[Congressional Record Volume 142, Number 125 (Thursday, September 12, 1996)]
[Senate]
[Pages S10430-S10506]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          AMENDMENTS SUBMITTED

                                 ______
                                 

            THE TREASURY DEPARTMENT APPROPRIATIONS ACT, 1997

                                 ______
                                 

                        BYRD AMENDMENT NO. 5258

  (Ordered to lie on the table.)
  Mr. BYRD submitted an amendment intended to be proposed by him to the 
bill (H.R. 3756) making appropriations for the Treasury Department, the 
United States Postal Service, the Executive Office of the President, 
and certain independent agencies, for the fiscal year ending September 
30, 1997, and for other purposes; as follows:

       On page 49, line 18, insert before the colon ``: Provided, 
     That of such amount provided for non-prospectus construction 
     projects $250,000 shall be available until expended for the 
     acquisition, lease, construction, and equipping of flexiplace 
     work telecommuting centers in the State of West Virginia''.
                                 ______
                                 

                       KENNEDY AMENDMENT NO. 5259

  (Ordered to lie on the table.)
  Mr. KENNEDY submitted an amendment intended to be proposed by him to 
the bill, H.R. 3756, surpa; as follows:

       At the appropriate place, add the following new section:
       Sec.  . (a) None of the funds appropriated under Federal 
     law for fiscal year 1997 to the Legal Services Corporation 
     shall be expended for any purpose prohibited or limited by, 
     or contrary to, any of the provisions of section 504 of 
     Public Law 104-134 (110 Stat. 1321-53), and all funds 
     appropriated under Federal law for fiscal year 1997 to the 
     Legal Services Corporation shall be subject to the same terms 
     and conditions set forth in such section, except as provided 
     in subsection (b) or as otherwise provided in Federal law.
       (b) Notwithstanding subsection (a), subsection (a)(11) of 
     such section 504 shall not be construed to prohibit a 
     recipient from using funds derived from a source other than 
     the Corporation to provide related legal assistance to--
       (1) an alien who has been battered or subjected to extreme 
     cruelty in the United States by--
       (A)(i) a spouse or parent of the alien; or
       (ii) a member of the spouse's or parent's family residing 
     in the same household as the alien (in a case in which the 
     spouse or parent, respectively, consented or acquiesced to 
     such battery or cruelty); or
       (B) any other person with whom the alien has a relationship 
     covered by the domestic violence laws of the State in which 
     the alien resides or in which an incident of the battery or 
     cruelty took place; or
       (2)(A) an alien whose child has been battered or subjected 
     to extreme cruelty in the United States by a spouse or parent 
     of the alien (in a case in which the alien did not actively 
     participate in the battery or cruelty); or
       (B) a member of the spouse's or parent's family residing in 
     the same household as the alien (in a case in which the 
     spouse or parent, respectively, consented or acquiesced to 
     such battery or cruelty and the alien did not actively 
     participate in the battery or cruelty).
       (c) Subsection (b) shall apply, notwithstanding the 
     enactment of Federal law after the date of enactment of this 
     Act, unless such law explicitly excludes such application by 
     reference to this section.
       (d) As used in this section:
       (1) The term ``battered or subjected to extreme cruelty'' 
     has the meaning given the term ``was battered by or was the 
     subject of extreme cruelty'' under regulations issued 
     pursuant to section 204 of the Immigration and Nationality 
     Act (8 U.S.C. 1154) (as amended by subtitle G of the Violence 
     Against Women Act of 1994 (Pub. L. 103-322; 108 Stat. 1953)).
       (2) The terms ``legal assistance'' and ``recipient'' have 
     the meanings given the terms in section 1002 of the Legal 
     Services Corporation Act (42 U.S.C. 2996a).
       (3) The term ``related legal assistance'' means legal 
     assistance directly related to the prevention of, or 
     obtaining of relief from, the battery or cruelty described in 
     subsection (a).
                                 ______
                                 

                 WYDEN (AND KENNEDY) AMENDMENT NO. 5260

  (Ordered to lie on the table.)
  Mr. WYDEN (for himself, Mr. Kennedy, and Mr. Kyl) submitted an 
amendment intended to be proposed by them to the bill, H.R. 3756, 
supra; as follows:

       At the appropriate place, insert the following new title:

             TITLE   --PROTECTION OF PATIENT COMMUNICATIONS

     SEC.   01. SHORT TITLE; FINDINGS.

       (a) Short Title.--This title may be cited as the ``Patient 
     Communications Protection Act of 1996''.
       (b) Findings.--Congress finds the following:
       (1) Patients need access to all relevant information to 
     make appropriate decisions, with their physicians, about 
     their health care.
       (2) Restrictions on the ability of physicians to provide 
     full disclosure of all relevant information to patients 
     making health care decisions violate the principles of 
     informed consent and practitioner ethical standards.
       (3) The offering and operation of health plans affect 
     commerce among the States. Health care providers located in 
     one State serve patients who reside in other States as well 
     as that State. In order to provide for uniform treatment of 
     health care providers and patients among the States, it is 
     necessary to cover health plans operating in one State as 
     well as those operating among the several States.

     SEC.   02. PROHIBITION OF INTERFERENCE WITH CERTAIN MEDICAL 
                   COMMUNICATIONS.

       (a) In General.--
       (1) Prohibition of certain provisions.--Subject to 
     paragraph (2), an entity offering a health plan (as defined 
     in subsection (d)(2)) may not include any provision that 
     prohibits or restricts any medical communication (as defined 
     in subsection (b)) as part of--
       (A) a written contract or agreement with a health care 
     provider,
       (B) a written statement to such a provider, or
       (C) an oral communication to such a provider.
       ``(2) Construction.--Nothing in this section shall be 
     construed as preventing an entity from exercising mutually 
     agreed upon terms and conditions not inconsistent with 
     paragraph (1), including terms or conditions requiring a 
     physician to participate in, and cooperate with, all 
     programs, policies, and procedures developed or operated by 
     the person, corporation, partnership, association, or other 
     organization to ensure, review, or improve the quality of 
     health care.
       (3) Nullification.--Any provision described in paragraph 
     (1) is null and void.
       (b) Medical Communication Defined.--In this section, the 
     term ``medical communication'' means a communication made by 
     a health care provider with a patient of the provider (or the 
     guardian or legal representative of such patient) with 
     respect to the patient's physical or mental condition or 
     treatment options.
       (e) Enforcement Through Imposition of Civil Money Penalty--
       (1) In General.--Any entity that violates paragraph (1) of 
     subsection (a) shall be subject to a civil money penalty of 
     up to $25,000 for each violation. No such penalty shall be 
     imposed solely on the basis of an oral communication unless 
     the communication is part of a pattern or practice of such 
     communications and the violation is demonstrated by a 
     preponderance of the evidence.
       (2) Procedures.--The provisions of subsections (c) through 
     (l) of section 112SA of the Social Security Act (42 U.S.C. 
     1320a-7a) shall apply to civil money penalties under 
     paragraph (1) in the same manner as they apply to a penalty 
     or proceeding under section 1128A(a) of such Act.
       (d) Definitions.--For purposes of this section:
       (1) Health care provider.--The term ``health care 
     provider'' means anyone licensed or certified under State law 
     to provide health care services.

[[Page S10431]]

       (2) Health plan.--The term ``health plan'' means any public 
     or private health plan or arrangement (including an employee 
     welfare benefit plan) which provides, or pays the cost of, 
     health benefits and includes an organization of health care 
     providers that furnishes health services under a contract or 
     agreement with such a plan.
       (3) Coverage of third party administrators.--In the case of 
     a health plan that is an employee welfare benefit plan (as 
     defined in section 3(1) of the Employee Retirement Income 
     Security Act of 1974), any third party administrator or other 
     person with responsibility for contracts with health care 
     providers under the plan shall be considered, for purposes of 
     this section, to be an entity offering such health plan.
       (e) Non-Preemption of State Law.--A State may establish or 
     enforce requirements with respect to the subject matter of 
     this section, but only if such requirements are consistent 
     with this title and are more protective of medical 
     communications than the requirements established under this 
     section.
       (g) Effective Date.--Subsection (a) shall take effect 180 
     days after the date of the enactment of this Act and shall 
     apply to medical communications made on or after such date, 
     and shall terminate on September 30, 2001.
       (h) Offset.--Notwithstanding any other provision of this 
     Act, no more than $1,530,465,000 shall be available for 
     building operations in fiscal year 1997.
                                 ______
                                 

                        GRAMS AMENDMENT NO. 5261

  Mr. SHELBY (for Mr. Grams) proposed an amendment to the bill, H.R. 
3756, supra; as follows:

       At appropriate place, insert the following section:

     ``SEC.   . IMPROVEMENT OF THE IRS 1-800 HELP LINE SERVICE.

       ``(a) Funds made available by this or any other Act to the 
     Internal Revenue Service shall be available for improved 
     facilities and increased manpower to provide sufficient and 
     effective 1-800 help line for taxpayers.
       (b) The Commissioner shall make the improvement of the IRS 
     1-800 help line service a priority and allocate resources 
     necessary to ensure the increase in phone lines and staff to 
     improve the IRS 1-800 help line service.
                                 ______
                                 

                      FAIRCLOTH AMENDMENT NO. 5262

  Mr. SHELBY (for Mr. Faircloth) proposed an amendment to the bill, 
H.R. 3756, supra; as follows:

       On page 26, after line 9, insert the following:
       Sec.  . No funds available by this Act, or any other Act, 
     to the Internal Revenue Service may be used to pay for the 
     design and printing of more than two ink colors on the covers 
     of income tax packages, and such ink colors must be the same 
     colors as used to print the balance of the material in each 
     package.
                                 ______
                                 

                        LEVIN AMENDMENT NO. 5263

  Mr. SHELBY (for Mr. Levin) proposed an amendment to the bill, H.R. 
3756, supra; as follows:

       At the appropriate place, insert the following:
       The Senate finds:
       That on June 28, 1995, the United States and Japan 
     finalized the text of the U.S.-Japan Framework Agreement on 
     Autos and Auto Parts in Geneva.
       That the 30 page text spells out a wide-ranging set of 
     commitments by the Government of Japan to meet the Framework 
     objective of ``achieving significantly expanded sales 
     opportunities to result in a significant expansion of 
     purchases of foreign parts by Japanese firms in Japan and 
     through their transplants, as well as removing problems which 
     affect market access, and encouraging imports of foreign 
     autos and auto parts in Japan.''
       That the commitments to action by the Government of Japan 
     and statements by the Japanese private sector address the 
     major barriers to access that have frustrated U.S. producers 
     of competitive autos and auto parts in their efforts to sell 
     in Japan and to the Japanese transplants, and
       That the Framework Agreement represents an unprecedented, 
     enforceable set of commitments to open the Japanese market to 
     foreign competitive autos and auto parts and to increase the 
     opportunities for competitive parts suppliers to sell to the 
     Japanese transplant manufacturers.
       Therefore it is the Sense of the United States Senate to 
     fully support the goals set out in the Framework Agreement 
     and support the U.S. negotiators in their first annual 
     consultations with Japan on September 18 and 19 in San 
     Francisco in their efforts to obtain full compliance with the 
     letter and spirit of the Framework Agreement.
                                 ______
                                 

                      THOMPSON AMENDMENT NO. 5264

  Mr. SHELBY (for Mr. Thompson) proposed an amendment to the bill, H.R. 
3756, supra; as follows:

       At the appropriate place in the bill, insert the following:
       Sec.   . (a) The Administrator of the General Services 
     Administration is authorized to conduct a pilot program 
     involving up to 10 States to provide FTS 2000 service to a 
     State government, if:
       (1) the appropriate authority of such State government 
     makes application to the Administrator to receive FTS 2000 
     service and, as part of the application, agrees to pay all 
     costs associated with access; and
       (2) the Administrator finds that it would be advantageous 
     for the federal government to provide FTS 2000 service to 
     such State government.
       (b) Nothing in this section shall be construed to authorize 
     the administrator of the General Services Administration to 
     implement cooperative purchasing under 40 U.S.C. 481(b)(2).
       (c) The authority provided in this section shall expire on 
     September 30, 1998.
                                 ______
                                 

                 DORGAN (AND OTHERS) AMENDMENT NO. 5265

  (Ordered to lie on the table.)
  Mr. DORGAN (for himself, Mr. Conrad, and Mr. Daschle) submitted an 
amendment intended to be proposed by them to the bill, H.R. 3756, 
supra; as follows:

       At the appropriate place in the bill, add the following:
       Notwithstanding any other provision of law, the Secretary 
     of the Interior, through the Bureau of Indian Affairs, may 
     directly transfer to Indian tribes in North and South Dakota 
     portable housing units at the Grand Forks Air Force base in 
     North Dakota which have been declared excess by the 
     Department of Defense and requested for transfer by the 
     Department of the Interior.
                                 ______
                                 

                 McCAIN (AND HELMS) AMENDMENT NO. 5266

  Mr. McCAIN (for himself, Mr. Helms, Mr. Coverdell, and Graham) 
proposed an amendment to the bill, H.R. 3756, supra; as follows:

       On page 22, line 14, strike ``$4,085,355,000'' and insert 
     in lieu thereof ``$4,052,586,000'';
       On page 42, line 26, strike ``$103,000,000'', and insert in 
     lieu thereof ``$135,769,000''.
                                 ______
                                 

                 McCAIN (AND OTHERS) AMENDMENT NO. 5267

  (Ordered to lie on the table.)
  Mr. McCAIN (for himself, Mr. Coats, Mr. Stevens, Mr. Lott, Mr. 
Abraham, Mr. Ashcroft, Mr. Pressler, and Mrs. Hutchison) submitted an 
amendment intended to be proposed by them to the bill, H.R. 3756, 
supra; as follows:

       At the appropriate place, insert the following:
       Sec.   . (a) Chapter 13 of title 31, United States Code, is 
     amended by inserting after section 1310 the following new 
     section:

     ``Sec. 1311. Continuing appropriations

       ``(a)(1) If any regular appropriation bill for a fiscal 
     year does not become law prior to the beginning of such 
     fiscal year or a joint resolution making continuing 
     appropriations is not in effect, there is appropriated, out 
     of any moneys in the Treasury not otherwise appropriated, and 
     out of applicable corporate or other revenues, receipts, and 
     funds, such sums as may be necessary to continue any project 
     or activity for which funds were provided in the preceding 
     fiscal year--
       ``(A) in the corresponding regular appropriation Act for 
     such preceding fiscal year; or
       ``(B) if the corresponding regular appropriation bill for 
     such preceding fiscal year did not become law, then in a 
     joint resolution making continuing appropriations for such 
     preceding fiscal year.
       ``(2) Appropriations and funds made available, and 
     authority granted, for a project or activity for any fiscal 
     year pursuant to this section shall be at a rate of 
     operations not in excess of the lower of--
       ``(A) the rate of operations provided for in the regular 
     appropriation Act providing for such project or activity for 
     the preceding fiscal year,
       ``(B) in the absence of such an Act, the rate of operations 
     provided for such project or activity pursuant to a joint 
     resolution making continuing appropriations for such 
     preceding fiscal year,
       ``(C) the rate of operations provided for in the House or 
     Senate passed appropriation bill for the fiscal year in 
     question, except that the lower of these two versions shall 
     be ignored for any project or activity for which there is a 
     budget request if no funding is provided for that project or 
     activity in either version,
       ``(D) the rate provided in the budget submission of the 
     President under section 1105(a) of title 31, United States 
     Code, for the fiscal year in question, or
       ``(E) the annualized rate of operations provided for in the 
     most recently enacted joint resolution making continuing 
     appropriations for part of that fiscal year or any funding 
     levels established under the provisions of this Act.
       ``(3) Appropriations and funds made available, and 
     authority granted, for any fiscal year pursuant to this 
     section for a project or activity shall be available for the 
     period beginning with the first day of a lapse in 
     appropriations and ending with the earlier of--
       ``(A) the date on which the applicable regular 
     appropriation bill for such fiscal year becomes law (whether 
     or not such law provides for such project or activity) or a 
     continuing resolution making appropriations becomes law, as 
     the case may be, or

[[Page S10432]]

       ``(B) the last day of such fiscal year.
       ``(b) An appropriation or funds made available, or 
     authority granted, for a project or activity for any fiscal 
     year pursuant to this section shall be subject to the terms 
     and conditions imposed with respect to the appropriation made 
     or funds made available for the preceding fiscal year, or 
     authority granted for such project or activity under current 
     law.
       ``(c) Appropriations and funds made available, and 
     authority granted, for any project or activity for any fiscal 
     year pursuant to this section shall cover all obligations or 
     expenditures incurred for such project or activity during the 
     portion of such fiscal year for which this section applies to 
     such project or activity.
       ``(d) Expenditures made for a project or activity for any 
     fiscal year pursuant to this section shall be charged to the 
     applicable appropriation, fund, or authorization whenever a 
     regular appropriation bill or a joint resolution making 
     continuing appropriations until the end of a fiscal year 
     providing for such project or activity for such period 
     becomes law.
       ``(e) This section shall not apply to a project or activity 
     during a fiscal year if any other provision of law (other 
     than an authorization of appropriations)--
       ``(1) makes an appropriation, makes funds available, or 
     grants authority for such project or activity to continue for 
     such period, or
       ``(2) specifically provides that no appropriation shall be 
     made, no funds shall be made available, or no authority shall 
     be granted for such project or activity to continue for such 
     period.
       ``(f) For purposes of this section, the term `regular 
     appropriation bill' means any annual appropriation bill 
     making appropriations, otherwise making funds available, or 
     granting authority, for any of the following categories of 
     projects and activities:
       ``(1) Agriculture, rural development, and related agencies 
     programs.
       ``(2) The Departments of Commerce, Justice, and State, the 
     judiciary, and related agencies.
       ``(3) The Department of Defense.
       ``(4) The government of the District of Columbia and other 
     activities chargeable in whole or in part against the 
     revenues of the District.
       ``(5) The Departments of Labor, Health and Human Services, 
     and Education, and related agencies.
       ``(6) The Department of Housing and Urban Development, and 
     sundry independent agencies, boards, commissions, 
     corporations, and offices.
       ``(7) Energy and water development.
       ``(8) Foreign assistance and related programs.
       ``(9) The Department of the Interior and related agencies.
       ``(10) Military construction.
       ``(11) The Department of Transportation and related 
     agencies.
       ``(12) The Treasury Department, the U.S. Postal Service, 
     the Executive Office of the President, and certain 
     independent agencies.
       ``(13) The legislative branch.''.
       (b) Clerical Amendment.--The analysis of chapter 13 of 
     title 31, United States Code, is amended by inserting after 
     the item relating to section 1310 the following new item:

``1311. Continuing appropriations.''.

       (c) Protection of Other Obligations.--Nothing in the 
     amendments made by this section shall be construed to effect 
     Government obligations mandated by other law, including 
     obligations with respect to Social Security, Medicare, and 
     Medicaid.

     SEC. 3. EFFECTIVE DATE AND SUNSET.

       (a) Effective Date.--The amendments made by this Act shall 
     apply with respect to fiscal years beginning with fiscal year 
     1997.
       (b) Sunset.--the amendments made by this Act shall sunset 
     and have no force or effect 6 years after the date of 
     enactment of this Act.
                                 ______
                                 

                       DASCHLE AMENDMENT NO. 5268

  (Ordered to lie on the table.)
  Mr. DASCHLE submitted an amendment intended to be proposed by him to 
the bill, H.R. 3756, supra; as follows:

       At the appropriate place, insert the following:


establishing a national repository for arson and explosives information

     SEC.  . NATIONAL REPOSITORY FOR INFORMATION ON EXPLOSIVES 
                   INCIDENTS AND ARSON.

       (a) Section 846 of Title 18, United States Code, is amended 
     by--
       (1) designating the existing section as subsection (a); and
       (2) by adding the following new subsection (b) to read as 
     follows:
       ``(b) The Secretary is authorized to establish a national 
     repository of information on incidents involving arson and 
     the suspected criminal misuse of explosives. All Federal 
     agencies having information concerning such incidents shall 
     report the information to the Secretary pursuant to such 
     regulations as deemed necessary to carry out the provisions 
     of this subsection. The repository shall also contain 
     information on incidents voluntarily reported to the 
     Secretary by State and local authorities.''
       (b) There is authorized to be appropriated such sums as are 
     necessary to establish the repository provided for in 
     subsection (a).
                                 ______
                                 

                      KASSEBAUM AMENDMENT NO. 5269

  (Ordered to lie on the table.)
  Mrs. KASSEBAUM submitted an amendment intended to be proposed by her 
to the bill, H.R. 3756, supra; as follows:

       Insert before the first section the following:
                     DIVISION A--GENERAL PROVISIONS
       At the end of the bill, add the following:

     SEC. ____. REFERENCES.

       References in this division to this Act shall be deemed to 
     be references to this division.
              DIVISION B--WORKFORCE AND CAREER DEVELOPMENT

     SEC. ____001. SHORT TITLE.

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

     SEC. ____002. TABLE OF CONTENTS.

       The table of contents is as follows:
Sec. ____001. Short title.
Sec. ____002. Table of contents.
Sec. ____003. Purpose and policy.
Sec. ____004. Definitions.
Sec. ____005. 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.
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.

[[Page S10433]]

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. ____003. PURPOSE AND POLICY.

       (a) Purpose.--The purpose of this division 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. ____004. DEFINITIONS.

       Except as otherwise specified in this division, as used in 
     this division:
       (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, 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

[[Page S10434]]

     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.
       (35) Participant.--The term ``participant'', used with 
     respect to an activity carried out under this division, 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

[[Page S10435]]

       (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. ____005. GENERAL PROVISION.

       None of the funds made available under this division 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 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.--

[[Page S10436]]

       (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;

[[Page S10437]]

       (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;
       (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

[[Page S10438]]

     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;
       (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

[[Page S10439]]

     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 division, 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.--
       (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

[[Page S10440]]

       (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 
     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-

[[Page S10441]]

     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 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.--

[[Page S10442]]

       (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 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.--

[[Page S10443]]

       (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 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.

[[Page S10444]]

     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 
     ____004(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)--
       (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).

[[Page S10445]]

       (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;
       (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).

[[Page S10446]]

       (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 
     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

[[Page S10447]]

     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 division 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 division 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.
       (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.

[[Page S10448]]

       (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 division are terminated.
       (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).

[[Page S10449]]

     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 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

[[Page S10450]]

     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.

[[Page S10451]]

       (b) Definitions.--As used in this section:
       (1) Alaska native.--The term ``Alaska Native'' means a 
     Native as such term is defined in section 3(b) of the Alaska 
     Native Claims Settlement Act (43 U.S.C. 1602(b)).
       (2) Indian, indian tribe, and tribal organization.--The 
     terms ``Indian'', ``Indian tribe'', and ``tribal 
     organization'' have the 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.

