKFORCE EDUCATION 
                   ACTIVITIES.

       (a) In General.--
       (1) In general.--Each eligible entity desiring financial 
     assistance under this title for workforce education 
     activities shall submit an application to the State 
     educational agency at such time, in such manner and 
     accompanied by such information as such agency (in 
     consultation with such other educational entities as the 
     State educational agency determines to be appropriate) may 
     require. Such application shall cover the same period of time 
     as the period of time applicable to the State workforce 
     development plan.
       (2) Definition.--For the purpose of this section the term 
     ``eligible entity'' means an entity eligible for financial 
     assistance under section 112, 113, or 114 from a State 
     educational agency.
       (b) Contents.--Each application described in subsection (a) 
     shall, at a minimum--
       (1) describe how the workforce education activities 
     required under section 106(b), and other workforce education 
     activities, will be carried out with funds received under 
     this title;
       (2) describe how the activities to be carried out relate to 
     meeting the State goals, and reaching the State benchmarks, 
     concerning workforce education activities;
       (3) describe how the activities to be carried out are an 
     integral part of the comprehensive efforts of the eligible 
     entity to improve education for all students and adults;
       (4) describe the process that will be used to independently 
     and continuously improve the performance of the eligible 
     entity; and
       (5) describe how the eligible entity will coordinate the 
     activities of the entity with the activities of the local 
     workforce development board, if any, in the substate area.

     SEC. 118. LOCAL PARTNERSHIPS, AGREEMENTS, AND WORKFORCE 
                   DEVELOPMENT BOARDS.

       (a) Local Agreements.--
       (1) In general.--After a Governor submits the State plan 
     described in section 104 to the Governing Board, the Governor 
     shall negotiate and enter into a local agreement regarding 
     the workforce employment activities, school-to-work 
     activities, and economic development activities (within a 
     State that is eligible to carry out such activities, as 
     described in subsection (c)) to be carried out in each 
     substate area in the State with local partnerships (or, where 
     established, local workforce development boards described in 
     subsection (b)).
       (2) Local partnerships.--
       (A) In general.--A local partnership referred to in 
     paragraph (1) shall be established by the local chief elected 
     official, in accordance with subparagraphs (B) and (C), and 
     shall consist of individuals representing business, industry, 
     and labor, local secondary schools, local postsecondary 
     education institutions, local adult education providers, 
     local elected officials, rehabilitation agencies and 
     organizations, and community-based organizations, within the 
     appropriate substate area.
       (B) Multiple jurisdictions.--In any case in which there are 
     2 or more units of general local government in the substate 
     area involved, the chief elected official of each such unit 
     shall appoint members of the local partnership in accordance 
     with an agreement entered into by such chief elected 
     officials. In the absence of such an agreement, such 
     appointments shall be made by the Governor of the State 
     involved from the individuals nominated or recommended by the 
     chief elected officials.
       (C) Selection of business and industry representatives.--
     Individuals representing business and industry in the local 
     partnership shall be appointed by the chief elected official 
     from nominations submitted by business organizations in the 
     substate area involved. Such individuals shall reasonably 
     represent the industrial and demographic composition of the 
     business community. Where possible, at least 50 percent of 
     such business and industry representatives shall be 
     representatives of small business.
       (3) Business and industry involvement.--The business and 
     industry representatives shall have a lead role in the 
     design, management, and evaluation of the activities to be 
     carried out in the substate area under the local agreement.
       (4) Contents.--
       (A) State goals and state benchmarks.--Such an agreement 
     shall include a description of the manner in which funds 
     allocated to a substate area under this title will be spent 
     to meet the State goals and reach the State benchmarks in a 
     manner that reflects local labor market conditions.
       (B) Collaboration.--The agreement shall also include 
     information that demonstrates the manner in which--
       (i) the Governor; and
       (ii) the local partnership (or, where established, the 
     local workforce development board);

     collaborated in reaching the agreement.
       (5) Failure to reach agreement.--If, after a reasonable 
     effort, the Governor is unable to enter into an agreement 
     with the local partnership (or, where established, the local 
     workforce development board), the Governor shall notify the 
     partnership or board, as appropriate, and provide the 
     partnership or board, as appropriate, with the opportunity to 
     comment, not later than 30 days after the date of the 
     notification, on the manner in which funds allocated to such 
     substate area will be spent to meet the State goals and reach 
     the State benchmarks.
       (6) Exception.--A State that indicates in the State plan 
     described in section 104 that the State will be treated as a 
     substate area for purposes of the application of this title 
     shall not be subject to this subsection.
       (b) Local Workforce Development Boards.--
       (1) In general.--Each State may facilitate the 
     establishment of local workforce development boards in each 
     substate area to set policy and provide oversight over the 
     workforce development activities in the substate area.
       (2) Membership.--
       (A) State criteria.--The Governor shall establish criteria 
     for use by local chief elected officials in each substate 
     area in the selection of members of the local workforce 
     development boards, in accordance with the requirements of 
     subparagraph (B).
       (B) Representation requirement.--Such criteria shall 
     require, at a minimum, that a local workforce development 
     board consist of--
       (i) representatives of business and industry in the 
     substate area, who shall constitute a majority of the board;
       (ii) representatives of labor, workers, and community-based 
     organizations, who shall constitute not less than 25 percent 
     of the members of the board;
       (iii) representatives of local secondary schools, 
     postsecondary education institutions, and adult education 
     providers;
       (iv) representatives of veterans; and
       (v) 1 or more individuals with disabilities, or their 
     representatives.
       (C) Chair.--Each local workforce development board shall 
     select a chairperson from among the members of the board who 
     are representatives of business and industry.
       (3) Conflict of interest.--No member of a local workforce 
     development board shall vote on a matter relating to the 
     provision of services by the member (or any organization that 
     the member directly represents) or vote on a matter that 
     would provide direct financial benefit to such member or the 
     immediate family of such member or engage in any other 
     activity determined by the Governor to constitute a conflict 
     of interest.
       (4) Functions.--The functions of the local workforce 
     development board shall include--
       (A) submitting to the Governor a single comprehensive 3-
     year strategic plan for workforce development activities in 
     the substate area that includes information--
       (i) identifying the workforce development needs of local 
     industries, students, jobseekers, and workers;
       (ii) identifying the workforce development activities to be 
     carried out in the substate area with funds received through 
     the allotment made to the State under section 102, to meet 
     the State goals and reach the State benchmarks; and
       (iii) identifying how the local workforce development board 
     will obtain the active and continuous participation of 
     business, industry, and labor in the development and 
     continuous improvement of the workforce development 
     activities carried out in the substate area;
       (B) entering into local agreements with the Governor as 
     described in subsection (a);
       (C) overseeing the operations of the one-stop delivery of 
     core services described in section 106(a)(2) in the substate 
     area, including the responsibility to--
       (i) designate local entities to operate the one-stop 
     delivery in the substate area, consistent with the criteria 
     referred to in section 106(a)(2); and
       (ii) develop and approve the budgets and annual operating 
     plans of the providers of the one-stop delivery; and
       (D) submitting annual reports to the Governor on the 
     progress being made in the substate area toward meeting the 
     State goals and reaching the State benchmarks.
       (5) Consultation.--A local workforce development board that 
     serves a substate area shall conduct the functions described 
     in paragraph (4) in consultation with the chief elected 
     officials in the substate area.
       (c) Economic Development Activities.--A State shall be 
     eligible to use the funds made available through the flex 
     account for flexible workforce activities to carry out 
     economic development activities if--
       (1) the boards described in section 105 and subsection (b) 
     are established in the State; or
       (2) in the case of a State that indicates in the State plan 
     described in section 104 that the State will be treated as a 
     substate area for purposes of the application of this title, 
     the board described in section 105 is established in the 
     State.
               Subtitle C--Provisions for Other Entities

     SEC. 121. INDIAN WORKFORCE DEVELOPMENT ACTIVITIES.

       (a) Purpose.--
       (1) In general.--The purpose of this section is to support 
     workforce development activities for Indian and Native 
     Hawaiian individuals in order--
       (A) to develop more fully the academic, occupational, and 
     literacy skills of such individuals;
       (B) to make such individuals more competitive in the 
     workforce; and
       (C) to promote the economic and social development of 
     Indian and Native Hawaiian communities in accordance with the 
     goals and values of such communities.
       (2)  Indian policy.--All programs assisted under this 
     section shall be administered in a manner consistent with the 
     principles of the Indian Self-Determination and Education 
     Assistance Act (25 U.S.C. 450 et seq.) and the government-to-
     government relationship between the Federal Government and 
     Indian tribal governments.
       (b) Definitions.--As used in this section:
       (1) Alaska native.--The term ``Alaska Native'' means a 
     Native as such term is defined in section 3(b) of the Alaska 
     Native Claims Settlement Act (43 U.S.C. 1602(b)).
       (2) Indian, indian tribe, and tribal organization.--The 
     terms ``Indian'', ``Indian tribe'', and ``tribal 
     organization'' have the same meanings given such terms in 
     subsections (d), (e) and (l), respectively, of section 4 of 
     the Indian Self-Determination and Education Assistance Act 
     (25 U.S.C. 450b).
       (3) Institution of higher education.--The term 
     ``institution of higher education'' has the meaning given the 
     term in section 1201(a) of the 

[[Page S 14812]]
     Higher Education Act of 1965 (20 U.S.C. 1141(a)).
       (4) Native hawaiian and native hawaiian organization.--The 
     terms ``Native Hawaiian'' and ``Native Hawaiian 
     organization'' have the same meanings given such terms in 
     paragraphs (1) and (3), respectively, of section 9212 of the 
     Native Hawaiian Education Act (20 U.S.C. 7912).
       (5) Tribally controlled community college.--The term 
     ``tribally controlled community college'' has the same 
     meaning given such term in section 2(a)(4) of the Tribally 
     Controlled Community College Assistance Act of 1978 (25 
     U.S.C. 1801(a)(4)).
       (6) Tribally controlled postsecondary vocational 
     institution.--The term ``tribally controlled postsecondary 
     vocational institution'' means an institution of higher 
     education that--
       (A) is formally controlled, or has been formally sanctioned 
     or chartered, by the governing body of an Indian tribe or 
     Indian tribes;
       (B) offers a technical degree or certificate granting 
     program;
       (C) is governed by a board of directors or trustees, a 
     majority of whom are Indians;
       (D) demonstrates adherence to stated goals, a philosophy, 
     or a plan of operation, that fosters individual Indian 
     economic and self-sufficiency opportunity, including programs 
     that are appropriate to stated tribal goals of developing 
     individual entrepreneurships and self-sustaining economic 
     infrastructures on reservations;
       (E) has been in operation for at least 3 years;
       (F) holds accreditation with or is a candidate for 
     accreditation by a nationally recognized accrediting 
     authority for postsecondary vocational education; and
       (G) enrolls the full-time equivalent of not fewer than 100 
     students, of whom a majority are Indians.
       (c) Program Authorized.--
       (1) Assistance authorized.--From amounts made available 
     under section 134(b)(2), the Governing Board shall make 
     grants to, or enter into contracts or cooperative agreements 
     with, Indian tribes and tribal organizations, Alaska Native 
     entities, tribally controlled community colleges, tribally 
     controlled postsecondary vocational institutions, Indian-
     controlled organizations serving Indians or Alaska Natives, 
     and Native Hawaiian organizations to carry out the authorized 
     activities described in subsection (d).
       (2) Formula.--The Governing Board shall make grants to, or 
     enter into contracts and cooperative agreements with, 
     entities as described in paragraph (1) to carry out the 
     activities described in paragraphs (2) and (3) of subsection 
     (d) on the basis of a formula developed by the Governing 
     Board in consultation with entities described in paragraph 
     (1).
       (d) Authorized Activities.--
       (1) In general.--Funds made available under this section 
     shall be used to carry out the activities described in 
     paragraphs (2) and (3) that--
       (A) are consistent with this section; and
       (B) are necessary to meet the needs of Indians and Native 
     Hawaiians preparing to enter, reenter, or retain unsubsidized 
     employment.
       (2) Workforce development activities and supplemental 
     services.--
       (A) In general.--Funds made available under this section 
     shall be used for--
       (i) comprehensive workforce development activities for 
     Indians and Native Hawaiians;
       (ii) supplemental services for Indian or Native Hawaiian 
     youth on or near Indian reservations in Oklahoma, Alaska, or 
     Hawaii; and
       (iii) supplemental services to recipients of public 
     assistance on or near Indian reservations or former 
     reservation areas in Oklahoma or in Alaska.
       (B) Special rule.--Notwithstanding any other provision of 
     this section, individuals who were eligible to participate in 
     programs under section 401 of the Job Training Partnership 
     Act (29 U.S.C. 1671) (as such section was in effect on the 
     day before the date of enactment of this Act) shall be 
     eligible to participate in an activity assisted under 
     subparagraph (A)(i).
       (3) Vocational education, adult education, and literacy 
     services.--Funds made available under this section shall be 
     used for--
       (A) workforce education activities conducted by entities 
     described in subsection (c)(1); and
       (B) the support of tribally controlled postsecondary 
     vocational institutions in order to ensure continuing and 
     expanded educational opportunities for Indian students.
       (e) Program Plan.--In order to receive a grant or enter 
     into a contract or cooperative agreement under this section 
     an entity described in subsection (c)(1) shall submit to the 
     Governing Board a plan that describes a 3-year strategy for 
     meeting the needs of Indian and Native Hawaiian individuals, 
     as appropriate, in the area served by such entity. Such plan 
     shall--
       (1) be consistent with the purposes of this section;
       (2) identify the population to be served;
       (3) identify the education and employment needs of the 
     population to be served and the manner in which the services 
     to be provided will strengthen the ability of the individuals 
     served to obtain or retain unsubsidized employment;
       (4) describe the services to be provided and the manner in 
     which such services are to be integrated with other 
     appropriate services; and
       (5) describe the goals and benchmarks to be used to assess 
     the performance of entities in carrying out the activities 
     assisted under this section.
       (f) Further Consolidation of Funds.--Each entity receiving 
     assistance under this section may consolidate such assistance 
     with assistance received from related programs in accordance 
     with the provisions of the Indian Employment, Training and 
     Related Services Demonstration Act of 1992 (25 U.S.C. 3401 et 
     seq.).
       (g) Nonduplicative and Nonexclusive Services.--Nothing in 
     this section shall be construed--
       (1) to limit the eligibility of any entity described in 
     subsection (c)(1) to participate in any program offered by a 
     State or local entity under this Act; or
       (2) to preclude or discourage any agreement, between any 
     entity described in subsection (c)(1) and any State or local 
     entity, to facilitate the provision of services by such 
     entity or to the population served by such entity.
       (h) Partnership Provisions.--
       (1) Office established.--The Governing Board shall 
     establish an office within the Federal Partnership to 
     administer the activities assisted under this section.
       (2) Consultation required.--
       (A) In general.--The Governing Board, through the office 
     established under paragraph (1), shall develop regulations 
     and policies for activities assisted under this section in 
     consultation with tribal organizations and Native Hawaiian 
     organizations. Such regulations and policies shall take into 
     account the special circumstances under which such activities 
     operate.
       (B) Administrative support.--The Governing Board shall 
     provide such administrative support to the office established 
     under paragraph (1) as the Governing Board determines to be 
     necessary to carry out the consultation required by 
     subparagraph (A).
       (3) Technical assistance.--The Governing Board, through the 
     office established under paragraph (1), is authorized to 
     provide technical assistance to entities described in 
     subsection (c)(1) that receive assistance under this section 
     to enable such entities to improve the workforce development 
     activities provided by such entities.

     SEC. 122. GRANTS TO OUTLYING AREAS.

       (a) General Authority.--Using funds made available under 
     section 134(b)(3), the Governing Board shall make grants to 
     outlying areas to carry out workforce development activities.
       (b) Application.--The Governing Board shall issue 
     regulations specifying the provisions of this Act that shall 
     apply to outlying areas that receive funds under this title.
                     Subtitle D--General Provisions

     SEC. 131. ACCOUNTABILITY.

       (a) Report.--Each State that receives an allotment under 
     section 102 shall annually prepare and submit to the 
     Governing Board a report that states how the State is 
     performing on State benchmarks specified in this section, 
     which relate to workforce development activities carried out 
     through the statewide system of the State. In preparing the 
     report, the State may include information on such additional 
     benchmarks as the State may establish to meet the State 
     goals.
       (b) Goals.--
       (1) Meaningful employment.--Each statewide system supported 
     by an allotment under section 102 shall be designed to meet 
     the goal of assisting participants in obtaining meaningful 
     unsubsidized employment opportunities in the State.
       (2) Education.--Each statewide system supported by an 
     allotment under section 102 shall be designed to meet the 
     goal of enhancing and developing more fully the academic, 
     occupational, and literacy skills of all segments of the 
     population of the State.
       (c) Benchmarks.--
       (1) Meaningful employment.--To be eligible to receive an 
     allotment under section 102, a State shall develop, in 
     accordance with paragraph (5), and identify in the State plan 
     of the State, proposed quantifiable benchmarks to measure the 
     statewide progress of the State toward meeting the goal 
     described in subsection (b)(1), which shall include, at a 
     minimum, measures of--
       (A) placement in unsubsidized employment of participants;
       (B) retention of the participants in such employment (12 
     months after completion of the participation); and
       (C) increased earnings for the participants.
       (2) Education.--To be eligible to receive an allotment 
     under section 102, a State shall develop, in accordance with 
     paragraph (5), and identify in the State plan of the State, 
     proposed quantifiable benchmarks to measure the statewide 
     progress of the State toward meeting the goal described in 
     subsection (b)(2), which shall include, at a minimum, 
     measures of--
       (A) student mastery of academic knowledge and work 
     readiness skills;
       (B) student mastery of occupational and industry-recognized 
     skills according to skill proficiencies for students in 
     career preparation programs;
       (C) placement in, retention in, and completion of secondary 
     education (as determined under State law) and postsecondary 
     education, and placement and retention in employment and in 
     military service; and
       (D) mastery of the literacy, knowledge, and skills adults 
     need to be productive and responsible citizens and to become 
     more actively involved in the education of their children.
       (3) Populations.--To be eligible to receive an allotment 
     under section 102, a State shall develop, in accordance with 
     paragraph (5), and identify in the State plan of the State, 
     proposed quantifiable benchmarks to measure progress toward 
     meeting the goals described in subsection (b) for populations 
     including, at a minimum--
       (A) welfare recipients;
       (B) individuals with disabilities;
       (C) older workers;
       (D) at-risk youth; and
       (E) dislocated workers.
       (4) Special rule.--If a State has developed performance 
     indicators, attainment levels, or assessments for skills 
     according to challenging academic, occupational, or industry-
     recognized skill proficiencies, the State shall use such 
     performance indicators, attainment levels, or assessments in 
     measuring the progress of all students in attaining the 
     skills.

[[Page S 14813]]

       (5) Negotiations.--
       (A) Initial determination.--On receipt of a State plan 
     submitted under section 104, the Governing Board shall, not 
     later than 30 days after the date of the receipt, determine--
       (i) how the proposed State benchmarks identified by the 
     State in the State plan compare to the model benchmarks 
     established by the Governing Board under section 
     301(b)(4)(B)(ii);
       (ii) how the proposed State benchmarks compare with State 
     benchmarks proposed by other States in their State plans;
       (iii) whether the proposed State benchmarks, taken as a 
     whole, are sufficient--

       (I) to enable the State to meet the State goals; and
       (II) to make the State eligible for an incentive grant 
     under section 132(a).

       (B) Notification.--The Governing Board shall immediately 
     notify the State of the determinations referred to in 
     subparagraph (A). If the Governing Board determines that the 
     proposed State benchmarks are not sufficient to make the 
     State eligible for an incentive grant under section 132(a), 
     the Governing Board shall provide the State with guidance on 
     the steps the State may take to allow the State to become 
     eligible for the grant.
       (C) Revision.--Not later than 30 days after the date of 
     receipt of the notification referred to in subparagraph (B), 
     the State may revise some or all of the State benchmarks 
     identified in the State plan in order to become eligible for 
     the incentive grant or provide reasons why the State 
     benchmarks should be sufficient to make the State eligible 
     for the incentive grant.
       (D) Final determination.--After reviewing any revised State 
     benchmarks or information submitted by the State in 
     accordance with subparagraph (C), the Governing Board shall 
     issue a final determination on the eligibility of the State 
     for the incentive grant.
       (6) Incentive grants.--Each State that sets high benchmarks 
     under paragraph (1), (2), or (3) and reaches or exceeds the 
     benchmarks, as determined by the Governing Board, shall be 
     eligible to receive an incentive grant under section 132(a).
       (7) Sanctions.--A State that has failed to demonstrate 
     sufficient progress toward reaching the State benchmarks 
     established under this subsection for the 3 years covered by 
     a State plan described in section 104, as determined by the 
     Governing Board, may be subject to sanctions under section 
     132(b).
       (d) Job Placement Accountability System.--
       (1) In general.--Each State that receives an allotment 
     under section 102 shall establish a job placement 
     accountability system, which will provide a uniform set of 
     data to track the progress of the State toward reaching the 
     State benchmarks.
       (2) Data.--
       (A) In general.--In order to maintain data relating to the 
     measures described in subsection (c)(1), each such State 
     shall establish a job placement accountability system using 
     quarterly wage records available through the unemployment 
     insurance system. The State agency or entity within the State 
     responsible for labor market information, as designated in 
     section 303(c)(1)(B), in conjunction with the Commissioner of 
     Labor Statistics, shall maintain the job placement 
     accountability system and match information on participants 
     served by the statewide systems of the State and other States 
     with quarterly employment and earnings records.
       (B) Reimbursement.--Each local entity that carries out 
     workforce employment activities or workforce education 
     activities and that receives funds under this title shall 
     provide information regarding the social security numbers of 
     the participants served by the entity and such other 
     information as the State may require to the State agency or 
     entity within the State responsible for labor market 
     information, as designated in section 303(c)(1)(B).
       (C) Confidentiality.--The State agency or entity within the 
     State responsible for labor market information, as designated 
     in section 303(c)(1)(B), shall protect the confidentiality of 
     information obtained through the job placement accountability 
     system through the use of recognized security procedures.

     SEC. 132. INCENTIVES AND SANCTIONS.

       (a) Incentives.--
       (1) In general.--The Governing Board may award incentive 
     grants of not more than $15,000,000 per program year to a 
     State that--
       (A) reaches or exceeds State benchmarks established under 
     section 131(c), with an emphasis on the benchmarks 
     established under section 131(c)(3), in accordance with 
     section 131(c)(6); or
       (B) demonstrates to the Governing Board that the State has 
     made substantial reductions in the number of adult recipients 
     of aid to families with dependent children, as defined in 
     section 102(b)(1)(A), resulting from increased placement of 
     such adult recipients in unsubsidized employment.
       (2) Use of funds.--A State that receives such a grant may 
     use the funds made available through the grant to carry out 
     any workforce development activities authorized under this 
     Act.
       (b) Sanctions.--
       (1) Failure to demonstrate sufficient progress.--If the 
     Governing Board determines, after notice and an opportunity 
     for a hearing, that a State has failed to demonstrate 
     sufficient progress toward reaching the State benchmarks 
     established under section 131(c) for the 3 years covered by a 
     State plan described in section 104, the Governing Board may 
     reduce the allotment of the State under section 102 by not 
     more than 10 percent per program year for not more than 3 
     years. The Governing Board may determine that the failure of 
     the State to demonstrate such progress is attributable to the 
     workforce employment activities, workforce education 
     activities, or flexible workforce activities, of the State, 
     and reduce only the portion of the allotment for such 
     activities.
       (2) Expenditure contrary to act.--If the Governor of a 
     State determines that a local entity that carries out 
     workforce employment activities in a substate area of the 
     State has expended funds made available under this Act in a 
     manner contrary to the purposes of this Act, and such 
     expenditures do not constitute fraudulent activity, the 
     Governor may deduct an amount equal to the funds from a 
     subsequent program year allocation to the substate area.
       (c) Funds Resulting From Reduced Allotments.--The Governing 
     Board may use an amount retained as a result of a reduction 
     in an allotment made under subsection (b)(1) to award an 
     incentive grant under subsection (a).

     SEC. 133. UNEMPLOYMENT TRUST FUND.

       (a) In General.--Section 901(c) of the Social Security Act 
     (42 U.S.C. 1101(c)) is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (A), by striking clause (ii) and 
     inserting the following:
       ``(ii) the establishment and maintenance of statewide 
     workforce development systems, to the extent the systems are 
     used to carry out activities described in section 303, or in 
     any of clauses (ii) through (v) of section 106(a)(2)(B), of 
     the Workforce Development Act of 1995, and''; and
       (B) in subparagraph (B)--
       (i) in the matter preceding clause (i), by striking 
     ``Department of Labor'' and inserting ``Department of Labor 
     or the Workforce Development Partnership, as appropriate,''; 
     and
       (ii) by striking clause (iii) and inserting the following:
       ``(iii) the Workforce Development Act of 1995,''; and
       (2) in the first sentence of paragraph (4), by striking 
     ``the total cost'' and all that follows through ``the 
     President determines'' and inserting ``the total cost of 
     administering the statewide workforce development systems, to 
     the extent the systems are used to carry out activities 
     described in section 303, or in any of clauses (ii) through 
     (v) of section 106(a)(2)(B), of the Workforce Development Act 
     of 1995, and of the necessary expenses of the Workforce 
     Development Partnership for the performance of the functions 
     of the partnership under such Act, as the President 
     determines''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect July 1, 1998.

     SEC. 134. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There are authorized to be appropriated to 
     carry out this Act (other than subtitle C of title II) 
     $7,000,000,000 for each of fiscal years 1998 through 2001.
       (b) Reservations.--Of the amount appropriated under 
     subsection (a)--
       (1) 92.7 percent shall be reserved for making allotments 
     under section 102;
       (2) 1.25 percent shall be reserved for carrying out section 
     121;
       (3) 0.2 percent shall be reserved for carrying out section 
     122;
       (4) 4.3 percent shall be reserved for making incentive 
     grants under section 132(a) and for the administration of 
     this Act;
       (5) 0.15 percent shall be reserved for carrying out 
     sections 302 and 304; and
       (6) 1.4 percent shall be reserved for carrying out section 
     303.
       (c) Program Year.--
       (1) In general.--Appropriations for any fiscal year for 
     programs and activities under this Act shall be available for 
     obligation only on the basis of a program year. The program 
     year shall begin on July 1 in the fiscal year for which the 
     appropriation is made.
       (2) Administration.--Funds obligated for any program year 
     may be expended by each recipient during the program year and 
     the 2 succeeding program years and no amount shall be 
     deobligated on account of a rate of expenditure that is 
     consistent with the provisions of the State plan specified in 
     section 104 that relate to workforce employment activities.

     SEC. 135. EFFECTIVE DATE.

       This title shall take effect July 1, 1998.
                    TITLE II--TRANSITION PROVISIONS
Subtitle A--Transition Provisions Relating to Use of Federal Funds for 
                       State and Local Activities

     SEC. 201. WAIVERS.

       (a) Waiver Authority.--
       (1) In general.--Notwithstanding any other provision of 
     Federal law, and except as provided in subsection (d), the 
     Secretary may waive any requirement under any provision of 
     law relating to a covered activity, or of any regulation 
     issued under such a provision, for--
       (A) a State that requests such a waiver and submits an 
     application as described in subsection (b); or
       (B) a local entity that requests such a waiver and complies 
     with the requirements of subsection (c);
     in order to assist the State or local entity in planning or 
     developing a statewide system or workforce development 
     activities to be carried out through the statewide system.
       (2) Term.--
       (A) In general.--Except as provided in subparagraph (B), 
     each waiver approved pursuant to this section shall be for a 
     period beginning on the date of the approval and ending on 
     June 30, 1998.
       (B) Failure to submit interim plan.--If a State receives a 
     waiver under this section and fails to submit an interim plan 
     under section 211 by June 30, 1997, the waiver shall be 
     deemed to terminate on September 30, 1997. If a local entity 
     receives a waiver under this section, and the State in which 
     the local entity is located fails to submit an interim plan 
     under section 211 by June 30, 1997, the waiver shall be 
     deemed to terminate on September 30, 1997.
       (b) State Request for Waiver.--

[[Page S 14814]]

       (1) In general.--A State may submit to the Secretary a 
     request for a waiver of 1 or more requirements referred to in 
     subsection (a). The request may include a request for 
     different waivers with respect to different areas within the 
     State.
       (2) Application.--To be eligible to receive a waiver 
     described in subsection (a), a State shall submit an 
     application to the Secretary at such time, in such manner, 
     and containing such information as the Secretary may require, 
     including information--
       (A) identifying the requirement to be waived and the goal 
     that the State (or the local agency applying to the State 
     under subsection (c)) intends to achieve through the waiver;
       (B) identifying, and describing the actions that the State 
     will take to remove, similar State requirements;
       (C) describing the activities to which the waiver will 
     apply, including information on how the activities may be 
     continued, or related to activities carried out, under the 
     statewide system of the State;
       (D) describing the number and type of persons to be 
     affected by such waiver; and
       (E) providing evidence of support for the waiver request by 
     the State agencies or officials with jurisdiction over the 
     requirement to be waived.
       (c) Local Entity Request for Waiver.--
       (1) In general.--A local entity that seeks a waiver of such 
     a requirement shall submit to the State a request for the 
     waiver and an application containing sufficient information 
     to enable the State to comply with the requirements of 
     subsection (b)(2). The State shall determine whether to 
     submit a request and an application for a waiver to the 
     Secretary, as provided in subsection (b).
       (2) Time limit.--
       (A) In general.--The State shall make a determination 
     concerning whether to submit the request and application for 
     a waiver as described in paragraph (1) not later than 30 days 
     after the date on which the State receives the application 
     from the local entity.
       (B) Direct submission.--
       (i) In general.--If the State does not make a determination 
     to submit or does not submit the request and application 
     within the 30-day time period specified in subparagraph (A), 
     the local entity may submit the request and application to 
     the Secretary.
       (ii) Requirements.--In submitting such a request, the local 
     entity shall obtain the agreement of the State involved to 
     comply with the requirements of this section that would 
     otherwise apply to a State submitting a request for a waiver. 
     In reviewing an application submitted by a local entity, the 
     Secretary shall comply with the requirements of this section 
     that would otherwise apply to the Secretary with respect to 
     review of such an application submitted by a State.
       (d) Waivers Not Authorized.--The Secretary may not waive 
     any requirement of any provision referred to in subsection 
     (a), or of any regulation issued under such provision, 
     relating to--
       (1) the allocation of funds to States, local entities, or 
     individuals;
       (2) public health or safety, civil rights, occupational 
     safety and health, environmental protection, displacement of 
     employees, or fraud and abuse;
       (3) the eligibility of an individual for participation in a 
     covered activity, except in a case in which the State or 
     local entity can demonstrate that the individuals who would 
     have been eligible to participate in such activity without 
     the waiver will participate in a similar covered activity; or
       (4) a required supplementation of funds by the State or a 
     prohibition against the State supplanting such funds.
       (e) Activities.--Subject to subsection (d), the Secretary 
     may approve a request for a waiver described in subsection 
     (a) that would enable a State or local entity to--
       (1) use the assistance that would otherwise have been used 
     to carry out 2 or more covered activities (if the State or 
     local entity were not using the assistance as described in 
     this section)--
       (A) to address the high priority needs of unemployed 
     persons and at-risk youth in the appropriate State or 
     community for workforce employment activities or workforce 
     education activities;
       (B) to improve efficiencies in the delivery of the covered 
     activities; or
       (C) in the case of overlapping or duplicative activities--
       (i) by combining the covered activities and funding the 
     combined activities; or
       (ii) by eliminating 1 of the covered activities and 
     increasing the funding to the remaining covered activity; and
       (2) use the assistance that would otherwise have been used 
     for administrative expenses relating to a covered activity 
     (if the State or local entity were not using the assistance 
     as described in this section) to pay for the cost of 
     developing an interim State plan described in section 211 or 
     a State plan described in section 104.
       (f) Approval or Disapproval.--The Secretary shall approve 
     or disapprove any request submitted pursuant to subsection 
     (b) or (c), not later than 45 days after the date of the 
     submission and shall issue a decision that shall include the 
     reasons for approving or disapproving the request.
       (g) Failure To Act.--If the Secretary fails to approve or 
     disapprove the request within the 45-day period described in 
     subsection (f), the request shall be deemed to be approved on 
     the day after such period ends. If the Secretary subsequently 
     determines that the waiver relates to a matter described in 
     subsection (d) and issues a decision that includes the 
     reasons for the determination, the waiver shall be deemed to 
     terminate on the date of issuance of the decision.
       (h) Definition.--As used in this section:
       (1) Local entity.--The term ``local entity'' means--
       (A) a local educational agency, with respect to any act by 
     a local agency or organization relating to a covered activity 
     that is a workforce education activity; and
       (B) the local public or private agency or organization 
     responsible for carrying out the covered activity at issue, 
     with respect to any act by a local agency or organization 
     relating to any other covered activity.
       (2) Secretary.--The term ``Secretary'' means--
       (A) the Secretary of Labor, with respect to any act 
     relating to a covered activity carried out by the Secretary 
     of Labor;
       (B) the Secretary of Education, with respect to any act 
     relating to a covered activity carried out by the Secretary 
     of Education; and
       (C) the Secretary of Health and Human Services, with 
     respect to any act relating to a covered activity carried out 
     by the Secretary of Health and Human Services.
       (3) State.--The term ``State'' means--
       (A) a State educational agency, with respect to any act by 
     a State entity relating to a covered activity that is a 
     workforce education activity; and
       (B) the Governor, with respect to any act by a State entity 
     relating to any other covered activity.
       (i) Conforming Amendments.--
       (1) Section 501 of the School-to-Work Opportunities Act of 
     1994 (20 U.S.C. 6211) is amended--
       (A) in subsection (a), by striking ``sections 502 and 503'' 
     and inserting ``section 502'';
       (B) in subsection (b)(2)(B)(ii)--
       (i) by striking ``section 502(a)(1)(C) or 503(a)(1)(C), as 
     appropriate,'' and inserting ``section 502(a)(1)(C)''; and
       (ii) by striking ``section 502 or 503, as appropriate,'' 
     and inserting ``section 502'';
       (C) in subsection (c), by striking ``section 502 or 503'' 
     and inserting ``section 502''; and
       (D) by striking ``Secretaries'' each place the term appears 
     and inserting ``Secretary of Education''.
       (2) Section 502(b) of such Act (20 U.S.C. 6212(b)) is 
     amended--
       (A) in paragraph (4), by striking the semicolon and 
     inserting ``; and'';
       (B) in paragraph (5), by striking ``; and'' and inserting a 
     period; and
       (C) by striking paragraph (6).
       (3) Section 503 of such Act (20 U.S.C. 6213) is repealed.
       (4) Section 504 of such Act (20 U.S.C. 6214) is amended--
       (A) in subsection (a)(2)(B), by striking clauses (i) and 
     (ii) and inserting the following clauses:
       ``(i) the provisions of law listed in paragraphs (2) 
     through (5) of section 502(b);
       ``(ii) the Job Training Partnership Act (29 U.S.C. 1501 et 
     seq.); and
       ``(iii) the Carl D. Perkins Vocational and Applied 
     Technology Education Act (20 U.S.C. 2301 et seq.).''; and
       (B) in subsection (b), by striking ``paragraphs (1) through 
     (3), and paragraphs (5) and (6), of section 503(b)'' and 
     inserting ``paragraphs (2) through (4) and paragraphs (6) and 
     (7) of section 505(b)''.
       (5) Section 505(b) of such Act (20 U.S.C. 6215(b)) is 
     amended to read as follows:
       ``(b) Use of Funds.--A State may use, under the 
     requirements of this Act, Federal funds that are made 
     available to the State and combined under subsection (a) to 
     carry out school-to-work activities, except that the 
     provisions relating to--
       ``(1) the matters specified in section 502(c);
       ``(2) basic purposes or goals;
       ``(3) maintenance of effort;
       ``(4) distribution of funds;
       ``(5) eligibility of an individual for participation;
       ``(6) public health or safety, labor standards, civil 
     rights, occupational safety and health, or environmental 
     protection; or
       ``(7) prohibitions or restrictions relating to the 
     construction of buildings or facilities;

     that relate to the program through which the funds described 
     in subsection (a)(2)(B) were made available, shall remain in 
     effect with respect to the use of such funds.''.
  Subtitle B--Transition Provisions Relating to Applications and Plans

     SEC. 211. INTERIM STATE PLANS.

