[Congressional Record Volume 141, Number 156 (Tuesday, October 10, 1995)]
[Senate]
[Pages S14907-S14941]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          AMENDMENTS SUBMITTED

                                 ______


                 THE WORKFORCE DEVELOPMENT ACT OF 1995

                                 ______


                      KASSEBAUM AMENDMENT NO. 2885

  Mrs. KASSEBAUM proposed an amendment to the bill (S. 143) to 
consolidate Federal employment training programs and create a new 
process and structure for funding the programs, and for other purposes; 
as follows:

       Strike all after the enacting clause and insert 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--WORKFORCE DEVELOPMENT AND WORKFORCE PREPARATION ACTIVITIES

          Subtitle A--Statewide Workforce Development Systems

          Chapter 1--Provisions for States and Other Entities

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.
Sec. 107. Indian workforce development activities.
Sec. 108. Grants to outlying areas.

                      Chapter 2--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.
Sec. 119. Construction.

                       Chapter 3--Administration

Sec. 121. Accountability.
Sec. 122. Incentives and sanctions.
Sec. 123. Unemployment trust fund.
Sec. 124. Authorization of appropriations.
Sec. 125. Effective date.

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

                     Chapter 1--General Provisions

Sec. 131. Purposes.
Sec. 132. Definitions.
Sec. 133. Authority of Governor.

                          Chapter 2--Job Corps

Sec. 141. General authority.
Sec. 142. Screening and selection of applicants.
Sec. 143. Enrollment and assignment.
Sec. 144. Job Corps centers.
Sec. 145. Program activities.
Sec. 146. Support.
Sec. 147. Operating plan.
Sec. 148. Standards of conduct.
Sec. 149. Community participation.
Sec. 150. Counseling and placement.
Sec. 151. Leases and sales of centers.
Sec. 152. Closure of Job Corps centers.
Sec. 153. Interim operating plans for Job Corps centers.
Sec. 154. Effective date.

  Chapter 3--Other Workforce Preparation Activities for At-risk Youth

Sec. 161. Workforce preparation activities for at-risk youth.

                   Subtitle C--Transition Provisions

Sec. 171. Waivers.
Sec. 172. Flexibility demonstration program.
Sec. 173. Interim State plans.
Sec. 174. Applications and plans under covered Acts.
Sec. 175. Interim administration of school-to-work programs.
Sec. 176. Interim authorizations of appropriations.

                    Subtitle D--National Activities

Sec. 181. Federal Partnership.
Sec. 182. National Workforce Development Board and personnel.
Sec. 183. Labor market and occupational information.
Sec. 184. National Center for Research in Education and Workforce 
              Development.
Sec. 185. National assessment of vocational education programs.
Sec. 186. Transfers to Federal Partnership.
Sec. 187. Transfers to other Federal agencies and offices.
Sec. 188. Elimination of certain offices.

Subtitle E--Repeals of Employment and Training and Vocational and Adult 
                           Education Programs

Sec. 191. Repeals.
Sec. 192. Conforming amendments.

           TITLE II--WORKFORCE DEVELOPMENT-RELATED ACTIVITIES

        Subtitle A--Amendments to the Rehabilitation Act of 1973

Sec. 201. References.
Sec. 202. Findings and purposes.
Sec. 203. Consolidated rehabilitation plan.
Sec. 204. Definitions.
Sec. 205. Administration.
Sec. 206. Reports.
Sec. 207. Evaluation.
Sec. 208. Declaration of policy.
Sec. 209. State plans.
Sec. 210. Individualized employment plans.
Sec. 211. Scope of vocational rehabilitation services.
Sec. 212. State Rehabilitation Advisory Council.
Sec. 213. Evaluation standards and performance indicators.
Sec. 214. Repeals.
Sec. 215. Effective date.

              Subtitle B--Amendments to Wagner-Peyser Act

Sec. 221. General program requirements.

[[Page S 14908]]

Sec. 222. Definitions.
Sec. 223. Functions.
Sec. 224. Designation of State agencies.
Sec. 225. Appropriations.
Sec. 226. Disposition of allotted funds.
Sec. 227. State plans.
Sec. 228. Federal Advisory Council.

       Subtitle C--Amendments to Immigration and Nationality Act

Sec. 231. Prohibition on use of funds for certain employment 
              activities.

      Subtitle D--Amendments to the National Literacy Act of 1991

Sec. 241. National Institute for Literacy.
Sec. 242. State literacy resource centers.
Sec. 243. National Workforce Literacy Assistance Collaborative.
Sec. 244. Family literacy public broadcasting program.
Sec. 245. Mandatory literacy program.

     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) Appropriate secretary.--The term ``appropriate 
     Secretary'' means, as determined under section 186(c)--
       (A) the Secretary of Labor;
       (B) the Secretary of Education; or
       (C) the Secretary of Labor and the Secretary of Education, 
     acting jointly.
       (3) 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.
       (4) 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 
     Federal Partnership 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 Federal Partnership to be low-
     income, using such data.
       (5) Chief elected official.--The term ``chief elected 
     official'' means the chief elected officer of a unit of 
     general local government in a substate area.
       (6) 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.
       (7) Covered activity.--The term ``covered activity'' means 
     an activity authorized to be carried out under a provision 
     described in section 191(b) (as such provision was in effect 
     on the day before the date of enactment of this Act).
       (8) 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, or as a result 
     of a closure or realignment of a military installation;
       (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.
       (9) 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 Federal Partnership, and who no longer 
     receives financial support previously provided by a spouse or 
     by public assistance.
       (10) Economic development activities.--The term ``economic 
     development activities'' means the activities described in 
     section 106(e).
       (11) 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.
       (12) 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).
       (13) Federal partnership.--The term ``Federal Partnership'' 
     means the Workforce Development Partnership established in 
     section 181, acting under the direction of the National 
     Board.
       (14) Flexible workforce activities.--The term ``flexible 
     workforce activities'' means the activities described in 
     section 106(d).
       (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) National board.--The term ``National Board'' means the 
     National Board of the Federal Partnership.
       (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.
       (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.

[[Page S 14909]]

       (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;
       (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; and
       (F) are designed and carried out by local partnerships that 
     include representatives of business and industry, education 
     providers, and the community in which the activities are 
     carried out.
       (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 
     121(c) and identified in the report submitted under section 
     121(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 
     121(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 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 121(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 121(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, business, or applied economics;
       (D) builds student competence in mathematics, science, 
     communications, economics, 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) Veteran.--The term ``veteran'' has the meaning given 
     the term in section 101(2) of title 38, United States Code.
       (32) 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 occupation-specific skills, of an 
     individual.
       (33) 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.).
       (34) Welfare assistance.--The term ``welfare assistance'' 
     means--
       (A) assistance provided under part A of title IV of the 
     Social Security Act; and
       (B) assistance provided under the Food Stamp Act of 1977 (7 
     U.S.C. 2011 et seq.).
       (35) Welfare recipient.--The term ``welfare recipient'' 
     means--
       (A) an individual who receives assistance under part A of 
     title IV of the Social Security Act; and
       (B) an individual who--
       (i) is not an individual described in subparagraph (A); and
       (ii) receives assistance under the Food Stamp Act of 1977.
       (36) Workforce development activities.--The term 
     ``workforce development activities'' means workforce 
     education activities, workforce employment activities, 
     school-to-work activities, and economic development 
     activities (within a State that is eligible to carry out such 
     activities).
       (37) Workforce education activities.--The term ``workforce 
     education activities'' means the activities described in 
     section 106(b).
       (38) 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).
       (39) Workforce preparation activities for at-risk youth.--
     The term ``workforce preparation activities for at-risk 
     youth'' means the activities described in section 161(b), 
     carried out for at-risk youth.
  TITLE I--WORKFORCE DEVELOPMENT AND WORKFORCE PREPARATION ACTIVITIES
          Subtitle A--Statewide Workforce Development Systems

          CHAPTER 1--PROVISIONS FOR STATES AND OTHER ENTITIES

     SEC. 101. STATEWIDE WORKFORCE DEVELOPMENT SYSTEMS 
                   ESTABLISHED.

       For program year 1998 and each subsequent program year, the 
     Secretary of Labor and the Secretary of Education, acting 
     jointly on the advice of the Federal Partnership, 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 subtitle.

     SEC. 102. STATE ALLOTMENTS.

       (a) In General.--The Secretary of Labor and the Secretary 
     of Education, acting jointly on the advice of the Federal 
     Partnership, 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 
     subsections (c) and (d).
       (b) Allotments Based on Populations.--
       (1) Definitions.--As used in this subsection:
       (A) Adult recipient of assistance.--The term ``adult 
     recipient of assistance'' means a recipient of assistance 
     under a State program funded under part A of title IV of the 
     Social Security Act who is not a minor child (as defined in 
     section 402(c)(1) of such Act).
       (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 subsections (c) and 
     (d), from the amount reserved under section 124(b)(1), the 
     Secretary of Labor and the Secretary of Education, acting 
     jointly on the advice of the Federal Partnership--
       (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 age 15 and not more than 
     age 65 (as determined by the Federal Partnership 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 20 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;

[[Page S 14910]]

       (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 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 
     monthly number of adult recipients of assistance (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 assistance (as so determined) in all States.
       (c) Minimum State Allotment.--
       (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 amount reserved under section 124(b)(1) for the 
     program year; by
       (B) the total number of individuals who are not less than 
     age 15 and not more than age 65 (as determined by the Federal 
     Partnership 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) 
     and subsection (d), no State shall receive an allotment under 
     this section for a program year in an amount that is less 
     than 0.5 percent of the amount reserved under section 
     124(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 
     age 15 and not more than age 65 (as determined by the Federal 
     Partnership 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) 1.5; and
       (ii) the national average per capita payment for the 
     program year.
       (4) Adjustments.--In order to increase the allotments of 
     States as a result of the application of paragraph (2), the 
     Secretary of Labor and the Secretary of Education, acting 
     jointly, shall reduce, on a pro rata basis, the allotments of 
     the other States (except as provided in subsection (d)).
       (d) Overall Limitations.--
       (1) Definition.--As used in this subsection, the term 
     ``State percentage'' means--
       (A) with respect to the program year preceding program year 
     1998, the percentage that a State receives of the financial 
     assistance made available to States to carry out covered 
     activities for the year ending on June 30, 1998; and
       (B) with respect to program year 1998 and each subsequent 
     program year, the percentage that a State receives of the 
     amount reserved under section 124(b)(1) for the program year.
       (2) Limitations.--No State shall receive an allotment under 
     this section for a program year in an amount that would make 
     the State percentage for the program year--
       (A) less than the product obtained by multiplying--
       (i) 0.95; and
       (ii) the State percentage of the State for the preceding 
     program year; or
       (B) greater than the product obtained by multiplying--
       (i) 1.05; and
       (ii) the State percentage of the State for the preceding 
     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 through funds received under section 6 of the Wagner-
     Peyser Act (29 U.S.C. 49e) to carry out this subtitle for a 
     program year--
       (1) a portion equal to 25 percent of such sum (which 
     portion shall include the funds received by the State under 
     section 6 of the Wagner-Peyser Act) shall be made available 
     for workforce employment activities or activities carried out 
     under the Wagner-Peyser Act (29 U.S.C. 49 et seq.);
       (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 title 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 Secretary of Labor and the Secretary of 
     Education, acting jointly, 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 Federal Partnership, 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 in collaboration with the State 
     postsecondary education agency and with representatives of 
     vocational education and community colleges.
       (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 the State will obtain the 
     active and continuous participation of local partnerships 
     (or, where established, local workforce development boards 
     described in section 118(b)) in the development and 
     continuous improvement of the statewide system;
       (H) information identifying how any funds that a State 
     receives under this subtitle 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;
       (I) information identifying how the workforce development 
     activities to be carried out with funds received through the 
     allotment will be coordinated with programs carried out by 
     the Veterans' Employment and Training Service with funds 
     received under title 38, United States Code, in order to meet 
     the State goals and reach the State benchmarks related to 
     veterans;
       (J) information describing how the State will eliminate 
     duplication in the administration and delivery of services 
     under this subtitle;
       (K) 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;
       (L) an assurance that the funds made available under this 
     subtitle will supplement and not supplant other public funds 
     expended to provide workforce development activities;
       (M) 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;
       (N) with respect to economic development activities, 
     information--

[[Page S 14911]]

       (i) describing the activities to be carried out with the 
     funds made available under this subtitle;
       (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;
       (O) the description referred to in subsection (d)(1); and
       (P)(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 subtitle, 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);
       (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 of 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 ensure that all publicly funded labor 
     exchange services described in section 106(a)(2)(B), and all 
     such services described in the Wagner-Peyser Act (29 U.S.C. 
     49 et seq.), are provided through the one-stop career center 
     system of the State;
       (vi) 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;
       (vii) 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
       (viii) 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 and occupational information 
     system described in section 183(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 121(d); and
       (G) describing the process the State will use to approve 
     all providers of workforce employment activities through the 
     statewide system; 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;
       (K) describing how the State will assess the progress of 
     the State in implementing student performance measures; and
       (L) describing how the State will encourage the 
     participation of parents of secondary school students 
     involved in workforce education activities carried out under 
     this subtitle in State and local decisions regarding 
     workforce education activities carried out under this 
     subtitle.
       (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, 
     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 and community colleges;
       (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) the representative of the Veterans' Employment and 
     Training Service assigned to the State under section 4103 of 
     title 38, United States Code; and
       (L) 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 Secretary of Labor and the Secretary of 
     Education, acting jointly on the advice of the Federal 
     Partnership, shall approve a State plan if--
       (1) the Federal Partnership determines that the plan 
     contains the information described in subsection (c);
       (2) the Federal Partnership 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) the State benchmarks for the State have been negotiated 
     and approved in accordance with section 121(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 

[[Page S 14912]]
     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 Federal Partnership regarding progress in reaching the 
     State benchmarks, as described in section 121(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 and occupational information 
     system described in section 183(c) to provide information 
     that will be utilized by jobseekers, employers, 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 subtitle.

     SEC. 106. USE OF FUNDS.

       (a) Workforce Employment Activities.--
       (1) In general.--Funds made available to a State under this 
     subtitle 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 and occupational information system.--The 
     State shall use a portion of the funds described in paragraph 
     (1) to establish a statewide comprehensive labor market and 
     occupational information system described in section 183(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 121(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.
       (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;
       (N) followup services for participants who are placed in 
     unsubsidized employment; and
       (O) an employment and training program described in section 
     6(d)(4) of the Food Stamp Act of 1977 (7 U.S.C. 2015(d)(4)).
       (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 121(c), with an emphasis 
     on benchmarks established under section 121(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 subtitle.
       (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 subtitle 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 and occupational 
     information system described in section 183(c) and the job 
     placement accountability system established under section 
     121(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 subtitle 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, planning, 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, 

[[Page S 14913]]
     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 subtitle 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 
     subtitle for any program year to a State for workforce 
     education activities unless the Federal Partnership 
     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 Federal Partnership 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 subtitle 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 subtitle 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 not more than 50 percent of the funds made 
     available to the State under this subtitle through the flex 
     account to supplement other funds provided by the State or 
     private sector--
       (1) to provide services to upgrade the skills of employed 
     workers who are at risk of being permanently laid off;
       (2) to retrain employed workers in new technologies and 
     work processes that will facilitate the conversion and 
     restructuring of businesses to assist in the avoidance of 
     closures, or layoffs of 50 or more people, at a plant, 
     facility, or enterprise;
       (3) to provide customized assessments of the skills of 
     workers and an analysis of the skill needs of employers;
       (4) to assist consortia of small- and medium-size employers 
     in upgrading the skills of their workforces;
       (5) to provide productivity and quality improvement 
     training programs for the workforces of small- and medium-
     size employers;
       (6) to provide recognition and use of voluntary industry-
     developed skills standards by employers, schools, and 
     training institutions;
       (7) to carry out training activities in companies that are 
     developing modernization plans in conjunction with State 
     industrial extension service offices; and
       (8) 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 subtitle 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 subtitle 
     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 subtitle 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.
       (4) Displacement.--
       (A) In general.--No currently employed worker shall be 
     displaced (including partial displacement such as a reduction 
     in hours of nonovertime work, wages, or employment benefits) 
     by any participant in an activity carried out under this 
     subtitle.
       (B) Existing contract for services or collective bargaining 
     agreement.--No activity carried out under this subtitle shall 
     impair an existing contract for services or a collective 
     bargaining agreement.
       (C) Layoff or termination.--No participant shall be 
     employed or job opening filled for an activity carried out 
     under this subtitle--
       (i) when any other individual is on layoff from the same or 
     a substantially equivalent job; or
       (ii) when the employer has terminated the employment of any 
     regular employee or otherwise reduced the workforce of the 
     employer with the intention of filling the vacancy so created 
     by hiring a participant whose wages are subsidized under this 
     subtitle.
       (5) Health and safety.--Health and safety standards 
     established under Federal and State law otherwise applicable 
     to working conditions of employees shall be equally 
     applicable to working conditions of participants engaged in 
     work-related activities pursuant to this subtitle. 
     Appropriate workers' compensation shall be provided to the 
     participants on the same basis as the compensation is 
     provided to other individuals in the State in similar 
     employment (as determined under regulations issued by the 
     Secretary of Labor).
       (6) Employment conditions.--Participants employed or 
     assigned to work in positions subsidized under this subtitle 
     shall be provided benefits and working conditions at the same 
     level and to the same extent as other employees working a 
     similar length of time and doing the same type of work.
       (7) Nondiscrimination.--Except as otherwise permitted in 
     law, no individual may be excluded from participation in 
     workforce development activities carried out under this 
     subtitle because of race, color, religion, sex, national 
     origin, disability, or age.
       (8) Grievance procedure.--The State shall establish and 
     maintain (pursuant to regulations issued by the Secretary of 
     Labor) a grievance procedure for resolving complaints 
     alleging violations of any of the prohibitions or 
     requirements described in this subsection. Such procedure 
     shall include an opportunity for a hearing and shall be 
     completed not later than the 90th day after the date of the 
     submission of a complaint, by which day the complainant shall 
     be provided a written decision by the State. A decision of 
     the State under such procedure, or a failure of the State to 
     issue a decision within the 90-day period, may be appealed to 
     the Secretary of Labor, who shall investigate the allegations 
     contained in the complaint and make a determination not later 
     than 60 days after the date of the appeal as to whether a 
     violation of a prohibition or requirement of this subsection 
     has occurred.
       (9) Remedies.--
       (A) In general.--Except as provided in subparagraphs (B) 
     and (C), remedies that may be imposed under this paragraph 
     for violations of the prohibitions and requirements described 
     in this subsection shall be limited to--
       (i) suspension or termination of payments under this 
     subtitle;
       (ii) prohibition of placement of any participant, for an 
     appropriate period of time, with an employer that has 
     violated this subsection; and
       (iii) appropriate equitable relief (other than backpay).
       (B) Exceptions.--
       (i) Repayment.--If the Secretary of Labor determines that a 
     violation of paragraph (2) or (3) has occurred, the Secretary 
     of Labor shall require the State or substate recipient of 
     funds that has violated paragraph (2) or (3), respectively, 
     to repay to the United States an amount equal to the amount 
     expended in violation of paragraph (2) or (3), respectively.
       (ii) Additional remedies.--In addition to the remedies 
     available under subparagraph (A), remedies available under 
     this paragraph for violations of paragraph (4) may include--

       (I) reinstatement of the displaced employee to the position 
     held by such employee prior to displacement;
       (II) payment of lost wages and benefits of the employee; 
     and
       (III) reestablishment of other relevant terms, conditions, 
     and privileges of employment of the employee.