[[Page S10452]]

       (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.
       (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.

[[Page S10453]]

       (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
       (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

[[Page S10454]]

     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 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

[[Page S10455]]

     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 ____004 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--
       (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 ____004 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 
     ____004 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

[[Page S10456]]

     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 ____004 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
       ``(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

[[Page S10457]]

     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 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);

[[Page S10458]]

       (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 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

[[Page S10459]]

     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).

     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

[[Page S10460]]

     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 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.

[[Page S10461]]

     SEC. ____248. ADMINISTRATION.

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

     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--
       ``(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.

[[Page S10462]]

       ``(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 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

[[Page S10463]]

     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 ____004 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.
       ``(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.

[[Page S10464]]

     ``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--
       (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.

[[Page S10465]]

       (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

[[Page S10466]]

     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 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.--

[[Page S10467]]

       ``(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.--
       ``(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)--

[[Page S10468]]

       ``(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.
       ``(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.--

[[Page S10469]]

       ``(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.''.
       (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

[[Page S10470]]

     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 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.

[[Page S10471]]

     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.
       (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 
     ____004 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.

[[Page S10472]]

       (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, 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 ____004(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 
     ____004 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

[[Page S10473]]

     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 ____004 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 ____004 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 ____004 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 ____004 of the Workforce and Career Development 
     Act of 1996) on matters relating to such Act''.
       (2) Food stamp act of 1977.--
       (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 ____004 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

[[Page S10474]]

       (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 ____004 of the Workforce and Career 
     Development Act of 1996.''.
       (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'';

[[Page S10475]]

       (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''.
       (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 ____004 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

[[Page S10476]]

       ``(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 ____004 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.
                                 ______
                                 

                       DASCHLE AMENDMENT NO. 5270

  (Ordered to lie on the table.)
  Mr. DASCHLE submitted an amendment intended to be proposed by him to 
the bill, H.R. 3756, supra; as follows:

       At the appropriate place insert the following:


establishing a national repository for arson and explosives information

     SEC.   . NATIONAL REPOSITORY FOR INFORMATION ON EXPLOSIVE 
                   INCIDENTS AND ARSON.

       (a) Section 846 of Title 18, United States Code, is amended 
     by--
       (1) designating the existing section as subsection (a); and
       (2) by adding the following new subsection (b) to read as 
     follows:
       ``(b) The Secretary is authorized to establish a national 
     repository of information on incidents involving arson and 
     the suspected criminal misuse of explosives. All Federal 
     agencies having information concerning such incidents shall 
     report the information to the Secretary pursuant to such 
     regulations as deemed necessary to carry out the provisions 
     of this subsection. The repository shall also contain 
     information on incidents voluntarily reported to the 
     Secretary by State and local authorities.''
       (b) There is authorized to be appropriated such sums as may 
     be necessary to carry out the provisions of this subsection.
                                 ______
                                 

               BINGAMAN (AND JEFFORDS) AMENDMENT NO. 5271

  Mr. SHELBY (for Mr. Bingaman, for himself and Mr. Jeffords) proposed 
an amendment to the bill, H.R. 3756, supra; as follows:

       Insert at the appropriate place in the bill:
       (a) Reduction in Facilities Energy Costs.--
       (1) In general.--The head of each agency for which funds 
     are made available under this Act shall--
       (A) take all actions necessary to achieve during fiscal 
     year 1998 a 5-percent reduction, from fiscal year 1996 
     levels, in the energy costs of the facilities used by the 
     agency; or
       (B) enter into a sufficient number of energy savings 
     performance contracts with private sector energy service 
     companies under title VIII of the National Energy 
     Conservation Policy Act (42 U.S.C. 8287 et seq.) to achieve 
     during fiscal year 1998 at least a 5-percent reduction, from 
     fiscal year 1996 levels, in the energy use of the facilities 
     used by the agency.
       (2) Goal.--The activities described in paragraph (1) should 
     be a key component of agency programs that will by the year 
     2000 result in a 20-percent reduction, from fiscal year 1985 
     levels, in the energy use of the facilities used by the 
     agency, as required by section 543 of the National Energy 
     Conservation Policy Act (42 U.S.C. 8253).
                                 ______
                                 

                       DASCHLE AMENDMENT NO. 5272

  Mr. SHELBY (for Mr. Daschle) proposed an amendment to the bill, H.R. 
3756, supra; as follows:

       At the appropriate place, insert the following:


establishing a national repository for arson and explosives information

     SEC.   . NATIONAL REPOSITORY FOR INFORMATION ON EXPLOSIVES 
                   INCIDENTS AND ARSON.

       (a) Section 846 of title 18, United States Code, is amended 
     by--
       (1) designated the existing section as subsection (a); and
       (2) by adding the following new subsection (b) to read as 
     follows:
       ``(b) The Secretary is authorized to establish a national 
     repository of information on incidents involving arson and 
     the suspected criminal misuse of explosives. All Federal 
     agencies having information concerning such incidents shall 
     report the information to the Secretary pursuant to such 
     regulations as deemed necessary to carry out the provisions 
     of this subsection. The repository shall also certain 
     information on incidents voluntarily reported to the 
     Secretary by State and local authorities.''
       (b) There is authorized to be appropriated such sums as may 
     be necessary to carry out the provisions of this subsection.
                                 ______
                                 

                       D'AMATO AMENDMENT NO. 5273

  Mr. SHELBY (for Mr. D'Amato) proposed an amendment to the bill, H.R. 
3756, supra; as follows:

       On page ____, strike lines ____ and ____, and insert the 
     following:
       ``(l) Mint Facility for Gold and Platinum Coins.--
     Notwithstanding any other provision of law,''.
       At the end of title V of the bill, insert the following new 
     sections:

     SEC. 5____. COMMEMORATIVE COIN PROGRAM REFORM.

       (a) Commemorative Coin Program Restrictions.--Section 5112 
     of title 31, United States Code, as amended by sections 524 
     and 530 of this Act, is amended by adding at the end the 
     following new subsection:
       ``(m) Commemorative Coin Program Restrictions.--
       ``(1) Maximum number.--Beginning January 1, 1999, the 
     Secretary may mint and issue commemorative coins under this 
     section during any calendar year with respect to not more 
     than 2 commemorative coin programs.
       ``(2) Mintage levels.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     in carrying out any commemorative coin program, the Secretary 
     shall mint--
       ``(i) not more than 750,000 clad half-dollar coins;
       ``(ii) not more than 500,000 silver one-dollar coins; and
       ``(iii) not more than 100,000 gold five-dollar or ten-
     dollar coins.
       ``(B) Exception.--If the Secretary determines, based on 
     independent, market-based research conducted by a designated 
     recipient organization of a commemorative coin program, that 
     the mintage levels described in subparagraph (A) are not 
     adequate to meet public demand for that commemorative coin, 
     the Secretary may waive one or more of the requirements of 
     subparagraph (A) with respect to that commemorative coin 
     program.
       ``(C) Designated recipient organization defined.--For 
     purposes of this paragraph, the term `designated recipient 
     organization' means any organization designated, under any 
     provision of law, as the recipient of any surcharge imposed 
     on the sale of any numismatic item.''.
       (b) Recovery of Mint Expenses Required Before Payment of 
     Surcharges to any Recipient Organization.--
       (1) Clarification of law relating to deposit of surcharges 
     in the numismatic public enterprise fund.--Section 5134(c)(2) 
     of title 31, United States Code, is amended by inserting ``, 
     including amounts attributable to any surcharge imposed with 
     respect to the sale of any numismatic item'' before the 
     period.
       (2) Conditions on payment of surcharges to recipient 
     organizations.--Section 5134 of title 31, United States Code, 
     is amended by adding at the end the following new subsection:
       ``(f) Conditions on Payment of Surcharges to Recipient 
     Organizations.--
       ``(1) Payment of surcharges.--Notwithstanding any other 
     provision of law, no amount derived from the proceeds of any 
     surcharge imposed on the sale of any numismatic item shall be 
     paid from the fund to any designated recipient organization 
     unless--
       ``(A) all numismatic operation and program costs allocable 
     to the program under which such numismatic item is produced 
     and sold have been recovered; and
       ``(B) the designated recipient organization submits an 
     audited financial statement that demonstrates to the 
     satisfaction of the Secretary of the Treasury that, with 
     respect to all projects or purposes for which the proceeds of 
     such surcharge may be used, the organization has raised funds 
     from private sources for such projects and purposes in an 
     amount that is equal to or greater than the maximum amount 
     the organization may receive from the proceeds of such 
     surcharge.
       ``(2) Annual audits.--

[[Page S10477]]

       ``(A) Annual audits of recipients required.--Each 
     designated recipient organization that receives any payment 
     from the fund of any amount derived from the proceeds of any 
     surcharge imposed on the sale of any numismatic item shall 
     provide, as a condition for receiving any such amount, for an 
     annual audit, in accordance with generally accepted 
     government auditing standards by an independent public 
     accountant selected by the organization, of all such payments 
     to the organization beginning in the first fiscal year of the 
     organization in which any such amount is received and 
     continuing until all amounts received by such organization 
     from the fund with respect to such surcharges are fully 
     expended or placed in trust.
       ``(B) Minimum requirements for annual audits.--At a 
     minimum, each audit of a designated recipient organization 
     pursuant to subparagraph (A) shall report--
       ``(i) the amount of payments received by the designated 
     recipient organization from the fund during the fiscal year 
     of the organization for which the audit is conducted that are 
     derived from the proceeds of any surcharge imposed on the 
     sale of any numismatic item;
       ``(ii) the amount expended by the designated recipient 
     organization from the proceeds of such surcharges during the 
     fiscal year of the organization for which the audit is 
     conducted; and
       ``(iii) whether all expenditures by the designated 
     recipient organization during the fiscal year of the 
     organization for which the audit is conducted from the 
     proceeds of such surcharges were for authorized purposes.
       ``(C) Responsibility of organization to account for 
     expenditures of surcharges.--Each designated recipient 
     organization that receives any payment from the fund of any 
     amount derived from the proceeds of any surcharge imposed on 
     the sale of any numismatic item shall take appropriate steps, 
     as a condition for receiving any such payment, to ensure that 
     the receipt of the payment and the expenditure of the 
     proceeds of such surcharge by the organization in each fiscal 
     year of the organization can be accounted for separately from 
     all other revenues and expenditures of the organization.
       ``(D) Submission of audit report.--Not later than 90 days 
     after the end of any fiscal year of a designated recipient 
     organization for which an audit is required under 
     subparagraph (A), the organization shall--
       ``(i) submit a copy of the report to the Secretary of the 
     Treasury; and
       ``(ii) make a copy of the report available to the public.
       ``(E) Use of surcharges for audits.--Any designated 
     recipient organization that receives any payment from the 
     fund of any amount derived from the proceeds of any surcharge 
     imposed on the sale of any numismatic item may use the amount 
     received to pay the cost of an audit required under 
     subparagraph (A).
       ``(F) Waiver of paragraph.--The Secretary of the Treasury 
     may waive the application of any subparagraph of this 
     paragraph to any designated recipient organization for any 
     fiscal year after taking into account the amount of 
     surcharges that such organization received or expended during 
     such year.
       ``(G) Nonapplicability to federal entities.--This paragraph 
     shall not apply to any Federal agency or department or any 
     independent establishment in the executive branch that 
     receives any payment from the fund of any amount derived from 
     the proceeds of any surcharge imposed on the sale of any 
     numismatic item.
       ``(H) Availability of books and records.--An organization 
     that receives any payment from the fund of any amount derived 
     from the proceeds of any surcharge imposed on the sale of any 
     numismatic item shall provide, as a condition for receiving 
     any such payment, to the Inspector General of the Department 
     of the Treasury or the Comptroller General of the United 
     States, upon the request of such Inspector General or the 
     Comptroller General, all books, records, and work papers 
     belonging to or used by the organization, or by any 
     independent public accountant who audited the organization in 
     accordance with subparagraph (A), which may relate to the 
     receipt or expenditure of any such amount by the 
     organization.
       ``(3) Use of agents or attorneys to influence commemorative 
     coin legislation.--No portion of any payment from the fund to 
     any designated recipient organization of any amount derived 
     from the proceeds of any surcharge imposed on the sale of any 
     numismatic item may be used, directly or indirectly, by the 
     organization to compensate any agent or attorney for services 
     rendered to support or influence in any way legislative 
     action of the Congress relating to such numismatic item.
       ``(4) Designated recipient organization defined.--For 
     purposes of this subsection, the term `designated recipient 
     organization' means any organization designated, under any 
     provision of law, as the recipient of any surcharge imposed 
     on the sale of any numismatic item.''.
       (3) Scope of application.--The amendments made by this 
     section shall apply with respect to the proceeds of any 
     surcharge imposed on the sale of any numismatic item that are 
     deposited in the Numismatic Public Enterprise Fund after the 
     date of the enactment of this Act.
       (4) Repeal of existing recipient report requirement.--
     Section 302 of Public Law 103-186 (31 U.S.C. 5112 note) is 
     repealed.
       (c) Quarterly Financial Reports.--Section 5134 of title 31, 
     United States Code, is amended by adding at the end the 
     following new subsection:
       ``(g) Quarterly Financial Reports.--
       ``(1) In general.--Not later than the 30th day of each 
     month following each calendar quarter through and including 
     the final period of sales with respect to any commemorative 
     coin program authorized on or after the date of enactment of 
     the Treasury, Postal Service, and General Government 
     Appropriations Act, 1997, the Mint shall submit to the 
     Congress a quarterly financial report in accordance with this 
     subsection.
       ``(2) Requirements.--Each report submitted under paragraph 
     (1) shall include, with respect to the calendar quarter at 
     issue--
       ``(A) a detailed financial statement, prepared in 
     accordance with generally accepted accounting principles, 
     that includes financial information specific to that quarter, 
     as well as cumulative financial information relating to the 
     entire program;
       ``(B) a detailed accounting of--
       ``(i) all costs relating to marketing efforts;
       ``(ii) all funds projected for marketing use;
       ``(iii) all costs for employee travel relating to the 
     promotion of commemorative coin programs;
       ``(iv) all numismatic items minted, sold, not sold, and 
     rejected during the production process; and
       ``(v) the costs of melting down all rejected and unsold 
     products;
       ``(C) adequate market-based research for all commemorative 
     coin programs; and
       ``(D) a description of the efforts of the Mint in keeping 
     the sale price of numismatic items as low as practicable.''.
       (d) Citizens Commemorative Coin Advisory Committee.--
       (1) Fixed terms for members.--Section 5135(a)(4) of title 
     31, United States Code, is amended to read as follows:
       ``(4) Terms.--Each member appointed under clause (i) or 
     (iii) of paragraph (3)(A) shall be appointed for a term of 4 
     years.''.
       (2) Chairperson.--Section 5135(a) of title 31, United 
     States Code, is amended by adding at the end the following 
     new paragraph:
       ``(7) Chairperson.--
       ``(A) In general.--Subject to subparagraph (B), the 
     Chairperson of the Advisory Committee shall be elected by the 
     members of the Advisory Committee from among such members.
       ``(B) Exception.--The member appointed pursuant to 
     paragraph (3)(A)(ii) (or the alternate to that member) may 
     not serve as the Chairperson of the Advisory Committee, 
     beginning on June 1, 1999.''.
       (e) Effective Date.--This section and the amendments made 
     by this section shall take effect on the date of enactment of 
     this Act.

     SEC. 5____. MINT MANAGERIAL STAFFING REFORM.

       Section 5131 of title 31, United States Code, is amended--
       (1) by striking subsection (c); and
       (2) by redesignating subsection (d) as subsection (c).
                                 ______
                                 

                       McCAIN AMENDMENT NO. 5274

  Mr. SHELBY (for McCain) proposed an amendment to the bill, H.R. 3756, 
supra; as follows:

       At the appropriate place, insert the following new section:
       Sec.  . Section 5(c)(1) of Public Law 102-259 (20 U.S.C. 
     5603(c)(1)) is amended--
       (1) in subparagraph (A)(iii), by striking ``and'' after the 
     semicolon;
       (2) in subparagraph (B), by striking the period and 
     inserting ``; and''; and
       (3) by adding after subparagraph (B) the following:
       ``(C) a Trustee may serve after the expiration of the 
     Trustee's term until a successor has been chosen.''.
                                 ______
                                 

                       DORGAN AMENDMENT NO. 5275

  Mr. SHELBY (for Mr. Dorgan) proposed an amendment to the bill, H.R. 
3756, supra; as follows:

       At the appropriate place in the bill, add the following:
       Notwithstanding any other provision of law, the Secretary 
     of the Interior, through the Bureau of Indian Affairs, may 
     directly transfer to Indian tribes in North and South Dakota 
     portable housing units at the Grand Forks Air Force base in 
     North Dakota which have been declared excess by the 
     Department of Defense and requested for transfer by the 
     Department of the Interior.
                                 ______
                                 

                        BYRD AMENDMENT NO. 5276

  Mr. SHELBY (for Mr. Byrd) proposed an amendment to the bill, H.R. 
3756, supra; as follows:

       On page 49, line 18, insert before the colon ``: Provided, 
     That of such amount provided for non-prospectus construction 
     projects $250,000 may be available until expended for the 
     acquisition, lease, construction, and equipping of flexiplace 
     work telecommuting centers in the State of West Virginia''.
                                 ______
                                 

                      HATFIELD AMENDMENT NO. 5277

  Mr. SHELBY (for Mr. Hatfield) proposed an amendment to the bill, H.R. 
3756, supra; as follows:

       On page 55, line 11 after ``Missouri'' insert: ``: Provided 
     further, That $1,450,000 may be available for the renovation 
     of the Pioneer

[[Page S10478]]

     Courthouse located at 520 SW Morrison in Portland, Oregon''.
                                 ______
                                 

                        GRAMM AMENDMENT NO. 5278

  Mr. SHELBY (for Mr. Gramm) proposed an amendment to the bill, H.R. 
3756, supra; as follows:

       At the appropriate place, insert the following:

     SEC.   . SENSE OF THE SENATE IN SUPPORT OF NEW BORDER STATION 
                   CONSTRUCTION IN LAREDO, TEXAS.

       (a) The Senate finds that:
       (1) In 1995, over one-third (35%) of all U.S. exports to 
     Mexico were processed through the Port of Laredo;
       (2) Nearly two-thirds of all U.S. exports to Mexico that 
     went through a south Texas port of entry went through the 
     Port of Laredo in 1995;
       (3) The value of imports processed through the Port of 
     Laredo in 1995 exceeded $15 billion, and the value of all 
     exports was $14.7 billion for that year;
       (4) The number of loaded, cross-border shipments, both 
     northbound and southbound, through the Port of Laredo is 
     projected to double from 1995 to the year 2000, from 851,745 
     shipments to 1,703,490;
       (5) The City of Laredo received on October 3, 1994 a 
     Presidential Permit from the U.S. State Department to 
     construct a third bridge in the city, and in February 1996 
     the U.S. Coast Guard issued a permit for the bridge's 
     construction;
       (6) Financing of the new bridge has been secured from both 
     sponsors, the cities of Laredo and Nuevo Laredo, and in 
     February 1997 the City of Nuevo Laredo is scheduled to begin 
     construction of an access road connecting the bridge with the 
     loop around Nuevo Laredo;
       (7) U.S. Customs revenue generated at the Port of Laredo 
     totaled $216 million in 1995, an increase of $13 million from 
     the previous year, while the U.S. Government's estimated cost 
     for operating border station facilities in Laredo is $10 
     million, so that the Port generated over $200 million for the 
     U.S. Treasury in 1995; and
       (8) The new bridge will greatly enhance safety in the 
     downtown area because it will allow the diversion of 
     commercial traffic from the two existing downtown bridges to 
     the new bridge, since the two downtown bridges will be 
     strictly passenger bridges, with the new bridge and the 
     Colombia Bridge (22 miles from Laredo) devoted to commercial 
     traffic.
       (b) It is the sense of the Senate that:
       (1) The construction of a third bridge in Laredo is vitally 
     needed to accommodate increased trade with Mexico and to 
     relieve traffic congestion, road damage, and pollution in 
     downtown Laredo caused by commercial traffic; and
       (2) The Administrator of the General Services 
     Administration should accelerate the timetable for design and 
     construction of a border station for the new Laredo bridge to 
     ensure that the bridge can be opened to international traffic 
     as soon as possible.
                                 ______
                                 

                 KERRY (AND OTHERS) AMENDMENT NO. 5279

  Mr. KERRY (for himself, Mrs. Feinstein, Mr. Kennedy, and Mr. Harkin) 
proposed an amendment to the bill, H.R. 3756, supra; as follows:

       On page 14, line 6, strike ``$395,597,000'' and insert 
     ``$416,897,000, of which $21,300,000, to remain available 
     until expended, shall be available to conduct the study under 
     section 732(a) of Public Law 104-132 (relating to marking, 
     rendering inert, and licensing of explosive materials) and to 
     conduct a study of threats to law enforcement officers from 
     the criminal use of firearms and ammunition; and''.
       On page 22, line 14, strike ``$4,085,355,000'' and insert 
     ``$4,064,055,000''.
       On page 25, between lines 21 and 22, insert:
       Sec.   . (a) Section 732(a)(2) of the Antiterrorism and 
     Effective Death Penalty Act of 1996 (Public Law 104-132) is 
     hereby repealed.
       (b) It is the sense of the Senate that the $21,300,000 
     reduction in funds available for tax law enforcement to fund 
     the explosive materials and law enforcement officers safety 
     study be achieved as follows:
       (1) $9,700,000 from the delay required by this Act in 
     implementing field restructuring of the Internal Revenue 
     Service.
       (2) $11,600,000 from administrative and other savings in 
     tax law enforcement activities.
                                 ______
                                 

                      DOMENICI AMENDMENT NO. 5280

  (Ordered to lie on the table.)
  Mr. DOMENICI submitted an amendment intended to be proposed by him to 
the bill, H.R. 3756, supra; as follows:

       At the appropriate place insert the following:

     SEC.   . TRANSITION FROM AFDC ENTITLEMENT PROGRAM TO TANF 
                   BLOCK GRANT.