       (a) In General.--For a State or local entity in a State to 
     use a waiver received under section 201 through June 30, 
     1998, and for a State to be eligible to submit a State plan 
     described in section 104 for program year 1998, the Governor 
     of the State shall submit an interim State plan to the 
     Governing Board. The Governor shall submit the plan not later 
     than June 30, 1997.
       (b) Requirements.--The interim State plan shall comply with 
     the requirements applicable to State plans described in 
     section 104.
       (c) Program Year.--In submitting the interim State plan, 
     the Governor shall indicate whether the plan is submitted--
       (1) for review and approval for program year 1997; or
       (2) solely for review.
       (d) Review.--In reviewing an interim State plan, the 
     Governing Board may--
       (1) in the case of a plan submitted for review and approval 
     for program year 1997--
       (A) approve the plan and permit the State to use a waiver 
     as described in section 201 to carry out the plan; or
       (B) disapprove the plan, and provide to the State reasons 
     for the disapproval and technical assistance for developing 
     an approvable plan to be submitted under section 104 for 
     program year 1998; and
       (2) in the case of a plan submitted solely for review, 
     review the plan and provide to the State 

[[Page S 14815]]
     technical assistance for developing an approvable plan to be submitted 
     under section 104 for program year 1998.
       (e) Effect of Disapproval.--Disapproval of an interim plan 
     shall not affect the ability of a State to use a waiver as 
     described in section 201 through June 30, 1998.

     SEC. 212. APPLICATIONS AND PLANS UNDER COVERED ACTS.

       Notwithstanding any other provision of law, no State or 
     local entity shall be required to comply with any provision 
     of a covered Act that would otherwise require the entity to 
     submit an application or a plan to a Federal agency during 
     fiscal year 1996 or 1997 for funding of a covered activity. 
     In determining whether to provide funding to the State or 
     local entity for the covered activity, the Secretary of 
     Education, the Secretary of Labor, or the Secretary of Health 
     and Human Services, as appropriate, shall consider the last 
     application or plan, as appropriate, submitted by the entity 
     for funding of the covered activity.
 Subtitle C--Job Corps and Other Workforce Preparation Activities for 
                             At-Risk Youth

                CHAPTER 1--GENERAL JOB CORPS PROVISIONS

     SEC. 221. PURPOSES.

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

     SEC. 222. DEFINITIONS.

       As used in this subtitle:
       (1) Enrollee.--The term ``enrollee'' means an individual 
     enrolled in the Job Corps.
       (2) Governor.--The term ``Governor'' means the chief 
     executive officer of a State.
       (3) Job corps.--The term ``Job Corps'' means the corps 
     described in section 223.
       (4) Job corps center.--The term ``Job Corps center'' means 
     a center described in section 223.

     SEC. 223. GENERAL AUTHORITY.

       If a State receives an allotment under section 241, and a 
     center located in the State received assistance under part B 
     of title IV of the Job Training Partnership Act for fiscal 
     year 1996 and was not closed in accordance with section 235, 
     the State shall use a portion of the funds made available 
     through the allotment to maintain the center, and carry out 
     activities described in this subtitle for individuals 
     enrolled in a Job Corps and assigned to the center.

     SEC. 224. INDIVIDUALS ELIGIBLE FOR THE JOB CORPS.

       To be eligible to become an enrollee, an individual shall 
     be an at-risk youth.

     SEC. 225. SCREENING AND SELECTION OF APPLICANTS.

       (a) Standards and Procedures.--
       (1) In general.--The State shall prescribe specific 
     standards and procedures for the screening and selection of 
     applicants for the Job Corps.
       (2) Implementation.--To the extent practicable, the 
     standards and procedures shall be implemented through 
     arrangements with--
       (A) one-stop career centers;
       (B) agencies and organizations such as community action 
     agencies, professional groups, and labor organizations; and
       (C) agencies and individuals that have contact with youth 
     over substantial periods of time and are able to offer 
     reliable information about the needs and problems of the 
     youth.
       (3) Consultation.--The standards and procedures shall 
     provide for necessary consultation with individuals and 
     organizations, including court, probation, parole, law 
     enforcement, education, welfare, and medical authorities and 
     advisers.
       (b) Special Limitations.--No individual shall be selected 
     as an enrollee unless the individual or organization 
     implementing the standards and procedures determines that--
       (1) there is a reasonable expectation that the individual 
     can participate successfully in group situations and 
     activities, is not likely to engage in behavior that would 
     prevent other enrollees from receiving the benefit of the 
     program or be incompatible with the maintenance of sound 
     discipline and satisfactory relationships between the Job 
     Corps center to which the individual might be assigned and 
     surrounding communities; and
       (2) the individual manifests a basic understanding of both 
     the rules to which the individual will be subject and of the 
     consequences of failure to observe the rules.

     SEC. 226. ENROLLMENT AND ASSIGNMENT.

       (a) Relationship Between Enrollment and Military 
     Obligations.--Enrollment in the Job Corps shall not relieve 
     any individual of obligations under the Military Selective 
     Service Act (50 U.S.C. App. 451 et seq.).
       (b) Assignment.--
       (1) In general.--Except as provided in paragraph (2), the 
     State shall assign an enrollee to the Job Corps center within 
     the State that is closest to the residence of the enrollee.
       (2) Agreements with other states.--The State may enter into 
     agreements with 1 or more States to enroll individuals from 
     the States in the Job Corps and assign the enrollees to Job 
     Corps centers in the State.

     SEC. 227. JOB CORPS CENTERS.

       (a) Development.--The State shall enter into an agreement 
     with a Federal, State, or local agency, which may be a State 
     board or agency that operates or wishes to develop an area 
     vocational education school facility or residential 
     vocational school, or with a private organization, for the 
     establishment and operation of a Job Corps center.
       (b) Character and Activities.--Job Corps centers may be 
     residential or nonresidential in character, and shall be 
     designed and operated so as to provide enrollees, in a well-
     supervised setting, with access to activities described in 
     section 228.
       (c) Civilian Conservation Centers.--The Job Corps centers 
     may include Civilian Conservation Centers, located primarily 
     in rural areas, which shall provide, in addition to other 
     training and assistance, programs of work experience to 
     conserve, develop, or manage public natural resources or 
     public recreational areas or to develop community projects in 
     the public interest.
       (d) Job Corps Operators.--To be eligible to receive funds 
     under this chapter, an entity who entered into a contract 
     with the Secretary of Labor that is in effect on the 
     effective date of this section to carry out activities 
     through a center under part B of title IV of the Job Training 
     Partnership Act (as in effect on the day before the effective 
     date of this section), shall enter into a contract with the 
     State in which the center is located that contains provisions 
     substantially similar to the provisions of the contract with 
     the Secretary of Labor, as determined by the State.

     SEC. 228. PROGRAM ACTIVITIES.

       (a) Activities Provided Through Job Corps Centers.--Each 
     Job Corps center shall provide enrollees assigned to the 
     center with access to activities described in section 
     106(a)(2)(B), and such other workforce development activities 
     as may be appropriate to meet the needs of the enrollees, 
     including providing work-based learning throughout the 
     enrollment of the enrollees and assisting the enrollees in 
     obtaining meaningful unsubsidized employment on completion 
     of their enrollment.
       (b) Arrangements.--The State shall arrange for enrollees 
     assigned to Job Corps centers in the State to receive 
     workforce development activities through the statewide 
     system, including workforce development activities provided 
     through local public or private educational agencies, 
     vocational educational institutions, or technical institutes.
       (c) Job Placement Accountability.--Each Job Corps center 
     located in a State shall be connected to the job placement 
     accountability system of the State described in section 
     131(d).

     SEC. 229. SUPPORT.

       The State shall provide enrollees assigned to Job Corps 
     centers in the State with such personal allowances as the 
     State may determine to be necessary or appropriate to meet 
     the needs of the enrollees.

     SEC. 230. OPERATING PLAN.

       To be eligible to operate a Job Corps center and receive 
     assistance under section 241 for program year 1998 or any 
     subsequent program year, an entity shall prepare and submit, 
     to the Governor of the State in which the center is located, 
     and obtain the approval of the Governor for, an operating 
     plan that shall include, at a minimum, information 
     indicating--
       (1) in quantifiable terms, the extent to which the center 
     will contribute to the achievement of the proposed State 
     goals and State benchmarks identified in the State plan for 
     the State submitted under section 104;
       (2) the extent to which workforce employment activities and 
     workforce education activities delivered through the Job 
     Corps center are directly linked to the workforce development 
     needs of the industry sectors most important to the economic 
     competitiveness of the State; and
       (3) an implementation strategy to ensure that all enrollees 
     assigned to the Job Corps center will have access to services 
     through the one-stop delivery of core services described in 
     section 106(a)(2) by the State.

     SEC. 231. STANDARDS OF CONDUCT.

       (a) Provision and Enforcement.--The State shall provide, 
     and directors of Job Corps center shall stringently enforce, 
     standards of conduct within the centers. Such standards of 
     conduct shall include provisions forbidding violence, drug 
     abuse, and other criminal activity.
       (b) Disciplinary Measures.--To promote the proper moral and 
     disciplinary conditions in the Job Corps, the directors of 
     Job Corps centers shall take appropriate disciplinary 
     measures against enrollees. If such a director determines 
     that an enrollee has committed a violation of the standards 
     of conduct, the director shall dismiss the enrollee from the 
     Corps if the director determines that the retention of the 
     enrollee in the Corps will jeopardize the enforcement of such 
     standards or diminish the opportunities of other enrollees. 
     If the director determines that an enrollee has engaged in an 
     incident involving violence, drug abuse, or other criminal 
     activity, the director shall immediately dismiss the enrollee 
     from the Corps.
       (c) Appeal.--A disciplinary measure taken by a director 
     under this section shall be subject to expeditious appeal in 
     accordance with procedures established by the State.

     SEC. 232. COMMUNITY PARTICIPATION.

       The State shall encourage and cooperate in activities to 
     establish a mutually beneficial relationship between Job 
     Corps centers in the State and nearby communities. The 
     activities may include the use of any local workforce 
     development boards established in the State under section 
     118(b) to provide a mechanism for joint discussion of common 
     problems and for planning programs of mutual interest.

     SEC. 233. COUNSELING AND PLACEMENT.

       The State shall ensure that enrollees assigned to Job Corps 
     centers in the State receive counseling and job placement 
     services, which shall be 

[[Page S 14816]]
     provided, to the maximum extent practicable, through the delivery of 
     core services described in section 106(a)(2).

     SEC. 234. LEASES AND SALES OF CENTERS.

       (a) Leases.--
       (1) In general.--The Secretary of Labor shall offer to 
     enter into a lease with each State that has an approved State 
     plan submitted under section 104 and in which 1 or more Job 
     Corps centers are located.
       (2) Nominal consideration.--Under the terms of the lease, 
     the Secretary of Labor shall lease the Job Corps centers in 
     the State to the State in return for nominal consideration.
       (3) Indemnity agreement.--To be eligible to lease such a 
     center, a State shall enter into an agreement to hold 
     harmless and indemnify the United States from any liability 
     or claim for damages or injury to any person or property 
     arising out of the lease.
       (b) Sales.--Notwithstanding the Federal Property and 
     Administrative Services Act of 1949 (40 U.S.C. 471 et seq.), 
     the Secretary of Labor shall offer each State described in 
     subsection (a)(1) the opportunity to purchase the Job Corps 
     centers in the State in return for nominal consideration.

     SEC. 235. CLOSURE OF JOB CORPS CENTERS.

       (a) National Job Corps Audit.--Not later than March 31, 
     1997, the Governing Board shall conduct an audit of the 
     activities carried out under part B of title IV of the Job 
     Training Partnership Act (29 U.S.C. 1691 et seq.), and submit 
     to the appropriate committees of Congress a report containing 
     the results of the audit, including information indicating--
       (1) the amount of funds expended for fiscal year 1996 to 
     carry out activities under such part, for each State and for 
     the United States;
       (2) for each Job Corps center funded under such part 
     (referred to in this subtitle as a ``Job Corps center''), the 
     amount of funds expended for fiscal year 1996 under such part 
     to carry out activities related to the direct operation of 
     the center, including funds expended for student training, 
     outreach or intake activities, meals and lodging, student 
     allowances, medical care, placement or settlement activities, 
     and administration;
       (3) for each Job Corps center, the amount of funds expended 
     for fiscal year 1996 under such part through contracts to 
     carry out activities not related to the direct operation of 
     the center, including funds expended for student travel, 
     national outreach, screening, and placement services, 
     national vocational training, and national and regional 
     administrative costs;
       (4) for each Job Corps center, the amount of funds expended 
     for fiscal year 1996 under such part for facility 
     construction, rehabilitation, and acquisition expenses; and
       (5) the amount of funds required to be expended under such 
     part to complete each new or proposed Job Corps center, and 
     to rehabilitate and repair each existing Job Corps center, as 
     of the date of the submission of the report.
       (b) Recommendations of Governing Board.--
       (1) Recommendations.--The Governing Board shall, based on 
     the results of the audit described in subsection (a), make 
     recommendations to the Secretary of Labor, including 
     identifying 25 Job Corps centers to be closed by September 
     30, 1997.
       (2) Considerations.--
       (A) In general.--In determining whether to recommend that 
     the Secretary of Labor close a Job Corps center, the 
     Governing Board shall consider whether the center--
       (i) has consistently received low performance measurement 
     ratings under the Department of Labor or the Office of 
     Inspector General Job Corps rating system;
       (ii) is among the centers that have experienced the highest 
     number of serious incidents of violence or criminal activity 
     in the past 5 years;
       (iii) is among the centers that require the largest funding 
     for renovation or repair, as specified in the Department of 
     Labor Job Corps Construction/Rehabilitation Funding Needs 
     Survey, or for rehabilitation or repair, as reflected in the 
     portion of the audit described in subsection (a)(5);
       (iv) is among the centers for which the highest relative or 
     absolute fiscal year 1996 expenditures were made, for any of 
     the categories of expenditures described in paragraph (2), 
     (3), or (4) of subsection (a), as reflected in the audit 
     described in subsection (a);
       (v) is among the centers with the least State and local 
     support; or
       (vi) is among the centers with the lowest rating on such 
     additional criteria as the Governing Board may determine to 
     be appropriate.
       (B) Coverage of states and regions.--Notwithstanding 
     subparagraph (A), the Governing Board shall not recommend 
     that the Secretary of Labor close the only Job Corps center 
     in a State or a region of the United States.
       (C) Allowance for new job corps centers.--Notwithstanding 
     any other provision of this section, if the planning or 
     construction of a Job Corps center that received Federal 
     funding for fiscal year 1994 or 1995 has not been completed 
     by the date of enactment of this Act--
       (i) the appropriate entity may complete the planning or 
     construction and begin operation of the center; and
       (ii) the Governing Board shall not evaluate the center 
     under this Act sooner than 3 years after the first date of 
     operation of the center.
       (3)  Report.--Not later than June 30, 1997, the Governing 
     Board shall submit a report to the Secretary of Labor, which 
     shall contain a detailed statement of the findings and 
     conclusions of the Governing Board resulting from the audit 
     described in subsection (a) together with the recommendations 
     described in paragraph (1).
       (c) Closure.--The Secretary of Labor shall, after reviewing 
     the report submitted under subsection (b)(3), close 25 Job 
     Corps centers by September 30, 1997.

     SEC. 236. INTERIM OPERATING PLANS FOR JOB CORPS CENTERS.

       Part B of title IV of the Job Training Partnership Act (29 
     U.S.C. 1691 et seq.) is amended by inserting after section 
     439 the following section:

     ``SEC. 439A. OPERATING PLAN.

       ``(a) Submission of Plan.--To be eligible to operate a Job 
     Corps center and receive assistance under this part for 
     fiscal year 1997, an entity shall prepare and submit to the 
     Secretary and the Governor of the State in which the center 
     is located, and obtain the approval of the Secretary for, an 
     operating plan that shall include, at a minimum, information 
     indicating--
       ``(1) in quantifiable terms, the extent to which the center 
     will contribute to the achievement of the proposed State 
     goals and State benchmarks identified in the interim plan for 
     the State submitted under section 211 of the Workforce 
     Development Act of 1995;
       ``(2) the extent to which workforce employment activities 
     and workforce education activities delivered through the Job 
     Corps center are directly linked to the workforce development 
     needs of the industry sectors most important to the economic 
     competitiveness of the State; and
       ``(3) an implementation strategy to ensure that all 
     enrollees assigned to the Job Corps center will have access 
     to services through the one-stop delivery of core services 
     described in section 106(a)(2) by the State as identified in 
     the interim plan.
       ``(b) Submission of Comments.--Not later than 30 days after 
     receiving an operating plan described in subsection (a), the 
     Governor of the State in which the center is located may 
     submit comments on the plan to the Secretary.
       ``(c) Approval.--The Secretary shall not approve an 
     operating plan described in subsection (a) for a center if 
     the Secretary determines that the activities proposed to be 
     carried out through the center are not sufficiently 
     integrated with the activities carried out through the 
     statewide system of the State in which the center is 
     located.''.

     SEC. 237. EFFECTIVE DATE.

       (a) In General.--Except as provided in subsection (b), this 
     chapter shall take effect on July 1, 1998.
       (b) Interim Provisions.--Sections 234 and 235, and the 
     amendment made by section 236, shall take effect on the date 
     of enactment of this Act.

  CHAPTER 2--OTHER WORKFORCE PREPARATION ACTIVITIES FOR AT-RISK YOUTH

     SEC. 241. WORKFORCE PREPARATION ACTIVITIES FOR AT-RISK YOUTH.

       (a) In General.--For program year 1998 and each subsequent 
     program year, the Governing Board shall make allotments under 
     subsection (c) to States to assist the States in paying for 
     the cost of carrying out workforce preparation activities for 
     at-risk youth, as described in this section.
       (b) State Use of Funds.--
       (1) Core activities.--The State shall use a portion of the 
     funds made available to the State through an allotment 
     received under subsection (c) to establish and operate Job 
     Corps centers as described in chapter 1, if a center located 
     in the State received assistance under part B of title IV of 
     the Job Training Partnership Act for fiscal year 1996 and was 
     not closed in accordance with section 235.
       (2) Permissible activities.--The State may use a portion of 
     the funds described in paragraph (1) to--
       (A) make grants to eligible entities, as described in 
     subsection (e), to assist the entities in carrying out 
     innovative programs to assist out-of-school at-risk youth in 
     participating in school-to-work activities;
       (B) make grants to eligible entities, as described in 
     subsection (e), to assist the entities in providing work-
     based learning as a component of school-to-work activities, 
     including summer jobs linked to year-round school-to-work 
     programs; and
       (C) carry out other workforce development activities 
     specifically for at-risk youth.
       (c) Allotments.--
       (1) In general.--The Governing Board shall allot to each 
     State an amount equal to the total of--
       (A) the amount made available to the State under paragraph 
     (2); and
       (B) the amounts made available to the State under 
     subparagraphs (C), (D), and (E) of paragraph (3).
       (2) Allotments based on fiscal year 1996 appropriations.--
     Using a portion of the funds appropriated under subsection 
     (g) for a fiscal year, the Governing Board shall make 
     available to each State the amount that Job Corps centers in 
     the State expended for fiscal year 1996 under part B of title 
     IV of the Job Training Partnership Act to carry out 
     activities related to the direct operation of the centers, as 
     determined under section 235(a)(2).
       (3) Allotments based on populations.--
       (A) Definitions.--As used in this paragraph:
       (i) Individual in poverty.--The term ``individual in 
     poverty'' means an individual who--

       (I) is not less than age 18;
       (II) is not more than age 64; and
       (III) is a member of a family (of 1 or more members) with 
     an income at or below the poverty line.

       (ii) Poverty line.--The term ``poverty line'' means the 
     poverty line (as defined by the Office of Management and 
     Budget, and revised annually in accordance with section 
     673(2) of the Community Services Block Grant Act (42 U.S.C. 
     9902(2)) applicable to a family of the size involved, using 
     the most recent available data provided by the Bureau of the 
     Census, prior to the program year for which the allotment is 
     made, and applying the definition of poverty used by the 
     Bureau of the Census in compiling the 1990 decennial census.

[[Page S 14817]]

       (B) Total allotments.--The Governing Board shall use the 
     remainder of the funds that are appropriated under subsection 
     (g) for a fiscal year, and that are not made available under 
     paragraph (2), to make amounts available under this 
     paragraph.
       (C) Unemployed individuals.--From funds equal to 33\1/3\ 
     percent of such remainder, the Governing Board shall make 
     available to each State an amount that bears the same 
     relationship to such funds as the average number of 
     unemployed individuals (as determined by the Secretary of 
     Labor for the most recent 24-month period for which data are 
     available, prior to the program year for which the allotment 
     is made) in the State bears to the average number of 
     unemployed individuals (as so determined) in the United 
     States.
       (D) Individuals in poverty.--From funds equal to 33\1/3\ 
     percent of such remainder, the Governing Board shall make 
     available to each State an amount that bears the same 
     relationship to such funds as the total number of individuals 
     in poverty in the State bears to the total number of 
     individuals in poverty in the United States.
       (E) At-risk youth.--From funds equal to 33\1/3\ percent of 
     such remainder, the Governing Board shall make available to 
     each State an amount that bears the same relationship to such 
     funds as the total number of at-risk youth in the State bears 
     to the total number of at-risk youth in the United States.
       (d) State Plan.--
       (1) Information.--To be eligible to receive an allotment 
     under subsection (c), a State shall include, in the State 
     plan to be submitted under section 104, information 
     describing the allocation within the State of the funds made 
     available through the allotment, and how the programs and 
     activities described in subsection (b)(2) will be carried out 
     to meet the State goals and reach the State benchmarks.
       (2) Limitation.--The Governing Board may not require a 
     State to include the information described in paragraph (1) 
     in the State plan to be submitted under section 104 to be 
     eligible to receive an allotment under section 102.
       (e) Application.--To be eligible to receive a grant under 
     subparagraph (A) or (B) of subsection (b)(2) from a State, an 
     entity shall prepare and submit to the Governor of the State 
     an application at such time, in such manner, and containing 
     such information as the Governor may require.
       (f) Within State Distribution.--Of the funds allotted to a 
     State under subsection (c)(3) for workforce preparation 
     activities for at-risk youth for a program year--
       (1) 15 percent shall be reserved by the Governor to carry 
     out such activities through the statewide system; and
       (2) 85 percent shall be distributed to local entities to 
     carry out such activities through the statewide system.
       (g) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this subtitle, $2,100,000,000 
     for each of fiscal years 1998 through 2001.
       (h) Effective Date.--This chapter shall take effect on July 
     1, 1998.
     Subtitle D--Interim Administration of School-to-Work Programs

     SEC. 251. ADMINISTRATION OF SCHOOL-TO-WORK PROGRAMS.

       (a) In General.--Any provision of the School-to-Work 
     Opportunities Act of 1994 (20 U.S.C. 6101 et seq.) that 
     grants authority to the Secretary of Labor or the Secretary 
     of Education shall be considered to grant the authority to 
     the Governing Board.
       (b) Effective Date.--Subsection (a) shall take effect on 
     October 1, 1996.
     Subtitle E--Amendments Relating to Certain Authorizations of 
                             Appropriations

     SEC. 261. OLDER AMERICAN COMMUNITY SERVICE EMPLOYMENT ACT.

       Section 508(a)(1) of the Older American Community Service 
     Employment Act (42 U.S.C. 3056f(a)(1)) is amended by striking 
     ``for fiscal years 1993, 1994, and 1995'' and inserting ``for 
     each of fiscal years 1993 through 1998''.

     SEC. 262. CARL D. PERKINS VOCATIONAL AND APPLIED TECHNOLOGY 
                   EDUCATION ACT.

       (a) In General.--Section 3(a) of the Carl D. Perkins 
     Vocational and Applied Technology Education Act (20 U.S.C. 
     2302(a)) is amended by striking ``for each of the fiscal 
     years'' and all that follows through ``1995'' and inserting 
     ``for each of fiscal years 1992 through 1998''.
       (b) Research.--Section 404(d) of such Act (20 U.S.C. 
     2404(d)) is amended by striking ``for each of the fiscal 
     years'' and all that follows through ``1995'' and inserting 
     ``for each of fiscal years 1992 through 1998''.

     SEC. 263. ADULT EDUCATION ACT.

       (a) In General.--Section 313(a) of the Adult Education Act 
     (20 U.S.C. 1201b(a)) is amended by striking ``for each of the 
     fiscal years'' and all that follows through ``1995'' and 
     inserting ``for each of fiscal years 1993 through 1998''.
       (b) State Literacy Resource Centers.--Section 356(k) of 
     such Act (20 U.S.C. 1208aa(k)) is amended by striking ``for 
     each of the fiscal years 1994 and 1995'' and inserting ``for 
     each of fiscal years 1994 through 1998''.
       (c) Business, Industry, Labor, and Education Partnerships 
     for Workplace Literacy.--Section 371(e)(1) of such Act (20 
     U.S.C. 1211(e)(1)) is amended by striking ``for each of the 
     fiscal years'' and all that follows through ``1995'' and 
     inserting ``for each of fiscal years 1993 through 1998''.
       (d) National Institute for Literacy.--Section 384(n)(1) of 
     such Act (20 U.S.C. 1213c(n)(1)) is amended by striking ``for 
     each of the fiscal years'' and all that follows through 
     ``1996'' and inserting ``for each of fiscal years 1992 
     through 1998''.
                     TITLE III--NATIONAL ACTIVITIES

     SEC. 301. FEDERAL PARTNERSHIP.