       (C) Other laws or contracts.--Nothing in this paragraph 
     shall be construed to prohibit a complainant from pursuing a 
     remedy authorized under another Federal, State, or local law 
     or a contract or collective bargaining agreement for a 
     violation of the prohibitions or requirements described in 
     this subsection.
       (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 subsection (a)(6) until the 
     individual has obtained a secondary school 

[[Page S 14914]]
     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 
     subsection (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.
       (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 
     subsection (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 title, 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 subsection (a)(6); and
       (ii) are otherwise unable to obtain such services.
       (h) Laws and procedures applicable to expenditure of State 
     funds.--Any funds received by a State under this subtitle 
     shall be expended only in accordance with the laws and 
     procedures applicable to expenditures of the State's own 
     revenues, subject to the terms and conditions required under 
     this subtitle, particularly section 104, section 105, and 
     chapter 2.

     SEC. 107. 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 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 124(b)(2), the Secretary of Labor and the 
     Secretary of Education, acting jointly on the advice of the 
     Federal Partnership, 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, and Native Hawaiian 
     organizations to carry out the authorized activities 
     described in subsection (d).
       (2) Formula.--The Secretary of Labor and the Secretary of 
     Education, acting jointly on the advice of the Federal 
     Partnership, 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 Federal Partnership 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 
     Federal Partnership 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 title; 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.--There shall be established within 
     the Federal Partnership an office to administer the 
     activities assisted under this section.
       (2) Consultation required.--
       (A) In general.--The Federal Partnership, 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 

[[Page S 14915]]
     special circumstances under which such activities operate.
       (B) Administrative support.--The Federal Partnership shall 
     provide such administrative support to the office established 
     under paragraph (1) as the Federal Partnership determines to 
     be necessary to carry out the consultation required by 
     subparagraph (A).
       (3) Technical assistance.--The Federal Partnership, 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. 108. GRANTS TO OUTLYING AREAS.

       (a) General Authority.--Using funds made available under 
     section 124(b)(3), the Secretary of Labor and the Secretary 
     of Education, acting jointly on the advice of the Federal 
     Partnership, shall make grants to outlying areas to carry out 
     workforce development activities.
       (b) Application.--The Federal Partnership shall issue 
     regulations specifying the provisions of this subtitle that 
     shall apply to outlying areas that receive funds under this 
     subtitle.

                      CHAPTER 2--LOCAL PROVISIONS

     SEC. 111. LOCAL APPORTIONMENT BY ACTIVITY.

       (a) Workforce Employment Activities.--
       (1) In general.--The sum of--
       (A) the funds made available to a State for any fiscal year 
     under section 103(a)(1), less any portion of such funds made 
     available under section 6 of the Wagner-Peyser Act (29 U.S.C. 
     49e); and
       (B) the funds made available to a State for any fiscal year 
     under section 103(a)(3) 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, of which not more than 20 percent of such 25 percent 
     may be used for administrative expenses; 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 assistance, 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 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 activities.--Activities to be carried out under 
     paragraph (2)(A) may include professional development, 
     technical assistance, and program assessment activities.
       (4) 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 subtitle shall be 
     construed to prohibit any individual, entity, or agency in a 
     State (other than the State educational agency) that is 
     administering workforce education activities or setting 
     education policies consistent with authority under State law 
     for workforce education activities, on the day preceding the 
     date of enactment of this Act from continuing to administer 
     or set education policies consistent with authority under 
     State law for such activities under this subtitle.

     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 124(c)) by such 
     agency for secondary school vocational education under 
     section 111(b)(4)(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 subtitle shall allocate funds to a local educational 
     agency that serves only elementary schools, but shall 
     distribute such funds to the local educational agency or 
     regional educational agency that provides secondary school 
     services to secondary school students in the same attendance 
     area.
       (2) Special rule.--The amount to be allocated under 
     paragraph (1) to a local educational agency that has 
     jurisdiction only over secondary schools shall be determined 
     based on the number of students that entered such secondary 
     schools in the previous year from the elementary schools 
     involved.
       (d) Allocations to Area Vocational Education Schools and 
     Educational Service Agencies.--
       (1) In general.--Each 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)(4)(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 

[[Page S 14916]]
     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) assistance under a State program funded under part A 
     of title IV of the Social Security Act;
       (III) benefits under the Food Stamp Act of 1977 (7 U.S.C. 
     2011 et seq.); or
       (IV) services under title I of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 6301 et seq.); and

       (ii) another index of economic status, including an 
     estimate of such index, if the State educational agency 
     demonstrates to the satisfaction of the Federal Partnership 
     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.
       (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)(4)(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 124(c)) from such remainder that 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 Federal 
     Partnership may waive the application of subsection (a) in 
     the case of any State educational agency that submits to the 
     Federal Partnership 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 receiving assistance under a 
     State program funded under part A of title IV of the Social 
     Security Act;
       (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) Definitions.--For the purposes of this section--
       (1) the term ``eligible institution'' means a postsecondary 
     educational institution, 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 ``low-income'', used with respect to a person, 
     means a person who is determined under guidelines developed 
     by the Federal Partnership to be low-income, using the most 
     recent available data provided by the Bureau of the Census, 
     prior to the determination; and
       (3) 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)(4)(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, libraries, 
     public or private nonprofit agencies, postsecondary 
     educational institutions, public housing authorities, and 
     other nonprofit institutions that have the ability to provide 
     literacy services to adults and families, or consortia of 
     agencies, organizations, or institutions described in this 
     subsection, to enable such agencies, organizations, 
     institutions, and consortia to 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)(4)(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 
     objectives of this subtitle; 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 Cost 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.
     
[[Page S 14917]]


     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)(4)(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. The State educational agency may waive the 
     requirements of the preceding sentence, on a case-by-case 
     basis, for good cause as determined by such agency.
       (b) Redistribution of Amounts Returned Late in a 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.

     SEC. 117. LOCAL APPLICATION FOR WORKFORCE EDUCATION 
                   ACTIVITIES.

       (a) In General.--
       (1) In general.--Each eligible entity desiring financial 
     assistance under this subtitle 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 subtitle;
       (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 
     evaluate 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 Federal Partnership, the 
     Governor shall negotiate and enter into a local agreement 
     regarding the workforce development activities 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, community-based organizations, and veterans, 
     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 in accordance with section 
     111(a) or in accordance with sections 111(b), 112, 113, and 
     114 will be spent to meet the State goals and reach the State 
     benchmarks in a manner that reflects local labor market 
     conditions.
       (B) Local responsibilities.--The agreement shall also 
     include a description of the responsibilities of the local 
     partnership (or, where established, local workforce 
     development board described in subsection (b)) for carrying 
     out workforce development activities under this subtitle.
       (C) 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 
     subtitle 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;
       (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; and
       (iv) identifying how the local workforce development board 
     will obtain the active and continuous participation of 
     secondary school teachers, secondary school students involved 


[[Page S 14918]]
     in workforce education activities carried out under this subtitle, and 
     parents of such students, in the development and continuous 
     improvement of the workforce education 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 not more than 50 percent of the funds made 
     available to the State 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 
     subtitle, the board described in section 105 is established 
     in the State.

     SEC. 119. CONSTRUCTION.

       Nothing in this title shall be construed--
       (1) to prohibit a local educational agency (or a consortium 
     thereof) that receives assistance under section 112, from 
     working with an eligible entity (or consortium thereof) that 
     receives assistance under section 113, to carry out secondary 
     school vocational education activities in accordance with 
     this subtitle; or
       (2) to prohibit an eligible entity (or consortium thereof) 
     that receives assistance under section 113, from working with 
     a local educational agency (or consortium thereof) that 
     receives assistance under section 112, to carry out 
     postsecondary and adult vocational education activities in 
     accordance with this subtitle.

                       CHAPTER 3--ADMINISTRATION

     SEC. 121. ACCOUNTABILITY.

       (a) Report.--
       (1) In general.--Each State that receives an allotment 
     under section 102 shall annually prepare and submit to the 
     Federal Partnership, a report that states how the State is 
     performing on State benchmarks specified in this section, 
     which relate to workforce development activities (and 
     workforce preparation activities for at-risk youth) 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.
       (2) Consolidated report.--In lieu of submitting separate 
     reports under paragraph (1) and section 409(a) of the Social 
     Security Act, the State may prepare a consolidated report. 
     Any consolidated report prepared under this paragraph shall 
     contain the information described in paragraph (1) and 
     subsections (a) through (h) of section 409 of the Social 
     Security Act. The State shall submit any consolidated report 
     prepared under this paragraph to the Federal Partnership, the 
     Secretary of Agriculture, and the Secretary of Health and 
     Human Services, on the dates specified in section 409(a) of 
     the Social Security Act.
       (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 (including a benchmark for welfare 
     recipients described in section 3(36)(B));
       (B) individuals with disabilities;
       (C) at-risk youth;
       (D) dislocated workers; and
       (E) veterans.
       (4) Special rule.--If a State has developed for all 
     students in the State 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 served under this title in 
     attaining the skills.
       (5) Negotiations.--
       (A) Initial determination.--On receipt of a State plan 
     submitted under section 104, the Federal Partnership 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 Federal Partnership under section 
     182(b)(2);
       (ii) how the proposed State benchmarks compare with State 
     benchmarks proposed by other States in their State plans; and
       (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 122(a).

       (B) Notification.--The Federal Partnership shall 
     immediately notify the State of the determinations referred 
     to in subparagraph (A). If the Federal Partnership determines 
     that the proposed State benchmarks are not sufficient to make 
     the State eligible for an incentive grant under section 
     122(a), the Federal Partnership 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) Determination.--After reviewing any revised State 
     benchmarks or information submitted by the State in 
     accordance with subparagraph (C), the Federal Partnership 
     shall make a determination on the eligibility of the State 
     for the incentive grant, as described in paragraph (6), and 
     provide advice to the Secretary of Labor and the Secretary of 
     Education. The Secretary of Labor and the Secretary of 
     Education, acting jointly on the advice of the Federal 
     Partnership, may award a grant to the State under section 
     122(a).
       (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 Federal Partnership, shall 
     be eligible to receive an incentive grant under section 
     122(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 
     Federal Partnership, may be subject to sanctions under 
     section 122(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 and occupational information, as 
     designated in section 183(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 

[[Page S 14919]]
     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 and occupational information, as 
     designated in section 183(c)(1)(B).
       (C) Confidentiality.--The State agency or entity within the 
     State responsible for labor market and occupational 
     information, as designated in section 183(c)(1)(B), shall 
     protect the confidentiality of information obtained through 
     the job placement accountability system through the use of 
     recognized security procedures.
       (e) Individual Accountability.--Each State that receives an 
     allotment under section 102 shall devise and implement 
     procedures to provide, in a timely manner, information on 
     participants in activities carried out through the statewide 
     system who are participating as a condition of receiving 
     welfare assistance. The procedures shall require that the 
     State provide the information to the State and local agencies 
     carrying out the programs through which the welfare 
     assistance is provided, in a manner that ensures that the 
     agencies can monitor compliance with the conditions regarding 
     the receipt of the welfare assistance.

     SEC. 122. INCENTIVES AND SANCTIONS.

       (a) Incentives.--
       (1) In general.--The Secretary of Labor and the Secretary 
     of Education, acting jointly on the advice of the Federal 
     Partnership, 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 121(c), with an emphasis on the benchmarks 
     established under section 121(c)(3), in accordance with 
     section 121(c)(6); or
       (B) demonstrates to the Federal Partnership that the State 
     has made substantial reductions in the number of adult 
     recipients of assistance, 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 
     title.
       (b) Sanctions.--
       (1) Failure to demonstrate sufficient progress.--If the 
     Federal Partnership 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 121(c) for the 3 years 
     covered by a State plan described in section 104, the Federal 
     Partnership shall provide advice to the Secretary of Labor 
     and the Secretary of Education. The Secretary of Labor and 
     the Secretary of Education, acting jointly on the advice of 
     the Federal Partnership, 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 Federal 
     Partnership 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 provide 
     advice to the Secretary of Labor and the Secretary of 
     Education. The Secretary of Labor and the Secretary of 
     Education, acting jointly on the advice of the Federal 
     Partnership, may decide to reduce only the portion of the 
     allotment for such activities.
       (2) Expenditure contrary to title.--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 title in a 
     manner contrary to the objectives of this title, 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 Secretary 
     of Labor and the Secretary of Education, acting jointly on 
     the advice of the Federal Partnership, 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. 123. 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)(iii), by striking ``carrying into 
     effect section 4103'' and inserting ``carrying out the 
     activities described in sections 4103, 4103A, 4104, and 
     4104A''; and
       (B) in subparagraph (B), in the matter preceding clause 
     (i), by striking ``Department of Labor'' and inserting 
     ``Department of Labor or the Workforce Development 
     Partnership, as appropriate,''; and
       (2) in the first sentence of paragraph (4), by striking 
     ``the Department of Labor'' and inserting ``the Workforce 
     Development Partnership''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect July 1, 1998.

     SEC. 124. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There are authorized to be appropriated to 
     carry out this title (other than subtitle B) $5,884,000,000 
     (which amount shall include the Federal funds made available 
     to carry out the Wagner-Peyser Act (29 U.S.C. 49 et seq.)) 
     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 
     107;
       (3) 0.2 percent shall be reserved for carrying out section 
     108;
       (4) 4.3 percent shall be reserved for making incentive 
     grants under section 122(a) and for the administration of 
     this title;
       (5) 1.4 percent shall be reserved for carrying out section 
     183; and
       (6) 0.15 percent shall be reserved for carrying out 
     sections 184 and 185 and the National Literacy Act of 1991 
     (20 U.S.C. 1201 note).
       (c) Program Year.--
       (1) In general.--Appropriations for any fiscal year for 
     programs and activities under this title shall be available 
     for obligation only on the basis of a program year. The 
     program year shall begin on July 1 in the fiscal year for 
     which the appropriation is made.
       (2) 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. 125. EFFECTIVE DATE.

       This subtitle shall take effect July 1, 1998.
 Subtitle B--Job Corps and Other Workforce Preparation Activities for 
                             At-Risk Youth

                     CHAPTER 1--GENERAL PROVISIONS

     SEC. 131. 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. 132. DEFINITIONS.

       As used in this subtitle:
       (1) 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;
       (B) is low-income (as defined in section 113(e)); and
       (C) is 1 or more of the following:
       (i) Basic skills deficient.
       (ii) A school dropout.
       (iii) Homeless or a runaway.
       (iv) Pregnant or parenting.
       (v) Involved in the juvenile justice system.
       (vi) An individual who requires additional education, 
     training, or intensive counseling and related assistance, in 
     order to secure and hold employment or participate 
     successfully in regular schoolwork.
       (2) Enrollee.--The term ``enrollee'' means an individual 
     enrolled in the Job Corps.
       (3) Governor.--The term ``Governor'' means the chief 
     executive officer of a State.
       (4) Job corps.--The term ``Job Corps'' means the corps 
     described in section 141.
       (5) Job corps center.--The term ``Job Corps center'' means 
     a center described in section 141.

     SEC. 133. AUTHORITY OF GOVERNOR.

       The duties and powers granted to a State by this subtitle 
     shall be considered to be granted to the Governor of the 
     State.

                          CHAPTER 2--JOB CORPS

     SEC. 141. GENERAL AUTHORITY.

       If a State receives an allotment under section 161, 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 152, 
     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. 142. 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. 

[[Page S 14920]]

       (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.
       (c) Individuals Eligible.--To be eligible to become an 
     enrollee, an individual shall be an at-risk youth.

     SEC. 143. 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. 144. 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 145.
       (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 that 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. 145. 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 
     121(d).

     SEC. 146. 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. 147. OPERATING PLAN.

       To be eligible to operate a Job Corps center and receive 
     assistance under section 161 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. 148. 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. 149. 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. 150. 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 provided, to the maximum extent 
     practicable, through the delivery of core services described 
     in section 106(a)(2).

     SEC. 151. 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. 152. CLOSURE OF JOB CORPS CENTERS.

       (a) National Job Corps Audit.--Not later than March 31, 
     1997, the Federal Partnership 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, 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 National Board.--
       (1) Recommendations.--The National Board shall, based on 
     the results of the audit 

[[Page S 14921]]
     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 National 
     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 National Board may determine to be 
     appropriate.
       (B) Coverage of states and regions.--Notwithstanding 
     subparagraph (A), the National 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 National Board shall not evaluate the center under 
     this title sooner than 3 years after the first date of 
     operation of the center.
       (3)  Report.--Not later than June 30, 1997, the National 
     Board shall submit a report to the Secretary of Labor, which 
     shall contain a detailed statement of the findings and 
     conclusions of the National 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. 153. 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 173 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) of the Workforce Development 
     Act of 1995 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 to be carried out through the 
     statewide system of the State in which the center is 
     located.''.

     SEC. 154. EFFECTIVE DATE.

       (a) In General.--Except as provided in subsection (b), this 
     chapter shall take effect on July 1, 1998.
       (b) Interim Provisions.--Sections 151 and 152, and the 
     amendment made by section 153, shall take effect on the date 
     of enactment of this Act.

  CHAPTER 3--OTHER WORKFORCE PREPARATION ACTIVITIES FOR AT-RISK YOUTH

     SEC. 161. WORKFORCE PREPARATION ACTIVITIES FOR AT-RISK YOUTH.

       (a) In General.--For program year 1998 and each subsequent 
     program year, the Secretary of Labor and the Secretary of 
     Education, acting jointly on the advice of the Federal 
     Partnership, 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 job corps 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 2, 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 152.
       (2) Core work-based learning opportunities.--
       (A) In general.--The State shall use a portion of the funds 
     made available to the State through an allotment received 
     under subsection (c) to make grants to eligible entities in 
     substate areas, in accordance with the procedures described 
     in subsection (e), to assist the substate areas in organizing 
     summer jobs programs that provide work-based learning 
     opportunities in the private and public sectors that are 
     directly linked to year-round school-to-work activities in 
     the substate areas.
       (B) Limitation.--No funds provided under this subtitle 
     shall be used to displace employed workers.
       (3) Permissible activities.--The State may use a portion of 
     the funds described in paragraph (1) to--
       (A) make grants to eligible entities in substate areas, in 
     accordance with the procedures described in subsection (e), 
     to assist each such entity in carrying out alternative 
     programs to assist out-of-school at-risk youth in 
     participating in school-to-work activities in the substate 
     area; and
       (B) carry out other workforce development activities 
     specifically for at-risk youth.
       (4) Laws and procedures applicable to expenditure of state 
     funds.--Any funds received by a State under this subtitle 
     shall be expended only in accordance with the laws and 
     procedures applicable to expenditures of the State's own 
     revenues, subject to the terms and conditions required under 
     this subtitle, particularly this section.
       (c) Allotments and Reservation.--
       (1) In general.--The Secretary of Labor and the Secretary 
     of Education, acting jointly on the advice of the Federal 
     Partnership, 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 (4).
       (2) Allotments based on fiscal year 1996 appropriations.--
     Using a portion of the funds appropriated under subsection 
     (h) for a fiscal year, the Secretary of Labor and the 
     Secretary of Education, acting jointly on the advice of the 
     Federal Partnership, 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 
     152(a)(2).
       (3) Reservation of funds for indians and native 
     hawaiians.--The Secretary of Labor and the Secretary of 
     Education, acting jointly, may reserve a portion of the funds 
     that are appropriated under subsection (h) for a fiscal year, 
     and that are not made available under paragraph (2), to carry 
     out subsection (g).
       (4) 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.
       (B) Total allotments.--The Secretary of Labor and the 
     Secretary of Education, acting jointly on the advice of the 
     Federal Partnership, shall use the remainder of the funds 
     that are appropriated under subsection (h) for a fiscal year, 
     and that are not made available under paragraph (2) or (3), 
     to make amounts available under this paragraph.
       (C) Unemployed individuals.--From funds equal to 33\1/3\ 
     percent of such remainder, the Secretary of Labor and the 
     Secretary of Education, acting jointly on the advice of the 
     Federal Partnership, 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 

[[Page S 14922]]
     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 Secretary of Labor and the 
     Secretary of Education, acting jointly on the advice of the 
     Federal Partnership, 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 Secretary of Labor and the Secretary of 
     Education, acting jointly on the advice of the Federal 
     Partnership, 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) will be carried out to 
     meet the State goals and reach the State benchmarks.
       (2) Limitation.--A State may not be required 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 
     paragraph (2) or (3)(A) of subsection (b) from a State to 
     carry out programs in a substate area, an entity shall 
     prepare and submit an application to the Governor of the 
     State at such time, in such manner, and containing such 
     information as the Governor may require. The Governor may 
     establish criteria for reviewing such applications. Any such 
     criteria shall, at a minimum, include the extent to which the 
     local partnership (or, where established, the local workforce 
     development board described in section 118(b)) for the 
     substate area approves of such application.
       (f) Within State Distribution.--Of the funds allotted to a 
     State under subsection (c)(4) 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) Financial Assistance for Indians and Native 
     Hawaiians.--The Secretary of Labor and the Secretary of 
     Education, acting jointly, may use the funds reserved under 
     subsection (c)(3), if any, to make grants to, or enter into 
     contracts or cooperative agreements with, the entities 
     described in section 107(c)(1) to carry out workforce 
     preparation activities for at-risk youth who are Indians (as 
     defined in section 107(b)(2)) or Native Hawaiians (as defined 
     in section 107(b)(4)). To be eligible to receive such a 
     grant, or enter into such a contract or cooperative 
     agreement, such an entity shall submit to the Federal 
     Partnership an application at such time, in such manner, and 
     containing such information as the Federal Partnership may 
     require.
       (h) 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.
       (i) Effective Date.--This chapter shall take effect on July 
     1, 1998.
                   Subtitle C--Transition Provisions

     SEC. 171. 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, or workforce preparation activities for at-risk 
     youth, 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 173 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 173 by June 30, 1997, the waiver shall be 
     deemed to terminate on September 30, 1997.
       (b) State Request for Waiver.--
       (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 173 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 

[[Page S 14923]]
     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; and
       (B) the Secretary of Education, with respect to any act 
     relating to a covered activity carried out by the Secretary 
     of Education.
       (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.''.