       Section 116(c) of the Personal Responsibility and Work 
     Opportunity Reconciliation Act of 1996 is amended--
       (1) by striking ``Effective'' and inserting:
       ``(1) In general.--Except as provided in paragraph (2), 
     effective''; and
       (2) by adding at the end the following:
       ``(2) Transition rule.--
       ``(A) In general.--In the case of any State not opting to 
     accelerate the effective date of this title under subsection 
     (b)(1), paragraph (1) shall be applied to such State by 
     substituting ``July 1, 1997'' for ``October 1, 1996''.
       ``(B) Payments to states.--
       ``(i) In general.--Notwithstanding subsection 
     (b)(1)(B)(ii)(II), the total obligation of the Federal 
     Government for fiscal year 1997 to any State described in 
     subparagraph (A) shall be increased by \1/4\ of the State 
     family assistance grant for such State for such fiscal year.
       ``(ii) Timing of payment.--Any State eligible for the \1/4\ 
     increase in the Federal obligation to such State under clause 
     (i), shall receive an outlay representing such increase at 
     the beginning of the 4th quarter of fiscal year 1997.''.
                                 ______
                                 

                       D'AMATO AMENDMENT NO. 5281

  (Ordered to lie on the table.)
  Mr. D'AMATO (for himself and Mr. Moynihan) submitted an amendment 
intended to be proposed by them to the bill, H.R. 3756, supra; as 
follows:

       At the appropriate place in the bill insert the following 
     new section:
       Sec.  . For all reasonable costs associated with the 
     recovery effort of TWA Flight 800, there shall be made 
     available no more than $10 million to the Department of the 
     Treasury, ``Departmental Offices'' account, which shall 
     remain available until expended. The State of New York, 
     counties, and local governments that provided assistance to 
     this effort shall be eligible for reimbursement of expenses 
     incurred during this effort. If the value of total claims 
     exceeds the appropriated sum, the funds shall be allocated on 
     a pro-rated basis. All claims by New York State, counties, 
     and municipalities shall be forwarded to the appropriate 
     department of the State of New York, who in turn will forward 
     a claim to the Department of the Treasury.
       On page 2, line 18 strike ``$111,348,000 and insert 
     ``$121,348,000''.
       On page 53, line 14 strike ``$360,000,000'' and insert 
     ``$355,000,000''.
       On page 55, line 15 strike ``$2,343,795,000'' and insert 
     ``$2,343,790,000.
                                 ______
                                 

                      COVERDELL AMENDMENT NO. 5282

  (Ordered to lie on the table.)
  Mr. COVERDELL submitted an amendment intended to be proposed by him 
to the bill, H.R. 3756, supra; as follows:

       At the appropriate place in the bill, insert the following 
     new section:
       Sec.  . No part of any appropriation contained in this Act 
     shall be available for the payment of the salary of any 
     officer or employee of the Executive Office of the President 
     who--
       (1) in the course of employment has access to information, 
     documents, or, records that are--
       (A) subject to the exemption under section 552(b)(7) of 
     title 5, United States Code; or
       (B) determined to be national security information in 
     accordance with Executive Order No. 12356; and
       (2) is determined as a result of a pre-employment 
     background check, or is determined after such employment 
     begins, to have illegally used any controlled substance 
     during--
       (A) the 5-year period before the date of the beginning of 
     such employment; or
       (B) the period of any employment in the Executive Office of 
     the President.
                                 ______
                                 

                      JOHNSTON AMENDMENT NO. 5283

  (Ordered to lie on the table.)
  Mr. JOHNSTON submitted an amendment intended to be proposed by him to 
the bill, H.R. 3756, supra; as follows:

       At the appropriate place, insert the following:

     ``SEC.  . AMENDMENT TO THE NUCLEAR WASTE POLICY ACT.

       ``The Nuclear Waste Policy Act of 1982 is amended to read 
     as follows:

     ``SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

       ``(a) Short Title.--This Act may be cited as the `Nuclear 
     Waste Policy Act of 1996'.
       ``(b) Table of Contents.--

``Sec. 1.  Short title and table of contents.
``Sec. 2.  Definitions.

                         ``TITLE I--OBLIGATIONS

``Sec. 101.  Obligations of the Secretary of Energy.

                ``TITLE II--INTEGRATED MANAGEMENT SYSTEM

``Sec. 201  Intermodal Transfer.
``Sec. 202.  Transportation planning.
``Sec. 203.  Transportation requirements.
``Sec. 204.  Interim storage.
``Sec. 205.  Permanent repository.
``Sec. 206.  Land withdrawal.

                      ``TITLE III--LOCAL RELATIONS

``Sec. 301.  Financial Assistance.
``Sec. 302.  On-Site Representative.
``Sec. 303.  Acceptance of Benefits.
``Sec. 304.  Restrictions on Use of Funds.
``Sec. 305.  Land Conveyances.

                  ``TITLE IV--FUNDING AND ORGANIZATION

``Sec. 401.  Program Funding.
``Sec. 402.  Office of Civilian Radioactive Waste Management.
``Sec. 403.  Federal contribution.

[[Page S10479]]

            ``TITLE V--GENERAL AND MISCELLANEOUS PROVISIONS

``Sec. 501.  Compliance with other laws.
``Sec. 502.  Judicial review of agency actions.
``Sec. 503.  Licensing of facility expansions and transshipments.
``Sec. 504.  Siting a second repository.
``Sec. 505.  Financial arrangements for low-level radioactive waste 
              site closure.
``Sec. 506.  Nuclear Regulatory Commission training authority.
``Sec. 507.  Emplacement schedule.
``Sec. 508.  Transfer of Title.
``Sec. 509.  Decommissioning Pilot Program.
``Sec. 510.  Water Rights.

            ``TITLE VI--NUCLEAR WASTE TECHNICAL REVIEW BOARD

``Sec. 601.  Definitions.
``Sec. 602.  Nuclear Waste Technical Review Board.
``Sec. 603.  Functions.
``Sec. 604.  Investigatory powers.
``Sec. 605.  Compensation of members.
``Sec. 606.  Staff.
``Sec. 607.  Support services.
``Sec. 608.  Report.
``Sec. 609.  Authorization of appropriations.
``Sec. 610.  Termination of the board.

                     ``TITLE VII--MANAGEMENT REFORM

``Sec. 701.  Management reform initiatives.
``Sec. 702.  Reporting.
``Sec. 703.  Effective date.

     ``SECTION 2. DEFINITIONS.

       ``For purposes of this Act:
       ``(1) Accept, acceptance.--The terms `accept' and 
     `acceptance' mean the Secretary's act of taking possession of 
     spent nuclear fuel or high-level radioactive waste.
       ``(2) Affected indian tribe.--The term ``affected Indian 
     tribe'' means any Indian tribe--
       ``(A) whose reservation is surrounded by or borders an 
     affected unit of local government, or
       ``(B) whose federally defined possessory or usage rights to 
     other lands outside of the reservation's boundaries arising 
     out of congressionally ratified treaties may be substantially 
     and adversely affected by the locating of an interim storage 
     facility or a repository if the Secretary of the Interior 
     finds, upon the petition of the appropriate governmental 
     officials of the tribe, that such effects are both 
     substantial and adverse to the tribe.
       ``(3) Affected unit of local government.--The term 
     `affected unit of local government' means the unit of local 
     government with jurisdiction over the site of a repository or 
     interim storage facility. Such term may, at the discretion of 
     the Secretary, include other units of local government that 
     are contiguous with such unit.
       ``(4) Atomic energy defense Activity.--The term `atomic 
     energy defense activity means any activity' of the Secretary 
     performed in whole or in part in carrying out any of the 
     following functions:
       ``(A) Naval reactors development.
       ``(B) Weapons activities including defense inertial 
     confinement fusion.
       ``(C) Verification and control technology.
       ``(D) Defense nuclear materials production.
       ``(E) Defense nuclear waste and materials byproducts 
     management.
       ``(F) Defense nuclear materials security and safeguards and 
     security investigations.
       ``(G) Defense research and development.
       ``(5) Civilian Nuclear Power Reactor.--The term `civilian 
     nuclear power reactor' means a civilian nuclear power plant 
     required to be licensed under section 103 or 104 b. of the 
     Atomic Energy Act of 1954 (42 U.S.C. 2133, 2134(b)).
       ``(6) Commission.--The term `Commission' means the Nuclear 
     Regulatory Commission.
       ``(7) Contracts.--The term `contracts' means the contracts, 
     executed prior to the date of enactment of the Nuclear Waste 
     Policy Act of 1996, under section 302(a) of the Nuclear Waste 
     Policy Act of 1982, by the Secretary and any person who 
     generates or holds title to spent nuclear fuel or high-level 
     radioactive waste of domestic origin for acceptance of such 
     waste or fuel by the Secretary and the payment of fees to 
     offset the Secretary's expenditures, and any subsequent 
     contracts executed by the Secretary pursuant to section 
     401(a) of this Act.''
       ``(8) Contract holders.--The term `contract holders' means 
     parties (other than the Secretary) to contracts.
       ``(9) Department.--The term `Department' means the 
     Department of Energy.
       ``(10) Disposal.--The term `disposal' means the emplacement 
     in a repository of spent nuclear fuel, high-level radioactive 
     waste, or other highly radioactive material with no 
     foreseeable intent of recovery, whether or not such 
     emplacement permits recovery of such material for any future 
     purpose.
       ``(11) Disposal system.--The term `disposal system' means 
     all natural barriers and engineered barriers, and engineered 
     systems and components, that prevent the release of 
     radionuclides from the repository.
       ``(12) Emplacement schedule.--The term `emplacement 
     schedule' means the schedule established by the Secretary in 
     accordance with section 507(a) for emplacement of spent 
     nuclear fuel and high-level radioactive waste at the interim 
     storage facility.
       ``(13) Engineered barriers and engineered systems and 
     components.--The terms `engineered barriers' and `engineered 
     systems and components,' mean man-made components of a 
     disposal system. These terms include the spent nuclear fuel 
     or high-level radioactive waste form, spent nuclear fuel 
     package or high-level radioactive waste package, and other 
     materials placed over and around such packages.
       ``(14) High-level radioactive waste.--The term `high-level 
     radioactive waste' means--
       ``(A) the highly radioactive material resulting from the 
     reprocessing of spent nuclear fuel, including liquid waste 
     produced directly in reprocessing and any solid material 
     derived from such liquid waste that contains fission products 
     in sufficient concentrations; and
       ``(B) other highly radioactive material that the 
     Commission, consistent with existing law, determines by rule 
     requires permanent isolation, which includes any low-level 
     radioactive waste with concentrations of radionuclides that 
     exceed the limits established by the Commission for class C 
     radioactive waste, as defined by section 61.55 of title 10, 
     Code of Federal Regulations, as in effect on January 26, 
     1983.
       ``(15) Federal agency.--The term `Federal agency' means any 
     Executive agency, as defined in section 105 of title 5, 
     United States Code.
       ``(16) Indian tribe.--The term `Indian tribe' means any 
     Indian tribe, band, nation, or other organized group or 
     community of Indians recognized as eligible for the 
     services provided to Indians by the Secretary of the 
     Interior because of their status as Indians including any 
     Alaska Native village, as defined in section 3(c) of the 
     Alaska Native Claims Settlement Act (43 U.S.C. 1602(c)).
       ``(17) Integrated management system.--The term `integrated 
     management system' means the system developed by the 
     Secretary for the acceptance, transportation, storage, and 
     disposal of spent nuclear fuel and high-level radioactive 
     waste under title II of this Act.
       ``(18) Interim storage facility.--The term `interim storage 
     facility' means a facility designed and constructed for the 
     receipt, handling, possession, safeguarding, and storage of 
     spent nuclear fuel and high-level radioactive waste in 
     accordance with title II of this Act.
       ``(19) Interim storage facility site.--The term `interim 
     storage facility site' means the specific site within Area 25 
     of the Nevada Test Site that is designated by the Secretary 
     and withdrawn and reserved in accordance with this Act for 
     the location of the interim storage facility.
       ``(20) Low-level radioactive waste.--The term `low-level 
     radioactive waste' means radioactive material that--
       ``(A) is not spent nuclear fuel, high-level radioactive 
     waste, transuranic waste, or byproduct material as defined in 
     section 11e.(2) of the Atomic Energy Act of 1954 (42 U.S.C. 
     2014(e)(2)); and
       ``(B) the Commission, consistent with existing law, 
     classifies as low-level radioactive waste.
       ``(21) Metric tons uranium.--The terms `metric tons 
     uranium' and `MTU' means the amount of uranium in the 
     original unirradiated fuel element whether or not the spent 
     nuclear fuel has been reprocessed.
       ``(22) Nuclear waste fund.--The terms `Nuclear Waste Fund' 
     and `waste fund' mean the nuclear waste fund established in 
     the United States Treasury prior to the date of enactment of 
     this Act under section 302(c) of the Nuclear Waste Policy Act 
     of 1982.
       ``(23) Office.--The term `Office' means the Office of 
     Civilian Radioactive Waste Management established within the 
     Department prior to the date of enactment of this Act under 
     the provisions of the Nuclear Waste Policy Act of 1982.
       ``(24) Program approach.--The term `program approach' means 
     the Civilian Radioactive Waste Management Program Plan, dated 
     May 6, 1996, as modified by this Act, and as amended from 
     time to time by the Secretary in accordance with this Act.
       ``(25) Respository.--The term `repository' means a system 
     designed and constructed under title II of this Act for the 
     geologic disposal of spend nuclear fuel and high-level 
     radioactive waste, including both surface and subsurface 
     areas at which spent nuclear fuel and high-level radioactive 
     waste receipt, handling, possession, safeguarding, and 
     storage are conducted.
       ``(26) Secretary.--The term `Secretary' means the Secretary 
     of Energy.
       ``(27) Site characterization.--The term `site 
     characterization' means activities, whether in a laboratory 
     or in the field, undertaken to establish the geologic 
     condition and the ranges of the parameters of a candidate 
     site relevant to the location of a repository, including 
     borings, surface excavations, excavations of exploratory 
     facilities, limited subsurface lateral excavations and 
     borings, and in situ testing needed to evaluate the 
     licensability of a candidate site for the location of a 
     repository, but not including preliminary borings and 
     geophysical testing needed to asses whether site 
     characterization should be undertaken.
       ``(28) Spent nuclear fuel.--The term `spend nuclear fuel' 
     means fuel that has been withdrawn from a nuclear reactor 
     following irradiation, the constituent elements of which have 
     not been separated by reprocessing.
       ``(29) Storage.--The term `storage' means retention of 
     spent nuclear fuel or high-level radioactive waste with the 
     intent to recover such waste or fuel for subsequent use, 
     processing, or disposal.
       ``(30) Withdrawal.--The term `withdrawal' has the same 
     definition as that set forth in section 103(j) of the Federal 
     Land Policy and Management Act of 1976 (43 U.S.C. 1702(j)).
       ``(31) Yucca mountain site.--The term ``Yucca Mountain 
     site'' means the area in

[[Page S10480]]

     the State of Nevada that is withdrawn and reserved in 
     accordance with this Act for the location of a repository.

                         ``TITLE I--OBLIGATIONS

     ``SEC. 101. OBLIGATIONS OF THE SECRETARY OF ENERGY.

       ``(a) Disposal.--The Secretary shall develop and operate an 
     integrated management system for the storage and permanent 
     disposal of spent nuclear fuel and high-level radioactive 
     waste.
       ``(b) Interim Storage.--The Secretary shall store spent 
     nuclear fuel and high-level radioactive waste from facilities 
     designated by contract holders at an interim storage facility 
     pursuant to section 204 in accordance with the emplacement 
     schedule, beginning not later than November 30, 1999.
       ``(c) Transportation.--The Secretary shall provide for the 
     transportation of spent nuclear fuel and high-level 
     radioactive waste accepted by the Secretary. The Secretary 
     shall procure all systems and components necessary to 
     transport spent nuclear fuel and high-level radioactive 
     waste from facilities designated by contract holders to 
     and among facilities comprising the Integrated Management 
     System. Consistent with the Buy American Act (41 U.S.C. 
     10a-10c), unless the Secretary shall determine it to be 
     inconsistent with the public interest, or the cost to be 
     unreasonable, all such systems and components procured by 
     the Secretary shall be manufactured in the United States, 
     with the exception of any transportable storage systems 
     purchased by contract holders prior to the effective date 
     of the Nuclear Waste Policy Act of 1996 and procured by 
     the Secretary from such contract holders for use in the 
     integrated management system.
       ``(d) Integrated Management System.--The Secretary shall 
     expeditiously pursue the development of each component of the 
     integrated management system, and in so doing shall seek to 
     utilize effective private sector management and contracting 
     practices.
       ``(e) Private Sector Participation.--In administering the 
     Integrated Management System, the Secretary shall, to the 
     maximum extent possible, utilize, employ, procure and 
     contract with, the private sector to fulfill the Secretary's 
     obligations and requirements under this Act.
       ``(f) Pre-Existing Rights.--Nothing in this Act is intended 
     to or shall be construed to modify--
       ``(1) any right of a contract holder under section 302(a) 
     of the Nuclear Waste Policy Act of 1982, or under a contract 
     executed prior to the date of enactment of this Act under 
     that section; or
       ``(2) obligations imposed upon the federal government by 
     the U.S. District Court of Idaho in an order entered on 
     October 17, 1995 in United States v. Batt (No. 91-0054-S-
     EJL).
       ``(g) Liability.--Subject to subsection (f), nothing in 
     this Act shall be construed to subject the United States to 
     financial liability for the Secretary's failure to meet any 
     deadline for the acceptance or emplacement of spent nuclear 
     fuel or high-level radioactive waste for storage or disposal 
     under this Act.

                ``TITLE II--INTEGRATED MANAGEMENT SYSTEM

     SEC. 201. INTERMODAL TRANSFER.--

       ``(a) Access.--The Secretary shall utilize heavy-haul truck 
     transport to move spent nuclear fuel and high-level 
     radioactive waste from the mainline rail line at Caliente, 
     Nevada, to the interim storage facility site.
       ``(b) Capability Date.--The Secretary shall develop the 
     capability to commence rail to truck intermodal transfer at 
     Caliente, Nevada, no later than November 30, 1999. Intermodal 
     transfer and related activities are incidental to the 
     interstate transportation of spent nuclear fuel and high-
     level radioactive waste.
       ``(c) Acquisitions.--The Secretary shall acquire lands and 
     rights-of-way necessary to commence intermodal transfer at 
     Caliente, Nevada.
       ``(d) Replacements.--The Secretary shall acquire and 
     develop on behalf of, and dedicate to, the City of Caliente, 
     Nevada, parcels of land and right-of-way within Lincoln 
     County, Nevada, as required to facilitate replacement of land 
     and city wastewater disposal facilities necessary to commence 
     intermodal transfer pursuant to this Act. Replacement of land 
     and city wastewater disposal activities shall occur no later 
     than November 30, 1999.
       ``(e) Notice and Map.--Within 6 months of the date of 
     enactment of the Nuclear Waste Policy Act of 1996, the 
     Secretary shall--
       ``(1) publish in the Federal Register a notice containing a 
     legal description of the sites and rights-of-way to be 
     acquired under this subsection; and
       ``(2) file copies of a map of such sites and rights-of-way 
     with the Congress, the Secretary of the Interior, the State 
     of Nevada, the Archivist of the United States, the Board of 
     Lincoln County Commissioners, the Board of Nye County 
     Commissioners, and the Caliente City Council.

     Such map and legal description shall have the same force and 
     effect as if they were included in this Act. The Secretary 
     may correct clerical and typographical errors and legal 
     descriptions and make minor adjustments in the boundaries.
       ``(f) Improvements.--The Secretary shall make improvements 
     to existing roadways selected for heavy-haul truck transport 
     between Caliente, Nevada, and the interim storage facility 
     site as necessary to facilitate year-round safe transport of 
     spent nuclear fuel and high-level radioactive waste.
       ``(g) Local Government Involvement.--The Commission shall 
     enter into a Memorandum of Understanding with the City of 
     Caliente and Lincoln County, Nevada, to provide advice to the 
     Commission regarding intermodal transfer and to facilitate 
     on-site representation. Reasonable expenses of such 
     representation shall be paid by the Secretary.
       ``(h) Benefits Agreement.--
       ``(1) In general.--The Secretary shall offer to enter into 
     an agreement with the City of Caliente and Lincoln County, 
     Nevada concerning the integrated management system.
       ``(2) Agreement content.--Any agreement shall contain such 
     terms and conditions, including such financial and 
     institutional arrangements, as the Secretary and agreement 
     entity determine to be reasonable and appropriate and shall 
     contain such provisions as are necessary to preserve any 
     right to participation or compensation of the City of 
     Caliente and Lincoln County, Nevada.
       ``(3) Amendment.--An agreement entered into under this 
     subsection may be amended only with the mutual consent of the 
     parties to the amendment and terminated only in accordance 
     with paragraph (4).
       ``(4) Termination.--The Secretary shall terminate the 
     agreement under this subsection if any major element of the 
     integrated management system may not be completed.
       ``(5) Limitation.--Only 1 agreement may be in effect at any 
     one time.
       ``(6) Judicial Review.--Decisions of the Secretary under 
     this section are not subject to judicial review.
       ``(i) Content of Agreement.
       ``(1) Schedule.--In addition to the benefits to which the 
     City of Caliente and Lincoln County is entitled to under this 
     title, the Secretary shall make payments under the benefits 
     agreement in accordance with the following schedule:


                           BENEFITS SCHEDULE

                         [Amounts in millions]

        Event                                                   Payment
(A) Annual Payments prior to first receipt of spent fuel...........$2.5
(B) Annual payments beginning upon first spent fuel receipt.........5.0
(C) Payment upon closure of the intermodal transfer facility........5.0

       ``(2) Definitions.--For purposes of this section, the 
     term--
       ``(A) `spent fuel' means high-level radioactive waste or 
     spent nuclear fuel; and
       ``(B) `first spent fuel receipt' does not include receipt 
     of spent fuel or high-level radioactive waste for purposes of 
     testing or operational demonstration.
       ``(3) Annual payments.--Annual payments prior to first 
     spent fuel receipt under paragraph (1)(A) and shall be made 
     on the date of execution of the benefits agreement and 
     thereafter on the anniversary date of such execution. Annual 
     payments after the first spent fuel receipt until closure of 
     the facility under paragraph (1)(C) shall be made on the 
     anniversary date of such first spent fuel receipt.
       ``(4) Reduction.--If the first spent fuel payment under 
     paragraph (1)(B) is made within 6 months after the last 
     annual payment prior to the receipt of spent fuel under 
     paragraph (1)(A), such first spent fuel payment under 
     paragraph (1)(B) shall be reduced by an amount equal to \1/
     12\ of such annual payment under paragraph (1)(A) for each 
     full month less than 6 that has not elapsed since the last 
     annual payment under paragraph (1)(A).
       ``(5) Restrictions.--The Secretary may not restrict the 
     purposes for which the payments under this section may be 
     used.
       ``(6) Dispute.--In the event of a dispute concerning such 
     agreement, the Secretary shall resolve such dispute, 
     consistent with this Act and applicable State law.
       ``(7) Construction.--The signature of the Secretary on a 
     valid benefits agreement under this section shall constitute 
     a commitment by the United States to make payments in 
     accordance with such agreement under section 401(c)(2).
       ``(j) Initial Land Conveyances.
       ``(1) Conveyances of public lands.--One hundred and twenty 
     days after enactment of this Act, all right, title and 
     interest of the United States in the property described in 
     paragraph (2), and improvements thereon, together with all 
     necessary easements for utilities and ingress and egress to 
     such property, including, but not limited to, the right to 
     improve those easements, are conveyed by operation of law to 
     the County of Lincoln, Nevada, unless the county notifies the 
     Secretary of Interior or the head of such other appropriate 
     agency in writing within 60 days of such date of enactment 
     that it elects not to take title to all or any part of the 
     property, except that any lands conveyed to the County of 
     Lincoln under this subsection that are subject to a Federal 
     grazing permit or lease or a similar federally granted permit 
     or lease shall be conveyed between 60 and 120 days of the 
     earliest time the Federal agency administering or granting 
     the permit or lease would be able to legally terminate such 
     right under the statutes and regulations existing at the date 
     of enactment of this Act, unless Lincoln County and the 
     affected holder of the permit or lease negotiate an agreement 
     that allows for an earlier conveyance.
       ``(2) Special conveyances.--Notwithstanding any other law, 
     the following public lands depicted on the maps and legal 
     descriptions dated October 11, 1995, shall be conveyed under 
     paragraph (1) to the County of Lincoln, Nevada:

[[Page S10481]]

       Map 10: Lincoln County, Parcel M, Industrial Park Site
       Map 11: Lincoln County, Parcel F, Mixed Use Industrial Site
       Map 13: Lincoln County, Parcel J, Mixed Use, Alamo 
     Community Expansion Area
       Map 14: Lincoln County, Parcel E, Mixed Use, Pioche 
     Community Expansion Area
       Map 15: Lincoln County, Parcel B, Landfill Expansion Site.
       ``(3) Construction.--The maps and legal descriptions of 
     special conveyances referred to in paragraph (2) shall have 
     the same force and effect as if they were included in this 
     Act. The Secretary may correct clerical and typographical 
     errors in the maps and legal descriptions and make minor 
     adjustments in the boundaries of the sites.
       ``(4) Evidence of title transfer.--Upon request of the 
     County of Lincoln, Nevada, the Secretary of the Interior 
     shall provide evidence of title transfer.