       (a) Establishment.--There is established a Workforce 
     Development Partnership that shall administer the activities 
     established under this Act. The Federal Partnership shall be 
     a Government corporation, as defined in section 103 of title 
     5, United States Code. The principal office of the Federal 
     Partnership shall be located in the District of Columbia.
       (b) Governing Board.--
       (1) Composition.--There shall be in the Federal Partnership 
     a Governing Board that shall be composed of 13 individuals, 
     including--
       (A) 7 individuals who are representative of business and 
     industry in the United States, appointed by the President by 
     and with the advice and consent of the Senate;
       (B) 2 individuals who are representative of labor and 
     workers in the United States, appointed by the President by 
     and with the advice and consent of the Senate;
       (C) 2 individuals who are representative of education 
     providers, 1 of whom is a State or local adult education 
     provider and 1 of whom is a State or local vocational 
     education provider, appointed by the President by and with 
     the advice and consent of the Senate; and
       (D) 2 Governors, representing different political parties, 
     appointed by the President by and with the advice and consent 
     of the Senate.
       (2) Terms.--Each member of the Governing Board shall serve 
     for a term of 3 years, except that, as designated by the 
     President--
       (A) 5 of the members first appointed to the Governing Board 
     shall serve for a term of 2 years;
       (B) 4 of the members first appointed to the Governing Board 
     shall serve for a term of 3 years; and
       (C) 4 of the members first appointed to the Governing Board 
     shall serve for a term of 4 years.
       (3) Vacancies.--Any vacancy in the Governing Board shall 
     not affect the powers of the Governing Board, but shall be 
     filled in the same manner as the original appointment. Any 
     member appointed to fill such a vacancy shall serve for the 
     remainder of the term for which the predecessor of such 
     member was appointed.
       (4) Duties and powers.--
       (A) Powers.--The powers of the Federal Partnership shall be 
     vested in the Governing Board.
       (B) Duties.--The Governing Board shall--
       (i) oversee the development and implementation of the 
     nationwide integrated labor market information system 
     described in section 303, and the job placement 
     accountability system described in section 131(d);
       (ii) establish model benchmarks for each of the benchmarks 
     referred to in paragraph (1), (2), or (3) of section 131(c), 
     at achievable levels based on existing (as of the date of the 
     establishment of the benchmarks) workforce development 
     efforts in the States;
       (iii) negotiate State benchmarks with States in accordance 
     with section 131(c)(5);
       (iv) review and approve plans under section 104, and make 
     allotments under section 102;
       (v) receive and review reports described in section 131(a);
       (vi) prepare and submit to the appropriate committees of 
     Congress an annual report on the absolute and relative 
     performance of States toward reaching the State benchmarks;
       (vii) award annual incentive grants under section 132(a);
       (viii) initiate sanctions described in section 132(b);
       (ix) disseminate information to States on the best 
     practices used by States to establish and carry out 
     activities through statewide systems, including model 
     programs to provide structured work and learning experiences 
     for welfare recipients;
       (x) perform the duties specified for the Governing Board in 
     title II, including subtitle C of title II (relating to the 
     Job Corps);
       (xi) review all federally funded programs providing 
     workforce development activities, other than programs carried 
     out under this Act, and submit recommendations to Congress on 
     how the federally funded programs could be integrated into 
     the statewide systems of the States, including 
     recommendations on the development of common terminology for 
     activities and services provided through the programs;
       (xii) review and approve the transition workplans developed 
     by the Secretary of Labor and the Secretary of Education in 
     accordance with sections 305 and 306; and
       (xiii) oversee all activities of the Federal Partnership.
       (C) Final determinations.--Notwithstanding any other 
     provision of this Act, the Secretary of Labor and the 
     Secretary of Education shall jointly make the final 
     determinations with respect to the approval of State plans, 
     and the disbursement of funds, under this Act.
       (5) Chairperson.--The position of Chairperson of the 
     Governing Board shall rotate annually among the appointed 
     members described in paragraph (1)(A).
       (6) Meetings.--The Governing Board shall meet at the call 
     of the Chairperson but not less often than 4 times during 
     each calendar year. Five members of the Governing Board shall 
     constitute a quorum. All decisions of the Governing Board 
     with respect to the exercise of the duties and powers of the 
     Governing Board shall be made by a majority vote of the 
     members of the Governing Board.
       (7) Compensation and travel expenses.--
       (A) Compensation.--Each member of the Governing Board who 
     is not an officer or employee of the Federal Government shall 
     be compensated at a rate to be fixed by the President but not 
     to exceed the daily equivalent of the maximum rate authorized 
     for a position above GS-15 of the General Schedule under 
     section 5108 of title 5, United States Code, for each day 
     (including travel time) during which such member is engaged 
     in the performance of the duties of the Governing Board. All 
     members of the Governing 

[[Page S 14818]]
     Board who are officers or employees of the United States shall serve 
     without compensation in addition to compensation received for 
     their services as officers or employees of the United States.
       (B) Expenses.--While away from their homes or regular 
     places of business on the business of the Governing Board, 
     members of such Governing 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, for persons 
     employed intermittently in the Government service.
       (8) Date of appointment.--The Governing Board shall be 
     appointed not later than September 30, 1996.
       (c) Director.--
       (1) In general.--There shall be in the Federal Partnership 
     a Director, who shall be appointed by the President, by and 
     with the advice and consent of the Senate.
       (2) Compensation.--The Director shall be compensated at the 
     rate provided for level IV of the Executive Schedule under 
     section 5315 of title 5, United States Code.
       (3) Duties.--The Director shall--
       (A) make recommendations to the Governing Board regarding 
     the activities described in subsection (b)(4)(B); and
       (B) carry out the general administration and enforcement of 
     this Act.
       (4) Date of appointment.--The Director shall be appointed 
     not later than September 30, 1996.
       (d) Detail of Government Employees.--Any Federal Government 
     employee may be detailed to the Federal Partnership without 
     reimbursement, and such detail shall be without interruption 
     or loss of civil service or privilege. The Secretary of 
     Education, the Secretary of Labor, and the Secretary of 
     Health and Human Services shall detail a sufficient number of 
     employees to the Federal Partnership for the period beginning 
     October 1, 1996 and ending June 30, 1998 to enable the 
     Federal Partnership to carry out the functions of the Federal 
     Partnership during such period.
       (e) Inspector General.--There shall be an Office of the 
     Inspector General in the Federal Partnership. The Office 
     shall be headed by an Inspector General appointed in 
     accordance with the Inspector General Act of 1978 (5 U.S.C. 
     App.). The Inspector General shall carry out the duties 
     prescribed in such Act.
       (f) Authorization of Appropriations.--There is authorized 
     to be appropriated for fiscal years 1996 and 1997 $500,000 to 
     the Governing Board for the administration of this Act.
       (g) Conforming Amendment.--Section 11 of the Inspector 
     General Act of 1978 (5 U.S.C. App.) is amended--
       (1) in paragraph (1), by inserting ``the Governing Board of 
     the Workforce Development Partnership;'' after ``the Attorney 
     General;''; and
       (2) in paragraph (2), by inserting ``the Workforce 
     Development Partnership;'' after ``Treasury;''.

     SEC. 302. NATIONAL ASSESSMENT OF VOCATIONAL EDUCATION 
                   PROGRAMS.

       (a) In General.--The Assistant Secretary for Educational 
     Research and Improvement (referred to in this section as the 
     ``Assistant Secretary'') shall conduct a national assessment 
     of vocational education programs assisted under this Act, 
     through studies and analyses conducted independently through 
     competitive awards.
       (b) Independent Advisory Panel.--The Assistant Secretary 
     shall appoint an independent advisory panel, consisting of 
     vocational education administrators, educators, researchers, 
     and representatives of business, industry, labor, and other 
     relevant groups, to advise the Assistant Secretary on the 
     implementation of such assessment, including the issues to be 
     addressed and the methodology of the studies involved, and 
     the findings and recommendations resulting from the 
     assessment. The panel, in the discretion of the panel, may 
     submit to Congress an independent analysis of the findings 
     and recommendations resulting from the assessment. The 
     Federal Advisory Committee Act (5 U.S.C. App.) shall not 
     apply to the panel established under this subsection.
       (c) Contents.--The assessment required under subsection (a) 
     shall include descriptions and evaluations of--
       (1) the effect of this Act on State and tribal 
     administration of vocational education programs and on local 
     vocational education practices, including the capacity of 
     State, tribal, and local vocational education systems to 
     address the purposes of this Act;
       (2) expenditures at the Federal, State, tribal, and local 
     levels to address program improvement in vocational 
     education, including the impact of Federal allocation 
     requirements (such as within-State distribution formulas) on 
     the delivery of services;
       (3) preparation and qualifications of teachers of 
     vocational and academic curricula in vocational education 
     programs, as well as shortages of such teachers;
       (4) participation in vocational education programs;
       (5) academic and employment outcomes of vocational 
     education, including analyses of--
       (A) the effect of educational reform on vocational 
     education;
       (B) the extent and success of integration of academic and 
     vocational curricula;
       (C) the success of the school-to-work transition; and
       (D) the degree to which vocational training is relevant to 
     subsequent employment;
       (6) employer involvement in, and satisfaction with, 
     vocational education programs;
       (7) the effect of benchmarks, performance measures, and 
     other measures of accountability on the delivery of 
     vocational education services; and
       (8) the degree to which minority students are involved in 
     vocational student organizations.
       (d) Consultation.--
       (1) In general.--The Secretary of Education shall consult 
     with the Committee on Economic and Educational Opportunities 
     of the House of Representatives and the Committee on Labor 
     and Human Resources of the Senate in the design and 
     implementation of the assessment required under subsection 
     (a).
       (2) Reports.--The Secretary of Education shall submit to 
     Congress--
       (A) an interim report regarding the assessment on or before 
     January 1, 2000; and
       (B) a final report, summarizing all studies and analyses 
     that relate to the assessment and that are completed after 
     the assessment, on or before July 1, 2000.
       (3) Prohibition.--Notwithstanding any other provision of 
     law or regulation, the reports required by this subsection 
     shall not be subject to any review outside of the Office of 
     Educational Research and Improvement before their transmittal 
     to Congress, but the President, the Secretary, and the 
     independent advisory panel established under subsection (b) 
     may make such additional recommendations to Congress with 
     respect to the assessment as the President, Secretary, or 
     panel determine to be appropriate.
       (e) Effective Date.--This section shall take effect on July 
     1, 1998.

     SEC. 303. LABOR MARKET INFORMATION.

       (a) Federal Responsibilities.--The Governing Board, in 
     accordance with the provisions of this section, shall oversee 
     the development, maintenance, and continuous improvement of a 
     nationwide integrated labor market information system that 
     shall include--
       (1) statistical data from cooperative statistical survey 
     and projection programs and data from administrative 
     reporting systems, that, taken together, shall enumerate, 
     estimate, and project the supply and demand for labor at the 
     substate, State, and national levels in a timely manner, 
     including data on--
       (A) the demography, socioeconomic characteristics, and 
     current employment status of the substate, State, and 
     national populations (as of the date of the collection of the 
     data), including self-employed, part-time, and seasonal 
     workers;
       (B) job vacancies, education and training requirements, 
     skills, wages, benefits, working conditions, and industrial 
     distribution, of occupations, as well as current and 
     projected employment opportunities and trends by industry and 
     occupation;
       (C) the educational attainment, training, skills, skill 
     levels, and occupations of the populations;
       (D) information maintained in a longitudinal manner on the 
     quarterly earnings, establishment and industry affiliation, 
     and geographic location of employment for all individuals for 
     whom the information is collected by the States; and
       (E) the incidence, industrial and geographical location, 
     and number of workers displaced by permanent layoffs and 
     plant closings;
       (2) State and substate area employment and consumer 
     information (which shall be current, comprehensive, 
     automated, accessible, easy to understand, and in a form 
     useful for facilitating immediate employment, entry into 
     education and training programs, and career exploration) on--
       (A) job openings, locations, hiring requirements, and 
     application procedures, including profiles of industries in 
     the local labor market that describe the nature of work 
     performed, employment requirements, and patterns in wages and 
     benefits;
       (B) jobseekers, including the education, training, and 
     employment experience of the jobseekers; and
       (C) the cost and effectiveness of providers of workforce 
     employment activities, workforce education activities, and 
     flexible workforce activities, including the percentage of 
     program completion, acquisition of skills to meet industry-
     recognized skill standards, continued education, job 
     placement, and earnings, by participants, and other 
     information that may be useful in facilitating informed 
     choices among providers by participants;
       (3) technical standards for labor market information that 
     will--
       (A) ensure compatibility of the information and the ability 
     to aggregate the information from substate areas to State and 
     national levels;
       (B) support standardization and aggregation of the data 
     from administrative reporting systems;
       (C) include--
       (i) classification and coding systems for industries, 
     occupations, skills, programs, and courses;
       (ii) nationally standardized definitions of labor market 
     terms, including terms related to State benchmarks 
     established pursuant to section 131(c);
       (iii) quality control mechanisms for the collection and 
     analysis of labor market information; and
       (iv) common schedules for collection and dissemination of 
     labor market information; and
       (D) eliminate gaps and duplication in statistical 
     undertakings, with a high priority given to the systemization 
     of wage surveys;
       (4) an analysis of data and information described in 
     paragraphs (1) and (2) for uses such as--
       (A) national, State, and substate area economic 
     policymaking;
       (B) planning and evaluation of workforce development 
     activities;
       (C) the implementation of Federal policies, including the 
     allocation of Federal funds to States and substate areas; and
       (D) research on labor market dynamics;
       (5) dissemination mechanisms for data and analysis, 
     including mechanisms that may be standardized among the 
     States; and

[[Page S 14819]]

       (6) programs of technical assistance for States and 
     substate areas in the development, maintenance, utilization, 
     and continuous improvement of the data, information, 
     standards, analysis, and dissemination mechanisms, described 
     in paragraphs (1) through (5).
       (b) Joint Federal-State Responsibilities.--
       (1) In general.--The nationwide integrated labor market 
     information system shall be planned, administered, overseen, 
     and evaluated through a cooperative governance structure 
     involving the Federal Government and the States receiving 
     financial assistance under this Act.
       (2) Annual plan.--The Governing Board shall, with the 
     assistance of the Bureau of Labor Statistics and other 
     Federal agencies, where appropriate, prepare an annual plan 
     that shall be the mechanism for achieving the cooperative 
     Federal-State governance structure for the nationwide 
     integrated labor market information system. The plan shall--
       (A) establish goals for the development and improvement of 
     a nationwide integrated labor market information system based 
     on information needs for achieving economic growth and 
     productivity, accountability, fund allocation equity, and an 
     understanding of labor market characteristics and dynamics;
       (B) describe the elements of the system, including--
       (i) standards, definitions, formats, collection 
     methodologies, and other necessary system elements, for use 
     in collecting the data and information described in 
     paragraphs (1) and (2) of subsection (a); and
       (ii) assurances that--

       (I) data will be sufficiently timely and detailed for uses 
     including the uses described in subsection (a)(4);
       (II) administrative records will be standardized to 
     facilitate the aggregation of data from substate areas to 
     State and national levels and to support the creation of new 
     statistical series from program records; and
       (III) paperwork and reporting requirements on employers and 
     individuals will be reduced;

       (C) recommend needed improvements in administrative 
     reporting systems to be used for the nationwide integrated 
     labor market information system;
       (D) describe the current spending on integrated labor 
     market information activities from all sources, assess the 
     adequacy of the funds spent, and identify the specific budget 
     needs of the Federal Government and States with respect to 
     implementing and improving the nationwide integrated labor 
     market information system;
       (E) develop a budget for the nationwide integrated labor 
     market information system that--
       (i) accounts for all funds described in subparagraph (D) 
     and any new funds made available pursuant to this Act; and
       (ii) describes the relative allotments to be made for--

       (I) operating the cooperative statistical programs pursuant 
     to subsection (a)(1);
       (II) developing and providing employment and consumer 
     information pursuant to subsection (a)(2);
       (III) ensuring that technical standards are met pursuant to 
     subsection (a)(3); and
       (IV) providing the analysis, dissemination mechanisms, and 
     technical assistance under paragraphs (4), (5), and (6) of 
     subsection (a), and matching data;

       (F) describe the involvement of States in developing the 
     plan by holding formal consultations conducted in cooperation 
     with representatives of the Governors of each State or the 
     State workforce development board described in section 105, 
     where appropriate, pursuant to a process established by the 
     Governing Board; and
       (G) provide for technical assistance to the States for the 
     development of statewide comprehensive labor market 
     information systems described in subsection (c), including 
     assistance with the development of easy-to-use software and 
     hardware, or uniform information displays.
     For purposes of applying Office of Management and Budget 
     Circular A-11 to determine persons eligible to participate in 
     deliberations relating to budget issues for the development 
     of the plan, the representatives of the Governors of each 
     State and the State workforce development board described in 
     subparagraph (F) shall be considered to be employees of the 
     Department of Labor.
       (c) State Responsibilities.--
       (1) Designation of state agency.--In order to receive 
     Federal financial assistance under this Act, the Governor of 
     a State shall--
       (A) establish an interagency process for the oversight of a 
     statewide comprehensive labor market information system and 
     for the participation of the State in the cooperative 
     Federal-State governance structure for the nationwide 
     integrated labor market information system; and
       (B) designate a single State agency or entity within the 
     State to be responsible for the management of the statewide 
     comprehensive labor market information system.
       (2) Duties.--In order to receive Federal financial 
     assistance under this Act, the State agency or entity within 
     the State designated under paragraph (1)(B) shall--
       (A) consult with employers and local workforce development 
     boards described in section 118(b), where appropriate, about 
     the labor market relevance of the data to be collected and 
     displayed through the statewide comprehensive labor market 
     information system;
       (B) develop, maintain, and continuously improve the 
     statewide comprehensive labor market information system, 
     which shall--
       (i) include all of the elements described in paragraphs 
     (1), (2), (3), (4), (5), and (6) of subsection (a); and
       (ii) provide the consumer information described in clauses 
     (v) and (vi) of section 106(a)(2)(B) in a manner that shall 
     be responsive to the needs of business, industry, workers, 
     and jobseekers;
       (C) ensure the performance of contract and grant 
     responsibilities for data collection, analysis, and 
     dissemination, through the statewide comprehensive labor 
     market information system;
       (D) conduct such other data collection, analysis, and 
     dissemination activities to ensure that State and substate 
     area labor market information is comprehensive;
       (E) actively seek the participation of other State and 
     local agencies, with particular attention to State education, 
     economic development, human services, and welfare agencies, 
     in data collection, analysis, and dissemination activities in 
     order to ensure complementarity and compatibility among data;
       (F) participate in the development of the national annual 
     plan described in subsection (b)(2); and
       (G) ensure that the matches required for the job placement 
     accountability system by section 131(d)(2)(A) are made for 
     the State and for other States.
       (3) Rule of construction.--Nothing in this Act shall be 
     construed as limiting the ability of a State agency to 
     conduct additional data collection, analysis, and 
     dissemination activities with State funds or with Federal 
     funds from sources other than this Act.
       (d) Effective Date.--This section shall take effect on July 
     1, 1998.

     SEC. 304. NATIONAL CENTER FOR RESEARCH IN EDUCATION AND 
                   WORKFORCE DEVELOPMENT.

       (a) Grants Authorized.--From amounts made available under 
     section 134(b)(5), the Governing Board is authorized--
       (1) for the period beginning on the date of enactment of 
     this Act and ending on December 31, 1997, to support a 
     national center that was established under section 404 of the 
     Carl D. Perkins Vocational and Applied Technology Education 
     Act and that was in existence on the day before the date of 
     enactment of this Act, in accordance with such section 404 
     (as such section was in effect on the day before the date of 
     enactment of this Act); and
       (2) for the period after December 31, 1997, to award a 
     grant, on a competitive basis, to an institution of higher 
     education, public or private nonprofit organization or 
     agency, or a consortium of such institutions, organizations, 
     or agencies, to enable such institution, organization, 
     agency, or consortium to establish a national center to carry 
     out the activities described in subsection (b).
       (b) Authorized Activities.--Grant funds made available 
     under this section shall be used by the national center 
     assisted under subsection (a)(2)--
       (1) to increase the effectiveness and improve the 
     implementation of workforce development programs, including 
     conducting research and development and providing technical 
     assistance with respect to--
       (A) combining academic and vocational education;
       (B) connecting classroom instruction with work-based 
     learning;
       (C) creating a continuum of educational programs that 
     provide multiple exit points for employment, which may 
     include changes or development of instructional materials or 
     curriculum;
       (D) establishing high quality support services for all 
     students to ensure access to workforce development programs, 
     educational success, and job placement assistance;
       (E) developing new models for remediation of basic academic 
     skills, which models shall incorporate appropriate 
     instructional methods, rather than using rote and didactic 
     methods;
       (F) identifying ways to establish links among educational 
     and job training programs at the State and local levels;
       (G) developing new models for career guidance, career 
     information, and counseling services;
       (H) identifying economic and labor market changes that will 
     affect workforce needs;
       (I) conducting preparation of teachers and professionals 
     who work with programs funded under this Act; and
       (J) obtaining information on practices in other countries 
     that may be adapted for use in the United States;
       (2) to provide assistance to States and local recipients of 
     assistance under this Act in developing and using systems of 
     performance measures and standards for improvement of 
     programs and services; and
       (3) to maintain a clearinghouse that will provide data and 
     information to Federal, State, and local organizations and 
     agencies about the condition of statewide systems and 
     programs funded under this Act, which data and information 
     shall be disseminated in a form that is useful to 
     practitioners and policymakers.
       (c) Other Activities.--The Governing Board may request that 
     the national center assisted under subsection (a)(2) conduct 
     activities not described in subsection (b), or study topics 
     not described in subsection (b), as the Governing Board 
     determines to be necessary to carry out this Act.
       (d) Identification of Current Needs.--The national center 
     assisted under subsection (a)(2) shall identify current needs 
     (as of the date of the identification) for research and 
     technical assistance through a variety of sources including a 
     panel of Federal, State, and local level practitioners.
       (e) Summary Report.--The national center assisted under 
     subsection (a)(2) shall annually prepare and submit to the 
     Governing Board and Congress a report summarizing the 
     research findings obtained, and the results of development 
     and technical assistance activities carried out, under this 
     section.
       (f) Definition.--As used in this section, the term 
     ``institution of higher education'' has the meaning given the 
     term in section 1201(a) of the Higher Education Act of 1965 
     (20 U.S.C. 1141(a)).

[[Page S 14820]]

       (g) Effective Date.--This section shall take effect on July 
     1, 1998.

     SEC. 305. TRANSFERS TO FEDERAL PARTNERSHIP.

       (a) Definitions.--For purposes of this section, unless 
     otherwise provided or indicated by the context--
       (1) the term ``Federal agency'' has the meaning given to 
     the term ``agency'' by section 551(1) of title 5, United 
     States Code;
       (2) the term ``function'' means any duty, obligation, 
     power, authority, responsibility, right, privilege, activity, 
     or program; and
       (3) the term ``office'' includes any office, 
     administration, agency, institute, unit, organizational 
     entity, or component thereof.
       (b) Transfer of Functions.--
       (1) In general.--There are transferred to the Federal 
     Partnership, in accordance with subsection (c), all functions 
     that the Secretary of Labor or the Secretary of Education 
     exercised before the effective date of this section 
     (including all related functions of any officer or employee 
     of the Department of Labor or the Department of Education) 
     that relate to a covered activity and that are minimally 
     necessary to carry out the functions of the Federal 
     Partnership. The authority of a transferred employee to carry 
     out a function that relates to a covered activity shall 
     terminate on July 1, 1998.
       (2) Office of inspector general.--There are transferred to 
     the Federal Partnership, in accordance with subsection (c), 
     all functions that the Secretary of Labor or the Secretary of 
     Education, acting through the Office of Inspector General of 
     the Department of Labor or of the Department of Education, 
     exercised before the effective date of this section 
     (including all related functions of any officer or employee 
     of the Department of Labor or the Department of Education) 
     that relate to the auditing or investigation of a covered 
     activity and that are minimally necessary to carry out the 
     functions of the Federal Partnership. The authority of a 
     transferred employee to carry out a function that relates to 
     the auditing or investigation of a covered activity shall 
     terminate on July 1, 1998.
       (c) Determinations of Functions by the Governing Board.--
       (1) Transition workplan.--
       (A) In general.--Not later than the date of appointment of 
     the Governing Board, the Secretary of Labor and the Secretary 
     of Education shall prepare and submit to the Governing Board 
     a proposed workplan that specifies the steps that the 
     Secretaries will take, during the period ending on July 1, 
     1998, to carry out the transfers described in subsection (b).
       (B) Contents.--The proposed workplan shall include, at a 
     minimum--
       (i) an analysis of the functions that officers and 
     employees of the Department of Labor and the Department of 
     Education carry out (as of the date of the submission of the 
     workplan) that relate to a covered activity or to the 
     auditing or investigation of a covered activity;
       (ii) information on the levels of personnel and funding 
     used to carry out the functions (as of such date);
       (iii) information on the proposed organizational structure 
     for the Federal Partnership;
       (iv) a determination of the functions described in clause 
     (i) that are minimally necessary to carry out the functions 
     of the Federal Partnership; and
       (v) information on the levels of personnel and funding that 
     are minimally necessary to carry out the functions of the 
     Federal Partnership.
       (2) Review.--Not later than 30 days after the date of 
     submission of the workplan, the Governing Board shall--
       (A) review the workplan;
       (B) approve the workplan or prepare a revised workplan that 
     contains the analysis and information described in paragraph 
     (1)(B), including a determination of the functions described 
     in paragraph (1)(B)(iv), which shall be transferred under 
     subsection (b); and
       (C) submit the approved or revised workplan to the 
     appropriate committees of Congress.
       (d) Personnel Provisions.--
       (1) Appointments.--The Director may appoint and fix the 
     compensation of such officers and employees, including 
     investigators, attorneys, and administrative law judges, as 
     may be necessary to carry out the functions of the Federal 
     Partnership. Except as otherwise provided by law, such 
     officers and employees shall be appointed in accordance with 
     the civil service laws and their compensation fixed in 
     accordance with title 5, United States Code.
       (2) Experts and consultants.--The Director may obtain the 
     services of experts and consultants in accordance with 
     section 3109 of title 5, United States Code, and compensate 
     such experts and consultants for each day (including travel 
     time) at rates not in excess of the rate of pay for level IV 
     of the Executive Schedule under section 5315 of such title. 
     The Director may pay experts and consultants who are serving 
     away from their homes or regular place of business travel 
     expenses and per diem in lieu of subsistence at rates 
     authorized by sections 5702 and 5703 of such title for 
     persons in Government service employed intermittently.
       (e) Delegation and Assignment.--Except where otherwise 
     expressly prohibited by law or otherwise provided by this 
     section, the Governing Board may delegate any function 
     transferred or granted to such Federal Partnership after the 
     effective date of this section to such officers and employees 
     of the Federal Partnership as the Governing Board may 
     designate, and may authorize successive redelegations of such 
     functions as may be necessary or appropriate. No delegation 
     of functions by the Governing Board under this subsection or 
     under any other provision of this section shall relieve such 
     Governing Board of responsibility for the administration of 
     such functions.
       (f) Reorganization.--The Governing Board may allocate or 
     reallocate any function transferred or granted to such 
     Federal Partnership after the effective date of this section 
     among the officers of the Federal Partnership, and establish, 
     consolidate, alter, or discontinue such organizational 
     entities in the Federal Partnership as may be necessary or 
     appropriate.
       (g) Rules.--The Governing Board is authorized to prescribe, 
     in accordance with the provisions of chapters 5 and 6 of 
     title 5, United States Code, such rules and regulations as 
     the Governing Board determines to be necessary or appropriate 
     to administer and manage the functions of the Federal 
     Partnership.
       (h) Transfer and Allocations of Appropriations and 
     Personnel.--
       (1) In general.--Except as otherwise provided in this 
     section, the personnel employed in connection with, and the 
     assets, liabilities, contracts, property, records, and 
     unexpended balances of appropriations, authorizations, 
     allocations, and other funds employed, used, held, arising 
     from, available to, or to be made available in connection 
     with the functions transferred by this section, subject to 
     section 1531 of title 31, United States Code, shall be 
     transferred to the Federal Partnership. Unexpended funds 
     transferred pursuant to this subsection shall be used only to 
     carry out the functions of the Federal Partnership.
       (2) Existing facilities and other federal resources.--
     Pursuant to paragraph (1), the Secretary of Labor and the 
     Secretary of Education shall supply such office facilities, 
     office supplies, support services, and related expenses as 
     may be minimally necessary to carry out the functions of the 
     Governing Board. None of the funds made available under this 
     Act may be used for the construction of office facilities for 
     the Federal Partnership.
       (i) Incidental Transfers.--The Director of the Office of 
     Management and Budget, at such time or times as the Director 
     shall provide, may make such determinations as may be 
     necessary with regard to the functions transferred by this 
     section, and to make such additional incidental dispositions 
     of personnel, assets, liabilities, grants, contracts, 
     property, records, and unexpended balances of appropriations, 
     authorizations, allocations, and other funds held, used, 
     arising from, available to, or to be made available in 
     connection with such functions, as may be necessary to carry 
     out the provisions of this section. The Director of the 
     Office of Management and Budget shall provide for the 
     termination of the affairs of all entities terminated by this 
     section and for such further measures and dispositions as may 
     be necessary to effectuate the objectives of this section.
       (j) Effect on Personnel.--
       (1) Termination of certain positions.--Positions whose 
     incumbents are appointed by the President, by and with the 
     advice and consent of the Senate, the functions of which are 
     transferred by this section, shall terminate on the effective 
     date of this section.
       (2) Actions.--
       (A) In general.--The Secretary of Labor and the Secretary 
     of Education shall take such actions as may be necessary, 
     including reduction in force actions, consistent with 
     sections 3502 and 3595 of title 5, United States Code, to 
     ensure that the positions of personnel that relate to a 
     covered activity and are not transferred under subsection 
     (b)(1) are separated from service.
       (B) Scope.--The Secretary of Labor and the Secretary of 
     Education shall take the actions described in subparagraph 
     (A) with respect to not less than \1/3\ of the positions of 
     personnel that relate to a covered activity.
       (C) Definition.--As used in this paragraph, the term 
     ``positions of personnel that relate to a covered activity'' 
     shall not include any position in an Office of Inspector 
     General that relates to the auditing or investigation of a 
     covered activity.
       (k) Savings Provisions.--
       (1) Suits not affected.--The provisions of this section 
     shall not affect suits commenced before the effective date of 
     this section, and in all such suits, proceedings shall be 
     had, appeals taken, and judgments rendered in the same manner 
     and with the same effect as if this section had not been 
     enacted.
       (2) Nonabatement of actions.--No suit, action, or other 
     proceeding commenced by or against the Department of Labor or 
     the Department of Education, or by or against any individual 
     in the official capacity of such individual as an officer of 
     the Department of Labor or the Department of Education, shall 
     abate by reason of the enactment of this section.
       (l) Transition.--The Governing Board may utilize--
       (1) the services of officers, employees, and other 
     personnel of the Department of Labor or the Department of 
     Education with respect to functions transferred to the 
     Federal Partnership by this section; and
       (2) funds appropriated to such functions;
     for such period of time as may reasonably be needed to 
     facilitate the orderly implementation of this section.
       (m) References.--A reference in any other Federal law, 
     Executive order, rule, regulation, or delegation of 
     authority, or any document of or relating to--
       (1) the Secretary of Labor or the Secretary of Education 
     with regard to functions transferred under subsection (b), 
     shall be deemed to refer to the Governing Board; and
       (2) the Department of Labor or the Department of Education 
     with regard to functions transferred under subsection (b), 
     shall be deemed to refer to the Federal Partnership.
       (n) Additional Conforming Amendments.--
       (1) Recommended legislation.--After consultation with the 
     appropriate committees of Congress and the Director of the 
     Office of Management and Budget, the Governing Board shall 
     prepare and submit to Congress recommended legislation 
     containing technical and conforming amendments to reflect the 
     changes made by this section.

[[Page S 14821]]

       (2) Submission to congress.--Not later than March 31, 1997, 
     the Governing Board shall submit the recommended legislation 
     referred to in paragraph (1).
       (o) Effective Date.--
       (1) In general.--Except as provided in paragraphs (2) and 
     (3), this section shall take effect on June 30, 1998.
       (2) Regulations and conforming amendments.--Subsections (g) 
     and (n) shall take effect on September 30, 1996.
       (3) Workplan.--Subsection (c) shall take effect on the date 
     of enactment of this Act.

     SEC. 306. TRANSFERS TO OTHER FEDERAL AGENCIES AND OFFICES.

       (a) Transfer.--There are transferred to the appropriate 
     receiving agency, in accordance with subsection (b), all 
     functions that the Secretary of Labor, acting through the 
     Employment and Training Administration, or the Secretary of 
     Education, acting through the Office of Vocational and Adult 
     Education, exercised before the effective date of this 
     section (including all related functions of any officer or 
     employee of the Employment and Training Administration or the 
     Office of Vocational and Adult Education) that do not relate 
     to a covered activity.
       (b) Determinations of Functions and Appropriate Receiving 
     Agencies.--
       (1) Transition workplan.--
       (A) In general.--Not later than 90 days after the date of 
     appointment of the Governing Board, the Secretary of Labor 
     and the Secretary of Education shall prepare and submit to 
     the Governing Board a proposed workplan that specifies the 
     steps that the Secretaries will take, during the period 
     ending on July 1, 1998, to carry out the transfer described 
     in subsection (a).
       (B) Contents.--The proposed workplan shall include, at a 
     minimum--
       (i) a determination of the functions that officers and 
     employees of the Employment and Training Administration and 
     the Office of Vocational and Adult Education carry out (as of 
     the date of the submission of the workplan) that do not 
     relate to a covered activity; and
       (ii) a determination of the appropriate receiving agencies 
     for the functions, based on factors including increased 
     efficiency and elimination of duplication of functions.
       (2) Review.--Not later than 30 days after the date of 
     submission of the workplan, the Governing Board shall--
       (A) review the workplan;
       (B) approve the workplan or prepare a revised workplan that 
     contains--
       (i) a determination of the functions described in paragraph 
     (1)(B)(i), which shall be transferred under subsection (a); 
     and
       (ii) a determination of the appropriate receiving agencies 
     described in paragraph (1)(B)(ii), based on the factors 
     described in such paragraph, to which the functions shall be 
     transferred under subsection (a); and
       (C) submit the approved or revised workplan to the 
     appropriate committees of Congress.
       (3) Report.--Not later than July 1, 1998, the Secretary of 
     Education and the Secretary of Labor shall submit to the 
     appropriate committees of Congress information on the 
     transfers required by this section.
       (c) Application of Authorities.--
       (1) In general.--
       (A) Application.--Subsection (a), and subsections (d) 
     through (n), of section 305 (other than subsections (g), 
     (h)(2), (j)(2), and (n)) shall apply to transfers under this 
     section, in the same manner and to the same extent as the 
     subsections apply to transfers under section 305.
       (B) Regulations and conforming amendments.--Subsections (g) 
     and (n) shall apply to transfers under this section, in the 
     same manner and to the same extent as the subsections apply 
     to transfers under section 305.
       (2) References.--For purposes of the application of the 
     subsections described in paragraph (1) (other than 
     subsections (h)(2) and (j)(2) of section 305) to transfers 
     under this section--
       (A) references to the Federal Partnership shall be deemed 
     to be references to the appropriate receiving agency, as 
     determined in the approved or revised workplan referred to in 
     subsection (b)(2);
       (B) references to the Director or Governing Board shall be 
     deemed to be references to the head of the appropriate 
     receiving agency; and
       (C) references to transfers in subsections (e) and (f) of 
     section 305 shall be deemed to include transfers under this 
     section.
       (3) Administration.--Unexpended funds transferred pursuant 
     to this section shall be used only for the purposes for which 
     the funds were originally authorized and appropriated.
       (4) Continuing effect of legal documents.--All orders, 
     determinations, rules, regulations, permits, agreements, 
     grants, contracts, certificates, licenses, registrations, 
     privileges, and other administrative actions--
       (A) that have been issued, made, granted, or allowed to 
     become effective by the President, any Federal agency or 
     official of a Federal agency, or by a court of competent 
     jurisdiction, in the performance of functions that are 
     transferred under this section; and
       (B) that are in effect on the effective date of this 
     section or were final before the effective date of this 
     section and are to become effective on or after the effective 
     date of this section;
     shall continue in effect according to their terms until 
     modified, terminated, superseded, set aside, or revoked in 
     accordance with law by the President, the appropriate 
     receiving agency or other authorized official, a court of 
     competent jurisdiction, or by operation of law.
       (5) Proceedings not affected.--
       (A) In general.--The provisions of this section shall not 
     affect any proceedings, including notices of proposed 
     rulemaking, or any application for any license, permit, 
     certificate, or financial assistance pending before the 
     Department of Labor or the Department of Education on the 
     date this section takes effect, with respect to functions 
     transferred by this section.
       (B) Continuation.--Such proceedings and applications shall 
     be continued. Orders shall be issued in such proceedings, 
     appeals shall be taken from the orders, and payments shall be 
     made pursuant to such orders, as if this section had not been 
     enacted, and orders issued in any such proceedings shall 
     continue in effect until modified, terminated, superseded, or 
     revoked by a duly authorized official, by a court of 
     competent jurisdiction, or by operation of law.
       (C) Construction.--Nothing in this paragraph shall be 
     deemed to prohibit the discontinuance or modification of any 
     such proceeding under the same terms and conditions and to 
     the same extent that such proceeding could have been 
     discontinued or modified if this section had not been 
     enacted.
       (6) Administrative actions relating to promulgation of 
     regulations.--Any administrative action relating to the 
     preparation or promulgation of a regulation by the Department 
     of Labor or the Department of Education relating to a 
     function transferred under this section may be continued by 
     the appropriate receiving agency with the same effect as if 
     this section had not been enacted.
       (d) Construction.--Nothing in this section shall be 
     construed to require the transfer of any function described 
     in subsection (b)(1)(B)(i) to the Federal Partnership.
       (e) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), this 
     section shall take effect on June 30, 1998.
       (2) Regulations and conforming amendments.--Subsection 
     (c)(1)(B) shall take effect on September 30, 1996.
       (3) Workplan.--Subsection (b) shall take effect on the date 
     of enactment of this Act.

