[Congressional Record Volume 142, Number 111 (Thursday, July 25, 1996)]
[House]
[Pages H8387-H8458]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




CONFERENCE REPORT ON H.R. 1617, WORKFORCE AND CAREER DEVELOPMENT ACT OF 
                                  1996

  Mr. GOODLING submitted the following conference report and statement 
on the bill (H.R. 1617) to consolidate and reform workforce development 
and literacy programs, and for other purposes:

                  Conference Report (H. Rept. 104-707)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendments of the Senate to the bill (H.R. 
     1617), to consolidate and reform workforce development and 
     literacy programs, and for other purposes, having met, after 
     full and free conference, have agreed to recommend and do 
     recommend to their respective Houses as follows:
       That the House recede from its disagreement to the 
     amendment of the Senate to the text of the bill and agree to 
     the same with an amendment as follows:
       In lieu of the matter proposed to be inserted by the Senate 
     amendment, insert the following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Workforce and Career 
     Development Act of 1996''.

     SEC. 2. TABLE OF CONTENTS.

       The table of contents is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Purpose and policy.
Sec. 4. Definitions.
Sec. 5. General provision.

      TITLE I--STATEWIDE WORKFORCE AND CAREER DEVELOPMENT SYSTEMS

                 Subtitle A--State and Local Provisions

Sec. 101. Statewide workforce and career development systems 
              established.
Sec. 102. State allotments.
Sec. 103. State apportionment by activity.
Sec. 104. State plan.
Sec. 105. Collaborative process.
Sec. 106. Accountability.
Sec. 107. Identification of eligible providers of training services.
Sec. 108. Local workforce development boards.

                         Subtitle B--Allocation

Sec. 111. Distribution for employment and training activities.
Sec. 112. Distribution for at-risk youth activities.

[[Page H8388]]

Sec. 113. Funding for State vocational education activities and 
              distribution for secondary school vocational education.
Sec. 114. Distribution for postsecondary and adult vocational 
              education.
Sec. 115. Special rules for vocational education.
Sec. 116. Distribution for adult education and literacy.
Sec. 117. Distribution for flexible activities.

                        Subtitle C--Use of Funds

Sec. 121. Employment and training activities.
Sec. 122. At-risk youth activities.
Sec. 123. Vocational education activities.
Sec. 124. Adult education and literacy activities.
Sec. 125. Flexible activities.
Sec. 126. Requirements and restrictions relating to use of funds.

                    Subtitle D--National Activities

Sec. 131. Coordination provisions.
Sec. 132. Incentive grants and sanctions.
Sec. 133. National emergency grants.
Sec. 134. Evaluation; research, demonstrations, dissemination, and 
              technical assistance.
Sec. 135. Migrant and seasonal farmworker program.
Sec. 136. Native American Program.
Sec. 137. Grants to outlying areas.
Sec. 138. National Institute for Literacy.
Sec. 139. Labor market information.

                   Subtitle E--Transition Provisions

Sec. 141. Waivers.
Sec. 142. Technical assistance.
Sec. 143. Applications and plans under covered Acts.
Sec. 144. Interim authorizations of appropriations.

                     Subtitle F--General Provisions

Sec. 151. Authorization of appropriations.
Sec. 152. Local expenditures contrary to title.
Sec. 153. Effective dates.

     TITLE II--WORKFORCE AND CAREER DEVELOPMENT-RELATED ACTIVITIES

            Subtitle A--Amendments to the Wagner-Peyser Act

Sec. 201. Definitions.
Sec. 202. Functions.
Sec. 203. Designation of State agencies.
Sec. 204. Appropriations.
Sec. 205. Disposition of allotted funds.
Sec. 206. State plans.
Sec. 207. Repeal of Federal Advisory Council.
Sec. 208. Regulations.
Sec. 209. Effective date.

        Subtitle B--Amendments to the Rehabilitation Act of 1973

Sec. 211. References.
Sec. 212. Findings and purposes.
Sec. 213. Definitions.
Sec. 214. Administration.
Sec. 215. Reports.
Sec. 216. Evaluation.
Sec. 217. Declaration of policy.
Sec. 218. State plans.
Sec. 219. Individualized employment plans.
Sec. 220. State Rehabilitation Advisory Council.
Sec. 221. Evaluation standards and performance indicators.
Sec. 222. Effective date.

                         Subtitle C--Job Corps

Sec. 231. Definitions.
Sec. 232. Purposes.
Sec. 233. Establishment.
Sec. 234. Individuals eligible for the Job Corps.
Sec. 235. Screening and selection of applicants.
Sec. 236. Enrollment and assignment.
Sec. 237. Job Corps centers.
Sec. 238. Program activities.
Sec. 239. Support.
Sec. 240. Operating plan.
Sec. 241. Standards of conduct.
Sec. 242. Community participation.
Sec. 243. Counseling and placement.
Sec. 244. Advisory committees.
Sec. 245. Application of provisions of Federal law.
Sec. 246. Special provisions.
Sec. 247. Review of Job Corps Centers.
Sec. 248. Administration.
Sec. 249. Authorization of appropriations.
Sec. 250. Effective date.

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

Sec. 261. Extension of functional literacy and life skills program for 
              State and local prisoners.

                    TITLE III--MUSEUMS AND LIBRARIES

Sec. 301. Museum and library services.
Sec. 302. National Commission on Libraries and Information Science.
Sec. 303. Transfer of functions from Institute of Museum Services.
Sec. 304. Service of individuals serving on date of enactment.
Sec. 305. Consideration.
Sec. 306. Transition and transfer of funds.

                       TITLE IV--HIGHER EDUCATION

Sec. 401. Reorganization of the Student Loan Marketing Association 
              through the formation of a holding company.
Sec. 402. Connie Lee privatization.
Sec. 403. Eligible institution.

               TITLE V--REPEALS AND CONFORMING AMENDMENTS

Sec. 501. Repeals.
Sec. 502. Conforming amendments.
Sec. 503. Effective dates.

     SEC. 3. PURPOSE AND POLICY.

       (a) Purpose.--The purpose of this Act is to transform the 
     vast array of Federal education, employment, and job training 
     programs from a collection of fragmented and duplicative 
     categorical programs into streamlined, coherent, and 
     accountable statewide systems designed--
       (1) to develop more fully the academic, occupational, and 
     literacy skills of all segments of the population of the 
     United States; and
       (2) to meet the needs of employers in the United States to 
     be competitive.
       (b) Policy.--It is the sense of the Congress that adult 
     education and literacy activities are a key component of any 
     successful statewide workforce and career development system.

     SEC. 4. DEFINITIONS.

       Except as otherwise specified in this Act, as used in this 
     Act:
       (1) Adult education.--The term ``adult education'' means 
     services or instruction below the postsecondary level for 
     individuals--
       (A) who have attained 16 years of age;
       (B) who are not enrolled or required to be enrolled in 
     secondary school;
       (C)(i) who lack sufficient mastery of basic educational 
     skills to enable the individuals to function effectively in 
     society; or
       (ii) who do not have a certificate of graduation from a 
     school providing secondary education and who have not 
     achieved an equivalent level of education; and
       (D) who lack a mastery of basic skills and are therefore 
     unable to speak, read, or write the English language.
       (2) Adult education and literacy activities.--The term 
     ``adult education and literacy activities'' means the 
     activities authorized in section 124.
       (3) All aspects of the industry.--The term ``all aspects of 
     the industry'' means strong experience in, and comprehensive 
     understanding of, the industry that individuals are preparing 
     to enter.
       (4) 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, or 
     community college, that operates under the policies of the 
     eligible agency and that provides vocational education in not 
     fewer than 5 different occupational fields leading to 
     immediate employment but not necessarily leading to a 
     baccalaureate degree, if the department or division admits as 
     regular students both individuals who have completed 
     secondary school and individuals who have left secondary 
     school.
       (5) At-risk youth.--The term ``at-risk youth'' means an 
     individual who--
       (A) is not less than age 15 and not more than age 21;
       (B) is low-income, defined as an individual who meets the 
     requirements of subparagraph (A), (B), or (C) of paragraph 
     (31); and
       (C) is 1 or more of the following:
       (i) A school dropout.
       (ii) Homeless, a runaway, or a foster child.
       (iii) Pregnant or a parent.
       (iv) An offender.
       (v) An individual who requires additional education, 
     training, counseling, or related assistance in order to 
     participate successfully in regular schoolwork, to complete 
     an educational program, or to secure and hold employment.
       (6) At-risk youth activities.--The term ``at-risk youth 
     activities'' means the activities authorized in section 122, 
     carried out for at-risk youth.
       (7) Career grant.--The term ``career grant'' means a 
     voucher or credit issued to a participant under subsection 
     (e)(3) or (g) of section 121 for the purchase of training 
     services from eligible providers of such services.
       (8) Career guidance and counseling.--The term ``career 
     guidance and counseling'' means a program that--
       (A) pertains to a body of subject matter and related 
     techniques and methods organized for the development of 
     career awareness, career planning, career decisionmaking, 
     placement skills, and knowledge and understanding of local, 
     State, and national occupational, educational, and labor 
     market needs, trends, and opportunities, in individuals;
       (B) assists such individuals in making and implementing 
     informed educational and occupational choices;
       (C) is comprehensive in nature; and
       (D) with respect to minors, includes the involvement of 
     parents, where practicable.
       (9) Chief elected official.--The term ``chief elected 
     official'' means the chief elected executive officer of a 
     unit of general local government in a local workforce 
     development area.
       (10) 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.
       (11) Cooperative education.--The term ``cooperative 
     education'' means a method of instruction of education for 
     individuals who, through written cooperative arrangements 
     between a school and employers, receive instruction, 
     including required academic courses and related instruction, 
     by alternation of study in school with a job in any 
     occupational field,

[[Page H8389]]

     which alternation shall be planned and supervised by the 
     school and employer so that each contributes to the education 
     and employability of the individual, and may include an 
     arrangement in which work periods and school attendance may 
     be on alternate half days, full days, weeks, or other periods 
     of time in fulfilling the cooperative program.
       (12) Covered activity.--The term ``covered activity'' means 
     an activity authorized to be carried out under a provision 
     described in section 501(f) (as such provision was in effect 
     on the day before the date of enactment of this Act).
       (13) Dislocated worker.--The term ``dislocated worker'' 
     means an individual who--
       (A)(i) has been terminated or laid off, or who has received 
     a notice of termination or layoff, from employment;
       (ii) is eligible for or has exhausted entitlement to 
     unemployment compensation; and
       (iii) is unlikely to return to a previous industry or 
     occupation;
       (B) has been terminated or laid off, or has received a 
     notice of termination or layoff, from employment as a result 
     of any permanent closure of, or any substantial layoff at, a 
     plant, facility, or enterprise;
       (C) has been unemployed long-term and has limited 
     opportunities for employment or reemployment in the same or a 
     similar occupation in the area in which such individual 
     resides;
       (D) was self-employed (including a farmer and a rancher) 
     but is unemployed as a result of general economic conditions 
     in the community in which the individual resides or because 
     of natural disasters;
       (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.
       (14) Displaced homemaker.--The term ``displaced homemaker'' 
     means an individual who--
       (A) has attained 16 years of age; and
       (B)(i) has worked primarily without remuneration to care 
     for a home and family, and for that reason has diminished 
     marketable skills; or
       (ii) is a parent whose youngest dependent child will become 
     ineligible to receive assistance under the program for aid to 
     families with dependent children under part A of title IV of 
     the Social Security Act (42 U.S.C. 601 et seq.) not later 
     than 2 years after the date on which the parent applies for 
     assistance under this title.
       (15) 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.
       (16) Eligible agency.--The term ``eligible agency'' means--
       (A) in the case of vocational education activities or 
     requirements described in title I--
       (i) the individual, entity, or agency in a State 
     responsible for administering or setting policies for 
     vocational education in such State pursuant to State law; or
       (ii) if no individual, entity, or agency is responsible for 
     administering or setting such policies pursuant to State law, 
     the individual, entity, or agency in a State responsible for 
     administering or setting policies for vocational education in 
     such State on the date of enactment of this Act; and
       (B) in the case of adult education and literacy activities 
     or requirements described in title I--
       (i) the individual, entity, or agency in a State 
     responsible for administering or setting policies for adult 
     education and literacy services in such State pursuant to 
     State law; or
       (ii) if no individual, entity, or agency is responsible for 
     administering or setting such policies pursuant to State law, 
     the individual, entity, or agency in a State responsible for 
     administering or setting policies for adult education and 
     literacy services in such State on the date of enactment of 
     this Act.
       (17) Eligible institution.--The term ``eligible 
     institution'', used with respect to vocational education 
     activities, means a local educational agency, an area 
     vocational education school, an educational service agency, 
     an institution of higher education (as such term is defined 
     in section 1201(a) of the Higher Education Act of 1965 (20 
     U.S.C. 1141(a))), a State corrections educational agency, and 
     a consortium of such entities.
       (18) Eligible provider.--The term ``eligible provider'', 
     used with respect to--
       (A) one-stop career centers, means a provider who is 
     designated or certified in accordance with section 
     108(d)(2)(A);
       (B) training services (other than on-the-job training), 
     means a provider who is identified in accordance with section 
     107;
       (C) at-risk youth activities, means a provider who is 
     awarded a grant in accordance with subsection (c) or (d) of 
     section 112;
       (D) vocational education activities described in section 
     123(b), means a provider determined to be eligible for 
     assistance in accordance with section 113 or 114;
       (E) adult education activities described in section 124(b), 
     means a provider determined to be eligible for assistance in 
     accordance with section 116; or
       (F) other workforce and career development activities, 
     means a public or private entity selected to be responsible 
     for such activities, in accordance with this title.
       (19) Employment and training activities.--The term 
     ``employment and training activities'' means the activities 
     authorized in section 121.
       (20) English literacy program.--The term ``English literacy 
     program'' means a program of instruction designed to help 
     individuals of limited English proficiency achieve full 
     competence in the English language.
       (21) Family and consumer sciences programs.--The term 
     ``family and consumer sciences programs'' means instructional 
     programs, services, and activities that prepare students for 
     personal, family, community, and career roles.
       (22) Family literacy services.--The term ``family literacy 
     services'' means services that are of sufficient intensity in 
     terms of hours, and of sufficient duration, to make 
     sustainable changes in a family and that integrate all of the 
     following activities:
       (A) Interactive literacy activities between parents and 
     their children.
       (B) Training for parents on how to be the primary teacher 
     for their children and full partners in the education of 
     their children.
       (C) Parent literacy training.
       (D) An age-appropriate education program for children.
       (23) Flexible activities.--The term ``flexible activities'' 
     means the activities authorized in section 125.
       (24) Individual of limited english proficiency.--The term 
     ``individual of limited English proficiency'' means an 
     individual--
       (A) who has limited ability in speaking, reading, or 
     writing the English language; and
       (B)(i) whose native language is a language other than 
     English; or
       (ii) who lives in a family or community environment where a 
     language other than English is the dominant language.
       (25) 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.
       (26) Labor market area.--The term ``labor market area'' 
     means an economically integrated geographic area within which 
     individuals can--
       (A) find employment within a reasonable distance from their 
     place of residence; or
       (B) readily change employment without changing their place 
     of residence.
       (27) Literacy.--The term ``literacy'', used with respect to 
     an individual, means the ability of the individual to speak, 
     read, and write English, and compute and solve problems, at 
     levels of proficiency necessary--
       (A) to function on the job, in the family of the 
     individual, and in society;
       (B) to achieve the goals of the individual; and
       (C) to develop the knowledge potential of the individual.
       (28) Local board.--The term ``local board'' means a local 
     workforce development board established under section 108.
       (29) Local educational agency.--The term ``local 
     educational agency'' has the meaning given such term in 
     section 14101 of the Elementary and Secondary Education Act 
     of 1965 (20 U.S.C. 8801).
       (30) Local workforce development area.--The term ``local 
     workforce development area'' means a local workforce 
     development area identified in accordance with section 
     104(b)(4).
       (31) Low-income individual.--The term ``low-income 
     individual'' means an individual who--
       (A) receives, or is a member of a family that receives, 
     cash welfare payments under a Federal, State, or local 
     welfare program;
       (B) had received an income, or is a member of a family that 
     had received a total family income, for the 6-month period 
     prior to application for the program involved (exclusive of 
     unemployment compensation, child support payments, and 
     payments described in subparagraph (A)) that, in relation to 
     family size, does not exceed the higher of--
       (i) 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)), for an equivalent period; or
       (ii) 70 percent of the lower living standard income level, 
     for an equivalent period;
       (C) is a member of a household that receives (or has been 
     determined within the 6-month period prior to application for 
     the program involved to be eligible to receive) food stamps 
     pursuant to the Food Stamp Act of 1977 (7 U.S.C. 2011 et 
     seq.);
       (D) qualifies as a homeless individual, as defined in 
     subsections (a) and (c) of section 103 of the Stewart B. 
     McKinney Homeless Assistance Act (42 U.S.C. 11302);
       (E) is a foster child on behalf of whom State or local 
     government payments are made; or
       (F) in cases permitted by regulations of the Secretary, is 
     an individual with a disability whose own income meets the 
     requirements of a program described in subparagraph (A) or of 
     subparagraph (B), but who is a member of a family whose 
     income does not meet such requirements.
       (32) Nontraditional employment.--The term ``nontraditional 
     employment'', refers to occupations or fields of work for 
     which individuals from one gender comprise less than 25 
     percent of the individuals employed in each such occupation 
     or field of work.
       (33) On-the-job training.--The term ``on-the-job training'' 
     means training in the public or private sector that is 
     provided to a paid participant while engaged in productive 
     work in a job that--
       (A) provides knowledge or skills essential to the full and 
     adequate performance of the job;
       (B) provides reimbursement to employers of up to 50 percent 
     of the wage rate of the participant, for the extraordinary 
     costs of providing the training and additional supervision 
     related to the training; and
       (C) is limited in duration as appropriate to the occupation 
     for which the participant is being trained.
       (34) Outlying area.--The term ``outlying area'' means the 
     United States Virgin Islands, Guam, American Samoa, the 
     Commonwealth of the Northern Mariana Islands, the Republic of 
     the Marshall Islands, the Federated States of Micronesia, and 
     the Republic of Palau.

[[Page H8390]]

       (35) Participant.--The term ``participant'', used with 
     respect to an activity carried out under this Act, means an 
     individual participating in the activity.
       (36) Pell grant recipient.--The term ``Pell Grant 
     recipient'' means a recipient of financial aid under subpart 
     1 of part A of title IV of the Higher Education Act of 1965 
     (20 U.S.C. 1070a et seq.).
       (37) Postsecondary educational institution.--The term 
     ``postsecondary educational institution'' means an 
     institution of higher education (as such term is defined in 
     section 481 of the Higher Education Act of 1965 (20 U.S.C. 
     1088)) that continues to meet the eligibility and 
     certification requirements under title IV of such Act (20 
     U.S.C. 1070 et seq.).
       (38) Rapid response assistance.--The term ``rapid response 
     assistance'' means assistance provided by a State, or by an 
     entity designated by a State, with funds provided by the 
     State under section 111(a)(2)(B), in the case of a permanent 
     closure or mass layoff at a plant, facility, or enterprise, 
     or a natural or other disaster, that results in mass job 
     dislocation, in order to assist dislocated workers in 
     obtaining reemployment as soon as possible, with services 
     including--
       (A) the establishment of onsite contact with employers and 
     employee representatives--
       (i) immediately after the State is notified of a current or 
     projected permanent closure or mass layoff; or
       (ii) in the case of a disaster, immediately after the State 
     is made aware of mass job dislocation as a result of such 
     disaster;
       (B) the provision of information and access to available 
     employment and training activities;
       (C) the provision of emergency assistance adapted to the 
     particular closure, layoff, or disaster; and
       (D) the provision of assistance to the local community in 
     developing a coordinated response and in obtaining access to 
     State economic development assistance.
       (39) School dropout.--The term ``school dropout'' means an 
     individual who is no longer attending any school and who has 
     not received a secondary school diploma or its recognized 
     equivalent.
       (40) Secondary school.--The term ``secondary school'' has 
     the meaning given the term in section 14101 of the Elementary 
     and Secondary Education Act of 1965 (20 U.S.C. 8801).
       (41) Secretaries.--The term ``Secretaries'' means the 
     Secretary of Labor and the Secretary of Education, in 
     accordance with the interagency agreement described in 
     section 131.
       (42) Sequential course of study.--The term ``sequential 
     course of study'' means an integrated series of courses that 
     are directly related to the educational and occupational 
     skill preparation of an individual for a job, or to 
     preparation for postsecondary education.
       (43) State.--The term ``State'' means each of the several 
     States of the United States, the District of Columbia, and 
     the Commonwealth of Puerto Rico.
       (44) State benchmarks.--The term ``State benchmarks'', used 
     with respect to a State, means--
       (A) the quantifiable benchmarks required under section 
     106(b) and identified in the report submitted under section 
     106(c); and
       (B) such other quantifiable benchmarks of the statewide 
     progress of the State toward meeting the State goals as the 
     State may identify in the report submitted under section 
     106(c).
       (45) State educational agency.--The term ``State 
     educational agency'' has the meaning given such term in 
     section 14101 of the Elementary and Secondary Education Act 
     of 1965 (20 U.S.C. 8801).
       (46) State goals.--The term ``State goals'', used with 
     respect to a State, means--
       (A) the goals specified in section 106(a); and
       (B) such other major goals of the statewide system of the 
     State as the State may identify in the report submitted under 
     section 106(c).
       (47) Statewide system.--The term ``statewide system'' means 
     a statewide workforce and career development system, referred 
     to in section 101, that includes employment and training 
     activities, activities carried out pursuant to the Wagner-
     Peyser Act (29 U.S.C. 49 et seq.), at-risk youth activities, 
     vocational education activities, and adult education and 
     literacy activities, in the State.
       (48) Supportive services.--The term ``supportive services'' 
     means services such as transportation, child care, dependent 
     care, and needs-based payments, that are necessary to enable 
     an individual to participate in employment and training 
     activities or at-risk youth activities.
       (49) 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 sequential course of study;
       (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.
       (50) Unit of general local government.--The term ``unit of 
     general local government'' means any general purpose 
     political subdivision of a State that has the power to levy 
     taxes and spend funds, as well as general corporate and 
     police powers.
       (51) Veteran.--The term ``veteran'' has the meaning given 
     such term in section 101(2) of title 38, United States Code.
       (52) 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.
       (53) Vocational education activities.--The term 
     ``vocational education activities'' means the activities 
     authorized in section 123.
       (54) 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.).
       (55) Vocational student organization.--The term 
     ``vocational student organization'' means an organization, 
     for individuals enrolled in programs of vocational education 
     activities, that engages in activities as an integral part of 
     the instructional component of such programs, which 
     organization may have State and national units.
       (56) Workforce and career development activities.--The term 
     ``workforce and career development activities'' means 
     employment and training activities, at-risk youth activities, 
     vocational education activities, and adult education and 
     literacy activities.

     SEC. 5. GENERAL PROVISION.

       None of the funds made available under this Act shall be 
     used--
       (1) to require any participant to choose or pursue a 
     specific career path or major;
       (2) to require any participant to enter into a specific 
     course of study that requires, as a condition of completion, 
     attainment of a federally funded or endorsed industry-
     recognized skill or standard; or
       (3) to require any participant to attain or obtain a 
     federally funded or endorsed industry-recognized skill, 
     certificate, or standard, unless the participant has selected 
     and is participating in a program or course of study that 
     requires, as a condition of completion, attainment of an 
     industry-recognized skill or standard.
      TITLE I--STATEWIDE WORKFORCE AND CAREER DEVELOPMENT SYSTEMS
                 Subtitle A--State and Local Provisions

     SEC. 101. STATEWIDE WORKFORCE AND CAREER DEVELOPMENT SYSTEMS 
                   ESTABLISHED.

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

     SEC. 102. STATE ALLOTMENTS.

       (a) In General.--The Secretaries shall allot to each State 
     that meets the requirements of subsection (e) 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 (42 U.S.C. 601 et seq.) who is not a 
     dependent child (as defined in section 406(a) of such Act (42 
     U.S.C. 606(a))).
       (B) Individual in poverty.--The term ``individual in 
     poverty'' means an individual who--
       (i) is not less than age 16;
       (ii) is not more than age 64; and
       (iii) is a member of a family (of 1 or more members) with 
     an income that does not exceed 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 151(b)(1), the 
     Secretaries--
       (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 Secretaries 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;
       (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

[[Page H8391]]

     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 151(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 
     Secretaries 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 
     151(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 
     Secretaries 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 
     Secretaries 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 151(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) 0.98; and
       (ii) the State percentage of the State for the preceding 
     program year; or
       (B) greater than the product obtained by multiplying--
       (i) 1.02; and
       (ii) the State percentage of the State for the preceding 
     program year.
       (e) Conditions.--The Secretaries shall allot funds under 
     subsection (a) to States that--
       (1) submit State plans that contain all of the information 
     required under section 104(b), including the identification 
     of State goals and State benchmarks; and
       (2) prepare the plans in accordance with the requirements 
     of sections 104 and 105 relating to the development of the 
     State plan.

     SEC. 103. STATE APPORTIONMENT BY ACTIVITY.

       (a) Activities.--From the funds made available to a State 
     through an allotment received under section 102 for a program 
     year--
       (1) a portion equal to 32 percent of such sum shall be made 
     available for employment and training activities;
       (2) a portion equal to 16 percent of such sum shall be made 
     available for at-risk youth activities;
       (3) a portion equal to 26 percent of such sum shall be made 
     available for vocational education activities;
       (4) a portion equal to 6 percent of such sum shall be made 
     available for adult education and literacy activities; and
       (5) a portion equal to 20 percent of such sum shall be made 
     available for flexible activities (which portion may be 
     referred to in this title as the ``flex account'');
     carried out through the statewide system.
       (b) Recipients.--Subject to subsection (c), funds allotted 
     to a State under section 102 shall be distributed--
       (1) to the Governor of the State for the portions described 
     in paragraphs (1) and (2) of subsection (a), and such part of 
     the flex account as the Governor may be eligible to receive, 
     as determined under the State plan submitted under section 
     104; and
       (2) to the eligible agencies in the State for the portions 
     described in paragraphs (3) and (4) of subsection (a), and 
     such part of the flex account as the eligible agencies may be 
     eligible to receive, as determined under the State plan 
     submitted under section 104.
       (c) Construction.--Nothing in this title shall be 
     construed--
       (1) to negate or supersede any State law that is not 
     inconsistent with the provisions of this title, including the 
     legal authority under State law of any State agency, State 
     entity, or State public official over programs that are under 
     the jurisdiction of the agency, entity, or official;
       (2) to interfere with the authority of such agency, entity, 
     or official to enter into a contract under any provision of 
     law; and
       (3) to prohibit any individual, entity, or agency in a 
     State that is administering activities described in section 
     123 or 124 prior to the date of enactment of this Act, or 
     setting education policies consistent with authority under 
     State law for such activities on the day preceding the date 
     of enactment of this Act, from continuing to administer such 
     activities or set such education policies consistent with 
     authority under State law for such activities and in 
     accordance with this title.
       (d) Smith-Hughes Vocational Education Act.--Notwithstanding 
     any other provision of law, the Secretary of Education shall 
     use funds appropriated under section 1 of the Act of February 
     23, 1917 (39 Stat. 929; 20 U.S.C. 11) (commonly known as the 
     ``Smith-Hughes Vocational Education Act'') to make allotments 
     to States. Such funds shall be allotted to each State in the 
     same manner and at the same time as allotments are made under 
     section 102. Section 103(a) shall not apply with respect to 
     such funds. The requirements of this title (other than 
     section 103(a)) shall apply to such funds to the same extent 
     that the requirements apply to funds made available under 
     section 103(a)(3).

     SEC. 104. STATE PLAN.

       (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 Secretaries a single comprehensive State plan 
     that outlines a 3-year strategy for the statewide system of 
     the State and that meets the requirements of section 105 and 
     this section.
       (b) Contents.--The State plan shall include--
       (1)(A) a description of the collaborative process described 
     in section 105 used in developing the plan, including a 
     description of the manner in which the individuals and 
     entities involved in the process collaborated in the 
     development of the plan; and
       (B)(i)(I) information demonstrating the support of the 
     individuals and entities participating in the collaborative 
     process for the State plan; and
       (II) the comments referred to in section 105(c)(2)(C), if 
     any; and
       (ii) information demonstrating the agreement, if any, of 
     the Governor and the eligible agencies on all elements of the 
     State plan;
       (2) a description of the State goals and State benchmarks 
     for workforce and career development activities, that 
     includes--
       (A) information identifying the State goals and State 
     benchmarks and how the goals and benchmarks will ensure 
     continuous improvement of the statewide system and make the 
     statewide system relevant and responsive to labor market and 
     education needs at the local level;
       (B) information identifying performance indicators that 
     relate to measurement of the State progress toward meeting 
     the State goals and reaching the State benchmarks; and
       (C) information describing how the State will coordinate 
     workforce and career development activities to meet the State 
     goals and reach the State benchmarks;
       (3) information describing--
       (A) the needs of the State with regard to current and 
     projected demands for workers, by occupation;
       (B) the skills and economic development needs of the State; 
     and
       (C) the type and availability of workforce and career 
     development activities in the State;
       (4)(A) an identification of local workforce development 
     areas in the State, including a description of the process 
     used for the designation of such areas, which shall take into 
     consideration labor market areas, service areas in which 
     related Federal programs are provided or historically have 
     been provided, and service areas in which related State 
     programs are provided or historically have been provided; or
       (B) 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), information stating that the State will 
     be treated as a local workforce development area for purposes 
     of the application of this title, at the election of the 
     State;
       (5) an identification of criteria for the appointment of 
     members of local workforce development boards, based on the 
     requirements of section 108;
       (6) a description of how the State will utilize the 
     statewide labor market information system described in 
     section 139(d);
       (7) a description of the measures that will be taken by the 
     State to assure coordination and consistency and avoid 
     duplication among activities receiving assistance under this 
     title, programs receiving assistance under title II, and 
     programs carried out under the Wagner-Peyser Act (29 U.S.C. 
     49 et seq.) or the Rehabilitation Act of 1973 (29 U.S.C. 701 
     et seq.), including a description of common data collection 
     and reporting processes;
       (8) a description of the process used by the State to 
     provide an opportunity for public comment, and input into the 
     development of the plan, prior to submission of the plan;
       (9) information identifying how the State will obtain the 
     active and continuous participation of business, industry, 
     and (as appropriate) labor in the development and continuous 
     improvement of the statewide system;
       (10) assurances that the State will provide for fiscal 
     control and fund accounting procedures that may be necessary 
     to ensure the proper disbursement of, and accounting for, 
     funds paid to the State through the allotment made under 
     section 102;
       (11) information describing the allocation within the State 
     of the funds made available through the flex account for the 
     State;

[[Page H8392]]

       (12) information identifying how any funds that a State 
     receives through the allotment made under section 102 will be 
     leveraged with other private and public resources (including 
     funds made available to the State under the Wagner-Peyser Act 
     (29 U.S.C. 49 et seq.)) to maximize the effectiveness of such 
     resources for all activities described in subtitle C, and 
     expand the participation of business, industry, employees, 
     and individuals in the statewide system;
       (13) information identifying how the workforce and career 
     development activities to be carried out with funds received 
     through the allotment made under section 102 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;
       (14) an assurance that the funds made available to the 
     State through the allotment made under section 102 will 
     supplement and not supplant other public funds expended to 
     provide activities described in subtitle C;
       (15) with respect to economic development activities 
     described in section 121(c)(1)(C), information describing--
       (A) any economic development activities that will be 
     carried out with the funds described in section 111(a)(2)(B);
       (B) how the activities will lead directly to increased 
     earnings of nonmanagerial employees in the State; and
       (C) whether the nonmanagerial employees (including labor, 
     as appropriate) support the activities;
       (16) with respect to employment and training activities, 
     information--
       (A) describing the employment and training activities that 
     will be carried out with the funds received by the State 
     through the allotment made under section 102, including a 
     description of how the State will provide rapid response 
     assistance to dislocated workers;
       (B) describing the strategy of the State (including the 
     timeframe for such strategy) for development of a fully 
     operational statewide one-stop career center system as 
     described in section 121(d), including--
       (i) criteria for use by local boards, with respect to the 
     designation or certification of one-stop career center 
     eligible providers, in each local workforce development area 
     in accordance with section 108(d)(4)(B)(i)(I);
       (ii) the steps that the State will take over the 3 years 
     covered by the plan to ensure that all publicly funded labor 
     exchange services described in section 121(e)(2) or 139, and 
     all such services authorized in the Wagner-Peyser Act (29 
     U.S.C. 49 et seq.), are provided through the one-stop career 
     center system of the State; and
       (iii) the steps that the State will take over the 3 years 
     covered by the plan to provide information to individuals 
     through the one-stop career center system on the quality of 
     workforce and career development activities, and vocational 
     rehabilitation program activities, as appropriate;
       (C) describing the procedures the State will use to 
     identify eligible providers of training services described in 
     section 121(e)(3), as required under this title;
       (D) describing how the State will serve the employment and 
     training needs of dislocated workers, low-income individuals, 
     and other individuals with multiple barriers to employment 
     (as determined by the State); and
       (E) describing how the State will establish and implement 
     the required career grant pilot program for dislocated 
     workers pursuant to section 121(g), including a description 
     of the size, scope, and quality of such program and a 
     description of how the State, after 3 years, will evaluate 
     such program and use the findings of the evaluation to 
     improve the delivery of training services described in 
     section 121(e)(3) for dislocated workers and other 
     participants under section 121;
       (17) with respect to at-risk youth activities, 
     information--
       (A) describing the at-risk youth activities that will be 
     carried out with funds received by the State through the 
     allotment made under section 102;
       (B) describing how the State will adequately address the 
     needs of at-risk youth in alternative education programs that 
     teach to the same challenging academic, occupational, and 
     skill proficiencies as are provided for all other students; 
     and
       (C) identifying the types of criteria the Governor and 
     local boards will use to identify effective and ineffective 
     at-risk youth activities and eligible providers of such 
     activities;
       (18) with respect to vocational education activities, 
     information--
       (A) describing the vocational education activities that 
     will be carried out with funds received by the State through 
     the allotment made under section 102;
       (B) describing the plan of the State to develop the 
     academic and occupational skills of students participating in 
     such vocational education activities, including--
       (i) the integration of academic and vocational education;
       (ii) the integration of classroom and worksite learning; 
     and
       (iii) linkages between secondary and postsecondary 
     education;
       (C) describing how the State will improve career guidance 
     and counseling;
       (D) describing how the State will promote the active 
     involvement of parents and business (including small- and 
     medium-sized businesses) in the planning, development, and 
     implementation of such vocational education activities;
       (E) describing how funds received by the State through the 
     allotment made under section 102 will be allocated among 
     secondary school vocational education, or postsecondary and 
     adult vocational education, or both;
       (F) describing how the State will adequately address the 
     needs of students who participate in such vocational 
     education activities to be taught to the same challenging 
     academic proficiencies as are provided for all other 
     students;
       (G) describing how the State will annually evaluate the 
     effectiveness of such vocational education activities;
       (H) describing how the State will address the professional 
     development needs of the State with respect to such 
     vocational education activities; and
       (I) describing how the State will provide local educational 
     agencies in the State with technical assistance; and
       (19) with respect to adult education and literacy 
     activities, information--
       (A) describing the adult education and literacy activities 
     that will be carried out with funds received by the State 
     through the allotment made under section 102;
       (B) describing how such adult education and literacy 
     activities described in the State plan and the State 
     allocation of funds received through the allotment made under 
     section 102 for such activities are an integral part of 
     comprehensive efforts of the State to improve education and 
     training for all individuals; and
       (C) describing how the State will annually evaluate the 
     effectiveness of such adult education and literacy 
     activities.
       (c) Special Rules.--
       (1) Governor.--The Governor of a State shall have final 
     authority to determine the content of the portion of the 
     State plan described in paragraphs (1) through (17) of 
     subsection (b).
       (2) Eligible agencies.--An eligible agency in a State shall 
     have final authority to determine the content of the portion 
     of the State plan described in paragraph (18) or (19) of 
     subsection (b), as appropriate.
       (d) Modifications to Plan.--A State may submit 
     modifications to the State plan in accordance with the 
     requirements of this section and section 105, as necessary, 
     during the 3-year period of the plan.

     SEC. 105. COLLABORATIVE PROCESS.

       (a) In General.--A State shall use a collaborative process 
     to develop the State plan described in section 104, through 
     which individuals and entities including, at a minimum--
       (1) the Governor;
       (2) representatives, appointed by the Governor, of--
       (A) business and industry;
       (B) local chief elected officials (representing both cities 
     and counties, where appropriate);
       (C) local educational agencies (including vocational 
     educators);
       (D) postsecondary institutions (including community and 
     technical colleges);
       (E) parents; and
       (F) employees (which may include labor);
       (3) the lead State agency official for--
       (A) the State educational agency;
       (B) the eligible agency for vocational education;
       (C) the eligible agency for adult education and literacy;
       (D) the State agency responsible for postsecondary 
     education; and
       (E) the State agency responsible for vocational 
     rehabilitation, and where applicable, the State agency 
     providing vocational rehabilitation program activities for 
     the blind;
       (4) such other State agency officials, including officials 
     responsible for economic development and employment, as the 
     Governor may designate;
       (5) representatives of the State legislature; and
       (6) the representative of the Veterans' Employment and 
     Training Service assigned to the State under section 4103 of 
     title 38, United States Code;

     shall collaborate in the development of the plan.
       (b) Alternative Processes.--
       (1) In general.--For purposes of complying with subsection 
     (a), a State may use any State collaborative process 
     (including any council, State workforce development board, or 
     similar entity) in existence on the date of enactment of this 
     Act that meets or is conformed to meet the requirements of 
     such subsection.
       (2) Functions of state human resources investment 
     councils.--If a State uses a State human resources investment 
     council in existence on the date of enactment of this Act, as 
     described in paragraph (1), the functions of such board shall 
     include--
       (A) advising the Governor on the development of the 
     statewide system, the State plan described in section 104, 
     and the State goals and State benchmarks;
       (B) assisting in the development of performance indicators 
     that relate to the measurement of State progress toward 
     meeting the State goals and reaching the State benchmarks and 
     providing guidance on how such progress may be improved;
       (C) assisting the Governor in preparing the annual report 
     to the Secretaries described in section 106(c);
       (D) assisting the Governor in developing the statewide 
     labor market information system described in section 139(d); 
     and
       (E) assisting in the monitoring and continuous improvement 
     of the performance of the statewide system, including 
     evaluation of the effectiveness of workforce and career 
     development activities.
       (c) Authority of Governor.--
       (1) Final authority.--If, after a reasonable effort, the 
     Governor is unable to obtain the support of the individuals 
     and entities participating in the collaborative process 
     described in subsection (a) or (b) for the State plan, the 
     Governor shall have final authority to submit the State plan 
     as described in section 104, except as provided in section 
     104(c) and in paragraph (3).
       (2) Process.--The Governor shall--
       (A) provide such individuals and entities with copies of 
     the State plan;

[[Page H8393]]

       (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 in the State plan any such comments that--
       (i) are submitted by an eligible agency and represent 
     disagreement with such plan, with respect to provisions of 
     the State plan described in paragraph (18) or (19) of section 
     104(b), as appropriate; or
       (ii) are submitted by an individual or entity participating 
     in the collaborative process.
       (3) Eligible agency comments.--An eligible agency, in 
     submitting comments under paragraph (2)(C)(i), may submit 
     provisions for the portion of the State plan described in 
     paragraph (18) or (19) of section 104(b), as appropriate. The 
     Governor shall include such provisions in the State plan 
     submitted under section 104. Such provisions shall be 
     considered to be such portion of the State plan.

     SEC. 106. ACCOUNTABILITY.

       (a) Goals.--Each statewide system supported by an allotment 
     under section 102 shall be designed to meet--
       (1) the goal of assisting participants in obtaining 
     meaningful unsubsidized employment opportunities in the 
     State; and
       (2) the goal of enhancing and developing more fully the 
     academic, occupational, and literacy skills of all segments 
     of the population of the State.
       (b) Benchmarks.--
       (1) Meaningful employment.--To be eligible to receive an 
     allotment under section 102, a State shall develop and 
     identify in the State plan submitted under section 104, 
     proposed quantifiable benchmarks to measure the statewide 
     progress of the State toward meeting the goal described in 
     subsection (a)(1), which shall include, at a minimum, 
     measures of--
       (A) placement of participants in unsubsidized employment;
       (B) retention of the participants in unsubsidized 
     employment (12 months after completion of the participation);
       (C) increases in earnings, or in earnings and employer-
     assisted benefits, for the participants; and
       (D) attainment by the participants of industry-recognized 
     occupational skills, as appropriate.
       (2) Education.--To be eligible to receive an allotment 
     under section 102, a State shall develop and identify in the 
     State plan submitted under section 104, proposed quantifiable 
     benchmarks to measure the statewide progress of the State 
     toward meeting the goal described in subsection (a)(2), which 
     shall include, at a minimum, measures, for participants, of--
       (A) attainment of challenging State academic proficiencies;
       (B) attainment of secondary school diplomas or general 
     equivalency diplomas;
       (C) attainment of industry-recognized occupational skills 
     according to skill proficiencies for students in career 
     preparation programs;
       (D) placement in, retention in, and completion of 
     postsecondary education or advanced training, or placement 
     and retention in military service, employment, or qualified 
     apprenticeships; and
       (E) attainment of the literacy skills and knowledge 
     individuals need to be productive and responsible citizens 
     and to become more actively involved in the education of 
     their children.
       (3) Populations.--
       (A) Minimum measures.--In developing and identifying, under 
     paragraphs (1) and (2), measures of the progress of the State 
     toward meeting the goals described in subsection (a), a State 
     shall develop and identify in the State plan, in addition to 
     statewide benchmarks, proposed quantifiable benchmarks for 
     populations that include, at a minimum--
       (i) low-income individuals;
       (ii) dislocated workers;
       (iii) at-risk youth;
       (iv) individuals with disabilities;
       (v) veterans; and
       (vi) individuals of limited literacy, as determined by the 
     State.
       (B) Additional measures.--In addition to the benchmarks 
     described in subparagraph (A), a State may develop and 
     identify in the State plan proposed quantifiable benchmarks 
     to measure the progress of the State toward meeting the goals 
     described in subsection (a) for populations with multiple 
     barriers to employment, which may include older workers, as 
     determined by the State.
       (4) Application.--
       (A) Meaningful employment benchmarks.--Benchmarks described 
     in paragraph (1) shall apply to employment and training 
     activities and, as appropriate, to at-risk youth activities 
     and adult education and literacy activities.
       (B) Education benchmarks.--Benchmarks described in 
     paragraph (2) shall apply to vocational education activities, 
     at-risk youth activities, and, as appropriate, adult 
     education and literacy activities.
       (5) Special rule.--If a State adopts 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, at a minimum, use such performance indicators, 
     attainment levels, or assessments in measuring the progress 
     of all students who participate in workforce and career 
     development activities.
       (6) Technical assistance.--
       (A) In general.--The Secretaries shall provide technical 
     assistance to States requesting such assistance, which may 
     include the development, in accordance with subparagraph (B), 
     of model benchmarks for each of the benchmarks described in 
     paragraphs (1) and (2) at achievable levels based on existing 
     (as of the date of the development of the benchmarks) 
     workforce and career development efforts in the States.
       (B) Collaboration.--Any such model benchmarks shall be 
     developed in collaboration with the States and other 
     appropriate parties.
       (7) Incentive grants.--A State that meets the requirements 
     of section 132(a) (including requirements relating to State 
     benchmarks) shall be eligible to receive an incentive grant 
     under section 132(a).
       (8) Sanctions.--A State that has failed to meet the State 
     benchmarks described in paragraphs (1) and (2) for the 3-year 
     period covered by a State plan described in section 104, as 
     determined by the Secretaries, may be subject to sanctions 
     under section 132(b).
       (c) Report.--
       (1) In general.--Each State that receives an allotment 
     under section 102 shall annually prepare and submit to the 
     Secretaries a report that states how the State is performing 
     on State benchmarks that relate to workforce and career 
     development activities. The report shall include information 
     on how the local workforce development areas in the State are 
     performing on local benchmarks described in section 
     108(d)(4)(A). The report shall also include information on 
     the status and results of any State evaluations specified in 
     subsection (d) that relate to employment and training 
     activities carried out in 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) Information dissemination.--The Secretaries shall make 
     the information contained in such reports available to the 
     general public through publication and other appropriate 
     methods, and shall disseminate State-by-State comparisons of 
     the information.
       (3) Evaluation.--In preparing the report for the third year 
     of the 3-year period covered by the State plan, the State 
     shall include the findings of the evaluation described in 
     section 104(b)(16)(E) of the career grant pilot program 
     described in section 121(g).
       (d) Evaluation of State Programs.--
       (1) Employment and training activities.--Using funds 
     reserved under section 111(a)(2)(B), a State shall conduct 
     ongoing evaluations of employment and training activities 
     carried out in the State.
       (2) Methods.--The State shall--
       (A) conduct such evaluations of employment and training 
     activities through controlled experiments using experimental 
     and control groups chosen by random assignment;
       (B) in conducting such evaluations, determine, at a 
     minimum, whether employment and training activities 
     effectively raise the hourly wage rates of individuals 
     receiving services through such activities; and
       (C) conduct, or arrange under paragraph (3) for the conduct 
     of, 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.
       (3) Multi-state agreements.--A State may enter into an 
     agreement with 1 or more States to arrange for the conduct of 
     such evaluations in accordance with the requirements of 
     paragraphs (1) and (2).
       (e) Fiscal and Management Accountability Information 
     Systems.--
       (1) In general.--Using funds reserved under sections 
     111(a)(2)(B) and 112(a)(2)(C), the State may operate a fiscal 
     and management accountability information system, based on 
     guidelines established by the Secretaries in consultation 
     with the Governors and other appropriate parties. Such 
     guidelines shall promote the efficient collection and use of 
     fiscal and management information for reporting and 
     monitoring the use of funds made available to the State for 
     employment and training activities and at-risk youth 
     activities and for use by the State in preparing the annual 
     report described in subsection (c). In measuring State 
     performance on State benchmarks, a State may, pursuant to 
     State law, utilize quarterly wage records available through 
     the unemployment insurance system.
       (2) Confidentiality.--In carrying out the requirements of 
     this Act, the State shall comply with section 444 of the 
     General Education Provisions Act (20 U.S.C. 1232g) (as added 
     by the Family Educational Rights and Privacy Act of 1974). In 
     addition, the State shall protect the confidentiality of 
     information obtained through the fiscal and management 
     accountability information system through the use of 
     recognized security procedures.

     SEC. 107. IDENTIFICATION OF ELIGIBLE PROVIDERS OF TRAINING 
                   SERVICES.

       (a) Eligibility Requirements.--
       (1) In general.--Except as provided in subsection (d), to 
     be eligible to receive funds made available under section 111 
     to provide training services described in section 121(e)(3) 
     (referred to in this section as ``training services'') and be 
     identified as an eligible provider of such services, a 
     provider of such services shall meet the requirements of this 
     section.
       (2) Postsecondary educational institutions.--A 
     postsecondary educational institution shall automatically be 
     eligible to receive such funds for--
       (A) a program that leads to an associate, baccalaureate, 
     professional, or graduate degree;
       (B) a program that--
       (i) is at least 2 academic years in length; and
       (ii) is acceptable for academic credit toward a 
     baccalaureate degree; or
       (C) a program that--
       (i) is at least 1 academic year in length;
       (ii) is a training program;
       (iii) leads to a certificate, degree, or other recognized 
     educational credential; and
       (iv) prepares a student for gainful employment in a 
     recognized occupation.
       (3) Other eligible providers.--

[[Page H8394]]

       (A) Procedure.--The Governor shall establish a procedure 
     for determining the eligibility of public and private 
     providers not described in paragraph (2) (including 
     eligibility of postsecondary educational institutions for 
     programs not described in paragraph (2)) to receive such 
     funds. In determining the eligibility, the Governor shall 
     solicit and take into consideration recommendations of the 
     local boards concerning the identification of eligible 
     providers of training services in local workforce development 
     areas.
       (B) Levels of performance.--At a minimum, the Governor 
     shall establish a procedure that requires such a provider to 
     meet minimum acceptable levels of performance based on--
       (i) verifiable program-specific performance information 
     described in subparagraph (C) and submitted to the State 
     agency designated under subsection (b), as required under 
     paragraphs (2) and (3) of subsection (b); and
       (ii) performance criteria relating to the rates and 
     percentages described in subparagraph (C)(i).
       (C) Performance information.--
       (i) Required information.--To be eligible to receive such 
     funds, a provider shall submit information on--

       (I) program completion rates for participants in the 
     applicable program conducted by the provider;
       (II) the percentage of the participants obtaining 
     employment in an occupation related to the program conducted;
       (III) where appropriate, the rates of licensure or 
     certification of graduates of the program; and
       (IV) where appropriate, the percentage of the participants 
     who demonstrate significant gains in literacy and basic 
     skills.

       (ii) Additional information.--In addition to the 
     performance information described in clause (i), the Governor 
     may require that a provider described in this paragraph 
     submit such other performance information as the Governor 
     determines to be appropriate, which may include information 
     relating to--

       (I) the adequacy of space, staff, equipment, instructional 
     materials, and student support services offered by the 
     provider through a program conducted by the provider;
       (II) the earnings of participants completing the program; 
     and
       (III) the percentage of graduates of the program who attain 
     industry-recognized occupational skills in the subject, 
     occupation, or industry for which training is provided.

       (b) Administration.--
       (1) Designation.--The Governor shall designate a State 
     agency to collect and disseminate the performance information 
     described in subsection (a)(3)(C) and submitted pursuant to 
     this subsection and carry out other duties described in this 
     subsection.
       (2) Application.--To be eligible to receive funds as 
     described in subsection (a), a provider shall submit an 
     application at such time, in such manner, and containing such 
     information as the designated State agency may require.
       (3) Submission.--To be eligible to receive funds as 
     described in subsection (a), a provider described in 
     subsection (a)(3) shall submit the performance information 
     described in subsection (a)(3)(C) annually to the designated 
     State agency at such time and in such manner as the 
     designated State agency may require. The designated State 
     agency may accept program-specific performance information 
     consistent with the requirements for eligibility under title 
     IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et 
     seq.) from such a provider for purposes of enabling the 
     provider to fulfill the applicable requirements of this 
     paragraph.
       (4) List of eligible providers.--The designated State 
     agency, after reviewing the performance information described 
     in subsection (a)(3)(C) and using the procedure described in 
     subsection (a)(3)(B), shall identify eligible providers of 
     training services described in paragraph (2) or (3) of 
     subsection (a), compile a list of such eligible providers, 
     accompanied by the performance information described in 
     subsection (a)(3)(C) for each such provider described in 
     subsection (a)(3), and disseminate such list and information 
     to one-stop career centers and to local boards. Such list and 
     information shall be made widely available to participants in 
     workforce and career development activities and others 
     through the one-stop career center system described in 
     section 121(d).
       (c) Enforcement.--
       (1) Accuracy of information.--If the designated State 
     agency determines that a provider or individual supplying 
     information on behalf of a provider intentionally supplies 
     inaccurate information under this section, the agency shall 
     terminate the eligibility of the eligible provider to receive 
     funds described in subsection (a) for a period of time, but 
     not less than 2 years, as prescribed in regulations issued by 
     the Governor.
       (2) Compliance with criteria or requirements.--If the 
     designated State agency determines that an eligible provider 
     or a program of training services carried out by an eligible 
     provider fails to meet the required performance criteria 
     described in subsection (a)(3)(B)(ii) or materially violates 
     any provision of this title or the regulations promulgated to 
     implement this title, the agency may terminate the 
     eligibility of the eligible provider to receive funds 
     described in subsection (a) for such program or take such 
     other action as the agency determines to be appropriate.
       (3) Eligibility under the higher education act of 1965.--If 
     the designated State agency determines that the eligibility 
     of an eligible provider described in subsection (a)(2) under 
     title IV of the Higher Education Act of 1965 has been 
     terminated, the agency shall--
       (A) terminate the automatic eligibility of the provider 
     under subsection (a)(2); and
       (B) require the provider to meet the requirements of 
     subsection (a)(3) to be eligible to receive funds as 
     described in subsection (a).
       (4) Repayment.--Any provider whose eligibility is 
     terminated under paragraph (1) or (2) for a program shall be 
     liable for repayment of all funds described in subsection (a) 
     received for the program during any period of noncompliance 
     described in such paragraph.
       (5) Appeal.--The Governor shall establish a procedure for 
     an eligible provider to appeal a determination by the 
     designated State agency that results in termination of 
     eligibility under this subsection. Such procedure shall 
     provide an opportunity for a hearing and prescribe 
     appropriate time limits to ensure prompt resolution of the 
     appeal.
       (d) On-the-Job Training Exception.--
       (1) In general.--Providers of on-the-job training shall not 
     be subject to the requirements of subsection (a), (b), or 
     (c).
       (2) Collection and dissemination of information.--A one-
     stop career center eligible provider in a local workforce 
     development area shall collect such performance information 
     from on-the-job training providers as the Governor may 
     require, and disseminate such information through the 
     delivery of core services described in section 121(e)(2), as 
     appropriate.

     SEC. 108. LOCAL WORKFORCE DEVELOPMENT BOARDS.

       (a) Establishment.--There shall be established in each 
     local workforce development area of a State, and certified by 
     the Governor of the State, a local workforce development 
     board, reflecting business and community interests in 
     workforce and career development activities.
       (b) Membership.--
       (1) State criteria.--The Governor of the State shall 
     establish criteria for the appointment of members of the 
     local boards for local workforce development areas in the 
     State in accordance with the requirements of paragraph (2). 
     Information identifying such criteria shall be included in 
     the State plan submitted under section 104.
       (2) Composition.--Such criteria shall require at a minimum, 
     that the membership of each local board--
       (A) shall include--
       (i) a majority of members who are representatives of 
     business and industry in the local workforce development 
     area, appointed from among individuals nominated by local 
     business organizations and trade associations;
       (ii) representatives of local secondary schools, 
     representatives of postsecondary educational institutions 
     (including representatives of community colleges), 
     representatives of vocational educators, and representatives 
     of providers of adult education and literacy services, where 
     such schools, institutions, educators, or providers, as 
     appropriate, exist; and
       (iii) representatives of employees, which may include 
     labor; and
       (B) may include--
       (i) individuals with disabilities;
       (ii) parents;
       (iii) veterans; and
       (iv) representatives of community-based organizations.
       (3) Chairperson.--The local board shall elect a chairperson 
     from among the members of the board.
       (c) Appointment and Certification of Board.--
       (1) Appointment of board members and assignment of 
     responsibilities.--
       (A) In general.--The chief elected official in a local 
     workforce development area is authorized to appoint the 
     members of the local board for such area, in accordance with 
     the State criteria established under subsection (b).
       (B) Multiple units of local government in area.--
       (i) In general.--In a case in which a local workforce 
     development area includes more than 1 unit of general local 
     government, the chief elected officials of such units may 
     execute an agreement that specifies the respective roles of 
     the individual chief elected officials--

       (I) in the appointment of the members of the local board 
     from the individuals nominated or recommended to be such 
     members in accordance with the criteria established under 
     subsection (b); and
       (II) in carrying out any other responsibilities assigned to 
     such officials.

       (ii) Lack of agreement.--If, after a reasonable effort, the 
     chief elected officials are unable to reach agreement as 
     provided under clause (i), the Governor may appoint the 
     members of the local board from individuals so nominated or 
     recommended.
       (2) Certification.--
       (A) In general.--The Governor may annually certify 1 local 
     board for each local workforce development area in the State.
       (B) Criteria.--Such certification shall be based on factors 
     including the criteria established under subsection (b) and, 
     for a second or subsequent certification, the extent to which 
     the local board has ensured that employment and training 
     activities and at-risk youth activities carried out in the 
     local workforce development area have met expected levels of 
     performance with respect to the local benchmarks required 
     under subsection (d)(4)(A).
       (C) Failure to achieve certification.--Failure of a local 
     board to achieve certification shall result in reappointment 
     and certification of another local board for the local 
     workforce development area pursuant to the process described 
     in paragraph (1) and this paragraph.
       (3) Decertification.--Notwithstanding paragraph (2), the 
     Governor may decertify a local board at any time for fraud or 
     abuse, or failure to carry out the functions specified for 
     the local board in paragraphs (1) through (3) of subsection 
     (d), after providing notice and an opportunity for comment. 
     If the Governor decertifies a local board for a local 
     workforce development area, the Governor may require that a 
     local board be appointed and certified for the local

[[Page H8395]]

     workforce development area pursuant to a plan developed by 
     the Governor in consultation with the chief elected official 
     in the local workforce development area and in accordance 
     with the criteria established under subsection (b).
       (4) Exception.--Notwithstanding subsection (b) and 
     paragraphs (1) and (2), if a State described in section 
     104(b)(4)(B) indicates in the State plan that the State will 
     be treated as a local workforce development area for purposes 
     of the application of this title, the Governor may designate 
     the individuals and entities involved in the collaborative 
     process described in section 105 to carry out any of the 
     functions described in subsection (d).
       (d) Functions of Local Board.--The functions of the local 
     board shall include the following:
       (1) Local plan.--
       (A) In general.--Each local board shall develop and submit 
     to the Governor a comprehensive multiyear strategic local 
     plan. The local plan shall be consistent with the State goals 
     and State plan described in section 104.
       (B) Contents.--The local plan shall include--
       (i) an identification of the workforce development needs of 
     local industries, jobseekers, and workers;
       (ii) a description of employment and training activities 
     and at-risk youth activities to be carried out in the local 
     workforce development area as required under sections 121 and 
     122, that, with activities authorized under the Wagner-Peyser 
     Act (29 U.S.C. 49 et seq.), will contribute to the coherent 
     delivery of workforce and career development activities;
       (iii) a description of the local benchmarks negotiated with 
     the Governor pursuant to paragraph (4)(A), to be used by the 
     local board for measuring the performance of eligible 
     providers, and the performance of the one-stop career center 
     system, in the local workforce development area;
       (iv) a description of the process negotiated with the 
     Governor pursuant to paragraph (4)(B) that the local board 
     will use to designate or certify, and to conduct oversight 
     with respect to, one-stop career center eligible providers in 
     the local workforce development area, that will--

       (I) ensure that the most effective and efficient providers 
     will be chosen; and
       (II) ensure the continuous improvement of such providers 
     and ensure that such providers will continue to meet the 
     labor market needs of local employers and participants;

       (v) a description of how the local board will ensure the 
     continued participation of the chief elected official in the 
     local workforce development area in carrying out the duties 
     of the local board, including the participation of such 
     official in carrying out the oversight responsibilities of 
     the board;
       (vi) a description of how the local board will obtain the 
     active and continuous participation of representatives of 
     business and industry, employees (which may include labor), 
     local educational agencies, postsecondary educational 
     institutions, providers of adult education and literacy 
     services, vocational educators, other providers of workforce 
     and career development activities, community-based 
     organizations, parents, and consumers (including individuals 
     with disabilities, older workers, and veterans), where 
     appropriate, in the development and continuous improvement of 
     the employment and training activities to be carried out in 
     the local workforce development area;
       (vii) a description of the steps the local board will take 
     to work with local educational agencies, postsecondary 
     educational institutions, vocational educators, providers of 
     adult education and literacy services, and other 
     representatives of the educational community to address local 
     employment, education, and training needs;
       (viii) a description of the process that will be used to 
     fully involve representatives of business, employees (which 
     may include labor), the local education community (including 
     vocational educators and teachers), parents, and community-
     based organizations in the development and implementation of 
     at-risk youth activities in the local workforce development 
     area, including a description of the process used to ensure 
     that the most effective and efficient providers are chosen to 
     carry out the activities; and
       (ix) such other information as the Governor may require.
       (C) Consultation.--The local board shall--
       (i) consult with the chief elected official in the 
     appropriate local workforce development area in the 
     development of the local plan; and
       (ii) provide the chief elected official with a copy of the 
     local plan.
       (D) Approval.--
       (i) In general.--The chief elected official shall--

       (I) approve the local plan; or
       (II) reject the local plan and make recommendations to the 
     local board on how to improve the local plan.

       (ii) Submission.--If, after a reasonable effort, the local 
     board is unable to obtain the approval of the chief elected 
     official for the local plan, the local board shall submit the 
     plan to the Governor for approval under subparagraph (A), and 
     shall submit the recommendations of the chief elected 
     official to the Governor along with the plan.
       (2) Selection and oversight responsibilities.--
       (A) One-stop career centers.--Consistent with section 
     111(c)(1)(A) and the agreement negotiated with the Governor 
     under paragraph (4)(B)(i), the local board is authorized to 
     designate or certify one-stop career center eligible 
     providers, and conduct oversight with respect to such 
     providers, in the local workforce development area.
       (B) At-risk youth activities.--Consistent with section 
     112(d), the local board is authorized to award grants on a 
     competitive basis to eligible providers of at-risk youth 
     activities, and conduct oversight with respect to such 
     providers, in the local workforce development area.
       (3) Identification of eligible providers of training 
     services.--Consistent with section 107, the local board is 
     authorized to make recommendations to the Governor concerning 
     the identification of eligible providers of training services 
     described in section 121(e)(3) in the local workforce 
     development area.
       (4) Negotiations.--
       (A) Local benchmarks.--The local board and the Governor 
     shall negotiate and reach agreement on local benchmarks 
     designed to meet the goals described in section 106(a) for 
     the local workforce development area. In determining such 
     benchmarks, the Governor and the local board shall take into 
     account the State benchmarks described in section 106(b)(1) 
     with respect to employment and training activities and as 
     appropriate, at-risk youth activities, the State benchmarks 
     described in section 106(b)(2) with respect to at-risk youth 
     activities, and specific economic, demographic, and other 
     characteristics of the populations to be served in the local 
     workforce development area.
       (B) Local one-stop delivery of services.--
       (i) In general.--Consistent with criteria identified in the 
     State plan information submitted under section 
     104(b)(16)(B)(i), the local board and the Governor shall 
     negotiate and reach agreement on a process to be used by the 
     local board that meets the requirements of subclauses (I) and 
     (II) of paragraph (1)(B)(iv) for--

       (I) the designation or certification of one-stop career 
     center eligible providers in the local workforce development 
     area, including a determination of the role of providers of 
     activities authorized under the Wagner-Peyser Act in the one-
     stop delivery of services in the local workforce development 
     area; and
       (II) the continued role of the local board in conducting 
     oversight with respect to one-stop career center eligible 
     providers, including the ability of the local board to 
     terminate for cause the eligibility of a provider of such 
     services.

       (ii) Established one-stop career centers.--Notwithstanding 
     section 111(c)(1)(B), if a one-stop career center has been 
     established in a local workforce development area prior to 
     the date of enactment of this Act, or if approval has been 
     obtained for a plan for a one-stop career center under the 
     Wagner-Peyser Act (29 U.S.C. 49 et seq.) prior to the date of 
     enactment of this Act, the local board and the Governor 
     involved may agree to certify the one-stop career center 
     provider for purposes of this subparagraph.
       (e) Sunshine Provision.--The local board shall make 
     available to the public, on a regular basis, information 
     regarding the activities of the local board, including 
     information regarding membership, the designation and 
     certification of one-stop career center eligible providers, 
     and the award of grants to eligible providers of at-risk 
     youth activities.
       (f) Other Activities.--
       (1) Limitation.--
       (A) In general.--Except as provided in subparagraph (B), no 
     local board may directly carry out an employment and training 
     activity.
       (B) Waivers.--The Governor of the State in which the local 
     board is located may grant to the local board a written 
     waiver of the prohibition set forth in subparagraph (A).
       (2) Conflict of interest.--No member of a local board may--
       (A) vote on a matter under consideration by the local 
     board--
       (i) regarding the provision of services by such member (or 
     by an organization that such member represents); or
       (ii) that would provide direct financial benefit to such 
     member or the immediate family of such member; or
       (B) engage in any other activity determined by the Governor 
     to constitute a conflict of interest.
       (g) Technical Assistance.--If a local workforce development 
     area fails to meet expected levels of performance on 
     negotiated benchmarks described in subsection (d)(4)(A), the 
     Governor may provide technical assistance to the local board 
     to improve the level of performance of the local workforce 
     development area.
                         Subtitle B--Allocation

     SEC. 111. DISTRIBUTION FOR EMPLOYMENT AND TRAINING 
                   ACTIVITIES.

       (a) Reservations for State and Local Activities.--
       (1) In general.--The sum of the funds made available to a 
     State for any program year under paragraphs (1) and (5) of 
     section 103(a) for employment and training activities shall 
     be made available in accordance with this section.
       (2) Distribution.--Of the sum described in paragraph (1) 
     that is made available to a State for a program year--
       (A) not less than 75 percent shall be made available to 
     local workforce development areas under subsection (b) to 
     carry out employment and training activities described in 
     subsections (e) and (f) of section 121;
       (B) not less than 20 percent shall be made available to the 
     Governor to carry out State employment and training 
     activities described in subsections (b) and (c) of section 
     121; and
       (C) not more than 5 percent shall be made available for 
     administrative expenses at the State level.
       (b) Within State Formula.--
       (1) In general.--The Governor shall develop a formula for 
     the allocation of the funds described in subsection (a)(2)(A) 
     to local workforce development areas, taking into account--
       (A) the poverty rate, among individuals who are not less 
     than age 18 and not more than age 64, as determined by the 
     Bureau of the Census, within each local workforce development 
     area;
       (B) the unemployment rate within each local workforce 
     development area;
       (C) the proportion of the State population of individuals 
     who are not less than age 18 and not

[[Page H8396]]

     more than age 64, residing within each local workforce 
     development area; and
       (D) such additional factors as the Governor (in 
     consultation with local boards and local elected officials) 
     determines to be necessary.
       (2) Equitable allocation.--In developing such formula, the 
     Governor shall ensure that--
       (A) the funds described in subsection (a)(2)(A) are 
     allocated in a geographically equitable manner throughout the 
     State; and
       (B) the factors described in paragraph (1) do not receive 
     disproportionate weight in the allocation.
       (c) Eligibility.--
       (1) Eligibility for designation or certification as a one-
     stop career center eligible provider.--
       (A) In general.--To be eligible to receive funds made 
     available under this section to provide employment and 
     training activities through a one-stop career center system 
     and be designated or certified as a one-stop career center 
     eligible provider for a local workforce development area, an 
     entity shall--
       (i) be selected in accordance with section 108(d)(2)(A); 
     and
       (ii) be a public or private entity, or consortium of 
     entities, located in the local workforce development area, 
     which entity or consortium may include an institution of 
     higher education (as defined in section 481 of the Higher 
     Education Act of 1965 (20 U.S.C. 1088), a local employment 
     service office established under the Wagner-Peyser Act (29 
     U.S.C. 49 et seq.), a local government agency, a private for-
     profit entity, a private nonprofit entity, or other 
     interested entity, of demonstrated effectiveness, such as a 
     local chamber of commerce or other business organization.
       (B) Exception.--Elementary schools and secondary schools 
     shall not be eligible for designation or certification as 
     one-stop career center eligible providers.
       (2) Eligibility for identification as an eligible provider 
     of training services.--Except as provided in section 107(d), 
     to be eligible to receive funds made available under this 
     section to provide training services described in section 
     121(e)(3) and be identified as an eligible provider of such 
     services, an entity shall meet the requirements of section 
     107.

     SEC. 112. DISTRIBUTION FOR AT-RISK YOUTH ACTIVITIES.

       (a) Reservations for State and Local Activities.--
       (1) In general.--The sum of the funds made available to a 
     State for any program year under paragraphs (2) and (5) of 
     section 103(a) for at-risk youth activities shall be made 
     available in accordance with this section.
       (2) Distribution.--Of the sum described in paragraph (1) 
     that is made available to a State for a program year--
       (A) not less than 75 percent shall be made available to 
     local workforce development areas under subsection (b) to 
     carry out at-risk youth activities;
       (B) not more than 21 percent shall be made available to the 
     Governor to carry out at-risk youth activities; and
       (C) not more than 4 percent shall be made available for 
     administrative expenses at the State level.
       (b) Within State Formula.--
       (1) In general.--The Governor, using the collaborative 
     process described in subsection (a) or (b) of section 105, 
     shall develop a formula for the allocation of the funds 
     described in subsection (a)(2)(A) to local workforce 
     development areas, taking into account--
       (A) the poverty rate, as determined by the Bureau of the 
     Census, within each local workforce development area;
       (B) the proportion of the State at-risk youth population 
     residing within each local workforce development area; and
       (C) such additional factors as are determined to be 
     necessary.
       (2) Equitable allocation.--In developing such formula, the 
     Governor shall ensure that--
       (A) the funds described in subsection (a)(2)(A) are 
     allocated in a geographically equitable manner throughout the 
     State; and
       (B) the factors described in paragraph (1) do not receive 
     disproportionate weight in the allocation.
       (c) State Grants.--
       (1) In general.--The Governor shall use the funds described 
     in subsection (a)(2)(B) to award grants, on a competitive 
     basis, to eligible providers to carry out at-risk youth 
     activities under section 122.
       (2) Eligible providers.--Providers eligible to receive 
     grants under this subsection to carry out such activities 
     include--
       (A) local educational agencies, area vocational education 
     schools, educational service agencies, institutions of higher 
     education (as defined in section 1201(a) of the Higher 
     Education Act of 1965 (20 U.S.C. 1141(a))), State corrections 
     educational agencies, or consortia of such entities;
       (B) units of general local government;
       (C) private nonprofit organizations (including community-
     based organizations);
       (D) private for-profit entities; and
       (E) other organizations or entities of demonstrated 
     effectiveness that are approved by the Governor.
       (3) Application.--To be eligible to receive a grant under 
     this subsection from the State to carry out such activities, 
     a provider 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.
       (4) Award of grants.--
       (A) Process.--
       (i) In general.--The Governor shall develop a peer review 
     process for reviewing the applications and awarding the 
     grants on a competitive basis.
       (ii) Criteria.--The Governor shall establish criteria 
     described in section 104(b)(17)(C) to be used in reviewing 
     the applications.
       (B) Awards.--
       (i) In general.--Using the process referred to in 
     subparagraph (A), and taking into consideration the criteria 
     referred to in subparagraph (A), the Governor shall award the 
     grants to eligible providers.
       (ii) Priority.--In awarding the grants, the Governor shall 
     give priority to providers submitting applications to serve 
     communities, or combinations of communities, that contain a 
     large number or a high concentration of at-risk youth.
       (iii) Equitable distribution.--In awarding the grants, the 
     Governor shall ensure that--

       (I) the funds made available through the grants are 
     distributed in a geographically equitable manner throughout 
     the State; and
       (II) no factor receives disproportionate weight in the 
     distribution.