     SEC. 172. FLEXIBILITY DEMONSTRATION PROGRAM.

       (a) Definition.--As used in this section:
       (1) Eligible state.--The term ``eligible State'' means a 
     State that--
       (A)(i) has submitted an interim State plan under section 
     173;
       (ii) has an executed memorandum of understanding with the 
     Federal Government; or
       (iii) is a designated ``Ed-Flex Partnership State'' under 
     section 311(e) of the Goals 2000: Educate America Act (20 
     U.S.C. 5891(e)); and
       (B) waives State statutory or regulatory requirements 
     relating to workforce development activities while holding 
     local entities within the State that are effected by such 
     waivers accountable for the performance of the participants 
     who are affected by such waivers.
       (2) Local entity; secretary; state.--The terms ``local 
     entity'', ``Secretary'', and ``State'' have the meanings 
     given the terms in section 171(h).
       (b) Demonstration Program.--
       (1) Establishment.--In addition to providing for the 
     waivers described in section 171(a), the Secretary shall 
     establish a workforce flexibility demonstration program under 
     which the Secretary shall permit not more than 6 eligible 
     States (or local entities within such States) to waive any 
     statutory or regulatory requirement applicable to any covered 
     activity described in section 171(a), other than the 
     requirements described in section 171(d).
       (2) Selection of participant states.--In carrying out the 
     program under paragraph (1), the Secretary shall select for 
     participation in the program 3 eligible States that each have 
     a population of not less than 3,500,000 individuals and 3 
     eligible States that each have a population of not more than 
     3,500,000 individuals, as determined in accordance with the 
     most recent decennial census of the population as provided by 
     the Bureau of the Census.
       (3) Application.--
       (A) Submission.--To be eligible to participate in the 
     program established under paragraph (1), a State shall 
     prepare and submit an application, in accordance with section 
     171(b)(2), that includes--
       (i) a description of the process the eligible State will 
     use to evaluate applications from local entities requesting 
     waivers of--

       (I) Federal statutory or regulatory requirements described 
     in section 171(a); and
       (II) State statutory or regulatory requirements relating to 
     workforce development activities; and

       (ii) a detailed description of the State statutory or 
     regulatory requirements relating to workforce development 
     activities that the State will waive.
       (B) Approval.--The Secretary may approve an application 
     submitted under subparagraph (A) if the Secretary determines 
     that such application demonstrates substantial promise of 
     assisting the State and local entities within such State in 
     carrying out comprehensive reform of workforce development 
     activities and in otherwise meeting the purposes of this Act.
       (C) Local entity applications.--A State participating in 
     the program established under paragraph (1) shall not approve 
     an application by a local entity for a waiver under this 
     subsection unless the State determines that such waiver will 
     assist the local entity in reaching the goals of the local 
     entity.
       (4) Monitoring.--A State participating in the program 
     established under paragraph (1) shall annually monitor the 
     activities of local entities receiving waivers under this 
     subsection and shall submit an annual report regarding such 
     monitoring to the Secretary. The Secretary shall periodically 
     review the performance of such States and shall terminate the 
     waiver of a State under this subsection if the Secretary 
     determines, after notice and opportunity for a hearing, that 
     the performance of such State has been inadequate to a level 
     that justifies discontinuation of such authority.
       (5) Reference.--Each eligible State participating in the 
     program established under paragraph (1) shall be referred to 
     as a ``Work-Flex Partnership State''.

     SEC. 173. INTERIM STATE PLANS.

       (a) In General.--For a State or local entity in a State to 
     use a waiver received under section 171 or 172 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 Federal Partnership. 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 
     Secretary of Labor and the Secretary of Education, acting 
     jointly on the advice of the Federal Partnership, 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 171 or 172 to carry out the plan; or
       (B)(i) disapprove the plan and provide to the State reasons 
     for the disapproval; and
       (ii) direct the Federal Partnership to provide technical 
     assistance to the State 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 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 171 or 172 through June 30, 1998.

     SEC. 174. 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 Labor 
     or the Secretary of Education, as appropriate, shall consider 
     the last application or plan, as appropriate, submitted by 
     the entity for funding of the covered activity.

     SEC. 175. INTERIM 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 

[[Page S 14924]]
     the Secretary of Labor or the Secretary of Education shall be 
     considered to grant the authority to the Federal Partnership.
       (b) Effective Date.--Subsection (a) shall take effect on 
     October 1, 1996.

     SEC. 176. INTERIM AUTHORIZATIONS OF APPROPRIATIONS.

       (a) Carl D. Perkins Vocational and Applied Technology 
     Education Act.--
       (1) 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''.
       (2) 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''.
       (b) Adult Education Act.--
       (1) 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''.
       (2) 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 and 1995''.
       (3) 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''.
       (4) 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 1995''.
                    Subtitle D--National Activities

     SEC. 181. FEDERAL PARTNERSHIP.

       (a) Establishment.--There is established in the Department 
     of Labor and the Department of Education a Workforce 
     Development Partnership, under the joint control of the 
     Secretary of Labor and the Secretary of Education.
       (b) Administration.--Notwithstanding the Department of 
     Education Organization Act (20 U.S.C. 3401 et seq.), the 
     General Education Provisions Act (20 U.S.C. 1221 et seq.), 
     the Act entitled ``An Act To Create a Department of Labor'', 
     approved March 4, 1913 (29 U.S.C. 551 et seq.), and section 
     169 of the Job Training Partnership Act (29 U.S.C. 1579), the 
     Secretary of Labor and the Secretary of Education, acting 
     jointly, in accordance with the plan approved or 
     determinations made by the President under section 186(c), 
     shall provide for, and exercise final authority over, the 
     effective and efficient administration of this title, the Act 
     amended by subtitle B of title II, the provisions amended by 
     sections 241 and 242, and the officers and employees of the 
     Federal Partnership.
       (c) Responsibilities of Secretary of Labor and Secretary of 
     Education.--The Secretary of Labor and the Secretary of 
     Education, working jointly through the Federal Partnership, 
     shall--
       (1) approve applications and plans under sections 104, 107, 
     108, and 173;
       (2) award financial assistance under sections 102, 107, 
     108, 122(a), 161, and 184;
       (3) approve State benchmarks in accordance with section 
     121(c); and
       (4) apply sanctions described in section 122(b).
       (d) Workplans.--The Secretary of Labor and the Secretary of 
     Education, acting jointly, shall prepare and submit the 
     workplans described in sections 186(c) and 187(b).
       (e) Information and Technical Assistance 
     Responsibilities.--The Secretary of Labor and the Secretary 
     of Education, acting jointly, shall, in appropriate cases, 
     disseminate information and provide technical assistance to 
     States on the best practices for establishing and carrying 
     out activities through statewide systems, including model 
     programs to provide structured work and learning experiences 
     for welfare recipients.

     SEC. 182. NATIONAL WORKFORCE DEVELOPMENT BOARD AND PERSONNEL.

       (a) National Board.--
       (1) Composition.--The Federal Partnership shall be directed 
     by a National 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 National 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 National Board 
     shall serve for a term of 2 years;
       (B) 4 of the members first appointed to the National Board 
     shall serve for a term of 3 years; and
       (C) 4 of the members first appointed to the National Board 
     shall serve for a term of 4 years.
       (3) Vacancies.--Any vacancy in the National Board shall not 
     affect the powers of the National 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 of the national board.--
       (A) Oversight.--Subject to section 181(b), the National 
     Board shall oversee all activities of the Federal 
     Partnership.
       (B) Recommendations about implementation.--If the Secretary 
     of Labor and the Secretary of Education fail to reach 
     agreement with respect to the implementation of their duties 
     and responsibilities under this Act and the amendments made 
     by this Act, the National Board shall review the issues about 
     which disagreement exists and make a recommendation to the 
     President regarding a solution to the disagreement.
       (5) Chairperson.--The position of Chairperson of the 
     National Board shall rotate annually among the appointed 
     members described in paragraph (1)(A).
       (6) Meetings.--The National Board shall meet at the call of 
     the Chairperson but not less often than 4 times during each 
     calendar year. Seven members of the National Board shall 
     constitute a quorum. All decisions of the National Board with 
     respect to the exercise of the duties and powers of the 
     National Board shall be made by a majority vote of the 
     members of the National Board.
       (7) Compensation and travel expenses.--
       (A) Compensation.--In accordance with the plan approved or 
     the determinations made by the President under section 
     186(c), each member of the National Board 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 National Board.
       (B) Expenses.--While away from their homes or regular 
     places of business on the business of the National Board, 
     members of such National Board shall be allowed travel 
     expenses, including per diem in lieu of subsistence, at rates 
     authorized for employees of agencies under subchapter I of 
     chapter 57 of title 5, United States Code, for persons 
     employed intermittently in the Government service.
       (8) Date of appointment.--The National Board shall be 
     appointed not later than 120 days after the date of enactment 
     of this Act.
       (b) Duties and Powers of the Federal Partnership.--The 
     Federal Partnership shall--
       (1) oversee the development, maintenance, and continuous 
     improvement of the nationwide integrated labor market and 
     occupational information system described in section 183, and 
     the relationship between such system and the job placement 
     accountability system described in section 121(d);
       (2) establish model benchmarks for each of the benchmarks 
     referred to in paragraph (1), (2), or (3) of section 121(c), 
     at achievable levels based on existing (as of the date of the 
     establishment of the benchmarks) workforce development 
     efforts in the States;
       (3) negotiate State benchmarks with States in accordance 
     with section 121(c);
       (4) provide advice to the Secretary of Labor and the 
     Secretary of Education regarding the review and approval of 
     applications and plans described in section 181(c)(1) and the 
     approval of financial assistance described in section 
     181(c)(2);
       (5) receive and review reports described in section 121(a);
       (6) 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;
       (7) provide advice to the Secretary of Labor and the 
     Secretary of Education regarding applying sanctions described 
     in section 122(b);
       (8) review all federally funded programs providing 
     workforce development activities or workforce preparation 
     activities for at-risk youth, other than programs carried out 
     under this title, 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;
       (9) prepare an annual plan for the nationwide integrated 
     labor market and occupational information system, as 
     described in section 183(b)(2); and
       (10) perform the duties specified for the Federal 
     Partnership in this Act and the amendments made by this Act.
       (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 make recommendations to the 
     National Board regarding the activities described in 
     subsection (b).

[[Page S 14925]]

       (4) Date of appointment.--The Director shall be appointed 
     not later than 120 days after the date of enactment of this 
     Act.
       (d) Personnel.--
       (1) Appointments.--The Director may appoint and fix the 
     compensation of such officers and employees 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 places 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.
       (3) 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 and the Secretary of Labor shall detail a 
     sufficient number of employees to the Federal Partnership for 
     the period beginning October 1, 1996 and ending June 30, 1998 
     to carry out the functions of the Federal Partnership during 
     such period.
       (4) Use of voluntary and uncompensated services.--
     Notwithstanding section 1342 of title 31, United States Code, 
     the Secretary of Labor and the Secretary of Education are 
     authorized to accept voluntary and uncompensated services in 
     furtherance of the purposes of this Act.
       (e) Authorization of Appropriations.--There is authorized 
     to be appropriated for fiscal years 1996 and 1997 $500,000 to 
     the National Board for the administration of the duties and 
     responsibilities of the Federal Partnership under this title.

     SEC. 183. LABOR MARKET AND OCCUPATIONAL INFORMATION.

       (a) Federal Responsibilities.--The Federal Partnership, in 
     accordance with the provisions of this section, shall oversee 
     the development, maintenance, and continuous improvement of a 
     nationwide integrated labor market and occupational 
     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 demographics, 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 and occupational 
     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 121(c);
       (iii) quality control mechanisms for the collection and 
     analysis of labor market and occupational information; and
       (iv) common schedules for collection and dissemination of 
     labor market and occupational 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 and occupational dynamics;
       (5) dissemination mechanisms for data and analysis, 
     including mechanisms that may be standardized among the 
     States; and
       (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 and 
     occupational 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 title.
       (2) Annual plan.--The Federal Partnership 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 and occupational information system. 
     The plan shall--
       (A) establish goals for the development and improvement of 
     a nationwide integrated labor market and occupational 
     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 and occupational information system;
       (D) describe the current spending on integrated labor 
     market and occupational 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 and occupational 
     information system;
       (E) develop a budget for the nationwide integrated labor 
     market and occupational information system that--
       (i) accounts for all funds described in subparagraph (D) 
     and any new funds made available pursuant to this title; 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 
     Federal Partnership; and
       (G) provide for technical assistance to the States for the 
     development of statewide comprehensive labor market and 
     occupational 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 

[[Page S 14926]]
     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 title, the Governor 
     of a State shall--
       (A) establish an interagency process for the oversight of a 
     statewide comprehensive labor market and occupational 
     information system and for the participation of the State in 
     the cooperative Federal-State governance structure for the 
     nationwide integrated labor market and occupational 
     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 and occupational information 
     system.
       (2) Duties.--In order to receive Federal financial 
     assistance under this title, 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 
     and occupational information system;
       (B) develop, maintain, and continuously improve the 
     statewide comprehensive labor market and occupational 
     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 and occupational information system;
       (D) conduct such other data collection, analysis, and 
     dissemination activities to ensure that State and substate 
     area labor market and occupational 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 121(d)(2)(A) are made for 
     the State and for other States.
       (3) Rule of construction.--Nothing in this title 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 title.
       (d) Effective Date.--This section shall take effect on July 
     1, 1998.

     SEC. 184. NATIONAL CENTER FOR RESEARCH IN EDUCATION AND 
                   WORKFORCE DEVELOPMENT.

       (a) Grants Authorized.--From amounts made available under 
     section 124(b)(6), the Secretary of Labor and the Secretary 
     of Education, acting jointly on the advice of the Federal 
     Partnership, are authorized 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)--
       (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) developing model programs for the transition of members 
     of the Armed Forces from military service to civilian 
     employment;
       (J) conducting preparation of teachers, counselors, 
     administrators, other professionals, and volunteers, who work 
     with programs funded under this title; and
       (K) 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 title 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 title, which data and information 
     shall be disseminated in a form that is useful to 
     practitioners and policymakers.
       (c) Other Activities.--The Federal Partnership may request 
     that the national center assisted under subsection (a) 
     conduct activities not described in subsection (b), or study 
     topics not described in subsection (b), as the Federal 
     Partnership determines to be necessary to carry out this 
     title.
       (d) Identification of Current Needs.--The national center 
     assisted under subsection (a) 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) shall annually prepare and submit to the 
     Federal Partnership and the Committee on Economic and 
     Educational Opportunities of the House of Representatives and 
     the Committee on Labor and Human Resources of the Senate a 
     report summarizing the research findings obtained, and the 
     results of development and technical assistance activities 
     carried out, under this section.
       (f) Transition Period.--Notwithstanding any other provision 
     of law, the Secretary of Labor and the Secretary of 
     Education, acting jointly on the advice of the Federal 
     Partnership, may use funds made available under section 404 
     of the Carl D. Perkins Vocational and Applied Technology 
     Education Act (20 U.S.C. 2404) to prepare, during the period 
     beginning on January 1, 1998, and ending June 30, 1998, to 
     award a grant under subsection (a) on July 1, 1998.
       (g) 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)).
       (h) Conforming Amendments.--Section 404(a)(2) of the Carl 
     D. Perkins Vocational and Applied Technology Education Act 
     (20 U.S.C. 2404(a)(2)) is amended--
       (1) in subparagraph (A), by striking ``for a period of 5 
     years'' and inserting ``until June 30, 1998''; and
       (2) in the first sentence of subparagraph (B), by striking 
     ``5''.
       (i) Effective Date.--
       (1) In general.--Except as provided in paragraphs (2) and 
     (3), this section shall take effect on July 1, 1998.
       (2) Transition provisions.--Subsection (f) shall take 
     effect on January 1, 1998.
       (3) Amendments.--The amendments made by subsection (h) 
     shall take effect on the date of enactment of this Act.

     SEC. 185. NATIONAL ASSESSMENT OF VOCATIONAL EDUCATION 
                   PROGRAMS.

       (a) In General.--The Secretary of Education (referred to in 
     this section as the ``Secretary'') shall conduct a national 
     assessment of vocational education programs assisted under 
     this title, through studies and analyses conducted 
     independently through competitive awards.
       (b) Independent Advisory Panel.--The Secretary shall 
     appoint an independent advisory panel, consisting of 
     vocational education administrators, educators, researchers, 
     and representatives of business, industry, labor, career 
     guidance and counseling professionals, and other relevant 
     groups, to advise the Secretary on the implementation of such 
     assessment, including the issues to be addressed and the 
     methodology of the studies involved, and the findings and 
     recommendations resulting from the assessment. The panel, in 
     the discretion of the panel, may submit to the Committee on 
     Economic and Educational Opportunities of the House of 
     Representatives, the Committee on Labor and Human Resources 
     of the Senate, and the Federal Partnership 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 title on State and tribal 
     administration of vocational education programs and on local 
     vocational education practices, including the capacity of 
     State, tribal, and local vocational education systems to 
     address the purposes of this title;
       (2) expenditures at the Federal, State, tribal, and local 
     levels to address program improvement in vocational 
     education, including the impact of Federal allocation 
     requirements (such as within-State distribution formulas) on 
     the delivery of services;
       (3) preparation and qualifications of teachers of 
     vocational and academic curricula in 

[[Page S 14927]]
     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 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 shall submit to the Committee 
     on Economic and Educational Opportunities of the House of 
     Representatives, the Committee on Labor and Human Resources 
     of the Senate, and the Federal Partnership--
       (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 Department 
     of Education before their transmittal to the Committee on 
     Economic and Educational Opportunities of the House of 
     Representatives, the Committee on Labor and Human Resources 
     of the Senate, and the Federal Partnership, but the 
     President, the Secretary, the Federal Partnership, and the 
     independent advisory panel established under subsection (b) 
     may make such additional recommendations to Congress with 
     respect to the assessment as the President, the Secretary, 
     the Federal Partnership, or the panel determine to be 
     appropriate.
       (e) Effective Date.--This section shall take effect on July 
     1, 1998.