     SEC. 307. ELIMINATION OF CERTAIN OFFICES.

       (a) Termination.--The Office of Vocational and Adult 
     Education and the Employment and Training Administration 
     shall terminate on July 1, 1998.
       (b) Office of Vocational and Adult Education.--
       (1) Title 5, united states code.--Section 5315 of title 5, 
     United States Code, is amended by striking ``Assistant 
     Secretaries of Education (10)'' and inserting ``Assistant 
     Secretaries of Education (9)''.
       (2) Department of education organization act.--
       (A) Section 202 of the Department of Education Organization 
     Act (20 U.S.C. 3412) is amended--
       (i) in subsection (b)(1)--

       (I) by striking subparagraph (C); and
       (II) by redesignating subparagraphs (D) through (F) as 
     subparagraphs (C) through (E), respectively;

       (ii) by striking subsection (h); and
       (iii) by redesignating subsection (i) as subsection (h).
       (B) Section 206 of such Act (20 U.S.C. 3416) is repealed.
       (C) Section 402(c)(1) of the Improving America's Schools 
     Act of 1994 (20 U.S.C. 9001(c)(1)) is amended by striking 
     ``established under'' and all that follows and inserting a 
     semicolon.
       (3) Goals 2000: educate america act.--Section 931(h)(3)(A) 
     of the Goals 2000: Educate America Act (20 U.S.C. 
     6031(h)(3)(A)) is amended--
       (A) by striking clause (iii); and
       (B) by redesignating clauses (iv) and (v) as clauses (iii) 
     and (iv), respectively.
       (c) Employment and Training Administration.--
       (1) Title 5, united states code.--Section 5315 of title 5, 
     United States Code, is amended by striking ``Assistant 
     Secretaries of Labor (10)'' and inserting ``Assistant 
     Secretaries of Labor (9)''.
       (2) Veterans' benefits and programs improvement act of 
     1988.--Section 402(d)(3) of the Veterans' Benefits and 
     Programs Improvement Act of 1988 (29 U.S.C. 1721 note) is 
     amended by striking ``and under any other program 
     administered by the Employment and Training Administration of 
     the Department of Labor''.
       (3) Title 38, united states code.--Section 4110(d) of title 
     38, United States Code, is amended--
       (A) by striking paragraph (7); and
       (B) by redesignating paragraphs (8) through (12) as 
     paragraphs (7) through (11), respectively.
       (4) National and community service act of 1990.--The last 
     sentence of section 162(b) of the National and Community 
     Service Act of 1990 (42 U.S.C. 12622(b)) is amended by 
     striking ``or the Office of Job Training''.
       (d) United States Employment Service.--
       (1) Title 5, united states code.--Section 3327 of title 5, 
     United States Code, is amended--
       (A) in subsection (a), by striking ``the employment offices 
     of the United States Employment Service'' and inserting 
     ``Governors''; and
       (B) in subsection (b), by striking ``of the United States 
     Employment Service''.
       (2) Title 10, united states code.--
       (A) Section 1143a(d) of title 10, United States Code, is 
     amended by striking paragraph (3).
       (B) Section 2410k(b) of title 10, United States Code, is 
     amended by striking ``, and where appropriate the Interstate 
     Job Bank (established by the United States Employment 
     Service),''.
       (3) Internal revenue code of 1986.--Section 51 of the 
     Internal Revenue Code of 1986 is amended by striking 
     subsection (g).
       (4) National defense authorization act for fiscal year 
     1993.--Section 4468 of the National Defense Authorization Act 
     for Fiscal Year 1993 (29 U.S.C. 1662d-1 note) is repealed.
       (5) Title 38, united states code.--Section 4110(d) of title 
     38, United States Code (as amended by subsection (c)(3)), is 
     further amended--
       (A) by striking paragraph (10); and
       (B) by redesignating paragraph (11) as paragraph (10).

[[Page S 14822]]

       (6) Title 39, united states code.--
       (A) Section 3202(a)(1) of title 39, United States Code is 
     amended--
       (i) in subparagraph (D), by striking the semicolon and 
     inserting ``; and'';
       (ii) by striking subparagraph (E); and
       (iii) by redesignating subparagraph (F) as subparagraph 
     (E).
       (B) Section 3203(b) of title 39, United States Code, is 
     amended by striking ``(1)(E), (2), and (3)'' and inserting 
     ``(2) and (3)''.
       (C) Section 3206(b) of title 39, United States Code, is 
     amended by striking ``(1)(F)'' and inserting ``(1)(E)''.
       (7) National and community service act of 1990.--Section 
     162(b) of the National and Community Service Act of 1990 (42 
     U.S.C. 12622(b)) (as amended by subsection (c)(4)) is further 
     amended by striking the last sentence.
       (e) Reorganization Plans.--Except with respect to functions 
     transferred under section 306, the authority granted to the 
     Employment and Training Administration, the Office of 
     Vocational and Adult Education, or any unit of the Employment 
     and Training Administration or the Office of Vocational and 
     Adult Education by any reorganization plan shall terminate on 
     July 1, 1998.
         TITLE IV--AMENDMENTS TO THE REHABILITATION ACT OF 1973

     SEC. 401. REFERENCES.

       Except as otherwise expressly provided in this title, 
     whenever in this title an amendment or repeal is expressed in 
     terms of an amendment to, or repeal of, a section or other 
     provision, the reference shall be considered to be made to a 
     section or other provision of the Rehabilitation Act of 1973 
     (29 U.S.C. 701 et seq.).

     SEC. 402. FINDINGS AND PURPOSES.

       Section 2 (29 U.S.C. 701) is amended--
       (1) in subsection (a)(4), by striking ``the provision of 
     individualized training, independent living services, 
     educational and support services,'' and inserting 
     ``implementation of a statewide workforce development system 
     that provides meaningful and effective participation for 
     individuals with disabilities in workforce development 
     activities and activities carried out through the vocational 
     rehabilitation program established under title I, and through 
     the provision of independent living services, support 
     services,''; and
       (2) in subsection (b)(1)(A), by inserting ``statewide 
     workforce development systems that include, as integral 
     components,'' after ``(A)''.

     SEC. 403. CONSOLIDATED REHABILITATION PLAN.

       (a) In General.--Section 6 (29 U.S.C. 705) is repealed.
       (b) Conforming Amendment.--The table of contents for the 
     Act is amended by striking the item relating to section 6.

     SEC. 404. DEFINITIONS.

       Section 7 (29 U.S.C. 706) is amended by adding at the end 
     the following new paragraphs:
       ``(36) The term `statewide workforce development system' 
     means a statewide system, as defined in section 3 of the 
     Workforce Development Act of 1995.
       ``(37) The term `workforce development activities' has the 
     meaning given the term in section 3 of the Workforce 
     Development Act of 1995.
       ``(38) The term `workforce employment activities' means the 
     activities described in paragraphs (2) through (8) of section 
     106(a) of the Workforce Development Act of 1995, including 
     activities described in section 106(a)(6) of such Act 
     provided through a voucher described in section 106(a)(9) of 
     such Act.''.

     SEC. 405. ADMINISTRATION.

       Section 12(a)(1) (29 U.S.C. 711(a)(1)) is amended by 
     inserting ``, including providing assistance to achieve the 
     meaningful and effective participation by individuals with 
     disabilities in the activities carried out through a 
     statewide workforce development system'' before the 
     semicolon.

     SEC. 406. REPORTS.

       Section 13 (29 U.S.C. 712) is amended in the fourth 
     sentence by striking ``The data elements'' and all that 
     follows through ``age,'' and inserting the following: ``The 
     information shall include all information that is required to 
     be submitted in the report described in section 131(a) of the 
     Workforce Development Act of 1995 and that pertains to the 
     employment of individuals with disabilities, including 
     information on age,''.

     SEC. 407. EVALUATION.

       Section 14(a) (29 U.S.C. 713(a)) is amended in the third 
     sentence by striking ``to the extent feasible,'' and all that 
     follows through the end of the sentence and inserting the 
     following: ``to the maximum extent appropriate, be consistent 
     with the State benchmarks established under paragraphs (1) 
     and (2) of section 131(c) of the Workforce Development Act of 
     1995. For purposes of this section, the Secretary may modify 
     or supplement such benchmarks after consultation with the 
     Governing Board established under section 301(b) of the 
     Workforce Development Act of 1995, to the extent necessary to 
     address unique considerations applicable to the participation 
     of individuals with disabilities in the vocational 
     rehabilitation program established under title I and 
     activities carried out under other provisions of this Act.''.

     SEC. 408. DECLARATION OF POLICY.

       Section 100(a) (29 U.S.C. 720(a)) is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (E), by striking ``; and'' and 
     inserting a semicolon;
       (B) in subparagraph (F)--
       (i) by inserting ``workforce development activities and'' 
     before ``vocational rehabilitation services''; and
       (ii) by striking the period and inserting ``; and''; and
       (C) by adding at the end the following subparagraph:
       ``(G) linkages between the vocational rehabilitation 
     program established under this title and other components of 
     the statewide workforce development system are critical to 
     ensure effective and meaningful participation by individuals 
     with disabilities in workforce development activities.''; and
       (2) in paragraph (2)--
       (A) by striking ``a comprehensive'' and inserting 
     ``statewide comprehensive''; and
       (B) by striking ``program of vocational rehabilitation that 
     is designed'' and inserting ``programs of vocational 
     rehabilitation, each of which is--
       ``(A) an integral component of a statewide workforce 
     development system; and
       ``(B) designed''.

     SEC. 409. STATE PLANS.

       (a) In General.--Section 101(a) (29 U.S.C. 721(a)) is 
     amended--
       (1) in the first sentence, by striking ``, or shall 
     submit'' and all that follows through ``et seq.)'' and 
     inserting ``, and shall submit the State plan on the same 
     dates as the State submits the State plan described in 
     section 104 of the Workforce Development Act of 1995 to the 
     Governing Board established under section 301(b) of such 
     Act'';
       (2) by inserting after the first sentence the following: 
     ``The State shall also submit the State plan for vocational 
     rehabilitation services for review and comment to any State 
     workforce development board established for the State under 
     section 105 of the Workforce Development Act of 1995, which 
     shall submit the comments on the State plan to the designated 
     State unit.'';
       (3) by striking paragraphs (10), (12), (13), (15), (17), 
     (19), (23), (27), (28), (30), (34), and (35);
       (4) in paragraph (20), by striking ``(20)'' and inserting 
     ``(B)'';
       (5) by redesignating paragraphs (3), (4), (5), (6), (7), 
     (8), (9), (14), (16), (18), (21), (22), (24), (25), (26), 
     (29), (31), (32), (33), and (36) as paragraphs (4), (5), (6), 
     (7), (8), (9), (10), (12), (13), (14), (15), (16), (17), 
     (18), (19), (20), (21), (22), (23), and (24), respectively;
       (6) in paragraph (1)(B)--
       (A) by redesignating clauses (i), (ii), and (iii) as 
     clauses (ii), (iii), and (iv), respectively; and
       (B) by inserting before clause (ii) (as redesignated in 
     subparagraph (A)) the following: ``(i) a State entity 
     primarily responsible for implementing workforce employment 
     activities through the statewide workforce development system 
     of the State,'';
       (7) in paragraph (2)--
       (A) in the matter preceding subparagraph (A), by striking 
     ``(1)(B)(i)'' and inserting ``(1)(B)(ii)''; and
       (B) in subparagraph (B)(ii), by striking ``(1)(B)(ii)'' and 
     inserting ``(1)(B)(iii)'';
       (8) by inserting after paragraph (2) the following 
     paragraph:
       ``(3) provide a plan for expanding and improving vocational 
     rehabilitation services for individuals with disabilities on 
     a statewide basis, including--
       ``(A) a statement of values and goals;
       ``(B) evidence of ongoing efforts to use outcome measures 
     to make decisions about the effectiveness and future 
     direction of the vocational rehabilitation program 
     established under this title in the State; and
       ``(C) information on specific strategies for strengthening 
     the program as an integral component of the statewide 
     workforce development system established in the State, 
     including specific innovative, state-of-the-art approaches 
     for achieving sustained success in improving and expanding 
     vocational rehabilitation services provided through the 
     program, for all individuals with disabilities who seek 
     employment, through plans, policies, and procedures that link 
     the program with other components of the system, including 
     plans, policies, and procedures relating to--
       ``(i) entering into cooperative agreements, between the 
     designated State unit and appropriate entities responsible 
     for carrying out the other components of the statewide 
     workforce development system, which agreements may provide 
     for--
       ``(I) provision of intercomponent staff training and 
     technical assistance regarding the availability and benefits 
     of, and eligibility standards for, vocational rehabilitation 
     services, and regarding the provision of equal, effective, 
     and meaningful participation by individuals with disabilities 
     in workforce employment activities in the State through 
     program accessibility, use of nondiscriminatory policies and 
     procedures, and provision of reasonable accommodations, 
     auxiliary aids and services, and rehabilitation technology, 
     for individuals with disabilities;
       ``(II) use of information and financial management systems 
     that link all components of the statewide workforce 
     development system, that link the components to other 
     electronic networks, and that relate to such subjects as 
     labor market information, and information on job vacancies, 
     skill qualifications, career planning, and workforce 
     development activities;
       ``(III) use of customer service features such as common 
     intake and referral procedures, customer data bases, resource 
     information, and human service hotlines;
       ``(IV) establishment of cooperative efforts with employers 
     to facilitate job placement and to develop and sustain 
     working relationships with employers, trade associations, and 
     labor organizations;
       ``(V) identification of staff roles and responsibilities 
     and available resources for each entity that carries out a 
     component of the statewide workforce development system with 
     regard to paying for necessary services (consistent with 
     State law); and
       ``(VI) specification of procedures for resolving disputes 
     among such entities; and
       ``(ii) providing for the replication of such cooperative 
     agreements at the local level between individual offices of 
     the designated State unit and local entities carrying out 
     activities through the statewide workforce development 
     system;''; 

[[Page S 14823]]

       (9) in paragraph (6) (as redesignated in paragraph (5))--
       (A) by striking subparagraph (A) and inserting the 
     following:
       ``(A) contain the plans, policies, and methods to be 
     followed in carrying out the State plan and in the 
     administration and supervision of the plan, including--
       ``(i)(I) the results of a comprehensive, statewide 
     assessment of the rehabilitation needs of individuals with 
     disabilities (including individuals with severe disabilities, 
     individuals with disabilities who are minorities, and 
     individuals with disabilities who have been unserved, or 
     underserved, by the vocational rehabilitation system) who are 
     residing within the State; and
       ``(II) the response of the State to the assessment;
       ``(ii) a description of the method to be used to expand and 
     improve services to individuals with the most severe 
     disabilities, including individuals served under part C of 
     title VI;
       ``(iii) with regard to community rehabilitation programs--
       ``(I) a description of the method to be used (such as a 
     cooperative agreement) to utilize the programs to the maximum 
     extent feasible; and
       ``(II) a description of the needs of the programs, 
     including the community rehabilitation programs funded under 
     the Act entitled ``An Act to Create a Committee on Purchases 
     of Blind-made Products, and for other purposes'', approved 
     June 25, 1938 (commonly known as the Wagner-O'Day Act; 41 
     U.S.C. 46 et seq.) and such programs funded by State use 
     contracting programs; and
       ``(iv) an explanation of the methods by which the State 
     will provide vocational rehabilitation services to all 
     individuals with disabilities within the State who are 
     eligible for such services, and, in the event that 
     vocational rehabilitation services cannot be provided to 
     all such eligible individuals with disabilities who apply 
     for such services, information--
       ``(I) showing and providing the justification for the order 
     to be followed in selecting individuals to whom vocational 
     rehabilitation services will be provided (which order of 
     selection for the provision of vocational rehabilitation 
     services shall be determined on the basis of serving first 
     the individuals with the most severe disabilities in 
     accordance with criteria established by the State, and shall 
     be consistent with priorities in such order of selection so 
     determined, and outcome and service goals for serving 
     individuals with disabilities, established in regulations 
     prescribed by the Commissioner);
       ``(II) showing the outcomes and service goals, and the time 
     within which the outcomes and service goals may be achieved, 
     for the rehabilitation of individuals receiving such 
     services; and
       ``(III) describing how individuals with disabilities who 
     will not receive such services if such order is in effect 
     will be referred to other components of the statewide 
     workforce development system for access to services offered 
     by the components;''; and
       (B) by striking subparagraph (C) and inserting the 
     following subparagraphs:
       ``(C) with regard to the statewide assessment of 
     rehabilitation needs described in subparagraph (A)(i)--
       ``(i) provide that the State agency will make reports at 
     such time, in such manner, and containing such information, 
     as the Commissioner may require to carry out the functions of 
     the Commissioner under this title, and comply with such 
     provisions as are necessary to assure the correctness and 
     verification of such reports; and
       ``(ii) provide that reports made under clause (i) will 
     include information regarding individuals with disabilities 
     and, if an order of selection described in subparagraph 
     (A)(iv)(I) is in effect in the State, will separately include 
     information regarding individuals with the most severe 
     disabilities, on--
       ``(I) the number of such individuals who are evaluated and 
     the number rehabilitated;
       ``(II) the costs of administration, counseling, provision 
     of direct services, development of community rehabilitation 
     programs, and other functions carried out under this Act; and
       ``(III) the utilization by such individuals of other 
     programs pursuant to paragraph (11); and
       ``(D) describe--
       ``(i) how a broad range of rehabilitation technology 
     services will be provided at each stage of the rehabilitation 
     process;
       ``(ii) how a broad range of such rehabilitation technology 
     services will be provided on a statewide basis; and
       ``(iii) the training that will be provided to vocational 
     rehabilitation counselors, client assistance personnel, 
     personnel of the providers of one-stop delivery of core 
     services described in section 106(a)(2) of the Workforce 
     Development Act of 1995, and other related services 
     personnel;'';
       (10) in subparagraph (A) of paragraph (8) (as redesignated 
     in paragraph (5))--
       (A) in clause (i)(II), by striking ``, based on 
     projections'' and all that follows through ``relevant 
     factors''; and
       (B) by striking clauses (iii) and (iv) and inserting the 
     following clauses:
       ``(iii) a description of the ways in which the system for 
     evaluating the performance of rehabilitation counselors, 
     coordinators, and other personnel used in the State 
     facilitates the accomplishment of the purpose and policy of 
     this title, including the policy of serving, among others, 
     individuals with the most severe disabilities;
       ``(iv) provide satisfactory assurances that the system 
     described in clause (iii) in no way impedes such 
     accomplishment; and'';
       (11) in paragraph (9) (as redesignated in paragraph (5)) by 
     striking ``required--'' and all that follows through ``(B) 
     prior'' and inserting ``required prior'';
       (12) in paragraph (10) (as redesignated in paragraph (5))--
       (A) in subparagraph (B), by striking ``written 
     rehabilitation program'' and inserting ``employment plan''; 
     and
       (B) in subparagraph (C), by striking ``plan in accordance 
     with such program'' and inserting ``State plan in accordance 
     with the employment plan'';
       (13) in paragraph (11)--
       (A) in subparagraph (A), by striking ``State's public'' and 
     all that follows and inserting ``State programs that are not 
     part of the statewide workforce development system of the 
     State;''; and
       (B) in subparagraph (C)--
       (i) by striking ``if appropriate--'' and all that follows 
     through ``entering into'' and inserting ``if appropriate, 
     entering into'';
       (ii) by redesignating subclauses (I), (II), and (III) as 
     clauses (i), (ii), and (iii), respectively; and
       (iii) by indenting the clauses and aligning the margins of 
     the clauses with the margins of clause (ii) of subparagraph 
     (A) of paragraph (8) (as redesignated in paragraph (5));
       (14) in paragraph (14) (as redesignated in paragraph (5))--
       (A) by striking ``(14)'' and inserting ``(14)(A)''; and
       (B) by inserting before the semicolon the following ``, 
     and, in the case of the designated State unit, will take 
     actions to take such views into account that include 
     providing timely notice, holding public hearings, preparing a 
     summary of hearing comments, and documenting and 
     disseminating information relating to the manner in which the 
     comments will affect services; and'';
       (15) in paragraph (16) (as redesignated in paragraph (5)), 
     by striking ``referrals to other Federal and State programs'' 
     and inserting ``referrals within the statewide workforce 
     development system of the State to programs''; and
       (16) in paragraph (17) (as redesignated in paragraph (5))--
       (A) in subparagraph (B), by striking ``written 
     rehabilitation program'' and inserting ``employment plan''; 
     and
       (B) in subparagraph (C)--
       (i) in clause (ii), by striking ``; and'' and inserting a 
     semicolon;
       (ii) in clause (iii), by striking the semicolon and 
     inserting ``; and''; and
       (iii) by adding at the end the following clause:
       ``(iv) the manner in which students who are individuals 
     with disabilities and who are not in special education 
     programs can access and receive vocational rehabilitation 
     services, where appropriate;''.
       (b) Conforming Amendments.--
       (1) Section 7 (29 U.S.C. 706) is amended--
       (A) in paragraph (3)(B)(ii), by striking 
     ``101(a)(1)(B)(i)'' and inserting ``101(a)(1)(B)(ii)''; and
       (B) in paragraph (22)(A)(i)(II), by striking 
     ``101(a)(5)(A)'' each place it appears and inserting 
     ``101(a)(6)(A)(iv)''.
       (2) Section 12(d) (29 U.S.C. 711(d)) is amended by striking 
     ``101(a)(5)(A)'' and inserting ``101(a)(6)(A)(iv)''.
       (3) Section 101(a) (29 U.S.C. 721(a)) is amended--
       (A) in paragraph (1)(A), by striking ``paragraph (4) of 
     this subsection'' and inserting ``paragraph (5)'';
       (B) in paragraph (2)--
       (i) in the matter preceding subparagraph (A), by striking 
     ``paragraph (1)(B)(i)'' and inserting ``paragraph 
     (1)(B)(ii)''; and
       (ii) in subparagraph (B)(i), by striking ``paragraph 
     (1)(B)(ii)'' and inserting ``paragraph (1)(B)(iii)'';
       (C) in paragraph (17) (as redesignated in subsection 
     (a)(5)), by striking ``paragraph (11)(C)(ii)'' and inserting 
     ``paragraph (11)(C)'';
       (D) in paragraph (22) (as redesignated in subsection 
     (a)(5)), by striking ``paragraph (36)'' and inserting 
     ``paragraph (24)''; and
       (E) in subparagraph (C) of paragraph (24) (as redesignated 
     in subsection (a)(5)), by striking ``101(a)(1)(A)(i)'' and 
     inserting ``paragraph (1)(A)(i)''.
       (4) Section 102 (29 U.S.C. 722) is amended--
       (A) in subsection (a)(3), by striking ``101(a)(24)'' and 
     inserting ``101(a)(17)''; and
       (B) in subsection (d)(2)(C)(ii)--
       (i) in subclause (II), by striking ``101(a)(36)'' and 
     inserting ``101(a)(24)''; and
       (ii) in subclause (III), by striking ``101(a)(36)(C)(ii)'' 
     and inserting ``101(a)(24)(C)(ii)''.
       (5) Section 105(a)(1) (29 U.S.C. 725(a)(1)) is amended by 
     striking ``101(a)(36)'' and inserting ``101(a)(24)''.
       (6) Section 107(a) (29 U.S.C. 727(a)) is amended--
       (A) in paragraph (2)(F), by striking ``101(a)(32)'' and 
     inserting ``101(a)(22)'';
       (B) in paragraph (3)(A), by striking ``101(a)(5)(A)'' and 
     inserting ``101(a)(6)(A)(iv)''; and
       (C) in paragraph (4), by striking ``101(a)(35)'' and 
     inserting ``101(a)(8)(A)(iii)''.
       (7) Section 111(a) (29 U.S.C. 731(a)) is amended--
       (A) in paragraph (1), by striking ``and development and 
     implementation'' and all that follows through ``referred to 
     in section 101(a)(34)(B)''; and
       (B) in paragraph (2)(A), by striking ``and such payments 
     shall not be made in an amount which would result in a 
     violation of the provisions of the State plan required by 
     section 101(a)(17)''.
       (8) Section 124(a)(1)(A) (29 U.S.C. 744(a)(1)(A)) is 
     amended by striking ``(not including sums used in accordance 
     with section 101(a)(34)(B))''.
       (9) Section 315(b)(2) (29 U.S.C. 777e(b)(2)) is amended by 
     striking ``101(a)(22)'' and inserting ``101(a)(16)''.
       (10) Section 635(b)(2) (29 U.S.C. 795n(b)(2)) is amended by 
     striking ``101(a)(5)'' and inserting ``101(a)(6)(A)(i)(I)''.
       (11) Section 802(h)(2)(B)(ii) (29 U.S.C. 797a(h)(2)(B)(ii)) 
     is amended by striking ``101(a)(5)(A)'' and inserting 
     ``101(a)(6)(A)(iv)''.

[[Page S 14824]]

       (12) Section 102(e)(23)(A) of the Technology-Related 
     Assistance for Individuals With Disabilities Act of 1988 (29 
     U.S.C. 2212(e)(23)(A)) is amended by striking ``section 
     101(a)(36) of the Rehabilitation Act of 1973 (29 U.S.C. 
     721(a)(36))'' and inserting ``section 101(a)(24) of the 
     Rehabilitation Act of 1973 (29 U.S.C. 721(a)(24))''.

     SEC. 410. INDIVIDUALIZED EMPLOYMENT PLANS.

       (a) In General.--Section 102 (29 U.S.C. 722) is amended--
       (1) by striking the section heading and inserting the 
     following:

     ``SEC. 102. INDIVIDUALIZED EMPLOYMENT PLANS.'';

       (2) in subsection (a)(6), by striking ``written 
     rehabilitation program'' and inserting ``employment plan'';
       (3) in subsection (b)--
       (A) in paragraph (1)(A)--
       (i) in clause (i), by striking ``written rehabilitation 
     program'' and inserting ``employment plan''; and
       (ii) in clause (ii), by striking ``program'' and inserting 
     ``plan'';
       (B) in paragraph (1)(B)--
       (i) in the matter preceding clause (i), by striking 
     ``written rehabilitation program'' and inserting ``employment 
     plan'';
       (ii) in clause (iv)--

       (I) by striking subclause (I) and inserting the following:

       ``(I) include a statement of the specific vocational 
     rehabilitation services to be provided (including, if 
     appropriate, rehabilitation technology services and training 
     in how to use such services) that includes specification of 
     the public or private entity that will provide each such 
     vocational rehabilitation service and the projected dates for 
     the initiation and the anticipated duration of each such 
     service; and'';

       (II) by striking subclause (II); and
       (III) by redesignating subclause (III) as subclause (II); 
     and

       (iii) in clause (xi)(I), by striking ``program'' and 
     inserting ``plan'';
       (C) in paragraph (1)(C), by striking ``written 
     rehabilitation program and amendments to the program'' and 
     inserting ``employment plan and amendments to the plan''; and
       (D) in paragraph (2)--
       (i) by striking ``program'' each place the term appears and 
     inserting ``plan''; and
       (ii) by striking ``written rehabilitation'' each place the 
     term appears and inserting ``employment'';
       (4) in subsection (c)--
       (A) in paragraph (1), by striking ``written rehabilitation 
     program'' and inserting ``employment plan''; and
       (B) by striking ``written program'' each place the term 
     appears and inserting ``plan''; and
       (5) in subsection (d)--
       (A) in paragraph (5), by striking ``written rehabilitation 
     program'' and inserting ``employment plan''; and
       (B) in paragraph (6)(A), by striking the second sentence.
       (b) Conforming Amendments.--
       (1) The table of contents for the Act is amended by 
     striking the item relating to section 102 and inserting the 
     following:

``Sec. 102. Individualized employment plans.''.

       (2) Paragraphs (22)(B) and (27)(B), and subparagraphs (B) 
     and (C) of paragraph (34) of section 7 (29 U.S.C. 706), 
     section 12(e)(1) (29 U.S.C. 711(e)(1)), section 501(e) (29 
     U.S.C. 791(e)), subparagraphs (C), (D), and (E) of section 
     635(b)(6) (29 U.S.C. 795n(b)(6) (C), (D), and (E)), section 
     802(g)(8)(B) (29 U.S.C. 797a(g)(8)(B)), and section 
     803(c)(2)(D) (29 U.S.C. 797b(c)(2)(D)) are amended by 
     striking ``written rehabilitation program'' each place the 
     term appears and inserting ``employment plan''.
       (3) Section 7(22)(B)(i) (29 U.S.C. 706(22)(B)(i)) is 
     amended by striking ``rehabilitation program'' and inserting 
     ``employment plan''.
       (4) Section 107(a)(3)(D) (29 U.S.C. 727(a)(3)(D)) is 
     amended by striking ``written rehabilitation programs'' and 
     inserting ``employment plans''.
       (5) Section 101(b)(7)(A)(ii)(II) of the Technology-Related 
     Assistance for Individuals With Disabilities Act of 1988 (29 
     U.S.C. 2211(b)(7)(A)(ii)(II)) is amended by striking 
     ``written rehabilitation program'' and inserting ``employment 
     plan''.

     SEC. 411. SCOPE OF VOCATIONAL REHABILITATION SERVICES.

       Section 103 (29 U.S.C. 723) is amended--
       (1) in subsection (a)(4)--
       (A) in subparagraph (B), by striking ``surgery or'';
       (B) in subparagraph (D), by striking the comma at the end 
     and inserting ``, and'';
       (C) by striking subparagraph (E); and
       (D) by redesignating subparagraph (F) as subparagraph (E); 
     and
       (2) in subsection (b)(1), by striking ``the most severe''.

     SEC. 412. STATE REHABILITATION ADVISORY COUNCIL.