       (d) Local Grants.--
       (1) In general.--From the funds made available under 
     subsection (a)(2)(A) to a local workforce development area 
     (other than funds described in section 122(c)), the local 
     board for such local workforce development area shall award 
     grants, on a competitive basis, to eligible providers to 
     carry out at-risk youth activities under section 122.
       (2) Eligible providers.--Providers eligible to receive 
     grants under this subsection to carry out such activities in 
     a local workforce development area include the providers 
     described in subparagraphs (A) through (D) of subsection 
     (c)(2) and other organizations or entities of demonstrated 
     effectiveness that are approved by the local board.
       (3) Application.--To be eligible to receive a grant under 
     this subsection from the local board to carry out such 
     activities in a local workforce development area, a provider 
     shall prepare and submit an application to the board at such 
     time, in such manner, and containing such information as the 
     board may require.
       (4) Award of grants.--
       (A) Process.--
       (i) In general.--The local board shall develop a peer 
     review process for reviewing the applications and awarding 
     the grants on a competitive basis.
       (ii) Criteria.--The local board shall establish criteria 
     described in section 104(b)(17)(C) to be used in reviewing 
     the applications.
       (B) Awards.--
       (i) In general.--Using the process referred to in 
     subparagraph (A), and taking into consideration the criteria 
     referred to in subparagraph (A), the local board shall award 
     the grants to eligible providers.
       (ii) Priority.--In awarding the grants, the local board 
     shall give priority to providers submitting applications to 
     serve communities, or combinations of communities, that 
     contain a large number or a high concentration of at-risk 
     youth.
       (iii) Equitable distribution.--In awarding the grants, the 
     local board shall ensure that--

       (I) the funds made available through the grants are 
     distributed in a geographically equitable manner throughout 
     the local workforce development area; and
       (II) no factor receives disproportionate weight in the 
     distribution.

       (5) Limitation.--No local board may directly carry out an 
     at-risk youth activity.
       (e) Technical Assistance.--The Governor, in consultation 
     with the chief elected officials in a local workforce 
     development area, shall provide technical assistance to the 
     local board for the local workforce development area to 
     improve the level of performance of the local workforce 
     development area with respect to at-risk youth activities 
     if--
       (1) the local board requests such technical assistance; or
       (2) the Governor, in carrying out the certification 
     requirements of section 108(c)(2), determines that the local 
     board requires such technical assistance.

     SEC. 113. FUNDING FOR STATE VOCATIONAL EDUCATION ACTIVITIES 
                   AND DISTRIBUTION FOR SECONDARY SCHOOL 
                   VOCATIONAL EDUCATION.

       (a) Reservations for State and Local Activities.--
       (1) In general.--The sum of the funds made available to a 
     State for any program year under paragraphs (3) and (5) of 
     section 103(a) for vocational education activities shall be 
     made available in accordance with this section and sections 
     114 and 115.
       (2) Distribution.--Of the sum described in paragraph (1) 
     that is made available to an eligible agency for vocational 
     education for a program year--
       (A) not less than 85 percent shall be made available to 
     eligible providers to carry out vocational education 
     activities under this section or section 114;
       (B) not more than 11 percent shall be made available to 
     carry out State activities described in section 123(a); and
       (C) not more than 4 percent shall be made available for 
     administrative expenses at the State level.
       (3) State determinations.--From the amount available to an 
     eligible agency in a State for distribution to eligible 
     providers under paragraph (2)(A) for a program year, such 
     agency shall determine the percentage of such amount that 
     will be distributed in accordance with this section and 
     section 114 for such year for vocational education activities 
     in such State in the area of secondary school vocational 
     education, or postsecondary and adult vocational education, 
     or both.
       (b) Allocation for Secondary School Vocational Education.--
       (1) In general.--Except as otherwise provided in this 
     section and section 115, each eligible

[[Page H8397]]

     agency for vocational education in a State 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 151(c)) by such agency for 
     secondary school vocational education under subsection (a)(3) 
     to local educational agencies within the State as follows:
       (A) 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 number 
     of children who are described in paragraph (2) and reside in 
     the school district served by such agency for the preceding 
     fiscal year bears to the total number of such children who 
     reside in the school districts served by all local 
     educational agencies in the State for such preceding year.
       (B) Thirty percent.--From 30 percent of such portion, each 
     local educational agency shall be allocated an amount that 
     bears the same relationship to such 30 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 preceding year.
       (2) Number of children.--
       (A) In general.--The number of children referred to in 
     paragraph (1)(A) is the number of children aged 5 through 17, 
     inclusive, from families with incomes below 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 for the fiscal 
     year for which the determination is made.
       (B) Population updates.--In fiscal year 1999 and every 2 
     years thereafter, the Secretary of Education shall use 
     updated data on the number of children aged 5 through 17, 
     inclusive, from families with incomes below the poverty line 
     for local educational agencies, published by the Department 
     of Commerce, unless the Secretary of Education and the 
     Secretary of Commerce determine that use of the updated 
     population data would be inappropriate or unreliable, taking 
     into consideration the recommendations of the study to be 
     conducted by the National Academy of Sciences pursuant to 
     section 1124(c)(4) of the Elementary and Secondary Education 
     Act of 1965 (20 U.S.C. 6333(c)(4)). If the Secretary of 
     Education and the Secretary of Commerce determine that some 
     or all of the data referred to in this subparagraph are 
     inappropriate or unreliable, they shall jointly issue a 
     report setting forth their reasons in detail. In determining 
     the families with incomes below the poverty line, the 
     Secretary shall utilize the criteria of poverty used by the 
     Bureau of the Census in compiling the most recent decennial 
     census, in such form as those criteria have been updated by 
     increases in the Consumer Price Index for all urban 
     consumers, published by the Bureau of Labor Statistics.
       (3) Waiver for more equitable distribution.--Subject to 
     subsection (c), the Secretary of Education may waive the 
     application of paragraph (1) in the case of any eligible 
     agency that submits to the Secretary an application for such 
     waiver that--
       (A) demonstrates that an alternative formula will result in 
     a greater distribution of funds to local educational agencies 
     within the State that serve the highest number or greatest 
     percentage of children described in paragraph (2) than the 
     formula described in paragraph (1); and
       (B) includes a proposal for such an alternative formula.
       (c) Minimum Allocation.--
       (1) In general.--Except as provided in paragraphs (2) and 
     (3), no local educational agency shall receive an allocation 
     under subsection (b) for a program year unless the amount 
     allocated to such agency under subsection (b) is $15,000 or 
     more. A local educational agency may enter into a consortium 
     with other local educational agencies for purposes of meeting 
     the minimum allocation requirement of this paragraph.
       (2) Waiver.--The eligible agency may waive the application 
     of paragraph (1) in any case in which the local educational 
     agency--
       (A) is located in a rural, sparsely populated area; and
       (B) demonstrates that such agency is unable to enter into a 
     consortium for purposes of providing services under this 
     section.
       (3) Redistribution.--Any amounts that are not allocated by 
     reason of paragraph (1) for a program year shall be 
     redistributed for such program year--
       (A) to a local educational agency--
       (i) that did not receive an allocation under subsection (b) 
     or pursuant to paragraph (2) for such program year;
       (ii) that is located in a rural, sparsely populated area; 
     and
       (iii) for which at least 15 percent of the children in the 
     school district served by such agency are children described 
     in subsection (b)(2); and
       (B) for vocational education services and activities of 
     sufficient size, scope, and quality to be effective.
       (d) Limited Jurisdiction Agencies.--
       (1) In general.--In applying the provisions of subsection 
     (b), no eligible agency receiving assistance under this title 
     shall allocate funds to a local educational agency that 
     serves only elementary schools, but shall distribute such 
     funds to the local educational agency or regional educational 
     agency that provides secondary school services to secondary 
     school students in the same attendance area.
       (2) Special rule.--The amount to be distributed under 
     paragraph (1) for a program year 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.
       (e) Allocations to Area Vocational Education Schools and 
     Educational Service Agencies.--
       (1) In general.--Each eligible agency shall distribute the 
     portion of funds made available for any program year by such 
     agency for secondary school vocational education under 
     subsection (a)(3) to the appropriate area vocational 
     education school or educational service agency in any case in 
     which the area vocational education school or educational 
     service agency, and the local educational agency concerned--
       (A) have formed or will form a consortium for the purpose 
     of receiving funds under this section; or
       (B) have entered into or will enter into a cooperative 
     arrangement for such purpose.
       (2) Allocation basis.--If an area vocational education 
     school or educational service agency meets the requirements 
     of paragraph (1), then--
       (A) the amount that would otherwise be distributed to the 
     local educational agency for a program year 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 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) Appeals procedure.--The eligible agency shall establish 
     an appeals procedure for resolution of any dispute arising 
     between a local educational agency and an area vocational 
     education school or an educational service agency with 
     respect to the allocation procedures described in this 
     section, including the decision of a local educational agency 
     to leave a consortium or terminate a cooperative arrangement.
       (4) Consortium requirements.--
       (A) In general.--Notwithstanding the provisions of 
     paragraphs (1), (2), and (3), 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--
       (i) 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
       (ii) transfer such allocation to the area vocational 
     education school or educational service agency.
       (B) Funds to consortium.--Funds allocated to a consortium 
     formed to meet the requirements of this paragraph shall be 
     used only for purposes and activities that are mutually 
     beneficial to all members of the consortium. Such funds may 
     not be reallocated to individual members of the consortium 
     for purposes or activities benefiting only one member of the 
     consortium.
       (f) Data.--The Secretary of Education shall collect 
     information from States regarding how funds made available by 
     the eligible agency for vocational education under subsection 
     (a)(3) are distributed to local educational agencies in 
     accordance with this section.

     SEC. 114. DISTRIBUTION FOR POSTSECONDARY AND ADULT VOCATIONAL 
                   EDUCATION.

       (a) Allocation.--
       (1) In general.--Except as provided in subsection (b) and 
     section 115, each eligible agency for vocational education in 
     a State, using the portion of the funds made available for 
     any program year by such agency for postsecondary and adult 
     vocational education under section 113(a)(3), shall 
     distribute such portion to eligible institutions or consortia 
     of eligible institutions within the State.
       (2) Formula.--Each eligible institution or consortium of 
     eligible institutions shall receive an amount for the program 
     year (from funds made available for the corresponding fiscal 
     year, as determined under section 151(c)) from such portion 
     that bears the same relationship to such portion 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 eligible 
     institution or consortium of eligible institutions, 
     respectively, 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.--
       (A) In general.--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--
       (i) provide services to all postsecondary institutions 
     participating in the consortium; and
       (ii) are of sufficient size, scope, and quality to be 
     effective.
       (B) Funds to consortium.--Funds allocated to a consortium 
     formed to meet the requirements of this section shall be used 
     only for purposes and activities that are mutually beneficial 
     to all members of the consortium. Such funds may not be 
     reallocated to individual members of the consortium for 
     purposes or activities benefiting only one member of the 
     consortium.
       (b) Waiver for More Equitable Distribution.--The Secretary 
     of Education may waive the application of subsection (a) in 
     the case of any eligible agency that submits to the Secretary 
     of Education an application for such a waiver that--
       (1) demonstrates that an alternative formula will result in 
     a greater distribution of funds to the eligible institutions 
     or consortia of eligible

[[Page H8398]]

     institutions within the State that serve the highest numbers 
     of low-income individuals than the formula described in 
     subsection (a)(2); and
       (2) includes a proposal for such an alternative formula.
       (c) Minimum Amount.--
       (1) In general.--No distribution of funds provided to any 
     eligible institution or consortium of eligible institutions 
     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 of eligible institutions in 
     accordance with the provisions of this section.

     SEC. 115. SPECIAL RULES FOR VOCATIONAL EDUCATION.

       (a) Special Rule for Minimal Allocation.--
       (1) General authority.--Notwithstanding the provisions of 
     section 113 or 114 and in order to make a more equitable 
     distribution of funds for programs serving the highest 
     numbers or greatest percentages of low-income individuals, 
     for any program year for which a minimal amount is made 
     available by an eligible agency for distribution under 
     section 113 or 114 such agency may distribute such minimal 
     amount for such year--
       (A) on a competitive basis; or
       (B) through any alternative method determined by the 
     eligible agency.
       (2) 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 eligible agency under 
     section 113(a)(3) for sections 113 and 114 for a program 
     year.
       (b) Redistribution.--
       (1) In general.--In any program year that an eligible 
     provider receiving financial assistance under section 113 or 
     114 does not expend all of the amounts distributed to such 
     provider for such year under section 113 or 114, 
     respectively, such provider shall return any unexpended 
     amounts to the eligible agency for distribution under section 
     113 or 114, respectively. The eligible agency may waive the 
     requirements of the preceding sentence, on a case-by-case 
     basis, for good cause as determined by such agency.
       (2) Redistribution of amounts returned late in a program 
     year.--In any program year in which amounts are returned to 
     the eligible agency under paragraph (1) for programs 
     described in section 113 or 114 and the eligible agency is 
     unable to redistribute such amounts according to section 113 
     or 114, respectively, in time for such amounts to be expended 
     in such program year, the eligible agency shall retain such 
     amounts for distribution in combination with amounts made 
     available under such section for the following program year.
       (c) Construction.--Nothing in section 113 or 114 shall be 
     construed--
       (1) to prohibit a local educational agency (or a consortium 
     thereof) that receives assistance under section 113, from 
     working with an eligible provider (or consortium thereof) 
     that receives assistance under section 114, to carry out 
     secondary school vocational education activities in 
     accordance with this title; or
       (2) to prohibit an eligible provider (or consortium 
     thereof) that receives assistance under section 114, from 
     working with a local educational agency (or consortium 
     thereof) that receives assistance under section 113, to carry 
     out postsecondary and adult vocational education activities 
     in accordance with this title.
       (d) Local Application for Vocational Education 
     Activities.--
       (1) Application required.--Each provider in a State 
     desiring financial assistance under this subtitle for 
     vocational education activities shall submit an application 
     to the eligible agency for vocational education at such time, 
     in such manner, and accompanied by such information as such 
     agency (in consultation with other educational entities as 
     the eligible agency determines appropriate) may require. Such 
     application shall cover the same period of time as the period 
     of time applicable to the State plan submitted under section 
     104.
       (2) Contents.--Each application described in paragraph (1) 
     shall, at a minimum--
       (A) describe how the vocational education activities 
     required under section 123 will be carried out with funds 
     received under this subtitle;
       (B) describe how the activities to be carried out relate to 
     meeting the State goals, and reaching the State benchmarks, 
     concerning vocational education activities;
       (C) describe how the provider will address the needs of 
     students who participate in vocational education activities 
     to be taught to the same challenging academic proficiencies 
     as all students;
       (D) describe the process that will be used to independently 
     evaluate and continuously improve the performance of the 
     provider;
       (E) describe how the provider will coordinate the 
     activities of the provider with the activities of the local 
     board in the local workforce development area; and
       (F) describe how parents, teachers, and the community are 
     involved in the development and implementation of activities 
     under this section.

     SEC. 116. DISTRIBUTION FOR ADULT EDUCATION AND LITERACY.

       (a) Reservations for State and Local Activities.--
       (1) In general.--The sum of the funds made available to a 
     State for any program year under paragraphs (4) and (5) of 
     section 103(a) for adult education and literacy activities 
     shall be made available in accordance with this section.
       (2) Distribution.--Of the sum described in paragraph (1) 
     that is made available to an eligible agency for adult 
     education and literacy for a program year--
       (A) not less than 85 percent shall be made available to 
     award grants in accordance with this section to carry out 
     adult education and literacy activities;
       (B) not more than 10 percent shall be made available to 
     carry out State activities described in section 124(a); and
       (C) subject to subparagraph (A), not more than 5 percent, 
     or $50,000, whichever is greater, shall be made available for 
     administrative expenses at the State level.
       (b) Grants.--
       (1) In general.--Except as provided in paragraph (2), from 
     the amount made available to an eligible agency for adult 
     education and literacy under subsection (a)(2)(A) 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 carry 
     out adult education and literacy activities.
       (2) Consortia.--An eligible agency may award a grant under 
     this section to a consortium that includes a provider 
     described in paragraph (1) 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 title; and
       (B) enters into a contract with such provider to carry out 
     adult education and literacy activities.
       (c) Grant Requirements.--
       (1) Equitable access.--Each eligible agency awarding a 
     grant under this section for adult education and literacy 
     activities shall ensure that the providers described in 
     subsection (b) will be provided direct and equitable access 
     to all Federal funds provided under this section.
       (2) Special rule.--Each eligible agency awarding a grant 
     under this section shall not use any funds made available 
     under this title for adult education and literacy activities 
     for the purpose of supporting or providing programs, 
     services, or activities for individuals who are not 
     individuals described in subparagraphs (A) and (B) of section 
     4(1), except that such agency may use such funds for such 
     purpose if such programs, services, or activities are related 
     to family literacy services.
       (3) Considerations.--In awarding grants under this section, 
     the eligible agency shall consider--
       (A) the past effectiveness of a provider described in 
     subsection (b) 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 the provider will coordinate 
     services with other literacy and social services available in 
     the community, including coordination with one-stop career 
     center systems established in section 121(d); and
       (C) the commitment of the provider to serve individuals in 
     the community who are most in need of literacy services.
       (d) Local Administrative Cost Limits.--
       (1) In general.--Except as provided in paragraph (2), of 
     the funds provided under this section by an eligible agency 
     to a provider described in subsection (b), not less than 95 
     percent shall be expended for provision of adult education 
     and literacy 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 
     eligible agency shall negotiate with the provider described 
     in subsection (b) in order to determine an adequate level of 
     funds to be used for noninstructional purposes.

     SEC. 117. DISTRIBUTION FOR FLEXIBLE ACTIVITIES.

       (a) Employment and Training Activities.--A State that uses 
     funds made available to the State under this title through 
     the flex account to carry out employment and training 
     activities shall distribute such funds in accordance with 
     section 111.
       (b) At-Risk Youth Activities.--A State that uses funds made 
     available to the State under this title through the flex 
     account to carry out at-risk youth activities shall 
     distribute such funds in accordance with section 112.
       (c) Vocational Education Activities.--A State that uses 
     funds made available to the State under this title through 
     the flex account to carry out vocational education activities 
     shall distribute such funds in accordance with sections 113, 
     114, and 115.
       (d) Adult Education and Literacy Activities.--A State that 
     uses funds made available to the State under this title 
     through the flex account to carry out adult education and 
     literacy activities shall distribute such funds in accordance 
     with section 116.
                        Subtitle C--Use of Funds

     SEC. 121. EMPLOYMENT AND TRAINING ACTIVITIES.

       (a) In General.--Funds made available to States and local 
     workforce development areas under this title for employment 
     and training activities--
       (1) shall be used to carry out the activities described in 
     subsections (b), (e), and (g); and
       (2) may be used to carry out the activities described in 
     subsections (c) and (f).
       (b) Required State Activities.--A State shall use funds 
     made available for State employment and training activities 
     under section 111(a)(2)(B)--

[[Page H8399]]

       (1) to provide rapid response assistance;
       (2) to provide labor market information as described in 
     section 139; and
       (3) to conduct evaluations, under section 106(d), of 
     activities authorized in this section.
       (c) Permissible State Activities.--A State may use funds 
     made available for State employment and training activities 
     under section 111(a)(2)(B)--
       (1) to provide services that may include--
       (A) providing professional development and technical 
     assistance;
       (B) making incentive grants to local workforce development 
     areas for exemplary performance in reaching or exceeding 
     benchmarks described in section 108(d)(4)(A);
       (C) providing economic development activities (to 
     supplement other funds provided by the State, a local agency, 
     or the private sector for such activities) that consist of--
       (i) providing services to upgrade the skills of employed 
     workers who are at risk of being permanently laid off;
       (ii) retraining employed workers in new technologies and 
     work processes that will facilitate the conversion and 
     restructuring of business to assist in the avoidance of a 
     permanent closure or substantial layoff at a plant, facility, 
     or enterprise;
       (iii) providing customized assessments of the skills of 
     workers and an analysis of the skill needs of employers;
       (iv) assisting consortia of small- and medium-size 
     employers in upgrading the skills of their workforces;
       (v) providing productivity and quality improvement training 
     programs for the workforces of small- and medium-size 
     employers; and
       (vi) establishing and implementing an employer loan program 
     to assist employees in skills upgrading;
       (D) implementing efforts to increase the number of 
     participants trained and placed in nontraditional employment; 
     and
       (E) carrying out other activities authorized in this 
     section that the State determines to be necessary to assist 
     local workforce development areas in carrying out activities 
     described in subsection (e) or (f) through the statewide 
     system;
       (2) to operate a fiscal and management accountability 
     information system under section 106(e);
       (3) to assist in the establishment of the one-stop career 
     center system described in subsection (d); and
       (4) to carry out the career grant pilot program described 
     in subsection (g).
       (d) Establishment of One-Stop Career Center System.--
       (1) In general.--There shall be established in a State that 
     receives an allotment under section 102 a one-stop career 
     center system, which--
       (A) shall provide the core services described in subsection 
     (e)(2);
       (B) shall provide access to the activities (if any) carried 
     out under subsection (f);
       (C) shall make labor market information described in 
     section 139 and subsection (e)(2)(D) available and shall 
     provide all job search, placement, recruitment, and other 
     labor exchange services authorized under the Wagner-Peyser 
     Act (29 U.S.C. 49 et seq.); and
       (D)(i) shall provide access to training services as 
     described in subsection (e)(3), which may include serving as 
     the point of distribution of career grants for training 
     services to participants in accordance with subsection 
     (e)(3); and
       (ii) may serve as the point of distribution of career 
     grants for training services to participants in accordance 
     with subsection (g).
       (2) One-stop delivery.--At a minimum, the one-stop career 
     center system shall make the services described in paragraph 
     (1) available--
       (A) through a network of eligible providers that assures 
     participants that the core services described in subsection 
     (e)(2) will be available regardless of where the participants 
     initially enter the statewide system, including the 
     availability of such services through multiple, connected 
     access points, linked electronically or technologically;
       (B) through a network of career centers that can provide 
     the services described in paragraph (1) to participants;
       (C) at not less than 1 physical, co-located career center 
     in each local workforce development area of the State, that 
     provides the services described in paragraph (1) to 
     participants seeking such services; or
       (D) through a combination of the options described in 
     subparagraphs (A) through (C).
       (e) Required Local Activities.--
       (1) In general.--Funds made available to local workforce 
     development areas under section 111(a)(2)(A) shall be used--
       (A) to establish the one-stop career center described in 
     subsection (d);
       (B) to provide the core services described in paragraph (2) 
     (referred to in this section as ``core services'') to 
     participants through the one-stop career center system; and
       (C) to provide training services described in paragraph (3) 
     (referred to in this section as ``training services'') to 
     participants described in such paragraph.
       (2) Core services.--Funds made available to local workforce 
     development areas under section 111(a)(2)(A) shall be used to 
     provide core services, which shall be available to all 
     individuals through a one-stop career center system and 
     shall, at a minimum, include--
       (A) outreach, intake, and orientation to the information 
     and other services available through the one-stop career 
     center system;
       (B) initial assessment of skill levels, aptitudes, 
     abilities, and supportive service needs;
       (C) job search and placement assistance, and, where 
     appropriate, career counseling;
       (D) provision of accurate labor market information relating 
     to--
       (i) local, State, and, if appropriate, regional or 
     national, occupations in demand; and
       (ii) skill requirements for such occupations, where 
     available;
       (E)(i) provision of accurate information relating to the 
     quality and availability of activities authorized in this 
     section, at-risk youth activities, vocational education 
     activities, adult education and literacy activities, and 
     vocational rehabilitation program activities;
       (ii) provision of information relating to adult education 
     and literary activities, through cooperative efforts with 
     eligible providers of adult education and literacy activities 
     described in section 116(b); and
       (iii) referral to appropriate activities described in 
     clauses (i) and (ii);
       (F) provision of eligibility information relating to 
     unemployment compensation, publicly funded education and 
     training programs (including registered apprenticeships), and 
     forms of public financial assistance, such as student aid 
     programs, that may be available in order to enable 
     individuals to participate in workforce and career 
     development activities;
       (G) dissemination of lists of providers and performance 
     information in accordance with paragraph (3)(E)(ii); and
       (H) provision of information regarding how the local 
     workforce development area is performing on the local 
     benchmarks described in section 108(d)(4)(A), and any 
     additional performance information provided by the local 
     board.
       (3) Required training services.--
       (A) Services.--Funds made available to local workforce 
     development areas under section 111(a)(2)(A) shall be used to 
     provide training services to individuals who are unable to 
     obtain employment through the core services, who after an 
     interview, evaluation or assessment, and counseling by an 
     eligible provider have been determined to be in need of 
     training services, and who meet the requirements of 
     subparagraph (B). Training services may include--
       (i) occupational skills training;
       (ii) on-the-job training;
       (iii) skills upgrading and retraining for persons not in 
     the workforce; and
       (iv) basic skills training when provided in combination 
     with services described in clause (i), (ii), or (iii).
       (B) Qualification.--
       (i) Requirement.--Except as provided in clause (ii), 
     provision of such training services shall be limited to 
     participants who--

       (I) are unable to obtain other grant assistance for such 
     services, including Federal Pell Grants established under 
     title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 
     et seq.); or
       (II) who require assistance beyond the assistance made 
     available under other grant assistance programs, including 
     Federal Pell Grants.

       (ii) Reimbursements.--Training services may be provided 
     under this paragraph to an individual who otherwise meets the 
     requirements of this paragraph while an application for a 
     Federal Pell Grant is pending, except that if such individual 
     is subsequently awarded a Federal Pell Grant, appropriate 
     reimbursement shall be made to the local workforce 
     development area from such Federal Pell Grant.
       (C) Priority.--In the event that funds are limited within a 
     local workforce development area, priority shall be given to 
     dislocated workers and other unemployed individuals for 
     receipt of training services provided under this paragraph. 
     The appropriate local board and the Governor shall provide 
     policy guidance to one-stop career center eligible providers 
     in the local workforce development area for making 
     determinations related to such priority.
       (D) Delivery of services.--Training services provided under 
     this paragraph shall be provided--
       (i) except as provided in section 107(d), through eligible 
     providers of such services identified in accordance with 
     section 107; and
       (ii) in accordance with subparagraph (E).
       (E) Consumer choice requirements.--
       (i) In general.--Training services provided under this 
     paragraph may be provided through the use of career grants, 
     contracts, or other methods (which may include performance-
     based contracting) and shall, to the extent practicable, 
     maximize consumer choice in the selection of an eligible 
     provider of such services.
       (ii) Eligible providers.--Each local workforce development 
     area, through one-stop career centers, shall make available--

       (I) the list of eligible providers of training services 
     required under section 107(b)(4), with a description of the 
     training courses available from such providers and a list of 
     the names of on-the-job training providers; and
       (II) the performance information described in subsections 
     (b)(4) and (d)(2) of section 107 relating to such providers.

       (iii) Purchase of services.--An individual eligible for 
     receipt of training services under this paragraph may select 
     an eligible provider of training services from the lists of 
     providers described in clause (ii)(I). Upon such selection, 
     the operator of the one-stop career center shall, to the 
     extent practicable, refer such individual to the eligible 
     provider of training services, and arrange for payment for 
     such services.
       (F) Use of career grants.--A State or a local workforce 
     development area may deliver all training services authorized 
     in this paragraph through the use of career grants.
       (f) Permissible Local Activities.--
       (1) Discretionary one-stop delivery activities.--Funds made 
     available to local workforce development areas under section 
     111(a)(2)(A) may be used to provide, through one-stop 
     delivery described in subsection (d)(2)--
       (A) co-location of services related to workforce and career 
     development activities, such as unemployment insurance, 
     vocational rehabilitation program activities, veterans' 
     employment services, or other public assistance;
       (B) intensive employment-related services for participants 
     who are unable to obtain employment through the core 
     services, as determined by the State;

[[Page H8400]]

       (C) dissemination to employers of information on activities 
     carried out through the statewide system;
       (D) customized screening and referral of qualified 
     participants to employment; and
       (E) customized employment-related services to employers on 
     a fee-for-service basis.
       (2) Supportive services.--Funds made available to local 
     workforce development areas under section 111(a)(2)(A) may be 
     used to provide supportive services to participants--
       (A) who are receiving training services; and
       (B) who are unable to obtain such supportive services 
     through other programs providing such services.
       (3) Followup services.--Funds made available to local 
     workforce development areas under section 111(a)(2)(A) may be 
     used to provide followup services for participants in 
     activities authorized in this section who are placed in 
     unsubsidized employment.
       (4) Needs-related payments.--
       (A) In general.--Funds made available to local workforce 
     development areas under section 111(a)(2)(A) may be used to 
     provide needs-related payments to dislocated workers who are 
     unemployed and do not qualify for, or have ceased to qualify 
     for, unemployment compensation, for the purpose of enabling 
     such individuals to participate in training services.
       (B) Additional eligibility requirements.--In addition to 
     the requirements contained in subparagraph (A), a dislocated 
     worker who has ceased to qualify for unemployment 
     compensation may be eligible to receive needs-related 
     payments under this paragraph only if such worker was 
     enrolled in the training services--
       (i) by the end of the 8th week of the worker's initial 
     unemployment compensation benefits period; or
       (ii) if later, by the end of the 8th week after the worker 
     is informed that a short-term layoff will, in fact, exceed 6 
     months.
       (C) Level of payments.--The level of a needs-related 
     payment made under this paragraph--
       (i) shall not exceed the greater of--

       (I) the applicable level of unemployment compensation; or
       (II) an amount equal to 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, for an equivalent period; and

       (ii) shall be adjusted to reflect changes in total family 
     income.
       (5) Career grant pilot program.--Funds made available to 
     local workforce development areas under section 111(a)(2)(A) 
     may be used to carry out the career grant pilot program 
     described in subsection (g), which may be carried out in 
     conjunction with the provision of training services under 
     subsection (e)(3).
       (g) Career Grant Pilot Program for Dislocated Workers.--The 
     State shall carry out (using funds made available under 
     section 111(a)(2)(B) or by making funds available to local 
     workforce development areas under section 111(a)(2)(A)) a 
     career grant pilot program for dislocated workers that is of 
     sufficient size, scope, and quality to measure the 
     effectiveness of the use of career grants for the provision 
     of training services under subsection (e)(3).
       (h) Local Administration.--Not more than 10 percent of the 
     funds made available under section 111(a)(2)(A) to a local 
     workforce development area may be used for administrative 
     expenses.

     SEC. 122. AT-RISK YOUTH ACTIVITIES.

       (a) Required Activities.--Funds made available to Governors 
     and local workforce development areas under this title for 
     at-risk youth activities shall be used to carry out, for at-
     risk youth, activities that--
       (1) provide strong linkages between academic, occupational, 
     and worksite learning;
       (2) provide postsecondary educational opportunities, where 
     appropriate;
       (3) involve business and parents in the design and 
     implementation of the activities;
       (4) provide adult mentoring;
       (5) provide career guidance and counseling; and
       (6) are of sufficient size, scope, and quality to be 
     effective.
       (b) Permissible Activities.--Funds made available to 
     Governors and local workforce development areas under this 
     title for at-risk youth activities may be used to carry out, 
     for at-risk youth, activities that provide--
       (1) tutoring, study skills training, and instruction, 
     leading to completion of secondary school, including dropout 
     prevention strategies;
       (2) alternative secondary school services;
       (3) paid and unpaid work experience, including summer 
     employment opportunities, that are directly linked to 
     academic, occupational, and worksite learning; and
       (4) training-related supportive services.
       (c) Local Administration.--Not more than 10 percent of the 
     funds made available under section 112(a)(2)(A) to a local 
     workforce development area may be used for administrative 
     expenses. The local board for the local workforce development 
     area may use not more than 4 percent of the funds made 
     available under section 112(a)(2)(A) for the administrative 
     expenses of the local board. The remainder of the 10 percent 
     may be used for administrative expenses of eligible providers 
     of at-risk youth activities in the local workforce 
     development area.

     SEC. 123. VOCATIONAL EDUCATION ACTIVITIES.

       (a) Permissible State Activities.--The eligible agency for 
     vocational education shall use not more than 11 percent of 
     the funds made available to the eligible agency under 
     subtitle A for activities that may include--
       (1) an assessment of the activities authorized in this 
     section;
       (2) support for tech-prep programs;
       (3) support for activities authorized in this section for 
     single parents, displaced homemakers, and single pregnant 
     women;
       (4) professional development activities, including--
       (A) inservice and preservice training in state-of-the-art 
     vocational education programs and techniques; and
       (B) support of education programs for teachers of 
     vocational education in public schools to ensure such 
     teachers stay current with the needs, expectations, and 
     methods of industry;
       (5) support for programs that offer experience in, and 
     understanding of, all aspects of the industry students are 
     preparing to enter;
       (6) leadership and instructional programs in technology 
     education;
       (7) support for cooperative education;
       (8) support for family and consumer sciences programs;
       (9) support for vocational student organizations;
       (10) improvement of career guidance and counseling;
       (11) technical assistance; and
       (12) performance awards for 1 or more eligible providers 
     that the eligible agency determines have achieved exceptional 
     performance in providing activities described in this 
     section.
       (b) Required Local Activities.--The eligible agency for 
     vocational education shall use not less than 85 percent of 
     the funds made available to the eligible agency under 
     subtitle A to provide financial assistance under sections 113 
     and 114 to eligible providers to enable such providers to 
     carry out activities authorized in this section that 
     include--
       (1)(A) integrating academic and vocational education;
       (B) integrating classroom and worksite learning; and
       (C) linking secondary and postsecondary education, 
     including implementing tech-prep programs;
       (2) providing career guidance and counseling;
       (3) providing vocational education programs of sufficient 
     size, scope, and quality to be effective;
       (4) improving and expanding access to quality, state-of-
     the-art activities authorized in this section;
       (5) providing professional development; and
       (6) involving business and parents in the design and 
     implementation of activities authorized in this section.

     SEC. 124. ADULT EDUCATION AND LITERACY ACTIVITIES.

       (a) Permissible State Activities.--The eligible agency for 
     adult education and literacy may use not more than 10 percent 
     of the funds made available to the eligible agency under 
     subtitle A for activities that may include--
       (1) the establishment or operation of professional 
     development programs to improve the quality of instruction 
     provided pursuant to local activities authorized in this 
     section, including instruction provided by volunteers;
       (2) the provision of technical assistance to eligible 
     providers of activities authorized in this section;
       (3) the provision of technology assistance to eligible 
     providers of activities authorized in this section to enable 
     the providers to improve the quality of such activities;
       (4) the support of State or regional networks of literacy 
     resource centers; and
       (5) the monitoring and evaluation of the quality of and the 
     improvement in activities authorized in this section.
       (b) Required Local Activities.--The eligible agency for 
     adult education and literacy shall require that each eligible 
     provider receiving a grant under section 116 use the grant to 
     establish or operate 1 or more programs that provide 
     instruction or services in 1 or more of the following 
     categories:
       (1) Adult education and literacy services.
       (2) Family literacy services.
       (3) English literacy programs.

     SEC. 125. FLEXIBLE ACTIVITIES.

       (a) In General.--A State may use the funds made available 
     to the State under this title through the flex account to 
     carry out--
       (1) employment and training activities;
       (2) at-risk youth activities;
       (3) vocational education activities; and
       (4) adult education and literacy activities.
       (b) Use of Funds.--
       (1) Employment and training activities.--A State that uses 
     funds made available to the State under this title through 
     the flex account to carry out employment and training 
     activities shall expend such funds in accordance with 
     sections 121 and 126.
       (2) At-risk youth activities.--A State that uses funds made 
     available to the State under this title through the flex 
     account to carry out at-risk youth activities shall expend 
     such funds in accordance with sections 122 and 126.
       (3) Vocational education activities.--A State that uses 
     funds made available to the State under this title through 
     the flex account to carry out vocational education activities 
     shall expend such funds in accordance with sections 123 and 
     126.
       (4) Adult education and literacy activities.--A State that 
     uses funds made available to the State under this title 
     through the flex account to carry out adult education and 
     literacy activities shall expend such funds in accordance 
     with sections 124 and 126.

     SEC. 126. REQUIREMENTS AND RESTRICTIONS RELATING TO USE OF 
                   FUNDS.

       (a) Fiscal Requirements for Vocational Education Activities 
     and Adult Education and Literacy Activities.--
       (1) Supplement not supplant.--Funds made available under 
     this title for vocational education activities or adult 
     education and literacy activities shall supplement, and may 
     not supplant, other public funds expended to carry out

[[Page H8401]]

     activities described in section 123 or 124, respectively.
       (2) Maintenance of effort.--
       (A) Determination.--
       (i) In general.--Except as provided in clauses (ii) and 
     (iii), and subparagraph (B), no payments shall be made under 
     this title for any program year to a State for vocational 
     education activities or adult education and literacy 
     activities unless the Secretary of Education determines that 
     the fiscal effort per student or the aggregate expenditures 
     of such State for activities described in section 123 or 124, 
     respectively, for the program year preceding the program year 
     for which the determination is made, equaled or exceeded such 
     effort or expenditures for activities described in section 
     123 or 124, respectively, for the second program year 
     preceding the fiscal year for which the determination is 
     made.
       (ii) Computation.--In computing the fiscal effort or 
     aggregate expenditures pursuant to clause (i), the Secretary 
     of Education shall exclude capital expenditures, special one-
     time project costs, similar windfalls, and the cost of pilot 
     programs.
       (iii) Decrease in federal support.--If the amount made 
     available for vocational education activities or adult 
     education and literacy activities under this title for a 
     fiscal year is less than the amount made available for 
     vocational education activities or adult education and 
     literacy activities, respectively, under this title for the 
     preceding fiscal year, then the fiscal effort per student or 
     the aggregate expenditures of a State required by clause (i) 
     for such preceding fiscal year shall be decreased by the same 
     percentage as the percentage decrease in the amount so made 
     available.
       (B) Special rule.--Notwithstanding any provision of the 
     Carl D. Perkins Vocational Education Act (as such Act was in 
     effect on September 24, 1990), a State shall be deemed to 
     have met the requirements of section 503 of such Act with 
     respect to decisions appealed by applications filed on April 
     30, 1993 and October 29, 1993 under section 452(b) of the 
     General Education Provisions Act.
       (C) Waiver.--The Secretary of Education may waive the 
     requirements of subparagraph (A) (with respect to not more 
     than 5 percent of expenditures required for the preceding 
     fiscal year by any eligible agency) for 1 program year only, 
     after making a determination that such waiver would be 
     equitable due to exceptional or uncontrollable circumstances 
     affecting the ability of the eligible agency 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 paragraph 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.
       (3) Expenditures of non-federal funds for adult education 
     and literacy activities.--For any program year for which an 
     allotment is made to the State under this title, the State 
     shall expend, on programs and activities relating to adult 
     education and literacy activities, an amount, derived from 
     sources other than the Federal Government, equal to 25 
     percent of the amount made available to a State under 
     paragraphs (4) and (5) of section 103(a) for adult education 
     and literacy activities.
       (b) Limitations on Activities That Impact Employees.--
       (1) Wages.--No funds provided under this title shall be 
     used to pay the wages of incumbent employees during their 
     participation in economic development activities described in 
     section 121(c)(1)(C) provided through the statewide system.
       (2) Relocation.--
       (A) In general.--No funds provided under this title for an 
     employment and training activity 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, 
     if such original location is within the United States.
       (B) Repayment.--If the Secretary of Labor determines that a 
     violation of this paragraph or paragraph (3) has occurred, 
     the Secretary of Labor shall require the State that has 
     violated this paragraph or paragraph (3), respectively, to 
     repay to the United States an amount equal to the amount 
     expended in violation of this paragraph or paragraph (3), 
     respectively.
       (3) Training and assessments following relocation.--No 
     funds provided under this title for an employment and 
     training activity shall be used for customized or skill 
     training, on-the-job training, or company-specific 
     assessments of job applicants or employees, for any business 
     or part of a business, that has relocated, until 120 days 
     after the date on which such business commences operations at 
     the new location, if the relocation of such business or part 
     of a business, results in a loss of employment for any 
     employee of such business at the original location and such 
     original location is within the United States.
       (4) Displacement.--
       (A) Prohibition on displacement.--A participant in an 
     activity authorized in section 121 or 122 (referred to in 
     this section as a ``specified activity'') shall not displace 
     (including a partial displacement, such as a reduction in the 
     hours of nonovertime work, wages, or employment benefits) any 
     currently employed employee (as of the date of the 
     participation).
       (B) Prohibition on impairment of contracts.--A specified 
     activity shall not impair an existing contract for services 
     or collective bargaining agreement, and no such activity that 
     would be inconsistent with the terms of a collective 
     bargaining agreement shall be undertaken without the written 
     concurrence of the labor organization and employer concerned.
       (C) Prohibition on replacement.--A participant in a 
     specified activity shall not be employed in a job--
       (i) when any other individual is on temporary layoff, with 
     the clear possibility of recall, from the same or any 
     substantially equivalent job with the participating employer; 
     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 
     with the participant.
       (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 
     specified activities. To the extent that a State workers' 
     compensation law applies, workers' compensation shall be 
     provided to participants on the same basis as the 
     compensation is provided to other individuals in the State in 
     similar employment.
       (6) Employment conditions.--Participants employed or 
     assigned to work in positions subsidized for specified 
     activities 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) Effect on other laws.--Nothing in this Act shall be 
     construed to modify or affect any Federal or State law 
     prohibiting discrimination on the basis of race, color, 
     religion, sex, national origin, age, or disability.
       (8) Nondiscrimination.--Except as otherwise permitted in 
     law, no individual may be discriminated against with respect 
     to participation in specified activities because of race, 
     color, religion, sex, national origin, age, or disability.
       (9) Grievance procedure.--A State that receives an 
     allotment under section 102 shall establish and maintain a 
     grievance procedure for resolving complaints alleging 
     violations of any of the prohibitions or requirements 
     described in this subsection.
       (10) Exclusive remedy.--Except as provided in paragraph 
     (7), nothing in this Act shall be construed to provide an 
     individual with an entitlement to a service or to establish a 
     right for an individual to bring any action for a violation 
     of a prohibition or requirement of this title or to obtain 
     services through an activity established under this title, 
     except that a participant in specified activities under this 
     title may pursue a complaint alleging a violation of any of 
     the prohibitions or requirements described in this subsection 
     through the grievance procedure described in paragraph (9).
       (c) Limitations on Participants in Training Services.--
       (1) Diploma or equivalent.--
       (A) In general.--No individual may participate in training 
     services described in section 121(e)(3) until the individual 
     has obtained a secondary school diploma or its recognized 
     equivalent, or is enrolled in a program or course of study to 
     obtain a secondary school diploma or its recognized 
     equivalent.
       (B) Exception.--Nothing in subparagraph (A) shall prevent 
     participation in such training services by an individual for 
     whom the requirement described in subparagraph (A) has been 
     determined to be inappropriate, pursuant to the interview, 
     evaluation or assessment, and counseling described in section 
     121(e)(3)(A).
       (2) Services.--
       (A) Referral.--If an individual who has not obtained a 
     secondary school diploma or its recognized equivalent applies 
     to participate in such training services, and a determination 
     described in paragraph (1)(B) has not been made for such 
     individual, such individual shall be referred to State-
     approved adult education and literacy activities that provide 
     instruction designed to help such individual obtain a 
     secondary school diploma or its recognized equivalent.
       (B) Provision of services.--Funds made available under 
     section 111(a)(2)(A) and allocated within the local workforce 
     development area for the provision of such training services 
     may be used to provide State-approved adult education and 
     literacy activities 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 such training services; 
     and
       (ii) are otherwise unable to obtain such services.
       (d) Drug Testing Limitations on Participants in Training 
     Services.--
       (1) Finding.--Congress finds that--
       (A) the possession, distribution, and use of drugs by 
     participants in training services should not be tolerated, 
     and that such use prevents participants from making full use 
     of the benefits extended through such training services at 
     the expense of taxpayers; and
       (B) applicants and participants should be tested for 
     illegal drug use, in order to maximize the training services 
     and assistance provided under this title.
       (2) Drug tests.--Each eligible provider of training 
     services described in section 121(e)(3) shall administer a 
     drug test--
       (A) on a random basis, to individuals who apply to 
     participate in such training services; and
       (B) to a participant in such training services, 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 such training 
     services, the applicant shall agree to submit to a drug test 
     administered as described in paragraph (2)(A) and, if the 
     test is administered to the applicant, shall pass the test.

[[Page H8402]]

       (4) Eligibility of participants.--In order for such a 
     participant to remain eligible to participate in such 
     training services, the participant shall agree to submit to a 
     drug test administered as described in paragraph (2)(B) 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 eligible provider shall 
     dismiss the participant from participation in such training 
     services.
       (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 such training services. If the 
     individual demonstrates that the individual has completed a 
     drug treatment program and passed a drug test within the 30-
     day period prior to the date of the reapplication, the 
     individual may participate in such training services, 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 such training services 
     and fails a drug test administered under paragraph (2) by the 
     eligible provider, while the individual is an applicant or a 
     participant, the eligible provider shall disqualify the 
     individual from eligibility for, or dismiss the individual 
     from participation in, such training services. The individual 
     shall not be eligible to reapply for participation in the 
     such training services for 2 years after such 
     disqualification or dismissal.
       (6) Appeal.--A decision by an eligible provider to 
     disqualify an individual from eligibility for participation 
     in such training services 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 eligible 
     provider is located.
       (7) National uniform guidelines.--
       (A) In general.--The Secretary of Labor shall develop 
     voluntary guidelines to assist eligible providers concerning 
     the drug testing required under this subsection.
       (B) Privacy.--The guidelines shall promote, to the maximum 
     extent practicable, individual privacy in the collection of 
     specimen samples for such drug testing.
       (C) Laboratories and procedures.--With respect to standards 
     concerning laboratories and procedures for such drug testing, 
     the guidelines shall incorporate the Mandatory Guidelines for 
     Federal Workplace Drug Testing Programs, 53 Fed. Reg. 11970 
     (1988) (or a successor to such guidelines), including the 
     portion of the mandatory guidelines that--
       (i) establishes comprehensive standards for all aspects of 
     laboratory drug testing and laboratory procedures, including 
     standards that require the use of the best available 
     technology for ensuring the full reliability and accuracy of 
     drug tests and strict procedures governing the chain of 
     custody of specimen samples;
       (ii) establishes the minimum list of drugs for which 
     individuals may be tested; and
       (iii) establishes appropriate standards and procedures for 
     periodic review of laboratories and criteria for 
     certification and revocation of certification of laboratories 
     to perform such drug testing.
       (D) Screening and confirmation.--The guidelines described 
     in subparagraph (A) shall provide that, for drug testing 
     conducted under this subsection--
       (i) each laboratory involved in the drug testing of any 
     individual shall have the capability and facility, at such 
     laboratory, of performing screening and confirmation tests;
       (ii) all tests that indicate the use, in violation of law 
     (including Federal regulation) of a drug by the individual 
     shall be confirmed by a scientifically recognized method of 
     testing capable of providing quantitative data regarding the 
     drug;
       (iii) each specimen sample shall be subdivided, secured, 
     and labeled in the presence of the individual; and
       (iv) a portion of each specimen sample shall be retained in 
     a secure manner to prevent the possibility of tampering, so 
     that if the confirmation test results are positive the 
     individual has an opportunity to have the retained portion 
     assayed by a confirmation test done independently at a second 
     certified laboratory, if the individual requests the 
     independent test not later than 3 days after being advised of 
     the results of the first confirmation test.
       (E) Confidentiality.--The guidelines shall provide for the 
     confidentiality of the test results and medical information 
     (other than information relating to a drug) of the 
     individuals tested under this subsection, except that the 
     provisions of this subparagraph shall not preclude the use of 
     test results for the orderly imposition of appropriate 
     sanctions under this subsection.
       (F) Selection for random tests.--The guidelines shall 
     ensure that individuals who apply to participate in the 
     training services described in paragraph (2) are selected for 
     drug testing on a random basis, using nondiscriminatory and 
     impartial methods.
       (8) Nonliability of local boards.--A local board, and the 
     individual members of a local board, shall be immune from 
     civil liability with respect to any claim based in whole or 
     part on activities carried out to implement this subsection.
       (9) Reporting requirements.--An eligible provider shall 
     make records of drug testing conducted under this subsection 
     available for inspection by other eligible providers, 
     including eligible providers in other local workforce 
     development areas, for the sole purpose of enabling the 
     providers to determine the eligibility status of an applicant 
     pursuant to this subsection.
       (10) Use of drug tests.--No Federal, State, or local 
     prosecutor may use drug test results obtained under this 
     subsection in a criminal action.
       (11) Definitions.--As used in this subsection:
       (A) Drug.--The term ``drug'' means a controlled substance, 
     as defined in section 102(6) of the Controlled Substances 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 
     eligible provider administering the test.
       (C) Random basis.--For purposes of the application of this 
     subsection in a State, the term ``random basis'' has the 
     meaning determined by the Governor of the State, in the sole 
     discretion of the Governor.
       (e) Supportive Services.--Supportive services may be 
     provided with funds provided through the allotment described 
     in section 102 only to the extent that such services are not 
     available through alternative funding sources specifically 
     designated for such services.
       (f) Special Rule for Criminal Offenders.--Notwithstanding 
     subtitle B and this subtitle, a portion of the funds made 
     available under subtitle A may be distributed to 1 or more 
     State corrections agencies to enable the State corrections 
     agencies to carry out any activity described in this subtitle 
     for juvenile and adult criminal offenders in correctional 
     institutions in the State, including correctional 
     institutions operated by local authorities.
       (g) Sense of the Congress.--It is the sense of the Congress 
     that, to the greatest extent practicable, all equipment and 
     products purchased with funds made available under this title 
     should be made in the United States.
                    Subtitle D--National Activities

     SEC. 131. COORDINATION PROVISIONS.

       (a) Collaborative Administration.--The Secretary of Labor 
     and the Secretary of Education (referred to in this section 
     as ``the Secretaries'') shall enter into an interagency 
     agreement to administer the provisions of this title (other 
     than sections 103(d), 113, 114, 126(a), 126(b), 138, and 139 
     (referred to in this section as the ``excluded 
     provisions'')).
       (b) Responsibilities of Secretaries.--Such agreement shall 
     specify the manner in which the Secretaries shall administer 
     this title (other than the excluded provisions), including--
       (1) making allotment determinations under section 102;
       (2) reviewing State plans submitted in accordance with 
     section 104;
       (3) carrying out the duties assigned to the Secretaries 
     under section 106;
       (4)(A) establishing uniform procedures, including 
     grantmaking procedures; and
       (B) issuing uniform guidelines and regulations, subject to 
     subsection (e);
       (5) carrying out the duties assigned to the Secretaries 
     under this subtitle (other than sections 138 and 139);
       (6) preparing and submitting to the Committee on Economic 
     and Educational Opportunities of the House of Representatives 
     and the Committee on Labor and Human Resources of the Senate 
     an annual report on the absolute and relative performance of 
     States in reaching State benchmarks; and
       (7) reviewing federally funded education, employment, and 
     job training programs, other than activities authorized under 
     this title, and submitting recommendations to the Committees 
     described in paragraph (6) regarding the integration of such 
     programs into the statewide systems.
       (c) Contents.--The interagency agreement shall include, at 
     a minimum--
       (1) a description of the methods the Secretaries will use 
     to work together to carry out their duties and 
     responsibilities under this title in a manner that will 
     ensure that neither the Department of Labor nor the 
     Department of Education duplicates the work of the other 
     department; and
       (2) a description of the manner in which the Secretaries 
     will utilize personnel and other resources of the Department 
     of Labor and the Department of Education to administer this 
     title (other than the excluded provisions).
       (d) Administration of the Act.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretaries shall prepare and 
     submit 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, 
     the interagency agreement. Such agreement shall also be 
     available to the public through publication in the Federal 
     Register.
       (2) Approval.--Not later than 200 days after the date of 
     enactment of this Act, the President shall--
       (A) approve or disapprove the interagency agreement made by 
     the Secretaries; and
       (B) if the agreement is disapproved, make recommendations 
     to the Secretaries with respect to an alternative plan and 
     require the Secretaries to submit such a plan in accordance 
     with this section not later than 30 days after the date of 
     the disapproval.
       (e) Limitation on Federal Regulations.--The Secretary of 
     Labor or the Secretary of Education may issue regulations 
     under this title only to the extent necessary to administer 
     and ensure compliance with the specific requirements of this 
     title.
       (f) Effect on Personnel.--
       (1) In general.--The Secretaries 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 otherwise minimally 
     necessary to carry out this Act are terminated.

[[Page H8403]]

       (2) Scope.--
       (A) Initial reductions.--Not later than July 1, 1998, the 
     Secretaries shall take the actions described in paragraph 
     (1), including reduction in force actions, with respect to 
     not less than \1/3\ of the number of positions of personnel 
     that relate to a covered activity.
       (B) Subsequent reductions.--Not later than July 1, 2003, 
     the Secretaries shall take the actions described in paragraph 
     (1)--
       (i) with respect to not less than 60 percent of the number 
     of positions of personnel that relate to a covered activity, 
     unless the Secretaries submit (prior to July 1, 2003) a 
     report to Congress demonstrating why such actions have not 
     occurred; or
       (ii) with respect to not less than 40 percent of the number 
     of positions of personnel that relate to a covered activity, 
     if the Secretaries submit the report referred to in clause 
     (i).
       (C) Calculation.--For purposes of calculating, under this 
     paragraph, the number of positions of personnel that relate 
     to a covered activity, such number shall include the number 
     of positions of personnel that are terminated under paragraph 
     (1).

     SEC. 132. INCENTIVE GRANTS AND SANCTIONS.

       (a) Incentive Grants.--
       (1) Award of grants.--From amounts reserved under section 
     151(b)(5) for any fiscal year, the Secretaries may award 
     incentive grants to States, each of which shall be awarded 
     for not more than $15,000,000 per fiscal year to a State 
     that--
       (A)(i) reaches or exceeds, during the most recent 12-month 
     period for which data are available, State benchmarks 
     required under section 106(b), including the benchmarks 
     required under section 106(b)(3); or
       (ii) demonstrates continuing progress toward reaching or 
     exceeding, during the 3-year period covered by the State plan 
     submitted under section 104, the benchmarks described in 
     clause (i);
       (B) obtains an eligibility determination described in 
     paragraph (2)(A) for such benchmarks; and
       (C) demonstrates, in the State plan information submitted 
     under section 104(b)(1)(B)(ii), that the Governor and 
     eligible agencies have agreed on all elements of the State 
     plan.
       (2) Eligibility determinations.--
       (A) Initial determinations.--
       (i) Determination.--Not later than 30 days after receipt of 
     the State plan submitted under section 104, the Secretaries 
     shall--

       (I) compare the proposed State benchmarks identified in the 
     State plan with State benchmarks proposed in other State 
     plans; and
       (II) determine if the proposed State benchmarks, taken as a 
     whole, are sufficient to make the State eligible to qualify 
     for an incentive grant under this subsection, if the State 
     meets the requirements of subparagraphs (A) and (C) of 
     paragraph (1).

       (ii) Notification, revision, and technical assistance.--If 
     the Secretaries determine that a State is not eligible to 
     qualify for an incentive grant pursuant to clause (i)(II), 
     the Secretaries shall provide, upon request, technical 
     assistance to the State regarding the necessary action to be 
     taken to make the State eligible to qualify for such grant 
     under this subsection. Such State shall have 30 days after 
     the date on which the State receives notification of 
     ineligibility or the date on which the State receives 
     technical assistance, whichever is later, to revise the State 
     benchmarks in order to become eligible to qualify for an 
     incentive grant under this subsection, if the State meets the 
     requirements of subparagraphs (A) and (C) of paragraph (1).
       (B) Grant determinations.--Not later than 30 days after 
     receipt of an annual report submitted under section 106(c) 
     that contains an application for such an incentive grant from 
     a State that meets the requirements of paragraph (1), the 
     Secretaries shall--
       (i) compare the progress the State has made toward reaching 
     or exceeding the State benchmarks, as described in such 
     annual report, with the progress made by the other States 
     towards reaching or exceeding their State benchmarks, as 
     described in such annual reports of the other States; and
       (ii) determine if the progress the State has made toward 
     reaching or exceeding the State benchmarks, taken as a whole, 
     is sufficient to enable the State to receive an incentive 
     grant under this subsection.
       (3) Use of funds.--A State that receives an incentive grant 
     may use funds made available through the grant only to carry 
     out workforce and career development activities. 
     Determinations concerning the distribution of such funds 
     shall be made by the individuals and entities participating 
     in the collaborative process described in subsection (a) or 
     (b) of section 105.
       (b) Sanctions.--
       (1) Finding.--If a State fails to meet the State benchmarks 
     required under section 106(b) for the 3 years covered by a 
     State plan described in section 104, the Secretaries shall 
     determine whether the failure is attributable to--
       (A) employment and training activities;
       (B) at-risk youth activities;
       (C) vocational education activities; or
       (D) adult education and literacy activities.
       (2) Technical assistance or reduction of allotments.--
       (A) In general.--The Secretaries may--
       (i) provide technical assistance to the State to improve 
     the level of performance of the State; or
       (ii) on making a determination described in paragraph (1), 
     reduce, by not more than 10 percent, the portion of the 
     allotment made under section 102 for the category of 
     activities to which the failure is attributable.
       (B) Portion of the allotment.--For purposes of subparagraph 
     (A), in determining a portion of an allotment for a category 
     of activities, the Secretaries shall include in such portion 
     any funds allocated to such category from the flex account.
       (3) Funds resulting from reduced allotments.--The 
     Secretaries may use an amount retained as a result of a 
     reduction in an allotment made under paragraph (2)(A)(ii) to 
     award an incentive grant under subsection (a).

     SEC. 133. NATIONAL EMERGENCY GRANTS.

       (a) In General.--From the amounts reserved under section 
     151(b)(5), the Secretary of Labor, in accordance with the 
     interagency agreement developed pursuant to section 131, is 
     authorized to award national emergency grants, in a timely 
     manner--
       (1) to an entity described in subsection (b) to provide 
     employment and training assistance to workers affected by 
     major economic dislocations, such as plant closures, mass 
     layoffs, or closures and realignments of military 
     installations; and
       (2) to provide assistance to the Governor of any State 
     within the boundaries of which is an area that has suffered 
     an emergency or a major disaster as defined in paragraphs (1) 
     and (2), respectively, of section 102 of The Robert T. 
     Stafford Disaster Relief and Emergency Assistance Act (42 
     U.S.C. 5122(1) and (2)) (referred to in this section as the 
     ``disaster area'').
       (b) Employment and Training Assistance Requirements.--
       (1) Application.--To be eligible to receive a grant under 
     subsection (a)(1), an entity shall submit an application to 
     the Secretary of Labor at such time, in such manner, and 
     accompanied by such information, as the Secretary may 
     reasonably require.
       (2) Eligible entity.--For purposes of this section, the 
     term ``entity'' means a State, unit of general local 
     government, or public or private local entity, including a 
     for profit or nonprofit entity.
       (c) Disaster Relief Employment Assistance Requirements.--
     Funds made available under subsection (a)(2)--
       (1) shall be used exclusively to provide employment on 
     projects that provide food, clothing, shelter, and other 
     humanitarian assistance for disaster victims, and projects 
     regarding demolition, cleaning, repair, renovation, and 
     reconstruction of damaged and destroyed structures, 
     facilities, and lands located within the disaster area; and
       (2) may be expended through public and private agencies and 
     organizations engaged in such projects.

     SEC. 134. EVALUATION; RESEARCH, DEMONSTRATIONS, 
                   DISSEMINATION, AND TECHNICAL ASSISTANCE.

       (a) Single Plan.--
       (1) In general.--The Secretaries, as part of the 
     interagency agreement required under section 131, shall 
     develop a single plan for evaluation and assessment, 
     research, demonstrations, dissemination, and technical 
     assistance activities with regard to the activities assisted 
     under this title.
       (2) Plan.--Such plan shall--
       (A) identify the activities the Secretaries will carry out 
     under this section;
       (B) describe how such activities will be carried out 
     collaboratively;
       (C) describe how the Secretaries will evaluate such 
     activities in accordance with subsection (b); and
       (D) include such other information as the Secretaries 
     determine to be appropriate through the interagency 
     agreement.
       (b) Evaluation and Assessment.--
       (1) In general.--From amounts made available under 
     paragraph (3), the Secretaries shall provide for the conduct 
     of an independent evaluation and assessment of employment and 
     training activities, at-risk youth activities, vocational 
     education activities, and adult education and literacy 
     activities, through studies and analyses conducted 
     independently through grants and contracts awarded on a 
     competitive basis.
       (2) Contents.--Such evaluation and assessment shall include 
     descriptions of--
       (A) the extent to which State, local, and tribal entities 
     have developed, implemented, or improved the statewide 
     system;
       (B) the degree to which the expenditures at the Federal, 
     State, local, and tribal levels address improvement in 
     employment and training activities, at-risk youth activities, 
     vocational education activities, and adult education and 
     literacy activities, including the impact of funds provided 
     under this title on the delivery of such activities;
       (C) the extent to which vocational education activities and 
     at-risk youth activities succeed in preparing individuals 
     participating in such activities for entry into postsecondary 
     education, further learning, or high-skill, high-wage 
     careers;
       (D) the effect of benchmarks, performance measures, and 
     other measures of accountability on the delivery of 
     employment and training activities, at-risk youth activities, 
     vocational education activities, and adult education and 
     literacy activities, including family literacy services;
       (E) the extent to which employment and training activities 
     enhance the employment and earnings of participants in such 
     activities, reduce income support costs, improve the 
     employment competencies of such participants, and increase 
     the level of employment of program participants over the 
     level of employment that would have existed in the absence of 
     such activities, which may be evaluated using experimental 
     and control groups chosen by scientific random assignment; 
     and
       (F) the extent to which the adult education and literacy 
     activities, including family literacy services, increase the 
     literacy skills of adults, and of children in the case of 
     family literacy services, lead the participants in such 
     activities to involvement in further education and training, 
     enhance the employment and earnings of such participants, 
     and, if applicable, lead to

[[Page H8404]]

     other positive outcomes such as reductions in recidivism in 
     the case of prison-based adult education and literacy 
     activities.
       (3) Authorization.--There are authorized to be appropriated 
     $15,000,000 for fiscal year 1998 and such sums as may be 
     necessary for each of the fiscal years 1999 through 2002 to 
     carry out this subsection.
       (c) Research.--
       (1) In general.--The Secretaries, pursuant to the 
     interagency agreement, shall award grants, on a competitive 
     basis, to an institution of higher education, a public or 
     private organization or agency, or a consortium of such 
     institutions, organizations, or agencies to establish a 
     national research center or centers--
       (A) to carry out research for the purpose of developing, 
     improving, and identifying the most successful methods and 
     techniques for addressing the education, employment, and 
     training needs of adults;
       (B) to carry out research for the purpose of developing, 
     improving, and identifying the most successful methods for 
     successfully addressing the education, employment, and 
     training needs of at-risk youth;
       (C) to carry out research to increase the effectiveness and 
     improve the implementation of vocational education 
     activities, including conducting research and development, 
     and providing technical assistance, with respect to--
       (i) combining academic, vocational education, and worksite 
     learning;
       (ii) identifying ways to establish effective linkages among 
     employment and training activities, at-risk youth activities, 
     and vocational education activities, at the State and local 
     levels; and
       (iii) conducting studies providing longitudinal information 
     or formative evaluation with respect to vocational education 
     activities;
       (D) to carry out research to increase the effectiveness of 
     and improve the quality of adult education and literacy 
     activities, including family literacy services;
       (E) to provide technical assistance to State and local 
     recipients of assistance under this title in developing and 
     using benchmarks and performance measures for improvement of 
     workforce and career development activities; and
       (F) to carry out such other activities as the Secretaries 
     determine to be appropriate to achieve the purposes of this 
     title.
       (2) Summary.--The Secretaries shall provide an annual 
     report summarizing the evaluations and assessments described 
     in subsection (b), and the research conducted pursuant to 
     this subsection, and the findings of such evaluations and 
     assessments, and research, to the Committee on Economic and 
     Educational Opportunities of the House of Representatives and 
     the Committee on Labor and Human Resources of the Senate.
       (3) Authorization.--There are authorized to be appropriated 
     $15,000,000 for fiscal year 1998 and such sums as may be 
     necessary for each of the fiscal years 1999 through 2002 to 
     carry out this subsection.
       (d) Demonstrations, Dissemination, and Technical 
     Assistance.--
       (1) Authority.--
       (A) Programs and assistance authorized.--The Secretaries, 
     pursuant to the interagency agreement, are authorized to 
     carry out demonstration programs, to replicate model 
     programs, to disseminate best practices information, and to 
     provide technical assistance, for the purposes of developing, 
     improving, and identifying the most successful methods and 
     techniques for providing the activities assisted under this 
     title.
       (B) Activities.--Such activities may be carried out 
     directly or through grants, contracts, cooperative 
     agreements, or through the national center or centers, and 
     may include projects--
       (i) conducted jointly with the Department of Defense to 
     develop training programs utilizing computer-based and other 
     innovative learning technologies;
       (ii) which promote the use of distance learning--

       (I) to enable students to take courses through the use of 
     media technology, such as video, teleconferencing, computers, 
     or the Internet; and
       (II) to deliver continuing education, skills upgrading and 
     retraining services, and postsecondary education, directly to 
     the community or to individuals who would not otherwise have 
     access to such education and services; and

       (iii) conducted through partnerships with national 
     organizations which have special expertise in developing, 
     organizing, and administering employment and training 
     services for individuals with disabilities at the national, 
     State, and local levels.
       (2) Clearinghouse.--The Secretaries shall maintain a 
     clearinghouse, through the national center or centers, that 
     will collect and disseminate to Federal, State, and local 
     organizations, agencies, and service providers data and 
     information, including information on best practices, about 
     the condition of statewide systems and employment and 
     training activities, at-risk youth activities, vocational 
     education activities, and adult education and literacy 
     activities.
       (3) Technical assistance.--The Secretaries shall provide 
     technical assistance to States and local areas to enhance the 
     capacity of such States and local areas to develop and 
     deliver effective activities under this title.
       (4) Authorization.--There are authorized to be appropriated 
     $30,000,000 for fiscal year 1998 and such sums as may be 
     necessary for each of fiscal years 1999 through 2002 to carry 
     out this subsection.
       (e) Transition Period.--Notwithstanding any other provision 
     of law, the Secretaries 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 (c) on July 1, 1998.
       (f) Definition.--As used in this section, the term 
     ``institution of higher education'' has the meaning given the 
     term in section 1201(a) of the Higher Education Act of 1965 
     (20 U.S.C. 1141(a)).
       (g) 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''.
       (h) 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 (e) shall take 
     effect on January 1, 1998.
       (3) Amendments.--The amendments made by subsection (g) 
     shall take effect on the date of enactment of this Act.

     SEC. 135. MIGRANT AND SEASONAL FARMWORKER PROGRAM.

       (a) In General.--From amounts reserved under section 
     151(b)(2), the Secretaries shall make grants to, or enter 
     into contracts with, eligible entities to carry out the 
     activities described in subsection (d).
       (b) Eligible Entities.--To be eligible to receive a grant 
     or enter into a contract under this section, an entity shall 
     have an understanding of the problems of migrant farmworkers 
     or seasonal farmworkers, a familiarity with the area to be 
     served, and the ability to demonstrate a capacity to 
     administer effectively a diversified program of workforce and 
     career development activities for migrant farmworkers or 
     seasonal farmworkers, respectively.
       (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 Secretaries a plan that 
     describes a 3-year strategy for meeting the needs of migrant 
     farmworkers or seasonal farmworkers, and the dependents of 
     such 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 
     and career development activities and related services for 
     migrant farmworkers or seasonal farmworkers which may include 
     employment, training, educational assistance, literacy 
     assistance, an English literacy program, worker safety 
     training, housing, supportive services, and the continuation 
     of the case management database on participating migrant 
     farmworkers or seasonal farmworkers.
       (e) Consultation With Governors and Local Boards.--In 
     making grants and entering into contracts under this section, 
     the Secretaries shall consult with the Governors and local 
     boards of the States in which the eligible entities will 
     carry out the activities described in subsection (d).
       (f) Regulations.--The Secretaries shall consult with 
     migrant and seasonal farmworker groups and States in 
     establishing regulations to carry out this section, including 
     performance standards for eligible entities which take into 
     account the economic circumstances of migrant farmworkers and 
     seasonal farmworkers.
       (g) Definitions.--As used in this section:
       (1) Migrant farmworker.--The term ``migrant farmworker'' 
     means a seasonal farmworker whose farm work requires travel 
     such that the worker is unable to return to a permanent place 
     of residence within the same day.
       (2) Seasonal farmworker.--The term ``seasonal farmworker'' 
     means a person who during the eligibility determination 
     period (12 consecutive months out of 24 months prior to 
     application) has been primarily employed in farm work that is 
     characterized by chronic unemployment or under employment.

     SEC. 136. NATIVE AMERICAN PROGRAM.

       (a) Purpose and Policy.--
       (1) Purpose.--The purpose of this section is to support 
     workforce and career 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'',

[[Page H8405]]

     and ``tribal organization'' have the meanings given such 
     terms in subsections (d), (e), and (l), respectively, of 
     section 4 of the Indian Self-Determination and Education 
     Assistance Act (25 U.S.C. 450b).
       (3) Institution of higher education.--The term 
     ``institution of higher education'' has the meaning given 
     such 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 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 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) In general.--From amounts reserved under section 
     151(b)(3), the Secretaries shall make grants to, or enter 
     into contracts or cooperative agreements with, Indian tribes, 
     tribal organizations, Alaska Native entities, tribally 
     controlled community colleges, tribally controlled 
     postsecondary vocational institutions, Indian-controlled 
     organizations serving Indians, or Native Hawaiian 
     organizations to carry out the authorized activities 
     described in subsection (d).
       (2) Transfer of authority for vocational education 
     activities.--In carrying out paragraph (1), the Secretaries 
     may agree that the Secretary of Education may provide any 
     portion of assistance under paragraph (1) devoted to 
     vocational education activities, including assistance 
     provided to entities described in paragraph (1) that are not 
     eligible for funding pursuant to the Tribally Controlled 
     Community College Assistance Act of 1978 (25 U.S.C. 1801 et 
     seq.).
       (3) Special authority relating to secondary schools 
     operated or supported by the bureau of indian affairs.--An 
     Indian tribe, a tribal organization, or an Alaska Native 
     entity, that receives funds through a grant made or contract 
     entered into under paragraph (1) may use the funds to provide 
     assistance to a secondary school operated or supported by the 
     Bureau of Indian Affairs to enable such school to carry out 
     vocational education activities.
       (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 or Native 
     Hawaiians preparing to enter, renter, or retain unsubsidized 
     employment.
       (2) Workforce and career development activities and 
     supplemental services.--
       (A) In general.--Funds made available under this section 
     shall be used for--
       (i) comprehensive workforce and career development 
     activities for Indians or Native Hawaiians; or
       (ii) supplemental services for Indian or Native Hawaiian 
     youth on or near Indian reservations and in Oklahoma, Alaska, 
     or Hawaii.
       (B) Special rule.--Notwithstanding any other provision of 
     this section, individuals who were eligible to participate in 
     programs under section 401 of the Job Training Partnership 
     Act (29 U.S.C. 1671) (as such section was in effect on the 
     day before the date of enactment of this Act) shall be 
     eligible to participate in an activity assisted under 
     subparagraph (A)(i).
       (3) Vocational education activities and adult education and 
     literacy activities.--Funds made available under this section 
     shall be used for--
       (A) vocational education activities and adult education and 
     literacy activities conducted by entities described in 
     subsection (c); or
       (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) shall submit to the 
     Secretaries a plan that describes a 3-year strategy for 
     meeting the needs of Indian or Native Hawaiian individuals, 
     as appropriate, in the area served by such entity. Such 
     plan--
       (1) shall be consistent with the purposes of this section;
       (2) shall identify the population to be served;
       (3) shall 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) shall describe the services to be provided and the 
     manner in which such services are to be integrated with other 
     appropriate services; and
       (5) shall describe the goals and benchmarks to be used to 
     assess the performance of entities in carrying out the 
     activities assisted under this section.
       (f) Consolidation of Funds.--Each entity receiving 
     assistance under this section may consolidate such assistance 
     with assistance received from related programs in accordance 
     with the provisions of the Indian Employment, Training and 
     Related Services Demonstration Act of 1992 (25 U.S.C 3401 et 
     seq.).
       (g) Nonduplicative and Nonexclusive Services.--Nothing in 
     this section shall be construed--
       (1) to limit the eligibility of any entity described in 
     subsection (c) to participate in any activity offered by a 
     State or local entity under this title; or
       (2) to preclude or discourage any agreement, between any 
     entity described in subsection (c) and any State or local 
     entity, to facilitate the provision of services by such 
     entity or to the population served by such entity.
       (h) Administrative Provisions.--
       (1) Organizational unit established.--The Secretaries shall 
     designate a single organizational unit that shall have as the 
     unit's primary responsibility the administration of the 
     activities authorized in this section.
       (2) Regulations.--The Secretaries shall consult with the 
     entities described in subsection (c)--
       (A) in establishing regulations to carry out this section, 
     including performance standards for entities receiving 
     assistance under this section, that take into account the 
     economic circumstances of such entities; and
       (B) in developing a funding distribution plan that takes 
     into consideration previous levels of funding, and sources of 
     funds not provided pursuant to this title.
       (3) Technical assistance.--The Secretaries, through the 
     unit established under paragraph (1), are authorized to 
     provide technical assistance to entities described in 
     subsection (c) that receive assistance under this section to 
     enable such entities to improve the workforce and career 
     development activities provided by such entities.