     ``SEC. 202. TRANSPORTATION PLANNING.

       ``(a) Transportation Readiness.--The Secretary shall take 
     those actions that are necessary and appropriate to ensure 
     that the Secretary is able to transport safely spent nuclear 
     fuel and high-level radioactive waste from sites designated 
     by the contract holders to mainline transportation 
     facilities, using routes that minimize, to the maximum 
     practicable extent consistent with Federal requirements 
     governing transportation of hazardous materials, 
     transportation of spent nuclear fuel and high-level 
     radioactive waste through populated areas, beginning not 
     later than November 30, 1999, and, by that date, shall, in 
     consultation with the Secretary of Transportation, develop 
     and implement a comprehensive management plan that ensures 
     that safe transportation of spent nuclear fuel and high-
     level radioactive waste from the sites designated by the 
     contract holders to the interim storage facility site 
     beginning not later than November 30, 1999.
       ``(b) Transportation Planning.--In conjunction with the 
     development of the logistical plan in accordance with 
     subsection (a), the Secretary shall update and modify, as 
     necessary, the Secretary's transportation institutional plans 
     to ensure that institutional issues are addressed and 
     resolved on a schedule to support the commencement of 
     transportation of spent nuclear fuel and high-level 
     radioactive waste to the interim storage facility no later 
     than November 30, 1999. Among other things, such planning 
     shall provide a schedule and process for addressing and 
     implementing, as necessary, transportation routing plans, 
     transportation contracting plans, transportation training in 
     accordance with Section 203, and public education regarding 
     transportation of spent nuclear fuel and high level 
     radioactive waste; and transportation tracking programs.

     ``SEC. 203. TRANSPORTATION REQUIREMENTS.

       ``(a) Package Certification.--No spent nuclear fuel and 
     high level radioactive waste may be transported by or for the 
     Secretary under this Act except in packages that have been 
     certified for such purposes by the Commission.
       ``(b) State Notification.--The Secretary shall abide by 
     regulations of the Commission regarding advance notification 
     of State and local governments prior to transportation of 
     spent nuclear fuel or high-level radioactive waste under this 
     Act.
       ``(c) Technical Assistance.--The Secretary shall provide 
     technical assistance and funds to States, units of local 
     government, and Indian tribes through whose jurisdiction the 
     Secretary plans to transport substantial amounts of spent 
     nuclear fuel or high-level radioactive waste for training for 
     public safety officials of appropriate units of local 
     government. The Secretary shall also provide technical 
     assistance and funds for training directly to national 
     nonprofit employee organizations which demonstrate experience 
     in implementing and operating worker health and safety 
     training and education programs and demonstrate the ability 
     to reach and involve in training programs target populations 
     of workers who are or will be directly engaged in the 
     transportation of spent nuclear fuel and high-level 
     radioactive waste, or emergency response or post-emergency 
     response with respect to such transportation. Training shall 
     cover procedures required for safe routine transportation of 
     these materials, as well as procedures for dealing with 
     emergency response situations, and shall be consistent with 
     any training standards established by the Secretary of 
     Transportation in accordance with subsection (g). The 
     Secretary's duty to provide technical and financial 
     assistance under this subsection shall be limited to amounts 
     specified in annual appropriations.
       ``(d) Public Education.--The Secretary shall conduct a 
     program to educate the public regarding the transportation of 
     spent nuclear fuel and high-level radioactive waste, with an 
     emphasis upon those States, units of local government, and 
     Indian tribes through whose jurisdiction the Secretary plans 
     to transport substantial amounts of spent nuclear fuel or 
     high-level radioactive waste.
       ``(e) Compliance With Transportation Regulations.--Any 
     person that transports spent nuclear fuel or high-level 
     radioactive waste under the Nuclear Waste Policy Act of 1986, 
     pursuant to a contract with the Secretary, shall comply with 
     all requirements governing such transportation issued by the 
     federal, state and local governments, and Indian tribes, in 
     the same way and to the same extent that any person engaging 
     in that transportation that is in or affects interstate 
     commerce must comply with such requirements, as required by 
     49 U.S.C. sec. 5126.
       ``(f) Employee Protection.--Any person engaged in the 
     interstate commerce of spent nuclear fuel or high-level 
     radioactive waste under contract to the Secretary pursuant to 
     this Act shall be subject to and comply fully with the 
     employee protection provisions of 49 U.S.C. 20109 and 49 
     U.S.C. 31105.
       ``(g) Training Standard.--(1) No later than 12 months after 
     the date of enactment of the Nuclear Waste Policy Act of 
     1996, the Secretary of Transportation, pursuant to authority 
     under other provisions of law, in consultation with the 
     Secretary of Labor and the Commission, shall promulgate a 
     regulation establishing training standards applicable to 
     workers directly involved in the removal and transportation 
     of spent nuclear fuel and high-level radioactive waste. The 
     regulation shall specify minimum training standards 
     applicable to workers, including managerial personnel. The 
     regulation shall require that the employer possess evidence 
     of satisfaction of the applicable training standard before 
     any individual may be employed in the removal and 
     transportation of spent nuclear fuel and high-level 
     radioactive waste.
       ``(2) If the Secretary of Transportation determines, in 
     promulgating the regulation required by subparagraph (1), 
     that regulations promulgated by the Commission establish 
     adequate training standards for workers, then the Secretary 
     of Transportation can refrain from promulgating additional 
     regulations with respect to worker training in such 
     activities. The Secretary of Transportation and the 
     Commission shall work through their Memorandum of 
     Understanding to ensure coordination of worker training 
     standards and to avoid duplicative regulation.
       ``(3) The training standards required to be promulgated 
     under subparagraph (1) shall, among other things deemed 
     necessary and appropriate by the Secretary of Transportation, 
     include the following provisions--
       ``(A) a specified minimum number of hours of initial off 
     site instruction and actual field experience under the direct 
     supervision of a trained, experienced supervisor;
       ``(B) a requirement that onsite managerial personnel 
     receive the same training as workers, and a minimum number of 
     additional hours of specialized training pertinent to their 
     managerial responsibilities; and
       ``(C) a training program applicable to persons responsible 
     for responding to and cleaning up emergency situations 
     occurring during the removal and transportation of spent 
     nuclear fuel and high-level radioactive waste.
       ``(4) There is authorized to be appropriated to the 
     Secretary of Transportation, from general revenues, such sums 
     as may be necessary to perform his duties under this 
     subsection.

     ``SEC. 204. INTERIM STORAGE.

       ``(a) Authorization.--The Secretary shall design, 
     construct, and operate a facility for the interim storage of 
     spent nuclear fuel and high-level radioactive waste at the 
     interim storage facility site. The interim storage facility 
     shall be subject to licensing pursuant to the Atomic Energy 
     Act of 1954 in accordance with the Commission's regulations 
     governing the licensing of independent spent fuel storage 
     installations, which regulations shall be amended by the 
     Commission as necessary to implement the provisions of this 
     Act. The interim storage facility shall commence operation in 
     phases in accordance with subsection (b).
       ``(b) Schedule.--(1) The Secretary shall proceed forthwith 
     and without further delay with all activities necessary to 
     begin storing spent nuclear fuel and high-level radioactive 
     waste at the interim storage facility at the interim storage 
     facility site by November 30, 1999, except that:
       ``(A) The Secretary shall not begin any construction 
     activities at the interim storage facility site before 
     December 31, 1998.
       ``(B) The Secretary shall cease all activities (except 
     necessary termination activities) at the Yucca Mountain site 
     if the President determines, in his discretion, on or before 
     December 31, 1998, based on a preponderance of the 
     information available at such time, that the Yucca Mountain 
     site is unsuitable for development as a repository, including 
     geologic and engineered barriers, because of a substantial 
     likelihood that a repository of useful size cannot be 
     designed, licensed, and constructed at the Yucca Mountain 
     site.
       ``(C) No later than June 30, 1998, the Secretary shall 
     provide to the President and to the Congress a viability 
     assessment of the Yucca Mountain site. The viability 
     assessment shall include--
       ``(i) the preliminary design concept for the critical 
     elements of the repository and waste package,
       ``(ii) a total system performance assessment, based upon 
     the design concept and the scientific data and analysis 
     available by June 30, 1998, describing the probable behavior 
     of the repository in the Yucca Mountain geologic setting 
     relative to the overall system performance standard set forth 
     in section 205(d) of this Act,
       ``(iii) a plan and cost estimate for the remaining work 
     required to complete a license application, and
       ``(iv) an estimate of the costs to construct and operate 
     the repository in accordance with the design concept.
       ``(D) Within 18 months of a determination by the President 
     that the Yucca Mountain site is unsuitable for development as 
     a repository under paragraph (B), the President

[[Page S10482]]

     shall designate a site for the construction of an interim 
     storage facility. If the President does not designate a site 
     for the construction of an interim storage facility, or the 
     construction of an interim storage facility at the designated 
     site is not approved by law within 24 months of the 
     President's determination that the Yucca Mountain site is not 
     suitable for development as a repository, the Secretary shall 
     begin construction of an interim storage facility at the 
     interim storage facility site as defined in section 2(19) of 
     this Act. The interim storage facility site as defined in 
     section 2(19) of this Act shall be deemed to be approved by 
     law for purposes of this section.
       ``(2) Upon the designation of an interim storage facility 
     site by the President under paragraph (1)(D), the Secretary 
     shall proceed forthwith and without further delay with all 
     activities necessary to begin storing spent nuclear fuel and 
     high-level radioactive waste at an interim storage facility 
     at the designated site, except that the Secretary shall not 
     begin any construction activities at the designated interim 
     storage facility site before the designated interim storage 
     facility site is approved by law.
       ``(c) Design.--
       ``(1) The interim storage facility shall be designed in two 
     phases in order to commence operations no later than November 
     30, 1999. The design of the interim storage facility shall 
     provide for the use of storage technologies, licensed, 
     approved, or certified by the Commission for use at the 
     interim storage facility as necessary to ensure compatibility 
     between the interim storage facility and contract holders' 
     spent nuclear fuel and facilities, and to facilitate the 
     Secretary's ability to meet the Secretary's obligations under 
     this Act.
       ``(2) The Secretary shall consent to an amendment to the 
     contracts to provide for reimbursement to contract holders 
     for transportable storage systems purchased by contract 
     holders if the Secretary determines that it is cost effective 
     to use such transportable storage systems as part of the 
     integrated management system, provided that the Secretary 
     shall not be required to expend any funds to modify contract 
     holders's storage or transport systems or to seek additional 
     regulatory approvals in order to use such systems.
       ``(d) Licensing.--
       ``(1) Phases.--The interim storage facility shall be 
     licensed by the Commission in two phases in order to commence 
     operations no later than November 30, 1999.
       ``(2) First Phase.--No later than 12 months after the date 
     of enactment of the Nuclear Waste Policy Act of 1996, the 
     Secretary shall submit to the Commission an application for a 
     license for the first phase of the interim storage facility. 
     The Environmental Report and Safety Analysis Report submitted 
     in support of such license application shall be consistent 
     with the scope of authority requested in the license 
     application. The license issued for the first phase of the 
     interim storage facility shall have a term of 20 years. The 
     interim storage facility licensed in the first phase shall 
     have a capacity of not more than 15,000 MTU. The Commission 
     shall issue a final decision granting or denying the 
     application for the first phase license no later than 16 
     months from the date of the submittal of the application for 
     such license.
       ``(3) Second Phase.--No later than 30 months after the date 
     of enactment of the Nuclear Waste Policy Act of 1996, the 
     Secretary shall submit to the Commission an application for a 
     license for the second phase interim storage facility. The 
     license for the second phase facility shall authorize a 
     storage capacity of 40,000 MTU. If the Secretary does not 
     submit the license application for construction of a 
     respository by February 1, 2002, or does not begin full spent 
     nuclear fuel receipt operations at a repository by January 
     17, 2010, the license shall authorize a storage capacity of 
     60,000 MTU. The license application shall be submitted such 
     that the license can be issued to permit the second phase 
     facility to begin full spent nuclear fuel receipt operations 
     no later than December 31, 2002. The license for the second 
     phase shall have an initial term of up to 100 years, and 
     shall be renewable for additional terms upon application of 
     the Secretary.
       ``(e) Additional Authority.--
       ``(1) Construction.--For purposes of complying with this 
     section, the Secretary may commence site preparation for the 
     interim storage facility as soon as practicable after the 
     date of enactment of the Nuclear Waste Policy Act of 1996 and 
     shall commence construction of each phase of the interim 
     storage facility subsequent to submittal of the license 
     application for such phase except that the Commission shall 
     issue an order suspending such construction at any time if 
     the Commission determines that such construction poses an 
     unreasonable risk to public health and safety or the 
     environment. The Commission shall terminate all or part of 
     such order upon a determination that the Secretary has taken 
     appropriate action to eliminate such risk.
       ``(2) Facility use.--Notwithstanding any otherwise 
     applicable licensing requirement, the Secretary may utilize 
     any facility owned by the Federal Government on the date of 
     enactment of the Nuclear Waste Policy Act of 1996 within the 
     boundaries of the interim storage facility site, in 
     connection with an imminent and substantial endangerment to 
     public health and safety at the interim storage facility 
     prior to commencement of operations during the second phase.
       ``(3) Emplacement of fuel and waste.--Subject to paragraph 
     (i), once the Secretary has achieved the annual acceptance 
     rate for spent nuclear fuel from civilian nuclear power 
     reactors established pursuant to the contracts executed prior 
     to the date of enactment of the Nuclear Waste Policy Act of 
     1996, as set forth in the Secretary's annual capacity report 
     dated March, 1995 (DOE/RW-0457), the Secretary shall accept, 
     in an amount not less than 25% of the difference between the 
     contractual acceptance rate and the annual emplacement rate 
     for spent nuclear fuel from civilian nuclear power reactors 
     established under section 507(a), the following radioactive 
     materials:
       ``(A) spent nuclear fuel or high-level radioactive waste of 
     domestic origin from civilian nuclear power reactors that 
     have permanently ceased operation on or before the date of 
     enactment of the Nuclear Waste Policy Act of 1996;
       ``(B) spent nuclear fuel from foreign research reactors, as 
     necessary to promote non-proliferation objectives; and
       ``(C) spent nuclear fuel, including spent nuclear fuel from 
     naval reactors, and high-level radioactive waste from atomic 
     energy defense activities.
       ``(f) National Environmental Policy Act of 1969.--
       ``(1) Preliminary decisionmaking activities.--The 
     Secretary's and President's activities under this section, 
     including, but not limited to, the selection of a site for 
     the interim storage facility, assessments, determinations and 
     designations made under section 204(b), the preparation and 
     submittal of a license application and supporting 
     documentation, the construction of a facility under paragraph 
     (e)(1) of this section, and facility use pursuant to 
     paragraph (e)(2) of this section shall be considered 
     preliminary decisionmaking activities for purposes of 
     judicial review. The Secretary shall not prepare an 
     environmental impact statement under section 102(2)(C) of the 
     National Environmental Policy Act of 1969 (42 U.S.C. 
     4332(2)(C)) or any environmental review under subparagraph 
     (E) or (F) of such Act before conducting these activities.
       ``(2) Environmental Impact Statement.--
       ``(A) Final decision.--A final decision by the Commission 
     to grant or deny a license application for the first or 
     second phase of the interim storage facility shall be 
     accompanied by an Environmental Impact Statement prepared 
     under section 102(2)(C) of the National Environmental Policy 
     Act of 1969 (42 U.S.C. 4332(2)(C)). In preparing such 
     Environmental Impact Statement, the Commission--
       ``(i) shall ensure that the scope of the Environmental 
     Impact Statement is consistent with the scope of the 
     licensing action; and
       ``(ii) shall analyze the impacts of the transportation of 
     spent nuclear fuel and high-level radioactive waste to the 
     interim storage facility in a generic manner.
       ``(B) Considerations.--Such Environmental Impact Statement 
     shall not consider--
       ``(i) the need for the interim storage facility, including 
     any individual component thereof;
       ``(ii) the time of the initial availability of the interim 
     storage facility;
       ``(iii) any alternatives to the storage of spent nuclear 
     fuel and high-level radioactive waste at the interim storage 
     facility;
       ``(iv) any alternatives to the site of the facility as 
     designated by the Secretary in accordance with subsection 
     (a);
       ``(v) any alternatives to the design criteria for such 
     facility or any individual component thereof, as specified by 
     the Secretary in the license application; or
       ``(vi) the environmental impacts of the storage of spent 
     nuclear fuel and high-level radioactive waste at the interim 
     storage facility beyond the initial term of the license or 
     the term of the renewal period for which a license renewal 
     application is made.
       ``(g) Judicial Review.--Judicial review of the Commission's 
     environmental impact statement under the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) 
     shall be consolidated with judicial review of the 
     Commission's licensing decision. No court shall have 
     jurisdiction to enjoin the construction or operation of the 
     interim storage facility prior to its final decision on 
     review of the Commission's licensing action.
       ``(h) Waste Confidence.--The Secretary's obligation to 
     construct and operate the interim storage facility in 
     accordance with this section and the Secretary's obligation 
     to develop an integrated management system in accordance with 
     the provisions of this Act, shall provide sufficient and 
     independent grounds for any further findings by the 
     Commission of reasonable assurance that spent nuclear fuel 
     and high-level radioactive waste will be disposed of safely 
     and on a timely basis for purposes of the Commission's 
     decision to grant or amend any license to operate any 
     civilian nuclear power reactor under the Atomic Energy Act of 
     1954 (42 U.S.C. 2011, et seq.).
       ``(i) Storage of Other Spent Nuclear Fuel and High-Level 
     Radioactive Waste.--No later than 18 months following the 
     date of enactment of the Nuclear Waste Policy Act of 1996, 
     the Commission shall, by rule, establish criteria for the 
     storage in the interim storage facility of fuel and waste 
     listed in paragraph (e)(3)(A) through (C), to the extent such 
     criteria are not included in regulations issued by the 
     Commission and existing on the date of enactment of the 
     Nuclear Waste Policy Act of 1996. Following establishment of 
     such criteria, the Secretary shall

[[Page S10483]]

     seek authority, as necessary, to store fuel and waste listed 
     in paragraph (e)(3)(A) through (C) at the interim storage 
     facility. None of the activities carried out pursuant to this 
     paragraph shall delay, or otherwise affect, the development, 
     construction, licensing, or operation of the interim storage 
     facility.
       ``(j) Savings Clause.--The Commission shall, by rule, 
     establish procedures for the licensing of any technology for 
     the dry storage of spent nuclear fuel by rule and without, to 
     the maximum extent possible, the need for site-specific 
     approvals by the Commission. Nothing in this Act shall affect 
     any such procedures, or any licenses or approvals issued 
     pursuant to such procedures in effect on the date of 
     enactment.

     ``SEC. 205. PERMANENT REPOSITORY.