     SEC. 186. 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.--There are transferred to the 
     appropriate Secretary in 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.
       (c) Transition Workplan.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary of Labor and the 
     Secretary of Education shall prepare and submit to the 
     National Board a proposed workplan as described in paragraph 
     (2). The Secretary of Labor and the Secretary of Education 
     shall also submit the plan to the President, the Committee on 
     Economic and Educational Opportunities of the House of 
     Representatives, and the Committee on Labor and Human 
     Resources of the Senate for review and comment.
       (2) Contents.--The proposed workplan shall include, at a 
     minimum--
       (A) 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;
       (B) information on the levels of personnel and funding used 
     to carry out the functions (as of such date);
       (C) a determination of the functions described in 
     subparagraph (A) that are minimally necessary to carry out 
     the functions of the Federal Partnership;
       (D) information on the levels of personnel and other 
     resources that are minimally necessary to carry out the 
     functions of the Federal Partnership;
       (E) a determination of the manner in which the Secretary of 
     Labor and the Secretary of Education will provide personnel 
     and other resources of the Department of Labor and the 
     Department of Education for the Federal Partnership;
       (F) a determination of the appropriate Secretary to receive 
     the personnel, resources, and related items to be transferred 
     under this section, based on factors including increased 
     efficiency and elimination of duplication of functions;
       (G) a determination of the proposed organizational 
     structure for the Federal Partnership; and
       (H) a determination of the manner in which the Secretary of 
     Labor and the Secretary of Education, acting jointly through 
     the Federal Partnership, will carry out their duties and 
     responsibilities under this Act and the amendments made by 
     this Act.
       (3) Review by national board.--
       (A) In general.--Not later than 45 days after the date of 
     submission of the proposed workplan under paragraph (1), the 
     National Board shall--
       (i) review and concur with the workplan; or
       (ii) reject the workplan and prepare and submit to the 
     President a revised workplan that contains the analysis, 
     information, and determinations described in paragraph (2).
       (B) Functions transferred.--If the National Board concurs 
     with the proposed workplan, the functions described in 
     paragraph (2)(C), as determined in the workplan, shall be 
     transferred under subsection (b).
       (4) Review by the president.--
       (A) In general.--Not later than 30 days after the date of 
     submission of a revised workplan under paragraph (3)(A)(ii), 
     the President shall--
       (i) review and approve the workplan; or
       (ii) reject the workplan and prepare an alternative 
     workplan that contains the analysis, information, and 
     determinations described in paragraph (2).
       (B) Functions transferred.--If the President approves the 
     revised workplan, or prepares the alternative workplan, the 
     functions described in paragraph (2)(C), as determined in 
     such revised or alternative workplan, shall be transferred 
     under subsection (b).
       (C) Special rule.--If the President takes no action on the 
     revised workplan submitted under paragraph (3)(A)(ii) within 
     the 30-day period described in subparagraph (A), the 
     Secretary of Labor, the Secretary of Education, and the 
     National Board may attempt to reach agreement on a compromise 
     workplan. If the Secretary of Labor, the Secretary of 
     Education, and the National Board reach such agreement, the 
     functions described in paragraph (2)(C), as determined in 
     such compromise workplan, shall be transferred under 
     subsection (b). If, after an additional 15-day period, the 
     Secretary of Labor, the Secretary of Education and the 
     National Board are unable to reach such agreement, the 
     revised workplan shall be deemed to be approved and shall 
     take effect on the day after the end of such period. The 
     functions described in paragraph (2)(C), as determined in the 
     revised workplan, shall be transferred under subsection (b).
       (5) Determination by president.--
       (A) In general.--In the event that the Secretary of Labor 
     and the Secretary of Education fail to reach agreement 
     regarding, and submit, a proposed workplan described in 
     paragraph (2), the President shall make the determinations 
     described in paragraph (2)(C). The President shall delegate 
     full responsibility for administration described in section 
     181(b) to 1 of the 2 Secretaries. Such Secretary shall be 
     considered to be the appropriate Secretary for purposes of 
     such administration and shall have authority to carry out any 
     function that the Secretaries would otherwise be authorized 
     to carry out jointly.
       (B) Transfers.--The functions described in paragraph 
     (2)(C), as determined by the President under subparagraph 
     (A), shall be transferred under subsection (b). All positions 
     of personnel that relate to a covered activity and that, 
     prior to the transfer, were within the department headed by 
     the other of the 2 Secretaries shall be separated from 
     service as provided in subsection (i)(2)(A).
       (d) Delegation and Assignment.--Except where otherwise 
     expressly prohibited by law or otherwise provided by this 
     section, the National Board may delegate any function 
     transferred or granted to the Federal Partnership after the 
     effective date of this section to such officers and employees 
     of the Federal Partnership as the National Board may 
     designate, and may authorize successive redelegations of such 
     functions as may be necessary or appropriate. No delegation 
     of functions by the National Board under this subsection or 
     under any other provision of this section shall relieve such 
     National Board of responsibility for the administration of 
     such functions.
       (e) Reorganization.--The National Board may allocate or 
     reallocate any function transferred or granted to the 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.
       (f) Rules.--The Secretary of Labor and the Secretary of 
     Education, acting jointly on the advice of the Federal 
     Partnership, may prescribe, in accordance with the provisions 
     of chapters 5 and 6 of title 5, United States Code, such 
     rules and regulations as the Secretary of Labor and the 
     Secretary of Education, acting jointly on the advice of the 
     Federal Partnership, determine to be necessary or appropriate 
     to administer and manage the functions of the Federal 
     Partnership.
       (g) Transfer and Allocations of Appropriations and 
     Personnel.--

[[Page S 14928]]

       (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 appropriate Secretary in 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 
     Federal Partnership. None of the funds made available under 
     this title may be used for the construction of office 
     facilities for the Federal Partnership.
       (h) 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.
       (i) 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) 
     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.
       (j) 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.
       (k) Transition.--The National Board may utilize--
       (1) the services of officers, employees, and other 
     personnel of the Department of Labor or the Department of 
     Education, other than personnel of the Federal Partnership, 
     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.
       (l) 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 Federal Partnership; 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.
       (m) 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 Federal Partnership 
     shall prepare and submit to Congress recommended legislation 
     containing technical and conforming amendments to reflect the 
     changes made by this section.
       (2) Submission to congress.--Not later than March 31, 1997, 
     the Federal Partnership shall submit the recommended 
     legislation referred to in paragraph (1).
       (n) 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 (f) 
     and (m) shall take effect on September 30, 1996.
       (3) Workplan.--Subsection (c) shall take effect on the date 
     of enactment of this Act.

     SEC. 187. 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.--Not later than 180 days after the 
     date of enactment of this Act, the Secretary of Labor and the 
     Secretary of Education shall prepare and submit to the 
     President 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).
       (2) Contents.--The proposed workplan shall include, at a 
     minimum--
       (A) 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
       (B) a determination of the appropriate receiving agencies 
     for the functions, based on factors including increased 
     efficiency and elimination of duplication of functions.
       (3) Review.--
       (A) In general.--Not later than 45 days after the date of 
     submission of the proposed workplan under paragraph (1), the 
     President shall--
       (i) review and approve the workplan and submit the workplan 
     to the Committee on Economic and Educational Opportunities of 
     the House of Representatives and the Committee on Labor and 
     Human Resources of the Senate; or
       (ii) reject the workplan, prepare an alternative workplan 
     that contains the determinations described in paragraph (2), 
     and submit the alternative workplan to the Committee on 
     Economic and Educational Opportunities of the House of 
     Representatives and the Committee on Labor and Human 
     Resources of the Senate.
       (B) Functions transferred.--If the President approves the 
     proposed workplan, or prepares the alternative workplan, the 
     functions described in paragraph (2)(A), as determined in 
     such proposed or alternative workplan, shall be transferred 
     under subsection (a) to the appropriate receiving agencies 
     described in paragraph (2)(B), as determined in such proposed 
     or alternative workplan.
       (C) Special rule.--If the President takes no action on the 
     proposed workplan submitted under paragraph (1) within the 
     45-day period described in subparagraph (A), such workplan 
     shall be deemed to be approved and shall take effect on the 
     day after the end of such period. The functions described in 
     paragraph (2)(A), as determined in the proposed workplan, 
     shall be transferred under subsection (a) to the appropriate 
     receiving agencies described in paragraph (2)(B), as 
     determined in the proposed workplan.
       (4) Report.--Not later than July 1, 1998, the Secretary of 
     Labor and the Secretary of Education 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 (m), of section 186 (other than subsections (f), 
     (g)(2), (i)(2), and (m)) shall apply to transfers under this 
     section, in the same manner and to the same extent as the 
     subsections apply to transfers under section 186.
       (B) Regulations and conforming amendments.--Subsections (f) 
     and (m) of section 186 shall apply to transfers under this 
     section, in the same manner and to the same extent as the 
     subsections apply to transfers under section 186.
       (2) References.--For purposes of the application of the 
     subsections described in paragraph (1) (other than 
     subsections (g)(2) and (i)(2) of section 186) 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 alternative workplan referred 
     to in subsection (b)(3);
       (B) references to the Secretary of Labor and the Secretary 
     of Education, the Director, or the National Board shall be 
     deemed to be references to the head of the appropriate 
     receiving agency; and
       (C) references to transfers in section 186 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--

[[Page S 14929]]

       (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)(2)(A) to the Federal Partnership.
       (e) 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.--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. 188. 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).
       (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 187, 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.
Subtitle E--Repeals of Employment and Training and Vocational and Adult 
                           Education Programs

     SEC. 191. 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) 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)).
       (2) The Adult Education Act (20 U.S.C. 1201 et seq.).
       (3) The Carl D. Perkins Vocational and Applied Technology 
     Education Act (20 U.S.C. 2301 et seq.).
       (4) The School-to-Work Opportunities Act of 1994 (20 U.S.C. 
     6101 et seq.).
       (5) The Job Training Partnership Act (29 U.S.C. 1501 et 
     seq.).
       (6) 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. 192. 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--

[[Page S 14930]]

       (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) Trade act of 1974.--
       (A) Section 6(e)(3) of the Food Stamp Act of 1977 (7 U.S.C. 
     2015(e)(3)) is amended--
       (i) in subparagraph (B), by striking the semicolon and 
     inserting ``; or'';
       (ii) by striking subparagraph (C); and
       (iii) by redesignating subparagraph (D) as subparagraph 
     (C).
       (B) Section 225(a) of the Trade Act of 1974 (19 U.S.C. 
     2275(a)) is amended by striking ``section 236'' and inserting 
     ``the Workforce Development Act of 1995''.
       (C) Section 231 of such Act (19 U.S.C. 2291) is amended--
       (i) in subparagraphs (A) and (B) of subsection (a)(5), by 
     striking ``a training program approved by the Secretary under 
     section 236(a)'' and inserting ``a training program carried 
     out under the Workforce Development Act of 1995'';
       (ii) in subsection (b)(1), in the matter following 
     subparagraph (B), by striking ``a training program approved 
     under section 236(a)'' and inserting ``a training program 
     carried out under the Workforce Development Act of 1995''; 
     and
       (iii) in subsection (c)--

       (I) by striking paragraph (1) and inserting the following:

       ``(1) If a State or State agency has an agreement with the 
     Secretary under section 239 and the State or State agency 
     finds that it is not feasible or appropriate to enroll a 
     worker in a training program under the Workforce Development 
     Act of 1995, the State or State agency shall--
       ``(A) submit to such worker a written statement certifying 
     such finding, and
       ``(B) submit to the Secretary a written statement 
     certifying such finding and the reasons for such finding.''; 
     and

       (II) in paragraph (2)--

       (aa) by striking ``(2)'' and all that follows through ``(B) 
     If'' and inserting ``(2) If'';
       (bb) by striking ``(1)(B)'' each place it appears and 
     inserting ``(1)''; and
       (cc) by striking ``to approve a training program for such 
     worker pursuant to the requirements of section 236(a)'' and 
     inserting ``to enroll the worker in a training program 
     carried out under the Workforce Development Act of 1995''.
       (D) Section 233 of such Act (19 U.S.C. 2293) is amended--
       (i) in subsection (a)(3), by striking ``training approved 
     from him under section 236'' and inserting ``training carried 
     out under the Workforce Development Act of 1995'';
       (ii) in subsection (b), by striking ``a training program 
     approved by the Secretary under section 236'' and inserting 
     ``a training program carried out under the Workforce 
     Development Act of 1995''; and
       (iii) in subsection (f)(1), by striking ``a training 
     program approved under section 236(a)'' and inserting ``a 
     training program carried out under the Workforce Development 
     Act of 1995''.
       (E) Section 237(a) of such Act (19 U.S.C. 2297(a)) is 
     amended by striking ``; except that'' and all that follows 
     and inserting ``, except that such reimbursement may not 
     exceed $800 for any worker.''.
       (F) Section 238(d)(1) of such Act (19 U.S.C. 2298(d)(1)) is 
     amended by striking ``(including, but not limited to, 
     subsistence and transportation expenses at levels not 
     exceeding those allowable under section 236(b) (1) and 
     (2))''.
       (G) Section 239 of such Act (19 U.S.C. 2311) is amended--
       (i) in subsection (e)--

       (I) in the first sentence, by striking ``under sections 235 
     and 236 of this Act and''; and
       (II) in the second sentence, by striking ``Any agency'' and 
     all that follows through ``agreement'' and inserting ``Any 
     State agency carrying out workforce employment activities 
     under the Workforce Development Act of 1995''; and

       (ii) in subsection (f)--

       (I) in paragraph (3), by striking ``section 236(a)'' and 
     inserting ``the Workforce Development Act of 1995''; and
       (II) in paragraph (4), by striking ``section 236'' and 
     inserting ``the Workforce Development Act of 1995''.

       (H) Section 250(d) of such Act (19 U.S.C. 2331(d)) is 
     amended--
       (i) in paragraph (3)(B), by striking ``a training program 
     approved by the Secretary under section 236(a)'' and 
     inserting ``a training program carried out under the 
     Workforce Development Act of 1995''; and
       (ii) by redesignating paragraphs (3), (4), and (5) as 
     paragraphs (1), (2), and (3), respectively.
       (I) Section 1425(b)(2) of the Omnibus Trade and 
     Competitiveness Act of 1988 (19 U.S.C. 2293 note) is 
     amended--
       (i) in subparagraph (A)(i), by striking ``a training 
     program approved by the Secretary under section 236(a) of 
     such Act'' and inserting ``a training program carried out 
     under the Workforce Development Act of 1995''; and
       (ii) in subparagraph (B), in the matter following clause 
     (ii), by striking ``a training program approved under section 
     236(a) of such Act'' and inserting ``a training program 
     carried out under the Workforce Development Act of 1995.''.
       (2) References to the adult education act.--
       (A) Subsection (b) of section 402 of the Refugee Education 
     Assistance Act (8 U.S.C. 1522 note) is repealed.
       (B) Paragraph (20) of section 3 of the Library Services and 
     Construction Act (20 U.S.C. 351a(20)) is amended to read as 
     follows:
       ``(20) The term `educationally disadvantaged adult' means 
     an individual who--
       ``(A) is age 16 or older, or beyond the age of compulsory 
     school attendance under State law;
       ``(B) is not enrolled in secondary school;
       ``(C) demonstrates basic skills equivalent to or below that 
     of students at the fifth grade level; or
       ``(D) has been placed in the lowest or beginning level of 
     an adult education program when that program does not use 
     grade level equivalencies as a measure of students' basic 
     skills.''.
       (C)(i) Section 1202(c)(1) of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 6362(c)(1)) is amended by 
     striking ``Adult Education Act'' and inserting ``Workforce 
     Development Act of 1995''.
       (ii) Section 1205(8)(B) of such Act (20 U.S.C. 6365(8)(B)) 
     is amended by striking ``Adult Education Act'' and inserting 
     ``Workforce Development Act of 1995''.
       (iii) Section 1206(a)(1)(A) of such Act (20 U.S.C. 
     6366(a)(1)(A)) is amended by striking ``an adult basic 
     education program under the Adult Education Act'' and 
     inserting ``adult education activities under the Workforce 
     Development Act of 1995''.
       (iv) Section 3113(1) of such Act (20 U.S.C. 6813(1)) is 
     amended by striking ``section 312 of the Adult Education 
     Act'' and inserting ``section 3 of the Workforce Development 
     Act of 1995''.
       (v) Section 9161(2) of such Act (20 U.S.C. 7881(2)) is 
     amended by striking ``section 312(2) of the Adult Education 
     Act'' and inserting ``section 3 of the Workforce Development 
     Act of 1995''.
       (D) Section 203(b)(8) of the Older Americans Act (42 U.S.C. 
     3013(b)(8)) is amended by striking ``Adult Education Act'' 
     and inserting ``Workforce Development Act of 1995''.
       (3) References to the carl d. perkins vocational and 
     applied technology education act.--
       (A) Section 245A(h)(4)(C) of the Immigration and 
     Nationality Act (8 U.S.C. 1255a(h)(4)(C)) is amended by 
     striking ``Vocational Education Act of 1963'' and inserting 
     ``Workforce Development Act of 1995''.
       (B) Section 4461 of the National Defense Authorization Act 
     for Fiscal Year 1993 (10 U.S.C. 1143 note) is amended--
       (i) by striking paragraph (4); and
       (ii) by redesignating paragraphs (5) and (6) as paragraphs 
     (4) and (5), respectively.
       (C) Section 626(g) of the Individuals with Disabilities 
     Education Act (20 U.S.C. 1425(g)) is amended--
       (i) by striking ``1973,'' and inserting ``1973 and''; and
       (ii) by striking ``, and the Carl D. Perkins Vocational and 
     Applied Technology Education Act''.
       (D) The Goals 2000: Educate America Act (20 U.S.C. 5801 et 
     seq.) is amended--
       (i) in section 306 (20 U.S.C. 5886)--

       (I) in subsection (c)(1)(A), by striking all beginning with 
     ``which process'' through ``Act'' and inserting ``which 
     process shall include coordination with the benchmarks 
     described in section 121(c)(2) of the Workforce Development 
     Act of 1995''; and
       (II) in subsection (l), by striking ``Carl D. Perkins 
     Vocational and Applied Technology Education Act'' and 
     inserting ``Workforce Development Act of 1995''; and

       (ii) in section 311(b) (20 U.S.C. 5891(b)), by striking 
     paragraph (6).
       (E) The Elementary and Secondary Education Act of 1965 (20 
     U.S.C. 6301 et seq.) is amended--
       (i) in section 1114(b)(2)(C)(v) (20 U.S.C. 
     6314(b)(2)(C)(v)), by striking ``Carl D. Perkins Vocational 
     and Applied Technology Education Act,'' and inserting 
     ``Workforce Development Act of 1995'';
       (ii) in section 9115(b)(5) (20 U.S.C. 7815(b)(5)), by 
     striking ``Carl D. Perkins Vocational and Applied Technology 
     Education Act'' and inserting ``Workforce Development Act of 
     1995'';
       (iii) in section 14302(a)(2) (20 U.S.C. 8852(a)(2))--

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

       (iv) in the matter preceding subparagraph (A) of section 
     14307(a)(1) (20 U.S.C. 8857(a)(1)), by striking ``Carl D. 
     Perkins Vocational and Applied Technology Education Act'' and 
     inserting ``Workforce Development Act of 1995''.
       (F) Section 533(c)(4)(A) of the Equity in Educational Land-
     Grant Status Act of 1994 (7 U.S.C. 301 note) is amended by 
     striking ``(20 U.S.C. 2397h(3)'' and inserting ``, as such 
     section was in effect on the day preceding the date of 
     enactment of the Workforce Development Act of 1995''.
       (G) Section 563 of the Improving America's Schools Act of 
     1994 (20 U.S.C. 6301 note) is 

[[Page S 14931]]
     amended by striking ``the date of enactment of an Act reauthorizing the 
     Carl D. Perkins Vocational and Applied Technology Education 
     Act (20 U.S.C. 2301 et seq.)'' and inserting ``July 1, 
     1998''.
       (H) Section 135(c)(3)(B) of the Internal Revenue Code of 
     1986 (26 U.S.C. 135(c)(3)(B)) is amended--
       (i) by striking ``subparagraph (C) or (D) of section 521(3) 
     of the Carl D. Perkins Vocational Education Act'' and 
     inserting ``subparagraph (C) or (D) of section 3(3) of the 
     Workforce Development Act of 1995''; and
       (ii) by striking ``any State (as defined in section 521(27) 
     of such Act)'' and inserting ``any State or outlying area (as 
     the terms `State' and `outlying area' are defined in section 
     3 of such Act)''.
       (I) Section 214(c) of the Appalachian Regional Development 
     Act of 1965 (40 U.S.C. App. 214(c)) is amended by striking 
     ``Carl D. Perkins Vocational Education Act'' and inserting 
     ``Workforce Development Act of 1995''.
       (J) Section 104 of the Vocational Education Amendments of 
     1968 (82 Stat. 1091) is amended by striking ``section 3 of 
     the Carl D. Perkins Vocational Education Act'' and inserting 
     ``the Workforce Development Act of 1995''.
       (K) The Older Americans Act of 1965 (42 U.S.C. 3001 et 
     seq.) is amended--
       (i) in section 502(b)(1)(N)(i) (42 U.S.C. 
     3056(b)(1)(N)(i)), by striking ``or the Carl D. Perkins 
     Vocational and Applied Technology Education Act (20 U.S.C. 
     2301 et seq.)''; and
       (ii) in section 505(d)(2) (42 U.S.C. 3056c(d)(2))--

       (I) by striking ``the Secretary of Education'' and 
     inserting ``the Workforce Development Partnership'';
       (II) by striking ``employment and training programs'' and 
     inserting ``workforce development activities''; and
       (III) by striking ``the Carl D. Perkins Vocational and 
     Applied Technology Education Act (20 U.S.C. 2301 et seq.)'' 
     and inserting ``the Workforce Development Act of 1995''.