     SEC. 137. GRANTS TO OUTLYING AREAS.

       (a) Applicability of Title to Outlying Areas.--The 
     provisions of this title (other than this section) shall 
     apply to each outlying area to the extent practicable in the 
     same manner and to the same extent as the provisions apply to 
     a State.
       (b) Allotment.--
       (1) In general.--For each program year the Secretaries 
     shall allot funds in accordance with paragraph (2) for each 
     outlying area that meets the applicable requirements of this 
     title to enable the outlying area to carry out workforce and 
     career development activities.
       (2) Population data.--Except as provided in subsection (c), 
     from the amount reserved under section 151(b)(4), the 
     Secretaries shall allot for each outlying area an amount that 
     bears the same relationship to such funds as the total number 
     of individuals who are not less than age 15 but not more than 
     age 65 (as determined by the Secretaries using the most 
     recent census data prior to the program year for which the 
     allotment is made) in the outlying area bears to the total 
     number of such individuals in all outlying areas.
       (c) Grant Awards.--
       (1) United states territories.--The Secretaries shall award 
     grants from allotments under subsection (b) to Guam, American 
     Samoa, the Commonwealth of the Northern Mariana Islands, and 
     the United States Virgin Islands.
       (2) Limitation for freely associated states.--
       (A) Competitive grants.--Using funds allotted for the 
     Republic of the Marshall Islands, the Federated States of 
     Micronesia, and the Republic of Palau under subsection (b), 
     the Secretaries shall award grants to Guam, American Samoa, 
     the Commonwealth of the Northern Mariana Islands, the 
     Republic of the Marshall Islands, the Federated States of 
     Micronesia, or the Republic of Palau to carry out workforce 
     and career development activities.
       (B) Award basis.--The Secretaries shall award grants 
     pursuant to subparagraph (A) on a competitive basis and 
     pursuant to recommendations from the Pacific Region 
     Educational Laboratory in Honolulu, Hawaii.
       (C) Termination of eligibility.--Notwithstanding any other 
     provision of law, the Republic of the Marshall Islands, the 
     Federated States of Micronesia, and the Republic of Palau 
     shall not receive any funds under this paragraph for any 
     program year that begins after September 30, 2001.
       (D) Administrative costs.--The Secretaries may provide not 
     more than 5 percent of the amount made available for grants 
     under this paragraph to pay the administrative costs of the 
     Pacific Region Educational Laboratory regarding activities 
     assisted under this section.

     SEC. 138. NATIONAL INSTITUTE FOR LITERACY.

       (a) Establishment.--
       (1) In general.--There is established the National 
     Institute for Literacy (in this section referred to as the 
     ``Institute''). The Institute shall be administered under the 
     terms of an interagency agreement entered into by the 
     Secretary of Education with the Secretary of Labor and the 
     Secretary of Health and Human Services (in this section 
     referred to as the ``Interagency Group''). The Interagency 
     Group may include in the Institute any research and 
     development center, institute, or clearinghouse established 
     within the Department of Education, the Department of Labor, 
     or the Department of Health and Human Services whose purpose 
     is determined by the Interagency Group to be related to the 
     purpose of the Institute.

[[Page H8406]]

       (2) Offices.--The Institute shall have offices separate 
     from the offices of the Department of Education, the 
     Department of Labor, and the Department of Health and Human 
     Services.
       (3) Board recommendations.--The Interagency Group shall 
     consider the recommendations of the National Institute for 
     Literacy Advisory Board (in this section referred to as the 
     ``Board'') established under subsection (d) in planning the 
     goals of the Institute and in the implementation of any 
     programs to achieve such goals.
       (4) Daily operations.--The daily operations of the 
     Institute shall be carried out by the Director of the 
     Institute appointed under subsection (g).
       (b) Duties.--
       (1) In general.--The Institute shall improve the quality 
     and accountability of the adult basic skills and literacy 
     delivery system by--
       (A) providing national leadership for the improvement and 
     expansion of the system for delivery of literacy services;
       (B) coordinating the delivery of such services across 
     Federal agencies;
       (C) 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;
       (D) supporting the creation of new methods of offering 
     improved literacy services;
       (E) funding a network of State or regional adult literacy 
     resource centers to assist State and local public and private 
     nonprofit efforts to improve literacy by--
       (i) encouraging the coordination of literacy services;
       (ii) carrying out evaluations of the effectiveness of adult 
     education and literacy activities;
       (iii) enhancing the capacity of State and local 
     organizations to provide literacy services; and
       (iv) serving as a reciprocal link between the Institute and 
     providers of workforce and career development activities for 
     the purpose of sharing information, data, research, 
     expertise, and literacy resources;
       (F) 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 adult education and literacy 
     activities;
       (G) providing technical assistance, information, and other 
     program improvement activities to national, State, and local 
     organizations, such as--
       (i) providing information and training to local boards and 
     one-stop career 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 organizations that provide literacy and 
     basic skills services, professional development, and 
     technical assistance, such as the State or regional adult 
     literacy resource centers referred to in subparagraph (E); 
     and
       (iii) establishing a national literacy electronic database 
     and communications network;
       (H) working with the Interagency Group, Federal agencies, 
     and the Congress to ensure that such Group, agencies, and the 
     Congress have the best information available on literacy and 
     basic skills programs in formulating Federal policy with 
     respect to the issues of literacy, basic skills, and 
     workforce and career development; and
       (I) assisting with the development of policy with respect 
     to literacy and basic skills.
       (2) Grants, contracts, and agreements.--The Institute may 
     make grants to, or enter into contracts or cooperative 
     agreements with, individuals, public or private institutions, 
     agencies, organizations, or consortia of such institutions, 
     agencies, or organizations to carry out the activities of the 
     Institute. Such grants, contracts, or agreements shall be 
     subject to the laws and regulations that generally apply to 
     grants, contracts, or agreements entered into by Federal 
     agencies.
       (c) Literacy Leadership.--
       (1) Fellowships.--The Institute, in consultation with the 
     Board, may award fellowships, with such stipends and 
     allowances as 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) Interns and volunteers.--The Institute, in consultation 
     with the Board, may award paid and unpaid internships to 
     individuals seeking to assist the Institute in carrying out 
     its mission. Notwithstanding section 1342 of title 31, United 
     States Code, the Institute may accept and use voluntary and 
     uncompensated services as the Institute determines necessary.
       (d) National Institute for Literacy Advisory Board.--
       (1) Establishment.--
       (A) In general.--There is established a National Institute 
     for Literacy Advisory Board. The Board 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; and
       (ii) are representative of entities or groups described in 
     subparagraph (B).
       (B) Entities or groups described.--The entities or groups 
     referred to in subparagraph (A) are--
       (i) literacy organizations and providers of literacy 
     services, including--

       (I) nonprofit providers of literacy services;
       (II) providers of programs and services involving English 
     language instruction; and
       (III) providers of services receiving assistance under this 
     title;

       (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) representatives of employees.
       (2) Duties.--The Board--
       (A) shall make recommendations concerning the appointment 
     of the Director and staff of the Institute;
       (B) shall provide independent advice on the operation of 
     the Institute; and
       (C) shall receive reports from the Interagency Group and 
     the Director.
       (3) Federal advisory committee act.--Except as otherwise 
     provided, the Board established by this subsection shall be 
     subject to the provisions of the Federal Advisory Committee 
     Act (5 U.S.C. App.).
       (4) Terms.--
       (A) In general.--Each member of the Board shall be 
     appointed for a term of 3 years, except that the initial 
     terms for members may be 1, 2, or 3 years in order to 
     establish a rotation in which \1/3\ of the members are 
     selected each year. Any such member may be appointed for not 
     more than 2 consecutive terms.
       (B) Vacancy appointments.--Any member appointed to fill a 
     vacancy occurring before the expiration of the term for which 
     the member's predecessor was appointed shall be appointed 
     only for the remainder of that term. A member may serve after 
     the expiration of that member's term until a successor has 
     taken office. A vacancy in the Board shall be filled in the 
     manner in which the original appointment was made. A vacancy 
     in the Board shall not affect the powers of the Board.
       (5) Quorum.--A majority of the members of the Board shall 
     constitute a quorum but a lesser number may hold hearings. 
     Any recommendation of the Board may be passed only by a 
     majority of the Board's members present.
       (6) Election of officers.--The Chairperson and Vice 
     Chairperson of the Board shall be elected by the members of 
     the Board. The term of office of the Chairperson and Vice 
     Chairperson shall be 2 years.
       (7) Meetings.--The Board shall meet at the call of the 
     Chairperson or a majority of the members of the Board.
       (e) Gifts, Bequests, and Devises.--The Institute may 
     accept, administer, and use gifts or donations of services, 
     money, or property, both real and personal.
       (f) Mails.--The Board and the Institute may use the United 
     States mails in the same manner and under the same conditions 
     as other departments and agencies of the Federal Government.
       (g) Director.--The Interagency Group, after considering 
     recommendations made by the Board, shall appoint and fix the 
     pay of a Director.
       (h) Applicability of Certain Civil Service Laws.--The 
     Director and staff of the Institute may be appointed without 
     regard to the provisions of title 5, United States Code, 
     governing appointments in the competitive service, and may be 
     paid without regard to the provisions of chapter 51 and 
     subchapter III of chapter 53 of that title relating to 
     classification and General Schedule pay rates, except that an 
     individual so appointed may not receive pay in excess of the 
     maximum rate payable under section 5376 of title 5, United 
     States Code.
       (i) Experts and Consultants.--The Board 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 the period 
     covered by the report;
       (2) a description of how plans for the operation of the 
     Institute for the succeeding two fiscal years will facilitate 
     achievement of the goals of the Institute and the goals of 
     the literacy programs within 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 Board.
       (k) Funding.--Any amounts appropriated to 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.
       (l) Authorization of Appropriations.--There are authorized 
     to be appropriated $10,000,000 for fiscal year 1997 and such 
     sums as may be necessary for each of the fiscal years 1998 
     through 2002 to carry out this section.

     SEC. 139. LABOR MARKET INFORMATION.

       (a) System Content.--
       (1) In general.--The Secretary of Labor, in accordance with 
     the provisions of this section, shall oversee the maintenance 
     and continuous improvement of the system of labor market 
     information that includes--
       (A) statistical programs of data collection, compilation, 
     estimation, and publication conducted in cooperation with the 
     Bureau of Labor Statistics;
       (B) State and local employment information, including other 
     appropriate statistical data related to labor market dynamics 
     (compiled by and for States and localities with technical 
     assistance provided by the Secretary) that will--
       (i) assist individuals to make informed choices relating to 
     employment and training; and

[[Page H8407]]

       (ii) assist employers to locate and train individuals who 
     are seeking employment and training;
       (C) technical standards for data and information described 
     in subparagraphs (A) and (B) that, at a minimum, meet the 
     criteria of chapter 35 of title 44, United States Code;
       (D) analysis of data and information described in 
     subparagraphs (A) and (B) for uses such as State and local 
     policymaking;
       (E) wide dissemination of such data, information, and 
     analysis, training for users of the data, information, and 
     analysis, and voluntary technical standards for dissemination 
     mechanisms; and
       (F) programs of--
       (i) research and demonstration; and
       (ii) technical assistance for States and localities.
       (2) Information to be confidential.--
       (A) In general.--No officer or employee of the Federal 
     Government or agent of the Federal Government may--
       (i) use the information furnished under the provisions of 
     this section for any purpose other than the statistical 
     purposes for which such information is furnished;
       (ii) make any publication from which the data contained in 
     the information so furnished under this section can be used 
     to identify any individual; or
       (iii) permit any individual other than the sworn officers, 
     employees, or agents of any Federal department or agency to 
     examine individual reports through which the information is 
     furnished.
       (B) Immunity from legal process.--
       (i) In general.--Any information that is collected and 
     retained for purposes of this section shall be immune from 
     the legal process and shall not, without the consent of the 
     individual concerned, be admitted as evidence or used for any 
     purpose in any action, suit, or other judicial or 
     administrative proceeding.
       (ii) Rule of construction.--Nothing in this subparagraph 
     shall be construed as providing immunity from the legal 
     process for information that is independently collected or 
     produced for purposes other than for purposes of this 
     section.
       (b) System Responsibilities.--
       (1) In general.--The labor market information system shall 
     be planned, administered, overseen, and evaluated through a 
     cooperative governance structure involving the Federal 
     Government, States, and local entities.
       (2) Duties.--The Secretary, with respect to data 
     collection, analysis, and dissemination of labor market 
     information for the system, shall carry out the following 
     duties:
       (A) Assign responsibilities within the Department of Labor 
     for elements of the system content described in subsection 
     (a) to ensure that all statistical and administrative data 
     collected is consistent.
       (B) Actively seek the cooperation of other Federal agencies 
     to establish and maintain mechanisms for ensuring 
     complementarity and nonduplication in the development and 
     operation of statistical and administrative data collection 
     activities.
       (C) Eliminate gaps and duplication in statistical 
     undertakings, with the systemization of wage surveys as an 
     early priority.
       (D) In collaboration with the States and the Bureau of 
     Labor Statistics, develop and maintain the necessary elements 
     of the system described in subsection (a), including the 
     development of consistent definitions for use by the States 
     in collecting the data and information described in 
     subparagraphs (A) and (B) of subsection (a)(1) and the 
     development of the annual plan under subsection (c).
       (c) Annual Plan.--
       (1) In general.--The Secretary, in collaboration with the 
     States and the Bureau of Labor Statistics, and with the 
     assistance of other appropriate Federal agencies, shall 
     prepare an annual plan that shall describe the cooperative 
     Federal-State governance structure for the labor market 
     information system. The plan shall--
       (A) describe the elements of the system, including 
     consistent definitions, formats, collection methodologies, 
     and other necessary system elements, for use in collecting 
     the data and information described in subparagraphs (A) and 
     (B) of subsection (a)(1);
       (B) describe how the system will ensure that--
       (i) such data are timely;
       (ii) administrative records are consistent in order to 
     facilitate aggregation of such data;
       (iii) paperwork and reporting are reduced to a minimum; and
       (iv) States and localities are fully involved in the 
     maintenance and continuous improvement of the system at the 
     State and local levels;
       (C) evaluate the performance of the system and recommend 
     needed improvements; and
       (D) describe current (as of the date of the submission of 
     the plan) spending and spending needs to carry out activities 
     under this section.
       (2) Cooperation with the states.--The Secretary and the 
     Bureau of Labor Statistics, in cooperation with the States, 
     shall develop the plan by holding formal consultations, which 
     shall be held on not less than a semiannual basis, with--
       (A) State representatives who have expertise in labor 
     market information, selected by the Governors of each State;
       (B) representatives from each of the ten Federal regions of 
     the Department of Labor, elected by and from among 
     individuals who perform the duties described in subsection 
     (d)(2) pursuant to a process agreed upon by the Secretary and 
     the States; and
       (C) employers or representatives of employers, elected 
     pursuant to a process agreed upon by the Secretary and the 
     States.
       (d) State Responsibilities.--
       (1) Designation of state agency.--In order to receive 
     Federal financial assistance under this section, the Governor 
     of a State--
       (A) shall designate a single State agency or entity within 
     the State to be responsible for the management of the 
     portions of the system described in subsection (a) that 
     comprise a statewide labor market information system; and
       (B) may establish a process for the oversight of such 
     system.
       (2) Duties.--In order to receive Federal financial 
     assistance under this section, the State agency or entity 
     designated under paragraph (1)(A) shall--
       (A) consult with employers and local boards, where 
     appropriate, about the labor market relevance of the data to 
     be collected and disseminated through the statewide labor 
     market information system;
       (B) maintain and continuously improve the portions of the 
     system described in subsection (a) that comprise a statewide 
     labor market information system in accordance with this 
     section;
       (C) ensure the performance of contract and grant 
     responsibilities for data collection, analysis, and 
     dissemination for such system;
       (D) conduct such other data collection, analysis, and 
     dissemination activities as will ensure an effective 
     statewide labor market information system; and
       (E) participate in the development of the annual plan 
     described in subsection (c).
       (3) Rule of construction.--Nothing in this section shall be 
     construed as limiting the ability of a State agency or entity 
     to conduct additional data collection, analysis, and 
     dissemination activities with State funds or with Federal 
     funds from sources other than this section.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section $65,000,000 for 
     fiscal year 1998 and such sums as may be necessary for each 
     of the fiscal years 1999 through 2002.
                   Subtitle E--Transition Provisions

     SEC. 141. 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 and career 
     development activities to be carried out through the 
     statewide system.
       (2) Term.--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) 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 entity 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 1 or 
     more requirements referred to in subsection (a) 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 under this section 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

[[Page H8408]]

     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 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)--
       (1) to address the high priority needs of unemployed 
     persons and at-risk youth in the appropriate State or 
     community for workforce and career development activities;
       (2) to improve efficiencies in the delivery of the covered 
     activities; or
       (3) in the case of overlapping or duplicative activities--
       (A) by combining the covered activities and funding the 
     combined activities; or
       (B) by eliminating 1 of the covered activities and 
     increasing the funding to the remaining covered activity.
       (f) Approval or Disapproval.--The Secretary shall approve 
     or disapprove any request submitted pursuant to subsection 
     (b) or (c), not later than 60 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 60-day period described in 
     subsection (f), the request shall be deemed to be approved on 
     the day after such period ends. If the Secretary subsequently 
     determines that the waiver relates to a matter described in 
     subsection (d) and issues a decision that includes the 
     reasons for the determination, the waiver shall be deemed to 
     terminate on the date of issuance of the decision.
       (h) Definitions.--As used in this section:
       (1) Local entity.--The term ``local entity'' means--
       (A) a local educational agency responsible for carrying out 
     the covered activity at issue; or
       (B) the local public or private agency or organization 
     responsible for carrying out the covered activity at issue.
       (2) Secretary.--The term ``Secretary'' means--
       (A) the Secretary of Labor, with respect to any act 
     relating to a covered activity carried out by the Secretary 
     of Labor;
       (B) the Secretary of Education, with respect to any act 
     relating to a covered activity carried out by the Secretary 
     of Education; and
       (C) the Secretary of Labor and the Secretary of Education, 
     acting jointly, with respect to a covered activity under the 
     School-to-Work Opportunities Act of 1994 (20 U.S.C. 6101 et 
     seq.).
       (3) State.--The term ``State'' means--
       (A) an eligible agency responsible for carrying out the 
     covered activity at issue; or
       (B) the Governor, with respect to any act by another State 
     entity responsible for carrying out the covered activity at 
     issue.

     SEC. 142. TECHNICAL ASSISTANCE.

       Beginning on the date of the enactment of this Act, the 
     Secretaries shall provide technical assistance to States that 
     request such assistance in--
       (1) preparing the State plan required under section 104; or
       (2) developing the State benchmarks required under section 
     106(b).

     SEC. 143. 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 law relating to a covered activity that would otherwise 
     require the entity to submit an application or a plan to a 
     Federal agency during fiscal year 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. 144. INTERIM AUTHORIZATIONS OF APPROPRIATIONS.

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

     SEC. 151. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There are authorized to be appropriated to 
     carry out this title (except sections 134, 138, and 139) such 
     sums as may be necessary for each of fiscal years 1998 
     through 2002.
       (b) Reservations.--Of the amount appropriated under 
     subsection (a) for a fiscal year--
       (1) 90 percent shall be reserved for making allotments 
     under section 102;
       (2) $70,000,000 shall be reserved for carrying out section 
     135;
       (3) $90,000,000 shall be reserved for carrying out section 
     136;
       (4) $14,000,000 shall be reserved for carrying out section 
     137; and
       (5) the remainder shall be reserved for carrying out 
     sections 132 and 133.
       (c) Program Year.--
       (1) In general.--Appropriations for any fiscal year for 
     programs and activities carried out under this title or 
     subtitle C of title II 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 
     for employment and training activities and at-risk youth 
     activities may be expended by each recipient during the 
     program year and the 2 succeeding program years.

     SEC. 152. LOCAL EXPENDITURES CONTRARY TO TITLE.

       (a) Repayment by State.--Except as provided in sections 
     107(c)(4) and 126(b)(2)(B), if the Secretaries require a 
     State to repay funds as a result of a determination that an 
     eligible provider of employment and training activities or 
     at-risk youth activities in a local workforce development 
     area of the State has expended funds made available under 
     this title in a manner contrary to the objectives of this 
     title, and such expenditure does not constitute fraud, 
     embezzlement, or other criminal activity, the Governor of the 
     State may use an amount deducted under subsection (b) to 
     repay the funds.
       (b) Deduction by State.--The Governor may deduct an amount 
     equal to the expenditure described in subsection (a) from a 
     subsequent program year allocation to the local workforce 
     development area from funds available for local 
     administration for employment and training activities or at-
     risk youth activities, as appropriate.

     SEC. 153. EFFECTIVE DATES.

       (a) In General.--Except as otherwise provided in section 
     134 and subsection (b), this title shall take effect on July 
     1, 1998.
       (b) Administration and National Institute for Literacy.--
     Sections 131 and 138, subtitle E, section 151, and this 
     section shall take effect on the date of enactment of this 
     Act.
     TITLE II--WORKFORCE AND CAREER DEVELOPMENT-RELATED ACTIVITIES
            Subtitle A--Amendments to the Wagner-Peyser Act

     SEC. 201. DEFINITIONS.

       Section 2 of the Wagner-Peyser Act (29 U.S.C. 49a) is 
     amended--
       (1) in paragraph (1), by striking ``Job Training 
     Partnership Act'' and inserting ``Workforce and Career 
     Development Act of 1996'';
       (2) by striking paragraphs (2) and (4);
       (3) by redesignating paragraphs (3) and (5) as paragraphs 
     (6) and (7), respectively;
       (4) by inserting after paragraph (1) the following:
       ``(2) the term `local workforce development area' has the 
     meaning given such term in section 4 of the Workforce and 
     Career Development Act of 1996;
       ``(3) the term `local workforce development board' means a 
     local workforce development board established under section 
     108 of the Workforce and Career Development Act of 1996;
       ``(4) the term `one-stop career center system' means a one-
     stop career center system established under section 121(d) of 
     the Workforce and Career Development Act of 1996;
       ``(5) the term `public employment office' means an office 
     that provides employment services to the general public and 
     is part of a one-stop career center system;''; and
       (5) in paragraph (6) (as redesignated in paragraph (3)), by 
     striking the semicolon and inserting ``; and''.

     SEC. 202. FUNCTIONS.

       (a) In General.--Section 3(a) of the Wagner-Peyser Act (29 
     U.S.C. 49b(a)) is amended to read as follows:
       ``(a) The Secretary of Labor shall--
       ``(1) assist in the coordination and development of a 
     nationwide system of labor exchange services for the general 
     public, provided as part of 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
       ``(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.''.
       (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. 203. 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, in consultation with the State 
     legislature, shall''; and
       (2) by striking ``United States Employment Service'' and 
     inserting ``Secretary''.

     SEC. 204. APPROPRIATIONS.

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

     SEC. 205. DISPOSITION OF ALLOTTED FUNDS.

       Section 7 of the Wagner-Peyser Act (29 U.S.C. 49f) is 
     amended--

[[Page H8409]]

       (1) in subsection (b)(2), by striking ``private industry 
     council'' and inserting ``local workforce development 
     board'';
       (2) in subsection (c)(2), by striking ``any program under'' 
     and all that follows and inserting ``any workforce and career 
     development activity carried out under the Workforce and 
     Career Development Act of 1996.'';
       (3) in subsection (d)--
       (A) by striking ``United States Employment Service'' and 
     inserting ``Secretary''; and
       (B) by striking ``Job Training Partnership Act'' and 
     inserting ``Workforce and Career Development Act of 1996''; 
     and
       (4) by adding at the end the following:
       ``(e) All job search, placement, recruitment, labor market 
     information, and other labor exchange services authorized 
     under subsection (a) shall be provided as part of the one-
     stop career center system established by the State.''.

     SEC. 206. STATE PLANS.

       Section 8 of the Wagner-Peyser Act (29 U.S.C. 49g) is 
     amended--
       (1) in subsection (a) to read as follows:
       ``(a) Any State desiring to receive assistance under this 
     Act shall submit to the Secretary, as part of the State plan 
     submitted under section 104 of the Workforce and Career 
     Development Act of 1996, detailed plans for carrying out the 
     provisions of this Act within such State.'';
       (2) by striking subsections (b), (c), and (e); and
       (3) by redesignating subsection (d) as subsection (b).

     SEC. 207. REPEAL OF FEDERAL ADVISORY COUNCIL.

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

     SEC. 208. REGULATIONS.

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

     SEC. 209. EFFECTIVE DATE.

       The amendments made by this subtitle shall take effect on 
     July 1, 1998.
        Subtitle B--Amendments to the Rehabilitation Act of 1973

     SEC. 211. 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. 212. 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 system that provides 
     meaningful and effective participation for individuals with 
     disabilities in workforce and career development activities 
     and activities carried out through the vocational 
     rehabilitation program established under title I, and through 
     the provision of independent living services, support 
     services,''; and
       (2) in subsection (b)(1)(A)--
       (A) by striking ``and coordinated''; and
       (B) by inserting ``that are coordinated with statewide 
     systems'' after ``vocational rehabilitation''.

     SEC. 213. DEFINITIONS.

       Section 7 (29 U.S.C. 706) is amended by adding at the end 
     the following new paragraphs:
       ``(36) The term `statewide system' means a statewide 
     system, as defined in section 4 of the Workforce and Career 
     Development Act of 1996.
       ``(37) The term `workforce and career development 
     activities' has the meaning given such term in section 4 of 
     the Workforce and Career Development Act of 1996.''.

     SEC. 214. 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 system'' before the semicolon.

     SEC. 215. 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 106(c) of the 
     Workforce and Career Development Act of 1996 and that 
     pertains to the employment of individuals with disabilities, 
     including information on age,''.

     SEC. 216. 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 106(b) of the Workforce and Career 
     Development Act of 1996. For purposes of this section, the 
     Secretary may modify or supplement such benchmarks 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. 217. 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 and career 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 system are critical to ensure effective and 
     meaningful participation by individuals with disabilities in 
     workforce and career 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) coordinated with a statewide system; and
       ``(B) designed''.

     SEC. 218. 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 and Career Development Act of 
     1996 to the Secretaries (as defined in section 4 of such 
     Act)'';
       (2) by inserting after the first sentence the following: 
     ``The State designated unit shall also submit the State plan 
     for vocational rehabilitation services for review and comment 
     to the individuals and entities participating in the 
     collaborative process described in subsection (a) or (b) of 
     section 105 of the Workforce and Career Development Act of 
     1996 and such individuals and entities shall submit comments 
     on the State plan to the State designated unit.'';
       (3) in paragraph (15)--
       (A) by striking ``, including--'' and all that follows 
     through ``(C) review of'' and inserting ``, including review 
     of'';
       (B) by striking ``paragraph (9)(C)'' and inserting 
     ``paragraph (9)(D)'';
       (C) by striking ``most severe disabilities; and'' and 
     inserting ``most severe disabilities;''; and
       (D) by striking subparagraph (D);
       (4) by striking paragraphs (10), (27), (28), and (30);
       (5) in paragraph (19)--
       (A) by striking ``(19)'' and inserting ``(19)(A)''; and
       (B) by inserting ``and'' after the semicolon;
       (6) in paragraph (20), by striking ``(20)'' and inserting 
     ``(B)'';
       (7) by redesignating--
       (A) paragraphs (11) through (18) as paragraphs (10) through 
     (17), respectively;
       (B) paragraph (19) (as amended by paragraphs (5) and (6)) 
     as paragraph (18);
       (C) paragraphs (21) through (26) as paragraphs (19) through 
     (24), respectively;
       (D) paragraph (29) as paragraph (25); and
       (E) paragraphs (31) through (36) as paragraphs (26) through 
     (31), respectively;
       (8) 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 and utilization of the 
     programs, including the community rehabilitation programs 
     funded under the Javits-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 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);'';
       (B) in subparagraph (B), by striking ``; and'' and 
     inserting a semicolon; and
       (C) 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

[[Page H8410]]

       ``(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) 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 (10); 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 may be provided to vocational 
     rehabilitation counselors, client assistance personnel, 
     personnel of the eligible providers of core services 
     described in subsection (e)(2) of section 121 of the 
     Workforce and Career Development Act of 1996 through one-stop 
     career centers described in subsection (d) of such section, 
     and other related services personnel;'';
       (9) in subparagraph (A)(i)(II) of paragraph (7), by 
     striking ``, based on projections'' and all that follows 
     through ``relevant factors'';
       (10) in paragraph (9)--
       (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'';
       (11) in paragraph (10) (as redesignated in paragraph (7))--
       (A) in subparagraph (A), by striking ``State's public'' and 
     all that follows and inserting ``Federal, State, and local 
     programs that are not part of the statewide 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 (7);
       (12) in paragraph (20) (as redesignated in paragraph (7)), 
     by striking ``referrals to other Federal and State programs'' 
     and inserting ``referrals within the statewide system of the 
     State to programs''; and
       (13) in paragraph (22) (as redesignated in paragraph (7))--
       (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(22)(A)(i)(II) (29 U.S.C. 706(22)(A)(i)(II)) 
     is amended by striking ``101(a)(5)(A)'' each place it appears 
     and inserting ``101(a)(5)(A)(iv)''.
       (2) Section 12(d) (29 U.S.C. 711(d)) is amended by striking 
     ``101(a)(5)(A)'' and inserting ``101(a)(5)(A)(iv)''.
       (3) Section 101(a) (29 U.S.C. 721(a)) is amended--
       (A) in paragraph (18)(A) (as redesignated in subsection 
     (a)(7)), by striking ``paragraph (15)'' and inserting 
     ``paragraph (14)'';
       (B) in paragraph (22) (as redesignated in subsection 
     (a)(7)), by striking ``paragraph (11)(C)(ii)'' and inserting 
     ``paragraph (10)(C)'';
       (C) in paragraph (27) (as redesignated in subsection 
     (a)(7)), by striking ``paragraph (36)'' and inserting 
     ``paragraph (31)''; and
       (D) in subparagraph (C) of paragraph (31) (as redesignated 
     in subsection (a)(7)), 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)(22)''; and
       (B) in subsection (d)(2)(C)(ii)--
       (i) in subclause (II), by striking ``101(a)(36)'' and 
     inserting ``101(a)(31)''; and
       (ii) in subclause (III), by striking ``101(a)(36)(C)(ii)'' 
     and inserting ``101(a)(31)(C)(ii)''.
       (5) Section 103(a)(13) (29 U.S.C. 723(a)(13)) is amended by 
     striking ``101(a)(11)'' and inserting ``101(a)(10)''.
       (6) Section 105(a)(1) (29 U.S.C. 725(a)(1)) is amended by 
     striking ``101(a)(36)'' and inserting ``101(a)(31)''.
       (7) 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)(27)''; and
       (B) in paragraph (4)(C), by striking ``101(a)(35)'' and 
     inserting ``101(a)(30)''.
       (8) Section 111(a) (29 U.S.C. 731(a)) is amended--
       (A) in paragraph (1)--
       (i) by striking ``101(a)(34)(A)'' and inserting 
     ``101(a)(29)(A)''; and
       (ii) by striking ``101(a)(34)(B)'' and inserting 
     ``101(a)(29)(B)''; and
       (B) in paragraph (2)(A), by striking ``101(a)(17)'' and 
     inserting ``101(a)(16)''.
       (9) Section 124(a)(1)(A) (29 U.S.C. 744(a)(1)(A)) is 
     amended by striking ``101(a)(34)(B)'' and inserting 
     ``101(a)(29)(B)''.
       (10) Section 315(b)(2) (29 U.S.C. 777e(b)(2)) is amended by 
     striking ``101(a)(22)'' and inserting ``101(a)(20)''.
       (11) 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)(31) of the 
     Rehabilitation Act of 1973 (29 U.S.C. 721(a)(31))''.

     SEC. 219. INDIVIDUALIZED EMPLOYMENT PLANS.

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

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

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

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

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

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

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

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

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

     SEC. 220. 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 
     individuals involved in the collaborative process described 
     in section 105 of the Workforce and Career Development Act of 
     1996''; 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 is coordinated with the statewide 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 the individuals

[[Page H8411]]

     and entities involved in the collaborative process described 
     in section 105 of the Workforce and Career Development Act of 
     1996;''.
       (b) Conforming Amendment.--Subparagraph (B)(iv), and 
     clauses (ii)(I) and (iii)(I) of subparagraph (C), of 
     paragraph (31) (as redesignated in section 218(a)(7)) of 
     section 101(a) (29 U.S.C. 721(a)) are amended by striking 
     ``105(c)(3)'' and inserting ``105(c)(4)''.

     SEC. 221. EVALUATION STANDARDS AND PERFORMANCE INDICATORS.

       Section 106(a)(1) (29 U.S.C. 726(a)(1)) is amended--
       (1) by striking ``(1) In general.--The Commissioner shall'' 
     and inserting the following:
       ``(1) Evaluation standards and performance indicators.--
       ``(A) In general.--The Commissioner shall''; and
       (2) by adding at the end the following:
       ``(B) Modification or supplementation.--
       ``(i) In general.--The Commissioner shall modify or 
     supplement such standards and indicators to ensure that, to 
     the maximum extent appropriate, such standards and indicators 
     are consistent with the State benchmarks established under 
     paragraphs (1) and (2) of section 106(b) of the Workforce and 
     Career Development Act of 1996.
       ``(ii) Additional provisions.--The Commissioner--

       ``(I) shall, in modifying or supplementing such standards 
     and indicators, comply with the requirements under the 
     timetable for establishing such benchmarks under the 
     Workforce and Career Development Act of 1996; and
       ``(II) may modify or supplement such standards and 
     indicators, to the extent necessary, to address unique 
     considerations applicable to individuals with disabilities in 
     the vocational rehabilitation program.''.

     SEC. 222. 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 on July 1, 1998.
                         Subtitle C--Job Corps

     SEC. 231. DEFINITIONS.

       As used in this subtitle:
       (1) Enrollee.--The term ``enrollee'' means an individual 
     enrolled in the Job Corps.
       (2) Governor.--The term ``Governor'' means the chief 
     executive officer of a State.
       (3) Job corps.--The term ``Job Corps'' means the Job Corps 
     described in section 233.
       (4) Job corps center.--The term ``Job Corps center'' means 
     a center described in section 233.
       (5) Operator.--The term ``operator'' means an entity 
     selected under this subtitle to operate a Job Corps center.
       (6) Secretary.--The term ``Secretary'' means the Secretary 
     of Labor.

     SEC. 232. PURPOSES.

       The purposes of this subtitle are--
       (1) to maintain a national Job Corps program, carried out 
     in partnership with States and communities, to assist 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;
       (2) to set forth standards and procedures for selecting 
     individuals as enrollees in the Job Corps;
       (3) to authorize the establishment of Job Corps centers in 
     which enrollees will participate in intensive programs of 
     workforce and career development activities; and
       (4) to prescribe various other powers, duties, and 
     responsibilities incident to the operation and continuing 
     development of the Job Corps.

     SEC. 233. ESTABLISHMENT.

       There shall be established in the Department of Labor a Job 
     Corps program, to carry out, in conjunction with the 
     activities carried out under section 247, activities 
     described in this subtitle for individuals enrolled in the 
     Job Corps and assigned to a center.

     SEC. 234. INDIVIDUALS ELIGIBLE FOR THE JOB CORPS.

       To be eligible to become an enrollee, an individual shall 
     be--
       (1) not less than age 15 and not more than age 24;
       (2) an individual who--
       (A) receives, or is a member of a family that receives, 
     cash welfare payments under a Federal, State, or local 
     welfare program;
       (B) had received an income, or is a member of a family that 
     had received a total family income, for the 6-month period 
     prior to application for the program involved (exclusive of 
     unemployment compensation, child support payments, and 
     payments described in subparagraph (A)) that, in relation to 
     family size, does not exceed the higher of--
       (i) 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)), for an equivalent period; or
       (ii) 70 percent of the lower living standard income level, 
     for an equivalent period;
       (C) is a member of a household that receives (or has been 
     determined within the 6-month period prior to application for 
     the program involved to be eligible to receive) food stamps 
     pursuant to the Food Stamp Act of 1977 (7 U.S.C. 2011 et 
     seq.);
       (D) qualifies as a homeless individual, as defined in 
     subsections (a) and (c) of section 103 of the Stewart B. 
     McKinney Homeless Assistance Act (42 U.S.C. 11302);
       (E) is a foster child on behalf of whom State or local 
     government payments are made; or
       (F) in cases permitted by regulations of the Secretary, is 
     an individual with a disability whose own income meets the 
     requirements of a program described in subparagraph (A) or of 
     subparagraph (B), but who is a member of a family whose 
     income does not meet such requirements; and
       (3) an individual who is 1 or more of the following:
       (A) Basic skills deficient.
       (B) A school dropout.
       (C) Homeless or a runaway.
       (D) Pregnant or a parent.
       (E) 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.

     SEC. 235. SCREENING AND SELECTION OF APPLICANTS.

       (a) Standards and Procedures.--
       (1) In general.--The Secretary shall prescribe specific 
     standards and procedures for the screening and selection of 
     applicants for the Job Corps, after considering 
     recommendations from the Governors, local boards, and other 
     interested parties.
       (2) Methods.--In prescribing standards and procedures under 
     paragraph (1) for the screening and selection of Job Corps 
     applicants, the Secretary shall--
       (A) require enrollees to take drug tests within 30 days of 
     enrollment in the Job Corps;
       (B) allocate, where necessary, additional resources to 
     increase the applicant pool;
       (C) establish standards for outreach to and screening of 
     Job Corps applicants;
       (D) where appropriate, take measures to improve the 
     professional capability of the individuals conducting such 
     screening;
       (E) require Job Corps applicants to pass background checks, 
     conducted in accordance with procedures established by the 
     Secretary; and
       (F) assure that an appropriate number of enrollees are from 
     rural areas.
       (3) Implementation.--To the extent practicable, the 
     standards and procedures shall be implemented through 
     arrangements with--
       (A) eligible providers of core services described in 
     section 121(e)(2) through one-stop career centers described 
     in section 121(d);
       (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.
       (4) Consultation.--The standards and procedures shall 
     provide for necessary consultation with individuals and 
     organizations, including court, probation, parole, law 
     enforcement, education, welfare, and medical authorities and 
     advisers.
       (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 
     considered for selection can participate successfully in 
     group situations and activities, is not likely to engage in 
     behavior that would prevent other enrollees from receiving 
     the benefit of the program or be incompatible with the 
     maintenance of sound discipline and satisfactory 
     relationships between the Job Corps center to which the 
     individual might be assigned and surrounding communities; and
       (2) the individual manifests a basic understanding of both 
     the rules to which the individual will be subject and of the 
     consequences of failure to observe the rules.

     SEC. 236. 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.--After the Secretary has determined that an 
     enrollee is to be assigned to a Job Corps center, the 
     enrollee shall be assigned to the center that is closest to 
     the residence of the enrollee, except that the Secretary may 
     waive this requirement for good cause, including to ensure an 
     equitable opportunity for individuals described in section 
     234 from various sections of the United States to participate 
     in the Job Corps program, to prevent undue delays in 
     assignment of an enrollee, to adequately meet the educational 
     or other needs of an enrollee, and for efficiency and economy 
     in the operation of the program.
       (c) Period of Enrollment.--No individual may be enrolled in 
     the Job Corps for more than 2 years, except--
       (1) in a case in which completion of an advanced career 
     training program under section 238(d) would require an 
     individual to participate for more than 2 years; or
       (2) as the Secretary may authorize in a special case.

     SEC. 237. JOB CORPS CENTERS.

       (a) Operators and Service Providers.--
       (1) Eligible entities.--The Secretary 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 
     operation of each Job Corps center. The Secretary shall enter 
     into an agreement with an appropriate entity to provide 
     services for a Job Corps center.
       (2) Selection process.--Except as provided in subsections 
     (c) and (d), the Secretary shall select an entity to operate 
     a Job Corps center on a competitive basis, after reviewing 
     the operating plans described in section 240. In selecting a 
     private or public entity to serve as an operator for a Job 
     Corps Center, the Secretary shall, at

[[Page H8412]]

     the request of the Governor of the State in which the center 
     is located, convene and obtain the recommendation of a 
     selection panel described in section 242(b). In selecting an 
     entity to serve as an operator or to provide services for a 
     Job Corps center, the Secretary shall take into consideration 
     the previous performance of the entity, if any, relating to 
     operating or providing services for 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 238. In any year, no more than 20 percent of the 
     individuals enrolled in the Job Corps may be nonresidential 
     participants in the Job Corps.
       (c) Civilian Conservation Centers.--
       (1) In general.--The Job Corps centers may include Civilian 
     Conservation Centers operated under agreements with the 
     Secretary of Agriculture or the Secretary of the Interior, 
     located primarily in rural areas, which shall provide, in 
     addition to other training and assistance, programs of work 
     experience to conserve, develop, or manage public natural 
     resources or public recreational areas or to develop 
     community projects in the public interest.
       (2) Selection process.--The Secretary may select an entity 
     to operate a Civilian Conservation Center on a competitive 
     basis, as provided in subsection (a), if the center fails to 
     meet such national performance standards as the Secretary 
     shall establish.
       (d) Indian Tribes.--
       (1) General authority.--The Secretary may enter into 
     agreements with Indian tribes to operate Job Corps centers 
     for Indians.
       (2) Definitions.--As used in this subsection, the terms 
     ``Indian'' and ``Indian tribe'', have the meanings given such 
     terms in subsections (d) and (e), respectively, of section 4 
     of the Indian Self-Determination and Education Assistance Act 
     (25 U.S.C. 450b).

     SEC. 238. PROGRAM ACTIVITIES.

       (a) Activities Provided Through Job Corps Centers.--Each 
     Job Corps center shall provide enrollees assigned to the 
     center with access to core services described in section 
     121(e)(2), and such other employment and training activities 
     and at-risk youth activities as may be appropriate to meet 
     the needs of the enrollees. Each Job Corps center shall 
     provide the enrollees with such activities described in 
     sections 121 and 122 as may be appropriate to meet the needs 
     of the enrollees. The activities provided under this 
     subsection shall provide work-based learning throughout the 
     enrollment of the enrollees and assist the enrollees in 
     obtaining meaningful unsubsidized employment, participating 
     successfully in secondary education or postsecondary 
     education programs, enrolling in other suitable training 
     programs, or satisfying Armed Forces requirements, on 
     completion of their enrollment.
       (b) Arrangements.--The Secretary shall arrange for 
     enrollees assigned to Job Corps centers to receive employment 
     and training activities and at-risk youth activities through 
     or in coordination with the statewide system, including 
     employment and training activities and at-risk youth 
     activities provided through local public or private 
     educational agencies, vocational educational institutions, or 
     technical institutes.
       (c) Fiscal and Management Accountability Information 
     System.--The Secretary shall establish a fiscal and 
     management accountability information system for Job Corps 
     centers, and coordinate the activities carried out through 
     the system with activities carried out through the fiscal and 
     management accountability information systems for States 
     described in section 106(e), if such systems are established.
       (d) Advanced Career Training Programs.--
       (1) In general.--The Secretary may arrange for programs of 
     advanced career training for selected enrollees in which the 
     enrollees may continue to participate for a period of not to 
     exceed 1 year in addition to the period of participation to 
     which the enrollees would otherwise be limited.
       (2) Postsecondary educational institutions.--The advanced 
     career training may be provided through a postsecondary 
     educational institution for an enrollee who has obtained a 
     secondary school diploma or its recognized equivalent, has 
     demonstrated commitment and capacity in previous Job Corps 
     participation, and has an identified occupational goal.
       (3) Company-sponsored training programs.--The Secretary may 
     enter into contracts with appropriate entities to provide the 
     advanced career training through intensive training in 
     company-sponsored training programs, combined with 
     internships in work settings.
       (4) Benefits.--
       (A) In general.--During the period of participation in an 
     advanced career training program, an enrollee shall be 
     eligible for full Job Corps benefits, or a monthly stipend 
     equal to the average value of the residential support, food, 
     allowances, and other benefits provided to enrollees assigned 
     to residential Job Corps centers.
       (B) Calculation.--The total amount for which an enrollee 
     shall be eligible under subparagraph (A) shall be reduced by 
     the amount of any scholarship or other educational grant 
     assistance received by such enrollee for advanced career 
     training.
       (5) Demonstration.--Each year, any operator seeking to 
     enroll additional enrollees in an advanced career training 
     program shall demonstrate that participants in such program 
     have achieved a reasonable rate of completion and placement 
     in training-related jobs before the operator may carry out 
     such additional enrollment.

     SEC. 239. SUPPORT.

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

     SEC. 240. OPERATING PLAN.

       (a) In General.--To be eligible to operate a Job Corps 
     center, an entity shall prepare and submit an operating plan 
     to the Secretary for approval. Prior to submitting the plan 
     to the Secretary, the entity shall submit the plan to the 
     Governor of the State in which the center is located for 
     review and comment. The entity shall submit any comments 
     prepared by the Governor on the plan to the Secretary with 
     the plan. Such plan 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 
     submitted under section 104 for the State in which the center 
     is located;
       (2) the extent to which the activities described in section 
     238 and delivered through the Job Corps center are directly 
     linked to the workforce and career development needs of the 
     region in which the center is located;
       (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 121(e)(2); and
       (4) an implementation strategy to ensure that the curricula 
     of all such enrollees is integrated into activities described 
     in section 238(a), including work-based learning, work 
     experience, and career-building activities, and that such 
     enrollees have the opportunity to obtain secondary school 
     diplomas or their recognized equivalent.
       (b) Approval.--The Secretary shall not approve an operating 
     plan described in subsection (a) for a center if the 
     Secretary determines that the activities proposed to be 
     carried out through the center are not sufficiently 
     integrated with the activities carried out through the 
     statewide system of the State in which the center is located.

     SEC. 241. STANDARDS OF CONDUCT.

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

     SEC. 242. COMMUNITY PARTICIPATION.

       (a) Activities.--The Secretary shall encourage and 
     cooperate in activities to establish a mutually beneficial 
     relationship between Job Corps centers in the State and 
     nearby communities. The activities shall include the use of 
     local boards established in the State to provide a mechanism 
     for joint discussion of common problems and for planning 
     programs of mutual interest.
       (b) Selection Panels.--The Governor may recommend 
     individuals to serve on a selection panel convened by the 
     Secretary to provide recommendations to the Secretary 
     regarding any competitive selection of an operator for a 
     center in the State. The panel shall have not more than 7 
     members. In recommending individuals to serve on the panel, 
     the Governor may recommend members of local boards 
     established in the State, or other representatives selected 
     by the Governor. The Secretary shall select at least 1 
     individual recommended by the Governor.
       (c) Activities.--Each Job Corps center director shall--
       (1) give officials of nearby communities appropriate 
     advance notice of changes in the rules, procedures, or 
     activities of the Job Corps center that may affect or be of 
     interest to the communities;
       (2) afford the communities a meaningful voice in the 
     affairs of the Job Corps center that are of direct concern to 
     the communities, including policies governing the issuance 
     and terms of passes to enrollees; and
       (3) encourage the participation of enrollees in programs 
     for improvement of the communities, with appropriate advance 
     consultation with business, labor, professional, and other 
     interested groups, in the communities.

     SEC. 243. COUNSELING AND PLACEMENT.

       The Secretary shall ensure that enrollees assigned to Job 
     Corps centers receive academic and vocational counseling and 
     job placement services, which shall be provided, to the 
     maximum extent practicable, through the delivery of core 
     services described in section 121(e)(2).

[[Page H8413]]

     SEC. 244. ADVISORY COMMITTEES.

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

     SEC. 245. APPLICATION OF PROVISIONS OF FEDERAL LAW.

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

     SEC. 246. SPECIAL PROVISIONS.

       (a) Enrollment of Women.--The Secretary shall immediately 
     take steps to achieve an enrollment of 50 percent women in 
     the Job Corps program, consistent with the need--
       (1) to promote efficiency and economy in the operation of 
     the program;
       (2) to promote sound administrative practice; and
       (3) to meet the socioeconomic, educational, and training 
     needs of the population to be served by the program.
       (b) Studies, Evaluations, Proposals, and Data.--The 
     Secretary shall assure that all studies, evaluations, 
     proposals, and data produced or developed with Federal funds 
     in the course of carrying out the Job Corps program shall 
     become the property of the United States.
       (c) Gross Receipts.--Transactions conducted by a private 
     for-profit contractor or a nonprofit contractor in connection 
     with the operation by the contractor of a Job Corps center or 
     the provision of services by the contractor for a Job Corps 
     center shall not be considered to be generating gross 
     receipts. Such a contractor shall not be liable, directly or 
     indirectly, to any State or subdivision of a State (nor to 
     any person acting on behalf of such a State or subdivision) 
     for any gross receipts taxes, business privilege taxes 
     measured by gross receipts, or any similar taxes imposed on, 
     or measured by, gross receipts in connection with any 
     payments made to or by such contractor for operating or 
     providing services for a Job Corps center. Such a contractor 
     shall not be liable to any State or subdivision of a State to 
     collect or pay any sales, excise, use, or similar tax imposed 
     on the sale to or use by such contractor of any property, 
     service, or other item in connection with the operation of or 
     provision of services for a Job Corps center.
       (d) Management Fee.--The Secretary shall provide each 
     operator or entity providing services for a Job Corps center 
     with an equitable and negotiated management fee of not less 
     than 1 percent of the contract amount.
       (e) Donations.--The Secretary may accept on behalf of the 
     Job Corps or individual Job Corps centers charitable 
     donations of cash or other assistance, including equipment 
     and materials, if such donations are available for 
     appropriate use for the purposes set forth in this subtitle.

     SEC. 247. REVIEW OF JOB CORPS CENTERS.

       (a) National Job Corps Review Panel.--
       (1) Establishment.--The Secretary shall establish a 
     National Job Corps Review Panel (hereafter referred to in 
     this section as the ``Panel'').
       (2) Membership.--The Panel shall be composed of nine 
     individuals selected by the Secretary, of which--
       (A) three individuals shall be members of the national 
     office of the Job Corps;
       (B) three individuals shall be representatives from the 
     private sector who have expertise and a demonstrated record 
     of success in understanding, analyzing, and motivating at-
     risk youth; and
       (C) three individuals shall be members of the Office of the 
     Inspector General of the Department of Labor.
       (3) Duties.--The Panel shall conduct a review 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, not 
     later than July 31, 1997, the Panel shall submit to the 
     Committee on Economic and Educational Opportunities of the 
     House of Representatives and the Committee on Labor and Human 
     Resources of the Senate a report containing the results of 
     the review, including--
       (A) information on the amount of funds expended for fiscal 
     year 1996 to carry out activities under such part, for each 
     State and for the United States;
       (B) for each Job Corps center funded under such part, 
     information on 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;
       (C) for each Job Corps center, information on 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;
       (D) for each Job Corps center, information on the amount of 
     funds expended for fiscal year 1996 under such part for 
     facility construction, rehabilitation, and acquisition 
     expenses;
       (E) information on 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;
       (F) a summary of the information described in subparagraphs 
     (B) through (E) for all Job Corps centers;
       (G) an assessment of the need to serve individuals 
     described in section 234 in the Job Corps program, 
     including--
       (i) a cost-benefit analysis of the residential component of 
     the Job Corps program;
       (ii) the need for residential education and training 
     services for individuals described in section 234, analyzed 
     for each State and for the United States; and
       (iii) the distribution of training positions in the Job 
     Corps program, as compared to the need for the services 
     described in clause (ii), analyzed for each State;
       (H) an overview of the Job Corps program as a whole and an 
     analysis of individual Job Corps centers, including a 5-year 
     performance measurement summary that includes information, 
     analyzed for the program and for each Job Corps center, on--
       (i) the number of enrollees served;
       (ii) the number of former enrollees who entered employment, 
     including the number of former enrollees placed in a position 
     related to the job training received through the program and 
     the number placed in a position not related to the job 
     training received;
       (iii) the number of former enrollees placed in jobs for 32 
     hours per week or more;
       (iv) the number of former enrollees who entered employment 
     and were retained in the employment for more than 13 weeks;
       (v) the number of former enrollees who entered the Armed 
     Forces;
       (vi) the number of former enrollees who completed 
     vocational training, and the rate of such completion, 
     analyzed by vocation;
       (vii) the number of former enrollees who entered 
     postsecondary education;
       (viii) the number and percentage of early dropouts from the 
     Job Corps program;
       (ix) the average wage of former enrollees, including wages 
     from positions described in clause (ii);
       (x) the number of former enrollees who obtained a secondary 
     school diploma or its recognized equivalent;
       (xi) the average level of learning gains for former 
     enrollees; and
       (xii) the number of former enrollees that did not--

       (I) enter employment or postsecondary education;
       (II) complete a vocational education program; or
       (III) make identifiable learning gains;

       (I) information regarding the performance of all existing 
     Job Corps centers over the 3 years preceding the date of 
     submission of the report; and
       (J) job placement rates for each Job Corps center and each 
     entity providing services to a Job Corps center.
       (b) Recommendations of Panel.--
       (1) Recommendations.--The Panel shall, based on the results 
     of the review described in subsection (a), make 
     recommendations to the Secretary, regarding improvements in 
     the operation of the Job Corps program, including--
       (A) closing 5 Job Corps centers by September 30, 1997, and 
     5 additional Job Corps centers by September 30, 2000;
       (B) relocating Job Corps centers described in paragraph 
     (2)(A)(iii) in cases in which facility rehabilitation, 
     renovation, or repair is not cost-effective; and
       (C) taking any other action that would improve the 
     operation of a Job Corps center or any other appropriate 
     action.
       (2) Considerations.--
       (A) In general.--In determining whether to recommend that 
     the Secretary close a Job Corps

[[Page H8414]]

     center, the Panel 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 review described in subsection (a)(3)(E);
       (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 subparagraph (B), 
     (C), or (D) of subsection (a)(3), as reflected in the review 
     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 Panel may determine to be 
     appropriate.
       (B) Coverage of states and regions.--Notwithstanding 
     subparagraph (A), the Panel shall not recommend that the 
     Secretary 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 Panel shall not evaluate the center under this 
     section sooner than 3 years after the first date of operation 
     of the center.
       (3)  Report.--Not later than August 30, 1997, the Panel 
     shall submit to the Secretary a report that contains--
       (A) the results of the review conducted under subsection 
     (a) (as contained in the report submitted under such 
     subsection); and
       (B) the recommendations described in paragraph (1).
       (c) Implementation of Performance Improvements.--The 
     Secretary shall, after reviewing the report submitted under 
     subsection (b)(3), implement improvements in the operation of 
     the Job Corps program, including closing 10 individual Job 
     Corps centers pursuant to subsection (b). In implementing 
     such improvements, the Secretary may close such additional 
     Job Corps centers as the Secretary determines to be 
     appropriate. Funds saved through the implementation of such 
     improvements shall be used to maintain overall Job Corps 
     program service levels, improve facilities at existing Job 
     Corps centers, relocate Job Corps centers, initiate new Job 
     Corps centers with a priority on placing Job Corps centers in 
     States without existing Job Corps centers, and make other 
     performance improvements in the Job Corps program.
       (d) Report to Congress.--The Secretary shall annually 
     report to Congress the information specified in subparagraphs 
     (H), (I), and (J) of subsection (a)(3) and such additional 
     information relating to the Job Corps program as the 
     Secretary may determine to be appropriate.

     SEC. 248. ADMINISTRATION.

       The Secretary shall carry out the responsibilities 
     specified for the Secretary in this subtitle, notwithstanding 
     any other provision of this Act.

     SEC. 249. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such sums as may be 
     necessary for each of the fiscal years 1998 through 2002 to 
     carry out this subtitle.

     SEC. 250. EFFECTIVE DATE.

       (a) In General.--Except as provided in subsection (b), this 
     subtitle shall take effect on July 1, 1998.
       (b) Report.--Section 247 shall take effect on the date of 
     enactment of this Act.
      Subtitle D--Amendments to the National Literacy Act of 1991

     SEC. 261. EXTENSION OF FUNCTIONAL LITERACY AND LIFE SKILLS 
                   PROGRAM FOR STATE AND LOCAL PRISONERS.

       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 1997, 1998, 1999, 2000, 2001, and 
     2002'' before the period.
                    TITLE III--MUSEUMS AND LIBRARIES

     SEC. 301. MUSEUM AND LIBRARY SERVICES.

       The Museum Services Act (20 U.S.C. 961 et seq.) is amended 
     to read as follows:
                ``TITLE II--MUSEUM AND LIBRARY SERVICES
                    ``Subtitle A--General Provisions

     ``SEC. 201. SHORT TITLE.

       ``This title may be cited as the `Museum and Library 
     Services Act'.

     ``SEC. 202. GENERAL DEFINITIONS.

       ``As used in this title:
       ``(1) Commission.--The term `Commission' means the National 
     Commission on Libraries and Information Science established 
     under section 3 of the National Commission on Libraries and 
     Information Sciences Act (20 U.S.C. 1502).
       ``(2) Director.--The term `Director' means the Director of 
     the Institute appointed under section 204.
       ``(3) Institute.--The term `Institute' means the Institute 
     of Museum and Library Services established under section 203.
       ``(4) Museum board.--The term `Museum Board' means the 
     National Museum Services Board established under section 275.

     ``SEC. 203. INSTITUTE OF MUSEUM AND LIBRARY SERVICES.

       ``(a) Establishment.--There is established, within the 
     National Foundation on the Arts and the Humanities, an 
     Institute of Museum and Library Services.
       ``(b) Offices.--The Institute shall consist of an Office of 
     Museum Services and an Office of Library Services. There 
     shall be a National Museum Services Board in the Office of 
     Museum Services.

     ``SEC. 204. DIRECTOR OF THE INSTITUTE.

       ``(a) Appointment.--
       ``(1) In general.--The Institute shall be headed by a 
     Director, appointed by the President, by and with the advice 
     and consent of the Senate.
       ``(2) Term.--The Director shall serve for a term of 4 
     years.
       ``(3) Qualifications.--Beginning with the first individual 
     appointed to the position of Director after the date of 
     enactment of the Workforce and Career Development Act of 
     1996, every second individual so appointed shall be appointed 
     from among individuals who have special competence with 
     regard to library and information services. Beginning with 
     the second individual appointed to the position of Director 
     after the date of enactment of the Workforce and Career 
     Development Act of 1996, every second individual so appointed 
     shall be appointed from among individuals who have special 
     competence with regard to museum services.
       ``(b) Compensation.--The Director shall be compensated at 
     the rate provided for level III of the Executive Schedule 
     under section 5314 of title 5, United States Code.
       ``(c) Duties and Powers.--The Director shall perform such 
     duties and exercise such powers as may be prescribed by law, 
     including awarding financial assistance for activities 
     described in this title.
       ``(d) Nondelegation.--The Director shall not delegate any 
     of the functions of the Director to any person who is not an 
     officer or employee of the Institute.
       ``(e) Coordination.--The Director shall ensure coordination 
     of the policies and activities of the Institute with the 
     policies and activities of other agencies and offices of the 
     Federal Government having interest in and responsibilities 
     for the improvement of museums and libraries and information 
     services.

     ``SEC. 205. DEPUTY DIRECTORS.

       ``The Office of Library Services shall be headed by a 
     Deputy Director, who shall be appointed by the Director from 
     among individuals who have a graduate degree in library 
     science and expertise in library and information services. 
     The Office of Museum Services shall be headed by a Deputy 
     Director, who shall be appointed by the Director from among 
     individuals who have expertise in museum services.

     ``SEC. 206. PERSONNEL.

       ``(a) In General.--The Director may, in accordance with 
     applicable provisions of title 5, United States Code, appoint 
     and determine the compensation of such employees as the 
     Director determines to be necessary to carry out the duties 
     of the Institute.
       ``(b) Voluntary Services.--The Director may accept and 
     utilize the voluntary services of individuals and reimburse 
     the individuals for travel expenses, including per diem in 
     lieu of subsistence, in the same amounts and to the same 
     extent as authorized under section 5703 of title 5, United 
     States Code, for persons employed intermittently in Federal 
     Government service.

     ``SEC. 207. CONTRIBUTIONS.

       ``The Institute is authorized to solicit, accept, receive, 
     and invest in the name of the United States, gifts, bequests, 
     or devises of money and other property or services and to use 
     such property or services in furtherance of the functions of 
     the Institute. Any proceeds from such gifts, bequests, or 
     devises, after acceptance by the Institute, shall be paid by 
     the donor or the representative of the donor to the Director. 
     The Director shall enter the proceeds in a special-interest 
     bearing account to the credit of the Institute for the 
     purposes specified in each case.
             ``Subtitle B--Library Services and Technology

     ``SEC. 211. SHORT TITLE.

       ``This subtitle may be cited as the `Library Services and 
     Technology Act'.

     ``SEC. 212. PURPOSE.

       ``It is the purpose of this subtitle--
       ``(1) to consolidate Federal library service programs;
       ``(2) to stimulate excellence and promote access to 
     learning and information resources in all types of libraries 
     for individuals of all ages;
       ``(3) to promote library services that provide all users 
     access to information through State, regional, national and 
     international electronic networks;
       ``(4) to provide linkages among and between libraries and 
     one-stop career center systems; and
       ``(5) to promote targeted library services to people of 
     diverse geographic, cultural, and socioeconomic backgrounds, 
     to individuals with disabilities, and to people with limited 
     functional literacy or information skills.

     ``SEC. 213. DEFINITIONS.

       ``As used in this subtitle:
       ``(1) Indian tribe.--The term `Indian tribe' means any 
     tribe, band, nation, or other organized group or community, 
     including any Alaska native village, regional corporation, or 
     village corporation, as defined in or established pursuant to 
     the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et 
     seq.), which is recognized by the Secretary of the Interior 
     as eligible for the special programs and services provided by 
     the United States to Indians because of their status as 
     Indians.
       ``(2) Library.--The term `library' includes--
       ``(A) a public library;
       ``(B) a public elementary school or secondary school 
     library;
       ``(C) an academic library;
       ``(D) a research library, which for the purposes of this 
     subtitle means a library that--

[[Page H8415]]

       ``(i) makes publicly available library services and 
     materials suitable for scholarly research and not otherwise 
     available to the public; and
       ``(ii) is not an integral part of an institution of higher 
     education; and
       ``(E) a private library, but only if the State in which 
     such private library is located determines that the library 
     should be considered a library for purposes of this subtitle.
       ``(3) Library consortium.--The term `library consortium' 
     means any local, statewide, regional, interstate, or 
     international cooperative association of library entities 
     which provides for the systematic and effective coordination 
     of the resources of school, public, academic, and special 
     libraries and information centers, for improved services for 
     the clientele of such library entities.
       ``(4) State.--The term `State', unless otherwise specified, 
     includes each of the 50 States of the United States, the 
     District of Columbia, the Commonwealth of Puerto Rico, 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.
       ``(5) State library administrative agency.--The term `State 
     library administrative agency' means the official agency of a 
     State charged by the law of the State with the extension and 
     development of public library services throughout the State.
       ``(6) State plan.--The term `State plan' means the document 
     which gives assurances that the officially designated State 
     library administrative agency has the fiscal and legal 
     authority and capability to administer all aspects of this 
     subtitle, provides assurances for establishing the State's 
     policies, priorities, criteria, and procedures necessary to 
     the implementation of all programs under this subtitle, 
     submits copies for approval as required by regulations 
     promulgated by the Director, identifies a State's library 
     needs, and sets forth the activities to be taken toward 
     meeting the identified needs supported with the assistance of 
     Federal funds made available under this subtitle.

     ``SEC. 214. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) Authorization of Appropriations.--
       ``(1) In general.--There are authorized to be appropriated 
     $150,000,000 for fiscal year 1997 and such sums as may be 
     necessary for each of the fiscal years 1998 through 2002 to 
     carry out this subtitle.
       ``(2) Transfer.--The Secretary of Education shall--
       ``(A) transfer any funds appropriated under the authority 
     of paragraph (1) to the Director to enable the Director to 
     carry out this subtitle; and
       ``(B) not exercise any authority concerning the 
     administration of this title other than the transfer 
     described in subparagraph (A).
       ``(b) Forward Funding.--
       ``(1) In general.--To the end of affording the responsible 
     Federal, State, and local officers adequate notice of 
     available Federal financial assistance for carrying out 
     ongoing library activities and projects, appropriations for 
     grants, contracts, or other payments under any program under 
     this subtitle are authorized to be included in the 
     appropriations Act for the fiscal year preceding the fiscal 
     year during which such activities and projects shall be 
     carried out.
       ``(2) Additional authorization of appropriations.--In order 
     to effect a transition to the timing of appropriation action 
     authorized by subsection (a), the application of this section 
     may result in the enactment, in a fiscal year, of separate 
     appropriations for a program under this subtitle (whether in 
     the same appropriations Act or otherwise) for two consecutive 
     fiscal years.
       ``(c) Administration.--Not more than 3 percent of the funds 
     appropriated under this section for a fiscal year may be used 
     to pay for the Federal administrative costs of carrying out 
     this subtitle.

                ``CHAPTER 1--BASIC PROGRAM REQUIREMENTS

     ``SEC. 221. RESERVATIONS AND ALLOTMENTS.

       ``(a) Reservations.--
       ``(1) In general.--From the amount appropriated under the 
     authority of section 214 for any fiscal year, the Director--
       ``(A) shall reserve 1\1/2\ percent to award grants in 
     accordance with section 261; and
       ``(B) shall reserve 4 percent to award national leadership 
     grants or contracts in accordance with section 262.
       ``(2) Special rule.--If the funds reserved pursuant to 
     paragraph (1)(B) for a fiscal year have not been obligated by 
     the end of such fiscal year, then such funds shall be 
     allotted in accordance with subsection (b) for the fiscal 
     year succeeding the fiscal year for which the funds were so 
     reserved.
       ``(b) Allotments.--
       ``(1) In general.--From the sums appropriated under the 
     authority of section 214 and not reserved under subsection 
     (a) for any fiscal year, the Director shall award grants from 
     minimum allotments, as determined under paragraph (3), to 
     each State. Any sums remaining after minimum allotments are 
     made for such year shall be allotted in the manner set forth 
     in paragraph (2).
       ``(2) Remainder.--From the remainder of any sums 
     appropriated under the authority of section 214 that are not 
     reserved under subsection (a) and not allotted under 
     paragraph (1) for any fiscal year, the Director shall award 
     grants to each State in an amount that bears the same 
     relation to such remainder as the population of the State 
     bears to the population of all States.
       ``(3) Minimum allotment.--
       ``(A) In general.--For the purposes of this subsection, the 
     minimum allotment for each State shall be $340,000, except 
     that the minimum allotment shall be $40,000 in the case of 
     the United States Virgin Islands, Guam, American Samoa, the 
     Commonwealth of the Northern Mariana Islands, the Republic of 
     the Marshall Islands, the Federated States of Micronesia, and 
     the Republic of Palau.
       ``(B) Ratable reductions.--If the sum appropriated under 
     the authority of section 214 and not reserved under 
     subsection (a) for any fiscal year is insufficient to fully 
     satisfy the aggregate of the minimum allotments for all 
     States for that purpose for such year, each of such minimum 
     allotments shall be reduced ratably.
       ``(C) Special rule.--
       ``(i) In general.--Notwithstanding any other provision of 
     this subsection and using funds allotted for the Republic of 
     the Marshall Islands, the Federated States of Micronesia, and 
     the Republic of Palau under this subsection, the Director 
     shall award grants to Guam, American Samoa, the Commonwealth 
     of the Northern Mariana Islands, the Republic of the Marshall 
     Islands, the Federated States of Micronesia, or the Republic 
     of Palau to carry out activities described in this subtitle 
     in accordance with the provisions of this subtitle that the 
     Director determines are not inconsistent with this 
     subparagraph.
       ``(ii) Award basis.--The Director shall award grants 
     pursuant to clause (i) on a competitive basis and pursuant to 
     recommendations from the Pacific Region Educational 
     Laboratory in Honolulu, Hawaii.
       ``(iii) Termination of eligibility.--Notwithstanding any 
     other provision of law, the Republic of the Marshall Islands, 
     the Federated States of Micronesia, and the Republic of Palau 
     shall not receive any funds under this subtitle for any 
     fiscal year that begins after September 30, 2001.
       ``(iv) Administrative costs.--The Director may provide not 
     more than 5 percent of the funds made available for grants 
     under this subparagraph to pay the administrative costs of 
     the Pacific Region Educational Laboratory regarding 
     activities assisted under this subparagraph.
       ``(4) Data.--The population of each State and of all the 
     States shall be determined by the Director on the basis of 
     the most recent data available from the Bureau of the Census.

     ``SEC. 222. ADMINISTRATION.

       ``(a) In General.--Not more than 4 percent of the total 
     amount of funds received under this subtitle for any fiscal 
     year by a State may be used for administrative costs.
       ``(b) Construction.--Nothing in this section shall be 
     construed to limit spending for evaluation costs under 
     section 224(c) from sources other than this subtitle.

     ``SEC. 223. PAYMENTS; FEDERAL SHARE; AND MAINTENANCE OF 
                   EFFORT REQUIREMENTS.