       ``(a) Repository Characterization.--
       ``(1) Guidelines.--The guidelines promulgated by the 
     Secretary and published at 10 CFR part 960 are annulled and 
     revoked and the Secretary shall make no assumptions or 
     conclusions about the licensability of the Yucca Mountain 
     site as a repository by reference to such guidelines.
       ``(2) Site characterization activities.--The Secretary 
     shall carry out appropriate site characterization activities 
     at the Yucca Mountain site in accordance with the Secretary's 
     program approach to site characterization. The Secretary 
     shall modify or eliminate those site characterization 
     activities designed only to demonstrate the suitability of 
     the site under the guidelines referenced in paragraph (1).
       ``(3) Schedule date.--Consistent with the schedule set 
     forth in the program approach, as modified to be consistent 
     with the Nuclear Waste Policy Act of 1996, no later than 
     February 1, 2002, the Secretary shall apply to the Commission 
     for authorization to construct a repository. If, at any time 
     prior to the filing of such application, the Secretary 
     determines that the Yucca Mountain site cannot satisfy the 
     Commission's regulations applicable to the licensing of a 
     geologic repository, the Secretary shall terminate site 
     characterization activities at the site, notify Congress and 
     the State of Nevada of the Secretary's determination and the 
     reasons therefor, and recommend to Congress not later than 6 
     months after such determination further actions, including 
     the enactment of legislation, that may be needed to manage 
     the Nation's spent nuclear fuel and high-level radioactive 
     waste.
       ``(4) Maximizing capacity.--In developing an application 
     for authorization to construct the repository, the Secretary 
     shall seek to maximize the capacity of the repository, in the 
     most cost-effective manner, consistent with the need for 
     disposal capacity.
       ``(b) Repository Licensing.--Upon the completion of any 
     licensing proceeding for the first phase of the interim 
     storage facility, the Commission shall amend its regulations 
     governing the disposal of spent nuclear fuel and high-level 
     radioactive waste in geologic repositories to the 
     extent necessary to comply with this Act. Subject to 
     subsection (c), such regulations shall provide for the 
     licensing of the repository according to the following 
     procedures:
       ``(1) Construction authorization.--The Commission shall 
     grant the Secretary a construction authorization for the 
     repository upon determining that there is reasonable 
     assurance that spent nuclear fuel and high-level radioactive 
     waste can be disposed of in the respository--
       ``(A) in conformity with the Secretary's application, the 
     provisions of this Act, and the regulations of the 
     Commission;
       ``(B) without unreasonable risk to the health and safety of 
     the public; and
       ``(C) consistent with the common defense and security.
       ``(2) License.--Following substantial completion of 
     construction and the filing of any additional information 
     needed to complete the license application, the Commission 
     shall issue a license to dispose of spent nuclear fuel and 
     high-level radioactive waste in the repository if the 
     Commission determines that the repository has been 
     constructed and will operate--
       ``(A) in conformity with the Secretary's application, the 
     provisions of this Act, and the regulations of the 
     Commission;
       ``(B) without unreasonable risk to the health and safety of 
     the public; and
       ``(C) consistent with the common defense and security.
       ``(3) Closure.--After emplacing spent nuclear fuel and 
     high-level radioactive waste in the repository and collecting 
     sufficient confirmatory data on repository performance to 
     reasonably confirm the basis for repository closure 
     consistent with the Commission's regulations applicable to 
     the licensing of a repository, as modified in accordance with 
     this Act, the Secretary shall apply to the Commission to 
     amend the license to permit permanent closure of the 
     repository. The Commission shall grant such license amendment 
     upon finding that there is reasonable assurance that the 
     repository can permanently closed--
       ``(A) in conformity with the Secretary's application to 
     amend the license, the provisions of this Act, and the 
     regulations of the Commission;
       ``(B) without unreasonable risk to the health and safety of 
     the public; and
       ``(C) consistent with the common defense and security.
       ``(4) Post-Closure.--The Secretary shall take those action 
     necessary and appropriate at the Yucca Mountain site to 
     prevent any activity at the site subsequent to repository 
     closure that poses an unreasonable risk of--
       ``(A) breaching the repository's engineered or geologic 
     barriers; or
       ``(B) increasing the exposure of individual members of the 
     public to radiation beyond the release standard established 
     in subsection (d)(1).
       ``(c) Modification of Repository Licensing Procedure.--The 
     Commission's regulations shall provide for the modification 
     of the repository licensing procedure, as appropriate, in the 
     event that the Secretary seeks a license to permit the 
     emplacement in the repository, on a retrievable basis, of 
     spent nuclear fuel or high-level radioactive waste as is 
     necessary to provide the Secretary with sufficient 
     confirmatory data on repository performance to reasonably 
     confirm the basis for repository closure consistent with 
     applicable regulations.
       ``(d) Repository Licensing Standards.--The Administrator of 
     the Environmental Protection Agency shall, pursuant to 
     authority under other provisions of law, issue generally 
     applicable standards for the protection of the public from 
     releases of radioactive materials or radioactivity from the 
     repository. Such standards shall be consistent with the 
     overall system performance standard established by this 
     subsection unless the Administrator determines by rule that 
     the overall system performance standard would constitute an 
     unreasonable risk to health and safety. The Commission's 
     repository licensing determinations for the protection of the 
     public shall be based solely on a finding whether the 
     repository can be operated in conformance with the overall 
     system performance standard established in paragraph (1), 
     applied in accordance with the provisions of paragraph (2), 
     and the Administrator's radiation protection standards. The 
     Commission shall amend its regulations in accordance with 
     subsection (b) to incorporate each of the following licensing 
     standards;
       ``(1) Establishment of overall system performance 
     standard.--The standard for protection of the public from 
     release of radioactive material or radioactivity from the 
     repository shall prohibit releases that would expose an 
     average member of the general population in the vicinity of 
     the Yucca Mountain site to an annual dose in excess of 100 
     millirens unless the Commission determines by the rule that 
     such standard would constitute an unreasonable risk to health 
     and safety and establishes by rule another standard which 
     will protect health and safety. Such standard shall 
     constitute an overall system performance standard.
       ``(2) Application of overall system performance standard.--
     The Commission shall issue the license if finds reasonable 
     assurance that for the first 1,000 years following the 
     commencement of repository operations, the overall system 
     performance standard will be met based on probabilistic 
     evaluation, as appropriate, of compliance with the overall 
     system performance standard in paragraph (1).
       ``(3) Factors.--For purposes of making the finding in 
     paragraph (2)--
       ``(A) the Commission shall not consider catastrophic events 
     where the health consequences of individual events themselves 
     can be reasonably assumed to exceed the health consequences 
     due to the impact of the events on repository performance;
       ``(B) for the purpose of this section, an average member of 
     the general population in the vicinity of the Yucca Mountain 
     site means a person whose physiology, age, general health, 
     agricultural practice, eating habits, and social behavior 
     represent the average for persons living in the vicinity of 
     the site, Extremes in social behavior, eating habits, or 
     other relevant practices or characteristics shall not be 
     considered; and
       ``(C) the Commission shall assume that, following 
     repository closure, the inclusion of engineered barriers and 
     the Secretary's post-closure actions at the Yucca Mountain 
     site, in accordance with subsection (b)(4), shall be 
     sufficient to--
       ``(i) prevent any human activity at the site that poses an 
     unreasonable risk of breaching the repository's engineered or 
     geologic barriers; and
       ``(ii) prevent any increase in the exposure of individual 
     members of the public to radiation beyond the allowable 
     limits specified in paragraph (1).
       ``(4) Additional analysis.--The Commission shall analyze 
     the overall system performance through the use of 
     probabilistic evaluations that use best estimate assumptions, 
     data, and methods for the period commencing after the first 
     1,000 years of operation of the repository and terminating at 
     10,000 years after the commencement of operation of the 
     repository.
       ``(e) National Environmental Policy Act.--
       ``(1) Submission of Statement.--Construction and operation 
     of the repository shall be considered a major Federal action 
     significantly affecting the quality of the human environment 
     for purposes of the National Environmental Policy Act of 1969 
     (42 U.S.C. 4321 et seq.). The Secretary shall submit an 
     environmental impact statement on the construction and 
     operation of the repository to the Commission with the 
     license application and shall supplement such environmental 
     impact statement as appropriate.
       ``(2) Considerations.--For purposes of complying with the 
     requirements of the National Environmental Policy Act of 1969 
     and this section, the Secretary shall not consider in the 
     environmental impact statement the

[[Page S10484]]

     need for the repository, or alternative sites or designs for 
     the repository.
       ``(3) Adoption by commission.--The Secretary's 
     environmental impact statement and any supplements thereto 
     shall, to the extent practicable, be adopted to the 
     Commission in connection with the issuance by the Commission 
     of a construction authorization under subsection (b)(1), a 
     license under subsection (b)(2), or a license amendment under 
     subsection (b)(3). To the extent such statement or supplement 
     is adopted by the Commission, such adoption shall be deemed 
     to also satisfy the responsibilities of the Commission under 
     the National Environmental Policy Act of 1969, and no further 
     consideration shall be required, except that nothing in this 
     subsection shall affect any independent responsibilities of 
     the Commission to protect the public health and safety under 
     the Atomic Energy Act of 1954. In any such statement or 
     supplement prepared with respect to the repository, the 
     Commission shall not consider the need for a repository, or 
     alternate sites or designs for the repository.
       ``(f) Judicial Review.--No court shall have jurisdiction to 
     enjoin issuance of the Commission repository licensing 
     regulations prior to its final decision on review of such 
     regulations.

     ``SEC. 206. LAND WITHDRAWAL.

       ``(a) Withdrawal and Reservation.--
       ``(1) Withdrawal.--Subject to valid existing rights, the 
     interim storage facility site and the Yucca Mountain site, as 
     described in subsection (b), are withdrawn from all forms of 
     entry, appropriation, and disposal under the public land 
     laws, including the mineral leasing laws, the geothermal 
     leasing laws, the material sale laws, and the mining laws.
       ``(2) Jurisdiction.--Jurisdiction of any land within the 
     interim storage facility site and the Yucca Mountain site 
     managed by the Secretary of the Interior or any other Federal 
     officer is transferred to the Secretary.
       ``(3) Reservation.--The interim storage facility site and 
     the Yucca Mountain site are reserved for the use of the 
     Secretary for the construction and operation, respectively, 
     of the interim storage facility and the repository and 
     activities associated with the purposes of this title.
       ``(b) Land Description.--
       ``(1) Boundaries.--The boundaries depicted on the map 
     entitled ``Interim Storage Facility Site Withdrawal Map,'' 
     dated March 13, 1996, and on file with the Secretary, are 
     established as the boundaries of the Interim Storage Facility 
     site.
       ``(2) Boundaries.--The boundaries depicted on the map 
     entitled `Yucca Mountain Site Withdrawal Map,' dated July 9, 
     1996, and on file with the Secretary, are established as the 
     boundaries of the Yucca Mountain site.
       ``(3) Notice and maps.--Within 6 months of the date of the 
     enactment of the Nuclear Waste Policy Act of 1996, the 
     Secretary shall--
       ``(A) publish in the Federal Register a notice containing a 
     legal description of the interim storage facility site; and
       ``(B) file copies of the maps described in paragraph (1), 
     and the legal description of the interim storage facility 
     site with the Congress, the Secretary of the Interior, the 
     Governor of Nevada, and the Archivist of the United States.
       ``(4) Notice and maps.--Concurrent with the Secretary's 
     application to the Commission for authority to construct the 
     repository, the Secretary shall--
       ``(A) publish in the Federal Register a notice containing a 
     legal description of the Yucca Mountain site; and
       ``(B) file copies of the maps described in paragraph (2), 
     and the legal description of the Yucca Mountain site with the 
     Congress, the Secretary of the Interior, the Governor of 
     Nevada, and the Archivist of the United States.
       ``(5) Construction.--The maps and legal descriptions of the 
     interim storage facility site and the Yucca Mountain site 
     referred to in this subsection shall have the same force and 
     effect as if they were included in this Act. The Secretary 
     may correct clerical and typographical errors in the maps and 
     legal descriptions and make minor adjustments in the 
     boundaries of the sites.

                      ``TITLE III--LOCAL RELATIONS

     ``SEC 301. FINANCIAL ASSISTANCE.

       ``(a) Grants.--The Secretary is authorized to make grants 
     to any affected Indian tribe or affected unit of local 
     government for purposes of enabling the affected Indian tribe 
     or affected unit of local government--
       ``(1) to review activities taken with respect to the Yucca 
     Mountain site for purposes of determining any potential 
     economic, social, public health and safety, and environmental 
     impacts of the integrated management system on the affected 
     Indian tribe or the affected unit of local government and its 
     residents;
       ``(2) to develop a request for impact assistance under 
     subsection (c);
       ``(3) to engage in any monitoring, testing, or evaluation 
     activities with regard to such site;
       ``(4) to provide information to residents regarding any 
     activities of the Secretary, or the Commission with respect 
     to such site; and
       `(5) to request information from, and make comments and 
     recommendations to, the Secretary regarding any activities 
     taken with respect to such site.
       ``(b) Salary and Travel Expenses.--Any salary or travel 
     expense that would ordinarily be incurred by any affected 
     Indian tribe or affected unit of local government may not be 
     considered eligible for funding under this section.
       ``(c) Financial and Technical Assistance.--
       ``(1) Assistance requests.--The Secretary is authorized to 
     offer to provide financial and technical assistance to any 
     affected Indian tribe or affected unit of local government 
     requesting such assistance. Such assistance shall be designed 
     to mitigate the impact on the affected Indian tribe or 
     affected unit of local government of the development of the 
     integrated management system.
       ``(2) Report.--Any affected Indian tribe or affected unit 
     of local government may request assistance under this section 
     by preparing and submitting to the Secretary a report on the 
     economic, social, public health and safety, and environmental 
     impacts that are likely to result from activities of the 
     integrated management system.
       ``(d) Other Assistance.--
       ``(1) Taxable amounts.--In addition to financial assistance 
     provided under this subsection, the Secretary is authorized 
     to grants to any affected Indian tribe or affected unit of 
     local government an amount each fiscal year equal to the 
     amounts such affected Indian tribe or affected unit of local 
     government, respectively, would receive if authorized to tax 
     integrated management system activities, as such affected 
     Indian tribe or affected unit of local government taxes the 
     non-Federal real property and industrial activities occurring 
     within such affected unit of local government.
       ``(2) Termination.--Such grants shall continue until such 
     time as all such activities, development, and operations are 
     terminated at such site.
       ``(3) Assistance to Indian tribes and units of local 
     government.--
       ``(A) Period.--Any affected Indian tribe or affected unit 
     of local government may not receive any grant under paragraph 
     (1) after the expiration of the 1-year period following the 
     date on which the Secretary notifies the affected Indian 
     tribe or affected unit of local government of the termination 
     of the operation of the integrated management system.
       ``(B) Activities.--Any affected Indian tribe or affected 
     unit of local government may not receive any further 
     assistance under this section if the integrated management 
     system activities at such site are terminated by the 
     Secretary or if such activities are permanently enjoined by 
     any court.

     SEC. 302. ON-SITE REPRESENTATIVE

       ``The Secretary shall offer to the unit of local government 
     within whose jurisdiction a site for an interim storage 
     facility or repository is located under this Act an 
     opportunity to designate a representative to conduct onsite 
     oversight activities at such site. The Secretary is 
     authorized to pay the reasonable expenses of such 
     representative.

     SEC. 303. ACCEPTANCE OF BENEFITS.

       ``(a) Consent.--The acceptance or use of any of the 
     benefits provided under this title by any affected Indian 
     tribe or affected unit of local government shall not be 
     deemed to be an expression of consent, express, or implied, 
     either under the Constitution of the State or any law 
     thereof, to the siting of an interim storage facility or 
     repository in the State of Nevada, any provision of such 
     Constitution or laws to the contrary notwithstanding.
       ``(b) Arguments.--Neither the United States nor any other 
     entity may assert any argument based on legal or equitable 
     estoppel, or acquiescence, or waiver, or consensual 
     involvement, in response to any decision by the State to 
     oppose the siting in Nevada of an interim storage facility or 
     repository premised upon or related to the acceptance or use 
     of benefits under this title.
       ``(c) Liability.--No liability of any nature shall accrue 
     to be asserted against any official of any governmental unit 
     of Nevada premised solely upon the acceptance or use of 
     benefits under this title.

     SEC. 304. RESTRICTIONS ON USE OF FUNDS.

       ``None of the funding provided under this title may be 
     used--
       ``(1) directly or indirectly to influence legislative 
     action on any matter pending before Congress or a State 
     legislature or for any lobbying activity as provided in 
     section 1913 of title 18, United States Code;
       ``(2) for litigation purposes; and
       ``(3) to support multistate efforts or other coalition-
     building activities inconsistent with the purposes of this 
     Act.

     SEC. 305. LAND CONVEYANCES.

       ``(a) Conveyances of Public Lands.--One hundred and twenty 
     days after enactment of this Act, all right, title and 
     interest of the United States in the property described in 
     subsection (b), and improvements thereon, together with all 
     necessary easements for utilities and ingress and egress to 
     such property, including, but not limited to, the right to 
     improve those easements, are conveyed by operation of law to 
     the County of Nye, Nevada, unless the county notifies the 
     Secretary of Interior or the head of such other appropriate 
     agency in writing within 60 days of such date of enactment 
     that it elects not to take title to all or any part of the 
     property, except that any lands conveyed to the County of Nye 
     under this subsection that are subject to a Federal grazing 
     permit or lease or a similar federally granted permit or 
     lease shall be conveyed between 60 and 120 days of the 
     earliest time the Federal agency administering or granting 
     the permit or lease would be able to legally terminate 
     such right under the statutes and regulations existing

[[Page S10485]]

     at the date of enactment of this Act, unless Nye County 
     and the affected holder of the permit or lease negotiate 
     an agreement that allows for an earlier conveyance.
       ``(b) Special Conveyances.--Notwithstanding any other law, 
     the following public lands depicted on the maps and legal 
     descriptions dated October 11, 1995, and on file with the 
     Secretary shall be conveyed under subsection (a) to the 
     County of Nye, Nevada:
       Map 1: Proposed Pahrump Industrial Park Site
       Map 2: Proposed Lathrop Wells (Gate 510) Industrial Park 
     Site
       Map 3: Pahrump Landfill Sites
       Map 4: Amargosa Valley Regional Landfill Site
       Map 5: Amargosa Valley Municipal Landfill Site
       Map 6: Beatty Landfill/Transfer Station Site
       Map 7: Round Mountain Landfill Site
       Map 8: Tonopah Landfill Site
       Map 9: Gabbs Landfill Site.
       ``(3) Construction.--The maps and legal descriptions of 
     special conveyances referred to in subsection (b) shall have 
     the same force and effect as if they were included in this 
     Act. The Secretary may correct clerical and typographical 
     errors in the maps and legal descriptions and make minor 
     adjustments in the boundaries of the sites.
       ``(4) Evidence of Title Transfer.--Upon the request of the 
     County of Nye, Nevada, the Secretary of the Interior shall 
     provide evidence of title transfer.

                  ``TITLE IV--FUNDING AND ORGANIZATION

     ``SEC. 401. PROGRAM FUNDING.

       ``(a) Contracts.--
       ``(1) Authority of secretary.--In the performance of the 
     Secretary's functions under this Act, the Secretary is 
     authorized to enter into contracts with any person who 
     generates or holds title to spent nuclear fuel or high level 
     radioactive waste of domestic origin for the acceptance of 
     title and possession, transportation, interim storage, and 
     disposal of such waste or spent fuel. Such contracts shall 
     provide for payment of annual fees to the Secretary in the 
     amounts set by the Secretary pursuant to paragraphs (2) and 
     (3). Except as provided in paragraph (3), fees assessed 
     pursuant to this paragraph shall be paid to the Treasury of 
     the United States and shall be available for use by the 
     Secretary pursuant to this section until expended. Subsequent 
     to the date of enactment of the Nuclear Waste Policy Act of 
     1996, the contracts executed under section 302(a) of the 
     Nuclear Waste Policy Act of 1982 shall continue in effect 
     under this Act, provided that the Secretary shall consent to 
     an amendment to such contracts as necessary to implement the 
     provisions of this Act.
       ``(2) Annual fees.--
       ``(A) For electricity generated by civilian nuclear power 
     reactors and sold between January 7, 1983, and September 30, 
     2002, the fee under paragraph (1) shall be equal to 1.0 mill 
     per kilowatt hour generated and sold. For electricity 
     generated by civilian nuclear power reactors and sold on or 
     after October 1, 2002, the aggregate amount of fees collected 
     during each fiscal year shall be no greater than the annual 
     level of appropriations for expenditures on those activities 
     consistent with subsection (d) for that fiscal year, minus--
       ``(i) any unobligated balance collected pursuant to this 
     section during the previous fiscal year; and
       ``(ii) the percentage of such appropriation required to be 
     funded by the Federal Government pursuant to section 403.

     The Secretary shall determine the level of the annual fee for 
     each civilian nuclear power reactor based on the amount of 
     electricity generated and sold, except that the annual fee 
     collected under this subparagraph shall not exceed 1.0 mill 
     per kilowatt-hour generated and sold.
       ``(B) Expenditures if shortfall.--If, during any fiscal 
     year on or after October 1, 2002, the aggregate amount of 
     fees assessed pursuant to subparagraph (A) is less than the 
     annual level of appropriations for expenditures on those 
     activities specified in subsection (d) for that fiscal year, 
     minus--
       ``(i) any unobligated balance collected pursuant to this 
     section during the previous fiscal year; and
       ``(ii) the percentage of such appropriations required to be 
     funded by the Federal Government pursuant to section 403,

     the Secretary may make expenditures from the Nuclear Waste 
     Fund up to the level of the fees assessed.
       ``(C) Rules.--The Secretary shall, by rule, establish 
     procedures necessary to implement this paragraph.
       ``(3) One-time fee.--For spent nuclear fuel or solidified 
     high-level radioactive waste derived from spent nuclear fuel, 
     which fuel was used to generate electricity in a civilian 
     nuclear power reactor prior to January 7, 1983, the fee shall 
     be in an amount equivalent to an average charge of 1.0 mill 
     per kilowatt-hour for electricity generated by such spent 
     nuclear fuel, or such solidified high-level waste derived 
     therefrom. Payment of such one-time fee prior to the date of 
     enactment of the Nuclear Waste Policy Act of 1996 shall 
     satisfy the obligation imposed under this paragraph. Any one-
     time fee paid and collected subsequent to the date of 
     enactment of the Nuclear Waste Policy Act of 1996 pursuant to 
     the contracts, including any interest due pursuant to such 
     contracts, shall be paid to the Nuclear Waste Fund no later 
     than September 30, 2002. The Commission shall suspend the 
     license of any licensee who fails or refuses to pay the full 
     amount of the fee referred to in this paragraph on or before 
     September 30, 2002, and the license shall remain suspended 
     until the full amount of the fee referred to in this 
     paragraph is paid. The person paying the fee under this 
     paragraph to the Secretary shall have no further financial 
     obligation to the Federal Government for the long-term 
     storage and permanent disposal of spent fuel or high-level 
     radioactive waste derived from spent nuclear fuel used to 
     generate electricity in a civilian power reactor prior to 
     January 7, 1983.
       ``(4) Adjustments to fee.--The Secretary shall annually 
     review the amount of the fees established by paragraphs (2) 
     and (3), together with the existing balance of the Nuclear 
     Waste Fund on the date of enactment of the Nuclear Waste 
     Policy Act of 1996, to evaluate whether collection of the fee 
     will provide sufficient revenues to offset the costs as 
     defined in subsection (c)(2). In the event the Secretary 
     determines that the revenues being collected are either 
     insufficient or excessive to recover the costs incurred by 
     the Federal Government that are specified in subsection 
     (c)(2), the Secretary shall propose an adjustment to the fee 
     in subsection (c)(2) to ensure full costs recovery. The 
     Secretary shall immediately transmit the proposal for such an 
     adjustment to both houses of Congress.
       ``(b) Advance Contracting Requirement.--
       ``(1) In general.--
       ``(A) License issuance and renewal.--The Commission shall 
     not issue or renew a license to any person to use a 
     utilization or production facility under the authority of 
     section 103 or 104 of the Atomic Energy Act of 1954 (42 
     U.S.C. 2133, 2134) unless--
       ``(i) such person has entered into a contract under 
     subsection (a) with the Secretary; or
       ``(ii) the Secretary affirms in writing that such person is 
     actively and in good faith negotiating with the Secretary for 
     a contract under this section.
       ``(B) Precondition.--The Commission, as it deems necessary 
     or appropriate, may require as a precondition to the issuance 
     or renewal of a license under section 103 or 104 of the 
     Atomic Energy Act of 1954 (42 U.S.C. 2133, 2134) that the 
     applicant for such license shall have entered into an 
     agreement with the Secretary for the disposal of spent 
     nuclear fuel and high-level radioactive waste that may result 
     from the use of such license.
       ``(2) Disposal in repository.--Except as provided in 
     paragraph (1), no spent nuclear fuel or high-level 
     radioactive waste generated or owned by any person (other 
     than a department of the United States referred to in section 
     101 or 102 of title 5, United States Code) may be disposed of 
     by the Secretary in the repository unless the generator or 
     owner of such spent fuel or waste has entered into a contract 
     under subsection (a) with the Secretary by not later than the 
     date on which such generator or owner commences generation 
     of, or takes title to, such spent fuel or waste.
       ``(3) Assignment.--The rights and duties of contract 
     holders are assignable.
       ``(c) Nuclear Waste Fund.--
       ``(1) In general.--The Nuclear Waste Fund established in 
     the Treasury of the United States under section 302(c) of the 
     Nuclear Waste Policy Act of 1982 shall continue in effect 
     under this Act and shall consist of--
       ``(A) the existing balance in the Nuclear Waste Fund on the 
     date of enactment of the Nuclear Waste Policy Act of 1996; 
     and
       ``(B) all receipts, proceeds, and recoveries realized under 
     subsections (a), and (c)(3) subsequent to the date of 
     enactment of the Nuclear Waste Policy of 1996, which shall be 
     deposited in the Nuclear Waste Fund immediately upon their 
     realization.
       ``(2) Use.--The Secretary may make expenditures from the 
     Nuclear Waste Fund, subject to subsections (d) and (e), only 
     for purposes of the integrated management system.
       ``(3) Administration of nuclear waste fund.--
       (A) In general.--The Secretary of the Treasury shall hold 
     the Nuclear Waste Fund and, after consultation with the 
     Secretary, annually report to the Congress on the financial 
     condition and operations of the Nuclear Waste Fund during the 
     preceding fiscal year.
       ``(B) Amounts in excess of current needs.--If the Secretary 
     determines that the Nuclear Waste Fund contains at any time 
     amounts in excess of current needs, the Secretary may request 
     the Secretary of the Treasury to invest such amounts, or any 
     portion of such amounts as the Secretary determines to be 
     appropriate, in obligations of the United States--
       ``(i) having maturities determined by the Secretary of the 
     Treasury to be appropriate to the needs of the Nuclear Waste 
     Fund; and
       ``(ii) bearing interest at rates determined to be 
     appropriate by the Secretary of the Treasury, taking into 
     consideration the current average market yield on outstanding 
     marketable obligations of the United States with remaining 
     periods to maturity comparable to the maturities of such 
     investments, except that the interest rate on such investment 
     shall not exceed the average interest rate applicable to 
     existing borrowings.
       ``(C) Exemption.--Receipts, proceeds, and recoveries 
     realized by the Secretary under this section, and 
     expenditures of amounts from the Nuclear Waste Fund, shall be 
     exempt from annual apportionment under the provisions of 
     subchapter II of chapter 15 of title 31, United States Code.
       ``(d) Budget.--The Secretary shall submit the budget for 
     implementation of the Secretary's responsibilities under this 
     Act to