       (4) School-to-work opportunities act of 1994.--
       (A) Section 1114(b)(2)(C)(v) of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 6314(b)(2)(C)(v)) 
     (as amended in paragraph (3)(E)(i)) is further amended by 
     striking ``the School-to-Work Opportunities Act of 1994,''.
       (B) Section 5204 of such Act (20 U.S.C. 7234) is amended--
       (i) by striking paragraph (4); and
       (ii) by redesignating paragraphs (5) through (7) as 
     paragraphs (4) through (6), respectively.
       (C) Section 9115(b)(5) of such Act (20 U.S.C. 7815(b)(5)) 
     (as amended in paragraph (3)(E)(ii)) is further amended by 
     striking ``the School-to-Work Opportunities Act of 1994 
     and''.
       (D) Section 14302(a)(2) of such Act (20 U.S.C. 8852(a)(2)) 
     (as amended in paragraph (3)(E)(iii)) is further amended--
       (i) in subparagraph (C) (as redesignated in such 
     paragraph), by striking the semicolon and inserting ``; 
     and'';
       (ii) by striking subparagraph (D) (as redesignated in such 
     paragraph); and
       (iii) by redesignating subparagraph (E) (as redesignated in 
     such paragraph) as subparagraph (D).
       (E) Section 14307(a)(1) of such Act (20 U.S.C. 8857(a)(1)) 
     (as amended in paragraph (3)(E)(iv)) is further amended by 
     striking ``, the School-to-Work Opportunities Act of 1994,''.
       (F) Section 14701(b)(1) of such Act (20 U.S.C. 8941(b)(1)) 
     is amended--
       (i) in subparagraph (B)(ii), by striking ``, and the 
     School-to-Work Opportunities Act of 1994, and be coordinated 
     with evaluations of such Acts'' and inserting ``and be 
     coordinated with evaluations of such Act''; and
       (ii) in subparagraph (C)(ii), by striking ``, the School-
     to-Work Opportunities Act of 1994,''.
       (5) Job training partnership act.--
       (A) Section 3502(d) of title 5, United States Code, is 
     amended--
       (i) in paragraph (3)--

       (I) in subparagraph (A), by striking clause (i) and 
     inserting the following:

       ``(i) the Governor of the appropriate State; and''; and

       (II) in subparagraph (B)(iii), by striking ``other services 
     under the Job Training Partnership Act'' and inserting 
     ``other workforce development activities under the Workforce 
     Development Act of 1995''; and

       (ii) in paragraph (4), in the second sentence, by striking 
     ``Secretary of Labor on matters relating to the Job Training 
     Partnership Act'' and inserting ``Workforce Development 
     Partnership on matters relating to the Workforce Development 
     Act of 1995''.
       (B) Section 5(l) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(l)) is amended by striking ``Notwithstanding section 
     142(b) of the Job Training Partnership Act (29 U.S.C. 
     1552(b)), earnings to individuals participating in on-the-job 
     training programs under section 204(b)(1)(C) or section 
     264(c)(1)(A) of the Job Training Partnership Act'' and 
     inserting ``Earnings to individuals participating in on-the-
     job training under the Workforce Development Act of 1995''.
       (C) Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015) 
     is amended--
       (i) in subsection (d)(4)(N), by striking ``the State public 
     employment offices and agencies operating programs under the 
     Job Training Partnership Act'' and inserting ``the State 
     employment service offices and other State agencies and 
     entities providing workforce employment activities under the 
     Workforce Development Act of 1995''; and
       (ii) in subsection (e)(3), by striking subparagraph (A) and 
     inserting the following:
       ``(A) a program relating to workforce employment activities 
     carried out under the Workforce Development Act of 1995;''.
       (D) The second sentence of section 17(b)(2) of the Food 
     Stamp Act of 1977 (7 U.S.C. 2026(b)(2)) is amended--
       (i) by striking ``to accept an offer of employment from a 
     political subdivision or a prime sponsor pursuant to the 
     Comprehensive Employment and Training Act of 1973, as amended 
     (29 U.S.C. 812),'' and inserting ``to accept an offer of 
     employment from a service provider carrying out workforce 
     employment activities through a program carried out under the 
     Workforce Development Act of 1995,''; and
       (ii) by striking ``: Provided, That all of the political 
     subdivision's'' and all that follows and inserting ``, if all 
     of the jobs supported under the program have been made 
     available to participants in the program before the service 
     provider providing the jobs extends an offer of employment 
     under this paragraph, and if the service provider, in 
     employing the person, complies with the requirements of 
     Federal law that relate to the program.''.
       (E) Section 245A(h)(4)(F) of the Immigration and 
     Nationality Act (8 U.S.C. 1255a(h)(4)(F)) is amended by 
     striking ``The Job Training Partnership Act.'' and inserting 
     ``The Workforce Development Act of 1995.''.
       (F) Section 402(a)(4) of the Refugee Education Assistance 
     Act of 1980 (8 U.S.C. 1522 note) is amended by striking ``the 
     Comprehensive Employment and Training Act of 1973'' and 
     inserting ``the Workforce Development Act of 1995''.
       (G) Section 4461(1) of the National Defense Authorization 
     Act for Fiscal Year 1993 (10 U.S.C. 1143 note) is amended by 
     striking ``The Job Training Partnership Act (29 U.S.C. 1501 
     et seq.).'' and inserting ``The Workforce Development Act of 
     1995.''.
       (H) Section 4471 of the National Defense Authorization Act 
     for Fiscal Year 1993 (10 U.S.C. 2501 note) is amended--
       (i) in subsection (d)(2), by striking ``the State 
     dislocated'' and all that follows through ``and the chief'' 
     and inserting ``the Governor of the appropriate State and the 
     chief'';
       (ii) in subsection (e)--

       (I) in the first sentence, by striking ``for training, 
     adjustment assistance, and employment services'' and all that 
     follows through ``except where'' and inserting ``to 
     participate in workforce employment activities carried out 
     under the Workforce Development Act of 1995, except in a case 
     in which''; and
       (II) by striking the second sentence; and

       (iii) in subsection (f)--

       (I) in paragraph (3)--

       (aa) in subparagraph (B), by striking ``the State 
     dislocated'' and all that follows through ``and the chief'' 
     and inserting ``the Governor of the appropriate State and the 
     chief''; and
       (bb) in subparagraph (C), by striking ``grantee under 
     section 325(a) or 325A(a)'' and all that follows through 
     ``employment services'' and inserting ``recipient of 
     assistance under the Workforce Development Act of 1995 
     providing workforce employment activities''; and

       (II) in paragraph (4), by striking ``for training,'' and 
     all that follows through ``beginning'' and inserting ``to 
     participate in workforce employment activities under the 
     Workforce Development Act of 1995 beginning''.

       (I) Section 4492(b) of National Defense Authorization Act 
     for Fiscal Year 1993 (10 U.S.C. 1143 note) is amended by 
     striking ``the Job Training Partnership Act'' and inserting 
     ``the Workforce Development Act of 1995''.
       (J) Section 4003(5)(C) of the National Defense 
     Authorization Act for Fiscal Year 1991 (10 U.S.C. 2391 note) 
     is amended by inserting before the period the following: ``, 
     as in effect on the day before the date of enactment of the 
     Workforce Development Act of 1995''.
       (K) Section 1333(c)(2)(B) of the National Defense 
     Authorization Act for Fiscal Year 1994 (10 U.S.C. 2701 note) 
     is amended by striking ``Private industry councils (as 
     described in section 102 of the Job Training Partnership Act 
     (29 U.S.C. 1512)).'' and inserting ``Local partnerships or 
     local workforce development boards, as appropriate, 
     established under section 118 of the Workforce Development 
     Act of 1995.''.
       (L) The fourth sentence of section 7(j)(13)(E) of the Small 
     Business Act (15 U.S.C. 636(j)(13)(E)) is amended by striking 
     ``the Job Training Partnership Act (29 U.S.C. 1501 et seq.)'' 
     and inserting ``the Workforce Development Act of 1995''.
       (M) Section 4(f)(2)(B) of the Employment Act of 1946 (15 
     U.S.C. 1022a(f)(2)(B)) is amended by striking ``and include 
     these in the annual Employment and Training Report of the 
     President required under section 705(a) of the Comprehensive 
     Employment and Training Act of 1973 (hereinafter in this Act 
     referred to as `CETA')'' and inserting ``and prepare and 
     submit to the President an annual report containing the 
     recommendations''.
       (N) Section 206 of the Full Employment and Balanced Growth 
     Act of 1978 (15 U.S.C. 3116) is amended--
       (i) in subsection (b)--

       (I) in the matter preceding paragraph (1), by striking 
     ``CETA'' and inserting ``the Workforce Development Act of 
     1995''; and
       (II) in paragraph (1), by striking ``(including use of 
     section 110 of CETA when necessary)''; and

[[Page S 14932]]


       (ii) in subsection (c)(1), by striking ``CETA'' and 
     inserting ``activities carried out under the Workforce 
     Development Act of 1995''.
       (O) Section 401(d) of the Full Employment and Balanced 
     Growth Act of 1978 (15 U.S.C. 3151(d)) is amended by striking 
     ``include, in the annual Employment and Training Report of 
     the President provided under section 705(a) of CETA,'' and 
     inserting ``include, in the annual report referred to in 
     section 4(f)(2)(B) of the Employment Act of 1946 (15 U.S.C. 
     1022a(f)(2)(B)),''.
       (P) Subsections (a), (b), and (c) of section 665 of title 
     18, United States Code are amended by striking ``the 
     Comprehensive Employment and Training Act or the Job Training 
     Partnership Act'' and inserting ``the Workforce Development 
     Act of 1995''.
       (Q) Section 239(e) of the Trade Act of 1974 (19 U.S.C. 
     2311(e)) (as amended in paragraph (1)(G)(i)) is further 
     amended by striking ``under title III of the Job Training 
     Partnership Act'' and inserting ``made available under the 
     Workforce Development Act of 1995''.
       (R) Section 480(b)(14) of the Higher Education Act of 1965 
     (20 U.S.C. 1087vv(b)(14)) is amended by striking ``Job 
     Training Partnership Act noneducational benefits'' and 
     inserting ``benefits received through participation in 
     workforce employment activities under the Workforce 
     Development Act of 1995''.
       (S) Section 626 of the Individuals with Disabilities 
     Education Act (20 U.S.C. 1425) is amended--
       (i) in the first sentence of subsection (a), by striking 
     ``(including the State job training coordinating councils and 
     service delivery area administrative entities established 
     under the Job Training Partnership Act)'' and inserting 
     ``(including any statewide workforce development boards 
     established under section 105 of the Workforce Development 
     Act of 1995 and local entities, as defined in section 3 of 
     the Workforce Development Act of 1995)'';
       (ii) in subsection (e)--

       (I) in paragraphs (3)(C) and (4)(A)(iii), by striking 
     ``local Private Industry Councils (PICS) authorized by the 
     Job Training Partnership Act (JTPA),'' and inserting ``local 
     partnerships or local workforce development boards, as 
     appropriate, established under section 118 of the Workforce 
     Development Act of 1995,''; and
       (II) in clauses (iii), (iv), (v), and (vii) of paragraph 
     (4)(B), by striking ``PICS authorized by the JTPA'' and 
     inserting ``local partnerships or local workforce development 
     boards, as appropriate, established under section 118 of the 
     Workforce Development Act of 1995''; and

       (iii) in subsection (g), by striking ``the Job Training 
     Partnership Act (JTPA),'' and inserting ``the Workforce 
     Development Act of 1995,''.
       (T) Subsection (a) of section 302 of the Department of 
     Education Organization Act (20 U.S.C. 3443(a)) (as 
     redesignated in section 271(a)(2) of the Improving America's 
     Schools Act of 1994) is amended by striking ``under section 
     303(c)(2) of the Comprehensive Employment and Training Act'' 
     and inserting ``relating to such education''.
       (U) Section 504(c)(3) of the National Skill Standards Act 
     of 1994 (20 U.S.C. 5934(c)(3)) is amended by striking ``the 
     Capacity Building and Information and Dissemination Network 
     established under section 453(b) of the Job Training 
     Partnership Act (29 U.S.C. 1733(b)) and''.
       (V) Section 508(1) of the National Skill Standards Act of 
     1994 (20 U.S.C. 5938(1)) is amended to read as follows:
       ``(1) Community-based organization.--The term `community-
     based organization' means a private nonprofit organization of 
     demonstrated effectiveness that is representative of a 
     community or a significant segment of a community and that 
     provides workforce development activities, as defined in 
     section 3 of the Workforce Development Act of 1995.''.
       (W) Section 1205(8)(B) of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 6365(8)(B)) (as amended in 
     paragraph (2)(C)(ii)) is further amended by striking ``, the 
     Individuals with Disabilities Education Act, and the Job 
     Training Partnership Act'' and inserting ``and the 
     Individuals with Disabilities Education Act''.
       (X) Section 1414(c)(8) of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 6434(c)(8)) is amended by 
     striking ``programs under the Job Training Partnership Act,'' 
     and inserting ``programs under the Workforce Development Act 
     of 1995,''.
       (Y) Section 1423(9) of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 6453(9)) is amended by 
     striking ``programs under the Job Training and Partnership 
     Act'' and inserting ``programs under the Workforce 
     Development Act of 1995''.
       (Z) Section 1425(9) of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 6455(9)) is amended by 
     striking ``, such as funds under the Job Training Partnership 
     Act,'' and inserting ``, such as funds made available under 
     the Workforce Development Act of 1995,''.
       (AA) Section 5303(b)(2)(B) of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 7263(b)(2)(B)) is amended by 
     striking ``private industry council (established under the 
     Job Training Partnership Act),'' and inserting ``local 
     partnership or local workforce development board, as 
     appropriate, established under section 118 of the Workforce 
     Development Act of 1995,''.
       (BB) The last sentence of section 505 of the FREEDOM 
     Support Act (22 U.S.C. 5855) is amended by striking ``, 
     through the Defense Conversion'' and all that follows through 
     ``or through'' and inserting ``or through''.
       (CC) Section 42(i)(3)(D)(i)(II) of the Internal Revenue 
     Code of 1986 is amended by striking ``assistance under'' and 
     all that follows through ``or under'' and inserting 
     ``assistance under the Workforce Development Act of 1995 or 
     under''.
       (DD) Section 51(d) of the Internal Revenue Code of 1986 is 
     amended by striking paragraph (10).
       (EE) Section 6334(d)(12) of the Internal Revenue Code of 
     1986 is amended to read as follows:
       ``(12) Assistance under the workforce development act of 
     1995.--Any amount payable to a participant in workforce 
     development activities carried out under the Workforce 
     Development Act of 1995 from funds appropriated under such 
     Act.''.
       (FF) Section 204(b) of the Emergency Jobs and Unemployment 
     Assistance Act of 1974 (26 U.S.C. 3304 note) is amended by 
     striking ``designate as an area'' and all that follows and 
     inserting ``designate as an area under this section an area 
     that is a substate area under the Workforce Development Act 
     of 1995.''.
       (GG) Section 223 of the Emergency Jobs and Unemployment 
     Assistance Act of 1974 (26 U.S.C. 3304 note) is amended--
       (i) in paragraph (3), by striking ``assistance provided'' 
     and all that follows and inserting ``assistance provided 
     under the Workforce Development Act of 1995;''; and
       (ii) in paragraph (4), by striking ``funds provided'' and 
     all that follows and inserting ``funds provided under the 
     Workforce Development Act of 1995;''.
       (HH) Section 612(b) of the Rehabilitation Act of 1973 (29 
     U.S.C. 795a(b)) is amended by striking ``the Job Training 
     Partnership Act'' and inserting ``the Workforce Development 
     Act of 1995''.
       (II) Section 701 of the Job Training Reform Amendments of 
     1992 (29 U.S.C. 1501 note) is repealed.
       (JJ) Section 7 of Public Law 98-524 (29 U.S.C. 1551 note) 
     is repealed.
       (KK) Section 402 of the Veterans' Benefits and Programs 
     Improvement Act of 1988 (29 U.S.C. 1721 note) is amended--
       (i) in subsection (a), by striking ``title III of the Job 
     Training Partnership Act (29 U.S.C. 1651 et seq.)'' and 
     inserting ``the Workforce Development Act of 1995'';
       (ii) in subsection (c), by striking ``the office designated 
     or created under section 322(b) of the Job Training 
     Partnership Act'' and inserting ``the Workforce Development 
     Partnership''; and
       (iii) in subsection (d)--

       (I) in paragraph (1), by striking ``under--'' and all that 
     follows through ``the Veterans' '' and inserting ``under the 
     Veterans' ''; and
       (II) in paragraph (2), by striking ``Employment and 
     training'' and all that follows and inserting ``Workforce 
     employment activities under the Workforce Development Act of 
     1995.''.