       ``(a) Payments.--The Director shall pay to each State 
     library administrative agency having a State plan approved 
     under section 224 the Federal share of the cost of the 
     activities described in the State plan.
       ``(b) Federal Share.--
       ``(1) In general.--The Federal share shall be 66 percent.
       ``(2) Non-federal share.--The non-Federal share of payments 
     shall be provided from non-Federal, State, or local sources.
       ``(c) Maintenance of Effort.--
       ``(1) State expenditures.--
       ``(A) Requirement.--
       ``(i) In general.--The amount otherwise payable to a State 
     for a fiscal year pursuant to an allotment under this chapter 
     shall be reduced if the level of State expenditures, as 
     described in paragraph (2), for the previous fiscal year is 
     less than the average of the total of such expenditures for 
     the 3 fiscal years preceding that previous fiscal year. The 
     amount of the reduction in allotment for any fiscal year 
     shall be equal to the amount by which the level of such State 
     expenditures for the fiscal year for which the determination 
     is made is less than the average of the total of such 
     expenditures for the 3 fiscal years preceding the fiscal year 
     for which the determination is made.
       ``(ii) Calculation.--Any decrease in State expenditures 
     resulting from the application of subparagraph (B) shall be 
     excluded from the calculation of the average level of State 
     expenditures for any 3-year period described in clause (i).
       ``(B) Decrease in federal support.--If the amount made 
     available under this subtitle for a fiscal year is less than 
     the amount made available under this subtitle for the 
     preceding fiscal year, then the expenditures required by 
     subparagraph (A) for such preceding fiscal year shall be 
     decreased by the same percentage as the percentage decrease 
     in the amount so made available.
       ``(2) Level of state expenditures.--The level of State 
     expenditures for the purposes of paragraph (1) shall include 
     all State dollars expended by the State library 
     administrative agency for library programs that are 
     consistent with the purposes of this subtitle. All funds 
     included in the maintenance of effort calculation under this 
     subsection shall be expended during the fiscal year for which 
     the determination is made, and shall not include capital 
     expenditures, special one-time project costs, or similar 
     windfalls.
       ``(3) Waiver.--The Director may waive the requirements of 
     paragraph (1) if the Director determines that such a waiver 
     would be equitable due to exceptional or uncontrollable 
     circumstances such as a natural disaster or a precipitous and 
     unforeseen decline in the financial resources of the State.

     ``SEC. 224. STATE PLANS.

       ``(a) State Plan Required.--
       ``(1) In general.--In order to be eligible to receive a 
     grant under this subtitle, a State library administrative 
     agency shall submit a State plan to the Director not later 
     than April 1, 1997.
       ``(2) Duration.--The State plan shall cover a period of 5 
     fiscal years.
       ``(3) Revisions.--If a State library administrative agency 
     makes a substantive revision to its

[[Page H8416]]

     State plan, then the State library administrative agency 
     shall submit to the Director an amendment to the State plan 
     containing such revision not later than April 1 of the fiscal 
     year preceding the fiscal year for which the amendment will 
     be effective.
       ``(b) Contents.--The State plan shall--
       ``(1) establish goals, and specify priorities, for the 
     State consistent with the purposes of this subtitle;
       ``(2) describe activities that are consistent with the 
     goals and priorities established under paragraph (1), the 
     purposes of this subtitle, and section 231, that the State 
     library administrative agency will carry out during such year 
     using such grant;
       ``(3) describe the procedures that such agency will use to 
     carry out the activities described in paragraph (2);
       ``(4) describe the methodology that such agency will use to 
     evaluate the success of the activities established under 
     paragraph (2) in achieving the goals and meeting the 
     priorities described in paragraph (1);
       ``(5) describe the procedures that such agency will use to 
     involve libraries and library users throughout the State in 
     policy decisions regarding implementation of this subtitle; 
     and
       ``(6) provide assurances satisfactory to the Director that 
     such agency will make such reports, in such form and 
     containing such information, as the Director may reasonably 
     require to carry out this subtitle and to determine the 
     extent to which funds provided under this subtitle have been 
     effective in carrying out the purposes of this subtitle.
       ``(c) Evaluation and Report.--Each State library 
     administrative agency receiving a grant under this subtitle 
     shall independently evaluate, and report to the Director 
     regarding, the activities assisted under this subtitle, prior 
     to the end of the 5-year plan.
       ``(d) Information.--Each library receiving assistance under 
     this subtitle shall submit to the State library 
     administrative agency such information as such agency may 
     require to meet the requirements of subsection (c).
       ``(e) Approval.--
       ``(1) In general.--The Director shall approve any State 
     plan under this subtitle that meets the requirements of this 
     subtitle and provides satisfactory assurances that the 
     provisions of such plan will be carried out.
       ``(2) Public availability.--Each State library 
     administrative agency receiving a grant under this subtitle 
     shall make the State plan available to the public.
       ``(3) Administration.--If the Director determines that the 
     State plan does not meet the requirements of this section, 
     the Director shall--
       ``(A) immediately notify the State library administrative 
     agency of such determination and the reasons for such 
     determination;
       ``(B) offer the State library administrative agency the 
     opportunity to revise its State plan;
       ``(C) provide technical assistance in order to assist the 
     State library administrative agency in meeting the 
     requirements of this section; and
       ``(D) provide the State library administrative agency the 
     opportunity for a hearing.

                     ``CHAPTER 2--LIBRARY PROGRAMS

     ``SEC. 231. GRANTS TO STATES.

       ``(a) In General.--Of the funds provided to a State library 
     administrative agency under section 214, such agency shall 
     expend, either directly or through subgrants or cooperative 
     agreements, at least 96 percent of such funds for--
       ``(1) establishing or enhancing electronic linkages among 
     or between libraries, library consortia, one-stop career 
     center systems established under section 121(d) of the 
     Workforce and Career Development Act of 1996, and eligible 
     providers as such term is defined in section 4 of such Act, 
     or any combination thereof; and
       ``(2) targeting library and information services to persons 
     having difficulty using a library and to underserved urban 
     and rural communities, including children (from birth through 
     age 17) from families with incomes below 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.
       ``(b) Special Rule.--Each State library administrative 
     agency receiving funds under this chapter may apportion the 
     funds available for the purposes described in subsection (a) 
     between the two purposes described in paragraphs (1) and (2) 
     of such subsection, as appropriate, to meet the needs of the 
     individual State.

                 ``CHAPTER 3--ADMINISTRATIVE PROVISIONS

                   ``Subchapter A--State Requirements

     ``SEC. 251. STATE ADVISORY COUNCILS.

       ``Each State desiring assistance under this subtitle may 
     establish a State advisory council which is broadly 
     representative of the library entities in the State, 
     including public, school, academic, special, and 
     institutional libraries, and libraries serving individuals 
     with disabilities.

                  ``Subchapter B--Federal Requirements

     ``SEC. 261. SERVICES FOR INDIAN TRIBES.

       ``From amounts reserved under section 221(a)(1)(A) for any 
     fiscal year the Director shall award grants to organizations 
     primarily serving and representing Indian tribes to enable 
     such organizations to carry out the activities described in 
     section 231.

     ``SEC. 262. NATIONAL LEADERSHIP GRANTS OR CONTRACTS.

       ``(a) In General.--From the amounts reserved under section 
     221(a)(1)(B) for any fiscal year the Director shall establish 
     and carry out a program awarding national leadership grants 
     or contracts to enhance the quality of library services 
     nationwide and to provide coordination between libraries and 
     museums. Such grants or contracts shall be used for 
     activities that may include--
       ``(1) education and training of persons in library and 
     information science, particularly in areas of new technology 
     and other critical needs, including graduate fellowships, 
     traineeships, institutes, or other programs;
       ``(2) research and demonstration projects related to the 
     improvement of libraries, education in library and 
     information science, enhancement of library services through 
     effective and efficient use of new technologies, and 
     dissemination of information derived from such projects;
       ``(3) preservation or digitization of library materials and 
     resources, giving priority to projects emphasizing 
     coordination, avoidance of duplication, and access by 
     researchers beyond the institution or library entity 
     undertaking the project; and
       ``(4) model programs demonstrating cooperative efforts 
     between libraries and museums.
       ``(b) Grants or Contracts.--
       ``(1) In general.--The Director may carry out the 
     activities described in subsection (a) by awarding grants to, 
     or entering into contracts with, libraries, agencies, 
     institutions of higher education, or museums, where 
     appropriate.
       ``(2) Competitive basis.--Grants and contracts under this 
     section shall be awarded on a competitive basis.
       ``(c) Special Rule.--The Director shall make every effort 
     to ensure that activities assisted under this section are 
     administered by appropriate library and museum professionals 
     or experts.

     ``SEC. 263. STATE AND LOCAL INITIATIVES.

       ``Nothing in this subtitle shall be construed to interfere 
     with State and local initiatives and responsibility in the 
     conduct of library services. The administration of libraries, 
     the selection of personnel and library books and materials, 
     and insofar as consistent with the purposes of this subtitle, 
     the determination of the best uses of the funds provided 
     under this subtitle, shall be reserved for the States and 
     their local subdivisions.
                     ``Subtitle C--Museum Services

     ``SEC. 271. PURPOSE.

       ``It is the purpose of this subtitle--
       ``(1) to encourage and assist museums in their educational 
     role, in conjunction with formal systems of elementary, 
     secondary, and postsecondary education and with programs of 
     nonformal education for all age groups;
       ``(2) to assist museums in modernizing their methods and 
     facilities so that the museums are better able to conserve 
     the cultural, historic, and scientific heritage of the United 
     States; and
       ``(3) to ease the financial burden borne by museums as a 
     result of their increasing use by the public.

     ``SEC. 272. DEFINITIONS.

       ``As used in this subtitle:
       ``(1) Museum.--The term `museum' means a public or private 
     nonprofit agency or institution organized on a permanent 
     basis for essentially educational or aesthetic purposes, that 
     utilizes a professional staff, owns or utilizes tangible 
     objects, cares for the tangible objects, and exhibits the 
     tangible objects to the public on a regular basis.
       ``(2) State.--The term `State' means each of the 50 States 
     of the United States, the District of Columbia, the 
     Commonwealth of Puerto Rico, 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.

     ``SEC. 273. MUSEUM SERVICES ACTIVITIES.

       ``(a) Grants.--The Director, subject to the policy 
     direction of the Museum Board, may make grants to museums to 
     pay for the Federal share of the cost of increasing and 
     improving museum services, through such activities as--
       ``(1) programs that enable museums to construct or install 
     displays, interpretations, and exhibitions in order to 
     improve museum services provided to the public;
       ``(2) assisting museums in developing and maintaining 
     professionally trained or otherwise experienced staff to meet 
     the needs of the museums;
       ``(3) assisting museums in meeting the administrative costs 
     of preserving and maintaining the collections of the museums, 
     exhibiting the collections to the public, and providing 
     educational programs to the public through the use of the 
     collections;
       ``(4) assisting museums in cooperating with each other in 
     developing traveling exhibitions, meeting transportation 
     costs, and identifying and locating collections available for 
     loan;
       ``(5) assisting museums in the conservation of their 
     collections;
       ``(6) developing and carrying out specialized programs for 
     specific segments of the public, such as programs for urban 
     neighborhoods, rural areas, Indian reservations, and penal 
     and other State institutions; and
       ``(7) model programs demonstrating cooperative efforts 
     between libraries and museums.
       ``(b) Contracts and Cooperative Agreements.--
       ``(1) Projects to strengthen museum services.--The 
     Director, subject to the policy direction of the Museum 
     Board, is authorized to enter into contracts and cooperative 
     agreements with appropriate entities, as determined by the 
     Director, to pay for the Federal share of enabling the 
     entities to undertake projects designed to strengthen museum 
     services, except that any contracts or cooperative agreements 
     entered into pursuant to this subsection shall be effective 
     only to such extent or in such amounts as are provided in 
     appropriations Acts.
       ``(2) Limitation on amount.--The aggregate amount of 
     financial assistance made available under this subsection for 
     a fiscal year shall not exceed 15 percent of the amount 
     appropriated under this subtitle for such fiscal year.

[[Page H8417]]

       ``(3) Operational expenses.--No financial assistance may be 
     provided under this subsection to pay for operational 
     expenses.
       ``(c) Federal Share.--
       ``(1) 50 percent.--Except as provided in paragraph (2), the 
     Federal share described in subsections (a) and (b) shall be 
     not more than 50 percent.
       ``(2) Greater than 50 percent.--The Director may use not 
     more than 20 percent of the funds made available under this 
     subtitle for a fiscal year to make grants under subsection 
     (a), or enter into contracts or agreements under subsection 
     (b), for which the Federal share may be greater than 50 
     percent.
       ``(d) Review and Evaluation.--The Director shall establish 
     procedures for reviewing and evaluating grants, contracts, 
     and cooperative agreements made or entered into under this 
     subtitle. Procedures for reviewing grant applications or 
     contracts and cooperative agreements for financial assistance 
     under this subtitle shall not be subject to any review 
     outside of the Institute.

     ``SEC. 274. AWARD.

       ``The Director, with the advice of the Museum Board, may 
     annually award a National Award for Museum Service to 
     outstanding museums that have made significant contributions 
     in service to their communities.

     ``SEC. 275. NATIONAL MUSEUM SERVICES BOARD.

       ``(a) Establishment.--There is established in the Institute 
     a National Museum Services Board.
       ``(b) Composition and Qualifications.--
       ``(1) Composition.--The Museum Board shall consist of the 
     Director and 14 members appointed by the President, by and 
     with the advice and consent of the Senate.
       ``(2) Qualifications.--The appointive members of the Museum 
     Board shall be selected from among citizens of the United 
     States--
       ``(A) who are members of the general public;
       ``(B) who are or have been affiliated with--
       ``(i) resources that, collectively, are broadly 
     representative of the curatorial, conservation, educational, 
     and cultural resources of the United States; or
       ``(ii) museums that, collectively, are broadly 
     representative of various types of museums, including museums 
     relating to science, history, technology, art, zoos, and 
     botanical gardens; and
       ``(C) who are recognized for their broad knowledge, 
     expertise, or experience in museums or commitment to museums.
       ``(3) Geographic and other representation.--Members of the 
     Museum Board shall be appointed to reflect persons from 
     various geographic regions of the United States. The Museum 
     Board may not include, at any time, more than 3 members from 
     a single State. In making such appointments, the President 
     shall give due regard to equitable representation of women, 
     minorities, and persons with disabilities who are involved 
     with museums.
       ``(c) Terms.--
       ``(1) In general.--Each appointive member of the Museum 
     Board shall serve for a term of 5 years, except that--
       ``(A) of the members first appointed, 3 shall serve for 
     terms of 5 years, 3 shall serve for terms of 4 years, 3 shall 
     serve for terms of 3 years, 3 shall serve for terms of 2 
     years, and 2 shall serve for terms of 1 year, as designated 
     by the President at the time of nomination for appointment; 
     and
       ``(B) any member appointed to fill a vacancy shall serve 
     for the remainder of the term for which the predecessor of 
     the member was appointed.
       ``(2) Reappointment.--No member of the Museum Board who has 
     been a member for more than 7 consecutive years shall be 
     eligible for reappointment.
       ``(3) Service until successor takes office.--
     Notwithstanding any other provision of this subsection, a 
     member of the Museum Board shall serve after the expiration 
     of the term of the member until the successor to the member 
     takes office.
       ``(d) Duties and Powers.--The Museum Board shall have the 
     responsibility to advise the Director on general policies 
     with respect to the duties, powers, and authority of the 
     Institute relating to museum services, including general 
     policies with respect to--
       ``(1) financial assistance awarded under this subtitle for 
     museum services; and
       ``(2) projects described in section 262(a)(4).
       ``(e) Chairperson.--The President shall designate 1 of the 
     appointive members of the Museum Board as Chairperson of the 
     Museum Board.
       ``(f) Meetings.--
       ``(1) In general.--The Museum Board shall meet--
       ``(A) not less than 3 times each year, including--
       ``(i) not less than 2 times each year separately; and
       ``(ii) not less than 1 time each year in a joint meeting 
     with the Commission, convened for purposes of making general 
     policies with respect to financial assistance for projects 
     described in section 262(a)(4); and
       ``(B) at the call of the Director.
       ``(2) Vote.--All decisions by the Museum Board with respect 
     to the exercise of the duties and powers of the Museum Board 
     shall be made by a majority vote of the members of the Museum 
     Board who are present. All decisions by the Commission and 
     the Museum Board with respect to the policies described in 
     paragraph (1)(A)(ii) shall be made by a \2/3\ majority vote 
     of the total number of the members of the Commission and the 
     Museum Board who are present.
       ``(g) Quorum.--A majority of the members of the Museum 
     Board shall constitute a quorum for the conduct of business 
     at official meetings of the Museum Board, but a lesser number 
     of members may hold hearings. A majority of the members of 
     the Commission and a majority of the members of the Museum 
     Board shall constitute a quorum for the conduct of business 
     at official joint meetings of the Commission and the Museum 
     Board.
       ``(h) Compensation and Travel Expenses.--
       ``(1) Compensation.--Each member of the Museum Board who is 
     not an officer or employee of the Federal Government shall be 
     compensated at a rate to be fixed by the President, but not 
     to exceed the daily equivalent of the maximum rate authorized 
     for a position above grade 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 Museum Board. 
     All members of the Museum Board who are officers or employees 
     of the Federal Government shall serve without compensation in 
     addition to compensation received for their services as 
     officers or employees of the Federal Government.
       ``(2) Travel expenses.--The members of the Museum Board 
     shall be allowed travel expenses, including per diem in lieu 
     of subsistence, in the same amounts and to the same extent, 
     as authorized under section 5703 of title 5, United States 
     Code, for persons employed intermittently in Federal 
     Government service.
       ``(i) Coordination.--The Museum Board, with the advice of 
     the Director, shall take steps to ensure that the policies 
     and activities of the Institute are coordinated with other 
     activities of the Federal Government.

     ``SEC. 276. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) Grants.--For the purpose of carrying out this 
     subtitle, there are authorized to be appropriated to the 
     Director $28,700,000 for the fiscal year 1997, and such sums 
     as may be necessary for each of the fiscal years 1998 through 
     2002.
       ``(b) Administration.--Not more than 10 percent of the 
     funds appropriated under this section for a fiscal year may 
     be used to pay for the administrative costs of carrying out 
     this subtitle.
       ``(c) Sums Remaining Available.--Sums appropriated pursuant 
     to subsection (a) for any fiscal year shall remain available 
     for obligation until expended.''.

     SEC. 302. NATIONAL COMMISSION ON LIBRARIES AND INFORMATION 
                   SCIENCE.

       (a) Functions.--Section 5 of the National Commission on 
     Libraries and Information Science Act (20 U.S.C. 1504) is 
     amended--
       (1) by redesignating subsections (b) through (d) as 
     subsections (d) through (f), respectively; and
       (2) by inserting after subsection (a) the following:
       ``(b) The Commission shall have the responsibility to 
     advise the Director of the Institute of Museum and Library 
     Services on general policies with respect to the duties, 
     powers, and authority of the Institute of Museum and Library 
     Services relating to library services, including--
       ``(1) general policies with respect to--
       ``(A) financial assistance awarded under the Museum and 
     Library Services Act for library services; and
       ``(B) projects described in section 262(a)(4) of such Act; 
     and
       ``(2) measures to ensure that the policies and activities 
     of the Institute of Museum and Library Services are 
     coordinated with other activities of the Federal Government.
       ``(c)(1) The Commission shall meet not less than 1 time 
     each year in a joint meeting with the National Museum 
     Services Board, convened for purposes of providing advice on 
     general policy with respect to financial assistance for 
     projects described in section 262(a)(4) of such Act.
       ``(2) All decisions by the Commission and the National 
     Museum Services Board with respect to the advice on general 
     policy described in paragraph (1) shall be made by a \2/3\ 
     majority vote of the total number of the members of the 
     Commission and the National Museum Services Board who are 
     present.
       ``(3) A majority of the members of the Commission and a 
     majority of the members of the National Museum Services Board 
     shall constitute a quorum for the conduct of business at 
     official joint meetings of the Commission and the National 
     Museum Services Board.''.
       (b) Membership.--Section 6 of the National Commission on 
     Libraries and Information Science Act (20 U.S.C. 1505) is 
     amended--
       (1) in subsection (a)--
       (A) in the first sentence, by striking ``Librarian of 
     Congress'' and inserting ``Librarian of Congress, the 
     Director of the Institute of Museum and Library Services (who 
     shall serve as an ex officio, nonvoting member),'';
       (B) in the second sentence--
       (i) by striking ``special competence or interest in'' and 
     inserting ``special competence in or knowledge of; and
       (ii) by inserting before the period the following: ``and at 
     least one other of whom shall be knowledgeable with respect 
     to the library and information service and science needs of 
     the elderly'';
       (C) in the third sentence, by inserting ``appointive'' 
     before ``members''; and
       (D) in the last sentence, by striking ``term and at least'' 
     and all that follows and inserting ``term.''; and
       (2) in subsection (b), by striking ``the rate specified'' 
     and all that follows through ``and while'' and inserting 
     ``the daily equivalent of the maximum rate authorized for a 
     position above grade GS-15 of the General Schedule under 
     section 5108 of title 5, United States Code, for each day 
     (including traveltime) during which the members are engaged 
     in the business of the Commission. While''.

     SEC. 303. TRANSFER OF FUNCTIONS FROM INSTITUTE OF MUSEUM 
                   SERVICES.

       (a) Definitions.--For purposes of this section, unless 
     otherwise provided or indicated by the context--

[[Page H8418]]

       (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 From the Institute of Museum 
     Services and the Library Program Office.--There are 
     transferred to the Director of the Institute of Museum and 
     Library Services established under section 203 of the Museum 
     and Library Services Act--
       (1) all functions that the Director of the Institute of 
     Museum Services exercised before the date of enactment of 
     this section (including all related functions of any officer 
     or employee of the Institute of Museum Services); and
       (2) all functions that the Director of Library Programs in 
     the Office of Educational Research and Improvement in the 
     Department of Education exercised before the date of 
     enactment of this section and any related function of any 
     officer or employee of the Department of Education.
       (c) Determinations of Certain Functions by the Office of 
     Management and Budget.--If necessary, the Office of 
     Management and Budget shall make any determination of the 
     functions that are transferred under subsection (b).
       (d) Delegation and Assignment.--Except where otherwise 
     expressly prohibited by law or otherwise provided by this 
     section, the Director of the Institute of Museum and Library 
     Services may delegate any of the functions transferred to the 
     Director of the Institute of Museum and Library Services by 
     this section and any function transferred or granted to such 
     Director of the Institute of Museum and Library Services 
     after the effective date of this section to such officers and 
     employees of the Institute of Museum and Library Services as 
     the Director of the Institute of Museum and Library Services 
     may designate, and may authorize successive redelegations of 
     such functions as may be necessary or appropriate, except 
     that any delegation of any such functions with respect to 
     libraries shall be made to the Deputy Director of the Office 
     of Library Services and with respect to museums shall be made 
     to the Deputy Director of the Office of Museum Services. No 
     delegation of functions by the Director of the Institute of 
     Museum and Library Services under this section or under any 
     other provision of this section shall relieve such Director 
     of the Institute of Museum and Library Services of 
     responsibility for the administration of such functions.
       (e) Reorganization.--The Director of the Institute of 
     Museum and Library Services may allocate or reallocate any 
     function transferred under subsection (b) among the officers 
     of the Institute of Museum and Library Services, and may 
     establish, consolidate, alter, or discontinue such 
     organizational entities in the Institute of Museum and 
     Library Services as may be necessary or appropriate.
       (f) Rules.--The Director of the Institute of Museum and 
     Library Services may prescribe, in accordance with chapters 5 
     and 6 of title 5, United States Code, such rules and 
     regulations as the Director of the Institute of Museum and 
     Library Services determines to be necessary or appropriate to 
     administer and manage the functions of the Institute of 
     Museum and Library Services.
       (g) Transfer and Allocations of Appropriations and 
     Personnel.--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 Institute 
     of Museum and Library Services. Unexpended funds transferred 
     pursuant to this subsection shall be used only for the 
     purposes for which the funds were originally authorized and 
     appropriated.
       (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 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 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 purposes of this section.
       (i) Effect on Personnel.--
       (1) In general.--Except as otherwise provided by this 
     section, the transfer pursuant to this section of full-time 
     personnel (except special Government employees) and part-time 
     personnel holding permanent positions shall not cause any 
     such employee to be separated or reduced in grade or 
     compensation for 1 year after the date of transfer of such 
     employee under this section.
       (2) Executive schedule positions.--Except as otherwise 
     provided in this section, any person who, on the day 
     preceding the effective date of this section, held a position 
     compensated in accordance with the Executive Schedule 
     prescribed in chapter 53 of title 5, United States Code, and 
     who, without a break in service, is appointed in the 
     Institute of Museum and Library Services to a position having 
     duties comparable to the duties performed immediately 
     preceding such appointment shall continue to be compensated 
     in such new position at not less than the rate provided for 
     such previous position, for the duration of the service of 
     such person in such new position.
       (j) Savings Provisions.--
       (1) Continuing effect of legal documents.--All orders, 
     determinations, rules, regulations, permits, agreements, 
     grants, contracts, certificates, licenses, registrations, 
     privileges, and other administrative actions--
       (A) that have been issued, made, granted, or allowed to 
     become effective by the President, any Federal agency or 
     official of a Federal agency, or by a court of competent 
     jurisdiction, in the performance of functions that are 
     transferred under this section; and
       (B) that were in effect before 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 Director of the 
     Institute of Museum and Library Services or other authorized 
     official, a court of competent jurisdiction, or by operation 
     of law.
       (2) Proceedings not affected.--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 
     Institute of Museum Services on the effective date of this 
     section, with respect to functions transferred by this 
     section. 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 the 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. Nothing in 
     this paragraph shall be construed 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.
       (3) Suits not affected.--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.
       (4) Nonabatement of actions.--No suit, action, or other 
     proceeding commenced by or against the Institute of Museum 
     Services, or by or against any individual in the official 
     capacity of such individual as an officer of the Institute of 
     Museum Services, shall abate by reason of the enactment of 
     this section.
       (5) Administrative actions relating to promulgation of 
     regulations.--Any administrative action relating to the 
     preparation or promulgation of a regulation by the Institute 
     of Museum Services relating to a function transferred under 
     this section may be continued by the Institute of Museum and 
     Library Services with the same effect as if this section had 
     not been enacted.
       (k) Transition.--The Director of the Institute of Museum 
     and Library Services may utilize--
       (1) the services of such officers, employees, and other 
     personnel of the Institute of Museum Services with respect to 
     functions transferred to the Institute of Museum and Library 
     Services 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 Director of the Institute of Museum Services with 
     regard to functions transferred under subsection (b), shall 
     be deemed to refer to the Director of the Institute of Museum 
     and Library Services; and
       (2) the Institute of Museum Services with regard to 
     functions transferred under subsection (b), shall be deemed 
     to refer to the Institute of Museum and Library Services.
       (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 Director of the 
     Institute of Museum and Library Services shall prepare and 
     submit to the appropriate committees of Congress recommended 
     legislation containing technical and conforming amendments to 
     reflect the changes made by this section.
       (2) Submission to congress.--Not later than 6 months after 
     the effective date of this section, the Director of the 
     Institute of Museum and Library Services shall submit to the 
     appropriate committees of Congress the recommended 
     legislation referred to under paragraph (1).

     SEC. 304. SERVICE OF INDIVIDUALS SERVING ON DATE OF 
                   ENACTMENT.

       Notwithstanding section 204 of the Museum and Library 
     Services Act, the individual who was appointed to the 
     position of Director of the Institute of Museum Services 
     under section 205 of the Museum Services Act (as such section 
     was in effect on the day before the date of enactment of this 
     Act) and who is serving in such position on the day before 
     the date of enactment of this Act shall serve as the first 
     Director of the Institute of Museum and Library Services 
     under section 204 of the Museum and Library Services Act (as 
     added by section 301 of this title), and shall serve at the 
     pleasure of the President.

     SEC. 305. CONSIDERATION.

       Consistent with title 5, United States Code, in appointing 
     employees of the Office of Library

[[Page H8419]]

     Services, the Director of the Institute of Museum and Library 
     Services shall give strong consideration to individuals with 
     experience in administering State-based and national library 
     and information services programs.

     SEC. 306. TRANSITION AND TRANSFER OF FUNDS.

       (a) Transition.--The Director of the Office of Management 
     and Budget shall take appropriate measures to ensure an 
     orderly transition from the activities previously 
     administered by the Director of Library Programs in the 
     Office of Educational Research and Improvement in the 
     Department of Education to the activities administered by the 
     Institute for Museum and Library Services under this title. 
     Such measures may include the transfer of appropriated funds.
       (b) Transfer.--The Secretary of Education shall transfer to 
     the Director the amount of funds necessary to ensure the 
     orderly transition from activities previously administered by 
     the Director of the Office of Library Programs in the Office 
     of Educational Research and Improvement in the Department of 
     Education to the activities administered by the Institute for 
     Museum and Library Services. In no event shall the amount of 
     funds transferred pursuant to the preceding sentence be less 
     than $200,000.
                       TITLE IV--HIGHER EDUCATION

     SEC. 401. REORGANIZATION OF THE STUDENT LOAN MARKETING 
                   ASSOCIATION THROUGH THE FORMATION OF A HOLDING 
                   COMPANY.

       (a) Amendment.--Part B of title IV of the Higher Education 
     Act of 1965 (20 U.S.C. 1071 et seq.) is amended by inserting 
     after section 439 (20 U.S.C. 1087-2) the following new 
     section:

     ``SEC. 440. REORGANIZATION OF THE STUDENT LOAN MARKETING 
                   ASSOCIATION THROUGH THE FORMATION OF A HOLDING 
                   COMPANY.

       ``(a) Actions by the Association's Board of Directors.--The 
     Board of Directors of the Association shall take or cause to 
     be taken all such action as the Board of Directors deems 
     necessary or appropriate to effect, upon the shareholder 
     approval described in subsection (b), a restructuring of the 
     common stock ownership of the Association, as set forth in a 
     plan of reorganization adopted by the Board of Directors (the 
     terms of which shall be consistent with this section) so that 
     all of the outstanding common shares of the Association shall 
     be directly owned by a Holding Company. Such actions may 
     include, in the Board of Director's discretion, a merger of a 
     wholly owned subsidiary of the Holding Company with and into 
     the Association, which would have the effect provided in the 
     plan of reorganization and the law of the jurisdiction in 
     which such subsidiary is incorporated. As part of the 
     restructuring, the Board of Directors may cause--
       ``(1) the common shares of the Association to be converted, 
     on the reorganization effective date, to common shares of the 
     Holding Company on a one for one basis, consistent with 
     applicable State or District of Columbia law; and
       ``(2) Holding Company common shares to be registered with 
     the Securities and Exchange Commission.
       ``(b) Shareholder Approval.--The plan of reorganization 
     adopted by the Board of Directors pursuant to subsection (a) 
     shall be submitted to common shareholders of the Association 
     for their approval. The reorganization shall occur on the 
     reorganization effective date, provided that the plan of 
     reorganization has been approved by the affirmative votes, 
     cast in person or by proxy, of the holders of a majority of 
     the issued and outstanding shares of the Association common 
     stock.
       ``(c) Transition.--In the event the shareholders of the 
     Association approve the plan of reorganization under 
     subsection (b), the following provisions shall apply 
     beginning on the reorganization effective date:
       ``(1) In general.--Except as specifically provided in this 
     section, until the dissolution date the Association shall 
     continue to have all of the rights, privileges and 
     obligations set forth in, and shall be subject to all of the 
     limitations and restrictions of, section 439, and the 
     Association shall continue to carry out the purposes of such 
     section. The Holding Company and any subsidiary of the 
     Holding Company (other than the Association) shall not be 
     entitled to any of the rights, privileges, and obligations, 
     and shall not be subject to the limitations and restrictions, 
     applicable to the Association under section 439, except as 
     specifically provided in this section. The Holding Company 
     and any subsidiary of the Holding Company (other than the 
     Association or a subsidiary of the Association) shall not 
     purchase loans insured under this Act until such time as the 
     Association ceases acquiring such loans, except that the 
     Holding Company may purchase such loans if the Association is 
     merely continuing to acquire loans as a lender of last resort 
     pursuant to section 439(q) or under an agreement with the 
     Secretary described in paragraph (6).
       ``(2) Transfer of certain property.--
       ``(A) In general.--Except as provided in this section, on 
     the reorganization effective date or as soon as practicable 
     thereafter, the Association shall use the Association's best 
     efforts to transfer to the Holding Company or any subsidiary 
     of the Holding Company (or both), as directed by the Holding 
     Company, all real and personal property of the Association 
     (both tangible and intangible) other than the remaining 
     property. Subject to the preceding sentence, such transferred 
     property shall include all right, title, and interest in--
       ``(i) direct or indirect subsidiaries of the Association 
     (excluding special purpose funding companies in existence on 
     the date of enactment of this section and any interest in any 
     government-sponsored enterprise);
       ``(ii) contracts, leases, and other agreements of the 
     Association;
       ``(iii) licenses and other intellectual property of the 
     Association; and
       ``(iv) any other property of the Association.
       ``(B) Construction.--Nothing in this paragraph shall be 
     construed to prohibit the Association from transferring 
     remaining property from time to time to the Holding Company 
     or any subsidiary of the Holding Company, subject to the 
     provisions of paragraph (4).
       ``(3) Transfer of personnel.--On the reorganization 
     effective date, employees of the Association shall become 
     employees of the Holding Company (or any subsidiary of the 
     Holding Company), and the Holding Company (or any subsidiary 
     of the Holding Company) shall provide all necessary and 
     appropriate management and operational support (including 
     loan servicing) to the Association, as requested by the 
     Association. The Association, however, may obtain such 
     management and operational support from persons or entities 
     not associated with the Holding Company.
       ``(4) Dividends.--The Association may pay dividends in the 
     form of cash or noncash distributions so long as at the time 
     of the declaration of such dividends, after giving effect to 
     the payment of such dividends as of the date of such 
     declaration by the Board of Directors of the Association, the 
     Association's capital would be in compliance with the capital 
     standards and requirements set forth in section 439(r). If, 
     at any time after the reorganization effective date, the 
     Association fails to comply with such capital standards, the 
     Holding Company shall transfer to the Association additional 
     capital in such amounts as are necessary to ensure that the 
     Association again complies with the capital standards.
       ``(5) Certification prior to dividend.--Prior to any such 
     distribution, the Association shall certify to the Secretary 
     of the Treasury that the payment of the dividend will be made 
     in compliance with this paragraph and shall provide copies of 
     all calculations needed to make such certification.
       ``(6) Restrictions on new business activity or acquisition 
     of assets by association.--
       ``(A) In general.--After the reorganization effective date, 
     the Association shall not engage in any new business 
     activities or acquire any additional program assets described 
     in section 439(d) other than in connection with--
       ``(i) student loan purchases through September 30, 2007;
       ``(ii) contractual commitments for future warehousing 
     advances, or pursuant to letters of credit or standby bond 
     purchase agreements, which are outstanding as of the 
     reorganization effective date;
       ``(iii) the Association serving as a lender-of-last-resort 
     pursuant to section 439(q); and
       ``(iv) the Association's purchase of loans insured under 
     this part, if the Secretary, with the approval of the 
     Secretary of the Treasury, enters into an agreement with the 
     Association for the continuation or resumption of the 
     Association's secondary market purchase program because the 
     Secretary determines there is inadequate liquidity for loans 
     made under this part.
       ``(B) Agreement.--The Secretary is authorized to enter into 
     an agreement described in clause (iii) of subparagraph (A) 
     with the Association covering such secondary market 
     activities. Any agreement entered into under such clause 
     shall cover a period of 12 months, but may be renewed if the 
     Secretary determines that liquidity remains inadequate. The 
     fee provided under section 439(h)(7) shall not apply to loans 
     acquired under any such agreement with the Secretary.
       ``(7) Issuance of debt obligations during the transition 
     period; attributes of debt obligations.--After the 
     reorganization effective date, the Association shall not 
     issue debt obligations which mature later than September 30, 
     2008, except in connection with serving as a lender-of-last-
     resort pursuant to section 439(q) or with purchasing loans 
     under an agreement with the Secretary as described in 
     paragraph (6). Nothing in this section shall modify the 
     attributes accorded the debt obligations of the Association 
     by section 439, regardless of whether such debt obligations 
     are incurred prior to, or at any time following, the 
     reorganization effective date or are transferred to a trust 
     in accordance with subsection (d).
       ``(8) Monitoring of safety and soundness.--
       ``(A) Obligation to obtain, maintain, and report 
     information.--The Association shall obtain such information 
     and make and keep such records as the Secretary of the 
     Treasury may from time to time prescribe concerning--
       ``(i) the financial risk to the Association resulting from 
     the activities of any associated person, to the extent such 
     activities are reasonably likely to have a material impact on 
     the financial condition of the Association, including the 
     Association's capital ratio, the Association's liquidity, or 
     the Association's ability to conduct and finance the 
     Association's operations; and
       ``(ii) the Association's policies, procedures, and systems 
     for monitoring and controlling any such financial risk.
       ``(B) Summary reports.--The Secretary of the Treasury may 
     require summary reports of the information described in 
     subparagraph (A) to be filed no more frequently than 
     quarterly. If, as a result of adverse market conditions or 
     based on reports provided pursuant to this subparagraph or 
     other available information, the Secretary of the Treasury 
     has concerns regarding the financial or operational condition 
     of the Association, the Secretary of the Treasury may, 
     notwithstanding the preceding sentence and subparagraph (A), 
     require the Association to make reports concerning the 
     activities of any associated person whose business activities 
     are reasonably likely to have a material impact on the 
     financial or operational condition of the Association.
       ``(C) Separate operation of corporations.--

[[Page H8420]]

       ``(i) In general.--The funds and assets of the Association 
     shall at all times be maintained separately from the funds 
     and assets of the Holding Company or any subsidiary of the 
     Holding Company and may be used by the Association solely to 
     carry out the Association's purposes and to fulfill the 
     Association's obligations.
       ``(ii) Books and records.--The Association shall maintain 
     books and records that clearly reflect the assets and 
     liabilities of the Association, separate from the assets and 
     liabilities of the Holding Company or any subsidiary of the 
     Holding Company.
       ``(iii) Corporate office.--The Association shall maintain a 
     corporate office that is physically separate from any office 
     of the Holding Company or any subsidiary of the Holding 
     Company.
       ``(iv) Director.--No director of the Association who is 
     appointed by the President pursuant to section 439(c)(1)(A) 
     may serve as a director of the Holding Company.
       ``(v) One officer requirement.--At least one officer of the 
     Association shall be an officer solely of the Association.
       ``(vi) Transactions.--Transactions between the Association 
     and the Holding Company or any subsidiary of the Holding 
     Company, including any loan servicing arrangements, shall be 
     on terms no less favorable to the Association than the 
     Association could obtain from an unrelated third party 
     offering comparable services.
       ``(vii) Credit prohibition.--The Association shall not 
     extend credit to the Holding Company or any subsidiary of the 
     Holding Company nor guarantee or provide any credit 
     enhancement to any debt obligations of the Holding Company or 
     any subsidiary of the Holding Company.
       ``(viii) Amounts collected.--Any amounts collected on 
     behalf of the Association by the Holding Company or any 
     subsidiary of the Holding Company with respect to the assets 
     of the Association, pursuant to a servicing contract or other 
     arrangement between the Association and the Holding Company 
     or any subsidiary of the Holding Company, shall be collected 
     solely for the benefit of the Association and shall be 
     immediately deposited by the Holding Company or such 
     subsidiary to an account under the sole control of the 
     Association.
       ``(D) Encumbrance of assets.--Notwithstanding any Federal 
     or State law, rule, or regulation, or legal or equitable 
     principle, doctrine, or theory to the contrary, under no 
     circumstances shall the assets of the Association be 
     available or used to pay claims or debts of or incurred by 
     the Holding Company. Nothing in this subparagraph shall be 
     construed to limit the right of the Association to pay 
     dividends not otherwise prohibited under this subparagraph or 
     to limit any liability of the Holding Company explicitly 
     provided for in this section.
       ``(E) Holding company activities.--After the reorganization 
     effective date and prior to the dissolution date, all 
     business activities of the Holding Company shall be conducted 
     through subsidiaries of the Holding Company.
       ``(F) Confidentiality.--Any information provided by the 
     Association pursuant to this section shall be subject to the 
     same confidentiality obligations contained in section 
     439(r)(12).
       ``(G) Definition.--For purposes of this paragraph, the term 
     `associated person' means any person, other than a natural 
     person, who is directly or indirectly controlling, controlled 
     by, or under common control with, the Association.
       ``(9) Issuance of stock warrants.--On the reorganization 
     effective date, the Holding Company shall issue to the 
     Secretary of the Treasury a number of stock warrants that is 
     equal to one percent of the outstanding shares of the 
     Association, determined as of the last day of the fiscal 
     quarter preceding the date of enactment of this section, with 
     each stock warrant entitling the holder of the stock warrant 
     to purchase from the Holding Company one share of the 
     registered common stock of the Holding Company or the Holding 
     Company's successors or assigns, at any time on or before 
     September 30, 2008. The exercise price for such warrants 
     shall be an amount equal to the average closing price of the 
     common stock of the Association for the 20 business days 
     prior to the date of enactment of this section on the 
     exchange or market which is then the primary exchange or 
     market for the common stock of the Association. The number of 
     shares of Holding Company common stock subject to each 
     warrant and the exercise price of each warrant shall be 
     adjusted as necessary to reflect--
       ``(A) the conversion of Association common stock into 
     Holding Company common stock as part of the plan of 
     reorganization approved by the Association's shareholders; 
     and
       ``(B) any issuance or sale of stock (including issuance or 
     sale of treasury stock), stock split, recapitalization, 
     reorganization, or other corporate event, if agreed to by the 
     Secretary of the Treasury and the Association.
       ``(10) Restrictions on transfer of association shares and 
     bankruptcy of association.--After the reorganization 
     effective date, the Holding Company shall not sell, pledge, 
     or otherwise transfer the outstanding shares of the 
     Association, or agree to or cause the liquidation of the 
     Association or cause the Association to file a petition for 
     bankruptcy under title 11, United States Code, without prior 
     approval of the Secretary of the Treasury and the Secretary 
     of Education.
       ``(d) Termination of the Association.--In the event the 
     shareholders of the Association approve a plan of 
     reorganization under subsection (b), the Association shall 
     dissolve, and the Association's separate existence shall 
     terminate on September 30, 2008, after discharge of all 
     outstanding debt obligations and liquidation pursuant to this 
     subsection. The Association may dissolve pursuant to this 
     subsection prior to such date by notifying the Secretary of 
     Education and the Secretary of the Treasury of the 
     Association's intention to dissolve, unless within 60 days 
     after receipt of such notice the Secretary of Education 
     notifies the Association that the Association continues to be 
     needed to serve as a lender of last resort pursuant to 
     section 439(q) or continues to be needed to purchase loans 
     under an agreement with the Secretary described in paragraph 
     (6). On the dissolution date, the Association shall take the 
     following actions:
       ``(1) Establishment of a trust.--The Association shall, 
     under the terms of an irrevocable trust agreement that is in 
     form and substance satisfactory to the Secretary of the 
     Treasury, the Association and the appointed trustee, 
     irrevocably transfer all remaining obligations of the 
     Association to the trust and irrevocably deposit or cause to 
     be deposited into such trust, to be held as trust funds 
     solely for the benefit of holders of the remaining 
     obligations, money or direct noncallable obligations of the 
     United States or any agency thereof for which payment the 
     full faith and credit of the United States is pledged, 
     maturing as to principal and interest in such amounts and at 
     such times as are determined by the Secretary of the Treasury 
     to be sufficient, without consideration of any significant 
     reinvestment of such interest, to pay the principal of, and 
     interest on, the remaining obligations in accordance with 
     their terms. To the extent the Association cannot provide 
     money or qualifying obligations in the amount required, the 
     Holding Company shall be required to transfer money or 
     qualifying obligations to the trust in the amount necessary 
     to prevent any deficiency.
       ``(2) Use of trust assets.--All money, obligations, or 
     financial assets deposited into the trust pursuant to this 
     subsection shall be applied by the trustee to the payment of 
     the remaining obligations assumed by the trust.
       ``(3) Obligations not transferred to the trust.--The 
     Association shall make proper provision for all other 
     obligations of the Association not transferred to the trust, 
     including the repurchase or redemption, or the making of 
     proper provision for the repurchase or redemption, of any 
     preferred stock of the Association outstanding. Any 
     obligations of the Association which cannot be fully 
     satisfied shall become liabilities of the Holding Company as 
     of the date of dissolution.
       ``(4) Transfer of remaining assets.--After compliance with 
     paragraphs (1) and (3), any remaining assets of the trust 
     shall be transferred to the Holding Company or any subsidiary 
     of the Holding Company, as directed by the Holding Company.
       ``(e) Operation of the Holding Company.--In the event the 
     shareholders of the Association approve the plan of 
     reorganization under subsection (b), the following provisions 
     shall apply beginning on the reorganization effective date:
       ``(1) Holding company board of directors.--The number of 
     members and composition of the Board of Directors of the 
     Holding Company shall be determined as set forth in the 
     Holding Company's charter or like instrument (as amended from 
     time to time) or bylaws (as amended from time to time) and as 
     permitted under the laws of the jurisdiction of the Holding 
     Company's incorporation.
       ``(2) Holding company name.--The names of the Holding 
     Company and any subsidiary of the Holding Company (other than 
     the Association)--
       ``(A) may not contain the name `Student Loan Marketing 
     Association'; and
       ``(B) may contain, to the extent permitted by applicable 
     State or District of Columbia law, `Sallie Mae' or variations 
     thereof, or such other names as the Board of Directors of the 
     Association or the Holding Company deems appropriate.
       ``(3) Use of sallie mae name.--Subject to paragraph (2), 
     the Association may assign to the Holding Company, or any 
     subsidiary of the Holding Company, the `Sallie Mae' name as a 
     trademark and service mark, except that neither the Holding 
     Company nor any subsidiary of the Holding Company (other than 
     the Association or any subsidiary of the Association) may use 
     the `Sallie Mae' name on, or to identify the issuer of, any 
     debt obligation or other security offered or sold by the 
     Holding Company or any subsidiary of the Holding Company 
     (other than a debt obligation or other security issued to the 
     Holding Company or any subsidiary of the Holding Company). 
     The Association shall remit to the Secretary of the Treasury 
     $5,000,000 within 60 days of the reorganization effective 
     date as compensation for the right to assign such trademark 
     or service mark.
       ``(4) Disclosure required.--Until 3 years after the 
     dissolution date, the Holding Company, and any subsidiary of 
     the Holding Company (other than the Association), shall 
     prominently display--
       ``(A) in any document offering the Holding Company's 
     securities, a statement that the obligations of the Holding 
     Company and any subsidiary of the Holding Company are not 
     guaranteed by the full faith and credit of the United States; 
     and
       ``(B) in any advertisement or promotional materials which 
     use the `Sallie Mae' name or mark, a statement that neither 
     the Holding Company nor any subsidiary of the Holding Company 
     is a government-sponsored enterprise or instrumentality of 
     the United States.
       ``(f) Strict Construction.--Except as specifically set 
     forth in this section, nothing in this section shall be 
     construed to limit the authority of the Association as a 
     federally chartered corporation, or of the Holding Company as 
     a State or District of Columbia chartered corporation.
       ``(g) Right To Enforce.--The Secretary of Education or the 
     Secretary of the Treasury, as appropriate, may request that 
     the Attorney General bring an action in the United States 
     District Court for the District of Columbia for the 
     enforcement of any provision of this section, or may, under 
     the direction or control of the Attorney General, bring such 
     an action. Such court shall have jurisdiction and power to 
     order and require compliance with this section.

[[Page H8421]]

       ``(h) Deadline for Reorganization Effective Date.--This 
     section shall be of no further force and effect in the event 
     that the reorganization effective date does not occur on or 
     before 18 months after the date of enactment of this section.
       ``(i) Definitions.--For purposes of this section:
       ``(1) Association.--The term `Association' means the 
     Student Loan Marketing Association.
       ``(2) Dissolution date.--The term `dissolution date' means 
     September 30, 2008, or such earlier date as the Secretary of 
     Education permits the transfer of remaining obligations in 
     accordance with subsection (d).
       ``(3) Holding company.--The term `Holding Company' means 
     the new business corporation established pursuant to this 
     section by the Association under the laws of any State of the 
     United States or the District of Columbia for the purposes of 
     the reorganization and restructuring described in subsection 
     (a).
       ``(4) Remaining obligations.--The term `remaining 
     obligations' means the debt obligations of the Association 
     outstanding as of the dissolution date.
       ``(5) Remaining property.--The term `remaining property' 
     means the following assets and liabilities of the Association 
     which are outstanding as of the reorganization effective 
     date:
       ``(A) Debt obligations issued by the Association.
       ``(B) Contracts relating to interest rate, currency, or 
     commodity positions or protections.
       ``(C) Investment securities owned by the Association.
       ``(D) Any instruments, assets, or agreements described in 
     section 439(d) (including, without limitation, all student 
     loans and agreements relating to the purchase and sale of 
     student loans, forward purchase and lending commitments, 
     warehousing advances, academic facilities obligations, 
     letters of credit, standby bond purchase agreements, 
     liquidity agreements, and student loan revenue bonds or other 
     loans).
       ``(E) Except as specifically prohibited by this section or 
     section 439, any other nonmaterial assets or liabilities of 
     the Association which the Association's Board of Directors 
     determines to be necessary or appropriate to the 
     Association's operations.
       ``(6) Reorganization.--The term `reorganization' means the 
     restructuring event or events (including any merger event) 
     giving effect to the Holding Company structure described in 
     subsection (a).
       ``(7) Reorganization effective date.--The term 
     `reorganization effective date' means the effective date of 
     the reorganization as determined by the Board of Directors of 
     the Association, which shall not be earlier than the date 
     that shareholder approval is obtained pursuant to subsection 
     (b) and shall not be later than the date that is 18 months 
     after the date of enactment of this section.
       ``(8) Subsidiary.--The term `subsidiary' includes one or 
     more direct or indirect subsidiaries.''.
       (b) Technical Amendments.--
       (1) Eligible lender.--
       (A) Amendments to the higher education act.--
       (i) Definition of eligible lender.--Section 435(d)(1)(F) of 
     the Higher Education Act of 1965 (20 U.S.C. 1085(d)(1)(F)) is 
     amended by inserting after ``Student Loan Marketing 
     Association'' the following: ``or the Holding Company of the 
     Student Loan Marketing Association, including any subsidiary 
     of the Holding Company, created pursuant to section 440,''.
       (ii) Definition of eligible lender and federal 
     consolidation loans.--Sections 435(d)(1)(G) and 428C(a)(1)(A) 
     of such Act (20 U.S.C. 1085(d)(1)(G) and 1078-3(a)(1)(A)) are 
     each amended by inserting after ``Student Loan Marketing 
     Association'' the following: ``or the Holding Company of the 
     Student Loan Marketing Association, including any subsidiary 
     of the Holding Company, created pursuant to section 440''.
       (B) Effective date.--The amendments made by this paragraph 
     shall take effect on the reorganization effective date as 
     defined in section 440(h) of the Higher Education Act of 1965 
     (as added by subsection (a)).
       (2) Enforcement of safety and soundness requirements.--
     Section 439(r) of the Higher Education Act of 1965 (20 U.S.C. 
     1087-2(r)) is amended--
       (A) in the first sentence of paragraph (12), by inserting 
     ``or the Association's associated persons'' after ``by the 
     Association'';
       (B) by redesignating paragraph (13) as paragraph (15); and
       (C) by inserting after paragraph (12) the following new 
     paragraph:
       ``(13) Enforcement of safety and soundness requirements.--
     The Secretary of Education or the Secretary of the Treasury, 
     as appropriate, may request that the Attorney General bring 
     an action in the United States District Court for the 
     District of Columbia for the enforcement of any provision of 
     this section, or may, under the direction or control of the 
     Attorney General, bring such an action. Such court shall have 
     jurisdiction and power to order and require compliance with 
     this section.''.
       (3) Financial safety and soundness.--Section 439(r) of the 
     Higher Education Act of 1965 (20 U.S.C. 1087-2(r)) is further 
     amended--
       (A) in paragraph (1)--
       (i) by striking ``and'' at the end of subparagraph (A);
       (ii) by striking the period at the end of subparagraph (B) 
     and inserting ``; and''; and
       (iii) by adding at the end the following new subparagraph:
       ``(C)(i) financial statements of the Association within 45 
     days of the end of each fiscal quarter; and
       ``(ii) reports setting forth the calculation of the capital 
     ratio of the Association within 45 days of the end of each 
     fiscal quarter.'';
       (B) in paragraph (2)--
       (i) by striking clauses (i) and (ii) of subparagraph (A) 
     and inserting the following:
       ``(i) appoint auditors or examiners to conduct audits of 
     the Association from time to time to determine the condition 
     of the Association for the purpose of assessing the 
     Association's financial safety and soundness and to determine 
     whether the requirements of this section and section 440 are 
     being met; and
       ``(ii) obtain the services of such experts as the Secretary 
     of the Treasury determines necessary and appropriate, as 
     authorized by section 3109 of title 5, United States Code, to 
     assist in determining the condition of the Association for 
     the purpose of assessing the Association's financial safety 
     and soundness, and to determine whether the requirements of 
     this section and section 440 are being met.''; and
       (ii) by adding at the end the following new subparagraph:
       ``(D) Annual assessment.--
       ``(i) In general.--For each fiscal year beginning on or 
     after October 1, 1996, the Secretary of the Treasury may 
     establish and collect from the Association an assessment (or 
     assessments) in amounts sufficient to provide for reasonable 
     costs and expenses of carrying out the duties of the 
     Secretary of the Treasury under this section and section 440 
     during such fiscal year. In no event may the total amount so 
     assessed exceed, for any fiscal year, $800,000, adjusted for 
     each fiscal year ending after September 30, 1997, by the 
     ratio of the Consumer Price Index for All Urban Consumers 
     (issued by the Bureau of Labor Statistics) for the final 
     month of the fiscal year preceding the fiscal year for which 
     the assessment is made to the Consumer Price Index for All 
     Urban Consumers for September 1997.
       ``(ii) Deposit.--Amounts collected from assessments under 
     this subparagraph shall be deposited in an account within the 
     Treasury of the United States as designated by the Secretary 
     of the Treasury and shall remain available subject to amounts 
     specified in appropriations Acts to carry out the duties of 
     the Secretary of the Treasury under this subsection and 
     section 440.'';
       (C) in paragraph (11), by striking ``paragraphs (4) and 
     (6)(A)'' and inserting ``paragraphs (4), (6)(A), and (14)''; 
     and
       (D) by inserting after paragraph (13) (as added by 
     paragraph (2)(C)) the following new paragraph:
       ``(14) Actions by secretary.--
       ``(A) In general.--For any fiscal quarter ending after 
     January 1, 2000, the Association shall have a capital ratio 
     of at least 2.25 percent. The Secretary of the Treasury may, 
     whenever such capital ratio is not met, take any one or more 
     of the actions described in paragraph (7), except that--
       ``(i) the capital ratio to be restored pursuant to 
     paragraph (7)(D) shall be 2.25 percent; and
       ``(ii) if the relevant capital ratio is in excess of or 
     equal to 2 percent for such quarter, the Secretary of the 
     Treasury shall defer taking any of the actions set forth in 
     paragraph (7) until the next succeeding quarter and may then 
     proceed with any such action only if the capital ratio of the 
     Association remains below 2.25 percent.
       ``(B) Applicability.--The provisions of paragraphs (4), 
     (5), (6), (8), (9), (10), and (11) shall be of no further 
     application to the Association for any period after January 
     1, 2000.''.
       (4) Information required; dividends.--Section 439(r) of the 
     Higher Education Act of 1965 (20 U.S.C. 1087-2(r)) is further 
     amended--
       (A) by adding at the end of paragraph (2) (as amended in 
     paragraph (3)(B)(ii)) the following new subparagraph:
       ``(E) Obligation to obtain, maintain, and report 
     information.--
       ``(i) In general.--The Association shall obtain such 
     information and make and keep such records as the Secretary 
     of the Treasury may from time to time prescribe concerning--
       ``(I) the financial risk to the Association resulting from 
     the activities of any associated person, to the extent such 
     activities are reasonably likely to have a material impact on 
     the financial condition of the Association, including the 
     Association's capital ratio, the Association's liquidity, or 
     the Association's ability to conduct and finance the 
     Association's operations; and
       ``(II) the Association's policies, procedures, and systems 
     for monitoring and controlling any such financial risk.
       ``(ii) Summary reports.--The Secretary of the Treasury may 
     require summary reports of such information to be filed no 
     more frequently than quarterly. If, as a result of adverse 
     market conditions or based on reports provided pursuant to 
     this subparagraph or other available information, the 
     Secretary of the Treasury has concerns regarding the 
     financial or operational condition of the Association, the 
     Secretary of the Treasury may, notwithstanding the preceding 
     sentence and clause (i), require the Association to make 
     reports concerning the activities of any associated person, 
     whose business activities are reasonably likely to have a 
     material impact on the financial or operational condition of 
     the Association.
       ``(iii) Definition.--For purposes of this subparagraph, the 
     term `associated person' means any person, other than a 
     natural person, directly or indirectly controlling, 
     controlled by, or under common control with the 
     Association.''; and
       (B) by adding at the end the following new paragraph:
       ``(16) Dividends.--The Association may pay dividends in the 
     form of cash or noncash distributions so long as at the time 
     of the declaration of such dividends, after giving effect to 
     the payment of such dividends as of the date of such 
     declaration by the Board of Directors of the Association, the 
     Association's capital would be in compliance with the capital 
     standards set forth in this section.''.

[[Page H8422]]

       (c) Sunset of the Association's Charter if No 
     Reorganization Plan Occurs.--Section 439 of the Higher 
     Education Act of 1965 (20 U.S.C. 1087-2) is amended by adding 
     at the end the following new subsections:
       ``(s) Charter Sunset.--
       ``(1) Application of provisions.--This subsection applies 
     beginning 18 months and one day after the date of enactment 
     of this subsection if no reorganization of the Association 
     occurs in accordance with the provisions of section 440.
       ``(2) Sunset plan.--
       ``(A) Plan submission by the association.--Not later than 
     July 1, 2007, the Association shall submit to the Secretary 
     of the Treasury and to the Chairman and Ranking Member of the 
     Committee on Labor and Human Resources of the Senate and the 
     Chairman and Ranking Member of the Committee on Economic and 
     Educational Opportunities of the House of Representatives, a 
     detailed plan for the orderly winding up, by July 1, 2013, of 
     business activities conducted pursuant to the charter set 
     forth in this section. Such plan shall--
       ``(i) ensure that the Association will have adequate assets 
     to transfer to a trust, as provided in this subsection, to 
     ensure full payment of remaining obligations of the 
     Association in accordance with the terms of such obligations;
       ``(ii) provide that all assets not used to pay liabilities 
     shall be distributed to shareholders as provided in this 
     subsection; and
       ``(iii) provide that the operations of the Association 
     shall remain separate and distinct from that of any entity to 
     which the assets of the Association are transferred.
       ``(B) Amendment of the plan by the association.--The 
     Association shall from time to time amend such plan to 
     reflect changed circumstances, and submit such amendments to 
     the Secretary of the Treasury and to the Chairman and Ranking 
     Minority Member of the Committee on Labor and Human Resources 
     of the Senate and Chairman and Ranking Minority Member of the 
     Committee on Economic and Educational Opportunities of the 
     House of Representatives. In no case may any amendment extend 
     the date for full implementation of the plan beyond the 
     dissolution date provided in paragraph (3).
       ``(C) Plan monitoring.--The Secretary shall monitor the 
     Association's compliance with the plan and shall continue to 
     review the plan (including any amendments thereto).
       ``(D) Amendment of the plan by the secretary of the 
     treasury.--The Secretary of the Treasury may require the 
     Association to amend the plan (including any amendments to 
     the plan), if the Secretary of the Treasury deems such 
     amendments necessary to ensure full payment of all 
     obligations of the Association.
       ``(E) Implementation by the association.--The Association 
     shall promptly implement the plan (including any amendments 
     to the plan, whether such amendments are made by the 
     Association or are required to be made by the Secretary of 
     the Treasury).
       ``(3) Dissolution of the association.--The Association 
     shall dissolve and the Association's separate existence shall 
     terminate on July 1, 2013, after discharge of all outstanding 
     debt obligations and liquidation pursuant to this subsection. 
     The Association may dissolve pursuant to this subsection 
     prior to such date by notifying the Secretary of Education 
     and the Secretary of the Treasury of the Association's 
     intention to dissolve, unless within 60 days of receipt of 
     such notice the Secretary of Education notifies the 
     Association that the Association continues to be needed to 
     serve as a lender of last resort pursuant to subsection (q) 
     or continues to be needed to purchase loans under an 
     agreement with the Secretary described in paragraph (4)(A). 
     On the dissolution date, the Association shall take the 
     following actions:
       ``(A) Establishment of a trust.--The Association shall, 
     under the terms of an irrevocable trust agreement in form and 
     substance satisfactory to the Secretary of the Treasury, the 
     Association, and the appointed trustee, irrevocably transfer 
     all remaining obligations of the Association to a trust and 
     irrevocably deposit or cause to be deposited into such trust, 
     to be held as trust funds solely for the benefit of holders 
     of the remaining obligations, money or direct noncallable 
     obligations of the United States or any agency thereof for 
     which payment the full faith and credit of the United States 
     is pledged, maturing as to principal and interest in such 
     amounts and at such times as are determined by the Secretary 
     of the Treasury to be sufficient, without consideration of 
     any significant reinvestment of such interest to pay the 
     principal of, and interest on, the remaining obligations in 
     accordance with their terms.
       ``(B) Use of trust assets.--All money, obligations, or 
     financial assets deposited into the trust pursuant to this 
     subsection shall be applied by the trustee to the payment of 
     the remaining obligations assumed by the trust. Upon the 
     fulfillment of the trustee's duties under the trust, any 
     remaining assets of the trust shall be transferred to the 
     persons who, at the time of the dissolution, were the 
     shareholders of the Association, or to the legal successors 
     or assigns of such persons.
       ``(C) Obligations not transferred to the trust.--The 
     Association shall make proper provision for all other 
     obligations of the Association, including the repurchase or 
     redemption, or the making of proper provision for the 
     repurchase or redemption, of any preferred stock of the 
     Association outstanding.
       ``(D) Transfer of remaining assets.--After compliance with 
     subparagraphs (A) and (C), the Association shall transfer to 
     the shareholders of the Association any remaining assets of 
     the Association.
       ``(4) Restrictions relating to winding up.--
       ``(A) Restrictions on new business activity or acquisition 
     of assets by the association.--
       ``(i) In general.--Beginning on July 1, 2009, the 
     Association shall not engage in any new business activities 
     or acquire any additional program assets (including acquiring 
     assets pursuant to contractual commitments) described in 
     subsection (d) other than in connection with the 
     Association--

       ``(I) serving as a lender of last resort pursuant to 
     subsection (q); and
       ``(II) purchasing loans insured under this part, if the 
     Secretary, with the approval of the Secretary of the 
     Treasury, enters into an agreement with the Association for 
     the continuation or resumption of the Association's secondary 
     market purchase program because the Secretary determines 
     there is inadequate liquidity for loans made under this part.

       ``(ii) Agreement.--The Secretary is authorized to enter 
     into an agreement described in subclause (II) of clause (i) 
     with the Association covering such secondary market 
     activities. Any agreement entered into under such subclause 
     shall cover a period of 12 months, but may be renewed if the 
     Secretary determines that liquidity remains inadequate. The 
     fee provided under subsection (h)(7) shall not apply to loans 
     acquired under any such agreement with the Secretary.
       ``(B) Issuance of debt obligations during the wind up 
     period; attributes of debt obligations.--The Association 
     shall not issue debt obligations which mature later than July 
     1, 2013, except in connection with serving as a lender of 
     last resort pursuant to subsection (q) or with purchasing 
     loans under an agreement with the Secretary as described in 
     subparagraph (A). Nothing in this subsection shall modify the 
     attributes accorded the debt obligations of the Association 
     by this section, regardless of whether such debt obligations 
     are transferred to a trust in accordance with paragraph (3).
       ``(C) Use of association name.--The Association may not 
     transfer or permit the use of the name `Student Loan 
     Marketing Association', `Sallie Mae', or any variation 
     thereof, to or by any entity other than a subsidiary of the 
     Association.''.
       (d) Repeals.--
       (1) In general.--Sections 439 of the Higher Education Act 
     of 1965 (20 U.S.C. 1087-2) and 440 of such Act (as added by 
     subsection (a) of this section) are repealed.
       (2) Effective date.--The repeals made by paragraph (1) 
     shall be effective one year after--
       (A) the dissolution date, as such term is defined in 
     section 440(i)(2) of the Higher Education Act of 1965 (as 
     added by subsection (a)), if a reorganization occurs in 
     accordance with section 440 of such Act; or
       (B) the date the Association is dissolved pursuant to 
     section 439(s) of such Act (as added by subsection (c)), if a 
     reorganization does not occur in accordance with section 440 
     of such Act.
       (e) Association Names.--Upon dissolution in accordance with 
     section 439 of the Higher Education Act of 1965 (20 U.S.C. 
     1087-2), the names ``Student Loan Marketing Association'', 
     ``Sallie Mae'', and any variations thereof may not be used by 
     any entity engaged in any business similar to the business 
     conducted pursuant to section 439 of such Act (as such 
     section was in effect on the date of enactment of this Act) 
     without the approval of the Secretary of the Treasury.

     SEC. 402. CONNIE LEE PRIVATIZATION.

       (a) Status of the Corporation and Corporate Powers; 
     Obligations Not Federally Guaranteed.--
       (1) Status of the corporation.--The Corporation shall not 
     be an agency, instrumentality, or establishment of the United 
     States Government, nor a Government corporation, nor a 
     Government controlled corporation, as such terms are defined 
     in section 103 of title 5, United States Code. No action 
     under section 1491 of title 28, United States Code (commonly 
     known as the Tucker Act) shall be allowable against the 
     United States based on the actions of the Corporation.
       (2) Corporate powers.--The Corporation shall be subject to 
     the provisions of this section, and, to the extent not 
     inconsistent with this section, to the District of Columbia 
     Business Corporation Act (or the comparable law of another 
     State, if applicable). The Corporation shall have the powers 
     conferred upon a corporation by the District of Columbia 
     Business Corporation Act (or such other applicable State law) 
     as from time to time in effect in order to conduct the 
     Corporation's affairs as a private, for-profit corporation 
     and to carry out the Corporation's purposes and activities 
     incidental thereto. The Corporation shall have the power to 
     enter into contracts, to execute instruments, to incur 
     liabilities, to provide products and services, and to do all 
     things as are necessary or incidental to the proper 
     management of the Corporation's affairs and the efficient 
     operation of a private, for-profit business.
       (3) Limitation on ownership of stock.--
       (A) Secretary of the treasury.--The Secretary of the 
     Treasury, in completing the sale of stock pursuant to 
     subsection (c), may not sell or issue the stock held by the 
     Secretary of Education to an agency, instrumentality, or 
     establishment of the United States Government, or to a 
     Government corporation or a Government controlled 
     corporation, as such terms are defined in section 103 of 
     title 5, United States Code, or to a government-sponsored 
     enterprise as such term is defined in section 622 of title 2, 
     United States Code.
       (B) Student loan marketing association.--The Student Loan 
     Marketing Association shall not increase its share of the 
     ownership of the Corporation in excess of 42 percent of the 
     shares of stock of the Corporation outstanding on the date of 
     enactment of this Act. The Student Loan

[[Page H8423]]

     Marketing Association shall not control the operation of the 
     Corporation, except that the Student Loan Marketing 
     Association may participate in the election of directors as a 
     shareholder, and may continue to exercise the Student Loan 
     Marketing Association's right to appoint directors under 
     section 754 of the Higher Education Act of 1965 (20 U.S.C. 
     1132f-3) as long as that section is in effect.
       (C) Prohibition.--Until such time as the Secretary of the 
     Treasury sells the stock of the Corporation owned by the 
     Secretary of Education pursuant to subsection (c), the 
     Student Loan Marketing Association shall not provide 
     financial support or guarantees to the Corporation.
       (D) Financial support or guarantees.--After the Secretary 
     of the Treasury sells the stock of the Corporation owned by 
     the Secretary of Education pursuant to subsection (c), the 
     Student Loan Marketing Association may provide financial 
     support or guarantees to the Corporation, if such support or 
     guarantees are subject to terms and conditions that are no 
     more advantageous to the Corporation than the terms and 
     conditions the Student Loan Marketing Association provides to 
     other entities, including, where applicable, other monoline 
     financial guaranty corporations in which the Student Loan 
     Marketing Association has no ownership interest.
       (4) No federal guarantee.--
       (A) Obligations insured by the corporation.--
       (i) Full faith and credit of the united states.--No 
     obligation that is insured, guaranteed, or otherwise backed 
     by the Corporation shall be deemed to be an obligation that 
     is guaranteed by the full faith and credit of the United 
     States.
       (ii) Student loan marketing association.--No obligation 
     that is insured, guaranteed, or otherwise backed by the 
     Corporation shall be deemed to be an obligation that is 
     guaranteed by the Student Loan Marketing Association.
       (iii) Special rule.--This paragraph shall not affect the 
     determination of whether such obligation is guaranteed for 
     purposes of Federal income taxes.
       (B) Securities offered by the corporation.--No debt or 
     equity securities of the Corporation shall be deemed to be 
     guaranteed by the full faith and credit of the United States.
       (5) Definition.--The term ``Corporation'' as used in this 
     section means the College Construction Loan Insurance 
     Association as in existence on the day before the date of 
     enactment of this Act, and any successor corporation.
       (b) Related Privatization Requirements.--
       (1) Notice requirements.--
       (A) In general.--During the six-year period following the 
     date of enactment of this Act, the Corporation shall include, 
     in each of the Corporation's contracts for the insurance, 
     guarantee, or reinsurance of obligations, and in each 
     document offering debt or equity securities of the 
     Corporation, a prominent statement providing notice that--
       (i) such obligations or such securities, as the case may 
     be, are not obligations of the United States, nor are such 
     obligations or such securities, as the case may be, 
     guaranteed in any way by the full faith and credit of the 
     United States; and
       (ii) the Corporation is not an instrumentality of the 
     United States.
       (B) Additional notice.--During the five-year period 
     following the sale of stock pursuant to subsection (c)(1), in 
     addition to the notice requirements in subparagraph (A), the 
     Corporation shall include, in each of the contracts and 
     documents referred to in such subparagraph, a prominent 
     statement providing notice that the United States is not an 
     investor in the Corporation.
       (2) Corporate charter.--The Corporation's charter shall be 
     amended as necessary and without delay to conform to the 
     requirements of this section.
       (3) Corporate name.--The name of the Corporation, or of any 
     direct or indirect subsidiary thereof, may not contain the 
     term ``College Construction Loan Insurance Association'', or 
     any substantially similar variation thereof.
       (4) Articles of incorporation.--The Corporation shall amend 
     the Corporation's articles of incorporation without delay to 
     reflect that one of the purposes of the Corporation shall be 
     to guarantee, insure, and reinsure bonds, leases, and other 
     evidences of debt of educational institutions, including 
     Historically Black Colleges and Universities and other 
     academic institutions which are ranked in the lower 
     investment grade category using a nationally recognized 
     credit rating system.
       (5) Requirements until stock sale.--Notwithstanding 
     subsection (d), the requirements of sections 754 and 760 of 
     the Higher Education Act of 1965 (20 U.S.C. 1132f-3 and 
     1132f-9), as such sections were in effect on the day before 
     the date of enactment of this Act, shall continue to be 
     effective until the day immediately following the date of 
     closing of the purchase of the Secretary of Education's stock 
     (or the date of closing of the final purchase, in the case of 
     multiple transactions) pursuant to subsection (c)(1) of this 
     Act.
       (c) Sale of Federally Owned Stock.--
       (1) Sale of stock required.--The Secretary of the Treasury 
     shall sell, pursuant to section 324 of title 31, United 
     States Code, the stock of the Corporation owned by the 
     Secretary of Education as soon as possible after the date of 
     enactment of this Act, but not later than six months after 
     such date.
       (2) Purchase by the corporation.--In the event that the 
     Secretary of the Treasury is unable to sell the stock, or any 
     portion thereof, at a price acceptable to the Secretary of 
     Education and the Secretary of the Treasury, the Corporation 
     shall purchase, within six months after the date of enactment 
     of this Act, such stock at a price determined by the 
     Secretary of the Treasury and acceptable to the Corporation 
     based on the independent appraisal of one or more nationally 
     recognized financial firms, except that such price shall not 
     exceed the value of the Secretary of Education's stock as 
     determined by the Congressional Budget Office in House Report 
     104-153, dated June 22, 1995.
       (3) Reimbursement of costs of sale.--The Secretary of the 
     Treasury shall be reimbursed from the proceeds of the sale of 
     the stock under this subsection for all reasonable costs 
     related to such sale, including all reasonable expenses 
     relating to one or more independent appraisals under this 
     subsection.
       (4) Assistance by the corporation.--The Corporation shall 
     provide such assistance as the Secretary of the Treasury and 
     the Secretary of Education may require to facilitate the sale 
     of the stock under this subsection.
       (d) Repeal of Statutory Restrictions and Related 
     Provisions.--Part D of title VII of the Higher Education Act 
     of 1965 (20 U.S.C. 1001 et seq.) is repealed.