[[Page S10486]]

     the Office of Management and Budget annually along with the 
     budget of the Department of Energy submitted at such time in 
     accordance with chapter 11 of title 31, United States Code. 
     The budget shall consist of the estimates made by the 
     Secretary of expenditures under this Act and other relevant 
     financial matters for the succeeding 3 fiscal years, and 
     shall be included in the budget of the United States 
     Government.
       ``(e) Appropriations.--The Secretary may make expenditures 
     from the Nuclear Waste Fund, subject to appropriations, which 
     shall remain available until expended.

     ``SEC. 402. OFFICE OF CIVILIAN RADIOACTIVE WASTE MANAGEMENT.

       ``(a) Establishment.--There hereby is established within 
     the Department of Energy an Office of Civilian Radioactive 
     Waste Management. The Office shall be headed by a Director, 
     who shall be appointed by the President, by and with the 
     advice and consent of the Senate, and who shall be 
     compensated at the rate payable for level IV of the Executive 
     Schedule under section 5315 of title 5, United States Code.
       ``(b) Functions of Director.--The Director of the Office 
     shall be responsible for carrying out the functions of the 
     Secretary under this Act, subject to the general supervision 
     of the Secretary. The Director of the Office shall be 
     directly responsible to the Secretary.

     ``SEC. 403. FEDERAL CONTRIBUTION.

       ``(a) Allocation.--No later than one year from the date of 
     enactment of the Nuclear Waste Policy Act of 1996, acting 
     pursuant to section 553 of title 5, United States Code, the 
     Secretary shall issue a final rule establishing the 
     appropriate portion of the costs of managing spent nuclear 
     fuel and high-level radioactive waste under this Act 
     allocable to the interim storage or permanent disposal of 
     spent nuclear fuel and high-level radioactive waste from 
     atomic energy defense activities and spent nuclear fuel from 
     foreign research reactors. The share of costs allocable to 
     the management of spent nuclear fuel and high-level 
     radioactive waste from atomic energy defense activities and 
     spent nuclear fuel from foreign research reactors shall 
     include,
       ``(1) an appropriate portion of the costs associated with 
     research and development activities with respect to 
     development of an interim storage facility and repository; 
     and
       ``(2) as appropriate, interest on the principal amounts due 
     calculated by reference to the appropriate Treasury bill rate 
     as if the payments were made at a point in time consistent 
     with the payment dates for spent nuclear fuel and high-level 
     radioactive waste under the contracts.
       ``(b) Appropriation Request.--In addition to any request 
     for an appropriation from the Nuclear Waste Fund, the 
     Secretary shall request annual appropriations from general 
     revenues in amounts sufficient to pay the costs of the 
     management of spent nuclear fuel and high-level radioactive 
     waste from atomic energy defense activities and spent nuclear 
     fuel from foreign research reactors, as established under 
     subsection (a).
       ``(c) Report.--In conjunction with the annual report 
     submitted to Congress under Section 702, the Secretary shall 
     advise the Congress annually of the amount of spent nuclear 
     fuel and high-level radioactive waste from atomic energy 
     defense activities and spent nuclear fuel from foreign 
     research reactors, requiring management in the integrated 
     management system.
       ``(d) Authorization.--There is authorized to be 
     appropriated to the Secretary, from general revenues, for 
     carrying out the purposes of this Act, such sums as may be 
     necessary to pay the costs of management of spent nuclear 
     fuel and high-level radioactive waste from atomic 
     energy defense activities and spent nuclear fuel from 
     foreign research rectors, as established under subsection 
     (a).

            ``TITLE V--GENERAL AND MISCELLANEOUS PROVISIONS

     ``SEC. 501. COMPLIANCE WITH OTHER LAWS.

       ``If the requirements of any Federal, State, or local law 
     (including a requirement imposed by regulation or by any 
     other means under such a law) are inconsistent with or 
     duplicative of the requirements of the Atomic Energy Act (42 
     U.S.C. 2011 et seq.) or of this Act, the Secretary shall 
     comply only with the requirements of the Atomic Energy Act 
     and this Act in implementing the integrated management 
     system.

     ``SEC. 502. JUDICIAL REVIEW OF AGENCY ACTIONS.

       ``(a) Jurisdiction of the United States Courts of 
     Appeals.--
       ``(1) Original and exclusive jurisdiction.--Except for 
     review in the Supreme Court of the United States, and except 
     as otherwise provided in this Act, the United States courts 
     of appeals shall have original and exclusive jurisdiction 
     over any civil action--
       ``(A) for review of any final decision or action of the 
     Secretary, the President, or the Commission under this Act;
       ``(B) alleging the failure of the Secretary, the President, 
     or the Commission to make any decision, or take any action, 
     required under this Act;
       ``(C) challenging the constitutionality of any decision 
     made, or action taken, under any provision of this Act; or
       ``(D) for review of any environmental impact statement 
     prepared or environmental assessment pursuant to the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) 
     with respect to any action under this Act or alleging a 
     failure to prepare such statement with respect to any such 
     action.
       ``(2) Venue.--The venue of any proceeding under this 
     section shall be in the judicial circuit in which the 
     petitioner involved resides or has its principal office, or 
     in the United States Court of Appeals for the District of 
     Columbia Circuit.
       ``(b) Deadline for Commencing Action.--A civil action for 
     judicial review described under subsection (a)(1) may be 
     brought no later than 180 days after the date of the decision 
     or action or failure to act involved, as the case may be, 
     except that if a party shows that he did not know of the 
     decision or action complained of (or of the failure to act), 
     and that a reasonable person acting under the circumstances 
     would not have known, such party may bring a civil action no 
     later than 180 days after the date such party acquired actual 
     or constructive knowledge or such decision, action, or 
     failure to act.
       ``(c) Application of Other Law.--The provisions of this 
     section relating to any matter shall apply in lieu of the 
     provisions of any other Act relating to the same matter.

     ``SEC. 503. LICENSING OF FACILITY EXPANSIONS AND 
                   TRANSSHIPMENTS.

       ``(a) Oral Argument.--In any Commission hearing under 
     section 189 of the Atomic Energy Act of 1954 (42 U.S.C. 2239) 
     on an application for a license, or for an amendment to an 
     existing license, filed after January 7, 1983, to expand the 
     spent nuclear storage capacity at the site of a civilian 
     nuclear power reactor, through the use of high-density fuel 
     storage racks, fuel rod compaction, the transshipment of 
     spent nuclear fuel to another civilian nuclear power reactor 
     within the same utility system, the construction of 
     additional spent nuclear fuel pool capacity or dry storage 
     capacity, or by other means, the Commission shall, at the 
     request of any party, provide an opportunity for oral 
     argument with respect to any matter which the Commission 
     determines to be in controversy among the parties. The oral 
     argument shall be preceded by such discovery procedures as 
     the rules of the Commission shall provide. The Commission 
     shall require each party, including the Commission staff, to 
     submit in written form, at the time of the oral argument, 
     a summary of the facts, data, and arguments upon which 
     such party proposes to rely that are known at such time to 
     such party. Only facts and data in the form of sworn 
     testimony or written submission may be relied upon by the 
     parties during oral argument. Of the materials that may be 
     submitted by the parties during oral argument, the 
     Commission shall only consider those facts and data that 
     are submitted in the form of sworn testimony or written 
     submission.
       ``(b) Adjudicatory Hearing.--
       ``(1) Designation.--At the conclusion of any oral argument 
     under subsection (a), the Commission shall designate any 
     disputed question of fact, together with any remaining 
     questions of law, for resolution in an adjudicatory hearing 
     only if it determines that--
       ``(A) there is a genuine and substantial dispute of fact 
     which can only be resolved with sufficient accuracy by the 
     introduction of evidence in an adjudicatory hearing; and
       ``(B) the decision of the Commission is likely to depend in 
     whole or in part on the resolution of such dispute.
       ``(2) Determination.--In making a determination under this 
     subsection, the Commission--
       ``(A) shall designate in writing the specific facts that 
     are in genuine and substantial dispute, the reason why the 
     decision of the agency is likely to depend on the resolution 
     of such facts, and the reason why an adjudicatory hearing is 
     likely to resolve the dispute; and
       ``(B) shall not consider--
       ``(i) any issue relating to the design, construction, or 
     operation of any civilian nuclear power reactor already 
     licensed to operate at such site, or any civilian nuclear 
     power reactor to which a construction permit has been granted 
     at such site, unless the Commission determines that any such 
     issue substantially affects the design, construction, or 
     operation of the facility or activity for which such license 
     application, authorization, or amendment is being considered; 
     or
       ``(ii) any siting or design issue fully considered and 
     decided by the Commission in connection with the issuance of 
     a construction permit or operating license for a civilian 
     nuclear power reactor at such site, unless
       ``(I) such issue results from any revision of siting or 
     design criteria by the Commission following such decision; 
     and
       ``(II) the Commission determines that such issue 
     substantially affects the design, construction, or operation 
     of the facility or activity for which such license 
     application, authorization, or amendment is being considered.
       ``(3) Application.--The provisions of paragraph (2)(B) 
     shall apply only with respect to licenses, authorizations, or 
     amendments to licenses or authorizations, applied for under 
     the Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.) before 
     December 31, 2005.
       ``(4) Construction.--The provisions of this section shall 
     not apply to the first application for a license or license 
     amendment received by the Commission to expand onsite spent 
     fuel storage capacity by the use of a new technology not 
     previously approved for use at any nuclear power plant by the 
     Commission.
       ``(c) Judicial Review.--No court shall hold unlawful or set 
     aside a decision of the Commission in any proceeding 
     described in subsection (a) because of a failure by the 
     Commission to use a particular procedure pursuant to this 
     section unless--

[[Page S10487]]

       ``(1) an objection to the procedure used was presented to 
     the Commission in a timely fashion or there are extraordinary 
     circumstances that excuse the failure to present a timely 
     objection; and
       ``(2) the count finds that such failure has precluded a 
     fair consideration and informed resolution of a significant 
     issue of the proceeding taken as a whole.

     ``SEC. 504. SITING A SECOND REPOSITORY.

       ``(a) Congressional Action Required.--The Secretary may not 
     conduct site-specific activities with respect to a second 
     repository unless Congress has specifically authorized and 
     appropriated funds for such activities.
       ``(b) Report.--The Secretary shall report to the President 
     and to Congress on or after January 1, 2007, but not later 
     than January 1, 2010, on the need for a second repository.

     ``SEC. 505. FINANCIAL ARRANGEMENTS FOR LOW-LEVEL RADIOACTIVE 
                   WASTE SITE CLOSURE.

       ``(a) Financial Arrangements.--
       ``(1) Standards and instructions.--The Commission shall 
     establish by rule, regulation, or order, after public notice, 
     and in accordance with section 181 of the Atomic Energy Act 
     of 1954 (42 U.S.C. 2231), such standards and instructions as 
     the Commission may deem necessary or desirable to ensure in 
     the case of each license for the disposal of low-level 
     radioactive waste that an adequate bond, surety, or other 
     financial arrangement (as determined by the Commission) will 
     be provided by a licensee to permit completion of all 
     requirements established by the Commission for the 
     decontamination, decommissioning, site closure, and 
     reclamation of sites, structures, and equipment used in 
     conjunction with such low-level radioactive waste. Such 
     financial arrangements shall be provided and approved by the 
     Commission, or, in the case of sites within the boundaries of 
     any agreement State under section 274 of the Atomic Energy 
     Act of 1954 (42 U.S.C. 2021), by the appropriate State or 
     State entity, prior to issuance of licenses for low-level 
     radioactive waste disposal or, in the case of licenses in 
     effect on January 7, 1983, prior to termination of such 
     licenses.
       ``(2) Bonding, surety, or other financial arrangements.--If 
     the Commission determines that any long-term maintenance or 
     monitoring, or both, will be necessary at a site described in 
     paragraph (1), the Commission shall ensure before termination 
     of the license involved that the licensee has made available 
     such bonding, surety, or other financial arrangements as may 
     be necessary to ensure that any necessary long-term 
     maintenance or monitoring needed for such site will be 
     carried out by the person having title and custody for such 
     site following license termination.
       ``(b) Title and Custody.--
       ``(1) Authority of secretary.--The Secretary shall have 
     authority to assume title and custody of low-level 
     radioactive waste and the land on which such waste is 
     disposed of, upon request of the owner of such waste and land 
     and following termination of the license issued by the 
     Commission for such disposal, if the Commission determines 
     that--
       ``(A) the requirements of the Commission for site closure, 
     decommissioning, and decontamination have been met by the 
     licensee involved and that such licensee is in compliance 
     with the provisions of subsection (a);
       ``(B) such title and custody will be transferred to the 
     Secretary without cost to the Federal Government; and
       ``(C) Federal ownership and management of such site is 
     necessary or desirable in order to protect the public health 
     and safety, and the environment.
       ``(2) Protection.--If the Secretary assumes title and 
     custody of any such waste and land under this subsection, the 
     Secretary shall maintain such waste and land in a manner that 
     will protect the public health and safety, and the 
     environment.
       ``(c) Special Sites.--If the low-level radioactive waste 
     involved is the result of a licensed activity to recover 
     zirconium, hafnium, and rare earths from source material, the 
     Secretary, upon request of the owner of the site involved, 
     shall assume title and custody of such waste and the land on 
     which it is disposed when such site has been decontaminated 
     and stabilized in accordance with the requirements 
     established by the Commission and when such owner has made 
     adequate financial arrangements approved by the Commission 
     for the long-term maintenance and monitoring of such site.

     ``SEC. 506. NUCLEAR REGULATORY COMMISSION TRAINING 
                   AUTHORIZATION.

       ``The Commission is authorized and directed to promulgate 
     regulations, or other appropriate regulatory guidance, for 
     the training and qualifications of civilian nuclear power 
     plant operators, supervisors, technicians, and other 
     appropriate operating personnel. Such regulations or guidance 
     shall establish simulator training requirements for 
     applicants for civilian nuclear power plant operator licenses 
     and for operator requalification programs; requirements 
     governing Commission administration of requalification 
     examinations; requirements for operating tests at civilian 
     nuclear power plant simulators, and instructional 
     requirements for civilian nuclear power plant licensee 
     personnel training programs.

     ``SEC. 507. EMPLACEMENT SCHEDULE.

       ``(a) The emplacement schedule shall be implemented in 
     accordance with the following:
       ``(1) Emplacement priority ranking shall be determined by 
     the Department's annual `Acceptance Priority Ranking' report.
       ``(2) The Secretary's spent fuel emplacement rate shall be 
     no less than the following: 1,200 MTU in fiscal year 2000 and 
     1,200 MTU in fiscal year 2001; 2,000 MTU in fiscal year 2002 
     and 2000 MTU in fiscal year 2003; 2,700 MTU in fiscal year 
     2004; and 3,000 MTU annually thereafter.
       ``(b) If the Secretary is unable to begin emplacement by 
     November 30, 1999 at the rates specified in subsection (a), 
     or if the cumulative amount emplaced in any year thereafter 
     is less than that which would have been accepted under the 
     emplacement rate specified in subsection (a), the Secretary 
     shall, as a mitigation measure, adjust the emplacement 
     schedule upward such that within 5 years of the start of 
     emplacement by the Secretary,
       ``(1) the total quantity accepted by the Secretary is 
     consistent with the total quantity that the Secretary would 
     have accepted if the Secretary had began emplacement in 
     fiscal year 2000, and
       ``(2) thereafter the emplacement rate is equivalent to the 
     rate that would be in place pursuant to paragraph (a) above 
     if the Secretary had commenced emplacement in fiscal year 
     2000.

     ``SEC. 508. TRANSFER OF TITLE.

       ``(a) Acceptance by the Secretary of any spent nuclear fuel 
     or high-level radioactive waste shall constitute a transfer 
     of title to the Secretary.
       ``(b) No later than 6 months following the date of 
     enactment of the Nuclear Waste Policy Act of 1996, the 
     Secretary is authorized to accept all spent nuclear fuel 
     withdrawn from Dairyland Power Cooperative's La Crosse 
     Reactor and, upon acceptance, shall provide Dairyland Power 
     Cooperative with evidence of the title transfer. Immediately 
     upon the Secretary's acceptance of such spent nuclear fuel, 
     the Secretary shall assume all responsibility and liability 
     for the interim storage and permanent disposal thereof and is 
     authorized to compensate Dairyland Power Cooperative for any 
     costs related to operating and maintaining facilities 
     necessary for such storage from the date of acceptance until 
     the Secretary removes the spent nuclear fuel from the La 
     Crosse Reactor site.

     ``SEC. 509. DECOMMISSIONING PILOT PROGRAM.

       ``(a) Authorization.--The Secretary is authorized to 
     establish a Decommissioning Pilot Program to decommission and 
     decontaminate the sodium-cooled fast breeder experimental 
     test-site reactor located in northwest Arkansas.
       ``(b) Funding.--No funds from the Nuclear Waste Fund may be 
     used for the Decommissioning Pilot Program.

     ``SEC. 510. WATER RIGHTS.

       ``(a) No Federal Reservation.--Nothing in this Act or any 
     other Act of Congress shall constitute or be construed either 
     an express or implied Federal reservation of water or water 
     rights for any purpose arising under this Act.
       ``(b) Acquisition and Exercise of Water Rights Under Nevada 
     Law.--The United States may acquire and exercise such water 
     rights as it deems necessary to carry out its 
     responsibilities under this Act pursuant to the substantive 
     and procedural requirements of the State of Nevada. Nothing 
     in this Act shall be construed to authorize the use of 
     eminent domain by the United States to acquire water rights 
     for such lands.
       ``(c) Exercise of Water Rights Generally Under Nevada 
     Laws.--Nothing in this Act shall be construed to limit the 
     exercise of water rights as provided under Nevada State laws.

            ``TITLE VI--NUCLEAR WASTE TECHNICAL REVIEW BOARD

     ``SEC. 601. DEFINITIONS.

       ``For purposes of this title--
       ``(1) Chairman.--The term ``Chairman'' means the Chairman 
     of the Nuclear Waste Technical Review Board
       ``(2) Board.--The term ``Board'' means the Nuclear Waste 
     Technical Review Board continued under section 602.

     ``SEC. 602. NUCLEAR WASTE TECHNICAL REVIEW BOARD.

       ``(a) Continuation of the Nuclear Waste Technical Review 
     Board.--The Nuclear Waste Technical Review Board, established 
     under section 502(a) of the Nuclear Waste Policy Act of 1982 
     as constituted prior to the date of enactment of the Nuclear 
     Waste Policy Act of 1996, shall continue in effect subsequent 
     to the date of enactment of the Nuclear Waste Policy Act of 
     1996.
       ``(b) Members.--
       ``(1) Number.--The Board shall consist of 11 members who 
     shall be appointed by the President not later than 90 days 
     after December 22, 1987, from among persons nominated by the 
     National Academy of Sciences in accordance with paragraph 
     (3).
       ``(2) Chair.--The President shall designate a member of the 
     Board to serve as Chairman.
       ``(3) National academy of sciences.--
       ``(A) Nominations.--The National Academy of Sciences shall, 
     not later than 90 days after December 22, 1987, nominate no 
     less than 22 persons for appointment to the Board from among 
     persons who meet the qualifications described in subparagraph 
     (C).
       ``(B) Vacancies.--The National Academy of Sciences shall 
     nominate not less than 2 persons to fill any vacancy on the 
     Board from among persons who meet the qualifications 
     described in subparagraph (C).
       ``(C) Nominees.--
       ``(i) Each person nominated for appointment to the Board 
     shall be--

[[Page S10488]]

       ``(I) eminent in a field of science or engineering, 
     including environmental sciences; and
       ``(II) selected solely on the basis of established records 
     of distinguished service.
       ``(ii) The membership of the Board shall be representatives 
     of the broad range of scientific and engineering disciplines 
     related to activities under this title.
       ``(iii) No person shall be nominated for appointment to the 
     Board who is an employee of--
       ``(I) the Department of Energy;
       ``(II) a national laboratory under contract with the 
     Department of Energy; or
       ``(III) an entity performing spent nuclear fuel or high-
     level radioactive waste activities under contract with the 
     Department of Energy.
       ``(4) Vacancies.--Any vacancy on the Board shall be filled 
     by the nomination and appointment process described in 
     paragraphs (1) and (3).
       ``(5) Terms.--Members of the Board shall be appointed for 
     terms of 4 years, each such term to commence 120 days after 
     December 22, 1987, except that of the 11 members first 
     appointed to the Board, 5 shall serve for 2 years and 6 shall 
     serve for 4 years, to be designated by the President at the 
     time of appointment, except that a member of the Board whose 
     term has expired may continue to serve as a member of the 
     Board until such member's successor has taken office.