       (a) In General.--Section 105 (29 U.S.C. 725) is amended--
       (1) in subsection (b)(1)(A)(vi), by inserting before the 
     semicolon the following: ``who, to the extent feasible, are 
     members of any State workforce development board established 
     for the State under section 105 of the Workforce Development 
     Act of 1995''; and
       (2) in subsection (c)--
       (A) by redesignating paragraphs (3) through (7) as 
     paragraphs (4) through (8), respectively;
       (B) by inserting after paragraph (2) the following new 
     paragraph:
       ``(3) advise the designated State agency and the designated 
     State unit regarding strategies for ensuring that the 
     vocational rehabilitation program established under this 
     title becomes an integral part of the statewide workforce 
     development system of the State;''; and
       (C) in paragraph (6) (as redesignated in subparagraph 
     (A))--
       (i) by striking ``6024), and'' and inserting ``6024),''; 
     and
       (ii) by striking the semicolon at the end and inserting the 
     following: ``, and any State workforce development board 
     established for the State under section 105 of the Workforce 
     Development Act of 1995;''.
       (b) Conforming Amendment.--Subparagraph (B)(iv), and 
     clauses (ii)(I) and (iii)(I) of subparagraph (C), of 
     paragraph (24) (as redesignated in section 409(a)(5)) of 
     section 101(a) (29 U.S.C. 721(a)) are amended by striking 
     ``105(c)(3)'' and inserting ``105(c)(4)''.

     SEC. 413. EVALUATION STANDARDS AND PERFORMANCE INDICATORS.

       Section 106(a)(1) (29 U.S.C. 726(a)(1)) is amended--
       (1) by striking ``1994'' and inserting ``1996''; and
       (2) by striking the period and inserting the following: 
     ``that shall, to the maximum extent appropriate, be 
     consistent with the State benchmarks established under 
     paragraphs (1) and (2) of section 131(c) of the Workforce 
     Development Act of 1995. For purposes of this section, the 
     Commissioner may modify or supplement such benchmarks, after 
     consultation with the Governing Board established under 
     section 301(b) of the Workforce Development Act of 1995, to 
     the extent necessary to address unique considerations 
     applicable to the participation of individuals with 
     disabilities in the vocational rehabilitation program.''.

     SEC. 414. REPEALS.

       (a) In General.--Title I (29 U.S.C. 720 et seq.) is 
     amended--
       (1) by repealing part C; and
       (2) by redesignating parts D and E as parts C and D, 
     respectively.
       (b) Conforming Amendments.--The table of contents for the 
     Act is amended--
       (1) by striking the items relating to part C of title I; 
     and
       (2) by striking the items relating to parts D and E of 
     title I and inserting the following:

      ``Part C--American Indian Vocational Rehabilitation Services

``Sec. 130. Vocational rehabilitation services grants.

    ``Part D--Vocational Rehabilitation Services Client Information

``Sec. 140. Review of data collection and reporting system.
``Sec. 141. Exchange of data.''.

     SEC. 415. EFFECTIVE DATE.

       (a) In General.--Except as provided in subsection (b), the 
     amendments made by this title shall take effect on the date 
     of enactment of this Act.
       (b) Statewide System Requirements.--The changes made in the 
     Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.) by the 
     amendments made by this title that relate to State 
     benchmarks, or other components of a statewide system, shall 
     take effect--
       (1) in a State that submits and obtains approval of an 
     interim plan under section 211 for program year 1997, on July 
     1, 1997; and
       (2) in any other State, on July 1, 1998.
                        TITLE V--OTHER PROGRAMS
       Subtitle A--Amendments to Immigration and Nationality Act

     SEC. 501. PROHIBITION ON USE OF FUNDS FOR CERTAIN EMPLOYMENT 
                   ACTIVITIES.

       Section 412(c)(1) of the Immigration and Nationality Act is 
     amended by adding at the end the following new subparagraph:
       ``(D) Funds available under this paragraph may not be 
     provided to States for workforce employment activities 
     authorized and funded under the Workforce Development Act of 
     1995.''.
                      Subtitle B--Welfare Programs

     SEC. 511. WELFARE REFORM.

       (a) Findings.--Congress finds that--
       (1) the current welfare system in the United States is 
     failing both the families who rely on the system and the 
     taxpayers who support the system;
       (2) the current system encourages dependency and fails to 
     promote self-sufficiency adequately;
       (3) one-size-fits-all approaches to welfare reform will not 
     work;
       (4) in order to be most effective, reforms of the welfare 
     system should take into account the individual differences 
     among States and among families;
       (5) in recent years there has been an alarming increase in 
     the number of births to unmarried teenagers;
       (6) between 1986 and 1991, births to teenagers increased by 
     23 percent, from 50.2 to 62.1 births per 1,000 teenage 
     females;
       (7) there is a crisis in the collection of child support 
     that is leaving thousands of families in poverty and is 
     increasing welfare costs to taxpayers; and
       (8) in 1991, the United States Commission on Interstate 
     Child Support reported that $5,000,000 of the $15,000,000 
     awarded in child support in 1991 went uncollected.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that any welfare reform legislation enacted by the Senate 
     should be based on the following principles:
       (1) Individuals on welfare should, from their first day on 
     welfare, accept responsibility for themselves and their 
     families. The receipt of welfare benefits by an individual 
     should be conditioned on a partnership between the individual 
     and the State in which the partners clearly delineate the 
     steps that the family of the individual will take to enable 
     the individual to move off welfare and into the workforce as 
     well as the services, including child care, that will be 
     provided by the State to enable the family to become self-
     sufficient. If an individual on welfare 

[[Page S 14825]]
     fails to meet the responsibilities of the individual there should be 
     consequences, such as a reduction in welfare benefits.
       (2) Each State should be given more flexibility to design 
     welfare programs that effectively respond to the needs of 
     welfare recipients in the State.
       (3) Welfare reform legislation should effectively respond 
     to the alarming increase in births to teenage parents.
       (4) Both parents have the responsibility for providing 
     financial support for their children, even if the parents are 
     divorced or were never married. Welfare reform should be 
     accompanied by aggressive efforts to improve the collection 
     of child support.
       (5) Welfare reform legislation should recognize the 
     interaction between the welfare system and the statewide 
     system to alleviate unintended consequences for persons other 
     than welfare recipients who are in need of workforce 
     development activities, as described in this Act.
       (6) Neither political party contributes all of the best 
     policies for welfare reform, so welfare reform legislation 
     should have widespread bipartisan support.
 TITLE VI--REPEALS OF EMPLOYMENT AND TRAINING AND VOCATIONAL AND ADULT 
                           EDUCATION PROGRAMS

     SEC. 601. REPEALS.

       (a) Immediate Repeals.--The following provisions are 
     repealed:
       (1) Section 204 of the Immigration Reform and Control Act 
     of 1986 (8 U.S.C. 1255a note).
       (2) Title II of Public Law 95-250 (92 Stat. 172).
       (3) The Displaced Homemakers Self-Sufficiency Assistance 
     Act (29 U.S.C. 2301 et seq.).
       (4) Section 211 of the Appalachian Regional Development Act 
     of 1965 (40 U.S.C. App. 211).
       (5) Subtitle C of title VII of the Stewart B. McKinney 
     Homeless Assistance Act (42 U.S.C. 11441 et seq.).
       (6) Section 5322 of title 49, United States Code.
       (7) Subchapter I of chapter 421 of title 49, United States 
     Code.
       (b) Subsequent Repeals.--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) 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)).
       (3) The Adult Education Act (20 U.S.C. 1201 et seq.).
       (4) The Carl D. Perkins Vocational and Applied Technology 
     Education Act (20 U.S.C. 2301 et seq.).
       (5) The School-to-Work Opportunities Act of 1994 (20 U.S.C. 
     6101 et seq.).
       (6) The Wagner-Peyser Act (29 U.S.C. 49 et seq.).
       (7) The Job Training Partnership Act (29 U.S.C. 1501 et 
     seq.).
       (8) Part F of title IV of the Social Security Act (42 
     U.S.C. 681 et seq.).
       (9) Title V of the Older Americans Act of 1965 (42 U.S.C. 
     3056 et seq.).
       (10) Title VII of the Stewart B. McKinney Homeless 
     Assistance Act (42 U.S.C. 11421 et seq.), other than subtitle 
     C of such title.
       (c) Effective Dates.--
       (1) Immediate repeals.--The repeals made by subsection (a) 
     shall take effect on the date of enactment of this Act.
       (2) Subsequent repeals.--The repeals made by subsection (b) 
     shall take effect on July 1, 1998.

     SEC. 602. CONFORMING AMENDMENTS.

       (a) Immediate Repeals.--
       (1) References to section 204 of the immigration reform and 
     control act of 1986.--The table of contents for the 
     Immigration Reform and Control Act of 1986 is amended by 
     striking the item relating to section 204 of such Act.
       (2) References to title ii of public law 95-250.--Section 
     103 of Public Law 95-250 (16 U.S.C. 79l) is amended--
       (A) by striking the second sentence of subsection (a); and
       (B) by striking the second sentence of subsection (b).
       (3) References to subtitle c of title vii of the stewart b. 
     mckinney homeless assistance act.--
       (A) Section 762(a) of the Stewart B. McKinney Homeless 
     Assistance Act (42 U.S.C. 11472(a)) is amended--
       (i) by striking ``each of the following programs'' and 
     inserting ``the emergency community services homeless grant 
     program established in section 751''; and
       (ii) by striking ``tribes:'' and all that follows and 
     inserting ``tribes.''.
       (B) The table of contents of such Act is amended by 
     striking the items relating to subtitle C of title VII of 
     such Act.
       (4) References to title 49, united states code.--
       (A) Sections 5313(b)(1) and 5314(a)(1) of title 49, United 
     States Code, are amended by striking ``5317, and 5322'' and 
     inserting ``and 5317''.
       (B) The table of contents for chapter 53 of title 49, 
     United States Code, is amended by striking the item relating 
     to section 5322.
       (b) Subsequent Repeals.--
       (1) Recommended legislation.--After consultation with the 
     appropriate committees of Congress and the Director of the 
     Office of Management and Budget, the Governing Board shall 
     prepare and submit to Congress recommended legislation 
     containing technical and conforming amendments to reflect the 
     changes made by section 601(b).
       (2) Submission to congress.--Not later than March 31, 1997, 
     the Governing Board shall submit the recommended legislation 
     referred to under paragraph (1).
       Amend the title so as to read: ``A bill to consolidate 
     Federal employment training, vocational education, and adult 
     education programs and create integrated statewide workforce 
     development systems, and for other purposes.''.

  The Senate proceeded to consider the bill.


                           Amendment No. 2885

              (Purpose: To provide a substitute amendment)

  Mrs. KASSEBAUM. Mr. President, under the terms of the unanimous-
consent agreement relating to consideration of S. 143, I send to the 
desk a substitute amendment.
  The PRESIDING OFFICER. The clerk will report.
  The assistant legislative clerk read as follows:

       The Senator from Kansas [Mrs. Kassebaum] proposes an 
     amendment numbered 2885.

  Mrs. KASSEBAUM. Mr. President, I ask unanimous consent that the 
reading of the amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  (The text of the amendment is printed in today's Record under 
``Amendments Submitted.'')
  The PRESIDING OFFICER. The Senator from Kansas.
  Mrs. KASSEBAUM. Mr. President, I am pleased that today the Senate is 
considering Senate bill 143, the Work Force Development Act of 1995. 
This legislation is the product of several years of bipartisan efforts 
to bring about real and comprehensive reform of Federal job training 
programs.
  I do not think anyone would argue about the need for bold and far-
reaching change in our current patchwork of training programs. S. 143 
provides that change.
  The members of the Senate Labor and Human Resources Committee spent a 
lot of time in a number of hearings considering innovative, creative 
and constructive approaches to reform, and I am pleased that we are now 
going to take up consideration of this bill under a time agreement and 
give it our full attention.
  Right now, the Federal Government runs well over 100 separate job 
training programs, each with its own set of rules and regulations. In 
combination, they create a maze of confusion to anyone who needs help 
getting a job. As often as not, they spell disappointment, not results, 
for those who have sought assistance in building a better life for 
themselves and their families.
  Year after year, the General Accounting Office [GAO] has worked 
tirelessly to document how conflicting requirements and program overlap 
have reduced effectiveness and added unnecessary costs.
  What is worse, Mr. President, is that right now we have almost no 
idea how well any of these programs are performing. The GAO concluded 
that most Federal agencies have no idea whether their programs work.
  As just one example, last year Senator Kennedy, the ranking member of 
the Senate Labor and Human Resources Committee, and I asked Department 
of Labor officials to tell us how many people are placed in permanent 
jobs after they receive Federal training. With the exception of one 
program, the Department of Labor keeps no records of how many people 
get jobs after the taxpayers fund their training. I was not only 
surprised by this finding but, frankly, troubled as well.
  Mr. President, I concluded some time ago that the only way to truly 
reform Federal job training was to wipe the slate clean and begin 
again, and that is where the Work Force Development Act starts. This 
bill repeals over 80 different job training programs. They are wiped 
off the books, along with the stacks of regulations that go with them.
  But the repeal of all the major Federal job training programs is just 
the first step toward real reform. In place of these programs, S. 143 
would give States and local communities the flexibility and the means 
to fashion training programs and placement services that meet the local 
needs of job seekers and employers alike.
  This is a critical change if we want to be successful in helping 
people find jobs. S. 143 would combine funds from these 80-odd programs 
and turn them over to the States and, in turn, to local communities, so 
that training programs will be tailored to actual jobs available in the 
community.
  Let me emphasize that the Work Force Development Act is more than 
just another block grant proposal. I 

[[Page S 14826]]
would like to discuss briefly four reasons why I believe this 
legislation will bring a comprehensive transformation in our approach 
to job-related training and education.
  First, S. 143 will establish in each State a coordinated work force 
development system where everyone, regardless of why they are 
unemployed, can find help. Arbitrary eligibility requirements will be 
gone, as will the duplication now being created by having separate, 
independent programs offering essentially the same services.
  Savings and greater efficiency are bound to result from 
consolidation, as each State develops its own coordinated plan to meet 
the needs of its workers and the private sector.
  One-stop centers, broadly defined in the bill, form the cornerstone 
of each State's system. These are places that will be easy to find and 
easy to use. They will be available to anyone wanting to gain access to 
basic services, such as job listings, placement help and counseling.
  I think, Mr. President, we have done a poor job in our ability to 
serve and assist those who are looking for jobs, and far too often, 
there are many individuals who get lost in the cracks.
  At these one-stop centers, individuals will be given the full array 
of available options, from further education to on-the-job training in 
private industry. Many States have already adopted the one-stop 
approach, and S. 143 gives each State greater flexibility to adopt a 
method that works for that State.

  The second unique feature of this legislation is its emphasis on 
accountability. In exchange for flexibility in the use of the funds, 
each State must set goals and benchmarks laying out how they will 
improve skills and provide real jobs.
  This means that, for the first time, we will know exactly how many 
persons getting training actually get a job and for how long. Further, 
if a State fails to live up to its goals and benchmarks, it will face 
monetary sanctions.
  Unlike the current system, States will be accountable for real 
results, and taxpayers will know what they are getting for their 
Federal job training dollars.
  The third key feature of S. 143 is the significant role it gives to 
the private sector. It goes without saying that all the job training in 
the world will not help unless there are jobs available at the end of 
the road. Ultimately, it is the private sector that will provide these 
jobs, and they must be brought into the system in an integral way to 
help develop programs that work for each State and local community.
  That is why the active and meaningful involvement of employers and 
businesses is critical to the success of any job training effort. No 
legislation can ever guarantee such involvement. Nevertheless, we have 
assured that businesses, large and small, will be at the table in the 
planning and implementation of the new system at every level--local, 
State, and Federal.
  In addition, the legislation provides an incentive for greater 
business involvement, by permitting a limited portion of job training 
funds to be used for economic development in States which establish 
formal local boards.
  Finally, and perhaps most important, this legislation will forge a 
new link between education and training. Mr. President, there is one 
thing that is fundamental to the success of any work force development 
effort and that is sound, strong education programs. We have often 
talked about the important link between quality vocational education 
and job training. But we have done very little to really forge that 
link in a way that will last, both at the Federal level and the State 
and local level. Basic education is often the foundation, and should 
be, of any successful job training program.
  While vocational education is clearly aimed toward job preparation, 
we have paid far too little attention to vocational education over the 
years. It has been shoved off to the side and not made an integral part 
of the total work force preparation process.
  In spite of the obvious connections, vocational and adult educators 
and job training providers have lived far too often in different 
worlds. As often as not, they have operated independently, sometimes at 
cross purposes.
  The Workforce Development Act brings the education and training 
communities together in each State through a collaborative planning 
process. This process gives all interested parties the opportunity to 
sit down together and work toward common goals.
  Moreover, they will have every incentive to cooperate because the 
stakes will be high. S. 143 provides that half of each State's funds be 
placed in a flexible account to be used in whatever mix of education 
and training the State sees fit. This flex account will be the vehicle 
through which all parties will come together to develop a unified 
training system.
  This bill also brings down the walls between training and education 
at the Federal level. Two offices--one in the Department of Labor, the 
other in the Department of Education--are both eliminated. They are 
replaced by a single Federal partnership to oversee State efforts, 
reducing by at least one-third the number of Federal employees now 
involved with work force training and education programs.
  These four features, I believe, are really the heart of this 
legislation. We will see the creation of a new initiative that I am 
convinced will provide far better services than we currently do, 
through the myriad job training programs that have been added on top of 
each other over the years without thinking of how they should really 
fit together.
  These four features are one-stop centers, strong accountability, 
private sector involvement, and links between education and training. 
Together, they create a new, bold, and innovative approach to Federal 
support of work force development.
  In addition, the bill contains two provisions that deal specifically 
with at-risk youth and the disabled. There is a separate subtitle for 
Job Corps and other activities aimed at addressing the specific needs 
of our most vulnerable young people.
  There will be more discussion on Job Corps in the course of today's 
debate. But I want to emphasize at the outset that Job Corps is not a 
part of the block grant. Rather, it remains as a separate program that 
is fully funded. However, it does mean an end to Federal administration 
of the Job Corps Program, and allows the States the flexibility to 
design a program with their Job Corps center that best meets the needs 
of the population being served there.
  Title II amends the Rehabilitation Act of 1973 to integrate 
vocational rehabilitation programs into the State's training system, 
while still recognizing the unique requirements of bringing the 
disabled into the work force.
  As I noted at the outset, Mr. President, many years of work have gone 
into the development of this legislation. Members of the Labor 
Committee, in particular, have devoted a great deal of time in helping 
to shape this bill. I want to acknowledge all of their efforts as well 
as the contributions made by a number of Members who do not serve on 
the committee.
  I also note that it would not have been possible to tackle a project 
of this scope without the benefit of the expertise of that individual 
Members brought to this issue.
  Senator Frist was especially helpful in integrating vocational 
rehabilitation programs for the disabled into the statewide system. 
Senator DeWine played a key role in developing a separate provision for 
at-risk youth. Senator Jeffords, as chairman of the Education 
Subcommittee, was particularly helpful in shaping the education 
provisions.
  On the other side of the aisle, I want to recognize the support and 
contributions of Senator Pell, ranking member of the Education 
Subcommittee, whose early and steadfast support has been invaluable. 
Likewise, the Senator from Nebraska, Senator Kerrey, deserves special 
recognition. He has been a stalwart supporter of job training reform, 
as a cosponsor of this bill in its earlier versions.
  S. 143 has a broad spectrum of support that includes Governors, 
representatives of the business community, and educators that will play 
a key role in the development of this new system.
  We have received letters of support from the Republican Governors 
Association, the National Governors' Association, the State Board of 
Vocational Technical Education, the National School Boards Association, 
the American Vocational Association, the Council of Great City Schools, 
the National 

[[Page S 14827]]
Association of Manufacturers, the U.S. Chamber of Commerce, and the 
National Alliance of Business.
  Mr. President, I ask unanimous consent that these letters be printed 
in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                                State of Michigan,


                                       Office of the Governor,

                                     Lansing, MI, October 5, 1995.
     Hon. Nancy Kassebaum,
     Chairwoman, Senate Labor and Human Resources Committee, U.S. 
         Senate, Washington, DC.
       Dear Senator Kassebaum: On behalf of the Republican 
     Governors' Association Workforce Development Task Force, we 
     write to indicate our strong support for S. 143, the 
     Workforce Development Act.
       As you know, earlier this year, the RGA Workforce Task 
     Force developed a comprehensive statement of principles 
     outlining our vision and recommendations for consolidating 
     existing federal employment and job training programs. We 
     believe your approach as demonstrated in S. 143 lays the 
     groundwork for a statewide workforce development system and 
     meets many of the objectives we named.
       While we strongly support S. 143 and urge the full Senate 
     to approve the bill, we oppose amendments that would 
     dismantle the intended consolidation, create new set-asides, 
     or impair the flexibility states would have in implementing 
     the Workforce Development Act. In particular, we oppose 
     amendments requiring mandatory vouchers and mandatory local 
     workforce boards or which limit the authority of Governors in 
     designing and implementing the statewide workforce 
     development system.
       Regarding vouchers, while many states are interested in 
     experimenting with vouchers, this remains an untried and 
     unproven delivery system. While we support legislation 
     allowing states to use vouchers as an option, it is 
     inappropriate to impose a mandate at this time when states do 
     not have the administrative capability or resources to 
     immediately implement such a system.
       This same reasoning applies to mandated local workforce 
     boards. We believe most Governors will choose to develop a 
     local delivery system. However, some states, in particular 
     small states, may not have the resources to efficiently 
     implement mandated local workforce development boards. It is 
     important to structure local partnerships in a manner best 
     suited for states while recognizing individual differences in 
     the states.
       Concerning FUTA issues, we support your efforts to ensure 
     that FUTA revenues remain dedicated to their intended 
     purposes while integrating them into a statewide workforce 
     development system under a Governor's strategic control. We 
     appreciate your work in this direction.
       Finally, we believe provisions of the bill providing a 25% 
     set-aside in funding for State Education Agencies should be 
     included in the same block grant that flows to Governors for 
     design of a statewide workforce development system. Education 
     services are a critical component of successful career 
     preparation and training programs. Providing Governors with 
     greater access and linkage to education services will enable 
     us to deliver a uniform, integrated and accountable workforce 
     development delivery structure and eliminate duplication. We 
     appreciate your serious consideration of options to address 
     this issue, and our staff's are prepared to work with you in 
     discussing possible courses of action.
       Again, we thank you and your staff for your excellent 
     leadership and hard work. We appreciate the positive working 
     relationship we have enjoyed and the many opportunities you 
     have provided us to participate in the drafting process. We 
     look forward to continuing to work with you as you conference 
     S. 143 with the House CAREERS Act.
           Sincerely,
     Tommy G. Thompson,
                                            Governor of Wisconsin.
     John Engler,
                                             Governor of Michigan.
     Terry E. Branstad,
                                                 Governor of Iowa.
     Christine Todd Whitman,
                                           Governor of New Jersey.
     George V. Voinovich,
     Governor of Ohio.
                                                                    ____



                               National Governors Association,

                                  Washington, DC, October 6, 1995.
     Hon. Nancy Landon Kassebaum,
     Chair, Committee on Labor and Human Resources, U.S. Senate, 
         Washington, DC.
       Dear Senator Kassebaum: We are pleased that the Senate will 
     consider S. 143, the Workforce Development Act, next week and 
     want to express our strong support for your efforts to reform 
     and consolidate federal workforce development programs. While 
     we remain concerned about funding setasides within the block 
     grant, we believe that this legislation gives states great 
     flexibility while holding us accountable for achieving 
     results. This flexibility is especially critical given 
     federal funding reductions in these programs.
       As you put the finishing touches on S. 143 and take up 
     amendments on the floor, our paramount concern is that you 
     give Governors room to design programs that best meet the 
     unique needs of our individual states. States have been 
     moving toward integration of workforce development programs 
     for at least a decade. It is imperative that federal 
     legislation recognize the diversity of these efforts and not 
     override state innovation with overly prescriptive federal 
     rules or mandates. Therefore, we support any modifications 
     that may be made to the bill that would increase the ability 
     of states to develop a fully integrated workforce development 
     system. In addition, we would support the availability of 
     national reserve funds to assist states in the event of 
     natural disasters, mass layoffs or to meet the needs of 
     migrant workers.
       We strongly oppose, therefore, amendments that move the 
     bill toward federal micromanagement of the program. These 
     include the following amendments:
       An amendment to be offered by Senator Breaux to mandate the 
     use of vouchers for job training services to dislocated 
     workers. Governors support the bill's option for states to 
     use vouchers and many states plan to test the use of them. We 
     cannot support, however, mandating nationally this new 
     service delivery mechanism.
       Two amendments to be offered by Senators Jeffords and Pell. 
     The first would place further restrictions on how states may 
     use block grant funds by moving funds out of the ``flex 
     account'' and into the setasides for workforce education and 
     workforce employment activities. If this amendment were 
     adopted, two thirds of the block grant funds would be rigidly 
     assigned to certain activities, giving states flexibility 
     with only one-third of the funds. The second Jeffords/Pell 
     amendment would dictate what proportion of funds may be used 
     for vocational versus adult education. We oppose this 
     amendment as further limiting the ability of states to 
     allocate funds according to their citizens' needs.
       An amendment that may be offered by Senator Ashcroft to 
     require states to conduct drug tests of clients served by 
     workforce development. Given that federal workforce 
     development aid is already being reduced in the 
     appropriations process, we would view this requirement as an 
     unfunded mandate.
       An amendment to be offered by Senator Kyl to mandate local 
     workforce boards. While many Governors do intend to create 
     such boards, this decision should be left to states.
       Finally, we are concerned about some provisions of S. 143 
     and hope that we may work with you to resolve them before 
     final passage of any federal workforce legislation. First, we 
     understand that you have added to the bill a provision which 
     preempts state law and court rulings in at least six states 
     by requiring that all block grant funds be subject to all 
     procedures and rules applicable to state funds, including 
     appropriation by state legislatures. We strongly object to 
     this attempt to rewrite state laws through federal 
     legislation and ask that this provision be stricken from the 
     bill. The inclusion of this language could result in funds 
     being allocated in a way that overrides the collaborative 
     process involving the Governor, business representatives, the 
     state education agency, and others required by the bill. If 
     this occurs, state accountability will be lost because there 
     will be no link between the state plan, including state goals 
     and benchmarks, and the allocation of funds.
       Similarly, the bill would overturn existing authority for 
     adult and vocational education in at least 15 states by 
     giving sole authority for these programs to state education 
     agencies. State education agencies do not now have authority 
     over funding or administration of these programs in these 
     states. We ask that you revise the bill to recognize the full 
     range of entities that now fund and administer these 
     programs.
       We remain opposed to the segregation of block grant funds 
     and administration into workforce employment and workforce 
     education categories. We strongly believe that these 
     activities should be integrated as much as possible, as 
     Congress did under the School-to-Work Opportunities Act. The 
     collaborative group of state education officials, the 
     Governor, workforce officials, and others should be 
     responsible for all of the state plan and all of the funding, 
     not just for the strategic plan and ``flex account'' funds. 
     This is the only way to achieve an integrated system. We look 
     forward to working with you and your staff during the 
     conference process to give states as much opportunity as 
     possible to integrate workforce activities.
       We strongly oppose the bill's requirement that individuals 
     in need of job training have a high school diploma or GED, or 
     be enrolled in adult education, before entering job training. 
     There is no clear evidence that having a GED increases 
     individuals' employability or earnings, and we believe 
     barring these individuals from training is counterproductive. 
     Indeed, research shows that upgrading basic skills within the 
     context of job training can be much more effective than adult 
     education alone. Furthermore, the adult education system does 
     not have the capacity to serve all of these individuals and 
     therefore this requirement could pose an unfunded mandate on 
     states, especially since Congress is simultaneously reducing 
     federal job training and adult education aid to states. This 
     requirement poses a particular problem for serving welfare 
     recipients because, under the Senate's welfare bill, job 
     training may be counted toward meeting work participation 
     rates but adult education may not be counted.
       Thank you for considering our views. We look forward to 
     working with you to achieve 

[[Page S 14828]]
     final passage of workforce development reform legislation this year.
           Sincerely,
     Gov. Arne H. Carlson,
                                 Chair, Human Resources Committee.
     Gov. Tom Carper,
     Vice Chair, Human Resources Committee.
                                                                    ____

                                                  State Directors,


                               Vocational Technical Education,

                                  Washington, DC, October 5, 1995.
     Hon. Nancy Landon Kassebaum,
     Chair, Senate Labor and Human Resources Committee, Russell 
         Office Building, Washington, DC.
       Dear Chairman Kassebaum: We are writing in strong support 
     and with special appreciation for your leadership and strong 
     commitment to the American workforce and to the country's 
     Vocational Education system. The National Association of 
     State Directors of Vocational Technical Education (NASDVTEc) 
     strongly supports the passage of S. 143, the Workforce 
     Development Act of 1995.
       Our organization's support is based on S. 143's clear 
     commitment to high quality vocational technical education. 
     The bill provides the opportunity for flexibility, adaptation 
     and change that is essential to the continuous improvement of 
     the vocational technical education system, while assuring a 
     positive partnership between state and local education 
     agencies to plan, administer, and improve programs. We are 
     pleased that the bill provides agencies to plan, administer, 
     and improve programs. We are pleased that the bill provides a 
     specific allocation for education and for the maintenance of 
     state and local funding. These are critical elements to 
     assuring that high quality vocational technical education is 
     available.
       NASDVTEc is concerned that the current reduced 
     authorization level (a result of programs being removed from 
     the bill) may jeopardize the ability of the vocational 
     education system to continue to expand and improve to meet 
     the rapidly changing technical needs of employers. We support 
     efforts to return funding for workforce education to its 
     original or increased level.
       Thank you for your leadership in preparing this important 
     legislation. NASDVTEc also wants to thank and commend your 
     staff, in particular Wendy Cramer, for her dedication and 
     patience throughout this process. If you have any questions 
     or need any additional information, please do not hesitate to 
     contact me or Kimberly A. Kubiak, NASDVTEc's Associate 
     Executive Director at 202-737-0303.
           Sincerely,
                                            Madeleine B. Hemmings,
     Executive Director.
                                                                    ____

                                                  State Directors,


                               Vocational Technical Education,

                                  Washington, DC, October 5, 1995.
     Member,
     U.S. Senate,
     Washington, DC.
       Dear Senator: The National Association of State Directors 
     of Vocational Technical Education (NASDVTEc) strongly urges 
     you to vote in favor of S. 143, the Workforce Development Act 
     of 1995 when the Senate considers it on Tuesday, October 10, 
     1995.
       Our organization strongly supports S. 143 because of its 
     explicit commitment to quality Vocational Technical 
     Education. The bill provides the opportunity for flexibility, 
     adaptation and change that is essential to the continuous 
     improvement of the vocational technical education system, 
     while assuring a positive partnership between state and local 
     education agencies to plan, administer, and improve programs. 
     We are pleased that the bill provides a specific allocation 
     for education and for the maintenance of state and local 
     funding. These are critical elements to assuring that high 
     quality vocational technical education is available.
       NASDVTEc is concerned that the current reduced 
     authorization level (a result of programs being removed from 
     the bill) may jeopardize the ability of the vocational 
     education system to continue to expand and improve to meet 
     the rapidly changing technical needs of employers. We support 
     efforts to return funding for workforce education to its 
     original or increased level.
       Thank you for your support of this nation's only 
     Occupational Education System. If you have any questions or 
     need any additional information, please do not hesitate to 
     contact me or Kimberly A. Kubiak, NASDVTEc's Associate 
     Executive Director at 202-737-0303.
           Sincerely,
                                            Madeleine B. Hemmings,
     Executive Director.
                                                                    ____



                                                         NSBA,

                                  Alexandria, VA, October 5, 1995.
     Member,
     U.S. Senate,
     Washington, DC.
       Dear Senator: On Tuesday, October 10, you will be faced 
     with a floor vote on S. 143, the Workforce Development Act. 
     School board members are pleased that this bill reflects many 
     provisions that are good for education and we are in support 
     of this legislation. The National School Boards Association 
     represents 95,000 local school board members nationwide who 
     make the key fiscal and education policy decisions for local 
     school districts.
       NSBA wants to commend Senator Kassebaum for her sponsorship 
     and leadership during the months of debate on this bill. She, 
     along with committee staff from Senate Labor and Human 
     Resources, have been strong advocates for vocational 
     education and local control. Her bill, S. 143, contains the 
     following provisions which NSBA completely support:
       (1) A guaranteed workforce education allocation of not less 
     than 25% in the block grant funds;
       (2) A local governance structure in which the local 
     education agencies (LEAs) apply to the state education 
     agencies (SEAs) for funds and the LEAs are represented on 
     local workforce development boards;
       (3) A uniform substate formula for the funds to be 
     distributed directly from the SEAs to the LEAs; and
       (4) A supplement, not supplant statement, thereby ensuring 
     that the federal vocational education dollars are used to 
     improve local education programs.
       Despite the disappointing authorization level for this 
     legislation, NSBA supports the many fine education provisions 
     in S. 143. NSBA urges you to vote for this bill and not to 
     support any floor amendments which would remove any of these 
     education components. If you have any questions or concerns, 
     please contact Kathryn L. McMichael, Director, Federal 
     Relations, 703-838-6782.
       Thank you for your support.
           Sincerely,
     Roberta G. Doering,
       President.
     Thomas A. Shannon,
       Executive Director.
                                                                    ____