     SEC. 403. ELIGIBLE INSTITUTION.

       (a) Amendments.--Section 481(b) of the Higher Education Act 
     of 1965 (20 U.S.C. 1088(b)) is amended by inserting after the 
     end of the first sentence the following new sentence: ``For 
     the purposes of determining whether an institution meets the 
     requirements of clause (6), the Secretary shall not consider 
     the financial information of any institution for a fiscal 
     year that began on or before April 30, 1994.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to any determination made on or after July 1, 
     1994, by the Secretary of Education pursuant to section 
     481(b)(6) of the Higher Education Act of 1965 (20 U.S.C. 
     1088(b)(6)).
               TITLE V--REPEALS AND CONFORMING AMENDMENTS

     SEC. 501. REPEALS.

       (a) General Immediate Repeals.--The following provisions 
     are repealed:
       (1) Section 204 of the Immigration Reform and Control Act 
     of 1986 (8 U.S.C. 1255a note).
       (2) Title II of Public Law 95-250 (92 Stat. 172).
       (3) The Library Services and Construction Act (20 U.S.C. 
     351 et seq.).
       (4) Part F of the Technology for Education Act of 1994 
     (contained in title III of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 7001 et seq.)).
       (5) The School Dropout Assistance Act (part C of title V of 
     the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     7261 et seq.)).
       (6) The Displaced Homemakers Self-Sufficiency Assistance 
     Act (29 U.S.C. 2301 et seq.).
       (7) Section 211 of the Appalachian Regional Development Act 
     of 1965 (40 U.S.C. App. 211).
       (8) Title VII of the Stewart B. McKinney Homeless 
     Assistance Act (42 U.S.C. 11421 et seq.), except subtitle B 
     and section 738 of such title (42 U.S.C. 11431 et seq. and 
     11448).
       (9) Section 201 of the National Literacy Act of 1991 (20 
     U.S.C. 1211-1).
       (10) Section 304 of the National Literacy Act of 1991 (20 
     U.S.C. 1213c note).
       (b) Immediate Repeal of Higher Education Act of 1965 
     Provisions.--The following provisions of the Higher Education 
     Act of 1965 (20 U.S.C. 1001 et seq.) are repealed:
       (1) Part B of title I (20 U.S.C. 1011 et seq.), relating to 
     articulation agreements.
       (2) Part C of title I (20 U.S.C. 1015 et seq.), relating to 
     access and equity to education for all Americans through 
     telecommunications.
       (3) Title II (20 U.S.C. 1021 et seq.), relating to academic 
     libraries and information services.
       (4) Chapter 3 of subpart 2 of part A of title IV (20 U.S.C. 
     1070a-31 et seq.), relating to presidential access 
     scholarships.
       (5) Chapter 4 of subpart 2 of part A of title IV (20 U.S.C. 
     1070a-41 et seq.), relating to model program community 
     partnerships and counseling grants.
       (6) Section 409B (20 U.S.C. 1070a-52), relating to an early 
     awareness information program.
       (7) Chapter 8 of subpart 2 of part A of title IV (20 U.S.C. 
     1070a-81), relating to technical assistance for teachers and 
     counselors.
       (8) Subpart 8 of part A of title IV (20 U.S.C. 1070f), 
     relating to special child care services for disadvantaged 
     college students.
       (9) Section 428J (20 U.S.C. 1078-10), relating to loan 
     forgiveness for teachers, individuals performing national 
     community service and nurses.
       (10) Section 486 (20 U.S.C. 1093), relating to training in 
     financial aid services.
       (11) Subpart 1 of part H of title IV (20 U.S.C. 1099a et 
     seq.) relating to State postsecondary review programs.
       (12) Part A of title V (20 U.S.C. 1102 et seq.), relating 
     to State and local programs for teacher excellence.
       (13) Part B of title V (20 U.S.C. 1103 et seq.), relating 
     to national teacher academies.
       (14) Subpart 1 of part C of title V (20 U.S.C. 1104 et 
     seq.), relating to Paul Douglas teacher scholarships.
       (15) Subpart 3 of part C of title V (20 U.S.C. 1106 et 
     seq.), relating to the teacher corps.
       (16) Subpart 3 of part D of title V (20 U.S.C. 1109 et 
     seq.), relating to class size demonstration grants.
       (17) Subpart 4 of part D of title V (20 U.S.C. 1110 et 
     seq.), relating to middle school teaching demonstration 
     programs.
       (18) Subpart 1 of part E of title V (20 U.S.C. 1111 et 
     seq.), relating to new teaching careers.
       (19) Subpart 1 of part F of title V (20 U.S.C. 1113), 
     relating to the national mini corps programs.
       (20) Section 586 (20 U.S.C. 1114), relating to 
     demonstration grants for critical language and area studies.
       (21) Section 587 (20 U.S.C. 1114a), relating to development 
     of foreign languages and cultures instructional materials.
       (22) Subpart 3 of part F of title V (20 U.S.C. 1115), 
     relating to small State teaching initiatives.

[[Page H8424]]

       (23) Subpart 4 of part F of title V (20 U.S.C. 1116), 
     relating to faculty development grants.
       (24) Section 597 and subsection (b) of section 599 (20 
     U.S.C. 1117a and 1117c), relating to early childhood staff 
     training and professional enhancement.
       (25) Section 605 (20 U.S.C. 1124a), relating to intensive 
     summer language institutes.
       (26) Section 607 (20 U.S.C. 1125a), relating to periodicals 
     and other research material published outside the United 
     States.
       (27) Part A of title VII (20 U.S.C. 1132b et seq.), 
     relating to improvement of academic and library facilities.
       (28) Title VIII (20 U.S.C. 1133 et seq.), relating to 
     cooperative education programs.
       (29) Part A of title IX (20 U.S.C. 1134a et seq.), relating 
     to grants to institutions and consortia to encourage women 
     and minority participation in graduate education.
       (30) Part B of title IX (20 U.S.C. 1134d et seq.), relating 
     to the Patricia Roberts Harris fellowship program.
       (31) Part E of title IX (20 U.S.C. 1134r et seq.), relating 
     to the faculty development fellowship program.
       (32) Part F of title IX (20 U.S.C. 1134s et seq.), relating 
     to assistance for training in the legal profession.
       (33) Subpart 2 of part B of title X (20 U.S.C. 1135c et 
     seq.), relating to science and engineering access programs.
       (34) Part C of title X (20 U.S.C. 1135e et seq.), relating 
     to women and minorities science and engineering outreach 
     demonstration programs.
       (35) Part D of title X (20 U.S.C. 1135f), relating to the 
     Dwight D. Eisenhower leadership program.
       (c) Immediate Repeal of Education Amendments of 1986 
     Provisions.--The following provisions of the Higher Education 
     Amendments of 1986 are repealed:
       (1) Part D of title XIII (20 U.S.C. 1029 note), relating to 
     library resources.
       (2) Part E of title XIII (20 U.S.C. 1221-1 note), relating 
     to a National Academy of Science study.
       (3) Part B of title XV (20 U.S.C. 4441 et seq.), relating 
     to Native Hawaiian and Alaska Native culture and art 
     development.
       (d) Immediate Repeal of Education Amendments of 1974 
     Provision.--Section 519 of the Education Amendments of 1974 
     (20 U.S.C. 1221i) is repealed.
       (e) Immediate Repeal of Education Amendments of 1992 
     Provisions.--The following provisions of the Higher Education 
     Amendments of 1992 are repealed:
       (1) Part F of title XIII (25 U.S.C. 3351 et seq.), relating 
     to American Indian postsecondary economic development 
     scholarships.
       (2) Part G of title XIII (25 U.S.C. 3371), relating to 
     American Indian teacher training.
       (3) Section 1406 (20 U.S.C. 1221e-1 note), relating to a 
     national survey of factors associated with participation.
       (4) Section 1409 (20 U.S.C. 1132a note), relating to a 
     study of environmental hazards in institutions of higher 
     education.
       (5) Section 1412 (20 U.S.C. 1101 note), relating to a 
     national job bank for teacher recruitment.
       (6) Part B of title XV (20 U.S.C. 1452 note), relating to a 
     national clearinghouse for postsecondary education materials.
       (7) Part C of title XV (20 U.S.C. 1101 note), relating to a 
     school-based decisionmakers demonstration program.
       (8) Part D of title XV (20 U.S.C. 1145h note), relating to 
     grants for sexual offenses education.
       (9) Part E of title XV (20 U.S.C. 1070 note), relating to 
     Olympic scholarships.
       (10) Part G of title XV (20 U.S.C. 1070a-11 note), relating 
     to advanced placement fee payment programs.
       (f) Subsequent Repeals.--The following provisions are 
     repealed:
       (1) The Carl D. Perkins Vocational and Applied Technology 
     Education Act (20 U.S.C. 2301 et seq.).
       (2) The Adult Education Act (20 U.S.C. 1201 et seq.).
       (3) The School-to-Work Opportunities Act of 1994 (20 U.S.C. 
     6101 et seq.).
       (4) The Job Training Partnership Act (29 U.S.C. 1501 et 
     seq.).

     SEC. 502. CONFORMING AMENDMENTS.

       (a) 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.
       (b) References to Title II of Public Law 95-250.--Section 
     103 of Public Law 95-250 (16 U.S.C. 79l) is amended--
       (1) by striking the second sentence of subsection (a); and
       (2) by striking the second sentence of subsection (b).
       (c) References to Library Services and Construction Act.--
       (1) Technology for education act of 1994.--The Technology 
     for Education Act of 1994 (20 U.S.C. 6801 et seq.) is amended 
     in section 3113(10) by striking ``section 3 of the Library 
     Services and Construction Act;'' and inserting ``section 4 of 
     the Workforce and Career Development Act of 1996;''.
       (2) Omnibus education reconciliation act of 1981.--Section 
     528 of the Omnibus Education Reconciliation Act of 1981 (20 
     U.S.C. 3489) is amended--
       (A) by striking paragraph (12); and
       (B) by redesignating paragraphs (13) through (15) as 
     paragraphs (12) through (14), respectively.
       (3) Elementary and secondary education act of 1965.--
     Section 3113(10) of the Elementary and Secondary Education 
     Act of 1965 (20 U.S.C. 6813(10)) is amended by striking 
     ``section 3 of the Library Services and Construction Act'' 
     and inserting ``section 213 of the Library Services and 
     Technology Act''.
       (4) Community improvement volunteer act of 1994.--Section 
     7305 of the Community Improvement Volunteer Act of 1994 (40 
     U.S.C. 276d-3) is amended--
       (A) by striking paragraph (1); and
       (B) by redesignating paragraphs (2) through (6) as 
     paragraphs (1) through (5), respectively.
       (5) Appalachian regional development act of 1965.--Section 
     214(c) of the Appalachian Regional Development Act of 1965 
     (40 U.S.C. App. 214(c)) is amended by striking ``Library 
     Services and Construction Act;''.
       (6) Demonstration cities and metropolitan development act 
     of 1966.--Section 208(2) of the Demonstration Cities and 
     Metropolitan Development Act of 1966 (42 U.S.C. 3338(2)) is 
     amended by striking ``title II of the Library Services and 
     Construction Act;''.
       (7) Public law 87-688.--Subsection (c) of the first section 
     of the Act entitled ``An Act to extend the application of 
     certain laws to American Samoa'', approved September 25, 1962 
     (48 U.S.C. 1666(c)) is amended by striking ``the Library 
     Services Act (70 Stat. 293; 20 U.S.C. 351 et seq.),''.
       (8) Communications act of 1934.--Paragraph (4) of section 
     254(h) of the Communications Act of 1934 (47 U.S.C. 
     254(h)(4)) is amended by striking ``library not eligible for 
     participation in State-based plans for funds under title III 
     of the Library Services and Construction Act (20 U.S.C. 335c 
     et seq.)'' and inserting ``library or library consortium not 
     eligible for assistance from a State library administrative 
     agency under the Library Services and Technology Act''.
       (d) Reference to School Dropout Assistance Act.--Section 
     441 of the General Education Provisions Act (42 U.S.C. 
     1232d), as amended by section 261(f) of the Improving 
     America's Schools Act of 1994, is further amended by striking 
     ``(subject to the provisions of part C of title V of the 
     Elementary and Secondary Education Act of 1965)''.
       (e) References to Title VII of the Stewart B. McKinney 
     Homeless Assistance Act.--
       (1) Table of contents.--The table of contents of the 
     Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 1142 
     et seq.) is amended by striking the items relating to title 
     VII of such Act, except subtitle B and section 738 of such 
     title.
       (2) Title 31, united states code.--Section 6703(a) of title 
     31, United States Code, is amended--
       (A) by striking paragraph (15); and
       (B) by redesignating paragraphs (16) through (19) as 
     paragraphs (15) through (18), respectively.
       (f) References to Institute of Museum Services.--
       (1) Title 5, united states code.--Section 5315 of title 5, 
     United States Code, is amended by striking the following:
       ``Director of the Institute of Museum Services.'' and 
     inserting the following:
       ``Director of the Institute of Museum and Library 
     Services.''.
       (2) Department of education organization act.--Section 301 
     of the Department of Education Organization Act (20 U.S.C. 
     3441) is amended--
       (A) in subsection (a)--
       (i) by striking paragraph (5); and
       (ii) by redesignating paragraphs (6) and (7) as paragraphs 
     (5) and (6), respectively; and
       (B) in subsection (b)--
       (i) by striking paragraph (4); and
       (ii) by redesignating paragraphs (5) through (7) as 
     paragraphs (4) through (6), respectively.
       (3) Elementary and secondary education act of 1965.--
       (A) Sections 2101(b), 2205(c)(1)(D), 2208(d)(1)(H)(v), and 
     2209(b)(1)(C)(vi), and subsections (d)(6) and (e)(2) of 
     section 10401 of the Elementary and Secondary Education Act 
     of 1965 (20 U.S.C. 6621(b), 6645(c)(1)(D), 6648(d)(1)(H)(v), 
     6649(b)(1)(C)(vi), and 8091 (d)(6) and (e)(2)) are amended by 
     striking ``the Institute of Museum Services'' and inserting 
     ``the Institute of Museum and Library Services''.
       (B) Section 10412(b) of such Act (20 U.S.C. 8102(b)) is 
     amended--
       (i) in paragraph (2), by striking ``the Director of the 
     Institute of Museum Services,'' and inserting ``the Director 
     of the Institute of Museum and Library Services,''; and
       (ii) in paragraph (7), by striking ``the Director of the 
     Institute of Museum Services,'' and inserting ``the Director 
     of the Institute of Museum and Library Services,''.
       (C) Section 10414(a)(2)(B) of such Act (20 U.S.C. 
     8104(a)(2)(B)) is amended by striking clause (iii) and 
     inserting the following new clause:
       ``(iii) the Institute of Museum and Library Services.''.
       (g) References to Office of Libraries and Learning 
     Resources.--Section 413(b)(1) of the Department of Education 
     Organization Act (20 U.S.C. 3473(b)(1)) is amended--
       (1) by striking subparagraph (H); and
       (2) by redesignating subparagraphs (I) through (M) as 
     subparagraphs (H) through (L), respectively.
       (h) References to State Postsecondary Review Entity 
     Programs.--The Higher Education Act of 1965 is amended--
       (1) in section 356(b)(2) (20 U.S.C. 10696(b)), by striking 
     ``II,'';
       (2) in section 453(c)(2) (20 U.S.C. 1087c(c)(2))--
       (A) by striking subparagraph (E); and
       (B) by redesignating subparagraphs (F) through (H) as 
     subparagraphs (E) through (G), respectively;
       (3) in section 487(a)(3) (20 U.S.C. 1094(a)(3)), by 
     striking subparagraph (B) and redesignating subparagraphs (C) 
     and (D) as subparagraphs (B) and (C), respectively;
       (4) in section 487(a)(15) (20 U.S.C. 1094(a)(15)), by 
     striking ``the Secretary of Veterans Affairs,

[[Page H8425]]

     and State review entities under subpart 1 of part H'' and 
     inserting ``and the Secretary of Veterans Affairs'';
       (5) in section 487(a)(21) (20 U.S.C. 1094(a)(21)), by 
     striking ``, State postsecondary review entities,'';
       (6) in section 487(c)(1)(A)(i) (20 U.S.C. 
     1094(c)(1)(A)(i)), by striking ``State agencies, and the 
     State review entities referred to in subpart 1 of part H'' 
     and inserting ``and State agencies'';
       (7) in section 487(c)(4) (20 U.S.C. 1094(c)(4)), by 
     striking ``, after consultation with each State review entity 
     designated under subpart 1 of part H,'';
       (8) in section 487(c)(5) (20 U.S.C. 1094(c)(5)), by 
     striking ``State review entities designated under subpart 1 
     of part H,'';
       (9) in section 496(a)(7) (20 U.S.C. 1099b(a)(7)), by 
     striking ``and the appropriate State postsecondary review 
     entity'';
       (10) in section 496(a)(8) (20 U.S.C. 1099b(a)(8)), by 
     striking ``and the State postsecondary review entity of the 
     State in which the institution of higher education is 
     located'';
       (11) in section 498(g)(2) (20 U.S.C. 1099c(g)(2)), by 
     striking everything after the first sentence;
       (12) in section 498A(a)(2)(D) (20 U.S.C. 1099c-1(a)(2)(D)), 
     by striking ``by the appropriate State postsecondary review 
     entity designated under subpart 1 of this part or'';
       (13) in section 498A(a)(2) (20 U.S.C. 1099c-1(a)(2))--
       (A) by inserting ``and'' after the semicolon at the end of 
     subparagraph (E);
       (B) by striking subparagraph (F); and
       (C) by redesignating subparagraph (G) as subparagraph (F); 
     and
       (14) in section 498A(a)(3) (20 U.S.C. 1099c-1(a)(3))--
       (A) by inserting ``and'' after the semicolon at the end of 
     subparagraph (C);
       (B) by striking ``; and'' at the end of subparagraph (D) 
     and inserting a period; and
       (C) by striking subparagraph (E).
       (i) References to Carl D. Perkins Vocational and Applied 
     Technology Education Act.--
       (1) Immigration and nationality act.--Section 245A(h)(4)(C) 
     of the Immigration and Nationality Act (8 U.S.C. 
     1255a(h)(4)(C)) is amended by striking ``Vocational Education 
     Act of 1963'' and inserting ``Workforce and Career 
     Development Act of 1996''.
       (2) National defense authorization act.--Section 4461 of 
     the National Defense Authorization Act for Fiscal Year 1993 
     (10 U.S.C. 1143 note) is amended--
       (A) by striking paragraph (4); and
       (B) by redesignating paragraphs (5) and (6) as paragraphs 
     (4) and (5), respectively.
       (3) Individuals with disabilities education act.--Section 
     626(g) of the Individuals with Disabilities Education Act (20 
     U.S.C. 1425(g)) is amended--
       (A) by striking ``1973,'' and inserting ``1973 and''; and
       (B) by striking ``, and the Carl D. Perkins Vocational and 
     Applied Technology Education Act''.
       (4) Elementary and secondary education act of 1965.--The 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6301 et seq.) is amended--
       (A) in section 1114(b)(2)(C)(v) (20 U.S.C. 
     6314(b)(2)(C)(v)), by striking ``Carl D. Perkins Vocational 
     and Applied Technology Education Act,'' and inserting 
     ``Workforce and Career Development Act of 1996'';
       (B) in section 9115(b)(5) (20 U.S.C. 7815(b)(5)), by 
     striking ``Carl D. Perkins Vocational and Applied Technology 
     Education Act'' and inserting ``Workforce and Career 
     Development Act of 1996'';
       (C) in section 14302(a)(2) (20 U.S.C. 8852(a)(2))--
       (i) by striking subparagraph (C); and
       (ii) by redesignating subparagraphs (D), (E), and (F) as 
     subparagraphs (C), (D), and (E), respectively; and
       (D) in the matter preceding subparagraph (A) of section 
     14307(a)(1) (20 U.S.C. 8857(a)(1)), by striking ``Carl D. 
     Perkins Vocational and Applied Technology Education Act'' and 
     inserting ``Workforce and Career Development Act of 1996''.
       (5) Equity in educational land-grant status act of 1994.--
     Section 533(c)(4)(A) of the Equity in Educational Land-Grant 
     Status Act of 1994 (7 U.S.C. 301 note) is amended by striking 
     ``(20 U.S.C. 2397h(3)'' and inserting ``, as such section was 
     in effect on the day preceding the date of enactment of the 
     Workforce and Career Development Act of 1996''.
       (6) Improving america's schools act of 1994.--Section 563 
     of the Improving America's Schools Act of 1994 (20 U.S.C. 
     6301 note) is amended by striking ``the date of enactment of 
     an Act reauthorizing the Carl D. Perkins Vocational and 
     Applied Technology Education Act (20 U.S.C. 2301 et seq.)'' 
     and inserting ``July 1, 1998''.
       (7) Internal revenue code of 1986.--Section 135(c)(3)(B) of 
     the Internal Revenue Code of 1986 (26 U.S.C. 135(c)(3)(B)) is 
     amended--
       (A) by striking ``subparagraph (C) or (D) of section 521(3) 
     of the Carl D. Perkins Vocational Education Act'' and 
     inserting ``subparagraph (C) or (D) of section 4(4) of the 
     Workforce and Career Development Act of 1996''; and
       (B) by striking ``any State (as defined in section 521(27) 
     of such Act)'' and inserting ``any State or outlying area (as 
     the terms `State' and `outlying area' are defined in section 
     4 of such Act)''.
       (8) Appalachian regional development act of 1965.--Section 
     214(c) of the Appalachian Regional Development Act of 1965 
     (40 U.S.C. App. 214(c)) (as amended by subsection (c)(5)) is 
     further amended by striking ``Carl D. Perkins Vocational 
     Education Act'' and inserting ``Workforce and Career 
     Development Act of 1996''.
       (9) Vocational education amendments of 1968.--Section 104 
     of the Vocational Education Amendments of 1968 (82 Stat. 
     1091) is amended by striking ``section 3 of the Carl D. 
     Perkins Vocational Education Act'' and inserting ``the 
     Workforce and Career Development Act of 1996''.
       (10) Older americans act of 1965.--The Older Americans Act 
     of 1965 (42 U.S.C. 3001 et seq.) is amended--
       (A) in section 502(b)(1)(N)(i) (42 U.S.C. 
     3056(b)(1)(N)(i)), by striking ``or the Carl D. Perkins 
     Vocational and Applied Technology Education Act (20 U.S.C. 
     2301 et seq.)''; and
       (B) in section 505(d)(2) (42 U.S.C. 3056c(d)(2))--
       (i) by striking ``the Secretary of Education'' and 
     inserting ``the Secretaries (as defined in section 4 of the 
     Workforce and Career Development Act of 1996)'';
       (ii) by striking ``employment and training programs'' and 
     inserting ``workforce and career 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 and Career Development Act of 
     1996''.
       (j) References to Adult Education Act.--
       (1) Refugee education assistance act.--Subsection (b) of 
     section 402 of the Refugee Education Assistance Act of 1980 
     (8 U.S.C. 1522 note) is repealed.
       (2) Elementary and secondary education act of 1965.--
       (A) Section 1202 of esea.--Section 1202(c)(1) of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6362(c)(1)) is amended by striking ``Adult Education Act'' 
     and inserting ``Workforce and Career Development Act of 
     1996''.
       (B) Section 1205 of esea.--Section 1205(8)(B) of such Act 
     (20 U.S.C. 6365(8)(B)) is amended by striking ``Adult 
     Education Act'' and inserting ``Workforce and Career 
     Development Act of 1996''.
       (C) Section 1206 of esea.--Section 1206(a)(1)(A) of such 
     Act (20 U.S.C. 6366(a)(1)(A)) is amended by striking ``an 
     adult basic education program under the Adult Education Act'' 
     and inserting ``adult education and literacy activities under 
     the Workforce and Career Development Act of 1996''.
       (D) Section 3113 of esea.--Section 3113(1) of such Act (20 
     U.S.C. 6813(1)) is amended by striking ``section 312 of the 
     Adult Education Act'' and inserting ``section 4 of the 
     Workforce and Career Development Act of 1996''.
       (E) Section 9161 of esea.--Section 9161(2) of such Act (20 
     U.S.C. 7881(2)) is amended by striking ``section 312(2) of 
     the Adult Education Act'' and inserting ``section 4 of the 
     Workforce and Career Development Act of 1996''.
       (3) Older americans act of 1965.--Section 203(b)(8) of the 
     Older Americans Act of 1965 (42 U.S.C. 3013(b)(8)) is amended 
     by striking ``Adult Education Act'' and inserting ``Workforce 
     and Career Development Act of 1996''.
       (k) References to School-to-Work Opportunities Act of 
     1994.--
       (1) Section 1114 of esea.--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 subsection (i)(4)(A)) is 
     further amended by striking ``the School-to-Work 
     Opportunities Act of 1994,''.
       (2) Section 5204 of esea.--Section 5204 of such Act (20 
     U.S.C. 7234) is amended--
       (A) by striking paragraph (4); and
       (B) by redesignating paragraphs (5) through (7) as 
     paragraphs (4) through (6), respectively.
       (3) Section 9115 of esea.--Section 9115(b)(5) of such Act 
     (20 U.S.C. 7815(b)(5)) (as amended in subsection (i)(4)(B)) 
     is further amended by striking ``the School-to-Work 
     Opportunities Act of 1994 and''.
       (4) Section 14302 of esea.--Section 14302(a)(2) of such Act 
     (20 U.S.C. 8852(a)(2)) (as amended in subsection (i)(4)(C)) 
     is further amended--
       (A) in subparagraph (C) (as redesignated in such 
     subsection), by striking the semicolon and inserting ``; 
     and'';
       (B) by striking subparagraph (D) (as redesignated in such 
     subsection); and
       (C) by redesignating subparagraph (E) (as redesignated in 
     such subsection) as subparagraph (D).
       (5) Section 14307 of esea.--Section 14307(a)(1) of such Act 
     (20 U.S.C. 8857(a)(1)) (as amended in subsection (i)(4)(D)) 
     is further amended by striking ``, the School-to-Work 
     Opportunities Act of 1994,''.
       (6) Section 14701 of esea.--Section 14701(b)(1) of such Act 
     (20 U.S.C. 8941(b)(1)) is amended--
       (A) 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
       (B) in subparagraph (C)(ii), by striking ``, the School-to-
     Work Opportunities Act of 1994,''.
       (l) References to Job Training Partnership Act.--
       (1) Title 5, united states code.--Section 3502(d) of title 
     5, United States Code, is amended--
       (A) 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 and career development activities under the 
     Workforce and Career Development Act of 1996''; and
       (B) in paragraph (4), in the second sentence, by striking 
     ``Secretary of Labor on matters relating to the Job Training 
     Partnership Act'' and inserting ``the Secretaries (as defined 
     in section 4 of the Workforce and Career Development Act of 
     1996) on matters relating to such Act''.
       (2) Food stamp act of 1977.--

[[Page H8426]]

       (A) Section 5.--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 and Career Development Act 
     of 1996''.
       (B) Section 6.--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 
     public employment offices and other State agencies and 
     providers providing employment and training activities under 
     the Workforce and Career Development Act of 1996''; and
       (ii) in subsection (e)(3), by striking subparagraph (A) and 
     inserting the following:
       ``(A) a program relating to employment and training 
     activities carried out under the Workforce and Career 
     Development Act of 1996;''.
       (C) Section 17.--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 employment 
     and training activities through a program carried out under 
     the Workforce and Career Development Act of 1996,''; 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.''.
       (3) Immigration and nationality act.--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 and Career 
     Development Act of 1996.''.
       (4) Refugee education assistance act of 1980.--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 and Career Development Act of 1996''.
       (5) National defense authorization act for fiscal year 
     1993.--
       (A) Section 3161.--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 by the Secretaries (as defined 
     in section 4 of the Workforce and Career Development Act of 
     1996) under such Act;''.
       (B) Section 4461.--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 and 
     Career Development Act of 1996.''.
       (C) Section 4471.--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 employment and training activities carried out 
     under the Workforce and Career Development Act of 1996, 
     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 and Career Development Act of 
     1996 providing employment and training activities''; and

       (II) in paragraph (4), by striking ``for training,'' and 
     all that follows through ``beginning'' and inserting ``to 
     participate in employment and training activities under the 
     Workforce and Career Development Act of 1996 beginning''.

       (D) Section 4492.--Section 4492(b) 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'' 
     and inserting ``the Workforce and Career Development Act of 
     1996''.
       (6) National defense authorization act for fiscal year 
     1991.--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 the enactment of 
     the Workforce and Career Development Act of 1996''.
       (7) National defense authorization act for fiscal year 
     1994.--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 workforce 
     development boards established under section 108 of the 
     Workforce and Career Development Act of 1996.''.
       (8) Small business act.--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 and Career Development Act of 1996''.
       (9) Employment act of 1946.--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''.
       (10) Full employment and balanced growth act of 1978.--
       (A) Section 206.--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 and Career Development 
     Act of 1996''; and
       (II) in paragraph (1), by striking ``(including use of 
     section 110 of CETA when necessary)''; and

       (ii) in subsection (c)(1), by striking ``CETA'' and 
     inserting ``activities carried out under the Workforce and 
     Career Development Act of 1996''.
       (B) Section 401.--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)),''.
       (11) Title 18, united states code.--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 and Career Development Act of 
     1996''.
       (12) Trade act of 1974.--Section 239(e) of the Trade Act of 
     1974 (19 U.S.C. 2311(e)) is amended by striking ``under title 
     III of the Job Training Partnership Act'' and inserting 
     ``made available under the Workforce and Career Development 
     Act of 1996''.
       (13) Higher education act.--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 employment and training activities 
     under the Workforce and Career Development Act of 1996''.
       (14) Individuals with disabilities education act.--Section 
     626 of the Individuals with Disabilities Education Act (20 
     U.S.C. 1425) is amended--
       (A) 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 the individuals and entities participating in 
     the State collaborative process under subsection (a) or (b) 
     of section 105 of the Workforce and Career Development Act of 
     1996 and local workforce development boards established under 
     section 108 of such Act)'';
       (B) 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 
     workforce development boards established under section 108 of 
     the Workforce and Career Development Act of 1996,''; and
       (ii) in clauses (iii), (iv), (v), and (vii) of paragraph 
     (4)(B), by striking ``PICS authorized by the JTPA'' and 
     inserting ``local workforce development boards established 
     under section 108 of the Workforce and Career Development Act 
     of 1996''; and
       (C) in subsection (g) (as amended by subsection (i)(3)), by 
     striking ``the Job Training Partnership Act (JTPA)'' and 
     inserting ``the Workforce and Career Development Act of 
     1996''.
       (15) Department of education organization act.--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''.
       (16) National skill standards act of 1994.--
       (A) Section 504.--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''.
       (B) Section 508.--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 and career development activities, as 
     defined in section 4 of the Workforce and Career Development 
     Act of 1996.''.

[[Page H8427]]

       (17) Elementary and secondary education act of 1965.--
       (A) Section 1205.--Section 1205(8)(B) of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 6365(8)(B)) (as 
     amended by subsection (j)(2)(B)) 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''.
       (B) Section 1414.--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 ``activities under the 
     Workforce and Career Development Act of 1996,''.
       (C) Section 1423.--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 ``activities under the 
     Workforce and Career Development Act of 1996''.
       (D) Section 1425.--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 and Career Development Act of 
     1996,''.
       (18) Freedom support act.--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''.
       (19) Internal revenue code of 1986.--
       (A) Section 42.--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 and Career 
     Development Act of 1996 or under''.
       (B) Section 51.--Section 51(d) of the Internal Revenue Code 
     of 1986 is amended by striking paragraph (10).
       (C) Section 6334.--Section 6334(d)(12) of the Internal 
     Revenue Code of 1986 is amended to read as follows:
       ``(12) Assistance under the workforce and career 
     development act of 1996.--Any amount payable to a participant 
     in workforce and career development activities carried out 
     under the Workforce and Career Development Act of 1996 from 
     funds appropriated under such Act.''.
       (20) Emergency jobs and unemployment assistance act of 
     1974.--
       (A) Section 204.--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 local workforce development area 
     under the Workforce and Career Development Act of 1996.''.
       (B) Section 223.--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 and Career Development Act of 1996;''; 
     and
       (ii) in paragraph (4), by striking ``funds provided'' and 
     all that follows and inserting ``funds provided under the 
     Workforce and Career Development Act of 1996;''.
       (21) Rehabilitation act.--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 and Career Development Act of 1996''.
       (22) Job training reform amendments of 1992.--Section 701 
     of the Job Training Reform Amendments of 1992 (29 U.S.C. 1501 
     note) is repealed.
       (23) Public law 98-524.--Section 7 of Public Law 98-524 (29 
     U.S.C. 1551 note) is repealed.
       (24) Veterans' benefits and programs improvement act of 
     1988.--Section 402 of the Veterans' Benefits and Programs 
     Improvement Act of 1988 (29 U.S.C. 1721 note) is amended--
       (A) in subsection (a), by striking ``title III of the Job 
     Training Partnership Act (29 U.S.C. 1651 et seq.)'' and 
     inserting ``the Workforce and Career Development Act of 
     1996'';
       (B) in subsection (c), by striking ``Training, in 
     consultation with the office designated or created under 
     section 322(b) of the Job Training Partnership Act,'' and 
     inserting ``Training''; and
       (C) 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 ``Employment 
     and training activities under the Workforce and Career 
     Development Act of 1996.''.
       (25) Veterans' job training act.--
       (A) Section 13.--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 and Career Development Act of 1996''.
       (B) Section 14.--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 inserting 
     ``under the Workforce and Career Development Act of 1996''.
       (C) Section 15.--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 and Career Development 
     Act of 1996''; and
       (ii) in the third sentence, by striking ``title III of''.
       (26) Worker adjustment and retraining notification act.--
     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''.
       (27) Title 31, united states code.--Section 6703(a) of 
     title 31, United States Code, is amended by striking 
     paragraph (4) and inserting the following:
       ``(4) Activities under the Workforce and Career Development 
     Act of 1996.''.
       (28) Veterans' rehabilitation and education amendments of 
     1980.--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 and 
     Career Development Act of 1996,''.
       (29) Title 38, united states code.--
       (A) Section 4102a.--Section 4102A(d) of title 38, United 
     States Code, is amended by striking ``the Job Training 
     Partnership Act'' and inserting ``the Workforce and Career 
     Development Act of 1996''.
       (B) Section 4103a.--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.))''.
       (C) Section 4213.--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 employment and 
     training activity carried out under the Workforce and Career 
     Development Act of 1996,''.
       (30) United states housing act.--Section 23 of the United 
     States Housing Act of 1937 (42 U.S.C. 1437u) is amended--
       (A) in subsection (b)(2)(A), by striking ``the Job 
     Training'' and all that follows through ``or the'' and 
     inserting ``the Workforce and Career Development Act of 1996 
     or the'';
       (B) in the first sentence of subsection (f)(2), by striking 
     ``programs under the'' and all that follows through ``and 
     the'' and inserting ``activities under the Workforce and 
     Career Development Act of 1996 and the''; and
       (C) in subsection (g)--
       (i) in paragraph (2), by striking ``programs under the'' 
     and all that follows through ``and the'' and inserting 
     ``activities under the Workforce and Career Development Act 
     of 1996 and the''; and
       (ii) in paragraph (3)(H), by striking ``program under'' and 
     all that follows through ``and any other'' and inserting 
     ``activity under the Workforce and Career Development Act of 
     1996 and any other''.
       (31) Housing act of 1949.--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 and Career Development 
     Act of 1996 or the''.
       (32) Older americans act of 1965.--
       (A) Section 203.--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 and Career Development Act of 1996.''; and
       (ii) in subsection (b), by striking paragraph (1) and 
     inserting the following:
       ``(1) the Workforce and Career Development Act of 1996,''.
       (B) Section 502.--Section 502 of the Older Americans Act of 
     1965 (42 U.S.C. 3056) is amended--
       (i) in subsection (b)(1)(N)(i) (as amended by subsection 
     (i)(10)(A)), by striking ``the Job Training Partnership Act 
     (29 U.S.C. 1501 et seq.)'' and inserting ``the Workforce and 
     Career Development Act of 1996''; 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 ``employment and 
     training activities carried out under the Workforce and 
     Career Development Act of 1996''.
       (C) Section 503.--Section 503(b)(1) of the Older Americans 
     Act of 1965 (42 U.S.C. 3056a(b)(1)) is amended by striking 
     ``the Job Training Partnership Act,'' each place it appears 
     and inserting ``the Workforce and Career Development Act of 
     1996,''.
       (D) Section 510.--Section 510 of the Older Americans Act of 
     1965 (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 and Career Development Act of 
     1996, eligible individuals shall be deemed to satisfy the 
     requirements of such Act''.
       (33) Omnibus crime control and safe streets act of 1968.--
     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 subtitle C of title II of the Workforce and Career 
     Development Act of 1996''.
       (34) Environmental programs assistance act of 1984.--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 and Career Development Act 
     of 1996''.

[[Page H8428]]

       (35) Domestic volunteer service act of 1973.--
       (A) Section 103.--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 workforce 
     development board established under section 108 of the 
     Workforce and Career Development Act of 1996.''.
       (B) Section 109.--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 ``eligible providers 
     of training services, as defined in section 4 of the 
     Workforce and Career Development Act of 1996''.
       (36) Age discrimination act of 1975.--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 and Career Development Act of 
     1996''.
       (37) Energy conservation and production act.--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 and Career Development Act of 1996''.
       (38) National energy conservation policy act.--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 and Career Development 
     Act of 1996''.
       (39) Community economic development act of 1981.--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 ``employment and training 
     activities described in the Workforce and Career Development 
     Act of 1996''.
       (40) Stewart b. mckinney homeless assistance act.--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 and 
     Career Development Act of 1996''.
       (41) National and community service act of 1990.--
       (A) Section 177.--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.).''.
       (B) Section 198c.--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 4 of the 
     Workforce and Career Development Act of 1996).''.
       (C) Section 199l.--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 and 
     Career Development Act of 1996''.
       (42) Cranston-gonzalez national affordable housing act.--
       (A) Section 454.--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 and Career 
     Development Act of 1996''.
       (B) Section 456.--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 the enactment of the Workforce and 
     Career Development Act of 1996)'' after ``the Job Training 
     Partnership Act'' each place it appears.
       (43) Violent crime control and law enforcement act of 
     1994.--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 
     employment and training activities authorized under the 
     Workforce and Career Development Act of 1996''.

     SEC. 503. EFFECTIVE DATES.

       (a) Repeals.--
       (1) Immediate repeals.--The repeals made by subsections (a) 
     through (e) of section 501 shall take effect on the date of 
     the enactment of this Act.
       (2) Subsequent repeals.--The repeals made by section 501(f) 
     shall take effect on July 1, 1998.
       (b) Conforming Amendments.--
       (1) Immediately effective amendments.--The amendments made 
     by subsections (a) through (h) of section 502 shall take 
     effect on the date of the enactment of this Act.
       (2) Subsequently effective amendments.--The amendments made 
     by subsections (i) through (l) of section 502 shall take 
     effect on July 1, 1998.
       And the Senate agree to the same.
       That the House recede from its disagreement to the 
     amendment of the Senate to the title of the bill and agree to 
     the same with an amendment as follows:
       In lieu of the matter proposed to be inserted by the 
     amendment of the Senate to the title of the bill, insert the 
     following: ``An Act to consolidate Federal employment, 
     education, and job training programs and create statewide 
     workforce and career development systems, and for other 
     purposes.''.
       And the Senate agree to the same.

     Bill Goodling,
     Steve Gunderson,
     Randy ``Duke'' Cunningham,
     Howard P. ``Buck'' McKeon,
     Frank D. Riggs,
     Lindsey Graham,
     Mark Souder,
                                Managers on the Part of the House.

     Nancy Landon Kassebaum,
     Jim Jeffords,
     Dan Coats,
     Judd Gregg,
     Bill Frist,
     Mike DeWine,
     John Ashcroft,
     Spencer Abraham,
     Slade Gorton,
                               Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the Senate to the bill (H.R. 1617) to 
     consolidate and reform workforce development and literacy 
     programs, and for other purposes, submit the following joint 
     statement to the House and the Senate in explanation of the 
     effect of the action agreed upon by the managers and 
     recommended in the accompanying conference report:

                         Statement of Managers


                                general

     Short title
       1. The House bill is referred to as the CAREERS Act. The 
     Senate amendment is referred to as the Workforce Development 
     Act of 1995.
       The House recedes with an amendment naming the bill the 
     ``Workforce and Career Development Act of 1996''.
     Table of contents
       2. Both the House bill and the Senate amendment contain a 
     table of contents.
       Legislative counsel.
     Findings
       3. The Senate amendment provides findings on the failures 
     of the existing Federal job training system. The House bill 
     contains no findings, except those for title IV, Adult 
     Education and Literacy Programs. (See next Note.)
       The Senate recedes.
       3a. The House bill provides findings on the importance of 
     improving literacy.
       The House recedes.
     Purpose
       4. The House bill provides one purpose for the Act--to 
     transform existing programs into a more effective system. The 
     Senate amendment contains three purposes: (1) to create 
     statewide workforce development systems, (2) to improve 
     skills, and (3) to promote economic development.
       The Senate recedes with an amendment combining the purposes 
     of both bills.
       4a. The House bill contains additional purposes for the 
     youth development and career preparation, adult employment 
     and training, and adult education and literacy titles.
       The House recedes.
     Authorizations
       5. The House bill provides authorizations of (1) 
     $2,324,600,000 for the youth development grant, (2) 
     $2,183,000,000 for the adult training grant, and (3) 
     $280,000,000 for the adult education and literacy grant. The 
     Senate amendment provides for an authorization of 
     $5,884,000,000 for workforce development for fiscal year 1996 
     and 1997 (which includes funds made available under the 
     Wagner-Peyser Act). The Senate amendment also provides for an 
     authorization of $2,100,000,000 for Job Corps and at-risk 
     youth, and $500,000 for transition to the Federal 
     Partnership.
       The Senate recedes with an amendment authorizing ``such 
     sums'' for a single workforce and career development block 
     grant and ``such sums'' for Job Corps.
       5a. The House bill authorizes funds from fiscal year 1997-
     2002. The Senate amendment authorizes funds from fiscal year 
     1998-2001, except that for fiscal years 1996 and 1997, 
     $500,000 is authorized for the National Board.
       The Senate recedes with an amendment authorizing 
     appropriations beginning in fiscal year 1998 through fiscal 
     year 2002.
       6. Both the House bill and the Senate amendment provide for 
     program years beginning on July 1 each fiscal year.
       The House recedes.
       7. Both the House bill and the Senate amendment allow funds 
     obligated for any

[[Page H8429]]

     program year to be expended by the recipient during the 
     program year and 2 years thereafter. However, the House bill 
     requires the Secretary to reallot a portion of the unexpended 
     funds. Under the Senate amendment, no amount can be 
     deobligated if the rate of expenditure is consistent with the 
     State's plan.
       The House recedes with an amendment authorizing carryover 
     of funds for employment and training and at-risk youth 
     activities for up to two years.
     Definitions
       8. The House bill, but not the Senate amendment, includes a 
     definition of ``administration,'' which applies only to the 
     youth grant.
       The House recedes.
       9. Both the House bill and the Senate amendment definitions 
     of ``adult'' differ in the calculation of age and whether or 
     not an individual is required to be enrolled in a secondary 
     school. In addition, the Senate amendment's definition of 
     ``adult'' applies only to the definition of adult education 
     programs.
       The House and Senate recede.
       10. The House bill and the Senate amendment have similar 
     definitions of ``adult education,'' but the House bill 
     includes in the definition instruction for adults who are not 
     enrolled or not required to be enrolled in school and who 
     lack mastery of basic skills.
       The Senate recedes with an amendment combining the 
     definition of ``adult education'' in both bills.
       11. The House bill, but not the Senate amendment, includes 
     a definition of ``all aspects of the industry,'' which 
     applies only to the youth grant.
       The Senate recedes with an amendment to modify the 
     definition of ``all aspects of the industry''.
       12. The Senate amendment, but not the House bill, defines 
     ``appropriate Secretary'' to mean either the Secretary of 
     labor, the Secretary of Education, or both Secretaries acting 
     jointly.
       The House recedes.
       13. Both the House bill and the Senate amendment include 
     similar definitions of ``area vocational education school.'' 
     The Senate amendment includes technical institutions on 
     vocational schools, but only if the institute or school 
     admits both individuals who have finished secondary school 
     and who have left secondary school. The House bill requires 
     that the department or division of a junior college, 
     community college, or university operate under the policies 
     of the State board.
       The Senate recedes with an amendment replacing the 
     reference to ``State board'' with ``eligibility agency''.
       14. The House bill, but not the Senate amendment, includes 
     a definition of ``articulation agreement,'' which applies 
     only to the youth grant.
       The House recedes.
       15. The House bill and the Senate amendment differ in the 
     definition of ``at-risk youth''. For example, the House bill 
     defines ``at-risk youth'' as including both out-of-school and 
     in-school youth. The Senate amendment defines ``at-risk 
     youth'' in terms of low income.
       The House recedes with an amendment defining ``at-risk 
     youth'' as an individual who is between the ages of 15 and 
     21, is low-income, and who has additional barriers to 
     education or employment.
       15a. The Senate amendment also defines ``at-risk youth'' 
     for the purposes of the Job Corps and at-risk youth title.
       The Senate recedes.
       16. The House bill, but not the Senate amendment, includes 
     a definition of ``career grant.''
       The Senate recedes with an amendment defining a ``career 
     grant'' as a voucher or credit used to purchase training 
     services.
       17. The House bill, but not the Senate amendment, includes 
     a definition of ``case management.''
       The House recedes.
       18. The House bill and the Senate amendment include similar 
     definitions of ``chief elected official,'' except that the 
     House bill refers to workforce development areas and the 
     Senate amendment refers to substate areas.
       The Senate recedes.
       19. The House bill and the Senate amendment include similar 
     definitions of ``community-based organization.'' However, the 
     Senate bill requires the organization to have demonstrated 
     effectiveness and to provide workforce development 
     activities. The House bill lists the activities.
       The House recedes with an amendment defining a ``community-
     based organization'' as a private, non-profit organization of 
     demonstrated effectiveness.
       While the Managers intend that providers under this system, 
     including community-based organizations, be of ``demonstrated 
     effectiveness,'' this is in no way intended to limit the 
     ability of new providers to participate in the delivery of 
     services under workforce and career preparation programs. 
     Such providers simply must be able to demonstrate that they 
     can provide services effectively.
       20. The House bill, but not the Senate amendment, includes 
     a definition of ``comprehensive career guidance and 
     counseling''.
       The Senate recedes with an amendment to modify the 
     definition of ``career guidance and counseling''.
       21. The House bill, but not the Senate amendment, includes 
     a definition of ``cooperative education,'' which applies only 
     to the youth grant.
       The Senate recedes.
       22. The House bill, but not the Senate amendment, includes 
     a definition of ``correctional education agency,'' which 
     applies only to the adult education and family literacy 
     grant.
       The House recedes.
       23. The House bill, but not the Senate amendment, includes 
     a definition of ``cooperative vocational education,'' which 
     applies only to the youth grant.
       The House recedes.
       24. The Senate amendment, but not the House bill, includes 
     a definition of ``covered activity,'' (programs repealed or 
     amended under this Act).
       The House recedes with technical and conforming amendments.
       25. The House bill, but not the Senate amendment, includes 
     a definition of ``curricula,'' which applies only to the 
     youth grant.
       The House recedes.
       26. The House bill, but not the Senate amendment, includes 
     a definition of ``demographic characteristics.''
       The House recedes.
       27. The House bill and the Senate amendment have similar 
     definitions of ``dislocated worker.'' However, the Senate 
     amendment includes in the definition a displaced homemaker 
     and an individual unemployed as a result of Federal action 
     limiting the use of marine natural resources.
       The Senate recedes with an amendment striking the reference 
     to older workers and inserting references to displaced 
     homemakers and individuals displaced because of Federal 
     action that limits the use of marine natural resources in the 
     definition of ``dislocated worker''.
       The Managers agree to strike the specific reference to 
     older workers in the definition because it was determined 
     that older workers who are dislocated from their jobs are 
     implicitly covered under the definition of a dislocated 
     worker. It is still the intent of the Managers, however, that 
     older workers who are in need of employment and training 
     activities, be served fairly and equitably through employment 
     training activities authorized under this Act.
       28. The House bill and the Senate amendment contain 
     different definitions of ``displaced homemaker.'' For 
     example, the House bill includes in the definition an adult 
     dependent on public assistance or a parent whose youngest 
     dependent child is ineligible for assistance. The Senate 
     amendment's definition requires the Federal Partnership to 
     determine guidelines solely for individuals who were full-
     time homemakers previously receiving financial support.
       The Senate recedes with an amendment modifying the 
     definition of ``displaced homemaker''.
       29. The House bill, but not the Senate amendment, includes 
     a definition of ``earnings.''
       The House recedes.
       30. The Senate amendment, but not the House bill, includes 
     a definition of ``economic development activities.''
       The Senate recedes.
       31. The House bill, but not the Senate amendment, includes 
     a definition of ``economic development agencies.''
       The House recedes.
       32. The House bill, but not the Senate bill, includes a 
     definition of ``economically disadvantaged.''
       The Senate recedes with an amendment changing the term 
     ``economically disadvantaged'' to ``low-income individual'', 
     modifying the reference to poverty guidelines, and striking 
     additional State criteria.
       33. The House bill and the Senate amendment include similar 
     definitions of ``educational service agency.'' However, the 
     House bill provides that an educational service agency be 
     recognized as an administrative agency for vocational 
     education.
       The House recedes.
       34. The House bill, but not the Senate amendment, includes 
     a definition of ``educationally disadvantaged adult,'' which 
     applies only to the adult education and family literacy 
     grant.
       The House recedes.
       35. The Senate amendment, but not the House bill, includes 
     a definition of ``elementary school; secondary school.'' In 
     addition, the Senate amendment includes a definition of 
     ``local educational agency.'' (See Note 52 for the comparable 
     House definition of local educational agency.)
       The House recedes with an amendment striking the definition 
     of ``elementary school'' and ``local educational agency''.
       36. The House bill, but not the Senate amendment, includes 
     a definition of ``eligible institution,'' which applies only 
     to the youth grant.
       The Senate recedes with an amendment striking the reference 
     to ``intermediate educational agency'' and replacing it with 
     ``educational service agency''.
       37. The House bill, but not the Senate amendment, includes 
     a definition of ``employed.''
       The House recedes.
       38. The House bill, but not the Senate amendment, includes 
     a definition of ``English literacy program.''
       The Senate recedes with an amendment striking the reference 
     to ``adults, out-of-school youth, or both''.
       39. The House bill, but not the Senate amendment, includes 
     a definition of ``excess number.''
       The House recedes.
       40. The House bill, but not the Senate amendment, includes 
     a definition of ``family and consumer sciences.''

[[Page H8430]]

       The Senate recedes.
       41. The House bill, but not the Senate amendment, includes 
     a definition of ``family literacy services,'' which applies 
     only to the adult education and family literacy grant.
       The Senate recedes.
       42. The Senate amendment, but not the House bill, includes 
     a definition of ``Federal Partnership.''
       The Senate recedes.
       43. The Senate amendment, but not the House bill, includes 
     a definition of ``flexible workforce activities.''
       Legislative counsel.
       44. The House bill, but not the Senate amendment, includes 
     a definition of ``Governor.''
       The House recedes.
       45. The House bill, but not the Senate amendment, includes 
     a definition of ``individual of limited English proficiency.
       The Senate recedes with an amendment changing ``adult or 
     youth'' to ``individual''.
       46. The House bill and the Senate amendment include a 
     definition of ``individuals with disabilities.'' The Senate 
     amendment also includes a definition of ``individual with a 
     disability.'' The House bill refers to the Rehabilitation Act 
     of 1973, the Senate amendment refers to section 3 of the 
     Americans with Disabilities Act of 1990.
       The House recedes.
       47. The House bill, but not the Senate amendment, includes 
     a definition of ``institution of higher education.'' (See 
     Note 36 for a definition of ``eligible institution.'')
       The House recedes.
       48. The House bill, but not the Senate amendment, includes 
     a definition of ``job search assistance.''
       The House recedes.
       49. The House bill, but not the Senate amendment, includes 
     a definition of ``labor market area.''
       The Senate recedes with an amendment striking second 
     sentence of House definition.
       50. The House bill, but not the Senate amendment, includes 
     a definition of ``library.'' However, the Senate amendment 
     includes definitions of ``library consortia,'' ``library 
     entity,'' and ``public library'' in the provisions pertaining 
     to Museums and Libraries. (See Note 550a)
       The House recedes.
       51. The House bill, but not the Senate amendment, includes 
     a definition of ``literacy.''
       The Senate recedes.
       52. Both the House bill and the Senate amendment, include 
     the same definition for ``local educational agency.'' (See 
     Note 35 for the comparable Senate definition)
       The Senate recedes.
       53. The Senate amendment, but not the House bill, includes 
     a definition of ``local entity.''
       Legislative counsel.
       54. The Senate amendment, but not the House bill, includes 
     a definition of ``local partnership.''
       The Senate recedes.
       55. The House bill, but not the Senate amendment, includes 
     a definition of ``migrant farmworker.''
       The House recedes.
       56. The Senate amendment, but not the House bill, includes 
     a definition of ``National Board.''
       The Senate recedes.
       57. The House bill, but not the Senate amendment, includes 
     a definition of ``Native American.'' However, the Senate 
     amendment includes definitions of ``Indian,'' ``Alaska 
     Native,'' and ``Native Hawaiian'' in the provisions 
     pertaining solely to Indian workforce development activities 
     in section 107. (See Note 422)
       The House recedes.
       58. The House bill, but not the Senate amendment, includes 
     a definition of ``nontraditional employment.''
       The Senate recedes with an amendment modifying the 
     definition of ``nontraditional employment''.
       59. The House bill, but not the Senate amendment, includes 
     a definition of ``on-the-job training.''
       The Senate recedes with an amendment striking the reference 
     to the Occupational Employment Statistics Program Dictionary, 
     and replacing it with criteria limiting the duration of on-
     the-job training, as appropriate.
       60. The Senate amendment, but not the House bill, includes 
     a definition of ``outlying area.'' (See related Note 76)
       The House recedes.
       61. The Senate amendment, but not the House bill, includes 
     a definition of ``participant.''
       The Senate recedes.
       62. The House bill, but not the Senate amendment, includes 
     a definition of ``partnership'' which applies only to the 
     youth grant.
       The House recedes.
       63. Both the House and the Senate amendment include a 
     definition of ``postsecondary educational institution.'' The 
     House bill refers to eligibility and certification 
     requirements under the Higher Education Act of 1965. The 
     Senate amendment requires two or four year programs of 
     instruction.
       The Senate recedes.
       64. The House bill, but not the Senate amendment, includes 
     a definition of ``preemployment skills training; job 
     readiness skills training.''
       The House recedes.
       65. The House bill, but not the Senate amendment, includes 
     a definition of ``public assistance.'' (See related Note 91.)
       The House recedes.
       66. The House bill defines ``rapid response.'' The Senate 
     amendment defines ``rapid response assistance.'' The House 
     bill specifies who provides the assistance, when on-site 
     contact should occur, and lists types of assistance. The 
     House bill refers to ``substantial layoff,'' the Senate 
     amendment refers to ``layoff of 50 or more people.''
       The House recedes with an amendment combining the two 
     definitions into a single definition of ``rapid response 
     assistance''.
       67. The House bill, but not the Senate amendment, includes 
     a definition of ``registered apprenticeship.''
       The House recedes.
       68. The House bill, but not the Senate amendment, includes 
     a definition of ``school dropout.''
       The Senate recedes with an amendment replacing ``youth'' 
     with ``individual'' and striking the reference to a 
     certificate of a secondary school equivalency program.
       69. The Senate amendment, but not the House bill, includes 
     a definition of ``school-to-work activities.''
       The Senate recedes.
       70. The House bill, but not the Senate amendment, includes 
     a definition of ``seasonal farmworker.''
       The House recedes.
       71. The House bill, but not the Senate amendment, includes 
     a definition of ``Secretary,'' which applies to both the 
     youth grant and adult education and family literacy grant.
       The House recedes.
       72. The House bill, but not the Senate amendment, includes 
     a definition of ``sequential course of study,'' which applies 
     only to the youth grant.
       The Senate recedes with an amendment striking ``youth'' and 
     inserting ``individuals.''
       73. The House bill, but not the Senate amendment, includes 
     a definition of ``single parent,'' which applies only to the 
     youth grant.
       The House recedes.
       74. The House bill, but not the Senate amendment, includes 
     a definition of ``skill certificate.''
       The House recedes.
       75. The House bill, but not the Senate amendment, includes 
     a definition of ``special populations,'' which applies only 
     to the youth grant.
       The House recedes.
       76. Both the House bill and the Senate amendment include a 
     definition of ``State,'' however, the House bill includes in 
     the definition the Virgin Islands, American Samoa, Guam, and 
     the Commonwealth of the Northern Mariana Islands.
       The House recedes.
       77. The Senate amendment, but not the House bill, includes 
     a definition of ``State benchmarks.''
       The House recedes with conforming amendments.
       78. The House bill and the Senate amendment include 
     different definitions of ``State Educational Agency.'' The 
     House bill includes the same definition as the Elementary and 
     Secondary Education Act. The Senate amendment's definition 
     differs from the Elementary and Secondary Education Act by 
     including the State board of education or other officer, and 
     by adding the clause ``or, if there is no such officer or 
     agency, an officer or agency designated by the Governor or by 
     State law.''
       The Senate recedes.
       79. The Senate amendment, but not the House bill, includes 
     a definition of ``State goals.''
       The House recedes.
       80. Both the House bill and the Senate amendment include a 
     definition of ``State library administrative agency.'' 
     However, the Senate amendment definition is included in the 
     provisions pertaining to Museums and Libraries. (See Note 
     550b)
       The Senate recedes. (Definition moves to libraries 
     section.)
       81. The Senate amendment, but not the House bill, includes 
     a definition of ``statewide system.''
       The House recedes with an amendment including employment 
     and training activities, vocational education activities, 
     adult education and literacy activities, at-risk youth 
     activities, and activities carried out pursuant to the 
     Wagner-Peyser Act in the definition of ``statewide system''.
       82. The Senate amendment, but not the House bill, includes 
     a definition of ``substate area.''
       The Senate recedes.
       83. The House bill, but not the Senate amendment, includes 
     a definition of ``supportive services.''
       The Senate recedes with an amendment streamlining the 
     definition of ``supportive services''.
       84. Both the House bill and the Senate amendment include 
     similar definitions of ``tech-prep.'' The House bill defines 
     ``tech-prep education program,'' the Senate amendment defines 
     ``tech-prep program.''
       The House recedes.
       84a. The Senate amendment refers to State law.
       The House recedes with an amendment striking ``sequence'' 
     and inserting ``sequential course of study.''
       84b. The Senate amendment includes work-site learning.
       The House recedes.
       84c. The House bill provides technical preparation in at 
     least 1 field. The Senate amendment includes applied 
     economics.

[[Page H8431]]

       The House recedes.
       84d. The Senate amendment includes economics.
       The House recedes.
       84e. The House bill refers to careers meeting labor market 
     needs.
       The House recedes.
       85. The House bill, but not the Senate amendment, includes 
     a definition of ``unemployed.''
       The House recedes.
       86. The House bill, but not the Senate amendment, includes 
     a definition of ``unit of general local government.''
       The Senate recedes.
       87. Both the House bill and the Senate amendment 
     definitions are the same, except for a technical difference.
       The House recedes.
       88. Both the House bill and the Senate amendment include 
     different definitions of ``vocational education.''
       The House recedes.
       89. The House bill, but not the Senate amendment, includes 
     a definition of ``vocational student organizations,'' which 
     applies only to the youth grant.
       The Senate recedes with an amendment striking all after the 
     word ``units''.
       90. The Senate amendment, but not the House bill, includes 
     a definition of ``vocational rehabilitation program.''
       The House recedes.
       91. The Senate amendment, but not the House bill, includes 
     a definition of ``welfare assistance.'' (See related Note 65)
       The Senate recedes.
       92. The Senate amendment, but not the House bill, includes 
     a definition of ``welfare recipient.''
       The Senate recedes.
       93. The House bill, but not the Senate amendment, includes 
     a definition of ``work experience.''
       The House recedes.
       94. The Senate amendment, but not the House bill, includes 
     a definition of ``workforce development activities.''
       The House recedes with an amendment striking ``workforce 
     development activities'' and inserting ``workforce and career 
     development activities.''
       95. The Senate amendment, but not the House bill, includes 
     a definition of ``workforce education activities.''
       The House recedes with an amendment referencing 
     ``vocational education activities'' and ``adult education and 
     literacy activities'' instead of ``workforce education 
     activities.''
       96. The Senate amendment, but not the House bill, includes 
     a definition of ``workforce employment activities.''
       The House recedes with an amendment referencing 
     ``employment and training activities'' instead of ``workforce 
     employment activities.''
       97. The Senate amendment, but not the House bill, includes 
     a definition of ``workforce preparation activities for at-
     risk youth.''
       The House recedes with an amendment referencing ``at-risk 
     youth activities'' instead of ``workforce preparation 
     activities for at-risk youth.''
       98. The House bill, but not the Senate amendment, includes 
     a definition of ``workplace mentor.''
       The House recedes.
       99. The House bill, but not the Senate amendment, includes 
     a definition of ``youth.''
       The House recedes.


                               state role

     Description of system
       100. The House bill, but not the Senate amendment, uses 
     title I to establish an infrastructure for the workforce 
     development and literacy system, composed of three block 
     grants.
       The House recedes.
       101. The Senate amendment, but not the House bill, provides 
     for the Secretaries to make an allotment to each State to 
     establish a statewide workforce development system.
       The House recedes with an amendment conforming the 
     reference to the Secretary of Education and the Secretary of 
     Labor to the ``Secretaries'' as defined in this title.
       102. Under the House bill, grants for programs are provided 
     under four separate titles, known as Workforce Development 
     and Literacy Programs. (The House bill no longer contains a 
     separate title for vocational rehabilitation.) Under the 
     Senate amendment, a State must allocate its allotment as 
     follows: 25% for workforce employment, 25% for workforce 
     education, and the remaining 50% for the flex account.
       The House recedes with an amendment apportioning a State's 
     block grant funds as follows: 32 percent for employment and 
     training activities, 26 percent for vocational education 
     activities, 16 percent for at-risk youth activities, and 6 
     percent for adult education and literacy activities.
       102(a). The Senate amendment, but not the House bill, 
     provides that 50% of the allotment be used for the flex 
     account for workforce employment or workforce education 
     activities, as a State may decide. In addition, a State would 
     be required to spend a portion of the flex account on school-
     to-work activities. (See Note 350) A State may also use a 
     portion of the flex account for economic development 
     activities, if certain conditions are met. (See Note 352)
       The House recedes with an amendment apportioning 20 percent 
     for the flex account.
       103. The House, but not the Senate amendment, allows the 
     Governor to transfer up to 10% of the funds between title II 
     (youth) and title III (adult training).
       The House recedes.
       104. Under the Senate amendment, but not the House bill, 
     the Secretaries are directed to make payments to the Governor 
     for workforce employment and to the State educational agency 
     for workforce education.
       The House recedes with an amendment providing that block 
     grant funds allotted to a State will be distributed to the 
     Governor for employment and training and at-risk youth 
     activities, and to the eligible agency for vocational 
     education and adult education and literacy activities. The 
     amendment further provides for a definition for the term 
     ``eligible agency.''
       The Managers intend that the reference to ``State law'' in 
     determining the individual, entity or agency is a State 
     responsible for administering or setting policies for 
     vocational education or adult education and literacy includes 
     State statutes or the State constitution. The term ``State 
     law'' does not include regulations by the Governor. The 
     Managers do not intend to prohibit States from redesignating 
     the agency or agencies responsible for these activities by 
     State statute.
     Collaborative process/State boards
       105. The House bill, but not the Senate amendment, requires 
     a Governor to certify to the Secreatries that a collaborative 
     process has occurred where required under the Act.
       The House recedes.
       106. Under the House bill, the collaborative process is a 
     process for making the key decisions at the State level, 
     including development of the State plan. The collaborative 
     process under the Senate amendment is used solely for 
     developing the State's strategic plan. The State provides a 
     description of the process in its plan.
       The Senate recedes with an amendment clarifying that the 
     collaborative process is to be used for the development of 
     the State plan.
       107. The House bill and the Senate amendment list the 
     participants in the collaborative process.
       The Senate recedes with an amendment combining and 
     modifying the lists of participants in the collaborative 
     process from both bills.
       In determining who should participate in each State's 
     collaborative process, the Managers intentionally limited the 
     number of individuals and entities who are required by the 
     legislation to participate in such effort. However, this was 
     in no way intended to be an exhaustive list. The Managers 
     encourage the participation of employment and training 
     providers, especially private providers such as outplacement 
     firms and for-profit training companies, whose private sector 
     perspective and expertise should prove valuable to a State's 
     comprehensive workforce preparation efforts.
       108. The House bill, but not the Senate amendment, allows 
     States to use existing processes, including State councils, 
     that are substantially the same as those described in section 
     103(a) and (b), outlining the collaborative process.
       The Senate recedes with an amendment allowing an existing 
     State board, council or other entity to serve as the State's 
     collaborative process, and describing the functions of such a 
     State board.
       109. The Senate amendment permits the Governor to establish 
     a State workforce development board to assist in the 
     development of the statewide workforce development system. 
     The House bill permits existing State boards under section 
     103(c) (See previous Note).
       The Senate recedes.
       110. Both the House bill and the Senate amendment allow the 
     Governor to act, if he or she is unable to obtain the support 
     of the participants in the collaborative process. However, 
     comments from participants must be included in the State 
     plan. The House bill specifically gives the Governor final 
     authority to submit the State plan, and to make decisions for 
     all programs authorized under the Act, except where State law 
     provides such authority to an individual or agency other than 
     the Governor.
       The Senate recedes with an amendment clarifying that the 
     Governor shall have final authority for the content of the 
     State plan relating to employment and training and at-risk 
     youth activities, and the eligible agency shall have final 
     authority for the content of the State plan relating to 
     vocational education and adult education and literacy 
     activities. The amendment further clarifies that the Governor 
     has final authority to submit the State plan, including 
     comments submitted by participants in the collaborative 
     process. If the eligible agency disagrees with the portion of 
     the State plan in its jurisdiction, the eligible agency's 
     comments shall be considered to be the State's plan for those 
     activities.
       111. The House bill and the Senate amendment provide that 
     neither shall be construed to supersede State law or 
     authority, although the Senate amendment applies only to 
     education activities.
       The Senate recedes with an amendment combining the 
     provisions of both bills that provides that nothing in this 
     title should supersede State law.
       It was important to the Managers that nothing in this Act 
     supersede or negate the authority of any State official, 
     agency, or entity over programs under that official's, 
     agency's, or entity's jurisdiction. The Managers wish to 
     clarify that this protection is

[[Page H8432]]

     also extended to any existing authority or jurisdiction 
     granted by State law to State Legislatures.
     State allotments
       (Workforce Development/At-Risk Youth)
       112. The Senate amendment, but not the House bill, provides 
     that funds be expended in accordance with the State's laws 
     and procedures.
       The Senate recedes.
       113. Under the Senate amendment, funds for workforce 
     development activities will be distributed according to a 
     formula based on the following factors: 60% of the funds 
     based on each State's percentage share of the population aged 
     15 to 65 years, 20% of the funds based on each State's 
     percentage share of individuals aged 18 to 64 years who are 
     at or below the official poverty line, 10% of the funds based 
     on each State's percentage share of the average unemployment 
     rate for the previous 2 years; and 10% based on each State's 
     percentage share of adult recipients of welfare assistance. 
     The House bill has no comparable allotment requirement for a 
     single grant to States, but does provide allotments to States 
     under the three separate block grants. (See Notes 115, 116, & 
     117)
       The House recedes with an amendment changing the age range 
     of individuals in poverty to ages 16 to 64, and making other 
     conforming changes in the State allotments.
       113a. Under the Senate amendment, in addition to the 
     factors described in the previous Note, there is a provision 
     for a State minimum allocation, so that no State receives 
     less than 0.5% of the total allocation. However, the 
     application of the minimum grant provision cannot result in 
     an allotment that is larger than 150% of the product of a 
     State's population times the national per capita payment 
     under the formula (which is the total allocation divided by 
     the total population). The House bill also includes State 
     minimums in its separate grant allotments. (See Notes 115, 
     116, & 117)
       The House recedes with an amendment striking any references 
     to the Federal Partnership
       113b. Notwithstanding any other provision of the formula in 
     the Senate amendment, no State would receive an increase or 
     decrease of more than 5% in its share of funds from the 
     previous year.
       The House recedes with an amendment striking ``0.95'' and 
     inserting ``0.98''; and striking ``1.05'' and inserting 
     ``1.02''
       114. The Senate amendment provides funding for Job Corps 
     and at-risk youth through an allotment based on 1996 
     appropriations for Job Corps, and the remainder distributed 
     by formula for workforce preparation activities for at-risk 
     youth. The House bill provides funding for at-risk youth 
     under the youth grant. (See Note 115). The House bill retains 
     current law for Job Corps.
       The Senate recedes.
       114a. Under the Senate amendment, the Secretaries provide 
     funds for the operation of Job Corps centers based on the 
     amounts appropriated in fiscal year 1996 and such additional 
     amounts as are necessary for the construction of new centers.
       The Senate recedes.
       114b. Under the Senate amendment, the Secretaries may 
     reserve at-risk youth funds for Indians and Native Hawaiians.
       The Senate recedes.
       114c. Remaining funds for at-risk youth are allocated in 
     the Senate amendment based on the following factors: 33\1/3\% 
     of the funds based on each State's percentage share of the 
     average unemployment rate for the previous two years, 33\1/
     3\% of the funds based on each State's percentage share of 
     individuals aged 18 to 64 years who are at or below the 
     official poverty line, and 33\1/3\ percent of the funds based 
     on each State's percentage share of at-risk youth.
       The Senate recedes.
       (Youth)
       115. Under the House bill's grant for youth (which includes 
     in-school and at-risk youth), States are provided an amount 
     of funding which bears the same ratio as the average of funds 
     they received in fiscal year 1995 under sections 101 and 101A 
     of the Perkins Act (basic State and tech prep grants) and 
     sections 252 and 262 of JTPA (Title II-B Summer Youth and 
     Title II-C Youth Training). A small State minimum of 1/4 of 
     1% is provided. For a description of the Senate allotment for 
     workforce development (which includes youth) and the 
     allotment for at-risk youth. (See Notes 113 and 114).
       The House recedes.
       (Employment and Training Activities)
       116. Under the House bill's grant for adult employment and 
     training, States are provided funds based on each State's 
     share of fiscal year 1995 appropriations under JTPA Title II-
     A (Adult Training) and Title III (Dislocated Workers). In 
     addition, no State would receive less than 0.25% of the 
     amount made available for these activities. For a description 
     of the Senate allotment which includes employment and 
     training, see Note 113.
       The House recedes.
       (Adult Education)
       117. Under the House bill's grant for adult education and 
     literacy, States are provided an allotment of $250,000. Funds 
     remaining after these allotments are made would be 
     distributed to States in proportion to the adult population 
     who are: at least 16 years of age but less than 61 years, 
     beyond the age of compulsory school attendance, do not have a 
     high school diploma (or the equivalent), and who are not 
     currently enrolled in school. For a description of the Senate 
     allotment which includes adult education, see Note 113.
       The House recedes.
     State responsibilities
       (State plan/General)
       118. Under the House bill, the Governor must submit a 
     single State plan (to the Secretaries of Education and Labor) 
     for the workforce development and literacy programs under the 
     Act. Under the Senate amendment, the Governor must submit a 
     single, comprehensive 3-year plan to the Federal Partnership.
       The Senate recedes with an amendment clarifying that the 
     State plan will cover a 3-year period.
       119. Under the House bill, but not the Senate amendment, 
     the plan remains in effect for 6 years, unless the State 
     modifies the plan.
       The Senate recedes with an amendment clarifying that a 
     State may submit modifications to its State plan during the 
     3-year period.
     Contents
       120. Under the Senate amendment, but not the House bill, 
     the plan contains three components: (1) the strategic plan, 
     (2) the description of workforce employment activities, and 
     (3) the description of workforce education activities. The 
     strategic plan, developed through the collaborative process, 
     describes the statewide strategy and the allocation of funds 
     in the flex account.
       The Senate recedes.
       121. Both the House bill and the Senate amendment require 
     that State plans include various elements. To the extent both 
     the House bill and the Senate amendment contain comparable 
     requirements, there are differences in content.
       The Senate recedes with an amendment changing the title to 
     ``State Plan'' and striking ``workforce development and 
     literacy''.
       121a. Both the House bill and the Senate amendment require 
     a description of the collaborative process. The House bill 
     and the Senate amendment differ in the use of the 
     collaborative process. The Senate amendment also requires a 
     demonstration of support by the participants. (See Note 106)
       The House recedes with an amendment requiring the State 
     plan to describe the collaborative process, and to 
     demonstrate the support of participants for the plan and the 
     agreement of the eligible agencies for the plan.
       121b. Both the House bill and the Senate amendment require 
     a description of the State goals (and in the Senate 
     amendment, State benchmarks) for workforce development and 
     how to achieve them.
       The House recedes with an amendment requiring the State 
     plan to describe State goals and benchmarks and how workforce 
     and career activities will be coordinated to reach them.
       121c. Both the House bill and the Senate amendment require 
     a description of the current and future workforce development 
     needs of each State.
       The Senate recedes with an amendment requiring the State 
     plan to describe workforce and career development needs in 
     the State.
       121d. Both the House bill and the Senate amendment require 
     a description of performance indicators to measure and 
     continuously improve upon the performance of the statewide 
     system. The House bill requires the identification of 
     progress indicators. (See Notes 123c and 125b for comparable 
     Senate provisions)
       The House and Senate recede.
       121e. The House bill, but not the Senate amendment, 
     requires a description of how the State will comply with the 
     requirements for (1) the designation of workforce development 
     areas, (2) the establishment of local boards, (3) integrated 
     career center system, and (4) identification of eligible 
     education and training providers, as required by the Act.
       The Senate recedes with an amendment requiring the 
     identification of local workforce development areas in the 
     State plan, with an exception for small States, and the 
     development and inclusion of criteria to identify effective 
     and ineffective at-risk youth providers and programs.
       Under the conference agreement, local workforce development 
     areas are to be identified as a part of the collaborative 
     planning process in each State, with such identification 
     included in the State plan. As such, it is the intent of the 
     Managers that individuals involved in the collaborative 
     process, including representatives of local chief elected 
     officials, local educational agencies, postsecondary 
     institutions (including community colleges), and business, as 
     well as others, be involved in the identification of these 
     local areas. In addition, as part of the broader requirement 
     that the State plan must be made available to the public for 
     comment, it is intended that the designation of these areas 
     is truly a participatory process.
       Regarding identification of the actual geographic 
     boundaries of local workforce development areas, in addition 
     to labor market areas, the Managers encourage States to take 
     into consideration existing service areas (including service 
     delivery areas established under the Job Training Partnership 
     Act, areas served by postsecondary institutions and area 
     vocational education schools, areas served by local 
     educational agencies and intermediate educational agencies, 
     and units of general local government). The Managers also 
     encourage States to take into account the distance that 
     individuals must travel for receipt of services in making 
     such determinations.