     ``SEC. 603. FUNCTIONS.

       ``The Board shall limit its evaluations to the technical 
     and scientific validity solely of the following activities 
     undertaken directly by the Secretary after December 22, 
     1987--
       ``(1) site characterization activities; and
       ``(2) activities of the Secretary relating to the packaging 
     or transportation of spent nuclear fuel or high-level 
     radioactive waste.

     ``SEC. 604. INVESTIGATORY POWERS

       ``(a) Hearings.--Upon request of the Chairman or a majority 
     of the members of the Board, the Board may hold such 
     hearings, sit and act at such times and places, take such 
     testimony, and receive such evidence, as the Board considers 
     appropriate. Any member of the Board may administer oaths or 
     affirmations to witnesses appearing before the Board. The 
     Secretary or the Secretary's designee or designees shall not 
     be required to appear before the Board or any element of the 
     Board for more than twelve working days per calendar year.
       ``(b) Production of Documents.--
       ``(1) Response to inquiries.--Upon the request of the 
     Chairman or a majority of the members of the Board, and 
     subject to existing law, the Secretary (or any contractor of 
     the Secretary) shall provide the Board with such records, 
     files, papers, data, or information that is generally 
     available to the public as may be necessary to respond to any 
     inquiry of the board under this title.
       ``(2) Extent.--Subject to existing law, information 
     obtainable under paragraph (1) may include drafts of products 
     and documentation of work in progress.

     ``SEC. 605. COMPENSATION OF MEMBERS.

       ``(a) In General.--Each member of the Board shall be paid 
     at the rate of pay payable for level III of the Executive 
     Schedule for each day (including travel time) such member is 
     engaged in the work of the Board.
       ``(b) Travel Expenses.--Each member of the Board may 
     receive travel expenses, including per diem in lieu of 
     subsidence, in the same manner as is permitted under sections 
     5702 and 5703 of title 5, United States Code.

     ``SEC. 606. STAFF.

       ``(a) Clerical Staff.--
       ``(1) Authority of chairman.--Subject to paragraph (2), the 
     Chairman may appoint and fix the compensation of such 
     clerical staff as may be necessary to discharge the 
     responsibilities of the Board.
       ``(2) Provisions of title 5.--Clerical staff shall be 
     appointed subject to the provisions of title 5, United States 
     Code, governing appointments in the competitive service, and 
     shall be paid in accordance with the provisions of chapter 51 
     and subchapter III of chapter 3 of such title relating to 
     classification and General Schedule pay rates.
       ``(b) Professional Staff.--
       ``(1) Authority of chairman.--Subject to paragraphs (2) and 
     (3), the Chairman may appoint and fix the compensation of 
     such professional staff as may be necessary to discharge the 
     responsibilities of the Board.
       ``(2) Number.--Not more than 10 professional staff members 
     may be appointed under this subsection.
       ``(3) Title 5.--Professional staff members 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 such title relating to 
     classification and General Schedule pay rates, except that no 
     individual so appointed may receive pay in excess of the 
     annual rate of basic pay payable for GS-18 of the General 
     Schedule.

     ``SEC. 607. SUPPORT SERVICES.

       ``(a) General Services.--To the extent permitted by law and 
     requested by the Chairman, the Administrator of General 
     Services shall provide the Board with necessary 
     administrative services, facilities, and support on a 
     reimbursable basis.
       ``(b) Accounting, Research, and Technology Assessment 
     Services.--The Comptroller General and the Librarian of 
     Congress shall, to the extent permitted by law and subject to 
     the availability of funds, provide the Board with such 
     facilities, support, funds and services including staff, as 
     may be necessary for the effective performance of the 
     functions of the Board.
       ``(c) Additional Support.--Upon the request of the 
     Chairman, the Board may secure directly from the head of any 
     department or agency of the United States information 
     necessary to enable it to carry out this title.
       ``(d) Mails.--The Board may use the United States mails in 
     the same manner and under the same conditions as other 
     departments and agencies of the United States.
       ``(e) Experts and Consultants.--Subject to such rules as 
     may be prescribed by the Board, the Chairman may procure 
     temporary and intermittent services under section 3109(b) of 
     title 5 of the United States Code, but at rates for 
     individuals not to exceed the daily equivalent of the maximum 
     annual rate of basic pay payable for GS-18 of the General 
     Schedule.

     ``SEC. 608. REPORT.

       ``The Board shall report not less than 2 times per year to 
     Congress and the Secretary its findings, conclusions, and 
     recommendations.

     ``SEC. 609. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated for expenditures 
     such sums as may be necessary to carry out the provisions of 
     this title.

     ``SEC. 610. TERMINATION OF THE BOARD.

       ``The Board shall cease to exist not later than one year 
     after the date on which the Secretary begins disposal of 
     spent nuclear fuel or high-level radioactive waste in the 
     repository.

                     ``TITLE VII--MANAGEMENT REFORM

     ``SEC. 701. MANAGEMENT REFORM INITIATIVES.

       ``(a) In General.--The Secretary is directed to take 
     actions as necessary to improve the management of the 
     civilian radioactive waste management program to ensure that 
     the program is operated, to the maximum extent practicable, 
     in like manner as a private business.
       ``(b) Audits.--
       ``(1) Standard.--The Office of Civilian Radioactive Waste 
     Management, its contractors, and subcontractors at all tiers, 
     shall conduct, or have conducted, audits and examinations of 
     their operations in accordance with the usual and customary 
     practices of private corporations engaged in large nuclear 
     construction projects consistent with its role in the 
     program.
       ``(2) Time.--The management practices and performances of 
     the Office of Civilian Radioactive Waste Management shall be 
     audited every 5 years by an independent management consulting 
     firm with significant experience in similar audits of private 
     corporations engaged in large nuclear construction projects. 
     The first such audit shall be conducted 5 years after the 
     enactment of the Nuclear Waste Policy Act of 1996.
       ``(3) Comptroller general.--The Comptroller General of the 
     United States shall annually make an audit of the Office, in 
     accordance with such regulations as the Comptroller General 
     may prescribe. The Comptroller General shall have access to 
     such books, records, accounts, and other materials of the 
     Office of the Comptroller General determines to be necessary 
     for the preparation of such audit. The Comptroller General 
     shall submit to the Congress a report on the results of each 
     audit conducted under this section.
       ``(4) Time.--No audit contemplated by this subsection shall 
     take longer than 30 days to conduct. An audit report shall be 
     issued in final form no longer than 60 days after the audit 
     is commenced.
       ``(5) Public documents.--All audit reports shall be public 
     documents and available to any individual upon request.
       ``(d) Value Engineering.--The Secretary shall create a 
     value engineering function within the Office of Civilian 
     Radioactive Waste Management that reports directly to the 
     Director, which shall carry out value engineering functions 
     in accordance with the usual and customary practices of 
     private corporations engaged in large nuclear construction 
     projects.
       ``(e) Site Characterization.--The Secretary shall employ, 
     on an on-going basis, integrated performance modeling to 
     identify appropriate parameters for the remaining site 
     characterization effort and to eliminate studies of 
     parameters that are shown not to affect long-term repository 
     performance.

     ``SEC. 702. REPORTING.

       ``(a) Initial Report.--Within 180 days of enactment of this 
     section, the Secretary shall report to Congress on its 
     planned actions for implementing the provisions of this Act, 
     including the development of the Integrated Waste Management 
     System. Such report shall include--
       ``(1) an analysis of the Secretary's progress in meeting 
     its statutory and contractual obligation to accept title to, 
     possession of, and delivery of spent nuclear fuel and high-
     level radioactive waste beginning no later than November 30, 
     1999, and in accordance with the acceptance schedule;
       ``(2) a detailed schedule and timeline showing each action 
     that the Secretary intends to take to meet the Secretary's 
     obligations under this Act and the contracts;
       ``(3) a detailed description of the Secretary's contingency 
     plans in the event that the Secretary is unable to meet the 
     planned schedule and timeline; and
       ``(4) an analysis by the Secretary of its funding needs for 
     fiscal years 1997 through 2001.
       ``(b) Annual Reports.--On each anniversary of the submittal 
     of the report required

[[Page S10489]]

     by subsection (a), the Secretary shall make annual reports to 
     the Congress for the purpose of updating the information 
     contained in such report. The annual reports shall be brief 
     and shall notify the Congress of:
       ``(1) any modifications to the Secretary's schedule and 
     timeline for meeting its obligations under this Act;
       ``(2) the reasons for such modifications, and the status of 
     the implementation of any of the Secretary's contingency 
     plans; and
       ``(3) the Secretary's analysis of its funding needs for the 
     ensuing 5 fiscal years.''

     ``SEC. 703. EFFECTIVE DATE.

       This Act shall become effective one day after enactment.''.
                                 ______
                                 

                       STEVENS AMENDMENT NO. 5284

  (Ordered to lie on the table.)
  Mr. STEVENS submitted an amendment intended to be proposed by him to 
the bill, H.R. 3756, supra; as follows:

       At the end of the bill, add the following new title:
           TITLE VIII--FEDERAL EMPLOYEES THRIFT SAVINGS PLAN
  Subtitle A--Additional Investment Funds for the Thrift Savings Plan

     SEC. 801. SHORT TITLE.

       This subtitle may be cited as the ``Thrift Savings 
     Investment Funds Act of 1996''.

     SEC. 802. ADDITIONAL INVESTMENT FUNDS FOR THE THRIFT SAVINGS 
                   PLAN.

       Section 8438 of title 5, United States Code, is amended--
       (1) in subsection (a)--
       (A) by redesignating paragraphs (5) through (8) as 
     paragraphs (6) through (9), respectively;
       (B) by inserting after paragraph (4) the following new 
     paragraph:
       ``(5) the term `International Stock Index Investment Fund' 
     means the International Stock Index Investment Fund 
     established under subsection (b)(1)(E);'';
       (C) in paragraph (8) (as redesignated by subparagraph (A) 
     of this paragraph) by striking out ``and'' at the end 
     thereof;
       (D) in paragraph (9) (as redesignated by subparagraph (A) 
     of this paragraph)--
       (i) by striking out ``paragraph (7)(D)'' in each place it 
     appears and inserting in each such place ``paragraph 
     (8)(D)''; and
       (ii) by striking out the period and inserting in lieu 
     thereof a semicolon and ``and''; and
       (E) by adding at the end thereof the following new 
     paragraph:
       ``(10) the term `Small Capitalization Stock Index 
     Investment Fund' means the Small Capitalization Stock Index 
     Investment Fund established under subsection (b)(1)(D).''; 
     and
       (2) in subsection (b)--
       (A) in paragraph (1)--
       (i) in subparagraph (B) by striking out ``and'' at the end 
     thereof;
       (ii) in subparagraph (C) by striking out the period and 
     inserting in lieu thereof a semicolon; and
       (iii) by adding at the end thereof the following new 
     subparagraphs:
       ``(D) a Small Capitalization Stock Index Investment Fund as 
     provided in paragraph (3); and
       ``(E) an International Stock Index Investment Fund as 
     provided in paragraph (4).''; and
       (B) by adding at the end thereof the following new 
     paragraphs:
       ``(3)(A) The Board shall select an index which is a 
     commonly recognized index comprised of common stock the 
     aggregate market value of which represents the United States 
     equity markets excluding the common stocks included in the 
     Common Stock Index Investment Fund.
       ``(B) The Small Capitalization Stock Index Investment Fund 
     shall be invested in a portfolio designed to replicate the 
     performance of the index in subparagraph (A). The portfolio 
     shall be designed such that, to the extent practicable, the 
     percentage of the Small Capitalization Stock Index Investment 
     Fund that is invested in each stock is the same as the 
     percentage determined by dividing the aggregate market value 
     of all shares of that stock by the aggregate market value of 
     all shares of all stocks included in such index.
       ``(4)(A) The Board shall select an index which is a 
     commonly recognized index comprised of stock the aggregate 
     market value of which is a reasonably complete representation 
     of the international equity markets excluding the United 
     States equity markets.
       ``(B) The International Stock Index Investment Fund shall 
     be invested in a portfolio designed to replicate the 
     performance of the index in subparagraph (A). The portfolio 
     shall be designed such that, to the extent practicable, the 
     percentage of the International Stock Index Investment Fund 
     that is invested in each stock is the same as the percentage 
     determined by dividing the aggregate market value of all 
     shares of that stock by the aggregate market value of all 
     shares of all stocks included in such index.''.

     SEC. 803. ACKNOWLEDGEMENT OF INVESTMENT RISK.

       Section 8439(d) of title 5, United States Code, is amended 
     by striking out ``Each employee, Member, former employee, or 
     former Member who elects to invest in the Common Stock Index 
     Investment Fund or the Fixed Income Investment Fund described 
     in paragraphs (1) and (3),'' and inserting in lieu thereof 
     ``Each employee, Member, former employee, or former Member 
     who elects to invest in the Common Stock Index Investment 
     Fund, the Fixed Income Investment Fund, the International 
     Stock Index Investment Fund, or the Small Capitalization 
     Stock Index Investment Fund, defined in paragraphs (1), (3), 
     (5), and (10),''.

     SEC. 804. EFFECTIVE DATE.

       This subtitle shall take effect on the date of enactment of 
     this Act, and the Funds established under this subtitle shall 
     be offered for investment at the earliest practicable 
     election period (described in section 8432(b) of title 5, 
     United States Code) as determined by the Executive Director 
     in regulations.
             Subtitle B--Thrift Savings Accounts Liquidity

     SEC. 821. SHORT TITLE.

       This subtitle may be cited as the ``Thrift Savings Plan Act 
     of 1996''.

     SEC. 822. NOTICE TO SPOUSES FOR IN-SERVICE WITHDRAWALS; DE 
                   MINIMUS ACCOUNTS; CIVIL SERVICE RETIREMENT 
                   SYSTEM PARTICIPANTS.

       Section 8351(b) of title 5, United States Code, is 
     amended--
       (1) in paragraph (5)--
       (A) in subparagraph (B)--
       (i) by striking out ``An election, change of election, or 
     modification (relating to the commencement date of a deferred 
     annuity)'' and inserting in lieu thereof ``An election or 
     change of election'';
       (ii) by inserting ``or withdrawal'' after ``and a loan'';
       (iii) by inserting ``and (h)'' after ``8433(g)'';
       (iv) by striking out ``the election, change of election, or 
     modification'' and inserting in lieu thereof ``the election 
     or change of election''; and
       (v) by inserting ``or withdrawal'' after ``for such loan''; 
     and
       (B) in subparagraph (D)--
       (i) by inserting ``or withdrawals'' after ``of loans''; and
       (ii) by inserting ``or (h)'' after ``8433(g)''; and
       (2) in paragraph (6)--
       (A) by striking out ``$3,500 or less'' and inserting in 
     lieu thereof ``less than an amount that the Executive 
     Director prescribes by regulation''; and
       (B) by striking out ``unless the employee or Member elects, 
     at such time and otherwise in such manner as the Executive 
     Director prescribes, one of the options available under 
     subsection (b)''.

     SEC. 823. IN-SERVICE WITHDRAWALS; WITHDRAWAL ELECTIONS, 
                   FEDERAL EMPLOYEES RETIREMENT SYSTEM 
                   PARTICIPANTS.

       (a) In General.--Section 8433 of title 5, United States 
     Code, is amended--
       (1) by striking out subsections (b) and (c) and inserting 
     in lieu thereof the following:
       ``(b) Subject to section 8435 of this title, any employee 
     or Member who separates from Government employment is 
     entitled and may elect to withdraw from the Thrift Savings 
     Fund the balance of the employee's or Member's account as--
       ``(1) an annuity;
       ``(2) a single payment;
       ``(3) 2 or more substantially equal payments to be made not 
     less frequently than annually; or
       ``(4) any combination of payments as provided under 
     paragraphs (1) through (3) as the Executive Director may 
     prescribe by regulation.
       ``(c)(1) In addition to the right provided under subsection 
     (b) to withdraw the balance of the account, an employee or 
     Member who separates from Government service and who has not 
     made a withdrawal under subsection (h)(1)(A) may make one 
     withdrawal of any amount as a single payment in accordance 
     with subsection (b)(2) from the employee's or Member's 
     account.
       ``(2) An employee or Member may request that the amount 
     withdrawn from the Thrift Savings Fund in accordance with 
     subsection (b)(2) be transferred to an eligible retirement 
     plan.
       ``(3) The Executive Director shall make each transfer 
     elected under paragraph (2) directly to an eligible 
     retirement plan or plans (as defined in section 402(c)(8) of 
     the Internal Revenue Code of 1986) identified by the 
     employee, Member, former employee, or former Member for whom 
     the transfer is made.
       ``(4) A transfer may not be made for an employee, Member, 
     former employee, or former Member under paragraph (2) until 
     the Executive Director receives from that individual the 
     information required by the Executive Director specifically 
     to identify the eligible retirement plan or plans to which 
     the transfer is to be made.'';
       (2) in subsection (d)--
       (A) in paragraph (1) by striking out ``Subject to paragraph 
     (3)(A)'' and inserting in lieu thereof ``Subject to paragraph 
     (3)'';
       (B) by striking out paragraph (2) and redesignating 
     paragraph (3) as paragraph (2); and
       (C) in paragraph (2) (as redesignated under subparagraph 
     (B) of this paragraph)--
       (i) in subparagraph (A) by striking out ``(A)''; and
       (ii) by striking out subparagraph (B);
       (3) in subsection (f)(1)--
       (A) by striking out ``$3,500 or less'' and inserting in 
     lieu thereof ``less than an amount that the Executive 
     Director prescribes by regulation; and
       (B) by striking out ``unless the employee or Member elects, 
     at such time and otherwise in such manner as the Executive 
     Director prescribes, one of the options available under 
     subsection (b), or'' and inserting a comma;
       (4) in subsection (f)(2)--
       (A) by striking out ``February 1'' and inserting in lieu 
     thereof ``April 1'';
       (B) in subparagraph (A)--

[[Page S10490]]

       (i) by striking out ``65'' and inserting in lieu thereof 
     ``70\1/2\''; and
       (ii) by inserting ``or'' after the semicolon;
       (C) by striking out subparagraph (B); and
       (D) by redesignating subparagraph (C) as subparagraph (B);
       (5) in subsection (g)(1) by striking out ``after December 
     31, 1987, and''; and
       (6) by adding after subsection (g) the following new 
     subsection:
       ``(h)(1) An employee or Member may apply, before 
     separation, to the Board for permission to withdraw an amount 
     from the employee's or Member's account based upon the 
     employee or Member having attained age 59\1/2\.
       ``(2) A withdrawal under paragraph (1)(A) shall be 
     available to each eligible participant one time only.
       ``(3) A withdrawal under paragraph (1)(B) shall be 
     available only for an amount not exceeding the value of that 
     portion of such account which is attributable to 
     contributions made by the employee or Member under section 
     8432(a) of this title.
       ``(4) Withdrawals under paragraph (1) shall be subject to 
     such other conditions as the Executive Director may prescribe 
     by regulation.
       ``(5) A withdrawal may not be made under this subsection 
     unless the requirements of section 8435(e) of this title are 
     satisfied.''.
       (b) Invalidity of Certain Prior Elections.--Any election 
     made under section 8433(b)(2) of title 5, United States Code 
     (as in effect before the effective date of this subtitle), 
     with respect to an annuity which has not commenced before the 
     implementation date of this subtitle as provided by 
     regulation by the Executive Director in accordance with 
     section 827 of this subtitle, shall be invalid.

     SEC. 824. SURVIVOR ANNUITIES FOR FORMER SPOUSES; NOTICE TO 
                   FEDERAL EMPLOYEES RETIREMENT SYSTEM SPOUSES FOR 
                   IN-SERVICE WITHDRAWALS.

       Section 8435 of title 5, United States Code, is amended--
       (1) in subsection (a)(1)(A)--
       (A) by striking out ``may make an election under subsection 
     (b)(3) or (b)(4) of section 8433 of this title or change an 
     election previously made under subsection (b)(1) or (b)(2) of 
     such section'' and inserting in lien thereof ``may withdraw 
     all or part of a Thrift Savings Fund account under subsection 
     (b) (2), (3), or (4) of section 8433 of this title or change 
     a withdrawal election''; and
       (B) by adding at the end thereof ``A married employee or 
     Member (or former employee or Member) may make a withdrawal 
     from a Thrift Savings Fund account under subsection (c)(1) of 
     section 8433 of this title only if the employee or Member (or 
     former employee or Member) satisfies the requirements of 
     subparagraph (B).'';
       (2) in subsection (c)--
       (A) in paragraph (1)--
       (i) by striking out ``An election, change of election, or 
     modification of the commencement date of a deferred annuity'' 
     and inserting in lieu thereof ``An election or change of 
     election''; and
       (ii) by striking out ``modification, or transfer'' and 
     inserting in lien thereof ``or transfer''; and
       (B) in paragraph (2) in the matter following subparagraph 
     (B)(ii) by striking out ``modification,'';
       (3) in subsection (e)--
       (A) in paragraph (1)--
       (i) in subparagraph (A)--

       (I) by inserting ``or withdrawal'' after ``A loan'';
       (II) by inserting ``and (h)'' after ``8433(g)''; and
       (III) by inserting ``or withdrawal'' after ``such loan'';

       (ii) in subparagraph (B) by inserting ``or withdrawal'' 
     after ``loan''; and
       (iii) in subparagraph (C)--

       (I) by inserting ``or withdrawal'' after ``to a loan''; and
       (II) by inserting ``or withdrawal'' after ``for such 
     loan''; and

       (B) in paragraph (2)--
       (i) by inserting ``or withdrawal'' after ``loan''; and
       (ii) by inserting ``and (h)'' after ``8344(g)''; and
       (4) in subsection (g)--
       (A) by inserting ``or withdrawals'' after ``loans''; and
       (B) by inserting ``and (h)'' after ``8344(g)''.

     SEC. 825. DE MINIMUS ACCOUNTS RELATING TO THE JUDICIARY.