       (LL) Section 13(b) of the Veterans' Job Training Act (29 
     U.S.C. 1721 note) is amended by striking ``assistance under 
     the Job Training Partnership Act (29 U.S.C. 1501 et seq.)'' 
     and inserting ``assistance under the Workforce Development 
     Act of 1995''.
       (MM) Section 14(b)(3)(B)(i)(II) of the Veterans' Job 
     Training Act (29 U.S.C. 1721 note) is amended by striking 
     ``under part C of title IV of the Job Training Partnership 
     Act (29 U.S.C. 1501 et seq.)'' and ``under the Workforce 
     Development Act of 1995''.
       (NN) Section 15(c)(2) of the Veterans' Job Training Act (29 
     U.S.C. 1721 note) is amended--
       (i) in the second sentence, by striking ``part C of title 
     IV of the Job Training Partnership Act (29 U.S.C. 1501 et 
     seq.)'' and inserting ``the Workforce Development Act of 
     1995''; and
       (ii) in the third sentence, by striking ``title III of''.
       (OO) Section 3(a)(2) of the Worker Adjustment and 
     Retraining Notification Act (29 U.S.C. 2102(a)(2)) is amended 
     by striking ``to the State'' and all that follows through 
     ``and the chief'' and inserting ``to the Governor of the 
     appropriate State and the chief''.
       (PP) Section 6703(a) of title 31, United States Code, is 
     amended by striking paragraph (4) and inserting the 
     following:
       ``(4) Programs under the Workforce Development Act of 
     1995.''.
       (QQ) Section 512 of the Veterans' Rehabilitation and 
     Education Amendments of 1980 (38 U.S.C. 4101 note) is amended 
     by striking ``the Comprehensive Employment and Training Act 
     (29 U.S.C. et seq.),'' and inserting ``the Workforce 
     Development Act of 1995,''.
       (RR) Section 4102A(d) of title 38, United States Code, is 
     amended by striking ``the Job Training Partnership Act'' and 
     inserting ``the Workforce Development Act of 1995''.
       (SS) Section 4103A(c)(4) of title 38, United States Code, 
     is amended by striking ``(including part C of title IV of the 
     Job Training Partnership Act (29 U.S.C. 1501 et seq.))''.
       (TT) Section 4213 of title 38, United States Code, is 
     amended by striking ``any employment or training program 
     assisted under the Job Training Partnership Act (29 U.S.C. 
     1501 et seq.),'' and inserting ``any workforce employment 
     activity carried out under the Workforce Development Act of 
     1995,''.
       (UU) Section 23 of the United States Housing Act of 1937 
     (42 U.S.C. 1437u) is amended--
       (i) in subsection (b)(2)(A), by striking ``the Job 
     Training'' and all that follows through ``or the'' and 
     inserting ``the Workforce Development Act of 1995 or the''; 

[[Page S 14933]]

       (ii) in the first sentence of subsection (f)(2), by 
     striking ``programs under the'' and all that follows through 
     ``and the'' and inserting ``programs under the Workforce 
     Development Act of 1995 and the''; and
       (iii) in subsection (g)--

       (I) in paragraph (2), by striking ``programs under the'' 
     and all that follows through ``and the'' and inserting 
     ``programs under the Workforce Development Act of 1995 and 
     the''; and
       (II) in paragraph (3)(H), by striking ``program under'' and 
     all that follows through ``and any other'' and inserting 
     ``program under the Workforce Development Act of 1995 and any 
     other''.

       (VV) Section 504(c)(3) of the Housing Act of 1949 (42 
     U.S.C. 1474(c)(3)) is amended by striking ``pursuant to'' and 
     all that follows through ``or the'' and inserting ``pursuant 
     to the Workforce Development Act of 1995 or the''.
       (WW) Section 203 of the Older Americans Act of 1965 (42 
     U.S.C. 3013) is amended--
       (i) in subsection (a)(2), by striking the last sentence and 
     inserting the following: ``In particular, the Secretary of 
     Labor and the Secretary of Education shall consult and 
     cooperate with the Assistant Secretary in carrying out the 
     Workforce Development Act of 1995.''; and
       (ii) in subsection (b), by striking paragraph (1) and 
     inserting the following:
       ``(1) the Workforce Development Act of 1995,''.
       (XX) Section 502 of the Older Americans Act of 1965 (42 
     U.S.C. 3056) is amended--
       (i) in subsection (b)(1)(N)(i), by striking ``the Job 
     Training Partnership Act (29 U.S.C. 1501 et seq.)'' and 
     inserting ``the Workforce Development Act of 1995''; and
       (ii) in subsection (e)(2)(C), by striking ``programs 
     carried out under section 124 of the Job Training Partnership 
     Act (29 U.S.C. 1534)'' and inserting ``workforce employment 
     activities carried out under the Workforce Development Act of 
     1995''.
       (YY) Section 503(b)(1) of the Older Americans Act of 1995 
     (42 U.S.C. 3056a(b)(1)) is amended by striking ``the Job 
     Training Partnership Act,'' each place it appears and 
     inserting ``the Workforce Development Act of 1995,''.
       (ZZ) Section 510 of the Older Americans Act of 1995 (42 
     U.S.C. 3056h) is amended by striking ``the Job Training 
     Partnership Act, eligible individuals shall be deemed to 
     satisfy the requirements of sections 203 and 204(d)(5)(A) of 
     such Act (29 U.S.C. 1603, 1604(d)(5)(A))'' and inserting 
     ``the Workforce Development Act of 1995, eligible individuals 
     shall be deemed to satisfy the requirements of such Act''.
       (AAA) Section 1801(b)(3) of the Omnibus Crime Control and 
     Safe Streets Act of 1968 (42 U.S.C. 3796ee(b)(3)) is amended 
     by striking ``activities carried out under part B of title IV 
     of the Job Training Partnership Act (relating to Job Corps) 
     (29 U.S.C. 1691 et seq.)'' and inserting ``activities carried 
     out under chapter 2 of subtitle B of the Workforce 
     Development Act of 1995''.
       (BBB) The second sentence of section 2(a) of the 
     Environmental Programs Assistance Act of 1984 (42 U.S.C. 
     4368a(a)) is amended by striking ``and title IV of the Job 
     Training Partnership Act'' and inserting ``and the Workforce 
     Development Act of 1995''.
       (CCC) The second sentence of section 103(d) of the Domestic 
     Volunteer Service Act of 1973 (42 U.S.C. 4953(d)) is amended 
     to read as follows: ``Whenever feasible, such efforts shall 
     be coordinated with a local partnership or local workforce 
     development board, as appropriate, established under section 
     118 of the Workforce Development Act of 1995.''
       (DDD) Subsections (c)(2) and (d)(2) of section 109 of the 
     Domestic Volunteer Service Act of 1973 (42 U.S.C. 4959) is 
     amended by striking ``administrative entities designated to 
     administer job training plans under the Job Training 
     Partnership Act'' and inserting ``local entities, as defined 
     in section 3 of the Workforce Development Act of 1995''.
       (EEE) Section 304(c)(1) of the Age Discrimination Act of 
     1975 (42 U.S.C. 6103(c)(1)) is amended by striking ``the 
     Comprehensive Employment and Training Act of 1974 (29 U.S.C. 
     801, et seq.), as amended,'' and inserting ``the Workforce 
     Development Act of 1995''.
       (FFF) Section 414(b)(3) of the Energy Conservation and 
     Production Act (42 U.S.C. 6864(b)(3)) is amended by striking 
     ``the Comprehensive Employment and Training Act of 1973'' and 
     inserting ``the Workforce Development Act of 1995''.
       (GGG) Section 233 of the National Energy Conservation 
     Policy Act (42 U.S.C. 6873) is amended, in the matter 
     preceding paragraph (1), by striking ``the Comprehensive 
     Employment and Training Act of 1973'' and inserting ``the 
     Workforce Development Act of 1995''.
       (HHH) Section 3161(c)(6) of the National Defense 
     Authorization Act for Fiscal Year 1993 (42 U.S.C. 
     7274h(c)(6)) is amended by striking subparagraph (A) and 
     inserting the following:
       ``(A) programs carried out jointly by the Secretary of 
     Labor and the Secretary of Education under the Workforce 
     Development Act of 1995;''.
       (III) Section 617(a)(3) of the Community Economic 
     Development Act of 1981 (42 U.S.C. 9806(a)(3)) is amended by 
     striking ``activities such as those described in the 
     Comprehensive Employment and Training Act'' and inserting 
     ``workforce employment activities described in the Workforce 
     Development Act of 1995''.
       (JJJ) Section 103(b)(2) of the Stewart B. McKinney Homeless 
     Assistance Act (42 U.S.C. 11302(b)(2)) is amended by striking 
     ``the Job Training Partnership Act'' and inserting ``the 
     Workforce Development Act of 1995''.
       (KKK) Section 177(d) of the National and Community Service 
     Act of 1990 (42 U.S.C. 12637(d)) is amended to read as 
     follows:
       ``(d) Treatment of Benefits.--Allowances, earnings, and 
     payments to individuals participating in programs that 
     receive assistance under this title shall not be considered 
     to be income for the purposes of determining eligibility for 
     and the amount of income transfer and in-kind aid furnished 
     under any Federal or federally assisted program based on 
     need, other than as provided under the Social Security Act 
     (42 U.S.C. 301 et seq.).''.
       (LLL) Section 198C of the National and Community Service 
     Act of 1990 (42 U.S.C. 12653c) is amended--
       (i) in subsection (b)(1), by striking ``a military 
     installation described in section 325(e)(1) of the Job 
     Training Partnership Act (29 U.S.C. 1662d(e)(1)).'' and 
     inserting ``a military installation being closed or realigned 
     under--
       ``(A) the Defense Base Closure and Realignment Act of 1990 
     (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 
     note); and
       ``(B) title II of the Defense Authorization Amendments and 
     Base Closure and Realignment Act (Public Law 100-526; 10 
     U.S.C. 2687 note).''; and
       (ii) in subsection (e)(1)(B), by striking clause (iii) and 
     inserting the following:
       ``(iii) an at-risk youth (as defined in section 132 of the 
     Workforce Development Act of 1995).''.
       (MMM) Section 199L(a) of the National and Community Service 
     Act of 1990 (42 U.S.C. 12655m(a)) is amended by striking 
     ``the Job Training Partnership Act (29 U.S.C. 1501 et seq.)'' 
     and inserting ``the Workforce Development Act of 1995''.
       (NNN) Subparagraphs (H) and (M) of subsection (c)(2), and 
     subsection (d)(7), of section 454 of the Cranston-Gonzalez 
     National Affordable Housing Act (42 U.S.C. 12899c) are 
     amended by striking ``the Job Training Partnership Act'' and 
     inserting ``the Workforce Development Act of 1995''.
       (OOO) The first sentence of section 456(e) of the Cranston-
     Gonzalez National Affordable Housing Act (42 U.S.C. 
     12899e(e)) is amended by inserting ``(as in effect on the day 
     before the date of enactment of the Workforce Development Act 
     of 1995)'' after ``the Job Training Partnership Act'' each 
     place it appears.
       (PPP) Section 31113(a)(4)(C) of the Violent Crime Control 
     and Law Enforcement Act of 1994 (42 U.S.C. 13823(a)(4)(C)) is 
     amended by striking ``authorized under the Job Training 
     Partnership Act (29 U.S.C. 1501 et seq.)'' and inserting ``or 
     workforce employment activities authorized under the 
     Workforce Development Act of 1995''.
       (6) Stewart b. mckinney homeless assistance act.--
       (A) Section 6703(a) of title 31, United States Code, is 
     amended--
       (i) by striking paragraph (15); and
       (ii) by redesignating paragraphs (16) through (19) as 
     paragraphs (15) through (18), respectively.
       (B) Section 14205(a)(1) of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 8825(a)(1)) is amended by 
     striking ``the Indian education programs under part A of 
     title IX of this Act, and the education for homeless children 
     and youth program under subtitle B of title VII of the 
     Stewart B. McKinney Homeless Assistance Act,'' and inserting 
     ``and the Indian education programs under part A of title 
     IX,''.
       (c) Recommended Legislation.--
       (1) Preparation.--After consultation with the appropriate 
     committees of Congress and the Director of the Office of 
     Management and Budget, the Federal Partnership shall prepare 
     and submit to Congress recommended legislation containing 
     technical and conforming amendments to reflect the changes 
     made by section 191(b).
       (2) Submission to congress.--Not later than March 31, 1997, 
     the Federal Partnership shall submit the recommended 
     legislation referred to under paragraph (1).
       (d) Effective Dates.--
       (1) Immediate repeals.--The amendments made by subsection 
     (a) shall take effect on the date of enactment of this Act.
       (2) Subsequent repeals.--The amendments made by subsection 
     (b) shall take effect on July 1, 1998.
           TITLE II--WORKFORCE DEVELOPMENT-RELATED ACTIVITIES
        Subtitle A--Amendments to the Rehabilitation Act of 1973

     SEC. 201. REFERENCES.

       Except as otherwise expressly provided in this subtitle, 
     whenever in this subtitle 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. 202. 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 

[[Page S 14934]]
     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. 203. 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. 204. 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. 205. 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. 206. 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 121(a) of the 
     Workforce Development Act of 1995 and that pertains to the 
     employment of individuals with disabilities, including 
     information on age,''.

     SEC. 207. 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 121(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 
     National Board established under section 182 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. 208. 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. 209. 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 
     Federal Partnership established under section 181 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 and occupational 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;'';
       (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 

[[Page S 14935]]
     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)''.
       (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. 210. 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)--

[[Page S 14936]]

       (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. 211. 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. 212. 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 209(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. 213. 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 121(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 National Board established under 
     section 182 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. 214. 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. 215. EFFECTIVE DATE.

       (a) In General.--Except as provided in subsection (b), the 
     amendments made by this subtitle 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 subtitle 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 173 for program year 1997, on July 
     1, 1997; and
       (2) in any other State, on July 1, 1998.
              Subtitle B--Amendments to Wagner-Peyser Act

     SEC. 221. GENERAL PROGRAM REQUIREMENTS.

       (a) In General.--Section 1 of the Wagner-Peyser Act (29 
     U.S.C. 49) is amended by striking ``national system'' and all 
     that follows and inserting ``national system of employment 
     service offices open to the public, there shall be in the 
     Federal Partnership a United States Employment Service.''.
       (b) Conforming Amendments.--Paragraphs (1) and (4)(B) of 
     section 3304(a), and section 3306(f)(2), of the Internal 
     Revenue Code of 1986, and paragraphs (2) and (5) of section 
     303(a), paragraphs (1)(A)(ii) and (4) of section 901(c), and 
     section 903(c)(2) of the Social Security Act (42 U.S.C. 
     503(a) (2) and (5), 1101(c) (1)(A)(ii) and (4), and 
     1103(c)(2)) are amended by striking ``public employment 
     offices'' and inserting ``employment service offices''.

     SEC. 222. DEFINITIONS.

       (a) In General.--Section 2 of the Wagner-Peyser Act (29 
     U.S.C. 49a) is amended--
       (1) by striking paragraphs (1), (2), (3), and (4);
       (2) by inserting before paragraph (5) the following 
     paragraphs:
       ``(1) the term `Federal Partnership' has the meaning given 
     the term in section 3 of the Workforce Development Act of 
     1995;
       ``(2) the term `one-stop career center system' means a 
     means of providing one-stop delivery of core services 
     described in section 106(a)(2)(B) of the Workforce 
     Development Act of 1995;
       ``(3) the term `Secretary', used without further 
     modification, means the Secretary of Labor and the Secretary 
     of Education, acting jointly; and''; and
       (3) by redesignating paragraph (5) as paragraph (4).
       (b) Conforming Amendments.--
       (1) Secretary.--Section 7(d) of the Wagner-Peyser Act (29 
     U.S.C. 49f(d)) is amended by striking ``Secretary of Labor'' 
     and inserting ``Secretary''.
       (2) Director.--Section 12 of the Wagner-Peyser Act (29 
     U.S.C. 49k) is amended by striking ``The Director, with the 
     approval of the Secretary of Labor,'' and inserting ``The 
     Secretary''.

     SEC. 223. FUNCTIONS.

       (a) In General.--Section 3 of the Wagner-Peyser Act (29 
     U.S.C. 49b) is amended--
       (1) by striking subsection (a) and inserting the following 
     subsection:
       ``(a) The Federal Partnership shall--
       ``(1) assist in the coordination and development of a 
     nationwide system of labor exchange services for the general 
     public, provided through the one-stop career center systems 
     of the States;
       ``(2) assist in the development of continuous improvement 
     models for such nationwide system that ensure private sector 
     satisfaction with the system and meet the demands of 
     jobseekers relating to the system; and 

[[Page S 14937]]

       ``(3) ensure, for individuals otherwise eligible to receive 
     unemployment compensation, the continuation of any activities 
     in which the individuals are required to participate to 
     receive the compensation.''; and
       (2) by adding at the end the following new subsection:
       ``(c) Notwithstanding any Act referred to in section 181(b) 
     of the Workforce Development Act of 1995, the Secretary of 
     Labor and the Secretary of Education, acting jointly, in 
     accordance with the plan approved or determinations made by 
     the President under section 186(c) of such Act, shall provide 
     for, and exercise final authority over, the effective and 
     efficient administration of this Act and the officers and 
     employees of the United States Employment Service.''.
       (b) Conforming Amendments.--Section 508(b) of the 
     Unemployment Compensation Amendments of 1976 (42 U.S.C. 
     603a(b)) is amended--
       (1) by striking ``the third sentence of section 3(a)'' and 
     inserting ``section 3(b)''; and
       (2) by striking ``49b(a)'' and inserting ``49b(b))''.

     SEC. 224. DESIGNATION OF STATE AGENCIES.

       Section 4 of the Wagner-Peyser Act (29 U.S.C. 49c) is 
     amended--
       (1) by striking ``a State shall, through its legislature,'' 
     and inserting ``a Governor shall''; and
       (2) by striking ``the United States Employment Service'' 
     and inserting ``the Federal Partnership''.

     SEC. 225. APPROPRIATIONS.

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

     SEC. 226. DISPOSITION OF ALLOTTED FUNDS.

       Section 7 of the Wagner-Peyser Act (29 U.S.C. 49f) is 
     amended--
       (1) in subsection (b)--
       (A) in paragraph (1), by striking ``public employment 
     service offices and programs'' and inserting ``employment 
     service offices and employment service programs''; and
       (B) in paragraph (2), by striking ``and the appropriate 
     private industry council and chief elected official or 
     officials'' and inserting ``, and the appropriate local 
     partnership established under section 118(a) of the Workforce 
     Development Act of 1995 (or, where established, the 
     appropriate local workforce development board described in 
     section 118(b) of such Act)'';
       (2) in subsection (c)(2), by striking ``any program under'' 
     and all that follows and inserting ``any activity carried out 
     under the Workforce Development Act of 1995.'';
       (3) in subsection (d)--
       (A) by striking ``United States Employment Service'' and 
     inserting ``Federal Partnership''; and
       (B) by striking ``administrative entity under the Job 
     Training Partnership Act'' and inserting ``local entity under 
     the Workforce Development Act of 1995''; and
       (4) by adding at the end the following subsection:
       ``(e) All job search, placement, recruitment, labor market 
     information, and other labor exchange services authorized 
     under subsection (a) shall be provided through the one-stop 
     career center system established by the State.''.

     SEC. 227. STATE PLANS.

       Section 8 of the Wagner-Peyser Act (29 U.S.C. 49g) is 
     amended--
       (1) by striking subsection (a) and inserting the following 
     new subsection:
       ``(a) Any State desiring to receive assistance under this 
     Act shall include in the portion of the State workforce 
     development plan described in section 104 of the Workforce 
     Development Act of 1995 relating to workforce employment 
     activities, detailed plans for carrying out this Act in such 
     State.'';
       (2) by striking subsections (b), (c), and (e);
       (3) in subsection (d), by striking ``United States 
     Employment Service'' and inserting ``Federal Partnership''; 
     and
       (4) by redesignating subsection (d) as subsection (b).

     SEC. 228. FEDERAL ADVISORY COUNCIL.

       Section 11 of the Wagner-Peyser Act (29 U.S.C. 49j) is 
     repealed.
       Subtitle C--Amendments to Immigration and Nationality Act

     SEC. 231. 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 D--Amendments to the National Literacy Act of 1991

     SEC. 241. NATIONAL INSTITUTE FOR LITERACY.