[[Page H8433]]

       The Managers also intend for the identification of 
     effective and ineffective providers of at-risk youth 
     activities to provide States and local workforce development 
     boards with useful information regarding ``best practices'' 
     and ``failed practices'' in addressing the employment and 
     training needs of at-risk youth.
       121f. Both the House bill and the Senate amendment require 
     a description of how the State will participate in the 
     national labor market information system.
       The Senate recedes with an amendment requiring the State 
     plan to describe the statewide labor market information 
     system.
       121g. The House bill, but not the Senate amendment, 
     requires additional plan elements outlined in titles II-IV.
       The House recedes.
       121h. Both the House bill and the Senate amendment require 
     a description of how the State will eliminate duplication 
     among services, including a description of common data 
     collection and reporting processes.
       The Senate recedes.
       121i. The House bill, but not the Senate amendment, 
     requires a description of the process for public comment.
       The Senate recedes.
       121j. Both the House bill and the Senate amendment require 
     a description of business participation.
       The House recedes with an amendment clarifying 
     participation of labor, as appropriate.
       121k. The House bill, but not the Senate amendment, 
     requires assurance that the State will be accountable for 
     funds distributed under the Act.
       The Senate recedes.
       121l. The House bill, but not the Senate amendment, 
     requires a description of the sanctions which may be imposed 
     for actions contrary to the Act.
       The House recedes.
       121m. The Senate amendment, but not the House bill, 
     requires a description of how funds in the flex account will 
     be allocated among workforce activities.
       The Senate recedes.
       121n. The Senate amendment, but not the House bill, 
     requires information regarding the participation of local 
     partnerships.
       The Senate recedes.
       121o. The Senate amendment, but not the House bill, 
     requires information regarding other public and private 
     resources for workforce development activities.
       The House recedes with an amendment including a reference 
     to the Wagner-Peyser Act and clarifying the participation of 
     employees in the statewide system.
       121p. The Senate amendment, but not the House bill, 
     requires information regarding how Veterans' employment 
     activities will be coordinated with the statewide system.
       The House recedes.
       121q. The Senate amendment, but not the House bill, 
     requires an assurance that funds under the Act will 
     supplement and not supplant other public funds for workforce 
     development activities.
       The House recedes.
       121r. The Senate amendment, but not the House bill, 
     requires information regarding economic development 
     activities, if any.
       The House recedes with an amendment striking the reference 
     to ``labor organizations'' and replacing it with a reference 
     to ``labor as appropriate''.
       122. Under the House bill, but not the Senate amendment, 
     States must provide additional information regarding adult 
     employment and training activities.
       The House recedes.
       122a. The House bill, but not the Senate amendment, 
     requires a description of how the State will serve the 
     employment and training needs of various segments of the 
     population, and how it will provide rapid response assistance 
     to dislocated workers.
       The Senate recedes with an amendment requiring the State 
     plan to describe how the State will serve dislocated workers 
     and other unemployed individuals.
       123. Under the Senate amendment, but not the House bill, 
     the second part of the plan, developed by the Governor, 
     describes workforce employment activities.
       The Senate recedes.
       123a. The Senate amendment requires an identification of 
     substate areas. The House bill requires a description of how 
     the State will designate local workforce development areas. 
     (See Note 129 and 1213).
       The Senate recedes.
       123b. The Senate amendment requires a description of the 
     basic features of the State's one-stop career center system. 
     The House bill requires a description of how the State will 
     establish integrated career center systems. (See Note 121e)
       The House recedes with an amendment requiring the State 
     plan to describe the strategy for developing the one-stop 
     career center system in the State.
       123c. The Senate amendment requires an identification of 
     performance indicators relating to the State goals and 
     benchmarks for workforce employment activities. The House 
     bill requires an identification of progress indicators. (See 
     related Note 121d for comparable House provision)
       The Senate recedes.
       123d. The Senate amendment requires a description of the 
     workforce employment activities to be carried out. The House 
     bill contains no such specific plan requirement.
       The House recedes with an amendment requiring the State 
     plan to describe how the State will provide rapid response 
     assistance to dislocated workers.
       123e. The Senate amendment requires a description of the 
     steps the State will take over three years to establish a 
     statewide labor market information system. The House bill 
     requires a description of the State's participation in the 
     labor market information system (See Note 121f for comparable 
     House provision)
       The Senate recedes.
       123f. The Senate amendment, but not the House bill, 
     requires a description of the steps the State will take over 
     three years to establish a job placement accountability 
     system.
       The House recedes.
       123g. The Senate amendment requires a description of the 
     process the State will use to approve training providers. The 
     House bill requires a description of how the State will 
     identify education and training providers. (See Note 121e)
       The House recedes with an amendment requiring the State 
     plan to describe the process the State will use to identify 
     eligible providers of training services.
       124. In order to receive funds for youth, under the House 
     bill, but not the Senate amendment, a State must submit 
     additional information describing activities for youth.
       The House recedes with an amendment inserting ``With 
     respect to vocational education activities, information--''.
       124a. The House bill, but not the Senate amendment, 
     requires a description of the State's plan to develop the 
     academic and occupational skills of youth and provide the 
     attainment of challenging vocational-technical education 
     standards. (See Notes 125g and 125k for Senate plan 
     requirements regarding workforce education activities to 
     improve education and performance measures)
       The Senate recedes with an amendment requiring the State 
     plan to describe how the State will develop the academic and 
     occupational skills of students participating in vocational 
     education activities.
       124b. The House bill, but not the Senate amendment, 
     requires a description of how the State will improve 
     comprehensive career guidance and counseling. Both the House 
     bill and the Senate amendment require a description of how 
     the State will address professional development needs. (See 
     related Note 125I)
       The Senate recedes with an amendment requiring the State 
     plan to describe how the State will improve career guidance 
     and counseling.
       124c. The House bill, but not the Senate amendment, 
     requires a description of the State's strategy for 
     integrating academic, vocational, and work-based learning. 
     Both the House bill and the Senate amendment require 
     collaborative efforts. (See related Note 125)
       The House recedes.
       124d. Both the House bill and the Senate amendment require 
     a description of how the State will encourage the 
     participation of parents (and under the House bill--
     businesses), in education and youth development activities.
       The Senate recedes with an amendment requiring the State 
     plan to describe the involvement of parents and business in 
     vocational education activities.
       124e. The House bill, but not the Senate amendment, 
     requires a description of how the State will serve single 
     parents, displaced homemakers, and single pregnant women and 
     promote the elimination of sex bias without mandating a set-
     aside.
       The House recedes.
       125. Under the Senate amendment, but not the House bill, 
     the third part of the plan, developed by representatives of 
     education, describes workforce education activities.
       The Senate recedes.
       125a. The Senate amendment, but not the House bill, 
     requires a description of how the funds will be allocated 
     among adult education, and among secondary and postsecondary 
     vocational education programs. [Note: The House bill has 
     separate grants for youth and for adult education and 
     literacy.]
       The House recedes with an amendment requiring the State 
     plan to describe how vocational education funds will be 
     allocated among secondary and postsecondary and adult 
     vocational education.
       125b. In the House bill, goals and progress indicators for 
     adult education and family literacy must be described in the 
     plan as a condition of receiving funds. In the Senate 
     amendment, performance indicators for workforce education 
     activities must be identified in the plan.
       The House recedes with an amendment moving the reference to 
     performance indicators from this section to a single 
     reference following the description of the State goals and 
     benchmarks included in the State plan.
       125c. The Senate amendment, but not the House bill, 
     requires a description of the workforce education activities 
     to be carried out.
       The House recedes with technical amendments.
       125d. The Senate amendment requires a description of how 
     the State will address the adult education needs of the 
     State. The House bill includes an assessment of adult 
     education needs in section 104(b)(2)(B). (See Note 121c)
       The Senate recedes.
       125e. The Senate amendment, but not the House bill, 
     requires a description of how the State will disaggregate 
     data relating to at-risk youth.
       The Senate recedes.
       125f. The Senate amendment, but not the House bill, 
     requires a description of how the

[[Page H8434]]

     State will adequately address the needs of at-risk youth in 
     alternative education programs.
       The Senate recedes.
       125g. The Senate amendment, but not the House bill, 
     requires a description of how the workforce education funds 
     and activities are an integral part of State efforts to 
     improve education.
       The House recedes with an amendment requiring the State 
     plan to describe how the State will address the needs of 
     students participating in vocational education activities to 
     be taught to the same challenging academic proficiencies as 
     all students.
       125h. The Senate amendment, but not the House bill, 
     requires a description of how the State will annually 
     evaluate the effectiveness of the workforce education plan.
       The House recedes with technical amendments.
       125i. The Senate amendment requires a description of how 
     the State will address the professional development needs for 
     workforce education activities. (See Note 124b for related 
     House provision)
       The House recedes with technical amendments.
       125j. The Senate amendment, but not the House bill, 
     requires a description of how the State will provide 
     technical assistance to local educational agencies.
       The House recedes.
       125k. The Senate amendment, but not the House bill, 
     requires a description of how the State will assess its 
     progress in implementing student performance measures.
       The Senate recedes.
       126. Under the Senate amendment, a State must provide 
     additional information in the plan to be eligible for funds 
     for at-risk youth. However, a State is not required to 
     provide such information in order to be eligible for funds 
     for other workforce development activities.
       The House recedes with an amendment requiring a description 
     to be included in the State plan of the State's at-risk youth 
     activities and adult education and literacy activities.
       127. The Senate amendment provides that the Governor may 
     develop the entire plan with the consent of certain 
     representatives of education. The House bill provides for the 
     Governor, through the collaborative process, (which includes 
     representatives of education) to develop the plan. (See Notes 
     118 and 121a)
       The Senate recedes.
     Conditions
       128. Under the House bill, in order for a State to receive 
     a grant under one or more of the programs, it must: establish 
     a collaborative process, develop a plan, and comply with the 
     requirements of the Act. Additional requirements must be 
     satisfied in order to receive an adult education and literacy 
     grant. The Senate amendment provides that a State plan will 
     be approved if the State has: included the required 
     information in the plan, developed the strategic plan through 
     the collaborative process, and negotiated the State 
     benchmarks.
       The House recedes with an amendment providing that in order 
     to receive funds, a State must submit a State plan containing 
     all required elements and prepared through the collaborative 
     process.
       128a. The House bill requires States to meet additional 
     grant requirements, including establishing goals, progress 
     indicators, and performance measures, in order to receive 
     funds for adult education and literacy.
       The House recedes.
     Provisions regarding local Workforce Development Area/Boards
       129. Under the House bill, the Governor is required to 
     designate local workforce development areas through the 
     collaborative process, after consultation with local chief 
     elected officials, and after considering comments received 
     through public participation. The Senate amendment requires 
     plan information on substate areas. (See Note 123a)
       The House recedes.
     Criteria for selection
       130. Under the House bill, a State is required to establish 
     a local workforce development board in each local workforce 
     development area. Under the Senate amendment, a State may 
     elect to have local workforce development boards in substate 
     areas, but is not required to do so. (See Note 182)
       The House and Senate recede.
       131. Both the House bill and the Senate amendment allow the 
     Governor to establish criteria for use by local chief elected 
     officials in the selection of members of local boards. The 
     House bill requires the Governor to determine the criteria 
     through the collaborative process. (See Note 183)
       The House and Senate recede.
     Certification
       132. Under the Senate amendment, but not the House bill, if 
     a State elects to establish State and local workforce 
     development boards, or elects to offer services through 
     vouchers beginning in program year 2000, it may use up to 50% 
     of the funds in the flex account for economic development.
       The Senate recedes.
       133. Under the House bill, but not the Senate amendment, 
     the Governor is authorized to certify biennially one board 
     for each workforce development area. If a workforce 
     development area is a State, the collaborative process may 
     serve as the local workforce development board.
       The House recedes.
     One-stops/integrated career center systems
       134. The House bill, but not the Senate amendment, requires 
     the Governor to ensure the establishment of an integrated 
     career center system by local workforce development boards 
     within each local workforce development area. The Senate 
     amendment requires the Governor to establish a statewide 
     approach to integrating employment and training activities. 
     (See Note 321)
       The House recedes.
       135. The House bill, but not the Senate amendment, requires 
     the Governor, through the collaborative process, to establish 
     statewide criteria for selecting career center providers. 
     (See Note 322)
       The House recedes.
       136. Both the House bill and the Senate amendment require 
     States to implement a statewide approach to the delivery of 
     employment and training, based on the concept of integrated 
     or one-stop career centers, although the requirements of each 
     bill differ. (See Note 323)
       The House and Senate recede.
       136a. The House bill requires a system where common intake, 
     assessment, and job search are provided. The Senate amendment 
     provides as an option a system where core services are 
     provided, regardless of point of entry. (See Note 323a)
       The House and Senate recede.
       136b. Both the House bill and the Senate amendment allow 
     for access points that are electronically or computer linked. 
     The House bill further provides for the availability of labor 
     market information and common management information across 
     the system. (See Note 323b)
       The House and Senate recede.
       136c. The House bill requires at least one physical, co-
     located career center (to the extent practicable), but 
     encourages a network of such centers combined with affiliated 
     sites. The Senate amendment provides as an option, that there 
     be core services available at not less than one physical 
     location in each substate area, and also allows for a 
     combination of the options listed above.
       The House and Senate recede.
       137. The House bill, not the Senate amendment, permits the 
     Governor, through the collaborative process, to develop 
     alternatives to the integrated career center system, subject 
     to approval by the Secretaries. (See Note 328)
       The House recedes.
     Identification of education/training providers
       138. The House bill requires an identification process for 
     determining which service providers are eligible to receive 
     funds for adult training or vocational rehabilitation 
     programs through vouchers, skill grants, or otherwise. The 
     Senate amendment has no such requirement, other than to 
     identify in the State plan the criteria for eligible 
     providers, if a State chooses to offer services through 
     vouchers. (See Note 339)
       The Senate recedes with an amendment providing that certain 
     programs of postsecondary educational institutions are 
     automatically eligible to be providers of training services.
       The Managers recognize the demonstrated effectiveness of 
     the Center for Employment and Training (CET) in providing 
     employment education, training, and placement services to low 
     income individuals. While it is recognized that States and 
     local boards require flexibility in choosing the most 
     appropriate training models to meet their individual needs, 
     it is the Managers' intent, where possible, that exemplary 
     models of demonstrated effectiveness such as CET be 
     replicated on the State and local levels.
       139. The House bill, but not the Senate amendment, 
     establishes an alternative eligibility procedure for service 
     providers that are not eligible to participate in title IV of 
     the Higher Education Act of 1965. (See Note 340)
       The Senate recedes with an amendment requiring the Governor 
     to establish an alternative procedure to determine the 
     eligibility of other public and private providers of training 
     services that are not determined to be automatically 
     eligible.
       The Managers recognize that both private non-profit and 
     for-profit providers of training services should be 
     encouraged to participate fully as providers of training 
     services. Since 1980, private sector professional firms have 
     developed extensive programs to serve the growing training 
     needs of our rapidly changing economy and workforce. Research 
     indicates that the training market in the information 
     technology training industry alone totaled $2 billion in 
     1994, most of this provided by commercial firms. This section 
     of the legislation will enable States to authorize a wide 
     variety of training providers to participate in training 
     programs. This expanded provider involvement will allow 
     program participants to access the training through both 
     public and private providers that will best enable them to 
     enter or re-enter the workforce. By ensuring that one 
     provider is not favored over another, this section provides 
     maximum consumer choice and easy access to services.
       140. The House bill requires the State to identify 
     performance-based information to be submitted by service 
     providers. The Senate amendment has no such requirement, 
     other than to identify in the State plan information related 
     to ensuring the accountability of service providers, if a 
     State chooses to offer services through vouchers. (See Note 
     341)
       The Senate recedes with an amendment describing the 
     information that is required to be submitted by providers 
     seeking eligibility

[[Page H8435]]

     under the alternative procedure, and additional information 
     that the Governor may also require.
       141. Under the House bill, but not the Senate amendment, 
     the Governor must designate a State agency to collect, 
     verify, and disseminate performance-based information 
     relating to service providers, along with a list of eligible 
     providers, to local workforce development boards and 
     integrated career center systems. (See Note 342)
       The Senate recedes with an amendment requiring the Governor 
     to designate a State agency to collect and disseminate the 
     required information, receive applications from providers, 
     and publish a list of eligible providers of training 
     services.
       The conference agreement allows States to accept from 
     service providers offering programs not automatically 
     eligible for participation in training programs, performance 
     information consistent with requirements for eligibility 
     under Title IV of the Higher Education Act.
       The Managers note that regulations implementing Title IV 
     include provisions regarding the calculation of completion 
     rates (34 CFR 668.8(f)) and of placement rates (34 CFR 
     668.8(g)). The regulations permit Title IV eligibility only 
     for those programs with substantiated completion rates of at 
     least 70 percent and with substantiated placement rates of at 
     least 70 percent (34 CFR 668.8(e)). States are encouraged to 
     adopt similar standards in establishing their performance 
     information requirements.
       142. Under the House bill, but not the Senate amendment, a 
     service provider who provides inaccurate, performance-based 
     information will be disqualified from receiving funds under 
     this Act for two years, unless upon an appeal the provider 
     can demonstrate that the information was provided in good 
     faith. (See Note 343)
       The Senate recedes with an amendment providing that 
     providers who intentionally supply inaccurate information 
     shall have their eligibility terminated for at least two 
     years. Providers who fail to meet required performance 
     criteria or otherwise materially violate the provisions of 
     the title may also have their eligibility terminated. The 
     Governor is required to establish an appeals process.
       The provision of inaccurate information to the designated 
     State agency is grounds for disqualification of a provider 
     from program participation for two years or longer. The 
     purpose of this provision is to penalize providers that 
     intentionally and fraudulently misrepresent program 
     performance to obtain eligibility. The Managers do not intend 
     that providers be disqualified on the basis of minor errors 
     in information submitted to the designated Stat agency, such 
     as small errors in math.
       143. Under the House bill, but not the Senate amendment, 
     on-the-job training providers are exempt from this section, 
     except that performance-based information on such providers 
     must be collected and disseminated. (See note 344)
       The Senate recedes with an amendment stating that providers 
     of on-the-job training are exempt from these requirements. 
     The Governor may require one-stop career centers to collect 
     and disseminate performance information about on-the-job 
     training providers.
       144. The House bill, but not the Senate amendment, provides 
     that nothing in this section prohibits a State from providing 
     services. (See Note 345)
       The House recedes.
     Accountability
       145. Both the House bill and the Senate amendment require 
     States to submit a performance report each year. The House 
     bill, but not the Senate amendment, requires reporting on 
     performance of local areas and local entities; and public 
     disclosure of such reports. The Senate amendment, but not the 
     House bill, requires the results of any on-going State 
     evaluations of workforce development activities. (See Note 
     163)
       The House recedes with an amendment requiring States to 
     submit an annual report on their progress toward meeting 
     their goals and benchmarks.
       146. The House bill, but not the Senate amendment, requires 
     States to submit a report for adult education and literacy.
       The House recedes.
       147. The Senate amendment, but not the House bill, allows 
     States to submit a consolidated workforce development and 
     welfare assistance report to the Federal Partnership, the 
     Secretary of Agriculture, and the Secretary of Health and 
     Human Services.
       The Senate recedes.
     Core indicators/goals and benchmarks
       148. The Senate amendment establishes two principal goals 
     for each statewide system: (1) providing meaningful 
     employment and (2) improving skills.
       The House recedes.
       149. The House bill, but not the Senate amendment, requires 
     each State to develop a statewide performance accountability 
     system. The Senate amendment requires a job placement 
     accountability system. (See Note 165)
       The House recedes.
       150. Under the House bill each State must identify 
     indicators of performance, consistent with State goals, which 
     at a minimum must include core indicators as provided under 
     this section. The Senate amendment required benchmarks. (See 
     Note 152)
       The House recedes.
       151. The House bill, but not the Senate amendment, requires 
     the Secretaries of Labor and Education to collaborate with 
     States, representatives of business and others to develop 
     technical definitions of core indicators.
       The House recedes.
       152. The House bill requires common core indicators for 
     adults, with additional indicators specifically for adult 
     employment and training, adult education and literacy, and 
     vocational rehabilitation. The House bill also requires core 
     performance indicators for youth. The Senate amendment 
     requires States to develop benchmarks for attaining the goals 
     of meaningful employment and improved skills.
       The House recedes with an amendment combining the core 
     indicators for adults in the House bill with the employment 
     benchmarks in the Senate bill and combining the core 
     indicators for youth development and career preparation in 
     the House bill with the education benchmarks in the Senate 
     bill. The amendment also clarifies that employment benchmarks 
     apply to employment and training activities and, where 
     appropriate, to at-risk youth activities and adult education 
     and literacy activities. The education benchmarks apply to 
     vocational education activities, at-risk youth activities and 
     where appropriate, adult education and literacy activities.
       152(a) While certain of the House bill's core indicators 
     are similar to the Senate amendment's benchmarks, the House 
     bill's indicators are organized around youth and adults. The 
     Senate amendment's benchmarks correspond to employment and 
     education.
       The House recedes with an amendment requiring States to 
     develop minimum measures for certain specific populations, to 
     measure how these populations are meeting the State's 
     employment and education goals and benchmarks. States may 
     also develop such measures for additional populations.
       153. The House bill, but not the Senate amendment, also 
     requires, through the collaborative process, the 
     establishment of goals for improving literacy and progress 
     indicators to evaluate local providers receiving literacy 
     funds.
       The House recedes.
       154. The Senate amendment, but not the House bill, allows 
     States to use existing performance measures for skills 
     attainment.
       The House recedes with an amendment clarifying that the 
     special rule applies to a State that adopts performance 
     indicators, attainment levels, or assessments.
       The Managers intend that if a State has already implemented 
     a system of evaluation, that State may use this system rather 
     than developing a new system of measures. The Managers 
     recognize many States have already established rigorous State 
     academic measures for both vocational and non-vocational 
     students and the Managers do not want to duplicate the 
     efforts of these States. The Managers want to make sure 
     however, that if a State desires to change these measures, 
     the Special Rule does not preclude any State from revising 
     their State academic or other standards. The Managers also 
     want to clarify that the decision of whether or not to use 
     existing State measures is a State decision and is not 
     mandated by this bill.
       155. Under the House bill, but not the Senate amendment, 
     each State must identify expected levels of performance for 
     local areas, which may be adjusted by the Governor through 
     the collaborative process.
       The House recedes.
       156. Under the House bill, the Secretaries, through 
     collaboration with States, representatives of business, and 
     others, must identify challenging levels of performance with 
     respect to core indicators. Under the Senate amendment, the 
     Federal Partnership must establish model benchmarks based on 
     existing State efforts.
       The House recedes with an amendment providing that the 
     Secretaries shall provide technical assistance to States that 
     request such assistance in the development of State 
     benchmarks, which may include the development of model 
     benchmarks.
       If the Secretaries of Education and Labor decide to develop 
     model benchmarks in order to provide effective technical 
     assistance to the States, the Secretaries must do so in 
     collaboration with the States and with other appropriate 
     parties. The Managers intend that this collaborative process 
     include Governors, leading representatives of business and 
     industry, representatives of employees, leaders in education 
     and training, parents, and other interested parties for the 
     identification of challenging benchmarks which States may use 
     as models in development of their own State benchmarks. Such 
     process may also include the development of technical 
     definitions for use by the States in measuring the 
     benchmarks, in order to encourage nationwide comparability of 
     data.
       157. The Senate amendment, but not the House bill, provides 
     a process through which States negotiate with the Federal 
     Partnership to determine appropriate benchmark levels.
       The Senate recedes.
     Incentives
       158. Both the House bill and Senate amendment provide 
     incentive grants based on performance. The House bill 
     provides incentive grants an grants for exemplary statewide 
     system design, funded through the adult and employment 
     training grant. [Note: State to local incentive grants are 
     discussed under the heading ``Uses of Funds'']
       The House and Senate recede.

[[Page H8436]]

       159. The Senate amendment, but not the House bill, provides 
     incentive grants of up to $15 million annually to States that 
     (1) reach or exceed their benchmarks, (2) reduce the number 
     of welfare recipients, or (3) choose to offer services 
     through vouchers.
       The House recedes with an amendment providing that the 
     Secretaries may award incentive grants of not more than $15 
     million per year to States that reach, exceed, or demonstrate 
     continuing progress toward reaching State benchmarks. In 
     order for a State to be eligible to receive an incentive 
     grant, the Governor and eligible agency must agree on all 
     contents of the State plan. If the State is not eligible for 
     receipt of an incentive grant, the Secretaries shall provide 
     technical assistance to the State upon request. A State that 
     is initially determined ineligible for an incentive grant 
     will have 30 days to revise its benchmarks.
     Sanctions
       160. The Senate amendment, but not the House bill, allows 
     the Federal Partnership to determine the imposition of 
     sanctions of States that have failed to demonstrate progress 
     toward reaching their benchmarks over three years.
       The House recedes with an amendment providing that a State 
     that fails to meet its benchmarks for the 3-years covered by 
     a State plan, may be sanctioned by the Secretaries by up to 
     10 percent of its total block grant allotment.
       161. Both the House bill and the Senate amendment permit 
     the Secretaries to reduce funding for poor performance. The 
     House bill provides for a reduction of 5% based on the 
     State's degree of failure. The House bill also provides for 
     technical assistance.
       The Senate recedes with an amendment providing that the 
     Secretaries may determine whether the State's failure to meet 
     its benchmarks was attributable to one or more categories of 
     activities authorized under this title. If so, the 
     Secretaries may provide technical assistance or reduce the 
     portion of the allotment for the responsible category not 
     more than 10 percent.
       161a. Under the Senate amendment, but not the House bill, 
     if a State has submitted an integrated plan under section 
     105(b)(5), the Secretaries may reduce only the portion of 
     funding (up to 5%) for the category of activities--workforce 
     employment or workforce education--to which the failure is 
     attributable. States would also be required to transfer an 
     equal percentage of funds from such reduced category of 
     activities to the other category and spend such amount in 
     accordance with the integrated plan.
       The Senate recedes.
       161b. Under the Senate amendment, but not the House bill, 
     funds returned by the Secretaries as a result of a reduction 
     may be used to award incentive grants.
       The House recedes with technical amendments.
     Local sanctions and consequences
       162. The House bill, but not the Senate amendment, allows 
     the Governor, through the collaborative process, to establish 
     criteria for determining poor performance of local entities.
       The House recedes.
       162a. The House bill, but not the Senate amendment, allows 
     the Governor, through the collaborative process, to provide 
     technical assistance to local workforce development areas 
     that perform poorly. Continued poor performance may result in 
     a reduction of funds or other corrective action.
       The House recedes.
     Evaluations
       163. Both the House bill and the Senate amendment provide 
     for ongoing evaluations of employment-related activities, 
     including the use of controlled experiments using groups 
     chosen by random assignment. In the House bill, the Secretary 
     of Labor performs the evaluations, and in the Senate 
     amendment the States perform the evaluations. (See Note 417a)
       The House recedes with an amendment requiring States to 
     conduct ongoing evaluations of employment and training 
     activities through the use of controlled experiments. Such 
     evaluations would determine, at a minimum, whether employment 
     and training activities effectively raise the hourly wage 
     rates of participants. States would be required to conduct at 
     least 1 evaluation during any period in which the State is 
     receiving funding, but could enter into an agreement with 
     another State to share the costs of such evaluation.
       164. The House bill, but not the Senate amendment, also 
     allows the Secretary of Labor to conduct evaluations of other 
     Federal employment-related programs to determine their 
     effectiveness. (See Note 417b)
       The House recedes.
     Job placement accountability system
       165. The Senate amendment, but not the House bill, requires 
     each State to establish a job placement accountability system 
     to provide a uniform set of data to measure progress of the 
     State toward reaching its benchmarks.
       The Senate recedes.
     Management information system
       166. The House bill, but not the Senate amendment, 
     authorizes each State to design a unified management 
     information system for reporting and monitoring programs and 
     workforce development expenditures. Such system must ensure 
     privacy protections.
       The Senate recedes with an amendment authorizing States to 
     operate fiscal and management accountability information 
     systems that streamline reporting and monitoring of Federal 
     funds for employment and training activities and at-risk 
     youth activities. In addition, States are authorized to 
     utilize quarterly wage records available through the 
     unemployment insurance system to facilitate reporting on 
     employment benchmarks. The State is required to protect the 
     confidentiality of any information obtained pursuant to the 
     fiscal and management accountability information system 
     through the use of recognized security procedures and shall 
     also comply with the provisions of the Family Education 
     Rights and Privacy Act under Section 444 of the General 
     Education Provisions Act.
     Other
       167. The Senate amendment, but not the House bill, provides 
     that States monitor the participation of individuals who are 
     engaged in workforce activities as a condition of receiving 
     welfare assistance.
       The Senate recedes.
     General State provisions
       168. Both the House bill and the Senate amendment include 
     provisions for disallowed costs. Under the House bill, 
     expenditures disallowed by either Secretary for adult 
     employment and training, at-risk youth, or vocational 
     rehabilitation, may be repaid from funds allocated for such 
     grants in subsequent years. Under the Senate amendment, the 
     Governor may deduct workforce employment funds allocated to 
     substate areas in subsequent program years.
       The House recedes with an amendment providing that if the 
     Secretaries require a State to repay funds because a local 
     eligible provider of employment and training activities or 
     at-risk youth activities has expended funds in a manner 
     contrary to the objectives of the block grant, and such 
     expenditure does not constitute fraud, embezzlement, or other 
     criminal activity, the Governor may deduct an equal amount 
     from a subsequent program year allocation to the local 
     workforce development area from funds available for 
     administration of such activities in the local area, for such 
     repayment.
     Workers' rights
       169. The Senate amendment, but not the House bill, contains 
     limitations on the uses of funds.
       The House recedes.
       169a. The Senate amendment prohibits funds from being used 
     to pay the wages of incumbent workers.
       The House recedes.
       169b. The Senate amendment restricts the use of funds in 
     connection with the relocation of businesses.
       The House recedes with an amendment clarifying that the 
     business which has relocated was originally located within 
     the United States.
       170. Both the House bill and the Senate amendment prohibit 
     the displacement of currently employed workers, although the 
     House bill applies only to the adult employment and training 
     and youth grants.
       The House recedes.
       171. Both the House bill and the Senate amendment prohibit 
     the impairment of existing contracts. However, the House bill 
     further requires that any program inconsistent with such an 
     agreement must have the approval of the labor organization 
     and the employer.
       The Senate recedes with technical amendments.
       172. Both the House bill and the Senate amendment prohibit 
     the replacement of terminated employees, although there are 
     several differences in content.
       The Senate recedes with technical amendments.
       173. Both the House bill and the Senate amendment address 
     health and safety with different standards. The Senate 
     amendment also requires standards for workers' compensation.
       The House recedes with an amendment clarifying that to the 
     extent workers' compensation law is applicable in a State, 
     then workers' compensation shall be provided to participants 
     on the same basis as the compensation is provided to other 
     individuals in the State engaged in similar employment.
       174. The Senate amendment, but not the House bill, provides 
     standards for employment conditions for subsidized 
     employment.
       The House recedes.
       175. Both the House bill and the Senate amendment address 
     anti-discrimination through different means.
       The Senate recedes with an amendment stating that nothing 
     in this Act shall be construed to modify or affect any 
     Federal or State law prohibiting discrimination on the basis 
     of race, color, religion, sex, national origin, age, or 
     disability and that except as otherwise permitted in law, no 
     individual may be discriminated against with respect to 
     participation in certain workforce and career development 
     activities. In addition, nothing in this Act shall be 
     construed to provide an individual with an entitlement to a 
     service or to establish a right for an individual to bring 
     any action for a violation of a requirement of this section 
     or to obtain services, except through the grievance procedure 
     specified in this section.
       The phrase ``Except as otherwise permitted in law'' is 
     intended to bring Federal workforce and career development 
     activities within the scope of relevant civil rights 
     provisions which recognize specific exceptions to general 
     prohibitions against discrimination. For example, Title IX of 
     the Education

[[Page H8437]]

     Amendments Act of 1972, which prohibits discrimination based 
     on sex in any education program receiving Federal financial 
     assistance, exempts certain institutions, associations and 
     activities from its terms. Since workforce and career 
     development activities may include ``education programs' 
     within the meaning of Title IX, institutions, associations 
     and activities that are exempt form Title IX are likewise 
     exempt from this provision's proscription against sex-based 
     discrimination.
       176. The Senate amendment, but not the House bill, provides 
     for a grievance procedure and remedies for violation under 
     this section.
       The House recedes with an amendment requiring States to 
     establish a grievance procedure for resolving complaints 
     alleging violations of any of the prohibitions or 
     requirements described in this section.
       176a. The Senate amendment, but not the House bill, 
     provides remedies that may be imposed under this paragraph 
     for violations of the prohibitions and requirements described 
     in this subsection.
       The House recedes with an amendment providing that the 
     Secretary of Labor shall require a State to repay funds 
     expended in violation of the prohibition against business 
     relocation.
     GED requirements
       177. The Senate amendment, but not the House bill, 
     prohibits participation in certain workforce employment 
     activities until an individual has obtained a diploma or its 
     equivalent, or is enrolled in a program to obtain the same.
       The House recedes with an amendment prohibiting an 
     individual from participating in training services until such 
     individual has obtained a secondary school diploma or its 
     recognized equivalent, or is enrolled in a program or course 
     of study to obtain a secondary school diploma or its 
     recognized equivalent. An individual would not be denied such 
     training services, however, if the requirement is determined 
     to be inappropriate after an interview, evaluation or 
     assessment, and counseling. Funds made available for training 
     services may be used to provide State-approved adult 
     education and literacy activities to help individuals meet 
     the requirement.
     Drug testing
       178. The Senate amendment, but not the House bill, requires 
     local providers to administer a drug test to applicants, on a 
     random basis, and to participants, upon reasonable suspicion 
     of drug use.
       The House recedes with an amendment providing additional 
     safeguards to the mandatory requirement that States conduct 
     drug testing of participants in training services. Such 
     safeguards include voluntary guidelines based upon the 
     Mandatory Guidelines for Federal Workplace Drug Testing 
     Programs, immunity from liability, prohibition against the 
     use of drug test results in criminal actions, and reporting 
     requirements to prevent unnecessary multiple tests.
     American made
       179. The House bill, but not the Senate amendment, includes 
     a provision encouraging the purchase of American-made 
     products.
       The Senate recedes with an amendment striking the notice 
     requirement with respect to the purchase of American-made 
     products.
     No entitlement to services
       180. The House bill prohibits private rights of action for 
     services under the adult employment and training title. The 
     Senate amendment provides that no individual is entitled to 
     services under the Act.
       The House and Senate recede.


                               local role

     Establishment of local workforce development boards
       182. The House bill requires the Governor to ensure the 
     establishment of workforce boards within each workforce 
     development area. The Senate amendment allows, but does not 
     require, the State to establish local workforce boards in 
     each substate area. (See Note 130)
       The Senate recedes with an amendment requiring the 
     establishment of a local workforce development board in each 
     local workforce development area in a State.
       183. Both the House bill and the Senate amendment allow the 
     Governor to establish criteria for use by local chief elected 
     officials in the selection of members of local boards. The 
     House bill requires the Governor to determine the criteria 
     through the collaborative process. (See Note 131)
       The House recedes with an amendment requiring the Governor 
     of a State to establish criteria for the appointment of 
     members to local boards, which criteria shall be included in 
     the State plan.
       184. Both the House bill and the Senate amendment include 
     minimum requirements for representation on local workforce 
     boards.
       The Senate recedes with an amendment requiring a majority 
     of business representatives on the local board.
       184a. Both the House bill and the Senate amendment require 
     a majority business representation. The House bill further 
     specifies the types of representatives.
       The Senate recedes with an amendment inserting ``a majority 
     of members who are representatives of business and industry 
     in the workforce development area appointed from among 
     nominations submitted by local business organizations and 
     trade associations;''.
       184b. Both the House bill and the Senate amendment require 
     representation of one or more individuals with disabilities.
       The House and Senate recede.
       184c. Both the House bill and the Senate amendment include 
     representatives of education. The House bill further 
     specifies the types of representatives, including training 
     providers.
       The House recedes with an amendment requiring 
     representatives of education on the local board.
       184d. Both the House bill and the Senate amendment include 
     representatives of community-based organizations, employees, 
     and veterans. The Senate amendment includes a minimum 25% 
     representation requirement for this category of 
     representatives excluding veterans.
       The Senate recedes with an amendment requiring 
     representatives of employees, which may include labor, on the 
     local board. Additional members of the board may include 
     individuals with disabilities, parents, veterans, and 
     community-based organizations.
       185. The House bill requires that the local board elect its 
     chairperson from among the members of its board, and allows 
     the board to adopt its operating procedures. The Senate 
     amendment requires that each local board select a chairperson 
     from its business members.
       The Senate recedes with an amendment requiring the local 
     board to elect its own chairperson from among the members of 
     the board.
       186. The House bill includes provisions governing the 
     selection of members of local workforce boards, including 
     provisions governing the appointment of board members by 
     locally-elected officials, in areas with multiple 
     jurisdictions. The Senate amendment contains similar 
     provisions governing selection of representatives of local 
     partnerships, but not of local boards (See Note 199c).
       The Senate recedes with an amendment authorizing the chief 
     local elected official to appoint the members of the local 
     board. Where a local workforce development area is comprised 
     of more than one unit of local government, the chief elected 
     officials of such units are authorized to enter into an 
     agreement defining their respective roles. If the chief 
     elected officials are unable to reach agreement, the Governor 
     is authorized to appoint the members of the local board.
       187. The House bill, but not the Senate amendment, 
     authorizes the Governor to biennially certify one local 
     workforce board for each workforce development area. (See 
     Note 133)
       The Senate recedes with an amendment authorizing the 
     Governor to annually certify one local board in each local 
     workforce development area. Such certification shall be based 
     on criteria outlined in the State plan and for a second or 
     subsequent certification the extent to which the local board 
     has ensured that local programs have met expected levels of 
     performance. Failure to achieve certification shall result in 
     reappointment of another local board pursuant to the 
     requirements of this section. A Governor may decertify a 
     local board at any time for fraud, abuse, or failure to 
     perform its required duties (with the exception of the duty 
     of negotiate with the Governor on local benchmarks and on the 
     designation of one-stop career centers).
       The references to Governor in the certification process 
     shall mean that that the Governor or the Governor's designee 
     is authorized to certify local workforce development boards.
       188. Under the House bill, if the workforce development 
     area is a State, the State collaborative process may serve as 
     the local workforce development board. (See Note 133). The 
     Senate amendment contains a comparable provision for the 
     local partnership. (See Note 201)
       The Senate recedes with an amendment providing an exception 
     for small States that may designate the members of the 
     collaborative process at the State level to carry out the 
     required activities in this section.
       189. The House bill and the Senate amendment list certain 
     duties/functions of local workforce boards.
       Legislative counsel.
       189a. Both the House bill and the Senate amendment require 
     local workforce boards to develop, and submit to the 
     Governor, a local workforce development plan. The House bill 
     requires a biennial plan, and a local approval process. If 
     the board is unable to obtain the approval of local 
     officials, the plan may be submitted directly to the 
     Governor, with the comments of such officials. The Senate 
     amendment requires a 3-year plan, but contains no comparable 
     local approval process, but does require that the board 
     consult with chief elected officials. (See Note 193)
       The Senate recedes with an amendment requiring local boards 
     to conduct the following activities: (1) develop and submit 
     to the Governor a local workforce development plan, outlining 
     the employment and training activities and at-risk youth 
     activities to be carried out in the local area; (2) designate 
     or certify one-stop career and center eligible providers in 
     the local area, award competitive grants to at-risk youth 
     eligible providers, and conduct oversight with respect to 
     local programs; and (3) make recommendations to the Governor 
     identifying eligible providers of training services.
       190. The Senate amendment, but not the House bill, requires 
     the local board to enter into local agreement with the 
     Governor including how funds shall be spent for workforce 
     development activities. (See Note 199).

[[Page H8438]]

       The Senate recedes.
       191. The House bill requires the local board to identify 
     and assess the needs of the local workforce development area. 
     A similar provision is included in the Senate amendment under 
     the local plan.
       The House recedes.
       192. The House bill and the Senate amendment contain budget 
     and oversight duties for the local board. (See related Note 
     192b)
       The House recedes.
       192a. The House bill requires the local board to develop a 
     budget for the adult training and the at-risk youth programs, 
     and the integrated career center system, subject to the 
     approval of the local elected official(s). (See related Note 
     192b)
       The House recedes.
       192b. The House bill requires the local board (in 
     partnership with the local elected official(s)) to conduct 
     oversight of the above-listed programs. The Senate amendment 
     requires the local board to oversee the operation of the one-
     stop delivery system, including the designation of local 
     entities and approval of annual budgets. (See related Note 
     192a)
       The House recedes with an amendment requiring the local 
     board and the Governor to negotiate and reach agreement on 
     local benchmarks to measure the performance of employment and 
     training activities and at-risk youth activities and the 
     process to be used by the local board to designate or certify 
     one-step career center eligible providers. The Governor and 
     the local board may agree to certify a one-stop career center 
     provider that was established prior to the date of enactment 
     of this Act.
       192c. The Senate amendment, but not the House bill, also 
     requires the local board to submit annual progress reports to 
     the Governor.
       The Senate recedes.
       193. The Senate amendment requires that the local board's 
     functions be conducted in consultation with the local chief 
     elected official(s). (See Notes 189a, 192a and 192b for 
     related House provisions)
       The House recedes with an amendment requiring the local 
     board to consult with the chief local elected official in 
     developing the local plan, to provide copies of the local 
     plan to such official, and to include any recommendations 
     submitted by such official with the local plan submitted to 
     the Governor.
       194. The House bill provides that the local board may 
     receive and disburse funds for adult training and at-risk 
     youth programs, or may designate a fiscal agent (which may 
     include the State through a mutual agreement between the 
     local board and the State). The Senate amendment contains no 
     comparable provision.
       The House recedes.
       194a. The House bill allows the local board to employ its 
     own staff. The Senate amendment contains no comparable 
     provisions.
       The House recedes.
       The Managers agree that statutory language authorizing 
     local boards to employ staff is not necessary, as such 
     authority is implicit in the legislation. Up to 10 percent of 
     employment and training funds and at-risk youth distributed 
     to local workforce development areas may be spent on 
     administrative expenses. While local workforce development 
     boards may use a portion of these administrative funds to 
     employ necessary staff (limited to 4 percent under the at-
     risk) youth provisions), the Managers intend that such 
     administrative, and in particular staff expenses of local 
     boards be limited. Because local boards will no longer be 
     involved in the operation of programs (with limited 
     exceptions), as well as the significant reduction of 
     paperwork and reporting requirements as a result of this 
     legislation, the administrative expenses of local boards 
     should be significantly reduced from those currently spent by 
     private industry councils under the Job Training Partnership 
     Act.
       195. The House bill, but not the Senate amendment, 
     specifies that the local board may not operate programs 
     established under this Act. The House bill further allows 
     Governors to prohibit employees of agencies from providing 
     staff support to local boards.
       The Senate recedes with an amendment prohibiting local 
     boards from carrying out employment and training activities, 
     unless granted a waiver by the Governor.
       Although the conference agreement allows a Governor to 
     waive restrictions that prohibit a local workforce 
     development board from directly providing services, the 
     Mangers believe this authority should be exercised only on 
     rare occasions. One example would be in a rural area where a 
     competitive selection process has produced no other qualified 
     service provider with demonstrated expertise. The workforce 
     development board should be the service provider of last 
     resort.
       Clearly, a key element of this Act is the reliance on the 
     provision of services by entities who meet certain 
     qualification standards and are able to achieve specified 
     positive outcomes. This, the Managers believe, is best 
     accomplished through an open, fair and competitive process to 
     select entities to provide services to eligible individuals.
       196. The House bill and the Senate amendment contain 
     similar conflict of interest provisions. Under the House 
     bill, the Governor is authorized to enforce more rigorous 
     standards. The Senate amendment allows the Governor to 
     determine activities that constitute a conflict of interest. 
     The Senate amendment also prohibits local board members from 
     voting on matters that would benefit immediate family 
     members.
       The Senate recedes with an amendment prohibiting the local 
     board from engaging in activities that constitute a conflict 
     of interest and requiring the local board to make available 
     to the public information regarding the board's activities in 
     the local area.
       197. The House bill allows the Governor, through the 
     collaborative process, to require local boards to carry out 
     other duties as determined appropriate.
       The House recedes.
       198. Under the Senate amendment, but not the House bill, if 
     a State elects to establish State and local boards, or elects 
     to offer services through vouchers (starting in the year 
     2000), it may use up to 50% of its flex account funds for 
     economic development. (See Note 132)
       The Senate recedes.
     Local agreements
       199. The Senate amendment, but not the House bill, requires 
     the Governor to enter into agreements with local partnerships 
     (or where established, local boards), regarding workforce 
     development activities in each substate area.
       The Senate recedes.
       199a. Under the Senate amendment, the local partnership (or 
     local board) may make recommendations on the allocation of 
     funds for, or administration of, workforce education 
     activities, in accordance with the Act.
       The Senate recedes.
       199b. The Senate amendment requires that local partnerships 
     be established by the chief local elected official and 
     includes representation requirements.
       The Senate recedes.
       199c. The Senate amendment provides for the appointment of 
     the partnership, by local elected officials, in areas with 
     multiple jurisdictions. (See Note 186 for comparable House 
     provision).
       The Senate recedes.
       199d. The Senate amendment includes required representation 
     of business in the partnership, and a requirement that 
     business representatives have a lead role in the 
     partnership's activities.
       The Senate recedes.
       199e. The Senate amendment lists the contents of the local 
     partnership agreement.
       The Senate recedes.
       200. Under the Senate amendment, but not the House bill, if 
     the Governor is unable to reach agreement with the local 
     partnership (or board), The Governor shall provide the local 
     partnership (or board) an opportunity to comment on fund 
     allocation.
       The Senate recedes.
       201. The Senate amendment allows a State to be treated as a 
     substate area for purposes of the partnership and local board 
     requirements. (See Note 188 for comparable House provision.)
       The Senate recedes.


                              Use of Funds

     Education/youth
       202. Both the House bill and the Senate amendment reserve 
     funds for State activities.
       The House bill grants general authority to States to 
     conduct State programs and activities using not more than 8% 
     of funds allotted to the State. The Senate amendment requires 
     the State educational agency to carry out statewide workforce 
     education activities using 20% of funds made available to the 
     State. (See Note 218a)
       The Senate recedes with a technical amendment providing 
     that the eligible agency shall conduct State programs and 
     activities.
       203. The House bill specifically lists 12 permissible 
     activities for which the 8% of State funds may be used. The 
     Senate amendment lists 3 broad categories of permissible 
     activities for which 20% of the State funds may be used.
       The Senate recedes with an amendment providing a list of 
     permissible State uses of funds.
       203a. The House bill, but not the Senate amendment, allows 
     a State to use money from their 8% State held funds to make 
     performance awards to local communities who have exceeded 
     their performance goals, implemented exemplary youth programs 
     at the local level, or provided exemplary education services 
     and activities for at-risk youth.
       The House recedes.
       204. The House bill, but not the Senate amendment, requires 
     institutions receiving funds at the local level under the 
     youth development and career preparation grant to use the 
     monies to improve youth development and career-related 
     education programs.
       The House recedes with a technical amendment.
       205. Both the House bill and the Senate amendment have 
     required uses of funds. The House bill requires that funds 
     received by eligible institutions at the local level for in-
     school youth programs shall be used for specific programs. 
     The Senate amendment requires that funds received by the 
     State educational agency shall be used for specific workforce 
     education activities.
       The Senate recedes with a technical amendment.
       The Managers intend that activities such as purchasing, 
     leasing or upgrading equipment, including instructional 
     material; inservice training of vocational and academic 
     instructors; apprenticeship programs; and those activities 
     which provide strong experience in, and understanding of, all 
     aspects of the industry students are preparing to enter not 
     be precluded from funding at the local level. The bill's list 
     of required activities is

[[Page H8439]]

     not meant to limit schools and school districts' ability to 
     find creative ways to meet their education goals.
       205a. Both the House bill and the Senate amendment require 
     integration of academic and vocational education, linkages of 
     secondary and postsecondary education, and career guidance 
     and counseling. In addition, the Senate amendment requires 
     tech-prep to be implemented as part of linking secondary and 
     postsecondary education.
       The House recedes with an amendment modifying the list of 
     required local uses of funds for vocational education 
     activities.
       205b. Both the House bill and the Senate amendment have 
     additional required uses of funds.
       The Senate recedes with an amendment with additional 
     required local activities for vocational education.
       206. The House bill, but not the Senate amendment, lists 
     eleven additional permissible uses of funds by eligible 
     institutions at the local level for in-school youth programs.
       The House recedes.
     At-risk-youth
       207. The House bill, but not the Senate amendment, grants 
     general authority for local workforce development boards to 
     subgrant to providers for programs that serve at-risk and 
     out-of-school youth. (See Note 283)
       The House recedes.
       208. The Senate amendment, but not the House bill, grants 
     authority to the Secretary of Labor and Secretary of 
     Education, acting jointly on the advice of the Federal 
     Partnership, to make allotments to States to enable the 
     Secretary of Labor and the States to carry out at-risk youth 
     programs. (See Note 284)
       The Senate recedes.
       209. The Senate amendment, but not the House bill, requires 
     the Secretary of Labor to continue funding for Job Corps 
     centers who received assistance under part B of title IV JTPA 
     in FY 1996 and which were not closed under section 156. (See 
     Note 285)
       The Senate recedes.
       210. The Senate amendment, but not the House bill, requires 
     States to use a portion of the funds reserved for Indians and 
     Native Hawaiians to make grants to eligible entities to run 
     summer job programs that provide work-based learning 
     opportunities that are directly linked to year-round school-
     to-work activities. The Senate amendment further requires 
     that no funds shall be used to displace employed workers. 
     (See Note 286)
       [Statutory cite to subsection (c)(3) is incorrect. 
     Statutory cite should be subsection (c)(4) which is the 
     allotment for at-risk youth.]
       The Senate recedes.
       211. The House bill, but not the Senate amendment, lists 8 
     program elements which local workforce development boards are 
     required to provide for at-risk and out-of-school youth. (See 
     Note 210 for the Senate amendment's required activities.)
       The House recedes.
       212. The House bill lists additional permissible uses of 
     funds by eligible providers at the local level for at-risk/
     out-of-school youth programs. (See Note 288). The Senate 
     amendment permits States to make grants to eligible entities 
     to carry out alternative programs or other activities for at-
     risk youth. The activities are not specifically listed.
       The House and Senate recede.
       213. The House bill, but not the Senate amendment, limits 
     administrative funds used by a local workforce development 
     board to no more than 10%. (See Note 289)
       The House recedes.
       214. The House bill, but not the Senate amendment, does not 
     permit local workforce boards to operate programs (See Note 
     195), and requires that they subcontract to eligible 
     providers. (See Note 290)
       The House recedes.
       215. The House bill, but not the Senate amendment, lists 
     eligible providers to receive contracts from the local 
     workforce development board including: (1) eligible 
     institutions including local educational agencies, area 
     vocational schools, intermediate educational agencies; 
     postsecondary institutions including community colleges, 
     State corrections educational agency and any consortia of the 
     aforementioned list; (2) local government entities; (3) 
     private, nonprofit organizations including community based 
     organizations; (4) private, for-profit entities; or (5) other 
     organizations or entities that have a demonstrated 
     effectiveness and have been approved by the local workforce 
     development board. (See Note 291).
       The House recedes.
     Maintenance of effort
       216. The Senate amendment, but not the House bill, requires 
     that States expend the same amount of money, or more, for 
     workforce education activities as they did the preceding 
     fiscal year in order to receive Federal funds. The Senate 
     amendment further provides that the Federal Partnership may 
     grant a waiver to a State for a 95% maintenance-of-effort 
     requirement for 1 year only.
       The House recedes with an amendment which provides that if 
     the Federal share for a State decreases, then the fiscal 
     effort required of the State shall be decreased by the same 
     percentage as the percentage decrease in the overall amount 
     made available to the State. The amendment also corrects a 
     previous calculation of maintenance of effort.


                              Limitations

     Supplement not supplant
       217. Both the House bill and the Senate amendment provide 
     that funds used by a State shall supplement and not supplant 
     other public funds for workforce education and youth 
     development and career preparation programs. The House 
     requirement applies to youth development programs, not adult 
     education. The Senate amendment applies to workforce 
     education programs.
       The House recedes with a technical amendment.
     Allocation for State/Local programs
       218. Both the House bill and the Senate amendment have a 
     within State allocation. (See related Note 293)
       Legislative counsel.
       218a. The House bill provides that the Governor, through 
     the collaborative process, allocate not less than 90% of 
     funds to the local level. The Senate amendment provides that 
     the State educational agency distribute 80% of funds to 
     eligible local entities.
       The Senate recedes with a technical amendment.
       218b. The House bill requires not less than 90% of a 
     State's funds for the youth block grant go to the local level 
     to serve in-school and at-risk/out-of-school youth, not more 
     than 8% for State programs and not more than 2% for 
     administration. The Senate amendment requires that 80% of a 
     State's funds for workforce education go to the local level, 
     and 20% for State activities (with no more than 5% of such 
     20%) for administration.
       The Senate recedes with an amendment providing that not 
     less than 85 percent of funds be distributed to the local 
     level, not more than 11 percent for State programs, and not 
     more than 4 percent for administrative expenses.
       219. The Senate amendment provides that the State 
     educational agency shall determine how workforce education 
     funds are allocated among secondary vocational education, 
     postsecondary vocational education and adult education 
     programs. The House bill provides separate funding streams 
     for a youth development and career preparation grant and for 
     an adult education and literacy grant.
       The House recedes with an amendment requiring the eligible 
     agency to determine how vocational education funds will be 
     allocated between secondary vocational education and 
     postsecondary and adult vocational education.
       220. The House bill, but not the Senate amendment, requires 
     that of the 90% of funds sent to the local level, not less 
     than 40% of the funds must be used for programs serving in-
     school youth and not less than 40% of the funds must be used 
     for programs to serve at-risk and out-of-school youth. Of the 
     remaining 20% of funds, the Governor, through the 
     collaborative process, can distribute one-half of the 
     remaining funds by formula and one-half by either 
     discretionary grant or formula.
       The House recedes.
     Within State formula
       221. Both the House bill and the Senate amendment provide 
     for a within State formula.
       Legislative counsel.
       221a. The House bill requires the Governor, through the 
     collaborative process, to develop a formula taking into 
     account local poverty rates, the proportion of the State's 
     youth population residing within local communities and other 
     factors considered appropriate. In establishing the formula, 
     the Governor shall ensure that funds are equitably 
     distributed throughout the State and that the factors 
     described above do not receive disproportionate weighting.
       The House recedes with a technical amendment.
       221b. The Senate amendment requires distribution of funds 
     for secondary school vocational education to be distributed 
     according to the current Perkins law formula--70% allocated 
     on Title I ESEA formula, 20% allocated based on the number of 
     children served under IDEA, and 10% allocated on the total 
     number of students enrolled in schools and adults enrolled in 
     training programs under the jurisdiction of local educational 
     agencies.
       The House recedes with an amendment providing that the 
     formula for distribution of funds for secondary school 
     vocational education be distributed as follows: 70 percent 
     based on the number of children aged 5 to 17 living in poor 
     families; and 30 percent based on the overall number of 
     students within the local educational agency. The amendment 
     also allows an eligible agency to develop an alternative 
     formula if such formula distributes more funds to local 
     educational agencies with the highest number or percentage of 
     poor students.
       The Managers recognize that States are in a better position 
     to know their needs and have therefore provided a waiver 
     which allows the eligible agency the option to develop an 
     alternative formula which would better target poor areas--
     both those with high populations of poor and those with high 
     percentages of poor. The Managers intend that providing a 
     waiver for high percentages of poor will enable more funds to 
     flow to poor, rural areas. The requirement that an 
     alternative formula target more dollars to school districts 
     that serve the ``highest'' number or ``greatest'' percentage 
     of poor children is meant to include a group of such 
     districts, not a single district. A State may determine the 
     range of poor districts that it will target with an 
     alternative formula.

[[Page H8440]]

       222. Both the House bill and the Senate amendment establish 
     minimum grant awards of $15,000 for a local educational 
     agency or consortium of such agencies.
       The House recedes.
       223. Both the House bill and the Senate amendment permit a 
     State to grant a waiver for the minimum grant amount in cases 
     where the eligible recipient is located in a rural, sparsely 
     populated area; and demonstrates that they are unable to 
     enter into a consortium for purposes of providing services.
       The House recedes with a technical amendment.
       224. The Senate amendment, but not the House bill, requires 
     that any funds not allocated by reason of minimum grant award 
     for secondary school vocational education shall be 
     redistributed to local educational agencies.
       The House recedes with an amendment allowing an eligible 
     agency to redistribute funds to rural, poor areas.
       The Managers are concerned that not enough of the Federal 
     dollars are reaching rural, poor areas. Language is included 
     which creates a source of funds for eligible agencies to 
     distribute to high poverty rural areas which are often in 
     greater need. Funds for this purpose would come from funds 
     not distributed to districts which failed to qualify for the 
     minimum grant. These funds would be distributed only to poor, 
     rural areas that were ineligible to receive formula funds.
       225. The Senate amendment, but not the House bill, retains 
     current Perkins law prohibiting funds from being allocated to 
     a local educational agency that serves only elementary 
     schools.
       The House recedes.
       226. The Senate amendment retains current Perkins law in 
     allocating funds to area vocational education schools or 
     educational service agencies. The House bill provides funding 
     for area vocational education schools and educational service 
     agencies in the within State formula. (See Note 221a)
       The House recedes with an amendment striking the 
     requirement that area vocational schools serve more low-
     income or disabled students than the LEA.
       227. The Senate amendment, but not the House bill, retains 
     current Perkins law which provides that funds for 
     postsecondary and adult vocational education shall be 
     distributed according to the formula in current Perkins law 
     which gives priority to institutions serving Pell Grant and 
     Bureau of Indian Affairs recipients. The House bill provides 
     funding for postsecondary education in the within State 
     formula. (See Note 221a)
       The House recedes with an amendment striking the 
     reservation for corrections vocational education.
       227a. The Senate amendment, but not the House bill, allows 
     the Federal Partnership to waive the postsecondary and adult 
     vocational education formula in favor of a more equitable 
     distribution of funds upon application from the State 
     educational agency.
       The House recedes with an amendment striking the additional 
     criteria for the alternative formula.
       228. Both the House bill and the Senate amendment establish 
     minimum grant awards of $50,000 to postsecondary institutions 
     or consortium of such institutions.
       The House recedes.
       229. The House bill, but not the Senate amendment, allows 
     secondary-postsecondary institutions to form consortia to 
     receive grant funds with a minimum award of $50,000.
       The House recedes.
       230. The Senate amendment, but not the House bill, requires 
     that any funds not allocated by reason of minimum grant 
     awards for postsecondary and adult vocational education shall 
     be redistributed to eligible institutions.
       The House recedes.
       231. The House bill, but not the Senate amendment, prevents 
     consortium from forming to receive funds and then separate 
     immediately after and divide the funds. The House bill 
     further requires that consortia must form for the purposes 
     established under the youth development and career 
     preparation title and to stay in a consortia arrangement for 
     purposes of delivering services to youth.
       The Senate recedes with conforming amendments.
       232. The House bill, but not the Senate amendment, 
     establishes minimum grant awards of $15,000 for local 
     workforce development boards to serve at-risk/out-of-school 
     youth. (Section repeated. See Note 295)
       The House recedes.
       233. The Senate amendment requires States to reserve an 
     amount of funds from the amount they receive for 
     postsecondary and adult voational education to distribute to 
     State corrections agencies. The House bill allows States to 
     use funds from their 8% of State monies for corrections 
     education. (See Note 203)
       The House recedes with an amendment providing that 
     corrections institutions may receive funds for any of the 
     four authorized activities.
       234. The Senate amendment, but not the House bill, includes 
     definitions for ``eligible institution,'' low-income,'' and 
     ``Pell Grant recipient'' that only apply to the within State 
     formula.
       The House recedes with an amendment striking the references 
     to ``eligible institutions'' and ``low-income'' and moving 
     the definition of ``Pell Grant recipient'' to the general 
     definitions section.
     Local process for receipt of funds
       235. The house bill, but not the Senate amendment, states 
     that in order to receive a grant at the local level, the 
     local workforce development board and eligible institution(s) 
     must form a partnership. The purpose of the partnership is to 
     allow for collaborative planning, coordination of programs 
     serving in-school and at-risk/out-of-school youth and allow 
     for effective public participation. (See Note 296)
       The House recedes.
       236. Both the House bill and the Senate amendment provide 
     for a local application. (The Senate amendment has a separate 
     at-risk application. See related Note 297b)
       The House recedes with an amendment requiring local 
     entities to submit an application to the eligible agency for 
     vocational educational funds.
       236a. The House bill states that the partnership must 
     develop and submit for approval to the Governor, through the 
     State collaborative process, a comprehensive plan outlining 
     how they are planning to serve both in-school and at-risk/
     out-of-school youth.
       The House recedes.
       236b. The Senate amendment requires each eligible entity to 
     submit an application to the State educational agency for 
     funding of workforce education activities (including 
     vocational education activities for youth and adults). The 
     Senate amendment further includes a list of items to be 
     included in the application.
       The House recedes with an amendment modifying the local 
     application for vocational education funds.
       237. The House bill, but not the Senate amendment, requires 
     the partnership assure the involvement of parents, teachers 
     and the local community in the planning process. (See Note 
     298)
       The House recedes.
       238. The House bill, but not the Senate amendment, provides 
     that the Governor, through the collaborative process, is 
     authorized to develop procedures for the resolution of issues 
     in dispute. (See Note 299).
       The House recedes.
       239a. The House bill outlines that funds directed to the 
     local level from the State to serve in-school youth must go 
     to schools and eligible institutions. Funds directed to the 
     local level from the State to serve at-risk youth will be 
     sent to the local workforce development board to be 
     subgranted to eligible entities for programs to serve at-risk 
     and out-of-school youth.
       The House recedes.
       239b. The Senate amendment distributes secondary and 
     postsecondary workforce education funds by formula to 
     schools. (See Notes 221, 226, & 227). At-risk youth funds are 
     distributed by competitive grants to local entities. (See 
     Note 300).
       The House recedes.
     Adult education and literacy
       240. The House bill and the Senate amendment provide funds 
     for adult education and literacy. The House bill provides a 
     separate Adult Education and Family Literacy Block Grant. The 
     Senate amendment provides that the State educational agency 
     shall determine how workforce education funds are allocated 
     among secondary vocational education, postsecondary 
     vocational education and adult education and literacy 
     programs. (See Note 219).
       The Senate recedes on the requirement that the State 
     educational agency allocate workforce education funds.
       241. The House bill, but not the Senate amendment, requires 
     States to use 3% off the top of their Adult Education block 
     Grant to provide funds, on a competitive basis to local 
     service providers that have provided adult education or 
     family literacy services to certain target populations.
       The House recedes.
       242. The House bill provides that States may use no more 
     than 12% of funds received under the Adult Education block 
     Grant, after the deduction of the 3% for target populations, 
     for a variety of specified activities. The Senate amendment 
     lists 3 broad categories of permissible activities for which 
     20% of workforce education funds reserved at the State level 
     may be used.
       The Senate recedes with an amendment providing that not 
     more than 10 percent of adult education and literacy funds 
     may be spent for a variety of State activities, including 
     professional development, technical assistance, technology 
     assistance, regional literacy networks, and evaluation.
     Matching
       243. The House bill, but not the Senate amendment, requires 
     that a State receiving a grant shall spend, from non-Federal 
     funds, an amount equal to 25% of the State's initial and 
     additional allotments of the year for adult education and 
     family literacy services.
       The Senate recedes with technical amendments.
       244. The House bill, but not the Senate amendment, provides 
     that States may use no more than 3% of their block grant, or 
     $50,000, whichever is greater, for planning, administration, 
     interagency coordination and support for integrated career 
     center systems. The Senate amendment requires that 80% of a 
     State's funds for workforce education go to the local level, 
     and 20% for State activities (with no more than 5% of such 
     20%) for administration. (See Note 218a)
       The Senate recedes with an amendment providing that not 
     more than 5 percent or $50,000 (whichever is greater) of 
     adult education and literacy funds shall be spent on 
     administrative expenses.