                              American Vocational Association,

                                  Alexandria, VA, October 4, 1995.
     Hon. Nancy Kassebaum,
     Chair, Labor and Human Resources Committee, Russell Office 
         Building, Washington, DC.
       Dear Chairman Kassebaum: Thank you very much for all of 
     your efforts to develop a consolidation proposal for 
     vocational education and job training which underscores the 
     value of quality workforce education. The American Vocational 
     Association (AVA) actively is urging the passage of the 
     Workforce Development Act (S. 143).
       Since the earliest drafts of this bill were circulated, AVA 
     has been very supportive of the structure of S. 143. We are 
     pleased that the bill promotes innovative approaches to 
     planning and implementing workforce education activities 
     while retaining the critical expertise and authority of state 
     and local educators in developing and administering education 
     programs. Further, your commitment to a specific allocation 
     of education, as well as a sub-state distribution formula and 
     the maintenance of state and local funding, are critical 
     components in attaining the highest quality workforce 
     education.
       With the passage of the CAREERS Act in the House, which AVA 
     opposed, it is even more imperative that your bill pass the 
     Senate and that its structure be preserved in conference.
       While earlier versions of S. 143 contained a higher 
     authorization level due to the incorporation of a few 
     programs which have now been removed, the resulting bill cuts 
     the authorization to a degree that jeopardizes the potential 
     to improve the quality and expand the availability of 
     vocational education programs. Therefore, AVA urges the 
     passage of the Pell-Kennedy amendment to change the 
     allocation of workforce education, workforce employment, and 
     flexible funds to an even one-third allocation for each.
       Again, thank you for your leadership in preparing this 
     important legislation and for considering our views. I also 
     want to thank and commend your staff, particularly Wendy 
     Cramer and Carla Widener, for their dedication and assistance 
     throughout this process. If you have any questions or need 
     additional information, please feel free to contact me or 
     Nancy O'Brien, AVA's Assistant Executive Director for 
     Government Relations, at 703/683-3111, ext. 311.
           Sincerely,
                                                     Bret Lovejoy,
     Executive Director.
                                                                    ____



                            Council of the Great City Schools,

                                  Washington, DC, October 3, 1995.
     Hon. Nancy Kassebaum,
     Chairman, Senate Committee on Labor and Human Resources, U.S. 
         Senate, Washington, DC.
       Dear Senator Kassebaum: The Council of the Great City 
     Schools, the coalition of the nation's largest urban school 
     districts, is pleased to support S. 143, the Workforce 
     Development Act, as it moves to consideration by the full 
     Senate. Your efforts to maintain a distinct occupational 
     education program for secondary students, which is designed 
     and delivered by the nation's schools reflects an important 
     commitment to continuing progress toward the educational 
     goals of the country.
       Your bill not only addresses many of the larger issues 
     surrounding occupational education and training, but also 
     specifically deals with important operational details which 
     can make or break a federal legislative initiative, such as 
     the intrastate distribution of funds, and maintenance of 
     effort.
       While the Council cannot endorse the lowering of the 
     authorization of appropriations, we still support your bill. 
     One very specific area of concern, however, relates to the 
     loss of the JOBS and other authorizations during the floor 
     action on Welfare Reform. The removal of these authorization 
     levels will lower the overall funds available for the block 
     grant, and thereby also lower funds available for the 25% 
     set-aside for workforce 

[[Page S 14829]]
     education. The Council, therefore, is requesting that you support a 
     potential Pell-Kennedy amendment to adjust each of the set-
     aside percentages in the block grant to 33%.
       As you might imagine, the Council of the Great City Schools 
     rarely supports block grant legislation. However, your 
     efforts to craft a pragmatic piece of legislation and to 
     reach out for input from our organization and our colleagues, 
     as well as to the other side of the aisle, require 
     appreciative acknowledgment and our support.
           Sincerely,
                                                 Michael Casserly,
     Executive Director.
                                                                    ____

     October 5, 1995.
       Dear Senator: We write to ask you to vote for S. 143, the 
     Workforce Development Act when it comes before the Senate for 
     consideration on Tuesday, October 10. This legislation 
     maintains the integrity of federal investment in the quality 
     of vocational-technical education and access to adult 
     education, and respects state sovereignty and local authority 
     for education. The separate allocation for workforce 
     education programs and provisions for the active involvement 
     of state and local education agencies and officials in the 
     planning of a comprehensive workforce development system are 
     critical components of America's high-skill, high-wage 
     economy of the 21st Century.
       We enthusiastically support the following provisions of S. 
     143:
       A guaranteed allocation of block grant funds for workforce 
     education programs and activities;
       Planning and administration of the workforce education 
     program by state and local education authorities and 
     postsecondary institutions, together with procedures for 
     their participation in the development and approval of 
     comprehensive workforce development plans;
       A uniform substate formula for distribution of workforce 
     education funds to local schools and postsecondary 
     institutions; and
       Assurances that state and local financial effort will be 
     maintained and that federal funds will supplement, not 
     supplant state and local resources for vocational-technical 
     and adult education.
       Together these provisions will help sustain a national 
     priority on the quality of the vocational-technical education 
     our students need and access to adult education. They will 
     more closely connect programs under this Act to federal, 
     state and local funding streams for improved education and 
     training. We urge your support of these provisions and call 
     your attention to potential floor amendments.


               SUPPORT ONE-THIRD ALLOCATION FOR EDUCATION

       First, we have a major concern about the total funding for 
     vocational/technical education under this Act and seek your 
     support to increase it. The specific allocations for 
     education and job training within the Workforce Development 
     Act were initially calculated to approximate current federal 
     investment in the antecedent programs. However, removal of 
     the JOBS and food stamp employment authorities from the block 
     grant subantitally reduces the total funds available for the 
     Act. The potential impact the legislation offers for planning 
     and sustaining necessary workforce development is jeopardized 
     if the minimum allocations for workforce education and 
     workforce employment programs are insufficient. We strongly 
     urge your support of the Pell-Kennedy amendment which will be 
     offered to raise the guaranteed allocation of education and 
     job training funds from 25 percent of each component to 33\1/
     3\ percent of the block grant for each component.


                OPPOSE UNDERMING OF WORKFORCE EDUCATION

       Second, we urge also that you oppose any amendment which 
     would undermine or eliminate specific allocations of funds 
     for workforce education activities and oppose any amendment 
     which would supersede state sovereignty and local control in 
     the governance and administration of education.
       On behalf of the students, parents, teachers, school 
     leaders, postsecondary providers, and state education 
     officials we represent, we urge your support of S. 143 
     together with the positions on amendments listed above. Thank 
     you for consideration of our views and concerns.
           Sincerely,
       American Association of Family and Consumer Sciences.
       American Association of School Administrators.
       American Vocational Association.
       California Department of Education.
       Council for Educational Development and Research.
       Council of Chief State School Officers.
       Council of Great City Schools.
       National Association of Secondary School Principals.
       National Association of State Boards of Education.
       National Association of State Directors of Vocational and 
     Technical Education Consortium.
       National School Boards Association.
       Texas Education Agency.
       Vocational Industrial Clubs of America.
                                                                    ____



                        National Association of Manufacturers,

                                  Washington, DC, October 4, 1995.
     Hon. Nancy Kassebaum,
     Chair, Labor and Human Resources Committee, U.S. Senate, 
         Russell Senate Office Building, Washington, DC.
       Dear Senator Kassebaum: For more than two years, we have 
     supported consolidation and reform of the current plethora of 
     federal job-training programs. We congratulate you, as the 
     chairwoman of the Senate Labor and Human Resources Committee, 
     on your persistent and creative efforts to design a system 
     that is cost-effective, reduces duplications and targets real 
     jobs with systematic involvement of the business community.
       You have consistently responded to our concerns. You have 
     been open to the views of the business community as well as 
     other constituencies. You have worked in a bipartisan fashion 
     with Senator Kennedy and your committee to structure a fair 
     approach. S. 143, the Workforce Development Act of 1995, 
     creates a road map for reform and should receive the full 
     endorsement of the Senate when it takes up this measure next 
     week.
       The status quo is unacceptable. While there may be ways in 
     which S. 143 could be made even better, we believe swift 
     passage is the correct course. Then we can begin to address 
     the need for a job-training system that works effectively 
     today, when fewer dollars must be spent more wisely. We plan 
     to work closely with you and others on these matters.
       Job-training reform is long overdue. It is essential to 
     move forward with the effort to create effective programs 
     that will help the U.S. workforce be the best in the world. 
     We at the NAM and our affiliates at the state level plan to 
     be vigorously involved in the eventual implementation of this 
     effort.
           Sincerely,
     Paul R. Huard.
                                                                    ____

         Chamber of Commerce of the United States of America,
                                  Washington, DC, October 5, 1995.
       Members of the U.S. Senate: The U.S. Chamber of Commerce, 
     representing 215,000 businesses, 3,000 state and local 
     chambers of commerce, 1,200 trade and professional 
     associations, and 73 American Chambers of Commerce abroad, 
     urges your support for the Workforce Development Act (S. 
     143), which is scheduled for floor consideration on October 
     10.
       The Workforce Development Act, sponsored by Senator Nancy 
     Kassebaum (R-KS), contains many provisions that the Chamber 
     supports, S. 143 would consolidate and decentralize roughly 
     100 federal education and training programs into a simpler, 
     integrated block grant system for states. The bill also would 
     enable small businesses and local chambers of commerce to 
     compete with the public sector in the delivery of education 
     and training services; recognize the important role of 
     business in the design and implementation of the new system; 
     and promote the effective use of technology and the 
     development of labor-market information to orient education 
     and training services.
       In addition to these provisions, the Chamber is encouraged 
     that the Workforce Development Act maintains the important 
     goal of preparing students and workers for skills needed in 
     the modern workplace. S. 143 aims to achieve this goal by 
     adopting many new approaches to workforce development. 
     Examples include promoting the use of vouchers rather than 
     funding streams for institutions and programs; establishing 
     user-friendly, one-stop delivery centers where individuals 
     and employers can share and obtain relevant job information; 
     opening the door to new measures of accountability rather 
     than relying on the old measure bureaucratic processes; and 
     encouraging the creation of effective business-education 
     partnerships.
       Many, if not most, of these provisions are found in the 
     Chamber's policy statement on restructuring the federal 
     training and employment system. A copy of this statement is 
     attached, for your review.
       For American business, the knowledge and skills of 
     employees are the critical factors for economic success and 
     international competitiveness. The Workforce Development Act 
     embodies language that can help achieve this end of creating 
     a world-class workforce development system that is responsive 
     to today's skill needs. Again, we urge your support for S. 
     143, and your opposition to any weakening amendments. Doing 
     so will dramatically enhance the possibility of enacting 
     meaningful workforce development legislation during the 104th 
     Congress.
           Sincerely,
     R. Bruce Josten.
                                                                    ____



                                National Alliance of Business,

                                  Washington, DC, October 6, 1995.
     Hon. Nancy Landon Kassebaum,
        Chairperson, Committee on Labor and Human Resources, U.S. 
                                           Senate, Washington, DC.
       Dear Senator Kassebaum: On behalf of the Alliance, I 
     strongly support Senate passage of S. 143, the Workforce 
     Development Act of 1995. I commend you highly for the 
     consistent bipartisan, consultative approach you have 
     employed, especially with the business community, while 
     developing the text of S. 143 for Senate action on October 
     10. The legislation takes an historic step toward 
     consolidating dozens of education and training programs into 
     an integrated workforce development system for the states.
       The business community supports the innovations in the bill 
     authorizing governors to use proven methods for business 
     involvement such as establishing state and local workforce 
     development boards to help ensure a close link between the 
     services provided and skills needed in the modern workplace. 
     We support one-stop career centers and the use of vouchers. 
     We applaud the emphasis on 

[[Page S 14830]]
     program results and accountability for performance, especially against 
     high standards, and the integration of academic achievement 
     with work-based learning.
       Provisions in the bill giving a lead role in the design, 
     management, and evaluation of workforce development systems 
     are particularly good when the governor chooses the option of 
     establishing state and local workforce development boards. We 
     believe that a workforce development system will not work 
     effectively without a lead role of employers. Our view, as 
     you know, prefers to mandate the establishment of local 
     workforce development boards for this purpose.
       As you go on to perfect this bill throughout the 
     legislative process, I look forward to working with you to 
     strengthen the role of business in the system, so that the 
     bill's primary goal of workforce preparation and development 
     meets the competitive needs of employers.
       Under the bipartisan leadership you have employed and the 
     continued cooperation between the business community and your 
     committee, I am confident that this legislation can result in 
     the most effective workforce preparation system possible for 
     our country.
           Sincerely,
                                               William H. Kolberg,
                                                        President.

  Mrs. KASSEBAUM. Over the past few years, I believe a bipartisan 
consensus has developed on the need to overhaul current Federal 
training efforts. I want to especially acknowledge the cooperation of 
the ranking member, Senator Kennedy, in moving this bill forward.
  Although we may not be in complete agreement about the solution, 
Senator Kennedy and I share the desire to reform the current fragmented 
system. Senator Kennedy has been a strong advocate for consolidation at 
the State level. His input in strengthening this bill has been most 
constructive. I am appreciative of his efforts and support in seeing 
this legislation fashioned and brought to the floor.
  Past job training legislation has reflected a tradition of bipartisan 
cooperation and support. I hope, as we consider this bill today, we 
will be able to resolve our remaining differences and emerge with 
strong work force development legislation that all of us can support 
and that will be of benefit to all who will be served in the process.
  Mr. President, I yield the floor.
  Mr. KENNEDY addressed the Chair.
  The PRESIDING OFFICER. The Senator from Massachusetts.
  Mr. KENNEDY. Mr. President, later on today, hopefully, we will have 
an opportunity to take action on an area of public policy which is of 
great significance and importance to working families in this country 
and of great significance and importance to the United States as a 
nation and its ability to compete--be a competitive society in our own 
country and also for the United States to be able to compete in the 
world.
  At the outset, I commend the Chair of our Human Resource Committee, 
Senator Kassebaum, for her tireless work in bringing this legislation 
to the U.S. Senate and for her enormously effective manner in reaching 
out to Republicans and Democrats alike in trying to sift through 
various recommendations and ideas and suggestions, to galvanize those 
into an effort which reflects her driving sense that what is necessary 
is that we develop training programs that will be suitable for this 
Nation as we move into the next century, but that also understands 
there is a proliferation of those programs and there has to be a 
consolidation, a direction, a flexibility that is retained at the local 
level in communities, with inputs from the States and local 
communities, from the business and private sector as well as workers in 
those communities.
  This has been a challenging responsibility. I think all of us in the 
Senate marvel at her energy and her prioritizing this important area of 
public policy. To many, probably, in this institution as well as across 
the country, training programs appear to be something that are rather 
mundane, but we recognize that without training, continuing upgrading 
of skills, the inputs of education, the interlocking relationships 
between training programs and the private sector, the impact on 
individuals and families in this country really would be profound.
  So, this is a very important effort. It was a priority of Senator 
Kassebaum since the time she became Chair and a priority of hers long 
before, when she was a driving force in our committee to make better 
sense out of our training and education programs. All of us in the 
Senate are really grateful for her continued leadership in this very, 
very important policy area.
  For the past 3 years, the members of our committee worked together to 
consolidate the outdated, overlapping variety of Federal job training 
and job education programs to create a more effective system providing 
these services and opportunities for youths and adults. The challenge 
facing the Nation on this issue is extremely serious. It is gratifying 
we are able to address it in a genuine spirit of bipartisanship.
  For nearly two decades, the income gap between the rich and the poor 
in the United States has been widening. I will come back to this issue 
in a few moments. A major part of the problem is that the wages of low- 
and middle-income workers have been stagnating or declining throughout 
this period while upper income groups have received much of the benefit 
of a growing economy. That pattern cannot continue without imposing 
unacceptable costs on our Nation and our security. This legislation is 
a key part of our answer to that challenge. It offers a better approach 
to job training and job education that are the heart of our efforts to 
improve the skills of American workers in the modern economy.
  We are very much in agreement on the need to consolidate and 
streamline the current fragmented system of multiple job training 
programs at the local level. Many of our early ideas came in response 
to the bipartisan ``America's Choice, High Skills or Low Wages?'' 
report in 1990, of the Commission on the Skills of the American Work 
Force, led by former Secretaries of Labor, Bill Brock and F. Ray 
Marshall. It was a truly bipartisan effort where we had the former 
Secretary of Labor under President Carter and the former Secretary of 
Labor, Bill Brock, who had been a Republican Senator from Tennessee. 
The members of their committee, which was reflective of business and 
labor, made a series of recommendations which I will come back to in 
just a few moments.
  One of the major problems highlighted in the report was that the 
United States is not well organized to provide the highly skilled 
workers needed to support the emerging high performance work 
organizations. Public policy for worker training has been largely 
passive. This legislation is, in large measure, a long overdue response 
to that report. It addresses the maze of training and education 
programs, created over many years, for youths and adults seeking the 
skills and training needed for successful careers.
  The job training portions of the Workforce Development Act are a 
major improvement over current law. They provide the information 
necessary to tell us, for the first time, whether job training programs 
are successful in improving the employment skills and earning power of 
American workers, and they provide needed incentives and sanctions to 
help us reach our goals.
  One of the dilemmas we find ourselves in at the present time is, with 
the proliferation of various training programs, in many instances, too 
many instances, the individual being trained is uncertain of the skills 
that he or she is actually obtaining; at the time of the employment, 
the employer is unsure of those particular skills; and the taxpayers 
are unsure how their tax dollars are actually being invested and how 
valuable that investment really is. That is too often the current 
situation.
  This is an attempt to make sure, No. 1, individuals who are involved 
in training programs are going to receive the good training and the 
skills necessary to compete in the economy; No. 2, that the employer is 
going to know the skills that individual actually has; and, No. 3, the 
taxpayer is going to know the investment in that individual and in that 
program is going to mean a stronger economy for us in the future that 
is going to benefit all of the American community. It is that desire to 
achieve, with variety, in a flexible way, those goals that is the 
underlying factor in terms of the support for this legislation.
  The bill also lays the foundation for accomplishing two of the 
highest priorities of a bipartisan majority of the last Congress: 
effective school-to-work programs for non-college-bound youths, and the 
one-stop career centers for adults. 

[[Page S 14831]]

  When we recognize that three out of four young people who graduate 
from high school are not going on to higher education but are going on 
into the job market, and when we take a look at what is happening in 
the job market for those individuals who just graduate from high 
school, the difficulty they have in getting an early entry job that 
provides any meaningful opportunity of acquiring skills necessary to 
move forward in the economy, we understand the challenge before the 
country, particularly the limited opportunities for many of these young 
people. It has been as a result, again, of the bipartisan efforts in 
the school-to-work programs that we have found advantage in addressing 
this issue. There have been a number of States that have been moving, 
with the encouragement of the school-to-work program, aggressively in 
this area with very, very strong support.
  I can think of examples, both of Governor Thompson, a Republican, and 
his strong support for those concepts in the State of Wisconsin; also 
the former Governor of the State of Maine, who had been very active in 
the development of those programs.
  This legislation would consolidate funds from a variety of programs 
and provide funds to States in the form of block grants. Major programs 
to be consolidated include the Job Training Partnership Act, the JTPA, 
Carl Perkins Vocational and Applied Technology Act, and the Adult 
Vocation Act. In addition, nearly 90 other job training and job 
education programs are included in this consolidation effort.
  Mr. President, this effort that we have here today follows the 
attempt by Congress to be more effective in terms of the training 
programs. I think all of us understand the complexity and the 
difficulty that we have in doing a good job in terms of encouraging the 
acquisition of high grade skills in the individual and in the labor 
market area.
  This represents, I think, the fourth great effort that this country 
has been involved in various training programs. We had the manpower 
demonstration administration years ago where we went through the CETA 
programs. They were discarded in the early 1980's with the leadership 
and the bipartisan effort that was made under the Senator from Indiana, 
Dan Quayle, in the development of the JTPA, which was an attempt to try 
to bring leaders within the local communities into the development of 
what was called the PIC organizations so that we would address and 
develop the skills that were necessary within the local community using 
leaders, business, community leaders, workers as well in those 
particular areas.
  There have been a number of different communities where that 
particular formula worked extraordinarily well. One of them is my own 
city of Boston where they developed within the private sector what was 
called effectively the technology prep schools which involved the 
financial institutions in the high schools and a number of the health 
professions in high schools. The development of the public and private 
partnership had a very significant success in a number of our 
communities. But still, there were too many areas where there were gaps 
and failings. It is with the review of both the advantages and the 
disadvantages of that program that Senator Kassebaum has developed the 
Workforce Development Act to take advantage of the lessons that were 
developed through that JTPA in the early 1980's and also the 
recommendations that have been made upon review of that program and how 
that program actually could be strengthened.
  With the funds available under the block grants, the bill requires 
each State to spend at least 25 percent of the totals on work force 
education and another 25 percent on work force employment activities. 
The remaining 50 percent will be placed in a flex account by which the 
State will be free to assign to another educator the employment 
activities. There is always the balance between giving the maximum 
flexibility into a community that can do an extremely effective job.
  I am very proud of the initiatives which have been developed in my 
own State of Massachusetts that really developed under Governor Dukakis 
and have been continued under Governor Weld. In particular, Lieutenant 
Governor Cellucci has really done an extraordinary job with maximum 
flexibility.
  So we want the maximum flexibility to permit these effective programs 
to grow, and then we also do not want to be into a situation where we 
are just effectively providing funding that will not be used 
effectively for those purposes of training and enhancing education. It 
is balanced.
  Senator Kassebaum has fought and led our committee with great insight 
to make sure that the degrees of flexibility are going to be preserved 
at the local level to the maximum extent possible. This is something 
which I think is ensured in this legislation.
  The dramatic and fundamental change proposed in the legislation will 
take place under a 3-year State work force development plan. Within 
this plan the State will include a strategic analysis which will 
describe the allocation choices for the funds in the flex account. The 
plan will also include the activities the State will undertake within 
the work force education and employment functions in order to meet the 
established benchmarks and goals. This bill mandates that each State's 
plan must include the establishment of a comprehensive one-stop 
delivery system which will provide the required course services, labor 
market information, and job placement activities. The corps services 
will include skill assessment, job search, placement assistance, 
employment screening referral and local labor market information--that 
sort of one-stop area so that individuals will be able to come into 
this one-stop area where there will be the assessment of that 
individual's skills where the job market is, which training programs 
have been effective, and being able to use the latest in terms of 
information services so individuals will be able to know which training 
programs result in individuals actually gaining employment, what their 
wages will be, reviewing of what the effectiveness of that program will 
be in 2 years or 3 years down the road so people will say, ``Well, when 
we go into this program, we know that we have the best opportunity 
developing the kind of skills and that we will have employment not just 
for 6 months, but for 2, 3 years, and our opportunities to make 
advancement will be considerable.''
  That kind of consolidation with one-stop shopping is virtually 
nonexistent in some communities where there has been development of 
those programs. The opportunities now with the new kinds of information 
sharing, computers, and research offers up extraordinary possibilities 
in terms of enhanced training in the evaluation of these programs.
  I underscore what the Senator has said; that is, this very careful 
evaluation of the various programs that are being developed so that we 
will have the best information about knowing which programs are working 
and which ones are weaker.
  Another hallmark of the legislation is the extent of flexibility 
provided to the States. In those States committed to developing the 
postdelivery system, the benefits will be substantial to those with 
significant information and assistance. As an example, the work force 
employment activities are accompanied by an extensive list of 
permissive services which may be offered to recipients, including the 
on-the-job training skill and greater entrepreneurial training.
  As we know now as compared to where we were 20 or 30 years ago, even 
in the early part of the 1960's, for someone who worked in the Quincy 
shipyard on the south shore of Massachusetts--their father probably 
worked there and their grandfather worked there, and they worked 
there--they were able to make a very good living. What we have now in 
the development of the labor market is a recognition that an individual 
will probably have seven different jobs over the course of their 
lifetime. And those jobs, in many instances, will necessitate different 
kinds of skills.
  We are dealing with an entirely different kind of labor market 
situation. This is an attempt to really move us from the past in terms 
of the types of skills into the modern age and doing it in a variety of 
different ways that have been outlined by Senator Kassebaum.
  There will be amendments that will be offered by our colleagues. I 
will refer to those in just a moment or two. 

[[Page S 14832]]

  With respect to the job education, the funds come primarily from 
vocational education and adult education. The legislation requires a 
variety of corps activities to be funded with a 25-percent share of the 
block grant and the flex account allocated to education. These corps 
activities include vocational education, technology prep, secondary and 
postsecondary linkages, literacy and basic education services for adult 
and out-of-school youth, and the integrated academic curriculums.
  As Senator Kassebaum also pointed out, this bill authorizes $2.1 
billion for education and training activities for at-risk youth. These 
funds will help to fund the Job Corps activities.
  I will also come back to that issue in the course of the debate, and 
there will be an amendment offered to change the Job Corps rather 
significantly doing effective kinds of evaluation but basically to 
preserve the basic and fundamental structure on that program. We will 
have an opportunity to debate that later in the course of the day.
  We have also included a mandatory requirement for the summer youth 
programs be funded from these resources. The summer youth program is 
enormously important. Also included in the summer youth programs will 
be the educational components which have been found to be so important 
and have made a real difference in the significance of the summer youth 
programs and also tying those to various employment opportunities.
  We have seen, for example, in Boston how the public and the private 
sectors have moved very effectively together, and how there has been a 
real effective utilization of summer youth and moving young individuals 
actually into the private sector employment as a result of either 1 or 
2 years participation in summer youth programs.
  So that the way this is organized I think really emphasizes the most 
effective types of summer youth programs.
  As Senator Kassebaum pointed out, Senator DeWine was particularly 
involved in the shaping of those programs.
  We have also made substantial progress in a variety of other issues 
such as retaining the employment service, placing a cap on the economic 
development expenditures, and protection for employees who participate 
in the training programs.
  Also we are pleased to be able to remove the Workforce Development 
Act from the welfare reform bill recently passed by the Senate. This 
act is eminently deserving of independent consideration by Congress.
  The series of amendments that we will offer today represent the road 
we still must travel to finish the job. I believe one of the most 
important amendments is to honor our commitment to the dislocated 
workers by retaining the trade adjustment assistance programs. Only a 
year ago, or 2 years ago, Senators in both parties gave strong support 
to NAFTA and GATT. They decided that the trade adjustment assistance is 
the answer to the crisis of workers dislocated by expanding world 
trade. Those promises to working men and women will be broken by the 
pending bill.
  In addition, the bill lacks a clear commitment to other dislocated 
workers. What are we to say to the factory worker whose plant is closed 
and is moved to Mexico, or to the coal miners who have lost their jobs, 
or to the timber workers who received their pink slips, or to the bank 
employees who are lost in the latest megamerger? What are we to say to 
the people who need training, or education, or job placement services? 
Unless this legislation is amended, we will be destroying the hopes and 
dreams of tens of thousands of workers. We have a special 
responsibility.
  The trade adjustment concept goes back a number of years to actually 
the early 1960's. But we have renewed as a key part of the commitment 
of this body--and Presidents alike--a commitment for trade adjustments 
for those individuals who fall into the categories and lose their 
employment as a result of NAFTA and the GATT. I believe that commitment 
should be retained.
  I know we will have more of an opportunity to get into that 
discussion later on in the day.
  There will also be an amendment offered to preserve the Federal role 
in the Job Corps Program and to ensure the program remains strong and 
effective enough to continue its excellent service to our Nation's 
youth. Republicans in the House increased the funding for the program. 
They called it one of the few Federal programs that is successful and 
effective. Instead of addressing legitimate concerns of the current 
program, the Senate, I believe, goes in an unwise path on this issue. 
Our Members will make the changes necessary to reform and strengthen 
this program.
  The test of the legislation will be how well it prepares the Nation's 
work force for the changing economy in the years ahead. American 
workers are the backbone of the economy. If we invest wisely in them, 
the country will prosper. If we fail to do so, the current problems 
will fester, and the economy and the Nation will suffer.
  In closing, I want to recognize a member of my staff whose ability 
and commitment was indispensable in the preparation of this landmark 
legislation. Steve Spinner, who served on my staff for the past 2 
years, helped guide us at every step even as the cancer which finally 
took his life was ravishing his body. In a sense, this legislation is 
his monument. To his wife and daughter we extend our heartfelt thoughts 
and prayers as we carry on his work.
  Mr. President, I want to just mention a number of our colleagues who 
are not on the committee who have been very much committed to the 
shaping of this legislation. First of all, on the committee, Senator 
Dodd, for emphasizing the importance of the programs that are related 
to national activities, recognizing that there are particular 
challenges that can affect either particular States or regions as the 
result of the downsizing of Federal contracting. We have seen that 
issue here in a number of different communities or with particular 
disasters--the floods in the Midwest, earthquakes, fires in the far 
West which in many of these instances pass through various 
jurisdictions and there has been a national impact.
  Decisions are being made in the national interest which adversely 
affect individuals and their families in a very significant way.
  No. 1, they lose their job, and with little opportunity, perhaps if 
they are older, to acquire skills. And we want to make a special effort 
to ensure that their concerns will be recognized.
  That program in the past has been utilized effectively, and I am 
enormously grateful to Senator Kassebaum and our colleagues on the 
committee for understanding the importance of this program. She has 
been unwilling to accept as broad a program as many of us would like 
but I do think has been willing to accept the essential aspect of the 
program, and we are very grateful for the cooperation we received in 
that area.
  And No. 2, in another very important area which will be talked about 
by our friend and colleague, the Senator from Louisiana, Senator 
Breaux, with the development of the vouchers for dislocated workers so 
that you can maximize flexibility by the individual in their ability to 
seek out good training programs and give them a greater opportunity and 
freedom to make judgments in terms of their own future. This is 
something that has been considered by the committee. I think the way it 
has been shaped will give us a good opportunity for a very solid 
program that can be evaluated carefully and may very well offer great 
opportunity in the future for expansion of training.
  Again, I am grateful to the Senator for her willingness to accept the 
concept of the approach. It is not all of what was initially offered 
but is certainly something that was, I think, a very commendable idea, 
accepted in the House. And I commend Senator Breaux and Senator 
Daschle, who have been our principal advocates of this, not just on 
this legislation but in previous efforts as well.
  Later, we will have focus on the trade adjustment by Senator Moynihan 
and Senator Roth with an amendment. We will have an amendment on the 
Job Corps by Senator Specter and Senator Simon, and we will also have 
an adult education earmark by Senator Jeffords and Senator Pell. And I 
understand there are a few other amendments as well.
  Given the magnitude of this legislation, I think it is a real 
tribute, again, to the chair for the fact that we do have some areas we 
will have to have 