       Section 102 of the National Literacy Act of 1991 (20 U.S.C. 
     1213c note) is amended to read as follows:

     ``SEC. 102. NATIONAL INSTITUTE FOR LITERACY.

       ``(a) Establishment.--
       ``(1) In general.--There is established the National 
     Institute for Literacy (referred to in this section as the 
     `Institute'). The Institute shall be administered by the 
     Federal Partnership established under section 181 of the 
     Workforce Development Act of 1995 (referred to in this Act as 
     the `Federal Partnership'). The Federal Partnership may 
     include in the Institute any research and development center, 
     institute, or clearinghouse that the Federal Partnership 
     determines is appropriately included in the Institute.
       ``(2) Offices.--The Institute shall have offices separate 
     from the offices of the Department of Education or the 
     Department of Labor.
       ``(3) Recommendations.--The Federal Partnership shall 
     consider the recommendations of the National Institute 
     Council established under subsection (d) in planning the 
     goals of the Institute and in the implementation of any 
     programs to achieve such goals. The daily operations of the 
     Institute shall be carried out by the Director of the 
     Institute appointed under subsection (g). If such Council's 
     recommendations are not followed, the Federal Partnership 
     shall provide a written explanation to such Council 
     concerning actions the Federal Partnership has taken that 
     includes the Federal Partnership's reasons for not following 
     such Council's recommendations with respect to such actions. 
     Such Council may also request a meeting with the Federal 
     Partnership to discuss such Council's recommendations.
       ``(b) Duties.--
       ``(1) In general.--The Institute is authorized, in order to 
     improve the quality and accountability of the adult basic 
     skills and literacy delivery system, to--
       ``(A) coordinate the support of research and development on 
     literacy and basic skills education across Federal agencies 
     and carry out basic and applied research and development on 
     topics such as--
       ``(i) identifying effective models of basic skills and 
     literacy education for adults and families that are essential 
     to success in job training, work, the family, and the 
     community;
       ``(ii) carrying out evaluations of the effectiveness of 
     literacy and adult education programs and services, including 
     those supported by this Act; and
       ``(iii) supporting the development of models at the State 
     and local level of accountability systems that consist of 
     goals, performance measures, benchmarks, and assessments that 
     can be used to improve the quality of literacy and adult 
     education services;
       ``(B) provide technical assistance, information, and other 
     program improvement activities to national, State, and local 
     organizations, such as--
       ``(i) providing information and training to State and local 
     workforce development boards and one-stop centers concerning 
     how literacy and basic skills services can be incorporated in 
     a coordinated workforce development model;
       ``(ii) improving the capacity of national, State, and local 
     public and private literacy and basic skills professional 
     development and technical assistance organizations, such as 
     the State Literacy Resource Centers established under section 
     103; and
       ``(iii) providing information on-line and in print to all 
     literacy and basic skills programs about best practices, 
     models of collaboration for effective workforce, family, 
     English as a Second Language, and other literacy programs, 
     and other informational and communication needs; and
       ``(C) work with the Federal Partnership, the Departments of 
     Education, Labor, and Health and Human Services, and the 
     Congress to ensure that they have the best information 
     available on literacy and basic skills programs in 
     formulating Federal policy around the issues of literacy, 
     basic skills, and workforce development.
       ``(2) Contracts, cooperative agreements, and grants.--The 
     Institute may enter into contracts or cooperative agreements 
     with, or make grants to, individuals, public or private 
     nonprofit institutions, agencies, organizations, or consortia 
     of such institutions, agencies, or organizations to carry out 
     the activities of the Institute. Such grants, contracts, or 
     agreements shall be subject to the laws and regulations that 
     generally apply to grants, contracts, or agreements entered 
     into by Federal agencies.
       ``(c) Literacy Leadership.--
       ``(1) Fellowships.--The Institute is, in consultation with 
     the Council, authorized to award fellowships, with such 
     stipends and allowances that the Director considers 
     necessary, to outstanding individuals pursuing careers in 
     adult education or literacy in the areas of instruction, 
     management, research, or innovation.
       ``(2) Use of fellowships.--Fellowships awarded under this 
     subsection shall be used, under the auspices of the 
     Institute, to engage in research, education, training, 
     technical assistance, or other activities to advance the 
     field of adult education or literacy, including the training 
     of volunteer literacy providers at the national, State, or 
     local level.
       ``(3) Designation.--Individuals receiving fellowships 
     pursuant to this subsection shall be known as `Literacy 
     Leader Fellows'.
       ``(d) National Institute Council.--
       ``(1) In general.--
       ``(A) Establishment.--There is established the National 
     Institute Council (in this section referred to as the 
     ``Council''). The Council shall consist of 10 individuals 
     appointed by the President with the advice and consent of the 
     Senate from individuals who--
       ``(i) are not otherwise officers or employees of the 
     Federal Government;
       ``(ii) are representative of entities or groups described 
     in subparagraph (B); and
       ``(iii) are chosen from recommendations made to the 
     President by individuals who represent such entities or 
     groups.
       ``(B) Entities or groups.--Entities or groups described in 
     this subparagraph are--
       ``(i) literacy organizations and providers of literacy 
     services, including--

[[Page S 14938]]


       ``(I) providers of literacy services receiving assistance 
     under this Act; and
       ``(II) nonprofit providers of literacy services;

       ``(ii) businesses that have demonstrated interest in 
     literacy programs;
       ``(iii) literacy students;
       ``(iv) experts in the area of literacy research;
       ``(v) State and local governments; and
       ``(vi) organized labor.
       ``(2) Duties.--The Council shall--
       ``(A) make recommendations concerning the appointment of 
     the Director and staff of the Institute;
       ``(B) provide independent advice on the operation of the 
     Institute; and
       ``(C) receive reports from the Federal Partnership and the 
     Director.
       ``(3) Federal advisory committee act.--Except as otherwise 
     provided, the Council established by this subsection shall be 
     subject to the provisions of the Federal Advisory Committee 
     Act.
       ``(4) Appointment.--
       ``(A) Duration.--Each member of the Council shall be 
     appointed for a term of 3 years. Any such member may be 
     appointed for not more than 2 consecutive terms.
       ``(B) Vacancies.--Any member appointed to fill a vacancy 
     occurring before the expiration of the term for which the 
     member's predecessor was appointed shall be appointed only 
     for the remainder of that term. A member may serve after the 
     expiration of that members' term until a successor has taken 
     office. A vacancy in the Council shall be filled in the 
     manner in which the original appointment was made. A vacancy 
     in the Council shall not affect the powers of the Council.
       ``(5) Quorum.--A majority of the members of the Council 
     shall constitute a quorum but a lesser number may hold 
     hearings. Any recommendation may be passed only by a majority 
     of its members present.
       ``(6) Election of officers.--The Chairperson and Vice 
     Chairperson of the Council shall be elected by the members. 
     The term of office of the Chairperson and Vice Chairperson 
     shall be 2 years.
       ``(7) Meetings.--The Council shall meet at the call of the 
     Chairperson or a majority of its members.
       ``(e) Gifts, Bequests, and Devises.--The Institute and the 
     Council may accept (but not solicit), use, and dispose of 
     gifts, bequests, or devises of services or property, both 
     real and personal, for the purpose of aiding or facilitating 
     the work of the Institute or the Council, respectively. 
     Gifts, bequests, or devises of money and proceeds from sales 
     of other property received as gifts, bequests, or devises 
     shall be deposited in the Treasury and shall be available for 
     disbursement upon order of the Institute or the Council, 
     respectively.
       ``(f) Mails.--The Council and the Institute may use the 
     United States mails in the same manner and under the same 
     conditions as other departments and agencies of the United 
     States.
       ``(g) Staff.--The Director of the Federal Partnership, 
     after considering recommendations made by the Council, shall 
     appoint and fix the pay of a Director of the Institute and 
     staff of the Institute.
       ``(h) Applicability of Certain Civil Service Laws.--The 
     Director of the Institute and staff of the Institute may be 
     appointed without regard to the provisions of title 5, United 
     States Code, governing appointments in the competitive 
     service, and may be paid without regard to the provisions of 
     chapter 51 and subchapter III of chapter 53 of that title 
     relating to classification and General Schedule pay rates, 
     except that an individual so appointed may not receive pay in 
     excess of the annual rate of basic pay payable for GS-15 of 
     the General Schedule.
       ``(i) Experts and Consultants.--The Council and the 
     Institute may procure temporary and intermittent services 
     under section 3109(b) of title 5, United States Code.
       ``(j) Report.--The Institute shall submit a report 
     biennially to the Committee on Economic and Educational 
     Opportunities of the House of Representatives and the 
     Committee on Labor and Human Resources of the Senate. Each 
     report submitted under this subsection shall include--
       ``(1) a comprehensive and detailed description of the 
     Institute's operations, activities, financial condition, and 
     accomplishments in the field of literacy for such fiscal 
     year;
       ``(2) a description of how plans for the operation of the 
     Institute for the succeeding fiscal year will facilitate 
     achievement of the goals of the Institute and the goals of 
     the literacy programs within the Federal Partnership, the 
     Department of Education, the Department of Labor, and the 
     Department of Health and Human Services; and
       ``(3) any additional minority, or dissenting views 
     submitted by members of the Council.
       ``(k) Funding.--Any amounts appropriated to the Federal 
     Partnership, the Secretary of Education, the Secretary of 
     Labor, or the Secretary of Health and Human Services for 
     purposes that the Institute is authorized to perform under 
     this section may be provided to the Institute for such 
     purposes.''.

     SEC. 242. STATE LITERACY RESOURCE CENTERS.

       Section 103 of the National Literacy Act of 1991 is amended 
     to read as follows:

     ``SEC. 103. STATE LITERACY RESOURCE CENTERS.

       ``(a) Purpose.--The purpose of this section is to establish 
     a network of State or regional adult literacy resource 
     centers to assist State and local public and private 
     nonprofit efforts to eliminate illiteracy by--
       ``(1) stimulating the coordination of literacy services;
       ``(2) enhancing the capacity of State and local 
     organizations to provide literacy services; and
       ``(3) serving as a reciprocal link between the National 
     Institute for Literacy established under section 102 and 
     service providers for the purpose of sharing information, 
     data, research, and expertise and literacy resources.
       ``(b) Establishment.--From amounts appropriated pursuant to 
     section 124(b)(6) of the Workforce Development Act of 1995, 
     the Secretary of Labor and the Secretary of Education, acting 
     jointly on the advice of the Federal Partnership, are 
     authorized to make grants for purposes of establishing a 
     network of State or regional adult literacy resource centers.
       ``(c) Allotment.--
       ``(1) In general.--From sums available for purposes of 
     making grants under this section for any fiscal year, the 
     Secretary of Labor and the Secretary of Education, acting 
     jointly on the advice of the Federal Partnership, shall allot 
     to each State having an application approved under subsection 
     (f) an amount that bears the same ratio to such sums as the 
     amount allotted to such State--
       ``(A) in the case of fiscal years 1996, 1997, and 1998 
     under section 313(b) of the Adult Education Act (20 U.S.C. 
     1201(b)) for fiscal year 1995 for the purpose of making 
     grants under section 321 of such Act (20 U.S.C. 1203), bears 
     to the aggregate amount allotted to all States under such 
     section for fiscal year 1995 for such purpose; and
       ``(B) in the case of fiscal years 1999, 2000, and 2001, 
     under section 102 of the Workforce Development Act of 1995 
     for the fiscal year preceding the fiscal year for which the 
     determination is made, bears to the aggregate amount allotted 
     to all States under such section for such preceding fiscal 
     year.
       ``(2) Contracts.--The chief executive officer of each State 
     that receives its allotment under this section shall contract 
     on a competitive basis with the State educational agency, 1 
     or more local educational agencies, a State office on 
     literacy, a volunteer organization, a community-based 
     organization, an institution of higher education, or another 
     nonprofit entity to operate a State or regional literacy 
     resource center. No applicant participating in a competition 
     pursuant to the preceding sentence shall participate in the 
     review of its own application.
       ``(d) Use of Funds.--Funds provided to each State under 
     subsection (c)(1) to carry out this section shall be used to 
     conduct activities to--
       ``(1) improve and promote the diffusion and adoption of 
     state-of-the-art teaching methods, technologies and program 
     evaluations;
       ``(2) develop innovative approaches to the coordination of 
     literacy services within and among States and with the 
     Federal Government;
       ``(3) assist public and private agencies in coordinating 
     the delivery of literacy services;
       ``(4) encourage government and industry partnerships, 
     including partnerships with small businesses, private 
     nonprofit organizations, and community-based organizations;
       ``(5) encourage innovation and experimentation in literacy 
     activities that will enhance the delivery of literacy 
     services and address emerging problems;
       ``(6) provide technical and policy assistance to State and 
     local governments and service providers to improve literacy 
     policy and programs and access to such programs;
       ``(7) provide training and technical assistance to literacy 
     instructors in reading instruction and in--
       ``(A) selecting and making the most effective use of state-
     of-the-art methodologies, instructional materials, and 
     technologies such as--
       ``(i) computer assisted instruction;
       ``(ii) video tapes;
       ``(iii) interactive systems; and
       ``(iv) data link systems; or
       ``(B) assessing learning style, screening for learning 
     disabilities, and providing individualized remedial reading 
     instruction; or
       ``(8) encourage and facilitate the training of full-time 
     professional adult educators.
       ``(e) Alternative Uses of Equipment.--Equipment purchases 
     pursuant to this section, when not being used to carry out 
     the provisions of this section, may be used for other 
     instructional purposes if--
       ``(1) the acquisition of the equipment was reasonable and 
     necessary for the purpose of conducting a properly designed 
     project or activity under this section;
       ``(2) the equipment is used after regular program hours or 
     on weekends; and
       ``(3) such other use is--
       ``(A) incidental to the use of the equipment under this 
     section;
       ``(B) does not interfere with the use of the equipment 
     under this section; and
       ``(C) does not add to the cost of using the equipment under 
     this section.
       ``(f) Applications.--Each State or group of States, as 
     appropriate, that desires to receive a grant under this 
     section for a regional adult literacy resource center, a 
     State adult literacy resource center, or both, shall submit 
     to the Federal Partnership an application that describes how 
     the State or group of States will--
       ``(1) develop a literacy resource center or expand an 
     existing literacy resource center;
       ``(2) provide services and activities with the assistance 
     provided under this section;
       ``(3) assure access to services of the center for the 
     maximum participation of all public 

[[Page S 14939]]
     and private programs and organizations providing or seeking to provide 
     basic skills instruction, including local educational 
     agencies, agencies responsible for corrections education, 
     welfare agencies, labor organizations, businesses, volunteer 
     groups, and community-based organizations;
       ``(4) address the measurable goals for improving literacy 
     levels as set forth in the plan submitted pursuant to section 
     104 of the Workforce Development Act of 1995; and
       ``(5) develop procedures for the coordination of literacy 
     activities for statewide and local literacy efforts conducted 
     by public and private organizations, and for enhancing the 
     systems of service delivery.
       ``(g) Payments; Federal Share.--
       ``(1) Payments.--The Secretary of Labor and the Secretary 
     of Education, acting jointly on the advice of the Federal 
     Partnership, shall pay to each State having an application 
     approved pursuant to subsection (f) the Federal share of the 
     cost of the activities described in the application.
       ``(2) Federal share.--The Federal share--
       ``(A) for each of the first 2 fiscal years in which the 
     State receives funds under this section shall not exceed 80 
     percent;
       ``(B) for each of the third and fourth fiscal years in 
     which the State receives funds under this section shall not 
     exceed 70 percent; and
       ``(C) for the fifth and each succeeding fiscal year in 
     which the State receives funds under this section shall not 
     exceed 60 percent.
       ``(3) Non-federal share.--The non-Federal share of payments 
     under this section may be in cash or in kind, fairly 
     evaluated, including plant, equipment, or services.
       ``(h) Regional Centers.--
       ``(1) In general.--A group of States may enter into an 
     interstate agreement to develop and operate a regional adult 
     literacy resource center for purposes of receiving assistance 
     under this section if the States determine that a regional 
     approach is more appropriate for their situation.
       ``(2) Requirements.--Any State that receives assistance 
     under this section as part of a regional center shall only be 
     required to provide under subsection (g) 50 percent of the 
     funds such State would otherwise be required to provide under 
     such subsection.
       ``(3) Minimum.--In any fiscal year in which the amount a 
     State will receive under this section is less than $100,000, 
     the Federal Partnership may designate the State to receive 
     assistance under this section only as part of a regional 
     center.
       ``(4) Inapplicability.--The provisions of paragraph (3) 
     shall not apply to any State that can demonstrate to the 
     Federal Partnership that the total amount of Federal, State, 
     local and private funds expended to carry out the purposes of 
     this section would equal or exceed $100,000.
       ``(5) Special rule.--In any fiscal year in which paragraph 
     (2) applies, the Federal Partnership may allow certain States 
     that receive assistance as part of a regional center to 
     reserve a portion of such assistance for a State adult 
     literacy resource center pursuant to this section.''.

     SEC. 243. NATIONAL WORKFORCE LITERACY ASSISTANCE 
                   COLLABORATIVE.

       Subsection (c) of section 201 of the National Literacy Act 
     of 1991 (20 U.S.C. 1211-1) is repealed.

     SEC. 244. FAMILY LITERACY PUBLIC BROADCASTING PROGRAM.

       Section 304 of the National Literacy Act of 1991 (20 U.S.C. 
     1213c note) is repealed.

     SEC. 245. MANDATORY LITERACY PROGRAM.

       Paragraph (3) of section 601(i) of the National Literacy 
     Act of 1991 (20 U.S.C. 1211-2(i) is amended--
       (1) by striking ``1994, and'' and inserting ``1994,''; and
       (2) by inserting ``, and such sums as may be necessary for 
     each of the fiscal years 1996, 1997, 1998, 1999, 2000, and 
     2001'' before the period.