[[Page H8441]]

       245. The Senate amendment, but not the House bill, sets a 
     local administrative cost limit of 5% on agencies, 
     organizations, institutions or consortiums which provide 
     adult education instructional activities. Such funds may be 
     used for planning, administration, personnel development and 
     interagency coordination.
       The Senate amendment further allows the State educational 
     agency to negotiate with grant recipients in cases where cost 
     limits would be too restrictive to permit them from carrying 
     out allowable activities.
       The House recedes with an amendment substituting the 
     references to ``State educational agency'' with ``eligible 
     agency.''
     Distribution
       246. The House bill and the Senate amendment provide for 
     the distribution of funds to local providers.
       Legislative counsel.
       246a. The House bill provides that States are to use 85% of 
     funds under the block grant to make grants, on a competitive 
     basis, to local service providers. The Senate amendment 
     provides that a State educational agency shall award grants 
     for adult education, on a competitive basis to eligible 
     entities and/or a consortia of such entities.
       The House recedes with an amendment requiring that 85 
     percent of the adult education and literacy funds be 
     allocated to local providers, and lists the entities eligible 
     for assistance.
       246b. The House bill and the Senate amendment have similar 
     lists of eligible entities, but the House provision is 
     contained under its ``equitable access'' provisions. (See 
     Note 247a)
       The House recedes with an amendment adding ``family 
     literacy services'' to a list of eligible entities.
       247. Both the House bill and the Senate amendment provide a 
     list of grant requirements.
       Legislative counsel.
       247a. Both the House bill and the Senate amendment include 
     a provision requiring direct and equitable access to all 
     eligible entities.
       The House recedes with an amendment substituting the 
     reference to ``State educational agency'' with ``eligible 
     agency'' and restricting the use of adult education and 
     literacy funds for programs that serve non-adult populations, 
     unless such programs are related to family literacy services.
       247b. The House bill, but not the Senate amendment, 
     requires a State to give priority to local service providers 
     which demonstrate joint planning with local workforce 
     development boards and integrated career center systems.
       The House recedes.
       247c. The Senate amendment, but not the House bill, 
     requires States to consider the past effectiveness of 
     applicants in providing services, the degree to which the 
     applicant will coordinate and utilize other literacy and 
     social services available in the community and the commitment 
     of the applicant to serve those in the community who are most 
     in need of literacy services.
       The House recedes with technical amendments.
       248. The Senate amendment, but not the House bill, allows a 
     State educational agency under certain circumstances to award 
     a grant to a consortium that includes an eligible entity and 
     a for-profit agency, organization or institution.
       The House recedes with a technical amendment.
       249. The House bill, but not the Senate amendment, allows a 
     local service provider which receives a grant from a State 
     under this subtitle to negotiate with a local workforce 
     development board with respect to receipt of payments for 
     adult education and literacy services provided by a provider 
     to adults referred to the provider by a program supported by 
     other titles of the House bill.
       The House recedes.
       250. The House bill, but not the Senate amendment, 
     authorizes a local service provider receiving a grant under 
     this block grant to receive payment for adult education and 
     literacy services provided to an adult participating in 
     programs authorized under other titles of the House bill, 
     either in the form of a career grant or by some other means.
       The House recedes.
       251. The Senate amendment, but not the House bill, requires 
     each eligible entity to submit an application to the State 
     educational agency for funding of workforce education 
     activities (including adult education activities). (See Note 
     236b)
       The Senate recedes.
     Use of funds
       252. The House bill requires that local services providers 
     which receive a grant must use such grant to establish or 
     operate one or more programs that provide instruction or 
     services within one or more of the following categories: 
     adult basic education, adult secondary education, English 
     literacy instruction, and family literacy services.
       The Senate amendment lists literacy and basic education 
     services for adults and out-of-school youth, including adults 
     and out-of-school youth in correctional institutions and 
     programs for adults and out-of-school youth to complete their 
     secondary education among their list of Workforce Education 
     Activities. (See Senate Section 106(b)(4)(5))
       The Senate recedes with an amendment requiring that adult 
     education and literacy funds at the local level be used for 
     adult education services, English literacy services, and 
     family literacy services.
     National Literacy Act
       253. Both the House bill and the Senate amendment allocate 
     funds for the National Institute of Literacy.
       The House bill reserves $4.5 million in each fiscal year 
     for the National Institute for Literacy. Such funds are 
     reserved at the Federal level before distribution to the 
     States.
       The Senate amendment reserves 0.15% of the $5,884,000,000 
     authorization ($8,830,000) for four programs, including funds 
     for the National Institute for Literacy.
       The Senate recedes with an amendment authorizing the 
     appropriation of $10 million for fiscal year 1997 and such 
     sums through fiscal year 2002 for the National Institute for 
     Literacy.
       254. Both the House bill and the Senate amendment establish 
     the National Institute for Literacy.
       The House bill requires the Institute to be administered 
     under the terms of an interagency agreement entered into by 
     the Secretary of Education with the Secretaries of Labor and 
     Health and Human Services (the Interagency Group).
       The Senate amendment requires the Institute to be 
     administered by the Federal Partnership established under the 
     Workforce Development Act of 1995.
       The Senate recedes.
       255. Both the House bill and the Senate amendment allow the 
     inclusion in the Institute of any research and development 
     center, institute or clearinghouse whose purpose is related 
     to the purpose of the Institute.
       Legislative counsel.
       256. The Senate amendment, but not the House bill, requires 
     the Institute to have offices separate from the offices of 
     the Department of Education or the Department of Labor.
       The House recedes.
       257. Both the House bill and the Senate amendment require 
     the Interagency Group (Federal Partnership) to consider 
     recommendations of the National Institute for Literacy 
     Advisory Board (National Institute Council) in planning the 
     goals of the Institute and implementing programs to achieve 
     such goals. Both the House bill and the Senate amendment 
     require the daily operations to be carried out by the 
     Director of the Institute.
       The Senate amendment, but not the House bill, requires the 
     Federal Partnership to provide a written explanation to the 
     Council if it does not follow the Council's recommendations 
     and allows the Council to request a meeting to discuss the 
     Council's recommendations.
       The Senate recedes.
       258. Both the House bill and the Senate amendment set forth 
     the duties and activities of the Institute, with differences.
       The Senate recedes with an amendment listing the activities 
     for the National Institute for Literacy.
       259. Both the House bill and the Senate amendment permit 
     the Institute to award fellowships with stipends and 
     allowances which the Director considers necessary to 
     outstanding individuals pursuing careers in adult education 
     or literacy.
       Legislative counsel.
       260. Both the House bill and the Senate amendment provide 
     that such fellowships be used to engage in research, 
     education, training, technical assistance or other activities 
     to advance the field of adult education or literacy.
       Legislative counsel.
       261. The Senate amendment, but not the House bill requires 
     individuals receiving fellowships to be called ``Literacy 
     Leader Fellows.''
       The Senate recedes.
       262. The House bill, but not the Senate amendment, allows 
     the Institute to award paid and unpaid internships to 
     individuals seeking to help the Institute. The House bill 
     allows the Institute to accept and use voluntary and 
     uncompensated services as they deem necessary.
       The Senate recedes.
       263. The House bill establishes the National Institute for 
     Literacy Advisory Board. The Senate amendment establishes the 
     National Institute Council.
       The Senate recedes.
       263a. Both entities serve in an advisory capacity and 
     consist of ten individuals appointed by the President with 
     the advice and consent of the Senate.
       The Senate recedes.
       263b. Both the House bill and the Senate amendment require 
     that such individuals may not otherwise be officers or 
     employees of the Federal Government and be representative of 
     entities or groups described in Note 264.
       The Senate recedes.
       263c. The Senate amendment requires such individuals to be 
     chosen from recommendations made to the President by 
     individuals who represent such entities or groups.
       The Senate recedes.
       264. Both the House bill and the Senate amendment describe 
     the entities or groups from which members are to be chosen. 
     The only differences are that: (a) the House bill, but not 
     the Senate amendment, includes providers of programs and 
     services involving English language instruction; and (b) the 
     House bill refers to ``representatives of employees'' and the 
     Senate amendment refers to ``organized labor.''
       The Senate recedes.
       265. Both the House bill and the Senate amendment contain a 
     list of duties for the Board (Council). The duties are the 
     same.

[[Page H8442]]

       The Senate recedes.
       266. The Senate amendment, but not the House bill, requires 
     the Council to be subject to the provisions of the Federal 
     Advisory Committee Act.
       The House recedes with an amendment substituting the 
     reference to ``Council'' with ``Board.''
       267. Both the House bill and the Senate amendment limit the 
     term of members of the Board (Council) to three years. The 
     Senate amendment prohibits a member from being appointed for 
     not more than two consecutive terms. The House bill requires 
     that initial terms for members may be one, two or three years 
     in order to establish a rotation in which one-third of the 
     members are selected each year.
       The Senate recedes with an amendment requiring that any 
     member of the Board may not be appointed for more than 2 
     consecutive terms.
       268. Both the House bill and Senate amendment contain the 
     same provisions for appointing members to fill a vacancy 
     which occurs before the expiration of the term for which a 
     member was appointed.
       The Senate recedes.
       269. Both the House bill and the Senate amendment contain 
     provisions regarding the number of members required to 
     constitute a quorum but allow a lesser number to hold 
     hearings. Both the House bill and Senate amendment require 
     that recommendations be passed only by a majority of its 
     members.
       The Senate recedes.
       270. Both the House bill and Senate amendment provide for 
     the election of a chairperson and vice chairperson. The House 
     bill provides that each shall serve for a term of one year. 
     The Senate amendment permits such individuals to serve for 
     two years.
       The House recedes.
       271. Both the House bill and the Senate amendment provide 
     that the Board (Council) shall meet at the call of the 
     chairperson or a majority of its members.
       The Senate recedes.
       272. Both the House bill and the Senate amendment provide 
     for gifts, bequests and devises.
       The House bill allows the Institute to accept, administer 
     and use gifts or donations of services, money or property, 
     both real and personal.
       The Senate amendment allows the Institute and the Council 
     to accept (but not solicit), use, and dispose of gifts, 
     bequests or devices of services or property for the purpose 
     of aiding or facilitating the work of the Institute or 
     Council. The Senate amendment requires such gifts, bequests 
     or devices of money and proceeds from sales of other property 
     to be deposited in the Treasury and be available for 
     disbursement upon order of the Institute or the Council.
       The Senate recedes.
       273. Both the House bill and the Senate amendment permit 
     the Board (Council) and the Institute to use the mails in the 
     same manner as other departments and agencies.
       The Senate recedes.
       274. Both the House bill and the Senate amendment provide 
     that the Interagency Group (Federal Partnership), after 
     considering recommendations of the Board (Council) is to 
     appoint and fix the pay of the Director. The Senate amendment 
     provides that the Director of the Federal Partnership is also 
     to appoint and fix the pay of the staff of the Institute.
       The Senate recedes.
       275. Both the House bill and the Senate amendment contain 
     provisions regarding the applicability of certain Civil 
     Service laws.
       Legislative counsel.
       276. Both the House bill and the Senate amendment contain 
     identical provisions with respect to experts and consultants.
       The Senate recedes.
       277. Both the House bill and the Senate amendment require 
     the Institute to submit a biennial report.
       The House recedes.
       277a. The House bill requires the report be submitted to 
     the Interagency Group and the Congress. The Senate amendment 
     requires the report be submitted to the appropriate 
     committees of Congress.
       The House recedes.
       277b. The Senate amendment also includes a list of items 
     which must be included in such report.
       The House recedes with technical amendments.
       278. The Senate amendment, but not the House bill, provides 
     that funds 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, may be provided to the 
     Institute.
       The House recedes with an amendment striking the reference 
     to ``the Federal Partnership.''
       279. Both the House bill and the Senate amendment address 
     State or Regional Adult Literacy Resources Centers.
       The Senate amendment specifically provides for the 
     establishment of a network of State or regional adult 
     literacy resource centers to assist State and local public 
     and private nonprofit efforts to eliminate illiteracy. The 
     House bill allows States and the Department of Education to 
     fund these activities. (See Notes 242 & 282)
       The House and Senate recede.
       280. The House bill repeals the National Workforce Literacy 
     Assistance Collaborative. (See Note 449a.) The Senate 
     amendment repeals the authorization of appropriations for the 
     National Workforce Literacy Assistance Collaborative.
       The Senate recedes.
       280a. Both the House bill and the Senate amendment repeal 
     the Family Literacy Public Broadcasting Program. (See Note 
     449a for House repeal)
       The Senate recedes.
       281. The Senate amendment, but not the House bill, extends 
     through the year 2001 the separate program providing literacy 
     for incarcerated individuals. The House bill repeals this 
     program. (See Note 449a for House repeal)
       The House recedes.
       282. The House bill, but not the Senate amendment, requires 
     the Secretary of Education to carry out a program of national 
     leadership and evaluation activities to enhance the quality 
     of adult education and family literacy programs nationwide. 
     The House bill outlines the list of authorized activities, 
     includes the information to be received from a national 
     evaluation, and allows the Secretary to carry out activities 
     directly or through grants, contracts and cooperative 
     agreements.
       The House recedes.
     At-risk youth
       283. The House bill, but not the Senate amendment, grants 
     general authority for local workforce development boards to 
     subgrant to providers for programs that serve at-risk and 
     out-of-school youth. (See Note 207)
       The Senate recedes with an amendment providing authority to 
     carry out at-risk youth activities.
       284. The Senate amendment, but not the House bill, grants 
     authority to the Secretary of Labor and Secretary of 
     Education, acting jointly on the advice of the Federal 
     Partnership, to make allotments to States to enable the 
     Secretary of Labor and the States to carry out at-risk youth 
     programs. (See Note 208)
       The Senate recedes.
       285. The Senate amendment, but not the House bill, requires 
     the Secretary of Labor to continue funding for Job Corps 
     centers who received assistance under part B of title IV JTPA 
     in FY 1996 and which were not closed under section 156. (See 
     Note 209)
       The Senate recedes.
       286. The Senate amendment, but not the House bill, requires 
     States to use a portion of the funds reserved for Indians and 
     Native Hawaiians to make grants to eligible entities to run 
     summer job programs and provide work-based learning 
     opportunities that are directly linked to year-round school-
     to-work activities. Senate amendment requires that no funds 
     shall be used to displace employed workers. (See Note 210)
       [Statutory cite to subsection (c)(3) is incorrect. 
     Statutory cite should be subsection (c)(4) which is the 
     allotment for at-risk youth.]
       The Senate recedes.
       287. The House bill, but not the Senate amendment, lists 8 
     program elements which local workforce development boards are 
     required to provide for at-risk and out-of-school youth. (See 
     Note 286 for the Senate amendment's required activities)
       The Senate recedes with an amendment providing required 
     program elements for at-risk youth activities.
       288. The House bill lists additional permissible uses of 
     funds by eligible providers at the local level for at-risk 
     and out-of-school youth programs. (See Note 212). The Senate 
     amendment permits States to make grants to eligible entities 
     to carry out alternative programs or other activities for at-
     risk youth programs. The activities are not specifically 
     listed.
       The Senate recedes with an amendment providing additional 
     program elements for at-risk youth activities.
       289. The House bill, but not the Senate amendment, limits 
     administrative funds used by local workforce development 
     boards to no more than 10%. (See Note 213)
       The House recedes.
       290. The House bill, but not the Senate amendment, does not 
     permit local workforce boards to operate programs (See Note 
     195), and requires that they subcontract to eligible 
     providers. (See Note 214)
       The Senate recedes with an amendment prohibiting a local 
     workforce development board from operating programs, but 
     allowing the local board to contract with eligible providers 
     of at-risk youth activities of demonstrated effectiveness.
       291. The House bill, but not the Senate amendment, lists 
     eligible providers to receive contracts from the local 
     workforce development board including: (1) eligible 
     institutions including local educational agencies; 
     postsecondary institutions including community colleges, 
     State corrections educational agency and any consortia of the 
     aforementioned list; (2) local government entities; (3) 
     private, nonprofit organizations including community based 
     organizations; (4) private, for-profit entities; or (5) other 
     organizations or entities that have a demonstrated 
     effectiveness and have been approved by the local workforce 
     development board. (See Note 215)
       The Senate recedes with an amendment allowing Governors or 
     local workforce development boards to approve other 
     organizations or entities of demonstrated effectiveness as 
     eligible providers of at-risk youth activities.
       The Managers recognize the demonstrated effectiveness of 
     the Center for Employment and Training (CET), the Youth Build 
     Program, the Employability Program developed at North Omaha's 
     Sacred Heart School (which helps students in a low-income 
     minority district with high unemployment to

[[Page H8443]]

     obtain skills needed to retain meaningful employment), and 
     the Opportunities Industrialization Centers of America in 
     providing employment education, training, and placement 
     services to at-risk youth. While it is recognized that States 
     and local workforce development boards require flexibility in 
     choosing the most appropriate training models to meet their 
     individual needs, it is the Managers' intent, where possible, 
     that exemplary models of demonstrated effectiveness such as 
     CET be replicated on the State and local levels.
       292. The Senate amendment, but not the House bill, provides 
     that at-risk youth funds be expended in accordance with the 
     State's laws and procedures. (See Note 112)
       The Senate recedes.
     Allocations for State/local programs
       293. Both the House bill and the Senate amendment have a 
     within State allocation. (See related Note 218)
       The House recedes with a technical amendment.
       293a. The House bill requires that not less than 90% of a 
     State's funds for the youth grant go to the local level to 
     serve in-school and at-risk/out-of-school youth, not more 
     than 8% for State programs and not more than 2% for 
     administration. The Senate amendment requires that 85% of a 
     State's funds for at-risk youth activities go to the local 
     level and 15% for State activities.
       The House recedes with an amendment distributing funds for 
     at-risk youth activities and outlining the development of a 
     within State formula that must take into account certain 
     factors for the distribution of local funds. The amendment 
     further outlines the awarding of grants. Funds are 
     distributed as follows: 75 percent to local workforce 
     development areas; 21 percent to the Governor; and 4 percent 
     for administrative purposes at the State level.
       294. The House bill, but not the Senate amendment, requires 
     that of the 90% of funds sent to the local level, not less 
     than 40% of the funds must be used for programs to serve at-
     risk and out-of-school youth. Of the remaining 20% of funds, 
     the Governor, through the collaborative process, can 
     distribute one-half of the remaining funds by formula and 
     one-half by either discretionary grant or formula. (See Note 
     220)
       The House recedes.
       295. The House bill, but not the Senate amendment, 
     establishes minimum grant awards of $15,000 for local 
     workforce development boards to serve at-risk/out-of-school 
     youth. (See Note 232)
       The House recedes.
       296. The House bill, but not the Senate amendment, states 
     that in order to receive a grant at the local level, the 
     local workforce development board and eligible institution(s) 
     must for a partnership. The purpose of the partnership is to 
     allow for collaborative planning, coordination of programs 
     serving in-school and at-risk/out-of-school youth and allow 
     for effective public participation. (See Note 235)
       The House recedes.
       297. Both the House bill and the Senate amendment provide 
     for a local application.
       The House recedes.
       297a. The House bill states that the partnership must 
     develop and submit for approval to the Governor, through the 
     State collaborative process, a comprehensive plan outlining 
     how they are planning to serve both in-school and at-risk/
     out-of-school youth. (See Note 236)
       The House recedes.
       297b. The Senate amendment requires eligible entities to 
     submit an application to the Governor for funding of certain 
     at-risk youth activities.
       The House recedes with an amendment requiring entities to 
     submit a local application in order to receive funding.
       298. The House bill, but not the Senate amendment, requires 
     the partnership to assure the involvement of parents, 
     teachers and the local community in the planning process. 
     (See Note 237)
       The House recedes.
       299. The House bill, but not the Senate amendment, provides 
     that the Governor, through the collaborative process, is 
     authorized to develop procedures for the resolution of issues 
     in dispute. (See Note 238)
       The House recedes.
       300. The House bill outlines that funds directed to the 
     local level from the State to serve at-risk and out-of-school 
     youth will be sent to the local workforce development board 
     to be subgranted to eligible entities. The Senate amendment 
     distributes funds for at-risk youth programs to local 
     entities in part by competitive grants. (See Note 239b for 
     House provision, and Note 297 for Senate provision.)
       The House recedes.
     Job Corps
       301. The Senate amendment contains provisions regarding Job 
     Corps. The House bill has no comparable provisions, but 
     retains Job Corps under current law.
       The House recedes.
       302. The Senate amendment, but not the House bill, provides 
     for definitions relating to Job Corps which includes a 
     definition for ``at-risk youth''. (See Note 15 for House 
     definition of ``at-risk 75 youth''.)
       The House recedes with an amendment striking the definition 
     of at-risk youth.
       303. The Senate amendment, but not the House bill, provides 
     specific purposes for Job Corps.
       The House recedes.
       304. The Senate amendment, but not the House bill, 
     establishes a Job Corps program in the Department of Labor.
       The House recedes with an amendment striking the reference 
     to the ``National Board''.
       305. Under the Senate amendment, but not the House bill, 
     only at risk youth are eligible for Job Corps.
       The House recedes with an amendment providing requirements 
     to be eligible to become an enrollee of the Job Corps 
     program.
       306. The Senate amendment, but not the House bill, requires 
     the Secretary of Labor to prescribe procedures for screening 
     and selecting applicants, after consultation with States and 
     localities.
       The House recedes with an amendment striking the references 
     to State workforce development boards and local partnerships.
       306a. The Senate amendment, but not the House bill, lists 
     requirements for such screening and selection, provides for 
     their implementation, and requires consultation with 
     individuals and organizations.
       The House recedes with an amendment requiring that in 
     addition to other factors, the Secretary of Labor assure that 
     Job Corps enrollees include an appropriate number of 
     candidates selected from rural areas.
       306b. The Senate amendment, but not the House bill, 
     contains special limitations on enrollees.
       The House recedes.
       307. The Senate amendment, but not the House bill, provides 
     requirements for the enrollment in, and assignment to, Job 
     Corps centers.
       The House recedes.
       308. The Senate amendment, but not the House bill, provides 
     for the eligibility and selection of operators of Job Corps 
     Centers, the character and activities of those centers, and 
     special provisions for Civilian Conservation Centers and 
     centers operated by Indian Tribes.
       The House recedes.
       309. The Senate amendment, but not the House bill, requires 
     Job Corps centers to provide workforce development activities 
     to meet the needs of enrollees through or in coordination 
     with the statewide system. The Senate amendment also requires 
     the Secretary of Labor to establish a job placement 
     accountability system for Job Corps Centers.
       The House recedes with an amendment requiring the Secretary 
     of Labor to establish a fiscal and management accountability 
     system for Job Corps centers and to coordinate its 
     activities, carried out through the fiscal and management 
     accountability systems for States, if any.
       309a. The Senate amendment, but not the House bill, 
     provides for advance career training programs for certain Job 
     Corps enrollees.
       The House recedes.
       309b. The Senate amendment, but not the House bill, 
     provides for full benefits or a montly stipend for 
     participants in an advanced training program.
       The House recedes.
       310. The Senate amendment, but not the House bill, provides 
     for personal allowances for Job Corps enrollees.
       The House recedes.
       311. The Senate amendment, but not the House bill, requires 
     center operators to submit a plan to the Secretary of Labor 
     for approval. The Senate amendment lists the requirements for 
     such plan.
       The House recedes with conforming and technical changes.
       312. The Senate amendment, but not the House bill, requires 
     the Secretary of Labor to provide standards of conduct, 
     including a zero tolerance policy for violence and drug 
     abuse, to be enforced by the center directors.
       The House recedes.
       313. The Senate amendment, but not the House bill, directs 
     the Secretary of Labor to encourage community participation 
     and establishes a selection panel for center operators. The 
     Senate amendment also requires each center director to engage 
     in certain community outreach efforts.
       The House recedes with conforming and technical changes.
       314. The Senate amendment, but not the House bill, directs 
     the Secretary of Labor to ensure that Job Corps enrollees 
     receive counseling and placement.
       The House recedes.
       315. The Senate amendment, but not the House bill, 
     authorizes the Secretary of Labor to use advisory committees 
     to assist Job Corps activities.
       The House recedes.
       316. The Senate amendment, but not the House bill, provides 
     that Job Corps enrollees are not to be considered Federal 
     employees except with respect to the Internal Revenue Code, 
     the Social Security Act, Federal workers' compensation, and 
     Federal tort claims.
       The House recedes.
       317. The Senate amendment, but not the House bill, contains 
     special provisions relating to Job Corps, including directing 
     the Secretary of Labor to take steps to achieve an enrollment 
     of 50% women, State tax exemptions, and minimum management 
     fee requirements.
       The House recedes.
       318. The Senate amendment, but not the House bill, provides 
     for a review of all Job Corps Centers by March 31, 1997, and 
     lists the requirements for such review.
       The House recedes with an amendment requiring the Secretary 
     of Labor to establish a National Job Corps Review Panel 
     consisting of nine persons to conduct a review of Job Corps 
     activities to be completed not later than July 31, 1997.

[[Page H8444]]

       318a. The Senate amendment, but not the House bill, 
     requires the National Board to make recommendations to the 
     Secretary of Labor on how to improve Job Corps, including the 
     closure of 5 centers by September 30, 1997 and 5 centers by 
     September 30, 2000.
       The House recedes with an amendment striking all references 
     to the ``National Board'' and inserting ``National Job Corps 
     Review Panel''.
       318b. The Senate amendment, but not the House bill, 
     provides that the National Board take into account specific 
     considerations in recommending the closure of centers.
       The House recedes with an amendment striking all references 
     to the ``National Board'' and inserting ``National Job Corps 
     Review Panel''.
       318c. The Senate amendment, but not the House bill, 
     requires the National Board to submit a report of its 
     findings not later than June 30, 1997.
       The House recedes with an amendment striking all references 
     to the ``National Board'' and inserting ``National Job Corps 
     Review Panel'', and changing the date the report must be 
     submitted from June 30 to August 30, 1997.
       318d. The Senate amendment, but not the House bill, 
     requires the Secretary to implement improvements in Job 
     Corps, including the closure of 10 centers, and report 
     annually to Congress.
       The House recedes with an amendment requiring the Secretary 
     of Labor, if initiating a new Job Corps center, to make it a 
     priority on placing Job Corps centers in those States without 
     existing Job Corps centers.
       The Managers intend that the States without existing Job 
     Corps Centers receive a priority, but that the quality of 
     applications continue to be a primary consideration.
       319. The Senate amendment, but not the House bill, provides 
     for the Secretary of Labor to carry out his responsibilities, 
     notwithstanding other provisions of the title.
       The House recedes.
       320. The Senate amendment, but not the House bill, has an 
     effective date of July 1, 1998 for the Job Corps provisions, 
     except for the report, which will begin immediately.
       The House recedes.


                   employment and training activities

     One-stops/integrated career center system
       321. The House bill requires the Governor to ensure the 
     establishment of an integrated career center system by local 
     workforce boards within each workforce development area. The 
     Senate amendment has no comparable provisions. (See Note 134)
       The Senate recedes with an amendment requiring States to 
     establish one-stop career center systems.
       322. The House bill, but not the Senate amendment, requires 
     the Governor, through the collaborative process, to establish 
     statewide criteria for selecting career center providers. 
     (See Note 135)
       The House recedes.
       323. Both the House bill and the Senate amendment require 
     States to implement a statewide approach to the delivery of 
     employment and training, based on the concept of integrated 
     or one-stop career centers, although the requirements of each 
     bill differ. (See Note 136)
       The Senate recedes with conforming amendments.
       323a. The House bill requires a system where common intake, 
     assessment, and job search are provided. The Senate amendment 
     provides as an option, a system where core services are 
     provided, regardless of point of entry.
       The House recedes with an amendment providing that core 
     services may be provided through a network that assures 
     participants that such services will be available regardless 
     of where the participants initially enter the statewide 
     system, including through multiple, connected access points, 
     linked electronically or technologically.
       323b. Both the House bill and Senate amendment allow for 
     access points that are electronically or computer linked. The 
     House bill further provides for the availability of labor 
     market information and common management information across 
     the system
       The House and Senate recede.
       323c. The House bill requires at least one physical, co-
     located career center (to the extent practicable), but 
     encourages a network of such centers combined with affiliated 
     sites. The Senate amendment provides as an option, that there 
     are core services available at not less than one physical 
     location in each substate area, and also allows for a 
     combination of the options listed above.
       The House recedes with an amendment providing that core 
     services may be provided through a network of career centers 
     which can provide core services and services authorized under 
     the Wagner-Peyser Act to individuals; at not less than one 
     physical, co-located center in each workforce development 
     area of the State, which provides comprehensive core services 
     to individuals seeking such services; or through some 
     combination of the options described in this section.
       323d. The House bill requires that labor market information 
     compiled pursuant to title II of the Wagner-Peyser Act be 
     available through all career centers and affiliated sites. 
     The Senate amendment has no comparable provision.
       The Senate recedes with an amendment providing that labor 
     market information, shall be available through the one-stop 
     career center system.
       323e. The House bill, but not the Senate amendment, 
     provides that an entity or consortium of entities in a local 
     workforce area may be designated by the local board to 
     operate a career center, and lists certain eligible entities.
       The Senate recedes with an amendment listing public and 
     private eligible providers that may be designated or 
     certified to operate a one-step career center. The amendment 
     also includes an exception providing that elementary and 
     secondary schools shall not be eligible to operate a one-stop 
     career center.
       324. Both the House bill and Senate amendment list core 
     services to be provided through integrated career centers or 
     one-stop delivery system.
       The House recedes.
       324a. The House bill requires that core services be 
     provided on a universal and non-discriminatory basis, with 
     reasonable accommodations for individuals with disabilities. 
     The Senate amendment contains no such specific provision, but 
     also does not restrict eligibility for core services.
       The House recedes with an amendment providing that core 
     services shall be available to all individuals seeking such 
     services.
       324b. Both the House bill and Senate amendment require that 
     outreach and intake for services be available, and the Senate 
     amendment includes orientation to services available through 
     the one-stop.
       The House recedes.
       324c. Both the House bill and Senate amendment include 
     initial assessment of skill levels, service needs, and need 
     for supportive services. However, the two bills differ in 
     what is to be specifically assessed.
       The House recedes.
       324d. Both the House bill and Senate amendment require job 
     search assistance (the Senate amendment also specifies 
     placement assistance), and career counseling, although the 
     Senate amendment provides for career counseling where 
     appropriate. The House bill also includes career planning 
     based on a preliminary assessment.
       The House recedes.
       324e. Both the House bill and Senate amendment provide for 
     information related to the local labor market. However the 
     language differs as to what is required.
       The Senate recedes with an amendment providing that one-
     stop career center systems shall provide accurate labor 
     market information relating to local and State, and if 
     appropriate, to regional or national occupations in demand 
     and skill requirements for such occupations, where available.
       324f. The Senate amendment provides for information on the 
     quality and availability of other workforce employment, 
     education, and vocational rehabilitation activities, and for 
     referral to such programs. The House bill also provides such 
     information and referral to programs, but refers to specific 
     programs.
       The House recedes with an amendment providing that one-stop 
     career centers shall provide accurate information relating to 
     the quality and availability of workforce and career 
     development activities and vocational rehabilitation 
     activities; referrals to such programs; and the provision of 
     information related to adult education and literacy 
     activities through cooperative efforts with eligible 
     providers of such activities.
       324g. The House bill requires that information on 
     eligibility for Federal education and training programs be 
     provided. The Senate amendment requires such information on 
     forms of public financial assistance.
       The Senate recedes with an amendment requiring one-stop 
     career centers to provide eligibility information relating to 
     unemployment compensation, publicly-funded education and 
     training programs, and forms of public financial assistance, 
     such as student aid programs, that may be available in order 
     to enable individuals to participate in workforce and career 
     development activities.
       324h. The House bill, but not the Senate amendment, 
     requires that information on the performance of programs be 
     available through career centers.
       The Senate recedes with an amendment requiring one-stop 
     career centers to provide performance information on eligible 
     training providers.
       324i. The Senate amendment, but not the House bill, 
     requires that customized screening and referral be provided.
       The Senate recedes.
       324j. The Senate amendment, but not the House bill, 
     requires information on performance of the substate area with 
     respect to the State benchmarks.
       The House recedes with an amendment requiring one-stop 
     career centers to provide information on how the local 
     workforce development areas are performing on their local 
     benchmarks, and any additional performance information 
     provided by the local boards.
       324k. The House bill, but not the Senate amendment, 
     requires career centers to accept applications for 
     unemployment compensation. The Senate amendment allows States 
     to co-locate with unemployment compensation services. (See 
     Note 327)
       The House recedes.
       325. The House bill, but not the Senate amendment, 
     specifies that career centers or affiliated sites may serve 
     as the point of distribution of career grants.
       The Senate recedes with an amendment providing that a one-
     stop career center may serve as the point of distribution of 
     career grants for the purchase of training services.
       326. The House bill, but not the Senate amendment, allows 
     career center systems to contract out for core services for 
     individuals with severe disabilities.
       The House recedes.
       327. Both the House bill and Senate amendment contain 
     different permissible or additional services that may be 
     provided through

[[Page H8445]]

     the integrated career center or one-stop delivery systems.
       The House recedes with conforming amendments and inserting 
     additional discretionary one-stop activities.
       328. The House bill, but not the Senate amendment, permits 
     the Governor, through the collaborative process, to develop 
     alternatives to the integrated career center system, subject 
     to the approval of the Secretaries
       The House recedes.
     Employment and training use of funds
       329. The Senate amendment, but not the House bill, requires 
     the following use of funds for workforce employment 
     activities: one-stop delivery of core services; establishment 
     of a labor market information system; and establishment of a 
     job placement accountability system.
       The Senate amendment also permits the use of funds for: 
     permissible one-stop activities; other permissible training 
     activities; staff development; incentive grants; and the 
     provision of training services through vouchers.
       The House recedes with an amendment requiring that funds 
     made available to a State and local workforce development 
     areas for employment and training activities shall be used to 
     carry out required State and local employment and training 
     activities; to conduct a career grant pilot program; and may 
     be used to carry out permissible State and local employment 
     and training activities.
       330. The House bill, but not the Senate amendment, requires 
     that certain mandatory activities be conducted by the State, 
     from funds reserved by the Governor under the Adult 
     Employment and Training grant, including: rapid response 
     activities; and additional assistance for other worker 
     dislocation events.
       The Senate recedes with an amendment requiring States to 
     use a portion of their State-held employment and training 
     funds for rapid response assistance; labor market 
     information; and to conduct evaluations.
     Discretionary activities
       331. Both the House bill and the Senate amendment list 
     certain discretionary activities. The House bill, not the 
     Senate amendment, specifically lists certain activities to be 
     carried out by the State, and funded from the Governor's 
     reserve. Under the Senate amendment's, permissible activities 
     under section 106(a)(6) (A) through (N) are listed below, 
     starting with Note 333b.
       The House recedes with an amendment inserting a new title 
     ``PERMISSIBLE STATE ACTIVITIES'', with conforming and 
     technical changes.
       331a. Both the House bill and the Senate amendment allow 
     funds to be used for staff development and training, but the 
     House bill further allows for capacity building.
       The House recedes with an amendment allowing a State to use 
     State funds to provide professional development and technical 
     assistance.
       331b. Both the House bill and the Senate amendment allow 
     for incentive grant awards, but the House bill further allows 
     for research and demonstration.
       The House recedes with an amendment allowing a State to use 
     State funds to provide incentive grants to workforce 
     development areas for exemplary performance in reaching or 
     exceeding benchmarks.
       331c. In addition, the House bill allows States to use 
     State reserve funds for incumbent worker training; assistance 
     for career center systems; support for a common management 
     information system; and training in nontraditional 
     employment.
       The House recedes with an amendment allowing additional 
     permissible State activities including; certain economic 
     development activities; implementation of efforts to increase 
     the number of individuals trained and placed in 
     nontraditional employment; other employment and training 
     activities that the State deems necessary to assist local 
     workforce development areas; a fiscal and management 
     accountability system; the establishment of the one-stop 
     career center system; and the career grant pilot program.
       332. The House bill requires that adult employment and 
     training grant funds be used to provide core services to 
     adults through career center systems. The Senate amendment 
     requires that workforce employment funds be used to provide 
     core services through one-stop delivery. (See Note 324)
       The House recedes.
       333. The House bill, but not the Senate amendment, requires 
     that adult employment training grant funds be used to provide 
     intensive services, through career center systems, to adults 
     who are unable to obtain employment through core services, 
     but provides discretion on the types of services. The Senate 
     amendment provides that intensive services are a permissible 
     one-stop delivery activity. (See Note 327)
       The Senate recedes with an amendment providing that funds 
     made available to local workforce development areas shall be 
     used to provide core services to individuals through the one-
     stop career center system of the State; and to provide 
     training services to individuals who are unable to obtain 
     employment through the core services and who after an 
     interview, evaluation or assessment, and counseling, have 
     been determined to be in need of training services.
       333a. The House bill, but not the Senate amendment, 
     specifies that intensive services may include: comprehensive 
     and specialized assessments; individual employment plans; 
     identification of employment goals; group or individual 
     counseling and career planning; case management; and follow 
     up counseling for up to 1 year.
       The House recedes.
       333b. Both the House bill and the Senate amendment permit 
     the use of funds for case management and follow-up services.
       The Senate recedes with an amendment authorizing training 
     services which may include occupational skills training; on-
     the-job-training; skills upgrading and retraining for persons 
     not in the workforce; and basic skills training when in 
     combination with at least one of the other services listed.
       334. The House bill requires that adult employment training 
     grant funds be used to provide education and training 
     services for only those adults who are unable to obtain 
     employment through core or intensive services, and who are 
     unable to obtain other grant assistance, but provides 
     discretion on the types of education and training services. 
     The Senate amendment does not require funds to be spent on 
     such training activities, nor are there prerequisites for 
     obtaining such services.
       The Senate recedes with an amendment requiring that funds 
     may be used to provide training services for individuals who 
     are unable to obtain other grant assistance for such 
     services, including Federal Pell grants established under 
     title IV of the Higher Education Act of 1965; or who require 
     assistance beyond that made available from other grant 
     assistance programs including Federal Pell grants. The 
     amendment also provides that training services may be 
     provided to an individual while an application for a Pell 
     grant is pending, provided that if such individual is 
     subsequently awarded a Pell grant, appropriate reimbursement 
     is made to the workforce development area from such Pell 
     grant.
       334a. The House bill and the Senate amendment include 
     comparable training services as permissible uses of funds, 
     but also include different additional services.
       The House recedes.
       334b. The House bill permits funds to be used for remedial 
     education and literacy programs. The Senate amendment 
     provides for such services under workforce education 
     activities.
       The House recedes.
       334c. Both the House bill and the Senate amendment allow 
     for: occupational skills training, on-the-job training, 
     programs that combine workplace training with related 
     instruction; skill upgrading and retraining; entrepreneurial 
     training; employability training; and customized training. 
     The House bill also allows private sector training. The 
     Senate amendment also includes: preemployment training for 
     youth; rapid response assistance; connecting activities for 
     businesses to provide work-based learning for youth; and 
     services to assist individuals in attaining industry-based 
     skills.
       The House and Senate recede.
       335. Both the House bill and the Senate amendment list 
     supportive services as an allowable use of funds. However, 
     the House bill limits such assistance.
       The Senate recedes with an amendment providing for 
     additional permissible services including supportive services 
     which may be provided to individuals who are receiving 
     training services; and who are unable to obtain such 
     supportive services through other programs providing such 
     services. Follow-up services for individuals who are placed 
     in unsubsidized employment are also authorized.
       335a. The House bill, but not the Senate amendment, 
     specifies the allowable use of needs-related payments, with 
     specific education and training participation requirements.
       The Senate recedes with an amendment to add as a 
     permissible local activity, the provision of needs related 
     payments to individuals enrolled in training programs in 
     order to enable their participation in such training 
     services. In addition, certain time limits and payment caps 
     were added for the provision of such payments.
       336. The House bill, but not the Senate amendment, requires 
     local boards to establish a priority process for providing 
     intensive, or education and training services to dislocated 
     workers and economically disadvantaged individuals when 
     funding is limited.
       The Senate recedes with an amendment to require that 
     priority be given to dislocated workers and other unemployed 
     individuals for receipt of training services with guidance 
     provided to one-stop career centers by the Governor and local 
     boards in establishing such policies.
       The Managers agree that priority should be given to 
     dislocated workers and other unemployed individuals in the 
     provision of training services, when funding is limited. Such 
     priority for services is consistent with the employment-first 
     approach to training taken under the employment and training 
     component of this legislation. This priority language 
     however, is not intended to preclude the provision of 
     training services to other individuals, particularly to low 
     income employed individuals, for which training is essential 
     to obtain high skilled employment. Substantial flexibility is 
     granted to States and local workforce development areas in 
     making such individual determinations.
     Career grants/vouchers
       337. The House bill requires that education and training 
     services for adults be provided through the use of career 
     grants (vouchers), with providers identified in accordance 
     with section 108 of the House bill. Such grants

[[Page H8446]]

     must be provided through the career center system. The Senate 
     amendment allows, but does not require States to deliver some 
     or all of the permissible employment activities under section 
     106(a)(6) through vouchers administered through the one-stop 
     system.
       The Senate amendment restricts the receipt of vouchers to 
     individuals age 18 or older, who are unable to obtain Pell 
     grants. The House bill also restricts receipt of career 
     grants (vouchers). (See Note 334)
       The Senate recedes with an amendment clarifying that 
     training services may be provided through the use of career 
     grants, and requiring States to carry out a career grant 
     pilot program for dislocated workers that is of sufficient 
     size, scope and quality to measure the effectiveness of the 
     use of such a method of service delivery. The amendment 
     requires States to describe in their State plan how the State 
     will establish and implement the required career grant pilot 
     program for dislocated workers and a description of how the 
     State, after 3 years, will evaluate such program and use such 
     findings to improve the delivery of training services for 
     dislocated workers and other individuals. The amendment also 
     requires that all training services shall be provided through 
     the use of career grants, contracts, or other methods that 
     shall to the extent practicable, maximize consumer choice in 
     the selection of an eligible provider.
       337a. The House bill, but not the Senate amendment, 
     provides 4 exceptions to the required use of vouchers.
       The House recedes.
       337b. The House bill, but not the Senate amendment, allows 
     a 3-year transition for the full implementation of vouchers, 
     from the date of enactment.
       The House recedes.
       337c. The House bill, but not the Senate amendment, 
     requires that education and training be directly linked to 
     occupations in demand.
       The Senate recedes.
       338. Under the Senate amendment, but not the House bill, 
     States that choose to use vouchers must describe in the State 
     plan criteria for the activities, the amount of funds and the 
     eligibility of participants and providers.
       The Senate recedes.
       339. The House bill requires an identification process for 
     determining which service providers are eligible to receive 
     funds for adult training or vocational rehabilitation 
     programs. The Senate amendment has no such requirement, other 
     than to identify in the State plan the criteria for eligible 
     providers, if a State chooses to offer services through 
     vouchers. (See Note 138)
       The House and Senate recede.
       340. The House bill, but not the Senate amendment, 
     establishes an alternative eligibility procedure for service 
     providers that are not eligible to participate in title IV of 
     the Higher Education Act. (See Note 139)
       The House recedes.
       341. The House bill requires the State to identify 
     performance-based information to be submitted by service 
     providers. The Senate amendment has no such requirement, 
     other than to identify in the State plan information related 
     to ensuring the accountability of service providers, if a 
     State chooses to offer services through vouchers. (See Note 
     140)
       The House and Senate recede.
       342. Under the House bill, but not the Senate amendment, 
     the Governor must designate a State agency to collect, 
     verify, and disseminate performance-based information 
     relating to service providers, along with a list of eligible 
     providers, to local workforce development boards, and 
     integrated career center systems. (See Note 141)
       The House recedes.
       343. Under the House bill, but not the Senate amendment, a 
     service provider who provides inaccurate performance-based 
     information will be disqualified from receiving funds under 
     this Act for two years, unless upon the appeal, the provider 
     can demonstrate that the information was provided in good 
     faith. (See Note 142)
       The House recedes.
       344. Under the House bill, but not the Senate amendment, 
     on-the-job training providers are exempt from this section, 
     except that performance-based information on such providers 
     must be collected and disseminated. (See Note 143)
       The House recedes.
       344a. The House bill, but not the Senate amendment, 
     provides that nothing in this section prohibits a State from 
     providing services. (See Note 144)
       The House recedes.
       345. The Senate amendment, but not the House bill, requires 
     a State that chooses to provide training activities must 
     indicate in the State plan the extent to which the State will 
     use vouchers to deliver such training activities.
       The Senate recedes.
     Substate allocation
       346. The Senate amendment, but not the House bill, provides 
     that funds made available for workforce employment activities 
     (less Wagner-Peyser funds), and funds from the flex account 
     dedicated to workforce employment activities, are available 
     to the Governor to distribute as provided in the next Note. 
     (See Note 347)
       The Senate recedes.
       347. The House bill allows Governors to reserve up to 20% 
     of the State's allotment under the adult training grant for 
     statewide activities and administration. From this 20% 
     reserve, States are limited to 25% for administration. The 
     Senate amendment allows Governors to reserve up to 25% to 
     carry out workforce employment activities. From this 25% 
     reserve, States are limited to 20% for administrative 
     expenses.
       The House recedes with an amendment requiring that of the 
     funds made available for employment and training activities 
     for a program year, 20 percent shall be reserved by the 
     Governor to carry out State employment and training 
     activities; and not more than 5% shall be made available for 
     administrative expenses at the State level.
       347a. The House bill requires that Governors allocate the 
     remainder of funds to workforce development areas. The Senate 
     amendment requires that Governors distribute 75% of funds to 
     local entities.
       The House recedes with an amendment requiring that of the 
     funds made available for employment and training activities 
     for a program year, 75 percent shall be distributed by the 
     Governor to local workforce development areas to carry out 
     employment and training activities.
       347b. The House bill requires that of the funds to be 
     distributed to workforce development areas, 90% be allocated 
     based on a substate formula, established by the Governor, 
     through the collaborative process and after consultation with 
     local officials, taking into account: poverty rates; 
     unemployment rates; the State's adult population within each 
     local workforce area; and other factors as considered 
     appropriate. The formula must distribute funds equitably, and 
     none of the factors can receive disproportionate weighting.
       The Senate amendment requires the Governor to distribute 
     the 75% of funds to local entities based on 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. The Senate amendment also allows Governors, in 
     consultation with local partnerships (or local boards) to 
     include such additional factors as determined necessary.
       The Senate recedes with an amendment requiring that the 
     Governor develop a formula for the allocation of 75 percent 
     of the employment and training funds to workforce development 
     areas that must take into account certain factors for the 
     distribution of local funds.
       347c. The House bill, but not the Senate amendment, allows 
     the Governor discretion over 10% of the funds required for 
     distribution to local workforce boards.
       The House recedes.
       348. The House bill limits the administrative costs of the 
     local workforce development board to 10%. The Senate has no 
     comparable provision.
       The Senate recedes with amendment striking ``board'' and 
     inserting ``area.''
     Flex account
       349. The Senate amendment, but not the House bill, allows 
     the use of flex-account funds for school-to-work, workforce 
     employment activities, workforce education activities and 
     economic development.
       The House recedes with an amendment striking ``WORKFORCE''.
       350. The Senate amendment, but not the House bill, requires 
     States to use a portion of flex account funds for school-to-
     work activities, broadly defined. However, any State 
     receiving a grant under the School-to-Work Opportunities Act 
     of 1994, must continue such activities under the terms of the 
     grant.
       The Senate recedes.
       351. Under the Senate amendment, but not the House bill, 
     States may use flex account funds for either training 
     activities or education activities, as the State decides.
       The House recedes with an amendment allowing States to use 
     flex-account funds to carry out employment and training, at-
     risk youth, vocational education, and adult education and 
     literacy activities.
       352. Under the Senate amendment, but not the House bill, a 
     State may engage in economic development activities if the 
     State has established State and local workforce development 
     boards or provides services through vouchers beginning in the 
     year 2000. A State may use up to 50% of the flex account 
     funds to engage in the listed activities for upgrading skills 
     of incumbent workers.
       The Senate recedes.


                                FEDERAL

     Administrative Partnership
       353. The Senate amendment, but not the House bill, 
     establishes in the Department of Labor and the Department of 
     Education a Workforce Development Partnership (``Federal 
     Partnership''), under the joint control of the Secretary of 
     Labor and the Secretary of Education, to administer the Act.
       The House recedes with an amendment requiring the Secretary 
     of Labor and the Secretary of Education to enter into an 
     interagency agreement to administer the provisions of this 
     title, other than sections relasting to vocational education, 
     labor market information and national literacy activities.
       354. Under the Senate amendment, but not the House bill, 
     the Secretary of Labor and the Secretary of Education, 
     working jointly through the Federal Partnership, will be 
     responsible for activities including: approving State plans 
     and benchmarks, making allotments to States, awarding annual 
     incentive grants, applying sanctions, designing the transfer 
     of personnel and activities to the Partnership, and 
     disseminating information and providing technical assistance 
     to States.

[[Page H8447]]

       The House recedes with an amendment requiring the Secretary 
     of Labor and the Secretary of Education to agree on the 
     administration of this title.
       355. Under the Senate amendment, but not the House bill, 
     the Federal Partnership will be directed by a National 
     Workforce Development Board, composed of 13 members, 
     appointed by the President by and with the advice and consent 
     of the Senate, including: 7 representatives of business and 
     industry, 2 representatives of labor and workers, 2 
     representatives of adult and vocational education, and 2 
     Governors.
       The Senate recedes.
       356. Under the Senate amendment, but not the House bill, 
     the Federal Partnership will be responsible for activities 
     including: overseeing the development and implementation of 
     the nationwide integrated labor market information system, 
     establishing model benchmarks, negotiating State benchmarks, 
     receiving and reviewing reports, preparing an annual report 
     on the performance of States toward reaching the benchmarks, 
     advising the Secretary of Labor and the Secretary of 
     Education regarding the review and approval of State plans 
     and procedures for awarding incentive grants and applying 
     sanctions, reviewing Federal programs, and recommending how 
     they could be integrated into State systems, and reviewing 
     any issues about which the Secretary of Labor and the 
     Secretary of Education disagree and making recommendations to 
     the President regarding their resolution.
       The Senate recedes.
       357. The Senate amendment, but not the House bill, provides 
     for the appointment by the President of a Director, by and 
     with the advice and consent of the Senate, to administer the 
     general duties of the Federal Partnership.
       The Senate recedes.
       358. The Senate amendment, but not the House bill, provides 
     for the transfer of personnel from the Employment and 
     Training Administration (ETA) within the Department of Labor 
     and the Office of Adult and Vocational Education (OAVE) 
     within the Department of Education to the Federal 
     Partnership.
       The Senate recedes.
       358a. The Senate amendment, but not the House bill, 
     requires the Secretaries to submit a proposed workplan 
     outlining the transfers to be made to the Federal 
     Partnership.
       The House recedes with an amendment requiring the 
     Secretaries to prepare and submit to the President and the 
     appropriate committees of Congress, not later than 180 days 
     after the date of enactment, an interagency agreement which 
     includes a description of how the Secretary of Labor and the 
     Secretary of Education will work together to carry out their 
     duties and responsibilities under this title.
       358b. The Senate amendment, but not the House bill, 
     provides that the National Board shall review the 
     Secretaries' workplan. The National Board may reject the 
     workplan and submit their own workplan to the President 
     outlining the transfers to be made to the Federal 
     Partnership.
       The Senate recedes.
       358c. Under the Senate amendment, but not the House bill, 
     the President shall make a decision regarding the 
     implementation of such workplan.
       The House recedes with an amendment requiring the President 
     within 200 days to approve or disapprove the interagency 
     agreement, and make recommendations on an alternative plan, 
     in the event such agreement is not approved.
       358d. The Senate amendment, but not the House bill, 
     provides that if the Secretaries do not submit a workplan, 
     the President shall delegate full responsibility for the 
     administration of this Act to either the Secretary of Labor 
     or the Secretary of Education.
       The Senate recedes.
       359. The Senate amendment, but not the House bill, requires 
     an initial one-third reduction in the number of Federal 
     employees necessary to perform the functions associated with 
     the Federal administration of the Act. Not later than 5 years 
     after the date of initial transfers to the Federal 
     Partnerships there must be a 60% reduction in the number of 
     Federal employees, unless the Secretaries submit a report to 
     Congress stating why such reduction has not occurred. 
     However, there must be a minimum 40% reduction in the number 
     of Federal employees.
       The House recedes with an amendment making technical 
     changes.
       360. The Senate amendment, but not the House bill, provides 
     that personnel from ETA and OAVE that do not perform 
     functions related to the administration of the Act will be 
     transferred to other entities in the appropriate department.
       The Senate recedes.
       361. The Senate amendment, but not the House bill, requires 
     the Secretaries to submit an additional workplan outlining 
     the transfers of individuals to entities other than the 
     Federal Partnership.
       The Senate recedes.
       362. The Senate amendment, but not the House bill, 
     eliminates the Office of Adult and Vocational Education 
     (OAVE) within the Department of Education and the Employment 
     and Training Administration (ETA) within the Department of 
     Labor on July 1, 1998.
       The Senate recedes.
     Wagner-Peyser (Employment Service)
       363. The Senate amendment, but not the House bill, amends 
     section 1 of the Wagner-Peyser Act to provide that the 
     Federal Partnership shall oversee the activities of the 
     Employment Service.
       The Senate recedes.
       364. Both the House bill and the Senate amendment amend 
     section 2 to reflect the repeal of the Job Training 
     Partnership Act and to conform the definitions and terms to 
     each of the appropriate bills.
       The Senate recedes with technical and conforming 
     amendments.
       365. Both the House bill and the Senate amendment amend 
     section 3, the duties of the Federal government, by requiring 
     the Secretary of Labor (or the Federal Partnership in the 
     Senate amendment) to assist in the coordination and 
     development of a nationwide system of labor exchange services 
     for the general public, to assist in the development of 
     continuous improvement models for such nationwide system 
     which ensures private sector satisfaction and meets the 
     demands of jobseekers, and to ensure the continued services 
     for individuals receiving unemployment compensation.
       The House recedes with an amendment requiring the Secretary 
     of Labor to assist in the coordination and development of a 
     nationwide system of labor exchange services for the general 
     public, provided as part of the one-stop career center 
     systems of the States; 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 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.
       366. The Senate amendment, but not the House bill, makes 
     conforming amendments to the Unemployment Compensation 
     Amendments of 1976.
       The House recedes.
       367. Both the House bill and Senate amendment amend section 
     4 to require the Governor (and in the House bill, the 
     Governor through the collaborative process) to designate a 
     State agency to carry out the Act.
       The House recedes with an amendment inserting ``in 
     consultation with the State legislature''.
       367a. In the House bill, the designated State agency 
     cooperates with the Secretary of Labor. In the Senate 
     amendment, such agency cooperates with the Federal 
     Partnership.
       The Senate recedes.
       368. The House bill requires that 25% of the funds 
     available under the Wagner-Peyser Act be used to cover both 
     the current BLS programs (funded under sec. 14) and to 
     support State/local labor market information.
       The House recedes.
       369. The Senate amendment, but not the House bill, amends 
     section 5(c) to strike an obsolete provision.
       The House recedes.
       370. Both the House bill and the Senate amendments amend 
     section 7 to conform with the repeals of the Job Training 
     Partnership Act and the Carl D. Perkins Vocational and 
     Applied Technology Education Act.
       The House recedes with an amendment striking ``Workforce 
     Development Act of 1995'' and inserting ``Workforce and 
     Career Development Act of 1996''.
       370a. The Senate amendment, but not the House bill, 
     requires that labor exchange services be provided through the 
     one-stop career center system. The House bill has a similar 
     provision in its definition of ``Public Employment Office.''
       The House recedes with an amendment striking ``through'' 
     and inserting ``as part of''.
       371. Both the House bill and the Senate amendment amend 
     section 8 to require States to submit detailed plans for 
     carrying out this Act as a part to their workforce 
     development plans.
       The Senate recedes with an amendment requiring that any 
     State desiring to receive assistance under the Wagner-Peyser 
     Act shall submit to the Secretary, as part of the State plan 
     under the Workforce and Career Development Act, plans for 
     carrying out the provisions of the Wagner-Peyser Act.
       372. Both the House bill and the Senate bills repeal 
     section 11, the Federal Advisory Council.
       The Senate recedes.
       373. Both the House bill and the Senate amendment include 
     conforming amendments.
       The Senate recedes with an amendment striking reference to 
     ``Consolidated and Reformed Education, Employment, and 
     Rehabilitation Systems Act'' and inserting ``the Workforce 
     and Career Development Act of 1996''.
     Labor market information
       374. The Senate amendment, but not the House bill, requires 
     States to use a portion of their workforce employment funds 
     to pay for a statewide labor market information system. (See 
     Note 368 for related House provision)
       The Senate recedes.
       375. The House bill, but not the Senate amendment, places 
     the labor market information activities under the Wagner-
     Peyser Act.
       The Senate recedes with an amendment authorizing an 
     appropriation of $65 million for fiscal year 1998 and such 
     sums through fiscal year 2002.
       375a. The House bill, but not the Senate amendment provides 
     a purpose.
       The House recedes.

[[Page H8448]]

       376. The House bill provides the Secretary of Labor with 
     the responsibility for the LMI system. The Senate amendment 
     provides this responsibility to the Federal Partnership. Both 
     the House bill and the Senate amendment list comparable 
     elements of the nationwide LMI system, with language 
     differences.
       The House recedes with an amendment requiring the Secretary 
     of Labor, in accordance with this section, to oversee the 
     maintenance and continuous improvement of the system of labor 
     market information.
       The Managers commend the National and State Occupational 
     Information Coordinating Committee (NOICC/SOICC) for 
     leadership in building the foundation for the existing labor 
     market information system, which includes occupational 
     information. Further, the Managers assume that the Federal 
     and State governments will build upon the NOICC/SOICC 
     initiatives in the development of occupational, career and 
     consumer information delivery systems and related products, 
     the training of professionals in the use of labor market 
     information in career decision making, the support of career 
     development programs, and in coordinating a multi-agency 
     approach in building upon the existing labor market 
     information system.
       At the State level, the Managers encourage Governors and 
     State agency heads to use the SOICC to carry out the 
     collaborative, interagency process in building upon the 
     existing statewide labor market information system. Further, 
     at the Federal level, the Managers wish to make clear that 
     the NOICC may be used during transition to support the labor 
     market information system activities of the Department of 
     Education and the Department of Labor and encourage the 
     continued use of NOICC expertise under the improved system.
       376a. The House bill specifies that data may include data 
     aggregated by demographic characteristics. The Senate 
     amendment states that data may be from ``cooperative 
     statistical'' programs.
       The Senate recedes with an amendment to include within the 
     system of labor market information statistical programs of 
     data collection, compilation, estimation and publication 
     conducted in cooperation with the Bureau of Labor Statistics.
       The specific cooperative statistics program currently 
     managed by the Bureau of Labor Statistics include: Current 
     Employment Statistics (CES), Local Area Unemployment 
     Statistics (LAUS), Occupational Employment Statistics (OES), 
     Mass Layoff Statistics (MLS). The Managers intend that these 
     programs will continue to be authorized under the Wagner-
     Peyser Act and that this legislation will not alter the way 
     they are funded. The Bureau of Labor Statistics will continue 
     to justify funding levels through the appropriations process, 
     as it has in the past, including its request for non-trust 
     funds money.
       376b. The House bill includes data on individuals with 
     severe disabilities and clarifies that data under this part 
     are available from the Bureau of Census and other sources. 
     The Senate amendment specifies that such data should be 
     current and be collected from populations at the substate, 
     State and national level.
       The House and Senate recede.
       376c. The House bill, but not the Senate amendment, 
     specifies that data shall be maintained in an aggregated 
     fashion and specifies that such data are available from the 
     Bureau of Census and other sources.
       The House and Senate recede.
       376d. The House bill, but not the Senate amendment, 
     clarifies that information such as the unemployment insurance 
     wage data records may be used.
       The House and Senate recede.
       376e. The Senate amendment, but not the House bill, 
     specifies the form in which employment and consumer 
     information shall be collected.
       The Senate recedes with an amendment requiring that State 
     and local employment information include other appropriate 
     statistical data related to labor market dynamics which will 
     assist individuals to make informed choices related to 
     employment and training and assist employers to locate and 
     train employees who are seeking employment and training.
       The Managers intend that the State-based data collection 
     and analysis be produced in a way as to produce a common set 
     of labor market products and services that will be 
     consistently available in all parts of the country and that, 
     at the same time, will meet the unique needs of States and 
     localities. The primary customers of the State and local 
     products and services will be job seekers, employers and 
     counselors. The consumer information, as described under 
     Section 121, and other information supplied by the States and 
     local workforce development boards will also be useful to 
     these customers. To the extent feasible, the core products 
     and services are expected to include: profiles of employers 
     in the local labor market, including job openings, locations, 
     hiring requirements, the nature of the work, employment 
     requirements, wages, benefits, and hiring patterns--as such 
     information is volunteered by employers; aggregate data 
     related to the employment and training needs and skill levels 
     of job seekers in the local labor market area.
       376f. The House bill would profile ``employers'' as opposed 
     to ``industries'' as in the Senate amendment. The House bill, 
     but not the Senate amendment would also collect information 
     on hiring patterns.
       The House and Senate recede.
       376g. The House bill, but not the Senate amendment, 
     specifies that aggregate data shall be maintained.
       The House and Senate recede.
       376h. The House bill includes collection of information on 
     the level of satisfaction of the participants and their 
     employers and would also require the collection of 
     descriptive information on programs (beyond performance).
       The Senate amendment requires that the performance data 
     include the percentage of program completion, while the House 
     bill refers to summary data on program completion.
       The House and Senate recede.
       376hh. The House bill and the Senate amendment provide for 
     technical standards.
       The Senate recedes with an amendment to include within the 
     system of labor market information technical standards for 
     data and information which at a minimum, meet the criteria of 
     chapter 35 of title 44.
       The technical standards in Section 139(a) will ensure the 
     standardization of data and will ensure that data from one 
     State can be compared with data available in another State. 
     Technical standards are important because of the mobility of 
     the U.S. workforce and the number of States with multi-State 
     labor markets. These technical standards, to the extent 
     practicable, are also intended to cover the consumer 
     information in this Act.
       376i. The Senate amendment, but not the House bill, also 
     includes standardized definitions of labor market terms 
     related to State benchmarks.
       The House and Senate recede.
       376j. The Senate amendment, but not the House bill, 
     clarifies that the collection and analysis should be of labor 
     market and occupational information.
       The House and Senate recede.
       376k. The Senate amendment, but not the House bill, 
     specifies occupational information.
       The House and Senate recede.
       376l. The House bill uses the term ``Federal,'' the Senate 
     version uses the term ``national'' for the purposes of 
     policymaking.
       The Senate recedes with an amendment to include within the 
     system of labor market information analysis of data 
     information for uses such as State and local policymaking.
       376m. The Senate amendment, but not the House bill, also 
     specifies research on occupational dynamics.
       The House and Senate recede.
       376n. The House bill, but not the Senate amendment, 
     includes the standardization of technical standards and the 
     design of user interfaces and communication protocols.
       The Senate recedes with an amendment to include within the 
     labor market information system the wide dissemination of 
     data and analysis, training for users of the data and 
     analysis, and voluntary technical standards for dissemination 
     mechanisms.
       376o. The House bill includes programs providing assistance 
     in using systems to improve access to individuals to labor 
     market information. The Senate amendment includes programs in 
     the area of continuous improvement of data and provides for 
     the training of counselors, teachers and others in using the 
     LMI system to improve career decisionmaking.
       The Senate recedes with an amendment to include within the 
     system of labor market information programs of research and 
     demonstration, and technical assistance for States and 
     localities.
       377. The House bill, but not the Senate amendment, 
     specifies that statistical information collected as part of 
     the LMI system would be subject to a number of 
     confidentiality requirements. (This language is similar to 
     the current statutory language under which the census data is 
     collected)
       The Senate recedes with an amendment requiring that no 
     officer or employee of the Federal Government or agent of the 
     Federal Government may use the information furnished under 
     the provisions of this section for any purpose other than the 
     statistical purposes for which it is furnished; make any 
     publication whereby the data contained in the information so 
     furnished under this section can be used to identify any 
     individual; or permit anyone other than the sworn officers, 
     employees or agents of any Federal department or agency to 
     examine individual reports through which the information is 
     furnished.
       378. Under the House bill, but not the Senate amendment, 
     any information collected as part of the LMI system may not 
     be used against an individual in a legal process.
       The Senate recedes with an amendment providing that nothing 
     in this subparagraph shall be construed as providing immunity 
     from the legal process for information that is independently 
     collected or produced for purposes other than for purposes of 
     this section.
       379. Both the House bill and the Senate amendment outline 
     the cooperative administrative structure for the LMI system, 
     but the House bill refers to local entities as part of such 
     structure.
       The Senate recedes with an amendment providing that the 
     labor market information system be planned, administered, 
     overseen, and evaluated by a cooperative governance structure 
     involving the Federal Government, States, and local entities. 
     The amendment also specifies certain duties for the Secretary 
     of Labor.
       380. The House bill, but not the Senate amendment requires 
     the Secretary of Labor to carry out specific duties with 
     respect to data collection.

[[Page H8449]]

       The House recedes.
       381. The House bill requires the Secretary, in 
     collaboration with Bureau of Labor Statistics to carry out 
     additional duties. The Senate amendment requires plan 
     information regarding such duties.
       The House recedes.
       382. The House bill, but not the Senate amendment, 
     clarifies that the annual plan is part of the DOL budget 
     submitted to Congress. As such, it is the written 
     justification for the use of these funds and for the priority 
     of these funds for the following fiscal year. Both the House 
     bill and the Senate amendment require the plan to include 
     various elements. To the extent that both bills include 
     similar elements, there are differences in content.
       The House recedes with an amendment requiring the Secretary 
     of Labor, in collaboration with the States and the Bureau of 
     Labor Statistics, and with the assistance of other 
     appropriate Federal agencies, to prepare an annual plan that 
     shall describe the cooperative Federal-State governance 
     structure for the labor market information system.
       383. The House bill requires that the plan be developed 
     through a formal process involving the Secretary of Labor, 
     Bureau of Labor Statistics and State directors of LMI, 
     whereas the Senate amendment requires a description of formal 
     consultations.
       The Senate recedes with an amendment requiring the 
     Secretary of Labor and the Bureau of Labor Statistics, in 
     cooperation with the States, to develop the plan by holding 
     formal consultations with State representatives who have 
     expertise in labor market information; and pursuant to a 
     process agreed upon by the Secretary of Labor and the States, 
     representatives from each of the Federal regions of the 
     Department of Labor; and employers or representatives of 
     employers.
       384. Both the House bill and the Senate amendment allow for 
     representatives of the Governor to participate in 
     deliberations relating to budget issues for the development 
     of the annual plan.
       The House and Senate recede.
       385. Under both the House bill and the Senate amendment, 
     the Governor must designate a single State agency (or entity 
     in the Senate amendment) to be responsible for the management 
     of the statewide LMI system. Under the House bill this agency 
     would also have an oversight role. In the Senate amendment, 
     the oversight function would be carried out under an 
     interagency process.
       The House recedes with an amendment requiring the Governor 
     of a State to designate a single State agency or entity to be 
     responsible for the management of the statewide labor market 
     information system and authorizing establishment of a process 
     for the oversight of such a system.
       386. Both the House bill and the Senate amendment require 
     States to carry out specific duties in exchange for receipt 
     of funds. To the extent that both bills include similar 
     requirements, they differ in content.
       The House recedes with an amendment describing the duties 
     of the State agency designated to be responsible for labor 
     market information.
       386a. The Senate amendment, but not the House bill, 
     provides for a rule of construction.
       The House recedes.
       387. Under the Senate amendment, but not the House bill, 
     this section takes effect July 1, 1998. (See Note 456 for 
     comparable House provision)
       The House recedes.
     UI trust fund
       388. The Senate amendment, but not the House bill, makes 
     amendments to the Unemployment Trust Fund to conform with the 
     Workforce Development Act.
       The Senate recedes.
     Limited Federal regulations
       389. The House bill, but not the Senate amendment, 
     restricts Department of Education and Department of Labor 
     from issuing unnecessary regulations in regard to this Act.
       The Senate recedes with conforming and technical changes.


                           National Programs

     Education/youth
       390. The House bill authorizes $25 million or 20% of total 
     funding for the youth development block grant funding--
     whichever is less--for Federal research, a national 
     assessment of youth development programs and a national 
     center(s) for research on youth development programs. The 
     Senate amendment reserves 0.15% of the $5.884 billion 
     authorization ($8,826,000) for a national center for research 
     in education and workforce development, a national assessment 
     of vocational education and the National Institute for 
     Literacy.
       The House and Senate recede.
       391. The House bill, but not the Senate amendment, allows 
     the Secretary to award discretionary grants for demonstration 
     and model programs. Funds may also be used by the Department 
     of Education for evaluation, capacity building and technical 
     assistance.
       The Senate recedes with an amendment requiring the 
     Secretaries, as part of the interagency agreement, to develop 
     a single plan for assessment and evaluation, research, 
     demonstrations, dissemination of model programs, and 
     technical assistance activities with regard to the services 
     and activities carried out under this title. The amendment 
     authorizes $15 million for assessment and evaluation of 
     activities assisted under this title; $15 million for a 
     national research center or centers; $30 million for 
     demonstration programs, replication of model programs, 
     dissemination of best practices information, and technical 
     assistance for fiscal years 1998-2002.
       The Managers intend that the Secretaries may use 
     demonstration funds to allow national disability 
     organizations to continue to carry out national employment, 
     training and job placement activities for which they are 
     uniquely qualified.
       It is also the intent of the Managers that in awarding 
     demonstration grants under this authority that the 
     Secretaries give strong consideration to projects that 
     involve a partnership between a four year higher education 
     institution, local public educational organizations, non-
     profit organizations and private sector business participants 
     that provide program support, facilities, specific skills 
     training, retraining, education, tutoring, counseling, 
     employment preparation through distance learning in emerging 
     and established professions to individuals who otherwise 
     would not have access to such services, as exemplified by 
     programs currently proposed by Pacific Union College and Napa 
     Valley Community Resource Center in Angwin, California.
       The Managers further intend for the Secretaries to use the 
     resources made available under the ``demonstrations, 
     dissemination, and Technical Assistance'' section to 
     replicate models of demonstrated effectiveness, such as the 
     Center for Employment and Training (CET) and the youth Build 
     Program, for the purpose of developing, improving, and 
     identifying the most successful methods and techniques in 
     providing the services and activities authorized under this 
     Act.
       392. The House bill, but not the Senate amendment, requires 
     the Secretary of Education to establish a system to 
     disseminate information received from research and 
     development activities.
       The House recedes.
       393. The House bill requires Office of Educational Research 
     and Improvement to conduct a biennial assessment. The Senate 
     amendment requires the Secretary to conduct an assessment.
       The House and Senate recede.
       394. The Senate amendment, but not the House bill, creates 
     a national advisory panel to advise the Secretary on the 
     assessment. The advisory panel may submit an independent 
     analysis to the appropriate congressional committees and the 
     Federal Partnership.
       The Senate recedes.
       395. Both the House bill and the Senate amendment require 
     the assessment to review certain activities.
       The House and Senate recede.
       395a. Both the House bill and the Senate amendment require 
     a review of how funds received are being used by State and 
     local areas to achieve the intended results of this Act; 
     program improvement; the effect of performance measures, 
     accountability and State and local assessments; and the 
     success of students in meeting academic and occupational 
     measures.
       The House and Senate recede.
       395b. Both the House bill and the Senate amendment have 
     additional assessment requirements.
       The House and Senate recede.
       396. The Senate amendment, but not the House bill, requires 
     the Secretary to consult with Congress on the design and 
     implementation of the assessment. The Senate amendment 
     further requires an interim report to Congress and prohibits 
     review of the report outside the Department of Education 
     prior to the transmittal to Congress.
       The Senate recedes.
       397. The Senate amendment has an effective date of July 1, 
     1998. (See Note 456 for comparable House provision.)
       The Senate recedes.
       398. Both the House bill and the Senate amendment allow 
     institutions of higher education, public and private agencies 
     or consortia of such agencies to compete for a national 
     research center contract.
       The House and Senate recede.
       398a. The House bill allows the Secretary of Education to 
     contract for a National center to conduct research. The 
     Senate amendment allows the Secretary of Education and the 
     Secretary of Labor, acting on the advice of the Federal 
     Partnership, to award a contract for a national center.
       The House recedes.
       398b. The House bill, but not the Senate amendment, 
     requires that if such centers are established, the national 
     center currently in operation shall continue under the terms 
     of its contract.
       The House recedes.
       399. Both the House bill and the Senate amendment require 
     the center to carry out required activities.
       The Senate recedes.
       399a. Both the House bill and the Senate amendment require 
     research and assistance in combining academic and vocational 
     education, new models for remediation of academic skills, new 
     linkages among education and job training, and new models for 
     career guidance.
       The House and Senate recede.
       399b. Both the House bill and the Senate amendment have 
     additional required activities.
       The House and Senate recede.
       400. Both the House bill and the Senate amendment require 
     the center to help States and localities develop performance 
     measures and indicators. The House bill further requires the 
     center to provide technical assistance and outreach.