[[Page S 14833]]
votes on in the Senate, but given the magnitude of this issue and the 
consolidation of all of these programs and working them through is 
really a great tribute to her leadership.
  I will just say finally, because I see other colleagues who are 
prepared to address the Senate, what this legislation for this Senator 
is really about is to try to make sure, as we are moving in the latter 
part of this century and into the next century, we are going to see 
progress made for all Americans and American families in as great a 
lockstep as possible.
  From 1950 to 1978, what we saw was that the country was really 
effectively growing together; with the progress that was being made 
during that period of time it was effectively shared by all the members 
of our society and the greatest amount went to those on the lower 
levels but everyone in the middle and the quintile, the top 20 percent, 
were also participating in the expansion and the robust nature of our 
economy.
  What we are seeing now from 1980 effectively to 1993 is that those 
are the upper sectors which are benefiting to the greatest degree; 
those in the middle and in the middle lower are the ones that are 
continuing to fall behind. We have no magic wand to be able to bring 
all of these groups here into the general prosperity area. It is going 
to take a combination of different efforts on our part.
  But one of the very important efforts will be to try to make sure 
that individuals who are in these areas are going to have both 
education and skill to the extent that we can provide those. Obviously, 
a key aspect of the education is done at the local level and at the 
State level. In higher education, obviously, we have an important 
responsibility. We have also responsibility in other areas as well.
  But in the training programs, that is an area where we can try to 
ensure that there will be expanded skills for American workers. We can 
try to make sure, and build successful programs that will ensure, that 
American workers, as they move into the next century, are going to be 
at the cutting edge of all new skills.
  We know our competitors are doing that. If you read the America's 
Choice Report, which I would suggest to anyone that really wants to 
have a good insight into where we are or where we have been and also 
where our competition is going, you will find out that most of the 
other industrial nations of the world are moving very aggressively in 
upgrading their skills in a continuing process. They are doing it with 
training programs, specific training programs. And they are doing 
training programs on the job and encouraging the businesses in those 
countries to participate. And those businesses in those countries do 
participate.
  That is not the typical example here in the United States. It is only 
about 6 or 8 percent of total corporations that actually move with 
aggressive kinds of training programs. And most of those training 
programs are more to the white-collar workers rather than to the blue-
collar workers.
  We are trying to demonstrate by example that we have maximum 
assurance that there will be different opportunities for the 
acquisition of skills and education for the working families in this 
country which will effectively enhance their opportunity to improve 
their own economic vitality and the vital strength of our national 
economy.
  Mr. President, I see others here who want to address the Senate. I am 
grateful again for the cooperation that was given by all members of the 
committee, as Senator Kassebaum has mentioned. We are very grateful for 
the participation of Democratic Senators as well as our Republican 
colleagues.
  We look forward to addressing these issues during the course of the 
day. We know many of our colleagues have just come back. This is 
legislation which has been announced. We have been available to talk 
with our colleagues in the Senate. We are prepared to debate these 
issues and to get a judgment made on these matters so that we can move 
this very important legislation forward.
  Mr. President, I yield the floor.
  The PRESIDING OFFICER (Mr. Frist). Who yields time?
  Mr. KENNEDY. Mr. President, how much time is there?
  The PRESIDING OFFICER. The Senator from Kansas has 4 hours 15 
minutes, the Senator from Massachusetts 3 hours 30 minutes.
  Mr. KENNEDY. How much time does the Senator want?
  Mr. KERREY. Fifteen minutes.
  Mr. KENNEDY. Fine.
  The PRESIDING OFFICER. The Senator from Nebraska.
  Mr. KERREY. I rise today as an original cosponsor of S. 143, the 
Workforce Development Act. I should say at the outset I consider this 
to be one of the two or three most important pieces of legislation this 
body will consider this year.
  I want to, at the outset, commend the Senator from Kansas, Senator 
Kassebaum, for her hard work and willingness to reach out and include 
anyone who has an interest in work force development. I appreciate very 
much her openness, her diligence, her pursuit of the objectives. As a 
consequence of all those things, I believe it is likely this 
legislation will pass.
  Indeed, I believe that it is one of the, as I said, two or three most 
important measures which will produce something good at the local 
level. Whether or not people at the local level will actually see some 
benefit, with this piece of legislation, Mr. President, I believe 
strongly that they will.
  I also want to commend the distinguished Senator from Massachusetts 
somewhat carefully here. I introduced him not long ago, and the 
audience began to laugh as I did. So I have to be careful. I praise the 
Senator from Massachusetts. It was his request for a study 5 years 
ago--I believe it was from the GAO--that has provided the foundation 
for this bill, the foundation being that we have well over 100 
different job training programs at the Federal level and the lack of 
coordination and the lack of accountability makes it difficult for us 
to be able to say in our States that we are doing all we can to solve 
the problem of inadequate skills in the work force.
  So, Mr. President, as to whether or not this particular legislation 
will solve a problem, will there be an effect from the cause of our 
passing this law, of changing this law that is beneficial in the United 
States, the answer has to be, in my judgment, enthusiastically and 
overwhelmingly yes.
  Last week, during our recess, there was a great deal of attention 
given to a census in the Department of Labor evaluation of the U.S. 
economy that indicated that, as a consequence of the economic growth 
that has occurred in the past few years, there is less poverty in 
America. That is quite good news. And it is an important piece of 
information for those of us who still believe it is one of our most 
important moral challenges to try to help those Americans who live in 
poverty and that we need to have economic growth in order to accomplish 
that.
  That economic growth will help those who are poor, and is an awfully 
important and good piece of news for us. But contained in that report 
as well, Mr. President, was an indication that there is not only an 
increased concentration of wealth and power, but there is a 
continuation of a trend toward a widening of incomes between those at 
the top end of the economic spectrum and those at the bottom end.
  This piece of legislation addresses one of the most important reasons 
why, when we see economic growth, we do not see an increase in 
prosperity in the middle class; we do not see a growing middle class. 
And the reason, Mr. President, is that the marketplace for today 
requires substantially more skills than it has in the past. It places a 
premium on it. Those with skills are secure. Their wages and salaries 
are being bid up, and those without skills are seeing their wages not 
being bid up. They are struggling out there.
  In addition, Mr. President, the way we have organized our job 
training programs is inadequate. Not only is there lack of 
accountability, but there are eligibility requirements that make it 
difficult for people to get into programs and difficult for Governors 
and business people to engage in the task of working with our schools. 
There are all sorts of institutional and structural barriers that exist 
at the local level that this piece of legislation addresses.
  So I say to those who, when they go home on recess and are faced with 
questions from citizens, ``What are you doing that is constructive? Are 
you passing or changing any laws that will 

[[Page S 14834]]
improve the quality of life in our community?'' this is a piece of 
legislation that you can point to and say, ``Yes. This will help.'' If 
you change the law with S. 143, there is no doubt in my mind 10 years 
from now, as we examine the data as it relates to our economy, we will 
see people with greater skills and greater income as a consequence of 
this legislation.
  Importantly, I say parenthetically to my colleagues, there is another 
piece of legislation that would also enable us to say yes to people at 
the local level if they ask us if a law was going to benefit them. 
Interestingly, this one was also sponsored by Senator Kassebaum and 
Senator Kennedy. It is S. 1028. I hope that this body will take it up 
this year. It is the Health Insurance Reform Act of 1995.
  Last year during the debate over health care there was almost 
unanimous agreement, almost unanimous from Republicans and Democrats, 
that the least we could do would be to change the law to end the 
practice of discriminating against people because of preexisting 
conditions and saying to them that they are not able to port their 
insurance from one job to another.
  The GAO has evaluated this piece of legislation. Twenty-five million 
Americans would benefit. Again, one of the most impressive tests of 
this piece of legislation, if S. 143, the Work Force Development Act, 
passes, is it presents me with an opportunity to say to citizens in 
Nebraska, ``Here is a change in the law that will benefit us at the 
local level.''
  So I praise, at the beginning, the distinguished Senator from Kansas 
and the distinguished Senator from Massachusetts for their work on this 
legislation and their work, as well, on S. 1028. I hope that both 
pieces of legislation will become law in this session.
  Mr. President, we recently considered welfare reform legislation on 
the floor of the Senate. I voted against that legislation because I 
believe, in fact, it will make things worse, not better. There were 
many differences of opinion on how to best accomplish the goal of 
revising a welfare system that has unquestionably grown unresponsive to 
those on welfare, as well as those who are trying to make welfare work.
  But the one point of agreement throughout the welfare debate was the 
need for work, for meaningful employment in the private sector, to take 
the place of welfare benefits. I believe this bill, the Workforce 
Development Act of 1995, will do more to free dependence upon public 
assistance than any other legislation we have considered this year.
  Job training and education are the foundations of meaningful 
employment, and meaningful employment is the foundation of a strong 
economy. A productive, employed work force translates into less 
reliance on welfare and, more importantly, leads to a strong self-
reliant and globally competitive work force. This all translates into 
economic security for each American in the work force and for our 
Nation as a whole.
  If we are to have a well-prepared work force with the training and 
ability to enter the 21st century, it is essential that we act now, and 
it is essential that we pass this legislation. We need to continue to 
work to create high-paying jobs in this country with site-specific 
training. We must meet the needs of both the employee and the employer 
in the community in which they work and operate.
  Taxpayers spend $25 billion a year for job training. It is a price we 
pay for a duplicative system which is not measured and not terribly 
accountable. We have paid a price in frustration, as those involved in 
job training on the local and State levels can readily attest, and we 
have paid the price in underemployment and unemployment, as we have not 
focused our dollars on the needs of local communities with their 
specific needs and industries in mind.
  The current system of 90 separate job training programs, each 
clamoring to achieve the same goal, leaves those looking for training 
to hop from one location or program to another. In addition to being 
duplicative, these 90 programs are run from Washington, DC, rather than 
from the communities that understand what skills and training are both 
needed and effective at the local level.
  There are times when I believe it is constructive for the Federal 
Government to shift the responsibility and the power back to the local 
and the State level, and job training is a clear example. Those of us 
who have been Governors, both Republicans and Democrats, will say, I 
believe, that it is the States that have the best programs for 
developing jobs and for developing the training programs for those 
jobs.
  There are other incidents where I do not believe that is the case. I 
believe that the Federal Government ought to be responsible for 
figuring out how to make health insurance affordable for all Americans. 
It pleases me today that we have strong bipartisan support for 
Medicare. That was not always the case. There was a time when 
Republicans were critical of Medicare. This year, they are not only 
supportive of that Great Society program, but they want to preserve it 
for our children and grandchildren. The fundamental principle upon 
which Medicare rests is that some Americans, regardless of how hard 
they work and how hard they try, are not going to be able to purchase 
health insurance. That, it seems to me, should be a Federal program.
  I believe it would be a big mistake for this Congress to pass a law 
that would convert Medicare into a block grant program, but it is a 
great move forward for this Congress to change the law of block 
granting the responsibility of job training programs.
  The Workforce Development Act has as its goal the meaningful 
employment of every American capable of working. It takes two very 
important steps toward accomplishing the goal.
  First, the Workforce Development Act consolidates 90 job training 
programs into a single block grant to States. It does not just block 
grant to the States, it develops a coordinated work force development 
system. Our current job training system is not just duplicative, it is 
also confusing. Consolidation in the specific language of this bill 
does not just consolidate, it develops a system at the State and local 
level that will transform our job training system into a unified system 
of job training and training-related education.
  This bill will end the frustrating process of hopping from one 
location to another in search of employment services by providing for 
the establishment of a one-stop delivery system for job search, 
screening, referral and placement, as well as skill assessments.
  The one-stop centers contained in this legislation are unquestionably 
the foundation for the effort, but there is considerably a lot more 
that is done in this legislation that gives me confidence we are not 
just block granting and turning over to the States the responsibility; 
we are making sure that the taxpayers are getting their money's worth 
for this effort.
  Mr. President, this legislation does not just block grant to the 
States, it empowers people at the local level and it empowers people in 
the private sector. It unquestionably will change the environment for 
job training in America and give citizens who care about job training 
an opportunity of participating and designing programs at the local 
level.
  Second, the responsibility for directing and operating these training 
programs is turned over to the State governments. This legislation 
encourages communities to work together to craft effective job-training 
programs. It requires the participation of those who have a stake in 
having a skilled labor force and who understand the needs of local 
labor markets.
  It provides flexibility to the States and local communities for the 
design and implementation of job training efforts. But, Mr. President, 
equally important to me, this legislation has monetary sanctions and, 
for the first time, establishes benchmarks and makes our job training 
programs accountable. States are not just given flexibility. In 
exchange for significant and desirable flexibility, they are also, for 
the first time, going to be held accountable for performance. They must 
develop a plan, and that plan is not only presented to the Federal 
Government but, more importantly, that plan is presented to the people 
in each of the individual States.
  This legislation provides for the continuance of our most successful 
vocational and job training efforts with less 

[[Page S 14835]]
interference from the Federal Government. For example, the block grant 
is divided three ways: 25 percent of the grant must be allocated to 
education; 25 percent is allocated to training; and 50 percent is 
allocated in a flex fund account, funds which a State can use for any 
employment or education activity the State deems important and relevant 
to its specific needs.
  This legislation, in shifting of power and responsibility to the 
State and local level, puts heavy emphasis and focus upon education. It 
stipulates that a portion of the flex accounts should be used for 
school-to-work activities and that States, such as my State of 
Nebraska, that received implementation grants under the School-to-Work 
Opportunities Act, use a portion of their flex funds to continue their 
school-to-work programs under the terms of that act. This provides for 
the furtherance of exciting and innovative programs, such as school to 
work.
  The Workforce Development Act provides for a strong foundation for 
applied learning by allowing States to link academic knowledge to real 
world applications in their own communities, and by forging a 
comprehensive sensible system of job training and education, this bill 
enhances both the ability and opportunity for lifelong learning.
  But just as importantly, inside this flexibility, again, not only are 
the State and local governments engaged, but this piece of legislation 
empowers and gives an opportunity to the private sector, particularly 
private-sector employers, and most especially small businesses, to 
participate in designing the programs.
  This change in the law will, in fact, empower Americans in a fashion 
that will enable them to engage in what, in my judgment, is one of the 
most difficult problems and most tormenting problems that we face, 
which is, as I said earlier, this widening gap between the economic 
haves and the economic have-nots, the threat to the middle class of 
America, and the insecurity that Americans feel at almost all economic 
levels in the work force today.
  Mr. President, I urge my colleagues to support this bill. We are in 
the midst of, as all of us know, reform in many areas, including 
education and labor. Business leaders are constantly admonishing 
educators to make learning more relevant to the real world. I believe 
this bill is a giant step forward in that direction. By providing the 
means and the flexibility by which States and local communities can 
address their specific job training and education needs and by 
encouraging educators, industry, labor, and community leaders to forge 
the alliances necessary to make this happen, we can make the attainment 
of these skills and knowledge more relevant to the real world in which 
we live, work, and learn.
  Again, I praise and applaud and thank both the distinguished Senator 
from Kansas and the distinguished Senator from Massachusetts. They have 
worked long and hard on this legislation. I am pleased to be able to 
come to the floor today and join them in cosponsoring it, and I urge 
its quick and speedy adoption.
  I yield the floor.
  Mrs. KASSEBAUM addressed the Chair.
  The PRESIDING OFFICER. The Senator from Kansas.
  Mrs. KASSEBAUM. Mr. President, my apologies. I was so anxious to jump 
in and express appreciation to the Senator from Nebraska, I did so 
before he finished speaking.
  Senator Kerrey had been a stalwart supporter in the last Congress for 
major job training reform and has provided the initiative for much of 
this effort. I value his support and his advice and his belief that 
this is a very important piece of legislation.
  As Senator Kennedy said, it is probably something that not a lot of 
people have thought about. It will not cause people to be sitting on 
the edge of their seats. But in many ways it could be the crux of a 
major change that could be of great value to a number of people. For 
that reason, I really very much support and appreciate Senator Kerrey's 
efforts in the early days to continue lending support in efforts to 
reform the system.
  I yield the floor.
  Mr. KENNEDY. Mr. President, briefly, I want to also join in thanking 
Senator Kerrey. As a former Governor, he has seen these programs in the 
State and has awareness about their effectiveness, and he has taken a 
very special interest in the issues of education and training. We are 
grateful for his suggestions and involvement in shaping the 
legislation.
  I yield such time as the Senator from Louisiana may need.
  The PRESIDING OFFICER. The Senator from Louisiana is recognized.
  Mr. BREAUX. Mr. President, I thank the Senator from Massachusetts. 
Let me start off by commending both the senior Senator from 
Massachusetts, Senator Kennedy, and Senator Kassebaum from Kansas for 
the work they have put into this effort. It really has been an 
outstanding effort. It has been a pleasure to work with them 
personally, and with their staffs, in order to bring to the Senate 
today legislation which I think is really incredibly significant. It 
may not be, perhaps, as interesting or a hot-button issue like some of 
the issues Congress is now dealing with in terms of tax cuts and what 
we are doing with Medicare and what we are doing with welfare reform 
and what we are doing to the Medicaid Program. Those programs are 
getting a lot of attention in all of the media, and all of the interest 
groups around the country are taking strong positions in favor or in 
opposition to what we are doing. There is a great deal of national 
debate.
  I suggest that what we are doing here this morning in the Senate is 
equally, if not more important than some of those other great debates 
going on with regard to Medicare, Medicaid, welfare reform, and the 
like, because I think that this legislation really speaks to the future 
of America. Are we going to be a competitive Nation with skilled 
workers who are able to compete in the work force and compete 
internationally and not just in our own back yards?
  What we are doing today is saying to the American worker, yes, you 
are important and, yes, we as a Government can do better than we have 
in the past by giving you the training and education that you need in 
order to make a difference, in order to get a job in the competitive 
world that we live in, in order to be able to earn a living to support 
your family, because that is what this legislation is all about. It is 
about creating a system under which Americans will be better citizens, 
better individuals, better able to compete with the competition today, 
which is universal throughout this globe. It is not just competition 
within our own borders; it is universal competition throughout the 
world.
  I am not sure how many people would know if you asked them, does the 
Government do anything for training? A lot of people do not know. We 
have about 90 different training programs on which we spend probably $7 
billion. We try to have a program for every possible need. I think as a 
result of these good efforts that we have had over the years, in 
creating these programs, we have something that is sort of a mishmash 
of a whole bunch of different programs. People out there in the real 
world do not know where to go. Can you imagine a worker who has just 
lost his job trying to figure out which program he fits under? He goes 
to some organization and says, ``I need help, I lost my job, the 
company has gone out of business because of foreign competition, and I 
need to be trained.'' Somebody dumps in his lap 90 different programs 
and descriptions about what they do. He has to try and figure out which 
one he fits under.
  That is the way it works now--rather, that is the way it does not 
work now. If I had 90 different programs dumped in my lap after I lost 
my job, I would probably run as fast as I could away from all that 
material, because I am looking for help, not for some intelligence quiz 
on which program basically fits my needs.
  So what I think is so important about this legislation is it takes 
all of those 90 different Federal programs and consolidates them. The 
programs I am talking about are the JTPA Program, job training for 
people who were laid off from their jobs and poor adults and students; 
TAA, which was a training and cash benefit program for workers laid off 
because of trade problems; NAFTA transitional adjustment assistance; 
Job Corps programs; Carl Perkins vocational education programs; adult 
education programs; school-to-work 

[[Page S 14836]]
programs; programs that we have created for responding to natural 
disasters or base closings, where we try to train the people.
  In other words, we have about 90 different programs on the Federal 
books. What we are attempting to do with this legislation is to try and 
consolidate them to make them work better, to give a chance to the 
people who benefit from these programs to understand better which one 
best serves their needs. It is organized around a one-stop career 
center, which means that workers who need help will not have to go out 
and get help just to find out where to get help. We are essentially 
saying that we want to let the worker who needs the help know where he 
or she has to go, without having to hire more people to help them 
navigate through a maze of Federal programs.
  There are some people who say that for every problem, the Government 
has to find a solution. I think that is what got us into some of these 
problems in the past, where for every problem we try to create a new 
job training program. Every time there was a disaster, or a base 
closing, or a trade impact that affected workers, we created a program 
to train people. The intentions were wonderful. But I think what we 
have produced was a convoluted group of programs that have now grown to 
over 90 Federal programs. And so some have said, well, we ought to do 
that because that is what Government does, and that is what we as 
Democrats do--create programs. Others say, look, this is no role for 
Government. When somebody loses his job because of unfair trade 
practices, or a natural disaster, or because of downsizing, which is 
that new word corporations use, or if they lose jobs because of 
Government cutting back and closing military bases, well, we have no 
role. The survival of the fittest should govern. If you can find a job, 
good, and maybe if you cannot, too bad. Some people take that attitude 
about what Government should not do to help people.
  I think the real solution is that both of those perspectives are 
incorrect. Certainly, they do not fit the dynamics of the situation in 
the end of the 20th century as we move to the 21st century. Things have 
changed. People who think Government should have a program for every 
problem, I think, are wrong. On the other hand, I think people who 
believe Government has no role at all are also wrong. What we ought to 
be doing is trying to help people solve their own problems. That, I 
think, is the proper role of Government--to help create conditions 
which allow people to make their own decisions and to help them better 
solve their own problems.
  That is what I think this legislation is all about. It helps people 
understand how they can benefit from the consolidation of all these 
training programs and lets them decide which one best fits their needs. 
We all know that the American worker today is far different from the 
American worker in the 1930's and 1940's, where people went to work at 
a plant or factory and stayed there for their whole lifetime. Today, 
the average American changes jobs several times in their own lifetime. 
So they have to be constantly trained and given updated information and 
updated skills about how to compete, because they do not always work in 
the same place all of their lives, which was what we used to do in 
society. So things have changed.
  One of the greatest programs that I think we as a Government ever 
invented was the old GI bill, because it worked and it was simple. 
Government said that people who served their country were going to get 
help after they finished serving by allowing the Government to help pay 
them to go to college to get the training they needed to be able to be 
competitive in American society. One of the good things is that the 
Government did not try and make all of the decisions. The Government, 
under the GI bill, did not say to a person that they had to go to a 
particular college. The Government did not say that you had to take a 
particular course or a particular line of study or to major in anything 
that the Government decided you should major in. The wonderful thing 
about the GI bill is that we trusted individual Americans to make those 
decisions by themselves. We gave them the funds and said, ``Go to 
school.'' An individual could go to the school you would like to go to 
and major in what you think is best for your abilities, your 
intelligence, your interests; you make that decision. And that is why I 
think it worked so well. As a result, today, literally, this country 
has been reshaped by people who have benefited from the GI bill. So, 
what we have today in this legislation, which I strongly support, is it 
gives Americans who lose their jobs or find themselves in less 
beneficial jobs, an opportunity to make some decisions and choices.

  It gives the States that are going to be running this program the 
flexibility to use vouchers, which I happen to think is very, very 
important. I really think we, in allowing the States to use vouchers, 
will improve this program. I think, for States to look at the concepts 
of giving an individual a voucher, giving that person the right to 
decide where to go to use it to get his training or her training, is a 
major step in the right direction.
  First of all, when you allow an individual to decide where to go to 
school it creates competition among private institutions and public 
institutions for that person's interest. I think it is important for 
the individuals to decide where they want to go to school to get their 
training, rather than for us in Washington or in some State capital to 
make that decision for them. When government makes decisions for 
individuals, the decisions are not nearly as good as if the individual 
makes that decision.
  The second advantage, I think, is competition. Because it will say to 
all of these schools that provide training that all of a sudden no one 
is going to dictate they are going to get students. They are going to 
have to get students based on their ability to serve those students. 
That is what competition is all about. Schools that are good will 
survive. Schools that do not meet the needs of the individuals will not 
survive. That is competition and I think competition, in that sense, 
will produce better schools, better able to address the needs of 
individuals who will benefit from these programs.
  I think the third advantage of this concept is we will reduce 
bureaucracy. Because of the system now, that tries to fit people into 
various programs, we have created a huge bureaucracy of people who just 
do that. If we allow the individual to make the decision of what is 
best for him or her, I think we have made a major step in the right 
direction.
  I again compliment the ranking member, the distinguished Senator from 
Massachusetts, and the Chair of the committee, the distinguished 
Senator from Kansas, for the tremendous job they have done. This is 
really landmark legislation. This, for the first time, says we are 
going to try to consolidate all of these programs and make it simpler 
and easier for people to understand which program will benefit their 
particular needs and to give the States more flexibility in how they 
deliver those services, to give them the option to use vouchers as a 
means of saying to the individual: You go out and go to an accredited 
facility. You pick, you choose, you decide what you want to do with the 
rest of your life. The Government is not going to make that decision 
for you.
  Finally, I think we are saying to American workers that we do care 
about your future. We do want you to be more competitive. We know a 
worker in this country will be able to compete--if she or he is well 
trained, well educated--with workers anywhere in the world.
  The theory and theme of this legislation, I think, is yes, there is a 
role for Government. It is to help people equip themselves to solve 
their own problems. It is not for government to solve everybody's 
problems all the time. And certainly not for government to walk away 
and say you are on your own, it is survival of the fittest and we are 
not going to care what you do with your future.
  I think this approach, in consolidating the programs under the 
Workforce Development Act, is a major step in the right direction. I 
commend the Chair and ranking member who will have an amendment to be 
offered later on that has been worked on over the weekend. The staff is 
to be commended for using part of the recess, spending this time doing 
the work they have 

[[Page S 14837]]
done to produce an amendment I think makes a great deal of sense and, 
hopefully, will be supported by everyone.
  This is a good bill. It is landmark legislation. I thank the people 
who have been so involved in it.
  I yield the floor.
  Mr. KENNEDY addressed the Chair.
  The PRESIDING OFFICER. The Senator from Massachusetts.
  Mr. KENNEDY. Mr. President, I thank the Senator from Louisiana. As I 
think all Members know, he has been, over the years, a forceful 
advocate for this concept, developing the voucher system so a displaced 
worker could use a voucher system to search out the most effective 
program for that individual, to maximize individual choice. That has 
been something he has advocated, not just in this program, but on 
others as well, that I have had the opportunity to work on with him.
  He also was a very strong spokesman to make sure we were going to 
preserve the basic integrity of the training programs and they were not 
going to be lost into the welfare system. He was an important leader to 
getting us where we are now, where we are considering these training 
programs in a broader context for working families.
  So, for that leadership, we are very grateful to him and we thank 
him.
  The PRESIDING OFFICER. Who yields time?
  Mrs. KASSEBAUM. Mr. President, I think the Senator from Illinois had 
asked for 5 minutes.
  Mr. SIMON. That is correct. I understand the Presiding Officer may 
wish to speak on this. He was here before I was. I will be pleased to 
yield to him.
  Mrs. KASSEBAUM. I think he will be happy to have the Senator proceed 
for whatever amount of time the Senator wishes to use.
  Mr. SIMON. Mr. President, I thank the Senator from Kansas and thank 
the Chair for his courtesy. I commend the Senator from Kansas, as well 
as the ranking member, Senator Kennedy, for their work in this field.
  I confess, I have mixed feelings about this bill. There are good 
things in it. One-stop shopping makes a great deal of sense. Labor 
market information makes a great deal of sense. My staff, who know more 
about the Adult Vocational Rehabilitation Act than I do, tell me that 
provision is very, very sound. And I like the idea of consolidation of 
programs. We have multiplied too many programs. There is just no 
question about that.
  I have to say, I am less than completely enthusiastic about just 
having block grants to the States. Some years ago we consolidated some 
education programs and one of those was the school library program. 
During the whole Depression, not a single library in this Nation 
closed. But, after we consolidated the school library program into the 
block grants to the States on education, over half of the school 
libraries in the State of California, for example, have closed.
  This idea of simply giving block grants to the States is not one that 
I am wildly enthusiastic about. I do believe we have to give States 
flexibility. If I can use an example the Presiding Officer is very 
familiar with, when we passed the bill--I was in the House then and 
worked on this--when we passed the bill requiring all States to give 
help to young people with disabilities, we did not do that because the 
Federal Government wanted power. We did it because States were not 
doing the job. We had a lot of schools that said if you are deaf, if 
you are blind, if you are in a wheelchair, sorry, we are not going to 
serve you. A majority of the mentally retarded were not being given any 
help in our public schools. So we put into law a Federal mandate. Would 
I be willing to say let us just give this money back to the States, and 
the States will decide whether they are going to help these young 
people or not? No. I am not willing to do it.
  So, when I look at consolidation and I see school-to-work 
opportunities just getting started, and by all reports really doing 
some good--but I do not know what is going to happen in Tennessee or 
Illinois.
  (Mrs. KASSEBAUM assumed the chair.)
  Mr. SIMON. The National Literacy Act--by the most conservative 
estimates, we have 23 million adult Americans who cannot read a 
newspaper or who cannot fill out a job application form. This is a 
massive drag on our economy. We have to make our people more 
productive. Among other things, those adult Americans who have literacy 
deficiencies are not able to help their kids in school.
  So, when I see that we are going to consolidate some of these things, 
I get concerned.
  Then the Job Corps has been--are there problems? You bet. We are 
dealing with marginal young people. Almost 80 percent have dropped out 
of school. To just say to States, ``You go ahead and run Job Corps, if 
you want to,'' I do not think makes sense.
  Senator Specter and I will have an amendment this afternoon to keep 
the Job Corps and to make some improvements in terms of requirements on 
use of drugs or alcohol and some other things that I think are 
important. But 73 percent of the Job Corps alumni--these, again, are 
kids who are marginal--73 percent end up either getting a job or going 
on to college or to a vocational school.
  So I view this legislation, Madam President, with mixed feelings. I 
commend you and the ranking member for all of the work you have done in 
this field. You have been a real legislator, Madam President, not only 
in this field, but with the problems we faced in Africa and in other 
areas.
  I like the idea of consolidation, one-stop shopping, and labor market 
information. I am not an enthusiastic supporter of just saying to the 
States, ``You have this money and you make all the decisions.'' I want 
to give some flexibility to the States, but I also want to make sure 
people get served who need to be served.
  Madam President, I yield the floor. I see we are going to get some 
words of wisdom from my colleague from Tennessee.
  The PRESIDING OFFICER (Mr. Inhofe). The Senator from Tennessee.
  Mr. FRIST. Mr. President, I rise in support of S. 143, the Workforce 
Development Act. It is truly forward-thinking legislation. It is 
responsible legislation. It makes it easier for States to educate and 
train tomorrow's work force. And it is legislation that takes a 
balanced approach to accountability.
  Mr. President, every day we are faced with choices--even the choice 
not to change business as usual. I wish to commend my colleague, the 
chairman of the Labor and Human Resources Committee, for tackling this 
unwieldy area of Federal policy--job training and employment 
assistance--and shaping it into a coherent and cohesive proposal.
  Without her leadership and tenacity on this matter, the workers of 
America and their employers, the future of workers of America and their 
potential employers, and the young people of America and their 
aspirations would be held off or put off by the current unfocused, 
untenable, and unjustifiable approach to job training.
  Mr. President, through her legislation, the distinguished Senator 
from Kansas has given States flexibility built on common sense and 
based on State-defined benchmarks. It includes the availability of 
financial incentives for focussing on a critical bottom line--helping 
people prepare for and acquire jobs.
  Through her legislation, the Senator from Kansas gives individuals 
looking for training or jobs access to information and assistance that 
will lead to personal choices founded in facts as well as hopes--
information and assistance that will lead to opportunities which 
recognize ability and confirm potential, and lead to concrete results.
  As Americans move into the 21st century, a more advanced and highly 
technical job market awaits them. Twenty-five years ago, many 
speculated the year 2001 would reveal a truly space age society with 
robots or huge computers performing all of human's work. Those 
predictions will remain fantasy for many years, but one thing cannot be 
denied--the workplace is changing both rapidly and dramatically, as new 
applications for technology are continually discovered.
  This increasing use of technology--from FAX machines and lap-top 
computers to high resolution video teleconferencing--has placed a 
strain on our work force, which has not always been able to keep up.
  It has also created a boom industry, as employers and employees seek 
out 