       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.''.
                                 ______


                JEFFORDS (AND OTHERS) AMENDMENT NO. 2886

  Mr. PELL (for Mr. Jeffords, for himself, Mr. Pell, and Mr. Leahy) 
proposed an amendment to amendment No. 2885 proposed by Mrs. Kassebaum 
to the bill S. 143, supra, as follows:

       On page 77, strike lines 7 through 18, and insert the 
     following:
       (4) State determinations.--From the amount available to a 
     State educational agency under paragraph (2)(B) for a program 
     year, such agency shall distribute such funds for workforce 
     education activities in such State as follows:
       (A) 75 percent of such amount shall be distributed for 
     secondary school vocational education in accordance with 
     section 112, or for postsecondary and adult vocational 
     education in accordance with section 113, or for both; and
       (B) 25 percent of such amount shall be distributed for 
     adult education in accordance with section 114.
                                 ______


                MOYNIHAN (AND OTHERS) AMENDMENT NO. 2887

  Mr. MOYNIHAN (for himself, Mr. Wellstone, Mr. Kennedy, and Mr. 
Rockefeller) proposed an amendment to amendment No. 2885 proposed by 
Mrs. Kassebaum to the bill S. 143, supra, as follows:

       On page 217, beginning on line 14, strike all through line 
     17.
       On page 217, line 18, strike ``(2)'' and insert ``(1)''.
       On page 217, line 20, strike ``(3)'' and insert ``(2)''.
       On page 217, line 22, strike ``(4)'' and insert ``(3)''.
       On page 217, line 24, strike ``(5)'' and insert ``(4)''.
       On page 218, line 1, strike ``(6)'' and insert ``(5)''.
       On page 220, beginning on line 1, strike all through page 
     225, line 6.
       On page 225, line 7, strike ``(2)'' and insert ``(1)''.
       On page 227, line 8, strike ``(3)'' and insert ``(2)''.
       On page 232, line 10, strike ``(4)'' and insert ``(3)''.
       On page 232, line 15, strike ``(3)'' and insert ``(2)''.
       On page 233, line 1, strike ``(3)'' and insert ``(2)''.
       On page 233, line 6, strike ``(3)'' and insert ``(2)''.
       On page 233, line 17, strike ``(3)'' and insert ``(2)''.
       On page 234, line 6, strike ``(5)'' and insert ``(4)''.
       On page 242, lines 11 and 12, strike ``(as amended in 
     paragraph (1)(G)(i) is further amended'' and insert ``is 
     amended''.
       On page 245, line 15, strike ``(2)'' and insert ``(1)''.
       On page 260, line 9, strike ``(6)'' and insert ``(5)''.
                                 ______


                        GRAMS AMENDMENT NO. 2888

  Mr. GRAMS proposed an amendment to amendment No. 2885 proposed by 
Mrs. Kassebaum to the bill S. 143, supra, as follows:

       On page 30, between lines 6 and 7, insert the following:
       (5) State option for integrated plan.--Notwithstanding any 
     other provision of this subsection, with the express written 
     agreement of the Governor, the State educational agency, the 
     State postsecondary education agency, and representatives of 
     vocational education and community colleges, of a State, the 
     Governor may develop all parts of the State plan, using 
     procedures that are consistent with the procedures described 
     in subsection (d). Nothing in this section shall be construed 
     to require a Governor who develops an integrated State plan 
     under this paragraph to duplicate any information contained 
     in 1 part of the plan in another part of the plan.
       Beginning on page 114, strike line 15 and all that follows 
     through page 115, line 13, and insert the following:
       (1) Failure to demonstrate sufficient progress.--
       (A) Finding.--If the Federal Partnership 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 121(c) for the 3 
     years covered by a State plan described in section 104, the 
     Federal Partnership shall--
       (i) make a finding regarding whether the failure is 
     attributable to the workforce employment activities, or 
     workforce education activities, of the State; and
       (ii) provide advice to the Secretary of Labor and the 
     Secretary of Education.
       (B) Reductions.--
       (i) Failure attributable to both categories.--Except as 
     provided in subparagraph (C), if the Federal Partnership 
     finds that the failure referred to in subparagraph (A) is 
     attributable to both categories referred to in subparagraph 
     (A)(i), the Secretary of Labor and the Secretary of 
     Education, acting jointly on the advice of the Federal 
     Partnership, 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.
       (ii) Failure attributable to one category.--Unless the 
     Governor of the State has developed an integrated State plan 
     under section 104(b)(5), if the Federal Partnership finds 
     that the failure referred to in subparagraph (A) is 
     attributable to 1 category of activities referred to in 
     subparagraph (A)(i) but not to the remaining category, the 
     Secretary of Labor and the Secretary of Education, acting 
     jointly on the advice of the Federal Partnership, may decide 
     to reduce only the portion of the allotment for the category 
     of activities to which the failure is attributable.
       (C) Combination and reduction.--Notwithstanding sections 
     103 and 111, if the Federal Partnership finds that the 
     Governor of the State has developed an integrated State plan 
     under section 104(b)(5), and the failure referred to in 
     subparagraph (A) is attributable to 1 category of activities 
     referred to in subparagraph (A)(i) but not to the remaining 
     category, the Secretary of Labor and the Secretary of 
     Education, acting jointly on the advice of the Federal 
     Partnership, in lieu of making a reduction under subparagraph 
     (B), shall--
       (i) reduce the portion of the allotment for the category of 
     activities to which the failure is attributable by a 
     percentage determined by the Secretaries, but not to exceed 5 
     percent of such portion, for a period determined by the 
     Secretaries;
       (ii) require the State to combine, for such period--

[[Page S 14940]]

       (I) an additional percentage, equal to the percentage 
     determined under clause (i), of the funds made available 
     through such portion; and
       (II) the funds made available to the State under this 
     subtitle for the remaining category; and
       (iii) require the State to expend the combined funds in 
     accordance with the strategic plan of the State referred to 
     in section 104(b)(2) to carry out the remaining category of 
     activities.
       (D) Construction.--Notwithstanding any other provision of 
     this title, funds referred to in subparagraph (C)(ii)(I) that 
     are combined under subparagraph (C) shall be considered--
       (i) to be made available under section 103(a)(1) if the 
     combined funds are required to be expended for workforce 
     employment activities; and
       (ii) to be made available under section 103(a)(2) if the 
     combined funds are required to be expended for workforce 
     education activities.
                                 ______


                        GLENN AMENDMENT NO. 2889

  Mr. GLENN proposed an amendment to the amendment No. 2885 proposed by 
Mrs. Kassebaum to the bill S. 143, supra as follows:

       On page 11, strike lines 4 through 10 and insert the 
     following:
       (9) Displaced homemaker.--The term ``displaced homemaker'' 
     means an individual who--
       (A) has been dependent--
       (i) on assistance under part A of title IV of the Social 
     Security Act and whose youngest child is not younger than 16; 
     or
       (ii) on the income of another family member, but is no 
     longer supported by such income; and
       (B) is unemployed or underemployed, and is experiencing 
     difficulty in obtaining or upgrading employment.
       On page 50, line 9, strike ``and''.
       On page 50, line 12, strike the period and insert ``; 
     and''.
       On page 50, between lines 12 and 13, insert the following:
       (P) preemployment training for displaced homemakers.
       On page 54, between lines 10 and 11, insert the following:
       (6) providing programs for single parents, displaced 
     homemakers, and single pregnant women;
       On page 54, line 11, strike ``(6)'' and insert ``(7)''.
       On page 54, line 13, strike ``(7)'' and insert ``(8)''.
       On page 108, line 15, strike ``and''.
       On page 108, line 16, strike the period and insert ``; 
     and''.
       On page 108, between lines 16 and 17, insert the following:
       (F) displaced homemakers.
                                 ______


                 BREAUX (AND OTHERS) AMENDMENT NO. 2890

  Mr. BREAUX (for himself, Mr. Daschle, Mr. Kennedy, and Mr. Pell) 
proposed an amendment to the amendment No. 2885 proposed by Mrs. 
Kassebaum to the bill S. 143, supra, as follows:

       On page 51, line 6, strike ``deliver'' and insert 
     ``deliver, to persons age 18 or older who are unable to 
     obtain Pell Grants under title IV of the Higher Education Act 
     of 1965 (20 U.S.C. 1070 et seq.),''.
       On page 53, between lines 12 and 13, insert the following:
       (D) Information.--A State that determines that a need 
     exists to train persons age 18 or older through activities 
     authorized under paragraph (6) shall indicate in the State 
     plan described in section 104 for the State, or the annual 
     report described in section 121(a) for the State, the extent, 
     if any, to which the State will use the authority of this 
     paragraph to deliver some or all of such activities through a 
     system of vouchers, including indicating the information and 
     timeframes required under subparagraph (C).
       On page 104, line 2, strike ``or''.
       On page 104, line 7, strike the period and insert: ``; 
     or''.
       On page 104, between lines 7 and 8, insert the following:
       (3) beginning with program year 2000, in the case of a 
     State that elects to offer activities for persons age 18 or 
     older under section 106(a)(6), the State uses the authority 
     of section 106(a)(9) to deliver some or all of such 
     activities through a system of vouchers.
       On page 114, line 3, strike ``or''.
       On page 114, line 9, strike the period and insert ``; or''.
       On page 114, between lines 9 and 10, insert the following:
       (C) in the case of a State that elects to offer activities 
     for persons age 18 or older under section 106(a)(6), uses the 
     authority of section 106(a)(9) to deliver some or all of such 
     activities through a system of vouchers.
                                 ______


                   DODD (AND PELL) AMENDMENT NO. 2891

  Mr. DODD (for himself and Mr. Pell) proposed an amendment to 
amendment No. 2885 proposed by Mrs. Kassebaum to the bill S. 143, 
supra, as follows:

       On page 7, line 19, strike ``186(c)'' and insert 
     ``187(c)''.
       On page 74, between lines 7 and 8, insert the following:

     SEC. 108. MIGRANT OR SEASONAL FARMWORKER PROGRAM.

       (a) General Authority.--Using funds made available under 
     section 124(b)(3), the Secretary of Labor and the Secretary 
     of Education, acting jointly on the advice of the Federal 
     Partnership, shall make grants to, or enter into contracts 
     with, entities to carry out the activities described in 
     subsection (d).
       (b) Eligible Entities.--To be eligible to receive a grant 
     or enter into a contract under this section, an entity shall 
     have an understanding of the problems of migrant or seasonal 
     farmworkers, a familiarity with the area to be served, and a 
     previously demonstrated capacity to administer effectively a 
     diversified program of workforce development activities for 
     migrant or seasonal farmworkers.
       (c) Program Plan.--
       (1) In general.--To be eligible to receive a grant or enter 
     into a contract under this section, an entity described in 
     subsection (b) shall submit to the Federal Partnership a plan 
     that describes a 3-year strategy for meeting the needs of 
     migrant or seasonal farmworkers in the area to be served by 
     such entity.
       (2) Contents.--Such plan shall--
       (A) identify the education and employment needs of the 
     population to be served and the manner in which the services 
     to be provided will strengthen the ability of the individuals 
     served to obtain or be retained in unsubsidized employment;
       (B) describe the services to be provided and the manner in 
     which such services are to be integrated with other 
     appropriate services; and
       (C) describe the goals and benchmarks to be used to assess 
     the performance of such entity in carrying out the activities 
     assisted under this section.
       (d) Authorized Activities.--Funds made available under this 
     section shall be used to carry out comprehensive workforce 
     development activities, and related services, for migrant or 
     seasonal farmworkers.
       (e) Consultation with State and Local Partnerships and 
     Boards.--In making grants and entering into contracts under 
     this section, the Federal Partnership shall consult with the 
     Governors (or, where established, the State workforce 
     development boards described in section 105) and with local 
     partnerships (or, where established, the local workforce 
     development boards described in section 118(b)).
       On page 74, line 8, strike ``108.'' and insert ``109.''.
       On page 74, line 10, strike ``124(b)(3)'' and insert 
     ``124(b)(4)''.
       On page 117, line 7, strike ``92.7'' and insert ``90.75''.
       On page 117, strike lines 11 through 15 and insert the 
     following:
       (3) 1.25 percent shall be reserved for carrying out section 
     108;
       (4) 0.2 percent shall be reserved for carrying out section 
     109;
       (5) 5.0 percent shall be reserved for making incentive 
     grants under section 122(a), for making national 
     discretionary grants under section 184, and for the 
     administration of this title;
       On page 117, line 16, strike ``(5)'' and insert ``(6)''.
       On page 117, line 18, strike ``(6)'' and insert ``(7)''.
       On page 117, line 19, strike ``184 and 185'' and insert 
     ``185 and 186''.
       On page 162, line 17, strike ``186(c)'' and insert 
     ``187(c)''.
       On page 163, line 4, strike ``108, and 173'' and insert 
     ``108, 109, 173, and 184''.
       On page 163, line 6, strike ``108, 122(a), 161, and 184'' 
     and insert ``108, 109, 122(a), 161, 184, and 185''.
       On page 163, lines 12 and 13, strike ``186(c) and 187(b)'' 
     and insert ``187(c) and 188(b)''.
       On page 166, line 22, strike ``186(c)'' and insert 
     ``187(c)''.
       On page 183, between lines 8 and 9, insert the following:

     SEC. 184. NATIONAL DISCRETIONARY GRANTS.

       (a) National Grants.--Using funds made available under 
     section 124(b)(5), the Secretary of Labor and the Secretary 
     of Education, acting jointly on the advice of the Federal 
     Partnership, may in a timely manner award a national grant--
       (1) to an eligible entity described in subsection (b) to 
     carry out the activities described in such subsection; and
       (2) at the request of an officer described in subsection 
     (c), to such an officer to carry out the activities described 
     in such subsection.
       (b) Rapid Response Grants.--
       (1) In general.--
       (A) Major economic dislocation.--Funds made available under 
     this section to an eligible entity described in this 
     subsection may be used to provide adjustment assistance to 
     workers affected by a major economic dislocation that results 
     from a closure, layoff, or realignment described in section 
     3(8)(B).
       (B) Emergency determination.--Such funds may also be used 
     to provide adjustment assistance to dislocated workers 
     whenever the Federal Partnership (with the agreement of the 
     Governor involved) determines that an emergency exists with 
     respect to any particular distressed industry or any 
     particularly distressed area. The Federal Partnership may 
     make arrangements for the immediate provision of such 
     emergency financial assistance for the purposes of this 
     subsection with any necessary supportive documentation to be 
     submitted on a date agreed to by the Governor and the Federal 
     Partnership.

[[Page S 14941]]

       (2) Eligible entities.--To be eligible to receive a grant 
     under this section for activities described in this 
     subsection, an eligible entity shall be a State or local 
     entity.
       (3) Application.--To be eligible to receive a grant under 
     this section for activities described in this subsection, an 
     eligible entity shall submit an application to the Federal 
     Partnership at such time, in such manner, and containing such 
     information as the Federal Partnership determines to be 
     appropriate.
       (c) Disaster Relief Employment Assistance.--
       (1) In general.--Funds made available under this section to 
     officers described in this subsection shall be used solely to 
     provide individuals in a disaster area with employment in 
     projects to provide clothing, shelter, and other humanitarian 
     assistance for disaster victims and in projects regarding the 
     demolition, cleanup, repair, renovation, and reconstruction 
     of damaged and destroyed structures, facilities, and lands 
     located within the disaster area.
       (2) Officers.--To be eligible to receive a grant under this 
     section for activities described in this subsection, an 
     officer shall be a chief executive officer of a State within 
     which is located an area that has suffered an emergency or a 
     major disaster as defined in paragraph (1) or (2), 
     respectively, of section 102 of the Robert T. Stafford 
     Disaster Relief and Emergency Assistance Act (42 U.S.C. 
     5122(1) and (2)) (referred to in this section as a ``disaster 
     area'').
       On page 183, line 9, strike ``184.'' and insert ``185.''.
       On page 183, line 12, strike ``124(b)(6)'' and insert 
     ``124(b)(7)''.
       On page 188, line 4, strike ``185.'' and insert ``186.''
       On page 192, line 1, strike ``186.'' and insert ``187.''.
       On page 204, line 9, strike ``187.'' and insert ``188.''
       On page 207, line 16, strike ``186'' and insert ``187''.
       On page 207, line 21, strike ``186'' and insert ``187''.
       On page 207, line 24, strike ``186'' and insert ``187''.
       On page 208, line 2, strike ``186'' and insert ``187''.
       On page 208, line 6, strike ``186'' and insert ``187''.
       On page 208, line 17, strike ``186'' and insert ``187''.
       On page 211, line 17, strike ``188.'' and insert ``189.''.
       On page 216, line 10, strike ``187'' and insert ``188''.
       On page 293, line 9, strike ``186(c)'' and insert 
     ``187(c)''.
       On page 307, line 25, strike ``124(b)(6)'' and insert 
     ``124(b)(7)''.
                                 ______


                        CRAIG AMENDMENT NO. 2892

  Mr. CRAIG proposed an amendment to amendment No. 2885 proposed by 
Mrs. Kassebaum to the bill S. 143, supra; as follows:

       On page 105, strike lines 4 through 14 and insert the 
     following:
       (1) In general.--Each State that receives an allotment 
     under section 102 shall annually prepare and submit to the 
     Federal Partnership, a report that states how the State is 
     performing on State benchmarks, and the status and results of 
     any State evaluations specified in subsection (f), that 
     relate to workforce development activities (and workforce 
     preparation activities for at-risk youth) 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.
       On page 113, between line 15 and 16, insert the following:
       (f) Evaluation of State Programs.--
       (1) In general.--Each State that receives an allotment 
     under section 102 shall conduct ongoing evaluations of 
     workforce employment activities, flexible workforce 
     activities, and activities provided through Job Corps 
     centers, carried out in the State under this title.
       (2) Methods.--The State shall--
       (A) conduct such evaluations through controlled experiments 
     using experimental and control groups chosen by random 
     assignment;
       (B) in conducting the evaluations, determine, at a minimum, 
     whether job training and job placement services provided 
     through the activities described in paragraph (1) effectively 
     raise the hourly wage rates of individuals receiving the 
     services through such activities; and
       (C) conduct at least 1 such evaluation at any given time 
     during any period in which the State is receiving funding 
     under this title for such activities.
                                 ______


                      ASHCROFT AMENDMENT NO. 2893

  Mr. ASHCROFT proposed an amendment to amendment No. 2885 proposed by 
Mrs. Kassebaum to the bill S. 143, supra; as follows:

       On page 65, between lines 23 and 24, add the following 
     subsection:
       (i) Limitations on Participants.--
       (1) Finding.--Congress finds that--
       (A) the possession, distribution, and use of drugs by 
     participants in workforce employment activities should not be 
     tolerated, and that such use prevents participants from 
     making full use of the benefits extended through such 
     activities at the expense of taxpayers; and
       (B) applicants and participants should be tested for 
     illegal drug use, in order to maximize the training and 
     assistance provided under this Act.
       (2) Drug tests.--Each local entity carrying out workforce 
     employment activities described in subparagraph (A), (B), 
     (C), (D), (E), (G), (H), (J), or (K) of subsection (a)(6) 
     shall administer a drug test--
       (A) on a random basis, to individuals who apply to 
     participate in such activities; and
       (B) to a participant in such activities, on reasonable 
     suspicion of drug use by the participant.
       (3) Eligibility of applicants.--In order for such an 
     applicant to be eligible to participate in workforce 
     employment activities, the applicant shall agree to submit to 
     a drug test administered as described in paragraph (2) and, 
     if the test is administered to the applicant, shall pass the 
     test.
       (4) Eligibility of participants.--In order for such a 
     participant to be eligible to participate in workforce 
     employment activities described in subparagraph (A), (B), 
     (C), (D), (E), (G), (H), (J), or (K) of subsection (a)(6), 
     the individual shall agree to submit to a drug test 
     administered as described in paragraph (2) and, if the test 
     is administered to the participant, shall pass the test. If a 
     participant refuses to submit to the drug test, or fails the 
     drug test, the local entity shall dismiss the participant 
     from participation in the activities.
       (5) Reapplication.--
       (A) In general.--Except as provided in subparagraph (B), an 
     individual who is an applicant and is disqualified from 
     eligibility under paragraph (3), or who is a participant and 
     is dismissed under paragraph (4), may reapply, not earlier 
     than 6 months after the date of the disqualification or 
     dismissal, to participate in the workforce employment 
     activities described in subparagraph (A), (B), (C), (D), (E), 
     (G), (H), (J), or (K) of subsection (a)(6). If the individual 
     demonstrates that the individual has completed a drug 
     treatment program and passed a drug test within the past 30 
     days, the individual may participate in such activities, 
     under the same terms and conditions as apply to other 
     applicants and participants, including submission to drug 
     tests administered as described in paragraph (2).
       (B) Second disqualification or dismissal.--If the 
     individual reapplies to participate in the activities and 
     fails a drug test administered under paragraph (2) by the 
     local entity, while the individual is an applicant or a 
     participant, the local entity shall disqualify the individual 
     from eligibility for, or dismiss the individual from 
     participation in, the workforce employment activities. The 
     individual shall not be eligible to reapply for participation 
     in the activities for 2 years after such disqualification or 
     dismissal.
       (6) Appeal.--A decision by a local entity to disqualify an 
     individual from eligibility for participation in workforce 
     employment activities under paragraph (3) or (5), or to 
     dismiss a participant as described in paragraph (4) or (5), 
     shall be subject to expeditious appeal in accordance with 
     procedures established by the State in which the local entity 
     is located.
       (7) Definitions.--As used in this section:
       (A) Drug.--The term ``drug'' means a controlled substance, 
     as defined in section 102(6) of the Controlled Substance Act 
     (21 U.S.C. 802(6)).
       (B) Drug test.--The term ``drug test'' means a biochemical 
     drug test carried out by a facility that is approved by the 
     local entity administering the test.

                          ____________________