[[Page H8450]]

       The House and Senate recede.
       401. Both the House bill and the Senate amendment require 
     the center to maintain a clearinghouse to disseminate 
     information to Federal, State and local entities.
       The House and Senate recede.
       402. The Senate amendment allows the Federal Partnership to 
     ask the center to study topics or conduct activities as they 
     determine necessary. The House bill allows the Secretary of 
     Education to request that the center conduct other 
     activities.
       The Senate recedes.
       403. The Senate amendment, but not the House bill, requires 
     the center to identify current research and technical 
     assistance needs using a variety of sources including a panel 
     of Federal, State and local practitioners.
       The Senate recedes.
       404. The House bill and the Senate amendment require the 
     center to annually submit a report to the Secretaries of 
     Education and Labor and to the House and Senate authorizing 
     committees. The Senate amendment further requires the center 
     to annually submit a report to the Federal Partnership.
       The House and Senate recede.
       405. The Senate amendment, but not the House bill, provides 
     a 6 month transition period between the current grant aware 
     expiration and subsequent authorization.
       The House recedes with an amendment striking ``on the 
     advice of the Federal Partnership''.
       406. Both the House bill and the Senate amendment use the 
     definition of higher education which excludes proprietary 
     schools. (See Note 36 for House definition of ``eligible 
     institution.'')
       The House recedes.
       407. The Senate amendment, but not the House bill, makes 
     conforming amendments to current law for the transition 
     period.
       The House recedes.
       408. The Senate amendment has a July 1, 1998 effective date 
     and includes a January 1, 1998 effective date for the 
     transition period for the national center. (See Note 456 for 
     comparable House provision.)
       The House recedes.
     Employment and training activities
       409. The House bill reserves 15% of the adult employment 
     and training grant authorization ($327 million) for national 
     discretionary grants (including incentive grants, research, 
     development, and workforce development loans). The Senate 
     amendment reserves 5% of the $5.88 billion authorization 
     ($294 million) for national discretionary grants, incentive 
     grants and for the administration of this title.
       The House recedes with an amendment reserving 10 percent of 
     the block grant for national activities. After funds have 
     been distributed for Native Americans, migrants, and the 
     outlying areas programs, the remainder shall be reserved for 
     national emergency grants and incentive grants.
       410. Under the House bill, the Secretary of Labor is 
     provided full discretion to award grants for major economic 
     dislocations. Under the Senate amendment, the Secretary of 
     Labor and the Secretary of Education must act jointly on the 
     advice of the Federal Partnership for the award of such 
     grant. The Senate amendment also includes a provision for an 
     emergency determination.
       The Senate recedes with an amendment authorizing the 
     Secretary of Labor to award national emergency grants to 
     provide employment and training assistance to workers 
     affected by major economic dislocations such as plant 
     closures, mass layoffs, or closures and realignment of 
     military installations.
       For the purposes of awarding a National Emergency Grant, it 
     is the intent of the Managers that the Secretary of Labor 
     should develop criteria to determine if an event constitutes 
     a ``major economic dislocation.'' In doing so, the Secretary 
     should consider the number of workers affected in relation to 
     the size and unique situation of the community affected, 
     rather than by establishing any one threshold number. The 
     Managers are deeply concerned that establishing an arbitrary 
     threshold overlooks the varying impact of these kinds of 
     events on communities of different sizes. For instance, a 
     plant closing or other event affecting a small number of 
     workers has a profoundly different impact on a large 
     community as compared to a small community.
       411. The House bill includes a number of entities as 
     eligible to receive grants under this part. The Senate 
     amendment includes a State or local entity as eligible to 
     receive grants under this part. (See Note 53 for Senate 
     description of ``local entity.'')
       The House recedes with an amendment defining ``eligible 
     entity'' to mean a State, a unit of general local government, 
     or a public or private local entity (including for-profit or 
     non-profit).
       412. Under the House bill, eligible entities must submit an 
     application to the Secretary of Labor. Under the Senate 
     amendment, such entities must submit an application to the 
     Federal Partnership.
       The Senate recedes.
       413. Both the House bill and the Senate amendment provide 
     that funds may be used for disaster relief employment 
     assistance.
       The Senate recedes with an amendment authorizing the 
     Secretary of Labor to provide assistance to the Governor of 
     any State within the boundaries of which is an area that has 
     suffered an emergency or a major disaster.
       414. The House bill, but not the Senate amendment, 
     clarifies that funds may be expended through public and 
     private agencies.
       The Senate recedes.
       415. Under the House bill, but not the Senate amendment, 
     only individuals dislocated or laid off due to the disaster 
     are eligible to be offered disaster employment.
       The House recedes with an amendment requiring that funds be 
     used exclusively to provide employment on projects assisting 
     disaster areas.
       416. The House bill, but not the Senate amendment, limits 
     the length of time such individuals may be employed under 
     this part to six months.
       The House recedes.
       417. The House bill, but not the Senate amendment provides 
     for the Secretary of Labor to use a portion of its' 
     discretionary funding to carry our research, demonstrations, 
     evaluations, national partnerships, capacity building and 
     technical assistance.
       The House recedes.
       417a. Both the House bill and the Senate amendment provide 
     for ongoing evaluations of employment-related activities, 
     including the use of controlled experiments using groups 
     chosen by random assignment. In the House bill, the Secretary 
     of Labor performs the evaluations, and in the Senate 
     amendment the States perform the evaluations. (See Note 163)
       The House recedes.
       417b. The House bill, but not the Senate amendment, also 
     allows the Secretary of Labor to conduct evaluations of other 
     Federal employment-related workforce programs to determine 
     their effectiveness. (See Note 164)
       The House recedes.
       417c. The House bill requires the Secretary of Labor to 
     provide capacity building and technical assistance. The 
     Senate amendment requires the Secretary of Labor and the 
     Secretary of Education, acting jointly, to provide technical 
     assistance in appropriate cases. (See Note 354.)
       The House recedes.
       418. The House bill, but not the Senate amendment, allows 
     the Secretary of Labor to use a portion of its' discretionary 
     funding to make grants to States to establish workforce 
     skills and loan programs.
       The House recedes.
     Native American programs
       419. The House bill reserves 4% of the Adult Employment and 
     Training Grant authorization of $85 million, whichever is 
     less, for Native American programs. The Senate amendment 
     reserves 1.25% of the $5.884 billion authorization ($73.5 
     million) for Native American programs.
       The House recedes with an amendment reserving $90 million 
     from the annual appropriation for Native American programs.
       420. The Senate amendment, but not the House bill, allows 
     the Secretaries to reserve a portion of at-risk youth funds 
     to carry out programs for Native American at-risk youth.
       The Senate recedes.
       421. The Senate amendment, but not the House bill, contains 
     purposes.
       The House recedes.
       422. The Senate amendment includes several definitions 
     relating to Indian workforce activities. (For comparable 
     definition of Native American in the House bill see Note 57)
       The House recedes.
       423. Both the House bill and the Senate amendment authorize 
     similar entities for the receipt of funds. However, in the 
     House bill, Indian controlled organizations serving ``off-
     reservation'' areas are eligible, in the Senate amendment, 
     such entities serving ``Indians'' are eligible. Also, the 
     House bill specifies the types of areas served by Alaska 
     Native entities.
       The House recedes with an amendment making technical 
     changes.
       424. The Senate amendment, but not the House bill, requires 
     the Secretaries to distribute funds by formula.
       The Senate recedes.
       425. Both the House bill and the Senate amendment list 
     authorized activities. However, the Senate amendment further 
     specifies such activities.
       The House recedes with an amendment requiring that 
     activities carried out are consistent with this section and 
     are necessary to meet the needs of Indians or Native 
     Hawaiians preparing to enter, reenter, or retain unsubsidized 
     employment. The amendment requires that funds be used for 
     workforce development activities and supplemental services 
     and vocational education, adult education, and literacy 
     services.
       426. The Senate amendment, but not the House bill, 
     continues eligibility for individuals previously eligible 
     under the JTPA program for Native Americans.
       The House recedes.
       427. The House bill, but not the Senate amendment, allows 
     for the Secretary of Labor to transfer authority to the 
     Secretary of Education to carry out specific vocational 
     education programs for Native Americans.
       The Senate recedes with an amendment allowing the 
     Secretaries to agree that the Secretary of Education may 
     carry out any portion of assistance devoted to vocational 
     education activities including assistance to entities not 
     eligible for funding pursuant to the Tribally Controlled 
     Community College Assistance Act.
       The Managers have consolidated employment and training 
     services, including vocational education services, into a 
     Native American block grant. The Department of Labor as part 
     of the interagency agreement is encouraged to transfer the 
     portion of the funds covering vocational education services

[[Page H8451]]

     to the Department of Education in recognition of that 
     Department's special expertise in this area.
       In making grants for education services the Secretary, 
     consistent with previous policy, shall give consideration to 
     applications from Tribally Controlled Community Colleges. The 
     Managers also recognize the important role of the two tribal 
     postsecondary vocational education institutions--United 
     Tribes Technical College and Crownpoint Institute of 
     Technology--and expect the Secretary to continue support for 
     these institutions from funds allocated under this section.
       428. The Senate amendment, but not the House bill, requires 
     eligible entities to submit a 3-year plan to the Federal 
     Partnership.
       The House recedes with an amendment striking ``Federal 
     Partnership'' and inserting ``Secretaries''.
       429. Both the House bill and the Senate amendment allow 
     eligible entities to further consolidate funds under this Act 
     in accordance with P.L. 102-477.
       The Senate recedes.
       430. The Senate amendment, but not the House bill, includes 
     provisions regarding nonduplicative and nonexclusive 
     services.
       The House recedes.
       431. The Senate amendment, but not the House bill, 
     establishes an office within the Federal Partnership to 
     administer this section.
       The House recedes with an amendment requiring the 
     Secretaries to designate a single organizational unit to 
     administer Native American programs and to provide technical 
     assistance.
       432. Both the House bill and the Senate amendment require 
     that regulations be developed in consultation with Tribal 
     entities. Under the House bill, the Secretary of Labor is 
     responsible for establishing regulations, whereas the Senate 
     amendment specifies the Partnership, through the Native 
     American office.
       The Senate recedes with an amendment requiring the 
     Secretaries to consult with the eligible entities in 
     establishing regulations and performance standards for Native 
     American programs.
       433. The Senate amendment, but not the House bill, permits 
     the Secretaries to act jointly in the distribution of at-risk 
     youth funds, if any, for Native Americans.
       The Senate recedes.
     Migrant and seasonal farmworker program
       434. The House bill reserves 4% of the Adult Training and 
     Employment authorization or $85 million, whichever is less, 
     for migrant and seasonal farmworkers. The Senate amendment 
     reserves 1.25% of the $5.884 billion authorization ($73.5 
     million) for migrant and seasonal farmworkers.
       The Senate recedes with an amendment reserving $70 million 
     from the annual appropriation for migrant and seasonal 
     farmworker programs.
       The conference agreement includes the consolidation of 
     current programs for migrant and seasonal farmworkers into a 
     single program which is intended to serve as the main vehicle 
     for Federal investments in migrant and seasonal farmworkers' 
     training, placement, and related assistance. These 
     investments assist farmworkers to secure stable, meaningful 
     employment. These programs target services to one of the most 
     hard-to-serve and at-risk populations in the United States.
       The legislative language includes broad allowable services 
     that may be provided under this section for migrant and 
     seasonal farmworkers and their dependents including single 
     purpose grants for the provision of training and technical 
     assistance for housing and related assistance.
       434a. The House bill authorizes the Secretary of Labor to 
     carry out this program. The Senate amendment authorizes the 
     Secretaries, acting jointly on advice of the Federal 
     Partnership, to carry out this program.
       The House recedes with an amendment making technical 
     changes.
       435. The House bill allows the Secretary of Labor to 
     determine eligible entities. The Senate amendment lists 
     specific criteria for eligible entities.
       The House recedes with an amendment requiring that eligible 
     entities shall have an understanding of the problems of 
     migrant and seasonal farmworkers, a familiarity with the area 
     to be served, and can demonstrate a capacity to administer 
     effectively a diversified program of workforce development 
     activities for migrant and seasonal farmworkers.
       436. The House bill lists specific allowable activities. 
     The Senate amendment authorizes funds for ``comprehensive 
     workforce development activities and related services.''
       The Senate recedes with an amendment requiring that funds 
     made available under this section shall be used to carry out 
     comprehensive workforce development activities and related 
     services for migrant and seasonal farmworkers and their 
     dependents.
       437. The House bill, but not the Senate amendment, require 
     that regulations be developed in consultation with farmworker 
     groups.
       The Senate recedes with an amendment requiring the 
     Secretaries to consult with seasonal and migrant farmworker 
     groups and States in establishing regulations and performance 
     standards for the migrant and seasonal farmworker program.
       438. The Senate amendment, but not the House bill, requires 
     eligible entities to submit a 3-year plan to the Federal 
     Partnership.
       The House recedes with an amendment requiring that eligible 
     entities submit to the Secretaries a plan that describes a 3-
     year strategy for meeting the needs of migrant and seasonal 
     farmworkers and their dependents.
       439. The Senate amendment, but not the House bill, require 
     that grants be distributed in consultation with Governors and 
     local partnership.
       The House recedes with an amendment requiring that in 
     making grants and entering into contracts under this section, 
     the Secretaries shall consult with the Governors and with 
     local workforce development boards.
     Territories/Outlying areas
       440. The House bill provides funding for territories in 
     each of the three grants. For the youth grant, funds are 
     available to territories through the State allotment, with 
     the definition of ``State'' including such territories. For 
     the adult employment and training grant, up to one quarter of 
     1% of the authorized allotment available for States, ($4.6 
     million), is reserved for territories. For the adult 
     education and literacy grant, $100,000 is reserved for each 
     of the territories. The Senate amendment authorizes .2% of 
     the $5.884 billion authorization ($11.76 million) for 
     outlying areas.
       The House recedes with an amendment reserving $14 million 
     from the annual appropriation for the outlying areas.
       441. The Senate amendment, but not the House bill, 
     authorizes the Secretaries, acting jointly on the advice of 
     the Federal partnership, to award grants to outlying areas.
       The House recedes with an amendment that allots funds to 
     the outlying areas, reserves the funds allotted to the 
     Republic of the Marshall Islands, the Federated States of 
     Micronesia and Palau for a competitive grant award to all of 
     the outlying areas based on recommendations by the Pacific 
     Region Educational Lab to the Secretaries, and terminates the 
     authority for the Republic of the Marshall Islands, the 
     Federated States of Micronesia and Palau to receive funds 
     under this title on September 30, 2001.


                                 other

     No tracking
       442. The House bill, but not the Senate amendment, includes 
     two provisions prohibiting the tracking of individuals, 
     including youth, into a specific career or to require the 
     attainment of a federally funded or endorsed skill 
     certificate.
       The Senate recedes with a clarifying amendment.
     Transition
       443. The House bill provides that the Secretary of Labor 
     and the Secretary of Education will ensure an orderly 
     transition from programs repealed or amended. The Senate 
     amendment provides that States and local entities may seek 
     waivers from the Secretaries under any of the programs 
     repealed or amended during the 2 year transition period.
       The House recedes with technical and conforming changes and 
     increasing the time the Secretary has to approve or 
     disapprove a waiver from 45 to 60 days.
       444. The Senate amendment, but not the House bill, provides 
     a flexibility demonstration program for six States (which 
     meet specific eligibility requirements) to waive any 
     statutory or regulatory requirement under any of the programs 
     repealed or amended during the 2-year transition period.
       The Senate recedes.
       445. The Senate amendment, but not the House bill, requires 
     each State to submit an interim State plan to the Federal 
     Partnership by June 30, 1997. The Secretaries may approve the 
     interim plan and authorize the full integration of program 
     funds and activities as provided in the block grant in fiscal 
     year 1997. If the Secretaries disapprove the interim plan, 
     they must make recommendations and provide technical 
     assistance to States for developing the State plan to be 
     submitted for fiscal year 1998.
       The House recedes with an amendment authorizing the 
     Secretaries to provide technical assistance to State that 
     request such assistance in preparing the State plan or in 
     developing the State benchmarks.
       446. The Senate amendment, but not the House bill, provides 
     that States and local entities will not be required to submit 
     applications or plans in fiscal years 1996 or 1997 in order 
     to receive funding under any programs which will ultimately 
     be repealed under the Act.
       The House recedes with an amendment striking ``1996 or''.
       447. The Senate amendment, but not the House bill, provides 
     that the Federal Partnership will take over administration of 
     the School-to-Work Opportunities Act on October 1, 1996.
       The Senate recedes.
       448. The Senate amendment, but not the House bill, extends 
     the authorizations for the Carl D. Perkins Vocational and 
     Applied Technology Act and the Adult Education Act through 
     fiscal years 1998.
       The House recedes with an amendment striking paragraphs 
     (b)(2), (b)(3), and (b)(4).
     Repealers
       449. Under the House bill, the Smith-Hughes Act is repealed 
     on October 1, 1995. Under the Senate amendment, the following 
     laws are repealed immediately upon enactment: (1) the State 
     Legalization Impact Assistance Grant (SLIAG), (2) Title II of 
     Public Law 95-250, (3) the Displaced Homemakers Self-
     Sufficiency Assistance Act, (4) the Appalachian Vocational 
     and Other Education

[[Page H8452]]

     Facilities & Operations program, (5) the Job Training for the 
     Homeless Demonstration Project, (6) Section 5322 of title 49, 
     U.S.C., and (7) Subchapter I of chapter 421 of title 49, 
     U.S.C.
       The House recedes with an amendment striking the repeal of 
     Section 5322 of title 49, United States Code and Subchapter I 
     of chapter 421 of title 49, United States Code.
       449a. Under the House bill, the following laws are repealed 
     on July 1, 1997: (1) the Carl D. Perkins Vocational and 
     Applied Technology Education Act, (2) the School-to-Work 
     Opportunities Act, (3) the Adult Education Act, (4) the Adult 
     Education for the Homeless program, (5) the School Dropout 
     Assistance Act, (6) the National Literacy Act (except section 
     101), (7) the Library Services and Construction Act, (8) the 
     Technology for Education Act of 1994, and (9) the Job 
     Training for the Homeless Demonstration Project.
       Under the Senate amendment, the following laws are repealed 
     on July 1, 1998: (1) the Carl D. Perkins Vocational and 
     Applied Technology Education Act, (2) the School-to-Work 
     Opportunities Act, (3) the Adult Education Act, (4) the Adult 
     Education for the Homeless program, and (5) the Education for 
     Homeless Children and Youth Education program.
       The Senate recedes with an amendment striking the repeal of 
     The National Literacy Act of 1991, and repealing Title VII of 
     the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 
     11421 et seq.), other than subtitle B and section 738.
       449b. Under the House bill, all of the Job Training 
     Partnership Act, except for the Job Corps program and the 
     veterans' employment programs, is repealed on July 1, 1997. 
     Under the Senate amendment, all of the Job Training 
     Partnership Act is repealed on July 1, 1998.
       The House recedes with an amendment striking paragraph 
     (c)(2).
       450. Both the House bill and the Senate amendment make 
     amendments to other laws to conform with the repeal of 
     programs as described in Note 449.
       Legislative counsel.
       450a. Both the House bill and the Senate amendment make 
     conforming amendments to other Federal laws which reference 
     the Adult Education Act.
       Legislative counsel.
       450b. The Senate amendment, but not the House bill, makes 
     conforming amendments to other Federal laws which reference 
     the Carl D. Perkins Vocational and Applied Technology 
     Education Act.
       Legislative counsel.
       450c. The Senate amendment, not the House bill, makes 
     conforming amendments to other Federal laws which reference 
     the School-to-Work Opportunities Act of 1994.
       Legislative counsel.
       450d. The House bill includes conforming amendments to the 
     Job Training Partnership Act to reflect the repeal of some 
     parts of such Act. The Senate amendment, which repeals the 
     entire Job Training Partnership Act, makes conforming 
     amendments to other Federal laws which reference the Job 
     Training Partnership Act.
       Legislative counsel.
       450e. The Senate amendment, not the House bill, makes 
     conforming amendments to other Federal laws which reference 
     the Stewart B. McKinney Homeless Assistance Act.
       Legislative counsel.
       450f. The Senate amendment, not the House bill, requires 
     the Federal Partnership, after consultation with the 
     appropriate committees of Congress and the Director of the 
     Office of Management and Budget, to submit to Congress 
     legislation containing further technical and conforming 
     amendments.
       The Senate recedes.
       450g. Under the House bill, the conforming amendments are 
     effective on July 1, 1997. Under the Senate amendment, the 
     conforming amendments for the programs repealed immediately 
     are effective on the date of enactment, and for the programs 
     repealed subsequently are effective on July 1, 1998.
       The House recedes.
     Higher Ed Repeals
       451. The House bill, but not the Senate amendment, repeals 
     the following programs:
       (1) Articulation Agreements
       (2) Access & Equity to Education for all Americans through 
     Telecommunications
       (3) Academic Libraries and Information Services
       (4) National Early Intervention Scholarships
       (5) Presidential Access Scholarships
       (6) Model Program Community Partnership & Counseling Grants
       (7) Early Awareness Information Program
       (8) Technical Assistance for Teachers & Counselors
       (9) Special Child Care Services for Disadvantaged College 
     Students
       (10) Loan Forgiveness for Teachers, Individuals Performing 
     Community Service and Nurses
       (11) Training in Financial Aid Services
       (12) State Postsecondary Review Program
       (13) State & Local Programs for Teachers Excellence
       (14) National Teacher Academies
       (15) Paul Douglas Teacher Scholarships
       (16) Teacher Corps
       (17) Class Size Demonstration Grant
       (18) Middle School Teaching Demonstration Programs
       (19) New Teaching Careers
       (20) National Mini Corps Programs
       (21) Demonstration Grants for Critical Language/Area 
     Studies
       (22) Development of Foreign Language & Culture Instructions 
     Materials
       (23) Small State Teaching Initiative
       (24) Faculty Development Grants
       (25) Early Childhood Staff Training & Professional 
     Enhancement
       (26) Intensive Summer Language Institutes
       (27) Periodicals and Other Research Materials Published 
     Outside the United States
       (28) Improvement of Academic & Library Facilities
       (29) Cooperative Education
       (30) Grants to Institutions and Consortia to Encourage 
     Women & Minority Participation in Graduate Education
       (31) Harris Fellowships
       (32) Javits Fellowships
       (33) Faculty Development Fellowship Program
       (34) Assistance for Training in the Legal Profession
       (35) Law School Clinical Experience
       (36) FIPSE--Special Projects in Areas of National Need
       (37) Science & Engineering Access
       (38) Woman & Minorities Science & Engineering Outreach 
     Demonstration Programs
       (39) Eisenhower Leadership Program
       (40) Community Service Programs

       (1) National Academy of Science Study
       (2) Native Hawaiian and Alaska Native Culture and Arts 
     Development

       (1) American Indian Postsecondary Economic Development 
     Scholarship
       (2) American Indian Teach Training
       (3) National Survey of Factors Associated with 
     Participation
       (4) Study of Environmental Hazards in Institutions of 
     Higher Education
       (5) National Job Bank for Teacher Recruitment
       (6) National Clearinghouse for Postsecondary Education 
     Materials
       (7) School-Based Decisionmakers
       (8) Grants for Sexual Offenses Education
       (9) Olympic Scholarships
       (10) Advanced Placement Fee Payment Program
       The Senate recedes with an amendment striking the repeal of 
     the National Early Intervention Scholarships program; the 
     Javits Fellowship program; the Law School Clinical Experience 
     program; the FIPSE--Special Projects in Areas of National 
     Needs program; and the Community Service Programs.
       452. The House bill, but not the Senate amendment, deletes 
     all references to State postsecondary review entities.
       The Senate recedes.
       453. The House bill, but not the Senate amendment, amends 
     the Higher Education Act to specify that, for purposes of 
     eligibility under Section 481(b)(6) [the 85/15 Rule], a 
     proprietary institution may use its independent auditor 
     rather than a certified public accountant to review the 
     school's financial data; may use generally accepted 
     accounting practices to determine compliance; and may count 
     revenues earned from providing training on a contractual 
     basis to government, business, or industry as non-Federal 
     revenue.
       The House recedes.
       454. The House bill, but not the Senate amendment, 
     prohibits the Secretary from considering an institution's 
     financial information for an institution's fiscal year which 
     began on or before April 30, 1994. This date coincides with 
     the day after which the Secretary's regulations implementing 
     the 85/15 rule became final.
       The Senate recedes.
       455. The House bill, but not the Senate amendment, sets an 
     effective date for these changes of July 1, 1994. This date 
     coincides with the start of the 1994-1995 academic year.
       The Senate recedes.
     Effective date
       456. The House bill takes effect on July 1, 1997. The 
     Senate amendment (including the workforce development grant 
     and the at-risk youth grant) takes effect on July 1, 1998.
       The House recedes with technical amendments.
     Immigration and Nationality Act
       457. The Senate amendment, but not the House bill, amends 
     the Immigration and Nationality Act to prohibit funds 
     authorized under that Act to be use for training activities 
     for refugees.
       The Senate recedes.
     Rehabilitation Act
       458. The House bill, but not the Senate amendment, provides 
     that the Act retains current law and has no legal effect on 
     the Rehabilitation Act of 1973.
       The House recedes.
       459. The Senate amendment, but not the House bill, explains 
     that references in title II, subtitle A, of the Workforce 
     Development Act of 1995, unless otherwise noted, are to the 
     Rehabilitation Act of 1973.
       The House recedes.
       460. The Senate amendment, but not the House bill, amends 
     section 2(a)(4) of the Rehabilitation Act by indicating that 
     increased employment of individuals with disabilities can be 
     achieved through implementation of a statewide workforce 
     development system that provides meaningful and effective 
     participation for such individuals in workforce development 
     activities and through title I of the Rehabilitation Act. The 
     Senate amendment also amends section 2(b)(1)(A) of the 
     Rehabilitation Act by adding that empowering individuals with 
     disabilities can occur through statewide workforce 
     development systems that include comprehensive and 
     coordinated programs of vocational rehabilitation.

[[Page H8453]]

       The House recedes with an amendment striking ``and (2) in 
     subsection (b)(1)(A)'', by inserting ``statewide workforce 
     development systems that include, as integral components,'' 
     after ``(A)''; and inserting ``(2) in subsection (b)(1)(A), 
     by striking `and coordinated' and inserting prior to the 
     semicolon, `that coordinate with statewide workforce 
     development systems''.
       461. The Senate amendment, but not the House bill, repeals 
     section 6 of the Rehabilitation Act that allows consolidated 
     plans from State vocational rehabilitation agencies and State 
     developmental disabilities councils.
       The Senate recedes.
       462. The Senate amendment, but not the House bill, amends 
     section 7 of the Rehabilitation Act by conforming definitions 
     with the Work Force Development Act.
       The House recedes with conforming amendments.
       463. The Senate amendment, but not the House bill, amend 
     section 12(a)(1) of the Rehabilitation Act by giving the 
     Commissioner of the Rehabilitation Services Administration 
     the authority to provide consultative services and technical 
     assistance to public and nonprofit private agencies to 
     achieve the meaningful participation of individuals with 
     disabilities in the statewide workforce development system.
       The House recedes with conforming amendments.
       464. The Senate amendment, but not the House bill, amends 
     section 13 of the Rehabilitation Act by conforming data 
     collection with the Workforce Development Act of 1995.
       The House recedes with conforming amendments.
       465. The Senate amendment, but not the House bill, amends 
     section 14(a) of the Rehabilitation Act by conforming 
     evaluation requirements with the Workforce Development Act of 
     1995. The Senate amendment also states that the Secretary may 
     modify or supplement such benchmarks, under certain 
     conditions, to address unique conditions associated with 
     reporting on individuals with disabilities.
       The House recedes with conforming amendments.
       466. The Senate amendment, but not the House bill, amends 
     section 100(a)(1)(F) of the Rehabilitation Act by adding to 
     the finding the term ``workforce development activities''.
       The House recedes.
       467. The Senate amendment, but not the House bill, adds a 
     new (G) to section 100(a)(1) of the Rehabilitation Act, a 
     finding which states that linkages between vocational 
     rehabilitation program and other components of the workforce 
     development system are critical to the effective and 
     meaningful participation of individuals with disabilities in 
     workforce development activities.
       The House recedes with conforming amendments.
       468. The Senate amendment, but not the House bill, amends 
     section 100(a)(2) of the Rehabilitation Act, which expresses 
     the purpose of title I, adding specifications that a program 
     of vocational rehabilitation is an integral component of a 
     statewide workforce development system.
       The House recedes with an amendment striking ``an integral 
     component of'' and inserting ``coordinated with the'' and 
     conforming amendments.
       469. The Senate amendment, but not the House bill, amends 
     section 101(a) of the Rehabilitation Act, conforming the 
     schedule for submitting the State plan under title I of the 
     Rehabilitation Act to coincide with the schedule for 
     submission of the workforce plan, and requires that the State 
     plan required under title I of the Rehabilitation Act be 
     submitted to any State workforce development board for review 
     and comment, and submission of such comments to the 
     appropriate designated State unit which administers the 
     vocational rehabilitation program.
       The House recedes with an amendment striking paragraph 
     ``(3)'' and inserting ``(3) by striking paragraphs (10)(A), 
     (15)A-B), (27), (28) and (30)''; striking paragraphs ``(6)'' 
     and ``(7)''; and conforming amendments.
       470. The Senate amendment, but not the House bill, adds a 
     new paragraph (3) with regard to improving and expanding 
     vocational rehabilitation services for individuals with 
     disabilities.
       The Senate recedes.
       471. The Senate amendment, but not the House bill, adds in 
     paragraph (6) (so redesignated), that the State plan shall 
     include the results of a comprehensive, statewide needs 
     assessment.
       The House recedes with an amendment to section 101(a)(9) to 
     include, in the assessment, the utilization of community 
     rehabilitation programs funded under the Javits-Wagner-O'Day 
     Act and State use contracting programs and clarifying that 
     training may be provided to counselors and other personnel.
       472. The Senate amendment, but not the House bill, amends 
     subparagraph (A) of paragraph (8) as redesignated, by 
     consolidating provisions pertaining to personnel development.
       The House recedes.
       473. The Senate amendment, but not the House bill, deletes 
     in section 101(a) of the Rehabilitation Act, in paragraph (9) 
     as redesignated, reference to individuals at extreme medical 
     risk.
       The Senate recedes.
       474. The Senate amendment, but not the House bill, makes 
     technical changes to section 101(a) of the Rehabilitation 
     Act, in paragraph (10) as redesignated, substituting the term 
     ``individualized employment plan'' for the term 
     ``individualized written rehabilitation program.''
       The House recedes with conforming amendments.
       475. The Senate amendment, but not the House bill, amends 
     paragraph (11) as redesignated, allowing for entering into 
     cooperative agreements with entities that are and are not 
     part of the workforce development system.
       The House recedes with conforming amendments.
       476. The Senate amendment, but not the House bill, adds in 
     paragraph (14) as redesignated, the requirement for timely 
     notice of public hearings, collecting comments, and 
     disseminating information about how comments affect the 
     delivery of services.
       The Senate recedes.
       477. The Senate amendment, but not the House bill, amends 
     paragraph (16) as redesignated, establishing the obligation 
     to make referrals within the workforce development system.
       The House recedes.
       478. The Senate amendment, but not the House bill, amends 
     paragraph (17) as redesignated, by transferring the current 
     law provisions of Sec. 101(a)(30) of the Rehabilitation Act 
     which describes how the needs of individuals who are not in 
     special education can access and receive vocational 
     rehabilitation services.
       The House recedes.
       479. The Senate amendment, but not the House bill, amends 
     section 102 of the Rehabilitation Act by substituting the 
     term ``individualized employment plan'' for the term 
     ``individualized written rehabilitation program'', wherever 
     it appears.
       The House recedes.
       480. The Senate amendment, but not the House bill, amends 
     section 103 of the Rehabilitation Act by removing the 
     authority to use title I funds of the Rehabilitation Act for 
     surgery or construction.
       The Senate recedes.
       481. The Senate amendment, but not the House bill, amends 
     section 105 of the Rehabilitation Act by encouraging links 
     between members of the Council and any boards established 
     under the Workforce Development Act of 1995.
       The House recedes with conforming amendments.
       482. The Senate amendment, but not the House bill, amends 
     section 106(a)(1) of the Rehabilitation Act to require that 
     standards and indicators, to the maximum extent appropriate, 
     will be consistent with benchmarks established under the 
     Workforce Development Act of 1995. The Senate amendment also 
     provides that the Secretary may modify or supplement such 
     benchmarks, under certain conditions, to address unique 
     conditions associated with reporting on individuals with 
     disabilities.
       The House recedes with an amendment that specifies the 
     application of this requirement to future standards and 
     indicators under the authority of the Commissioner of the 
     Rehabilitation Services Administration to modify or 
     supplement such benchmarks.
       483. The Senate amendment, but not the House bill, amends 
     Title I by repealing part C, Innovation and Expansion Grants, 
     and redesignating parts D, American Indian Vocational 
     Rehabilitation Services, and E, Vocational Rehabilitation 
     Services Client Information, as parts C and D.
       The Senate recedes.
       484. The Senate amendment, but not the House bill, makes 
     conforming amendments to the Rehabilitation Act of 1973.
       The Senate recedes.
       485. The Senate amendment, but not the House bill, provides 
     that amendments to the Rehabilitation Act take effect upon 
     enactment, except that statewide system requirements, 
     specifically provisions that relate to State benchmarks or 
     other components of a statewide system, shall take effect in 
     a State that submits and obtains approval of an interim plan 
     under section 173 for program year 1997 on July 1, 1997; and 
     in any other State, on July 1, 1998.
       The House recedes with an amendment to conform the dates 
     with the rest of the Act.
     Higher education privatization
       486. The House bill, but not the Senate amendment, requires 
     Sallie Mae's current Board of Directors to develop a 
     reorganization plan for the restructuring of the 
     Association's ownership. Current shares in Sallie Mae would 
     be converted into shares in a newly formed Holding Company 
     chartered in a State or the District of Columbia.
       The Senate recedes with an amendment providing that the 
     Student Loan Marketing Association (SLMA) shall either vote 
     to reorganize as a private company or shall be dissolved. In 
     either instance, SLMA as a government sponsored enterprise 
     with implicit Federal financial backing, shall cease to 
     exist. The amendment specifies that within 18 months of the 
     date of enactment, SLMA's board of directors shall develop a 
     plan for reorganization and present such plan to its 
     shareholders for approval. In the event that the shareholders 
     agree to the plan, a newly formed corporation shall coexist 
     with the current GSE until 2008. This lengthy transition is 
     necessary for budget purposes, during which time only the GSE 
     may engage in Federal student loan activity authorized under 
     the Higher Education Act of 1965. In the event that the 
     shareholders do not agree to reorganize, SLMA shall submit to 
     the Secretary of the Treasury a plan outlining how it will 
     cease all business activities by the year 2013.

[[Page H8454]]

       487. The House bill, but not the Senate amendment, requires 
     that the reorganization plan be approved by the holders of a 
     majority of Sallie Mae's outstanding stock. As defined, the 
     ``reorganization effective date'' means the date determined 
     by the Association Board of Directors pending stockholder 
     approval, but no later than 18 months after the enactment of 
     this section.
       The House recedes.
       488. The House bill, but not the Senate amendment, 
     clarifies that, except as specifically modified by the 
     provisions of section 440, the provisions of section 439 of 
     the Higher Education Act continue to apply in full force and 
     effect to the Association during its wind-down period 
     following the reorganization of its ownership. The Holding 
     Company and its other subsidiaries shall not be entitled or 
     subject to any of the rights, privileges, obligations or 
     limitations applicable to the Association under section 439, 
     except as specifically provided in section 440. This section 
     clarifies that the Holding Company and its non-GSE 
     subsidiaries shall not purchase federally-insured student 
     loans until the Association ceases to purchase such loans, 
     except for the Association's purchase of such loans as a 
     lender-of-last-resort or under agreement with the Secretary 
     of Education pursuant to section 440(c)(6).
       The House recedes.
       489. The House bill, but not the Senate amendment, 
     specifies that, as soon as practicable after the 
     reorganization, the Association would be required to use its 
     best efforts to transfer to the Holding Company or its non-
     GSE subsidiaries all real and personal property, including 
     intangibles held by the Association, except for property 
     defined as ``remaining property.'' Remaining property would 
     include the financial, program-related assets and obligations 
     of the Association, such as debt obligations, student loans, 
     portfolio investments, letters of credit, outstanding swap 
     agreements and forward purchase commitments. Such property 
     could be transferred out of the GSE subsequently, so long as 
     the GSE continued to maintain adequate capital to meet the 
     requirements of section 439(r), as amended.
       The House recedes.
       490. The House bill, but not the Senate amendment, 
     specifies that at the time of the reorganization, the 
     employees of the Association will become employees of the 
     Holding Company or the other subsidiaries. This provision 
     requires the Holding Company and the subsidiaries to provide 
     management and operational support for the Association during 
     the wind-down as requested by the Association. The 
     Association is also specifically empowered to obtain 
     management and operational support from persons other than 
     the Holding Company and the subsidiaries.
       The House recedes.
       491. The House bill, but not the Senate amendment, 
     clarifies that the Association may pay dividends in the form 
     of cash or noncash distributions to the Holding Company, just 
     as it may pay dividends to shareholders under current law. 
     The payment of dividends would continue to be subject to the 
     requirements of section 439(r).
       The House recedes.
       492. The House bill, but not the Senate amendment, provides 
     that for purposes of calculating compliance with the 
     Association's capital requirements, any distribution of 
     noncash assets by the Association to the Holding Company is 
     to be valued at net book value as of the date the 
     distribution was approved by the Association's Board of 
     Directors.
       The House recedes.
       493. The House bill, but not the Senate amendment, limits 
     the Association's ability to engage in new business 
     activities or acquire new assets following the 
     reorganization. Activities may be undertaken in connection 
     with student loan purchases through September 30, 2005; in 
     connection with contractual commitments for future 
     warehousing advances, where such commitments are outstanding 
     as of the date of the reorganization; or pursuant to a letter 
     of credit or standby bond purchase agreement that is 
     outstanding as of such date. Activities may also be 
     undertaken in connection with the GSE's role as lender of 
     last resort pursuant to section 439. Finally, activities may 
     be undertaken pursuant to agreements entered into with the 
     Secretary of Education if the Secretary requests the 
     Association to continue or resume its secondary market 
     purchase program. The Secretary may make such a request only 
     after determining that there is inadequate liquidity for 
     loans made under Part B of Title IV of the Higher Education 
     Act. Any such agreement shall cover a period of 12 months, 
     but may be renewed if the Secretary determines that liquidity 
     remains inadequate. The provision provides that the offset 
     fee provided under section 439(h)(7) shall not apply to loans 
     acquired pursuant to any such agreement.
       The House recedes.
       494. The House bill, but not the Senate amendment, 
     prohibits the Association from issuing new debt obligations 
     that mature later than September 30, 2009, except in 
     connection with fulfilling the Association's lender of last 
     resort role or with purchasing loans under an agreement with 
     the Secretary of Education described in the previous 
     paragraph.
       The House recedes.
       495. The House bill, but not the Senate amendment, 
     establishes new requirements to the safety and soundness 
     requirements currently applicable to the Association under 
     the Higher Education Act. The GSE is required to obtain such 
     information and keep such records as the Secretary of the 
     Treasury may prescribe concerning any material financial risk 
     to the Association which could reasonably result form the 
     activities of the Holding Company or its non-GSE 
     subsidiaries. The GSE must also keep records relating to the 
     policies, procedures and systems used by the GSE to monitor 
     and control such risk. The summary reports may be required by 
     the Secretary of the Treasury, but no more frequently than 
     quarterly.
       The House recedes.
       496. The House bill, but not the Senate amendment, imposes 
     requirements to ensure that a substantial degree of 
     separation is maintained between the Association and its 
     affiliates, including (i) the assets of the Association shall 
     be maintained separately from those of the Holding Company 
     and its other subsidiaries and may be used only in connection 
     with the Association's purposes and obligations; (ii) the 
     Association's books and records shall clearly reflect the 
     assets and liabilities of the Association, separate from the 
     assets and liabilities of the Holding Company and its other 
     subsidiaries; (iii) the Association's corporate office shall 
     be physically separate from all offices of the Holding 
     Company and its other subsidiaries; (iv) no director of the 
     Association who is appointed by the President may serve as a 
     director of the Holding Company; (v) at least one of the 
     Association's officers shall be an officer solely of the 
     Association; (vi) transactions between the Association and 
     the Holding Company and its subsidiaries shall be on terms no 
     less favorable than the Association would receive from a 
     third party; (vii) the Association shall not extend credit to 
     the Holding Company or its subsidiaries or guarantee or 
     provide credit enhancement for any debt of the Holding 
     Company or the subsidiaries; (viii) any amounts collected on 
     behalf of the Association by the Holding Company or its other 
     subsidiaries with respect to the assets of the Association 
     are required to be immediately deposited to an account 
     controlled solely by the Association. No restrictions shall 
     apply to directors of the Association not appointed by the 
     President.
       The House recedes.
       497. The House bill, but not the Senate amendment, provides 
     that under no circumstances shall the assets of the 
     Association be available to pay claims or debts incurred by 
     the Holding Company.
       The above requirement shall not limit the right of the 
     Association to pay dividends that are otherwise permissible 
     and shall not limit any liability of the Holding Company that 
     is explicitly provided for in Part B.
       The House recedes.
       498. The House bill, but not the Senate amendment, limits 
     the Holding Company's activities to the ownership of the 
     Association and its other subsidiaries during the wind-down 
     period, and all business activities shall be conducted at the 
     subsidiary level.
       The House recedes.
       499. The House bill, but not the Senate amendment, gives 
     the Holding Company, as sole shareholder of Sallie Mae, the 
     authority to choose the shareholder-elected members of the 
     Association's Board of Directors. The directors will not be 
     required to meet current eligibility standards.
       The House recedes.
       500. The House bill, but not the Senate amendment, requires 
     the Holding Company to issue to the Secretary of the Treasury 
     200,000 stock warrants, each warrant entitling the holder to 
     purchase a share of stock of the Holding Company at any time 
     on or before September 30, 2009.
       The House recedes.
       501. The House bill, but not the Senate amendment, provides 
     that after the reorganization, the Holding Company shall not 
     sell, pledge, or otherwise transfer any outstanding shares of 
     the Association, or cause the Association to liquidate or 
     file bankruptcy, without the approval of the Secretary of the 
     Treasury and the Secretary of Education.
       The House recedes.
       502. The House bill, but not the Senate amendment, limits 
     the period for winding down the GSE activities of the 
     Association to September 30, 2009. The Association may 
     determine to cease its activities and dissolve prior to 
     September 30, 2009, unless the Secretary of Education 
     determines that the Association continues to be needed as a 
     leader of last resort or continues to be needed to purchase 
     loans in furtherance of an agreement under section 440(a)(6).
       The House recedes.
       503. The House bill, but not the Senate amendment, requires 
     at the end of the period all of the Association's outstanding 
     debt obligations to be transferred to a trust that will 
     satisfy all payment obligations on the remaining debt issues 
     which will retain the attributes accorded them by the 
     Association's statutory charter. The Association must deposit 
     certain qualifying assets into the trust. The assets are to 
     be transferred irrevocably, solely for the benefit of the 
     holders of the Association's debt obligations, and in such 
     amount as is determined by the Secretary of the Treasury to 
     be sufficient to pay the principal and interest on the 
     outstanding debt obligations according to their terms. To the 
     extent that the Association cannot provide qualifying assets 
     in the amount required, the Holding Company shall be required 
     to transfer such assets in an amount necessary to prevent any 
     deficiency.
       The House recedes.
       504. The House bill, but not the Senate amendment, requires 
     the trust to transfer

[[Page H8455]]

     any remaining assets to either the Holding Company or its 
     subsidiaries as directed by the Holding Company.
       The House recedes.
       505. The House bill, but not the Senate amendment, requires 
     that after funding the trust and prior to dissolution, the 
     Association must take whatever actions are necessary to 
     discharge all other obligations of the Association, including 
     the repurchase or redemption of the Association's preferred 
     stock. Any such obligations that cannot be fully satisfied, 
     shall become liabilities of the Holding Company as of the 
     date of dissolution.
       The House recedes.
       506. The House bill, but not the Senate amendment, requires 
     that to the extent that any assets remain in the Association 
     following the foregoing procedures, such assets shall be 
     transferred to the Holding Company.
       The House recedes.
       507. The House bill, but not the Senate amendment, 
     specifies that the number and composition of the Board of 
     Directors of the Holding Company shall be as set forth in the 
     Holding Company's charter or bylaws and as permissible under 
     the laws of the jurisdiction of its incorporation.
       The House recedes.
       508. The House bill, but not the Senate amendment, 
     specifically prohibits the use of the name ``Student Loan 
     Marketing Association'' and allows the use of ``Sallie Mae'' 
     to the extent permitted by the applicable State or DC law.
       The House recedes.
       509. The House bill, but not the Senate amendment, 
     specifically permits the Association to assign to the Holding 
     Company or any of its other subsidiaries the name ``Sallie 
     Mae,'' to be used as a trademark or service mark. The bill 
     includes a fee of $5 million in 1996 for the right to assign 
     the name.
       The House recedes.
       510. The House bill, but not the Senate amendment, requires 
     certain disclosures to be made during the period commencing 
     after the reorganization and ending three years after the 
     dissolution of the Association.
       The House recedes.
       511. The House bill, but not the Senate amendment, makes 
     clear that, except as explicitly provided, the section is not 
     intended to limit the authority of the Association to act as 
     a federally chartered GSE or the authority of the Holding 
     Company to take any actions that are lawful for a State-
     chartered corporation.
       The House recedes.
       512. The House bill, but not the Senate amendment, grants 
     authority to the Attorney General, upon request of the 
     Secretary of Education or the Secretary of the Treasury, to 
     enforce the provisions of new Section 440, by action brought 
     tin the United States District Court for the District of 
     Columbia.
       The House recedes.
       513. The House bill, but not the Senate amendment, sets a 
     deadline of 18 months after the effective date of the section 
     for the occurrence of the reorganization pursuant to which 
     Sallie Mae's outstanding common stock will be converted to 
     common stock of the Holding Company. If the reorganization 
     has not taken place by 18 months after the effective date of 
     section 440, this subsection provides that the section shall 
     be of no further force and effect.
       The House recedes.
       514. The House bill, but not the Senate amendment, sets 
     forth the defined terms used throughout section 440.
       The House recedes.
       515. The House bill, but not the Senate amendment, sets 
     forth technical amendments to the Higher Education Act.
       The House recedes.
       516. The House bill, but not the Senate amendment, permits 
     the Holding Company and any of its subsidiaries to be 
     eligible lenders under the Higher Education Act for secondary 
     market purposes.
       The House recedes.
       517. The House bill, but not the Senate amendment, 
     supplements existing safety and soundness requirements 
     applicable to the Association by amending Section 439(r) of 
     the Higher Education Act to authorize the Attorney General, 
     upon request of the Secretary of Education or the Secretary 
     of the Treasury to enforce such requirements in an action 
     before the United States District Court for the District of 
     Columbia.
       The House recedes.
       518. The House bill, but not the Senate amendment, amends 
     the safety and soundness requirements set forth in Section 
     439(r). The subsection supplements the reports provided by 
     the Association in support of its safety and soundness 
     requirements by requiring the Association to provide to the 
     Secretary of the Treasury, within 45 days of the end of each 
     calendar quarter, financial statements and quarterly reports 
     setting forth the calculation of the Association's capital 
     ratio. The subsection also amends the safety and soundness 
     provisions relating to the Association's capital ratio by 
     providing new capital requirements applicable to the 
     Association after January 1, 2000, if the Association's 
     shareholders have approved the reorganization. At such time, 
     the Association will be required to maintain a capital ratio 
     of 2.25 percent for any quarter. If the Association fails to 
     maintain such ratio, the Secretary of the Treasury may take 
     certain specified actions to limit increases in the 
     Association's liabilities, restrict growth in the 
     Association's assets (other than student loan purchases and 
     warehousing advances), restrict capital distributions by the 
     Association, require that the Association issue new capital 
     sufficient to restore the capital ratio to the required 2.25 
     percent, and limit certain increases in the executive 
     compensation paid by the Association. However, if the 
     Association's capital ratio for any quarter falls below 2.25 
     percent, but is equal to or in excess of 2 percent, the 
     Secretary must defer taking such actions until the next 
     quarter and then may proceed with such actions only if the 
     capital ratio remains below 2.25 percent. Further, the 
     Association is deemed to be in compliance with its capital 
     ratio requirements if it is rated by two nationally 
     recognized statistical rating organizations, without regard 
     to its status as a federally chartered corporation, in one of 
     the two highest full rating categories.
       The House recedes.
       519. The House bill, but not the Senate amendment, provides 
     that upon the dissolution of the Association and the creation 
     of the trust pursuant to new section 440(d), both the 
     Association's Federal charter and section 439, shall be 
     repealed.
       The House recedes.
       520. The House bill, but not the Senate amendment, 
     privatizes the College Construction Loan Insurance 
     Association (``Connie Lee,'' or ``the Corporation'').
       The Senate recedes with an amendment repealing the 
     authorizing legislation which created Connie Lee. The 
     Secretary of the Treasury is required to sell the Connie Lee 
     stock owned by the Secretary of Education within 6 months of 
     the date of enactment of this legislation ensuring the total 
     privatization of Connie Lee. Connie Lee will no longer have a 
     Federal charter or any ties to the Federal Government.
       521. The House bill, but not the Senate amendment, repeals 
     Federal restrictions on Connie Lee's activities.
       The House recedes.
       522. The House bill, but not the Senate amendment, 
     restricts stock ownership in the Corporation for government 
     agencies, government corporations, and government sponsored 
     enterprises, including Sallie Mae. Specifically, Sallie Mae 
     may continue to own stock held as of the day of enactment, 
     but may not acquire new stock in the Corporation until such 
     time as Sallie Mae is privatized.
       The House recedes.
       523. The House bill, but not the Senate amendment, 
     prohibits Sallie Mae from controlling the operations of the 
     Corporation, but allows it to retain its current 
     representation on the board of the Corporation. The House 
     bill further prevents Sallie Mae from providing financial 
     support or guarantees to the Corporation.
       The House recedes.
       524. The House bill, but not the Senate amendment, requires 
     that, for a five year period following enactment, the 
     Corporation shall disclose that it is not a government 
     sponsored corporation or instrumentality.
       The House recedes.
       525. The House bill, but not the Senate amendment, 
     prohibits the Corporation from using the name College 
     Construction Loan Insurance Association.
       The House recedes.
       526. The House bill, but not the Senate amendment, requires 
     certain amendments to the Corporation's Articles of 
     Incorporation.
       The House recedes.
       527. The House bill, but not the Senate amendment, places 
     certain reporting requirements on the Corporation for a 
     period of two years.
       The House recedes.
       528. The House bill, but not the Senate amendment, requires 
     the Secretary of the Treasury to sell the federally held 
     stock in the Corporation within six months of the date of 
     enactment.
       The House recedes.
       529. The House bill, but not the Senate amendment, requires 
     that, in the event that the Secretary of the Treasury cannot 
     sell the federally held stock to another entity, the 
     Corporation must repurchase the stock at a price not to 
     exceed the value estimated by the Congressional Budget 
     Office.
       The House recedes.
     Museums and library services
       530. The House bill consolidates the Federal library 
     programs under the Library Services and Construction Act, the 
     Elementary and Secondary Education Act, and Title II of the 
     Higher Education Act into one Federal libraries program 
     focused on helping libraries acquire and use new technologies 
     and forging electronic ties among libraries and between 
     libraries and one-stop career centers.
       The Senate amendment creates a new Institute of Museums and 
     Library Services, and consolidates into it the functions of 
     the Institute of Museum Services (IMS), along with Federal 
     library programs under the Library Services and Construction 
     Act and Title II of the Higher Education Act. Focuses of the 
     Senate amendment include technology, life-long learning, and 
     information access for those needing special services.
       Legislative counsel.
       531. The House bill authorizes $110 million for each of 
     fiscal years 1997, 1998, 1999, 2000, 2001, and 2002 for 
     library technology programs under this act. The House bill 
     further authorizes the forward funding of these programs.
       The House and Senate recede with an amendment authorizing 
     $150 million for fiscal year 1997 and such sums for fiscal 
     year 1998 through fiscal year 2002. The amendment

[[Page H8456]]

     provides for forward funding and an additional authorization 
     of appropriations to effect a timely transition to the new 
     authorization. Additional amounts as may be necessary are 
     authorized to be appropriated for the fiscal year prior to 
     the first year in which appropriations are made under the 
     forward funding procedure.
       531a. The Senate amendment authorizes $75 million for 
     Fiscal Year 1996 and such sums as necessary for fiscal years 
     1997-2000 for library technology programs.
       The Senate recedes.
       531b. The Senate amendment, but not the House bill, 
     authorizes $75 million for Fiscal Year 1996 and such sums as 
     necessary for fiscal years 1997-2000 to provide library 
     services to special populations.
       The Senate recedes.
       531bb. The Senate amendment, but not the House bill, allows 
     for the transfer of funds between the Secretary of Education 
     and the Director of Museum Services.
       The House recedes.
       531c. The Senate amendment, but not the House bill, 
     provides that no less than 5% nor more than 7% of library 
     funds be used for joint projects with museums.
       The Senate recedes.
       531d. The Senate amendment, but not the House bill, allows 
     not more than 10% of funds appropriated for library services 
     under this Act to be spent for Federal administration.
       The House recedes with an amendment limiting administrative 
     funds to 3 percent.
       531e. The Senate amendment, but not the House bill, 
     authorizes $28,700,000 for FY1996, and such sums as necessary 
     for Fiscal Years 1997-2000 for museum services under this 
     Act.
       The House recedes with an amendment authorizing $28,700,000 
     for fiscal year 1997, and such sums as may be necessary for 
     fiscal year 1998 through fiscal year 2002.
       531f. The Senate amendment, but not the House bill, allows 
     not more than 10% of funds appropriated for museum services 
     to be used for administrative expenses.
       The House recedes.
       531g. The Senate amendment, but not the House bill, 
     provides that not less than 5% nor more than 7% of 
     appropriated museum funding be used for joint projects with 
     libraries.
       The Senate recedes.
       531h. The Senate amendment, but not the House bill, 
     mandates that funds made available for museum services under 
     this Act shall remain available until expended.
       The House recedes.
       531i. The Senate amendment, but not the House bill, 
     authorizes such sums as necessary for the Arts and Artifacts 
     Indemnity Act.
       The Senate recedes.
       532. The Senate amendment, but not the House bill, amends 
     the Museum Services Act.
       The House recedes.
       533. The Senate amendment, but not the House bill, includes 
     certain definitions.
       The House recedes.
       534. The Senate amendment, but not the House bill, 
     establishes an Institute of Museum and Library Services.
       The House recedes.
       535. The Senate amendment, but not the House bill, provides 
     for the appointment of a Director of the Institute of Museum 
     and Library Services by the President with the advice and 
     consent of the Senate. The Senate amendment further provides 
     that the Director will serve for a term of 4 years, and that 
     the appointment will alternate between individuals with 
     expertise in library and museum services.
       The House recedes.
       536. The Senate amendment, but not the House bill, provides 
     for the appointment by the Director of Deputy Directors for 
     the offices of Library Services and Museum Services.
       The House recedes with an amendment striking paragraph (b).
       537. The Senate amendment, but not the House bill, provides 
     for the staffing of the Institute by the Director.
       The House recedes.
       538. The Senate amendment, but not the House bill, provides 
     the Director with the authority to accept or solicit gifts 
     and bequests on behalf of the Institute.
       The House recedes.
       539. The Senate amendment, but not the House bill, sets 
     forth purposes for funding of museum services under this 
     subtitle.
       The House recedes.
       540. The Senate amendment, but not the House bill, sets 
     forth definitions for this subtitle.
       The House recedes with an amendment providing a definition 
     of ``State'' for this subtitle to mean, in addition to the 
     several States of the Union, the Commonwealth of Puerto Rico, 
     the District of Columbia, Guam, American Samoa, the Northern 
     Mariana Islands, the Virgin Islands, the Federated States of 
     Micronesia, the Republic of the Marshall Islands, and the 
     Republic of Palau.
       541. The Senate amendment, but not the House bill, empowers 
     the Director of the Institute to award grants for Museum 
     improvements, and outlines purposes for which the grants may 
     be used.
       The House recedes with an amendment adding model programs 
     demonstrating cooperative efforts between libraries and 
     museums to the list of museum services activities.
       541a. The Senate amendment, but not the House bill, allows 
     the Director to enter into contract or cooperative agreements 
     for the improvement of museums.
       The House recedes.
       541b. The Senate amendment, but not the House bill, limits 
     the Federal share of activities funded under this section.
       The House recedes.
       541c. The Senate amendment, but not the House bill, 
     requires the Director to develop procedures for reviewing 
     assistance made under this Section.
       The House recedes.
       542. The Senate amendment, but not the House bill, provides 
     for an assessment of collaborative efforts that museums can 
     engage in to serve the public more effectively, applicable 
     only in years when appropriations for museum services exceed 
     $28.7 million.
       The Senate recedes.
       543. The Senate amendment, but not the House bill, allows 
     the Director to annually award a national award for museum 
     services to outstanding museums for significant contributions 
     in service to the community.
       The House recedes.
       544. The Senate amendment, but not the House bill, 
     establishes a National Museum Service Board appointed by the 
     President with advice and consent of the Senate.
       The House recedes.
       544a. The Senate amendment, but not the House bill, sets 
     forth qualifications for appointment to the Board.
       The House recedes.
       544b. The Senate amendment, but not the House bill, 
     provides for 5 year staggered terms for members of the board.
       The House recedes.
       544c. The Senate amendment, but not the House bill, sets 
     forth the powers and duties of the board. The Senate 
     amendment further outlines the structure and general 
     operating rules of the Board.
       The House recedes.
       545. The Senate amendment, but not the House bill, amends 
     the National Commission on Libraries and Information Science 
     Act to provide the commission with the responsibility of 
     advising the Director of the Institute of Museum and Library 
     Services on matters relating to library services. The Senate 
     amendment further outlines procedures for advising the 
     Director and modifies membership and membership criteria for 
     the commission.
       The House recedes.
       546. The Senate amendment, but not the House bill, provides 
     for the orderly transition of functions from the Institute of 
     Museum Services (IMS) to the Institute of Museum and Library 
     Services.
       The House recedes with an amendment transferring all 
     functions formerly exercised by the Director of Library 
     Programs in the Department of Education's Office of Education 
     Research and Improvements to the Institute.
       547. The Senate amendment, but not the House bill, provides 
     an authorization for the Arts and Artifacts Indemnity Act.
       The Senate recedes.
       547a. The Senate amendment, but not the House bill, 
     transfers authority for indemnity agreements to the Director 
     of the IMLS from the Federal Council on the Arts and the 
     Humanities.
       The Senate recedes.
       547b. The Senate amendment, but not the House bill, retains 
     the definition of eligible items from current law.
       The Senate recedes.
       547c. The Senate amendment, but not the House bill, expands 
     coverage under the Act to domestic exhibits on display within 
     the U.S.
       The Senate recedes.
       547d. The Senate amendment, but not the House bill, retains 
     the applications procedure from current law.
       The Senate recedes.
       547e. The Senate amendment, but not the House bill, retains 
     the terms under which indemnity agreements are made from 
     current law.
       The Senate recedes.
       547f. The Senate amendment, but not the House bill, makes 
     conforming amendments to current law with respect to the 
     authority of the Director to issue regulations and certify 
     claims.
       The Senate recedes.
       547g. The Senate amendment, but not the House bill, retains 
     reporting requirements from current law.
       The Senate recedes.
       548. The Senate amendment, but not the House bill, provides 
     for a short title.
       The House recedes.
       549. Both the House bill and the Senate amendment provide 
     for purposes.
       The House and Senate recede with an amendment stating the 
     purpose of this subtitle.
       549a. The purposes of the House bill are limited to the 
     consolidation of library programs, providing access through 
     new technology and providing electronic linkages among 
     libraries and between libraries and integrated career center 
     systems. The House bill contains no recognition of need.
       The House recedes.
       549b. The purposes of the Senate amendment include an 
     emphasis on life-long access to learning and library 
     information resources as well as preparing libraries for 
     service in the 21st Century in the areas of access to 
     electronic networks, workforce and economic development, and 
     adequate provision of resources and services to special 
     populations.
       The Senate recedes.
       550. Both the House bill and the Senate amendment provide 
     definitions relative to library services. However, 
     definitions in the House bill are in title I of the House 
     bill.

[[Page H8457]]

       The House recedes.
       550a. The Senate amendment includes definitions of 
     ``library consortia,'' ``library entity,'' and ``public 
     library.'' The House bill includes a definition of 
     ``library'' in the general definitions section. (See Note 
     50.)
       The House and Senate recede with an amendment retaining the 
     definitions of ``library consortia'' and ``State''; striking 
     the definition of ``library entity'' and ``State advisory 
     council,'' and modifying the definition of ``library''.
       550b. Both the House bill and the Senate amendment include 
     a definition of ``State library administrative agency''. The 
     Senate amendment also includes a definition of ``State 
     Plan''. (See Note 80.)
       The Senate recedes on the definition of ``STATE LIBRARY 
     ADMINISTRATIVE AGENCY'' and the House recedes on the 
     definition of ``STATE PLAN''.
       551. The Senate amendment, but not the House bill, reserves 
     1\1/2\% of funds appropriated for serving Indian Tribes. In 
     the House bill, Indian Tribes may use funds allotted under 
     section 325 for library services.
       The House recedes.
       551a. The Senate amendment, but not the House bill, 
     reserves 8% of allotted funds for a national leadership 
     program in library services.
       The House recedes with an amendment reserving 4 percent of 
     allotted funds for ``National Leadership Grants'', and 
     specifying that if these funds have not been obligated by the 
     end of the fiscal year in which they are reserved, that they 
     shall be reobligated in the next fiscal year to the States as 
     part of the States' formula grant. The House amendment 
     further stipulates that States may carryover unobligated 
     funds for use in the next fiscal year.
       552. Both the House bill and the Senate amendment provide 
     for minimum State allotments. However, the House bill does 
     not provide funding for the Freely Associated States.
       The House recedes with an amendment providing that funds 
     allotted to the ``Freely Associated States'' be reserved for 
     competitive grants to all outlying areas based on the 
     recommendations by the Pacific Region Educational Lab to the 
     Director, limits the Pacific Regional Education Laboratory to 
     using no more than 5 percent of these funds for 
     administrative purposes, and specifies that eligibility for 
     assistance under this Act for the Republic of the Marshall 
     Islands, the Federated States of Micronesia, and the Republic 
     of Palau shall terminate as of September, 30, 2001.
       552aa. The House bill and the Senate amendment both provide 
     allotments.
       The House recedes with an amendment authorizing the State 
     minimum allotment at $340,000.
       552a. Both the House bill and the Senate amendment provide 
     for the ratable reduction of funds should appropriations be 
     insufficient.
       Legislative counsel.
       552b. Both the House bill and the Senate amendment allot 
     remaining funds based on State populations.
       Legislative counsel.
       553. The House bill, but not the Senate amendment, requires 
     the Secretary to make grants to States that will meet minimum 
     requirements such as submitting an approved application, 
     providing 100% of the amount of the grant to the State 
     library administrative agency, and requiring that agency to 
     use the allocated funds to carry out activities described in 
     the application. The House bill further provides that such 
     grant will be the lesser of the sum of the initial allotment 
     and the additional allotment or 75% of the total cost of the 
     activities described in the application.
       The House recedes.
       554. Both the House bill and the Senate amendment limit 
     administrative funding at the State level. The Senate 
     amendment limits this amount to not more than 5%. The House 
     bill limits State administrative funding to 3% elsewhere in 
     this Subtitle.
       The Senate recedes with an amendment allowing States to use 
     no more than 4 percent of funds allotted for administrative 
     purposes.
       555. The Senate amendment establishes the Federal share for 
     programs under this subtitle and sets forth maintenance of 
     effort provisions. The House bill establishes the Federal 
     share for programs under this subtitle, but does not require 
     maintenance of effort.
       The House recedes.
       555a. The Senate amendment sets the Federal share for State 
     projects at 50% with higher Federal shares for the Trust 
     Territories, and defines non-Federal share. The House bill 
     sets the Federal share for State projects at 75%, and makes 
     no distinction for the Trust Territories.
       The House recedes with an amendment setting the Federal 
     share for the States and Trust Territories at 66 percent.
       555b. The Senate amendment, but not the House bill, reduces 
     a State's allocation if the State fails to maintain its 
     funding level for library services. The reduction in Federal 
     allocation is in proportion to the reduction in State effort.
       The House recedes with an amendment clarifying that States 
     may reduce their maintenance-of-effort in proportion to any 
     Federal reduction without being penalized.
       555c. The Senate amendment, but not the House bill, 
     provides a waiver for reductions in a State's allocation 
     under this subsection if the reduction in State efforts is 
     due to certain uncontrollable circumstances.
       The House recedes.
       556. The House bill requires that each State seeking a 
     grant under this subtitle submit an annual application 
     establishing goals and priorities consistent with the 
     purposes of this subtitle describing activities and 
     procedures to reach these goals, describing methodologies for 
     evaluation, describing procedures to involve libraries and 
     their areas in policy decisions to implement this subtitle, 
     and assuring that reporting practices required by the 
     Secretary will be implemented. The Senate amendment requires 
     States to provide similar information as part of the State 
     plan, which covers a period of 5 years.
       The Senate recedes with an amendment providing that States 
     submit a plan covering a 5 year period.
       556a. The House bill requires the Secretary to approve each 
     application which meets the requirements outlined in Note 
     556. The House bill further provides States with an 
     opportunity to revise their applications, should they fail to 
     be approved. The Senate amendment requires the Director to 
     approve a State plan if it meets the purposes of this 
     subtitle. The Senate amendment further provides that if a 
     State plan is not approved, the State will have an 
     opportunity to revise its plan, that the Director will 
     provide the State with technical assistance and that the 
     State library administrative agency will have the opportunity 
     for a hearing.
       The House recedes.
       557. The House bill, but not the Senate amendment, requires 
     that State library administrative agencies use at least 97% 
     of funds provided under this subtitle for electronically 
     connecting libraries to integrated career center systems, 
     establishing or enhancing linkages among libraries, assisting 
     libraries to access information through electronic networks, 
     encouraging the formation of library consortia, helping 
     libraries acquire and share new technologies, and improving 
     library services for individuals with special needs. The 
     Senate amendment does require that State library 
     administrative agencies follow their State plan.
       The Senate recedes with an amendment requiring State 
     agencies to expend at least 96 percent of funds received 
     under this subtitle to establish or enhance linkages among or 
     between libraries, library consortia, one-stop career 
     centers, and local service providers, or any combination 
     thereof, and to target library and information services to 
     persons having difficulty using a library and underserved 
     urban and rural communities, including children from families 
     living below the official income poverty line. Each State 
     agency may apportion funds between these purposes, as 
     appropriate, to meet the needs of the individual State.
       The Managers note that these purposes are not mutually 
     exclusive, and that enhancing electronic resources may also 
     meet the needs of disadvantaged persons.
       557a. The House bill limits the amount of each States 
     allotment used for administrative expenses by the State 
     library administrative agency to no more than 3%. The Senate 
     amendment limits this amount to 5%. (See Note 554.)
       The House recedes.
       558. The Senate amendment, but not the House bill, creates 
     a separate program to provide library services for special 
     populations. However, the House bill does make the 
     improvement of library services for special populations an 
     allowable use of funds at the discretion of the State library 
     administrative agency.
       The Senate recedes.
       559. The Senate amendment, but not the House bill, requires 
     State library administrative agencies to reserve up to 15% of 
     their Federal funds to serve children in poverty. In 
     determining this amount, the State agency shall set aside up 
     to $1.50 per preschool child from families below the poverty 
     level, and up to $1.00 per school aged child from families 
     living below the poverty levels.
       The Senate recedes.
       559a. Of the amount reserved for children in poverty, the 
     Senate amendment, but not the House bill, requires that each 
     library in the State receive a share equal to its share of 
     such children.
       The Senate recedes.
       559b. The Senate amendment, but not the House bill, allows 
     for the aggregation of funds set aside to serve children in 
     poverty, should an individual library's grant be too small to 
     be effective. The Senate amendment further prescribes 
     conditions under which such funds can be aggregated.
       The Senate recedes.
       559c. The Senate amendment, but not the House bill, 
     requires that public libraries seeking grants to serve 
     children in poverty submit a plan for how those children will 
     be served.
       The Senate recedes.
       560. The Senate amendment, but not the House bill, sets 
     forth specific criteria under which States must evaluate 
     activities undertaken in accordance with the library 
     technology and library services provisions of the Senate 
     amendment.
       The Senate recedes with an amendment moving evaluations to 
     State plan. (See Note 556)
       561. The Senate amendment, but not the House bill, requires 
     that States receiving assistance under this subtitle 
     establish a State advisory council. The Senate amendment 
     further sets forth guidelines for the composition and duties 
     of these councils.
       The House recedes with an amendment providing that a State 
     may establish a State advisory council which is broadly 
     representative of the library entities within the State.

[[Page H8458]]

       562. The Senate amendment, but not the House bill, provides 
     for grants for library services for Indian Tribes. The Senate 
     amendment further specifies the purposes for which these 
     grants can be used, requirements as to who may administer 
     these funds, and maintenance of effort requirements.
       The Senate recedes with an amendment to conform Indian 
     provisions with the rest of the Act.
       562a. The Senate amendment, but not the House bill, 
     prescribes the procedure for applying for grants under this 
     section.
       The Senate recedes.
       563. The Senate amendment, but not the House bill, 
     establishes a national leadership program for library 
     services, and sets forth activities for which such funds may 
     be used.
       The House recedes with an amendment providing for 
     ``National Leadership Grants'' to enhance the quality of 
     library services nationwide and to provide coordination with 
     museums.
       563a. The Senate amendment, but not the House bill, sets 
     forth criteria under which the director may award leadership 
     grants, including that awards be made on a competitive basis.
       The Senate recedes.
       564. The Senate amendment, but not the House bill, 
     specifies that nothing in this subtitle shall be construed to 
     interfere with State or local initiatives.
       The House recedes.
       565. The House bill repeals the Library Services and 
     Construction Act, Title II of the Higher Education Act, and 
     Part F of the Technology for Education Act.
       The Senate recedes.
       565a. The Senate amendment repeals the Library Services and 
     Construction Act and Title II of the Higher Education Act, 
     but not Part F of the Technology for Education Act.
       The Senate recedes.
       565b. Both the House bill and the Senate amendment make 
     technical and conforming amendments to reflect these repeals.
       Legislative counsel.
     Bill Goodling,
     Steve Gunderson,
     Randy ``Duke'' Cunningham,
     Howard P. ``Buck'' McKeon,
     Frank D. Riggs,
     Lindsay Graham,
     Mark Souder,
                                Managers on the Part of the House.

     Nancy Landon Kassebaum,
     Jim Jeffords,
     Dan Coats,
     Judd Gregg,
     Bill Frist,
     Mike DeWine,
     John Ashcroft,
     Spencer Abrabam,
     Slade Gorton,
     Managers on the Part of the Senate.

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