[[Page S 14838]]
higher education, job training and retraining programs to remain 
employable. As a result, the Federal Government spends more than $20 
billion each year to fund dozens and dozens of job training and work 
force education programs across this country. Tennessee alone spends 
more than $237 million in Federal funds to administer myriad programs 
to prepare and retrain its workers.
  But despite more than 100 programs and billion-dollar budgets, there 
is no real way of knowing how effective this approach actually is--the 
number of programs is unmanageable and too many overlap or duplicate 
services.
  This lack of accountability and the waste of duplicative services 
prompted the Senate Labor and Human Resources Committee, of which I am 
a member, to report out the Work Force Development Act of 1995.
  This legislation creates one system that integrates elements of 
education and training, and gives States the flexibility they need to 
design and implement programs that meets State-identified needs. States 
know the needs of their own job markets better than a large Federal 
bureaucracy, and can tailor their training and education programs to 
fit the needs of their employers and workers. If we pass S. 143, major 
Federal training programs would be consolidated within 2 years into one 
block grant to each State.
  Currently, my own State of Tennessee operates more than 25 different 
job training programs under 9 different departments.
  In Tennessee, the department of labor, the department of employment 
security, the department of human services, the department of 
education, the department of mental health and mental retardation, the 
department of economic and community development, the department of 
youth development, the department of corrections, and the Tennessee 
Board of Regents all operate separate programs to provide job training 
to Tennessee workers.
  Each program and each department has its own separate bureaucracy and 
a separate budget.
  The Workforce Development Act of 1995 eliminates unnecessary 
duplication and allows Tennessee and other States to create within 
their own borders one program that will serve their individual needs 
more efficiently and at less expense. Most of all, however, this 
legislation ensures that the program that will be in place will 
actually help those people who need it.
  As chairman of the Disability Policy Subcommittee, I am especially 
pleased that title II of S. 143 contains amendments to title I of the 
Rehabilitation Act of 1973, amendments that clearly link State 
vocational rehabilitation programs to the work force development system 
envisioned by my colleague from Kansas.
  Title I of the Rehabilitation Act authorizes the vocational 
rehabilitation program which provides Federal funds for counseling, for 
training and employment services for individuals with disabilities. The 
Federal Government provides 78 percent of the funding for the 
vocational rehabilitation program.
  The vocational rehabilitation program began in 1921 initially to help 
disabled war veterans obtain rehabilitation and employment assistance. 
Today, it is a major source of employment assistance for many 
individuals with disabilities, including individuals with severe 
disabilities. Vocational rehabilitation programs, although operated by 
State vocational rehabilitation services, are located throughout a 
particular State. These programs help about a million individuals with 
disabilities a year, about 20 percent of whom enter the competitive 
labor market within 12 months. The average cost per person aided is 
about $2,500.
  The Tennessee vocational rehabilitation program provides but one 
example of what can happen when the focus of an agency is clear--to get 
people with disabilities jobs. In 1994, this program in my State served 
27,600 individuals with disabilities, of whom 81.2 percent were 
severely disabled. Of the individuals served, 5,300 were successfully 
employed, with 90.2 percent of them working in the competitive labor 
market.
  The annualized income of these 5,300 individuals, once they entered 
the work force, increased from $6.7 million to $54 million. Let me 
repeat. The annualized income of these individuals, once they entered 
the work force, increased from $6.7 million to $54 million, truly an 
amazing return on a modest Federal investment.
  Vocational rehabilitation programs have been one-stop centers for 
employment assistance for individuals with disabilities for many years. 
Making these programs a part of the work force development systems 
which will be authorized by S. 143 is both logical and necessary. By 
including vocational rehabilitation programs as an integral part of the 
larger system, two primary outcomes will be achieved. First, 
individuals with disabilities will be assisted and have access to 
appropriate supports and services so they can take advantage of what is 
available through their communities' one-stop centers. Second, 
vocational rehabilitation professionals will be enabled to provide 
technical assistance and information about disability related matters 
to other personnel, who, when appropriate, will be able to assist 
individuals with disabilities directly.
  If vocational rehabilitation programs, which are currently funded at 
about $2 billion, had been left out of S. 143, I know we would have 
seen retraction from emerging collaboration between vocational 
rehabilitation programs and other job training programs.
  Under the comprehensive one-stop centers system in S. 143, any 
citizen, including one with disability, will have access to core 
services and more, including assessments, coordination, referrals to 
other entities, and labor market information. An individual with severe 
disabilities, who may often require specialized, intensive services, 
may access such services in the same facilities in which core services 
are provided.
  The key is that individuals receive job training and placement 
assistance and appropriate referrals from and to other parts of the 
work force development system, not that every service an individual 
receives be provided in the same location. Throughout the work force 
development system those individuals involved in coordinating and 
arranging services would follow the same procedures and policies when 
interacting with applicants and clients.
  I believe these elements in S. 143 send a clear signal to States 
there will be one system. Vocational rehabilitation services will be a 
part of that system; individuals with disabilities will be served; 
individuals with disabilities will not fall through the cracks; and 
they will not become Ping-Pongs at the mercy of uninformed personnel.
  Simply put, by recognizing the record and potential of the vocational 
rehabilitation program, we have strengthened it and the Workforce 
Development Act as well.
  Given its special place in the world of job training and the range of 
specialized and intensive services it supports, the vocational 
rehabilitation program in title I of the Rehabilitation Act becomes a 
component of the Workforce Development Act through amendment to the 
Rehabilitation Act, not repeal of title I of the Rehabilitation Act. 
Through such legislative surgery, we are able to preserve this separate 
authorization of appropriation for vocational rehabilitation services 
and clear accountability for the use of these funds through State 
vocational rehabilitation agencies.
  Although during deliberations on the Workforce Development Act in 
committee we did have our differences with regard to individuals with 
disabilities, we built and sustained a bipartisan consensus. This 
consensus should serve us well as we conference with the other body.
  In closing, I wish to thank my colleague from Kansas for her 
leadership and her guidance and her patience that got us to this point 
today. Acquiring world-class skills for finding a job is neither 
guaranteed nor easy. It takes effort, information, time, resources, and 
opportunity. The chairman's bill levels the playing field so that those 
who make the effort and have the time can access information, 
resources, and opportunity. Through her legislation, the Senator from 
Kansas gives us a balanced equation. Tomorrow, America's work force 
will be at work better trained and better able to compete against 
global markets. The human value of such outcomes may be hard to measure 
in specific terms, but I am convinced that we will see a renewed 
spirit, unleashed pride, and the smiles 

[[Page S 14839]]
that come with confidence on the faces of America, and that is good.
  I thank the Chair and yield the floor.
  Mrs. KASSEBAUM. Mr. President, I said in my opening statement how 
much I and the ranking member, Senator Kennedy, have valued the efforts 
of the Senator from Tennessee to significantly improve the legislation, 
and I would like to again express appreciation to Senator Frist, who 
worked on the vocational rehabilitation section and strengthened it in 
ways that I believe have added immeasurably to not only the success of 
the legislation but I think also the assurance to those in the 
rehabilitation community that while they want to work to become 
integrated into the work force, they also want to retain a statutory 
authority and a funding stream that gives them some certainty they have 
a voice. And it was the effort of Senator Frist and staffs on both 
sides that worked together to develop this section that I think lends 
great strength to the bill, and I am very appreciative to the Senator.
  Mr. FRIST. I thank the Senator.
  Mr. President, I ask unanimous consent that questions and answers 
regarding vocational rehabilitation programs be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

   The Effect of the Workforce Development Act of 1995 on Vocational 
                        Rehabilitation Programs


                         Questions and Answers

       Q. If the Work Force Development Act of 1995, S. 143, were 
     enacted into law, when would the provisions that affect 
     vocational rehabilitation take effect?
       A. The effective date of the provisions would vary. S. 143 
     would allow States up to 2 years to convert to a single work 
     force development system with one-stop career centers. Some 
     States are already engaged in such approaches to job 
     training, information, and placement assistance. In these 
     States, vocational rehabilitation agencies are involved and 
     play a role in helping individuals with disabilities. S. 143, 
     with the State option of a 2-year phase-in, takes into 
     account the fact that States are at differing stages in 
     investing in a single work force development system. In an 
     effort to promote vocational rehabilitation programs 
     continuing their involvement or beginning early involvement 
     in planning and participation in new systems, provisions in 
     S. 143 would allow a State vocational rehabilitation program 
     to transition to the new work force development system, in a 
     manner and by a time table set by its State (within the 2-
     year limit specified in S. 143).
       Q. Does S. 143 repeal any part of the Rehabilitation Act of 
     1993?
       A. No. It amends title I, the State grant program of the 
     Rehabilitation Act. S. 143 would make a State's vocational 
     rehabilitation program an integral component of a State's 
     work force development system.
       Q. Does S. 143 affect only the State grant program in the 
     Rehabilitation Act?
       A. Yes. It amends no other programs in the Rehabilitation 
     Act.
       Q. If the Work Force Development Act of 1995, S. 143, were 
     enacted into law, how would funding for State vocational 
     rehabilitation programs, currently funded through the 
     Rehabilitation Act, be affected?
       A. The authorization of appropriations and the funding 
     formula in current law would be preserved. The effect would 
     be that designated State vocational rehabilitation agencies 
     would continue to administer and oversee the use of 
     rehabilitation dollars. This would ensure that designated 
     dollars would continue to be spent to provide job training 
     and placement assistance for individuals with disabilities.
       Q. If S. 143 were enacted into law, what services could an 
     individual with a disability expect?
       A. Any individual seeking job training and placement 
     assistance, including an individual with a disability, would 
     have access to core services as well as other services a 
     State may elect to offer. The core services would include: 
     Outreach and orientation to services available through one-
     stop centers, assessment, job search and placement 
     assistance, career counseling where appropriate, screening 
     and referral of qualified applicants to employment or other 
     support services, and accurate and timely information 
     relating to employment opportunities, training, and 
     education.
       Q. Does S. 143 recognize that many individuals with 
     disabilities may have specialized needs that must be 
     addressed in order for these individuals to take advantage of 
     job training and placement opportunities?
       A. Yes. Any individual with a disability would have access 
     to auxiliary aids and services necessary to enable him or her 
     to take advantage of core services. In addition, if a center 
     also offered other services, an individual with a disability, 
     seeking these services, would have access to auxiliary aids 
     and services if needed. If an individual with a disability 
     has specialized needs that must be addressed to enable the 
     individual to take advantage of what is offered within a one-
     stop center system, appropriate assistance would be provided 
     by vocational rehabilitation professionals. If a State 
     vocational rehabilitation agency is operating under an order 
     of selection that limits most services to individuals with 
     the most severe disabilities, then this agency could continue 
     such a policy under S. 143. An individual who has a 
     disability not covered by the order of selection could access 
     services through other one-stop centers personnel. In order 
     for these personnel to assist individuals with disabilities, 
     technical assistance from vocational rehabilitation 
     professionals would be available.
       Q. If S. 143 were enacted into law, would it be primarily a 
     public system with public employees controlling what services 
     an individual with a disability could access?
       A. That decision will be a State decision. Currently, State 
     vocational rehabilitation agencies vary in the extent to 
     which services to individuals with disabilities are provided 
     by public or private entities. In Tennessee today, 75 percent 
     of State vocational rehabilitation dollars are spent on 
     private service providers. S. 143 clearly expects employers' 
     interests and needs to influence the design of a State's work 
     force development system. Moreover, a State will be expected 
     to reach all areas of the State with services. These factors 
     may cause States to expand or redirect how job training and 
     placement assistance are addressed. For example, to be better 
     able to address employers' needs in a timely manner with 
     well-trained workers, a State may expand the use and 
     involvement of private providers and elect to make vouchers 
     available to individuals.
       Q. If S. 143 were enacted into law, how would the 
     preferences and choices of an individual with a disability be 
     affected?
       A. Amendments to the Rehabilitation Act in 1992 
     strengthened an individual's role and choices with regard to 
     vocational rehabilitation services. In addition, in these 
     1992 amendments, the U.S. Department of Education's 
     Rehabilitation Services Administration was directed to 
     develop evaluation standards and performance indicators to 
     judge if individuals with disabilities are being given a 
     meaningful role in the design of their service package and 
     are able to make informed choices about rehabilitation 
     services available. S. 143 does nothing to undermine these 
     1992 amendments to the Rehabilitation Act. In fact, these 
     1992 amendments should continue to buttress and strengthen an 
     individual's ability to access services he or she needs and 
     prefers within one-stop centers.
       Q. If S. 143 were enacted into law, could an individual 
     with a disability have access to vouchers?
       A. Yes, to the extent and under the conditions a State 
     specifies.
       Q. What in S. 143 would increase the likelihood that an 
     individual with a disability would receive services? That is, 
     the individual would not be denied services on the basis of 
     disability, not fall through the cracks, or not be treated 
     like a ping pong ball--referred to one agency after another.
       A. States are expected to set benchmarks and report on 
     individuals assisted through work force development systems. 
     A State must report on is the number of individuals with 
     disabilities who acquired jobs. Under S. 143, individuals 
     with disabilities should have more opportunities to receive 
     information and services targeted to job openings in their 
     communities. Moreover, since there would be one, and only 
     one, job training and placement assistance system in a State, 
     an individual with a disability could not be turned away or 
     denied core services.
  The percent of persons with earned income of any kind increased from 
21 percent at application to 90 percent at closure. The gain in the 
average hourly wage rate from application to the achievement of an 
employment outcome was $4.36 per person. Of the individuals achieving 
employment in fiscal year 1993, their mean weekly earnings at the time 
of their application to the program was $32.20, compared to $204.10 at 
closure, an average weekly increase of $164.90.
  In 1993, the Government Accounting Office [GAO] found that an 
individual who completed a vocational rehabilitation program was 
significantly more likely than an individual who did not complete the 
program of working for wages 5 years after exiting the program. In 
addition, the GAO found that individuals who achieved an employment 
outcome demonstrated four times the gain in wages compared to the other 
groups studied.
  I am also pleased to share with my colleagues the positive impact 
that vocational rehabilitation is having in my home State of Iowa. 
During fiscal year 1993-94, 5,717 Iowans with disabilities were 
rehabilitated through the Division of Vocational Rehabilitation 
Services. At referral to DVRS, 33 percent has weekly earnings; at 
closure the rate went to 98 percent. Average weekly earnings rose from 
$49.94 at referral to $229.45 at closure. In addition, the Iowa 
Department for the Blind provided 765 blind persons with vocational 
rehabilitation services. At closure the average weekly income was $352. 
Seventy-three percent of those rehabilitated found work in the 
competitive 

[[Page S 14840]]
labor market, including work in occupations such as psychologist, tax 
accountant, teacher, food service, and radio repair.
  Mr. President, as I explained previously in my remarks, under S. 143, 
title I of the Rehabilitation Act, as amended most recently in 1992, is 
not repealed; rather it is retained, strengthened, and made an integral 
component of the statewide work force development system.
  For example, the findings and purposes section of title I of the 
Rehabilitation Act are amended to make it clear that programs of 
vocational rehabilitation are intended to be an integral component of a 
State's work force development system. Further, the amendments clarify 
that linkages between the vocational rehabilitation program established 
under title I of the Rehabilitation Act and other components of the 
statewide work force development system are critical to ensure 
effective and meaningful participation by individuals with disabilities 
in work force development activities.
  Section 14 and section 106 of title I of the Rehabilitation Act 
pertaining to evaluations of the program are amended to make it clear 
that, to the maximum extent appropriate, standards for determining 
effectiveness of the program must be consistent with State benchmarks 
established under the Workforce Development Act for all employment 
programs.
  Provisions in the State plan under title I of the Rehabilitation Act 
of 1973 are also amended to include specific strategies for 
strengthening the vocational rehabilitation program as an integral 
component of the statewide work force development system established by 
the State. A cooperative agreement will be required to link the VR 
agency with the consolidated system. The cooperative agreement will 
address each State's unique system and will assure, for example, 
reciprocal referrals between the VR agency and the other components of 
the statewide system. The linkages will also assure that the staff at 
both agencies are adequately and appropriately trained. Most 
importantly, the linkages must be replicated at the local level so that 
the local office of the VR agency is working closely with the one-stop 
center in the community to make a seamless system of services a 
reality.
  Many State vocational rehabilitation agencies, including the agency 
in Iowa, are already involved with efforts to link vocational 
rehabilitation with other components of the statewide system of work 
force development. The States that report the most success are those 
where the vocational rehabilitation agencies are involved in the 
consolidation efforts at the early planning stages. The other aspect 
that is critical to ensure success is the replication of cooperative 
agreements in local communities so that the VR counselors are working 
closely with the other job training programs in the statewide system.
  In closing, Mr. President, I strongly support the provisions S. 143 
pertaining to individuals with disabilities. The bill ensures 
meaningful and effective access to the generic training and education 
programs. In addition, the amendments to the Rehabilitation Act of 1973 
will strengthen and support the involvement of vocational 
rehabilitation in a State's seamless system of work force development 
while ensuring the continued integrity and viability of the current 
program.
  Mr. HARKIN. Mr. President, as ranking member of the Subcommittee on 
Disability Policy, I would like to take a few minutes to discuss the 
applicability of S. 143, the Workforce Development Act, to individuals 
with disabilities.
  I would like to compliment Senator Kassebaum, the sponsor of the 
legislation and chair of the Committee on Labor and Human Resource, and 
Senator Frist, the chair of the Subcommittee on Disability Policy, for 
including specific provisions in S. 143 that will enhance our Nation's 
ability to address the employment-related needs of individuals with 
disabilities, including individuals with significant disabilities. I am 
particularly pleased that these provisions were developed on a 
bipartisan basis and enjoy the broad-based support of the disability 
community.
  On January 10, 1995, the Labor Committee heard testimony from Tony 
Young, on behalf of the Employment and Training Task Force of the 
Consortium for Citizens With Disabilities. CCD urged the Senate to 
recognize the positive advances made in the 1992 amendments to the 
Rehabilitation Act of 1973 and to take a two-pronged approach to 
addressing the needs of individuals with disabilities in our jobs 
consolidation legislation. I am pleased that the Senate bill adopted 
this two-pronged approach.
  Under prong one, S. 143 guarantee individuals with disabilities 
meaningful and effective access to the core services and optional 
services that are made available to nondisabled individuals in generic 
work force employment activities and to work force education activities 
described in the legislation, consistent with nondiscrimination 
provisions set out in section 106(f)(7) of the legislation, section 504 
of the Rehabilitation Act of 1973, and title II of the Americans With 
Disabilities Act.
  The commitment to ensuring meaningful and effective access to generic 
services for individuals with disabilities is critical. Advocates for 
individuals with disabilities have often expressed concern that many 
current generic job training programs such as JTPA have not met the 
needs of individuals with disabilities. Ensuring access to generic 
services is critical for many people with disabilities who can benefit 
from such services.
  The promise of access to generic services is also illustrated through 
other provisions in S. 143. The purposes of the bill--section 2(b)--
include creating coherent, integrated statewide work force development 
systems designed to develop more fully the academic, occupational, and 
literacy skills of all segments of the population and ensuring that all 
segments of the work force will obtain the skills necessary to earn 
wages sufficient to maintain the highest quality of living in the 
world. The content of the State plan set out in section 104(c) of S. 
143 must include information describing how the State will identify the 
current and future work force development needs of all segments of the 
population of the State. The term ``all'' is intended to include 
individuals with disabilities.
  The accountability provisions in S. 143, section 121(c)(4), specify 
that States must develop quantifiable benchmarks to measure progress 
toward meeting State goals for specified populations, including at a 
minimum, individuals with disabilities.
  Under S. 143, State vocational rehabilitation agencies must be 
involved in the planning and implementation of the generic system. For 
example, under section 104(d) of S. 143, the part of the State plan 
related to the strategic plan must describe how the State agency 
officials responsible for vocational rehabilitation collaborated in the 
development of the strategic plan. Under section 105(a) of S. 143, the 
work force development boards must include a representative from the 
State agency responsible for vocational rehabilitation and under 
section 118 of S. 143, local workforce development boards must include 
one or more individuals with disabilities or their representatives.
  Under prong two the current program of one-stop shopping for persons 
with disabilities, particularly those with severe disabilities, 
established under title I of the Rehabilitation Act of 1973, as amended 
most recently in 1992, is retained, strengthened, and made an integral 
component of the statewide work force development system.
  The current vocational rehabilitation system has helped millions of 
individuals with disabilities over the past 75 years to achieve 
employment. Since the 1992 amendments, the number of individuals 
assisted in achieving employment each year has increased steadily. In 
fiscal year 1994, 203,035 individuals achieved employment, up 5.8 
percent from fiscal year 1992, the year just prior to the passage of 
the amendments. Data for the first three quarters of fiscal year 1995 
show a 8.4-percent increase in the number of individuals achieving 
employment as compared to the first three quarters for fiscal year 
1994.
  In fiscal year 1993, 85.7 percent of the individuals achieving 
employment through vocational rehabilitation were either competitively 
employed or self-employed. Seventy-seven percent of individuals who 
achieved employment as 

[[Page S 14841]]
a result of the vocational rehabilitation program report that their own 
income is the primary source of support rather than depending on 
entitlement or family members.
  Mrs. KASSEBAUM. Mr. President, I would like to speak for just a 
moment because at 11:30 we go back into morning business for an hour. 
We will be debating this later to a far greater extent, but because Job 
Corps has been raised this morning by several Members, I would like to 
speak for a moment to this because it is something on which we held 
several days of hearings. It is a subject on which I have had grave 
concerns. It has been a very important program through the years. But 
like many other things, it can stand change that I believe will make it 
even stronger.
  Job Corps, under the legislation that we are considering, remains a 
residential program for at-risk youth, but it is integrated into the 
statewide work force development system. Too often today we have Job 
Corps centers that are federally run that operate independently of the 
vocational education efforts that are ongoing in the State. These 
centers remain separate and apart from job service information when we 
could include them into initiatives better able to help students find 
jobs.
  I think it is just absolutely essential for us today to recognize 
that there is a population of at-risk youth that need a stronger 
support system. Many times the Job Corps centers have become, or should 
become perhaps, detention-center-type efforts, but because there has 
not been a directive that has focused on the changing needs of the 
population being served. I think that on the whole we are now doing a 
disservice. It is not to say that it is not an important initiative. 
And it remains so under this legislation with its own funding stream 
and its own section.
  But primary responsibility for the operation of the Job Corps centers 
is transferred to the State. And each center must be linked to the one-
stop center and at other local training and education efforts. I think 
that linkage is vital today to make it a successful effort.
  During the 2-year transition period which is called for in this 
legislation, a national audit of the Job Corps Program will be 
performed. Based on the results of the audit, and other criteria, the 
Secretary of Labor is directed to close 25 underperforming Job Corps 
centers. The criteria used to determine which centers will be closed 
are as follows. This is, Mr. President, out of 112 centers which are 
operating with about 8 new ones under consideration.
  The criteria would be, first, whether a given center has consistently 
received low performance measurement ratings under the Department of 
Labor or Inspector General Job Corps rating system; second, whether the 
center is among those that have experienced the highest number of 
serious incidents of violence or criminal activity; third, whether or 
not the center requires the largest funding for rehabilitation and 
repair; fourth, the relative and absolute cost of the centers compared 
to all other centers; and, fifth, whether the center is among those 
with the least State and local support.
  The centers that we found that were working the best were those that 
had strong local support, that had strong ties to the community and 
worked well in that endeavor.
  Mr. President, funds saved as a result of these closures as well as 
additional funds will be allocated to the State for work force 
development activities directed specifically for at-risk youth. These 
activities may include, for example, grants to carry out programs to 
assist out-of-school at-risk youth and participating in school-to-work 
activities. Under this provision, 85 percent of the at-risk youth funds 
will be distributed at the local level.
  As I say, we will be debating this at some length later on because it 
is of concern and it has supporters and critics on both sides of the 
aisle. But it is something, I believe, that is a good example of a 
program that started with the best of intentions, and still has the 
best of intentions, but must be looked at in the light of the reality 
of what we are dealing with today. And I feel those who are 
participants, the young men and women in the Job Corps Program, are not 
being served consistently as successfully as I believe they could with 
some important changes that we could make in this bill. But we will be 
continuing this debate later. I wanted to mention those aspects of it 
at this point.
  Mr. KENNEDY. Mr. President, I will just yield such time--as I 
understand it, at 11:30 we will be moving to morning business.
  I yield myself such time as I might use.
  Mr. President, I will join in the debate and discussion on the Job 
Corps Program later on in the afternoon and the substance of what I 
think is an excellently crafted amendment by the Senator from Illinois 
and the Senator from Pennsylvania, which I think addresses the 
responses to some of the issues and problems that have been raised 
during the course of hearings on the Job Corps.
  I think we do not want to lose sight of the fact that we are dealing 
with the most difficult of the young people in our society who, for one 
reason or another, have in most instances been deprived of a good 
education. They come from difficult and challenging backgrounds. This 
is in many instances the last step before a life of conflict and 
possibly even crime. And when you look over the profile of these young 
individuals, we recognize the difficulty and the complexity that is 
presented to a society and to a community in order to try to deal with 
this.
  Part of the problem--we will have a chance to debate this later on in 
the course of the afternoon--is the fact that not all the States have 
the Job Corps at this particular time. Part of the problem is that many 
of the individuals who come through the Job Corps, the kind of skills 
that they might be suited for may not be in the Job Corps that is 
closest to them. They may have a particular aptitude to develop 
particular skills in the Job Corps that is in the next State or the 
State beyond that will give them the opportunity.
  Part of the problem is to try to give an opportunity for young people 
to move out of a neighborhood or out of a community in which that 
neighborhood or community and the associates have had a powerful hold 
over that individual. We will have a chance to go into greater detail 
as to the challenges and the demands and also the difficulties of the 
existing Job Corps issue, but I must say that I have found that the 
program particularly is of value.
  If you take, for example, holding a young person in my own State of 
Massachusetts inside of what is route 128 that has had any kind of 
contact with the law costs about $70,000 or $75,000 a year; it costs 
about $35,000 to $40,000 outside of Greater Boston, the route 128 area. 
We are talking about how we are going to come to grips with a group of 
young men and women, 17 years old, 16 to 18, 19 years old, who have had 
a very difficult and complex and rough life.
  And the question is whether this Job Corps Program can open up some 
opportunities for these individuals to be constructive and productive 
and gainful citizens. In many instances it has been an extraordinary 
success. In some instances there needs to be improvement and 
strengthening of the program. I do think that the Simon-Specter 
amendment addresses the particular complexities of the program.
  Finally, Mr. President, as I mentioned earlier, I think when we are 
looking at this legislation, when we are looking at the consolidation 
of the various programs that Senator Kassebaum has pointed out, we are 
also trying to include in here the best of the recommendations of the 
America's Choice Program, which I think provided the most comprehensive 
review of training, apprenticeship programs, what the needs were in our 
own society, what is happening in other countries, very extensive 
program and review of countries around the world, identifying those 
effective programs, those programs that were effective in providing 
skills and opportunity for young and old alike.
  This proposal that is before us, although it does not include many of 
the different elements of the job training that I would like to see, 
is, I think, a very, very constructive, productive and innovative way 
of this Nation coming to grips with the challenge of ensuring the 
upgrading and continued upgrading of skills for young and old in our 
society. 

[[Page S 14842]]

  I hope that we will have a chance to dispose of these other 
amendments later on in the afternoon and move the whole process 
forward.
  Mr. PELL. Mr. President, I rise to express my strong support for this 
legislation, which makes dramatic and sweeping changes not only in job 
training but also in vocational and adult education.
  In job training, change is without a doubt necessary. We need to 
consolidate programs and to build a system that better meets the needs 
of those who need job training services. In vocational and adult 
education, however, the need for a massive overhaul is much less clear. 
In some ways, we need simply to refine and not revamp what we already 
have in law.
  I am generally pleased with the course that has been set in this 
bill. It will bring coherence and coordination to a system of too many 
programs that have often operated at odds with each other. It will 
focus job training services on those who need them most, and in a way 
that will help them get the advice, assistance, and training they need.
  In vocational and adult education, I believe we have fashioned an 
agreement that should sustain the strong bipartisan support these 
programs have traditionally enjoyed. Among the important provisions 
are: No. 1, are within state formula; No. 2, a focus on at-risk 
students from low-income families; No. 3, maintenance of effort and 
supplement not supplant language; No. 4, an emphasis on the integration 
of academic and vocational education; No. 5, the linking of secondary 
and postsecondary education through exciting programs like tech prep; 
No. 6, the disaggregation of data to let us know better the progress we 
are making; and, No. 7, the continuation of the critically important 
adult education programs.
  I would emphasize, however, that we can make this bill even better if 
we adopt a series of important amendments. I am very concerned, for 
instance, that adult education should have a separate stream of funding 
so that its accomplishments are not diminished. I believe that the 
flexibility account, which constitutes 50 percent of the funding, is 
too large, and that a better configuration would be one-third for work 
force education, one-third for work force training, and one-third for 
the flex account. Further, I believe we should approve an amendment 
strengthening the Job Corps provisions now in the bill. And, I do not 
believe that we should repeal the Trade Adjustment Act which helps 
individuals who because of international competition, and through no 
fault of their own, have lost their jobs.
  Mr. President, I supported this bill in committee largely because of 
the strong provisions for adult and vocational education. I support it 
today for the same reasons. However, I believe we have the opportunity 
to make a good bill an even better one if we approve amendments such as 
those I have mentioned. I look forward to a lively and productive 
debate, and remain very hopeful that the end result will be legislation 
that has broad and deep bipartisan support.
  Mr. DODD. Mr. President, few issues we consider are as directly 
linked to the future strength of our Nation as those before us today. 
The education and training we provide today point like a compass to our 
Nation's future path.
  The needs in education and training are clearly great. Because in the 
last several decades, our economy has been transformed from an economy 
in which heavy manufacturing was the central element to an economy that 
is knowledge based.
  Technology has and continues to revolutionize today's workplaces. The 
typewriters that gained widespread use early this century are now 
basically gone. Computers, with their incredible power and potential, 
have taken over. It is hard to imagine how just a few years ago we 
operated without internet, fax machines, or voice mail. In 
manufacturing, robotics and precision machinery have replaced workers 
on many assembly lines.
  This rapid change makes for an exciting time in today's workplaces. 
But it also presents us with many challenges. We must assure that 
education and training provide all with access to the new tools of the 
trade.
  The work force development bill before us today makes many positive 
changes to meet these challenges. Senator Kassebaum has thought 
creatively about job training and vocational and adult education 
programs, namely how we can make them more flexible, more customer-
friendly, and less redundant while providing critical links between 
training and labor markets.
  This bill includes many promising provisions, including the 
transition to an accessible ``one-stop'' work force development system. 
With Federal leadership, one-stops have been broadly improving access 
to job training and information services in States across the country.
  This bill also integrates vocational education and the Perkins Act as 
full partners in the larger work force development system. Since we 
last visited vocational education in 1988, vocational education has 
been on the cutting edge of school reform--tech-prep and school-to-work 
have established promising new models that ensure youth get the 
knowledge and skills they need to pursue successful careers and 
complete their education. The Work Force Development Act continues and 
strengthens these important efforts.
  We have worked hard on this bill in the Labor Committee and made much 
progress--progress which has continued as we have approached today's 
floor consideration.
  I am particularly pleased that the bill now includes a summer jobs 
program for at-risk youth. In committee, I offered an amendment 
restoring the Federal Summer Jobs Program, which has made a profound 
difference for youth across the country, and especially in our poor, 
urban centers. While the provision in the bill before use today does 
not go as far as my amendment, it will ensure that States establish 
vital summer jobs programs.
  In addition, the bill now also includes important worker protections. 
It integrates, rather than eliminates, the successful employment and 
training administration into the State structure. The Federal 
governance structure has also been substantially improved to recognize 
the primary responsibility of the Secretaries of Education and Labor.
  I am especially pleased that several other changes I offered in the 
past weeks and months are a part of the bill we consider today, 
including increased parental involvement in vocational education and 
improved conflict of interest language.
  That said, I remained concerned about some aspects of the bill before 
us.
  I strongly believe we should make some provision in this bill for 
mass worker dislocations, especially those that affect more than one 
State, that are the result of Federal action or that are caused by 
natural disasters. Such mass layoffs and dislocations are often too 
much for any one State to handle, and we have a tradition of Federal 
involvement in this area. I plan to offer an amendment on this point. 
Without this amendment, the Federal Government would have no way of 
addressing mass worker dislocations, and States would be left to deal 
with them alone. I hope my colleagues will support my amendment.
  In addition, I hope that we can restore the Job Corps Program. 
Senator Kassebaum has spoken often of the need to reform Job Corps, and 
I agree we should work together in a bipartisan fashion to build on the 
considerable progress the administration has already made in this area. 
But I do not believe the Job Corps provisions in this bill qualify as 
real reform. The bill arbitrarily pulls a number out of the air and 
says that 25 Job Corps centers must be closed.
  It makes this determination before a national audit is complete--
that's evocative of Judge Roy Bean's famous dictum to ``hang 'em first, 
try 'em later.'' The bill would also ship management of this successful 
national program to the States--endangering the future of the Job Corps 
as well as multiplying one administrative structure by 50.
  We can also improve upon the support offered for actual job training 
services. The work force development system, as proposed, will provide 
workers with information on local and State labor markets, with skills 
assessment and job search services. But it will 

[[Page S 14843]]
guarantee workers very little in the way of real training.
  Two amendments to be offered today will go a long way in providing 
workers with real training. The Breaux amendment will provide support 
for one of the most innovative training tools--training vouchers. Under 
his amendment, dislocated workers will be empowered to make key 
decisions about training.
  Senator Moynihan will offer an amendment to restore the Trade 
Adjustment Assistance Program. Repealing TAA, as this bill does, breaks 
a covenant with America's workers, many of whom have felt the dark side 
of free trade. I believe strongly that free trade is, on balance, good 
for America and our workers. But it is clear there must be assistance 
in helping workers transition to, train for and locate jobs in growing 
industries.
  Finally, I remain concerned about maintaining a Federal commitment to 
audit education. Adult education has provided thousands of needy 
Americans with assistance in gaining literacy skills that make them 
better citizens, better parents and better workers. For these 
Americans, these dollars provide dignity. I think we must assure that 
these adults continue to receive these critical services through this 
new system.
  I want to come back to the big picture for a moment. Education and 
training have always been bipartisan issues and I hope they can be on 
this bill. Through the amendments today, it is clear we can work 
through some of the concerns that remain to fashion consensus 
legislation that will be good for American workers and good for 
American students. I pledge to be a part of that dialog and am hopeful 
that at the end of the day, this will be legislation that I can 
support.
  Mr. KENNEDY. I see the hour of 11:30 has approached.

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