       (a) Justices and Judges.--Section 8440a(b)(7) of title 5, 
     United States Code, is amended--
       (1) by striking out ``$3,500 or less'' and inserting in 
     lieu thereof ``less than an amount that the Executive 
     Director prescribes by regulation''; and
       (2) by striking out ``unless the justice or judge elects, 
     at such time and otherwise in such manner as the Executive 
     Director prescribes, one of the options available under 
     section 8433(b)''.
       (b) Bankruptcy Judges and Magistrates.--Section 8440b(b) of 
     title 5, United States Code, is amended--
       (1) in paragraph (7) in the first sentence by inserting 
     ``of the distribution'' after ``equal to the amount''; and
       (2) in paragraph (8)--
       (A) by striking out ``$3,500 or less'' and inserting in 
     lieu thereof ``less than an amount that the Executive 
     Director prescribes by regulation''; and
       (B) by striking out ``unless the bankruptcy judge or 
     magistrate elects, at such time and otherwise in such manner 
     as the Executive Director prescribes, one of the options 
     available under subsection (b)''.
       (c) Federal Claims Judges.--Section 8440c(b) of title 5, 
     United States Code, is amended--
       (1) in paragraph (7) in the first sentence by inserting 
     ``of the distribution'' after ``equal to the amount''; and
       (2) in paragraph (8)--
       (A) by striking out ``$3,500 or less'' and inserting in 
     lieu thereof ``less than an amount that the Executive 
     Director prescribes by regulation''; and
       (B) by striking out ``unless the judge elects, at such time 
     and otherwise in such manner as the Executive Director 
     prescribes, one of the options available under section 
     8433(b)''.

     SEC. 826. DEFINITION OF BASIC PAY.

       (a) In General.--(1) Section 8401(4) of title 5, United 
     States Code, is amended by striking out ``except as provided 
     in subchapter III of this chapter,''.
       (2) Section 8431 of title 5, United States Code, is 
     repealed.
       (b) Technical and Conforming Amendments.--(1) The table of 
     sections for chapter 84 of title 5, United States Code, is 
     amended by striking out the item relating to section 8431.
       (2) Section 5545a(h)(2)(A) of title 5, United States Code, 
     is amended by striking out ``8431,''.
       (3) Section 615(f) of the Treasury, Postal Service, and 
     General Government Appropriations Act, 1996 (Public Law 104-
     52; 109 Stat. 500; 5 U.S.C. 5343 note) is amended by striking 
     out ``section 8431 of title 5, United States Code,''.

     SEC. 827. EFFECTIVE DATE.

       This subtitle shall take effect on the date of the 
     enactment of this Act and withdrawals and elections as 
     provided under the amendments made by this subtitle shall be 
     made at the earliest practicable date as determined by the 
     Executive Director in regulations.
                                 ______
                                 

                        KERRY AMENDMENT NO. 5285

  (Ordered to lie on the table.)
  Mr. KERRY submitted an amendment intended to be proposed by him to 
the bill, H.R. 3756, supra; as follows:

       At the appropriate place, add the following new section:
       Sec.   . Workplace Religious Freedom.--(a) Short Title.--
     This section may be cited as the ``Workplace Religious 
     Freedom Act of 1996''.
       (b) Amendments.--
       (1) Definitions.--Section 701(j) of the Civil Rights Act of 
     1964 (42 U.S.C. 2000e(j)) is amended--
       (A) by inserting ``(1)'' after ``(j)'';
       (B) by inserting ``, after initiating and engaging in an 
     affirmative and bona fide effort,'' after ``unable''; and
       (C) by adding at the end the following:
       ``(2) As used in this subsection, the term `undue hardship' 
     means an accommodation requiring significant difficulty or 
     expense. For purposes of determining whether an accommodation 
     requires significant difficulty or expenses, the factors to 
     be considered shall include--
       ``(A) the identifiable cost of the accommodation in 
     relation to the size and operating cost of the employer; and
       ``(B) the number of individuals who will need a particular 
     accommodation to a religious observance or practice.''.
       (2) Employment practices.--Section 703 of such Act (42 
     U.S.C. 2000e-2) is amended by adding at the end the 
     following:
       ``(o)(1) For purposes of determining whether an employer 
     has committed an unlawful employment practice under this 
     title by failing to provide a reasonable accommodation to the 
     religious observance or practice of an employee or 
     prospective employee, an accommodation by the employer 
     shall not be deemed to be reasonable if--
       ``(A) such accommodation does not remove the conflict 
     between employment requirements and the religious observance 
     or practice of the employee or prospective employee; or
       ``(B)(i) the employee or prospective employee demonstrates 
     to the employer the availability of an alternative 
     accommodation less onerous to the employee or prospective 
     employee that may be made by the employer without undue 
     hardship on the conduct of the employer's business; and
       ``(ii) the employer refuses to make such accommodation.
       ``(2) It shall not be a defense to a claim of unlawful 
     employment practices for failure to provide a reasonable 
     accommodation that such accommodation would be in violation 
     of a bona fide seniority system if, in order for the employer 
     to reasonably accommodate to such observance or practice--
       ``(A) an adjustment would be made in the employee's work 
     hours (including an adjustment that requires the employee to 
     work overtime in order to avoid working at a time that 
     abstention from work is necessary to satisfy religious 
     requirements), shift, or job assignment, that would not be 
     available to any employee but for such accommodation; or
       ``(B) the employee and any other employee would voluntarily 
     exchange shifts or job assignments, or voluntarily make some 
     other arrangement between the employees.
       ``(3)(A) An employer shall not be required to pay premium 
     wages for work performed during hours to which such premium 
     wages

[[Page S10491]]

     would ordinarily be applicable, if work is performed during 
     such hours only to accommodate religious requirements of an 
     employee.
       ``(B) As used in this paragraph, the term `premium wages' 
     includes premium overtime pay, pay for night, weekend, or 
     holiday work, and pay for standby or irregular duty.''
       (c) Effective Date; Application of Amendments.--
       (1) Effective date.--Except as provided in subsection (b), 
     this section and the amendments made by subsection (b) shall 
     take effect on the date of enactment of this Act.
       (2) Application of amendments.--The amendments made by 
     subsection (b) shall not apply with respect to conduct 
     occurring before the date of enactment of this Act.
                                 ______
                                 

                      HATFIELD AMENDMENT NO. 5286

  (Ordered to lie on the table.)
  Mr. HATFIELD submitted an amendment intended to be proposed by him to 
the bill, H.R. 3756, supra; as follows:

       At the appropriate place in the bill, insert the following 
     new title:

     TITLE   --LOCAL EMPOWERMENT AND FLEXIBILITY PILOT ACT OF 1996

     SECTION   01. SHORT TITLE.

       This Act may be cited as the ``Local Empowerment and 
     Flexibility Pilot Act of 1996.''

     SEC.   02. FINDINGS.

       The Congress finds that--
       (1) historically, Federal programs have addressed the 
     Nation's problems by providing categorical financial 
     assistance with detailed requirements relating to the use of 
     funds;
       (2) while the assistance described in paragraph (1) has 
     been directed at critical problems, some program requirements 
     may inadvertently impede the effective delivery of services;
       (3) the Nation's State, local, and tribal governments and 
     private, nonprofit organizations are dealing with 
     increasingly complex problems which require the delivery of 
     many kinds of services;
       (4) our nation's communities are diverse and many have 
     innovative planning and community involvement strategies to 
     comprehensively meet their particular service needs for 
     providing services, but Federal, State, and local grant and 
     other requirements often hamper effective implementation of 
     such strategies.
       (5) it is more important than ever to provide programs 
     that--
       (A) promote more effective and efficient delivery of 
     services at all levels of government to meet the full range 
     of needs of individuals, families, and society;
       (B) respond flexibly to the diverse needs of the Nation's 
     communities;
       (C) reduce the barriers between programs that impede the 
     State, local, and tribal government's ability to effectively 
     delivery services; and
       (D) empower State, local, and tribal governments and 
     private, nonprofit organizations to be innovative in creating 
     programs that meet the unique needs of their communities 
     while continuing to address national policy goals; and

     SEC.   03. PURPOSES.

       The purposes of this Act are to--
       (1) improve the delivery of services to the public;
       (2) promote State, local, and tribal governments and 
     private, non-profit organizations and consortiums to identify 
     goals to improve their communities and the lives of their 
     citizens;
       (3) enable eligible applicants to adapt programs of Federal 
     financial assistance to the particular needs of their 
     communities by integrating programs and program funds across 
     existing Federal financial assistance programs that have 
     similar goals and purposes;
       (4) more effectively meet the goals and purposes of 
     Federal, State and local financial assistance programs;
       (5) empower eligible applicants to work together to build 
     stronger cooperative, intergovernmental and private 
     partnerships to address critical service problems;
       (6) place less emphasis in Federal financial assistance 
     programs on complying with procedures and more emphasis on 
     achieving Federal, State, local and tribal policy goals.
       (7) facilitate State, local, and tribal government efforts 
     to develop regional or metropolitan solutions to shared 
     problems;
       (8) improve intergovernmental efficiency;

     SEC.   04. DEFINITIONS.

       For purposes of this Act:
       (1) Affected federal agency.--The term ``affected Federal 
     agency'' means the Federal agency with principal authority 
     for the administration of an eligible Federal financial 
     assistance program included in a plan.
       (2) Affected state agency.--The term ``affected State 
     agency'' means--
       (A) any State agency with authority for the administration 
     of any State program or eligible Federal financial assistance 
     program; and
       (B) with respect to education programs, the term shall 
     include the State Education Agency as defined by the 
     Elementary and Secondary Education Act and the Higher 
     Education Act.
       (3) Approved flexibility plan.--The term ``approved 
     flexibility plan'' means a flexibility plan or that part of a 
     flexibility plan, that is approved by the Community 
     Empowerment Board under section 8.
       (4) Board.--The term ``Board'' means the Community 
     Empowerment Board established under section 5.
       (5) Director.--The term ``Director'' means the Director of 
     the Office of Management and Budget.
       (6) eligible applicant.--The term ``eligible applicant'' 
     means a State, local, or tribal government, qualified 
     organization, or qualified consortium that is eligible to 
     receive financial assistance under 1 or more eligible Federal 
     financial assistance program.
       (7) Eligible federal financial assistance program.--The 
     term ``eligible Federal financial assistance program''--
       (A) except as provided in subparagraph (B), means a 
     domestic assistance program (as defined under section 6101(4) 
     of title 31, United States Code) under which financial 
     assistance is available, directly or indirectly, to a State, 
     local, or tribal government or a qualified organization to 
     carry out activities consistent with national policy goals; 
     and
       (B) does not include--
       (i) a Federal program under which direct financial 
     assistance is provided by the Federal Government directly to 
     an individual beneficiary of that financial assistance, or to 
     a State to provide direct financial assistance, or to a State 
     to provide direct financial or food voucher assistance 
     directly to an individual beneficiary;
       (ii) a program carried out with direct spending (as defined 
     in section 250(c)(8) of the Balanced Budget and Emergency 
     Deficit Control Act of 1985 (2 U.S.C. 900(c)(8)); or
       (iii) a program of assistance referred to in section 
     6101(4)(A)(ix) of title 31, United States Code or Section 
     3(10) of the Congressional Budget Act of 1974.
       (10) Flexibility Plan.--The term ``flexibility plan'' means 
     a comprehensive plan or part of such plan for the 
     coordination or integration and the administration by an 
     eligible applicant of financial assistance provided by the 
     Federal Government under 2 or more eligible Federal financial 
     assistance programs that includes funds from Federal, State, 
     local, or tribal government or private sources to address the 
     service needs of a community.
       (11) Goals and purposes.--The term ``goals and purposes'' 
     means the ``goals and purposes'' embodied in an eligible 
     Federal financial assistance program, including the targeted 
     population embodied in that program.
       (12) Local government.--The term ``local government'' 
     means--
       (A) a political subdivision of a State that is a unit of 
     general local government (as defined under section 6501 of 
     title 31, United States Code);
       (B) any combination of political subdivisions described in 
     subparagraph (A) that submits an application to the Board; or
       (C) a local educational agency as defined under section 
     14101(18) of the Elementary and Secondary Education Act of 
     1965 (20 U.S.C. 8801(18)).
       (13) Qualified consortium.--The term ``qualified 
     consortium'' means a group that is composed of 2 or more 
     qualified organizations, State, local, or tribal agencies 
     that receive federally appropriated funds.
       (14) Qualified organization.--The term ``qualified 
     organization'' means a private, nonprofit organization 
     described in section 501(c)(3) of the Internal Revenue Code 
     of 1986 (26 U.S.C. 501(c)(3)) that is exempt from taxation 
     under section 501(a) of the Internal Revenue Code of 1986 (26 
     U.S.C. 501(a)).
       (15) Small government.--The term ``small government'' means 
     any small governmental jurisdiction defined in section 601(5) 
     of title 5, United States Code, and a tribal government.
       (16) State.--The term ``State'' means each of the 50 
     States, the District of Columbia, Puerto Rico, American 
     Samoa, Guam, and the Virgin Islands.
       (17) State legislative official.--The term ``State 
     legislative official'' means--
       (A) the presiding officer of a chamber of a State 
     legislature; and
       (B) the minority leader of a chamber of a State 
     legislature.
       (18) Tribal government.--The term ``tribal government'' 
     means the governing entity of an Indian tribe, as that term 
     is defined in the Indian Self Determination and Education 
     Assistance Act (25 U.S.C. 450b).

     SEC.   05. ESTABLISHMENT OF COMMUNITY EMPOWERMENT BOARD.

       (a) In General.--There is established a Community 
     Empowerment Board, which shall consist of--
       (1) the Secretary of Housing and Urban Development;
       (2) the Secretary of Health and Human Services;
       (3) the Secretary of Agriculture;
       (4) the Secretary of Transportation;
       (5) the Secretary of Education;
       (6) the Secretary of Commerce;
       (7) the Secretary of Labor;
       (8) the Secretary of the Treasury;
       (9) the Attorney General;
       (10) the Secretary of the Interior;
       (11) the Secretary of Energy;
       (12) the Secretary of Veterans Affairs;
       (13) the Secretary of Defense;
       (14) the Director of the Federal Emergency Management 
     Agency;
       (15) the Administrator of the Environmental Protection 
     Agency;
       (16) the Director of the National Drug Control Policy;
       (17) the Administrator of the Small Business 
     Administration;

[[Page S10492]]

       (18) the Director of the Office of Management and Budget;
       (19) the Administrator of General Services; and
       (20) other officials of the Executive Branch as directed by 
     the President.
       (b) Chair.--The President shall designate the Chair of the 
     Board from among its members.
       (c) Functions.--
       (1) In general.--The Board shall--
       (A) no later than 180 days after implementation of this 
     Act, select 6 states to participate in this Act;
       (B) receive, review, and approve or disapprove flexibility 
     plans in according with section 7;
       (C) consider all requests for technical assistance from 
     eligible applicants and, when appropriate, provide or direct 
     that an affected Federal argency provide the head of an 
     agency that administers an eligible Federal financial 
     assistance program under which substantial Federal financial 
     assistance would be provided under the plan to provide 
     technical assistance to the eligible applicant, and to the 
     extent permitted by law, special assistance to interested 
     small governments to support the development and 
     implementation of a flexibility plan, which may include 
     expedited processing;
       (D) in consultation with the Director, monitor the progress 
     of development and implementation of flexibility plans;
       (E) in consultation with the Director, coordinate and 
     assist Federal agencies in identifying regulations of 
     eligible Federal financial assistance programs for revision, 
     repeal and coordination;
       (F) evaluate performance standards and evaluation criteria 
     for eligible Federal financial assistance programs, and make 
     specific recommendations to agencies regarding how to revise 
     such standards and criteria in order to establish specific 
     performance and outcome measures upon which the success of 
     such programs and the success of the plan may be compared and 
     evaluated; and
       (G) designate a Federal agency to be primarily responsible 
     for the oversight, monitoring, and evaluation of the 
     implementation of a plan.
       (2) Qualifications for states.--Of the 6 States selected 
     for participation under paragraph 1--
       (A) 3 States shall each have a population of 3,500,000 or 
     more as determined under the most recent decennial census; 
     and
       (B) 3 States shall each have a population of 3,500,000 or 
     less as determined under the most recent decennial census.
       (d) Coordination and Assistance.--The Director, in 
     consultation with the Board, shall coordinate and assist 
     Federal agencies in creating--
       (1) a uniform application to be used to apply for 
     assistance from eligible Federal financial assistance 
     programs;
       (2) a release form to be used by grantees to facilitate, 
     where appropriate and otherwise lawful, the sharing for 
     information across eligible Federal financial assistance 
     programs; and
       (3) a system wherein an organization or consortium of 
     organizations may use one proposal to apply for funding from 
     multiple eligible Federal financial assistance programs.
       (e) Details and Assignments to Board.--At the request of 
     the Board and with the approval of the appropriate Federal 
     agency, staff of the agency may be detailed or assigned to 
     the Board on a nonreimbursable basis.
       (f) Interagency Financing.--Notwithstanding any other law, 
     interagency financing is authorized to carry out the purposes 
     of this Act.
       (g) Judicial Review.--The actions of the Board shall not be 
     subject to judicial review.

     SEC. --06. APPLICATION FOR APPROVAL OF FLEXIBILITY PLAN.

       (a) In General.--An eligible applicant may submit to the 
     Board in accordance with this section an application for 
     approval of a flexibility plan.
       (b) Contents of Application.--An application submitted 
     under this section shall include--
       (1) a proposed flexibility plan that complies with 
     subsection (c);
       (2) written certification by the chief executive of the 
     applicant, and such additional assurances as may be required 
     by the Board, that--
       (A) the applicant has the ability, authority, and resources 
     to implement the proposed plan, throughout the geographic 
     area in which the proposed plan is intended to apply; and
       (B) amounts are available from non-Federal sources to pay 
     the non-Federal share of all eligible Federal financial 
     assistance programs included in the proposed plan;
       (C) the flexibility plan prohibits the integration or 
     combination of program funds across existing Federal 
     financial assistance programs which do not have similar goals 
     and purposes.
       (3) all comments on the proposed plan submitted under 
     subsection (d) by a Governor, affected State agency, State 
     legislative official, or a chief executive of a local or 
     tribal government that would be directly affected by 
     implementation of the proposed plan, and the applicant's 
     responses to those comments;
       (4) written documentation that the eligible applicant 
     informed the affected community of the contents of the plan 
     and gave the public and the affected population the 
     opportunity to comment upon the plan, including at least one 
     public hearing involving agencies, qualified organizations, 
     eligible intended beneficiaries of the plan, and others 
     directly affected by the plan;
       (5) the public comments, which shall include the comments 
     of the affected population, received on the plan and the 
     applicant's responses to the significant comments;
       (6) other relevant information the Board may require to 
     review or approve the proposed plan.
       (c) Contents of Plan.--A flexibility plan submitted by an 
     eligible applicant under this section shall include--
       (1) the geographic area and timeframe to which the plan 
     applies and the rationale for selecting the area and 
     timeframe;
       (2) the particular groups of individuals, by service needs, 
     economic circumstances, or other defining factors, who 
     currently receive services and benefits under the eligible 
     Federal financial assistance programs included in the plan 
     and the particular groups of individuals, by service needs, 
     economic circumstances, or other defining factors who would 
     receive services and benefits under the plan;
       (3) the specific goals and measurable performance criteria 
     that demonstrate how the plan is expected to improve the 
     delivery and effectiveness of services to the affected 
     population, including--
       (A) a description of how performance shall be measured 
     under the plan when compared to the current performance of 
     the eligible Federal financial assistance programs included 
     in the plan; and
       (B) a system for the comprehensive evaluation of the impact 
     of the plan on individuals who receive services and benefits 
     in the community affected by the plan, that shall include--
       (i) a list of goals to improve the community and the lives 
     of its citizens in the geographic area covered by the plan;
       (ii) a list of goals identified by the State in which the 
     plan is to be implemented, if such goals have been 
     established by the State; and
       (iii) a description of how the plan will--
       (I) attain the goals listed in clauses (i) and (ii);
       (II) measure performance; and
       (III) collect and maintain data;
       (4) the eligible Federal financial assistance programs 
     included in the plan and the specific services and benefits 
     to be provided under the plan under such programs, 
     including--
       (A) criteria for determining eligibility for services and 
     benefits under the plan;
       (B) the services and benefits available under the plan;
       (C) the amounts and form (such as cash, in-kind 
     contributions, or financial instruments) of non-service 
     benefits; and
       (D) any other descriptive information the Board considers 
     necessary to approve the plan;
       (5) a description of the goals and purposes of each Federal 
     financial assistance program included in the plan and how the 
     goals and purposes of such programs shall more effectively be 
     met at the State, local, and tribal level;
       (6) a general description of how the plan appropriately 
     addresses any effect that administration of each eligible 
     Federal financial assistance program included in the plan 
     would have on the administration of programs not included in 
     the plan;
       (7) a description of how the flexibility plan will 
     adequately achieve the purposes of this Act;
       (8) except for the requirements described under section 
     7(f)(3), any Federal statutory or regulatory requirement of 
     an eligible Federal financial assistance program included in 
     the plan, the waiver of which is necessary to implement the 
     plan, and the detailed justification for the waiver request;
       (9) any State, local, or tribal statutory, regulatory, or 
     other requirement, the waiver of which is necessary to 
     implement the plan, and an indication of commitment of the 
     appropriate State, local, or tribal governments to grant such 
     waivers;
       (9) a description of the Federal fiscal control and related 
     accountability procedures to be followed under the 
     flexibility plan and, as necessary, an explanation of how 
     such procedures will not diminish existing Federal 
     requirements;
       (10) a description of the sources and amounts of all non-
     Federal funds that are required to carry out eligible Federal 
     financial assistance programs included in the plan;
       (11) verification that Federal funds made available under 
     the plan will not supplant non-Federal funds for existing 
     services and activities that promote the goals of the plan;
       (12) verification that none of the Federal funds under the 
     plan would be used to--
       (A) meet maintenance of effort requirements of such an 
     activity; or
       (B) meet State, local, or tribal matching shares; and
       (13) any other relevant information the Board may require 
     to approve the plan;
       (d) Procedure for Applying.--
       (1) Submission to affected state and local governments.--An 
     eligible applicant shall submit an application for approval 
     of a proposed flexibility plan to each State government and 
     each local government that the applicant deems to be directly 
     affected by the plan, at least 60 days before submitting the 
     application to the Board.
       (2) Review by affected government.--The Governor, affected 
     State agency head, State legislative official, and the chief 
     executive officer of a local government that receives an 
     application submitted under paragraph (1) may each, by no 
     later than 60 days after the date of that receipt--

[[Page S10493]]

       (A) prepare comments on the proposed flexibility plan 
     included in the application;
       (B) describe and make commitments to waive any State or 
     local laws or other requirements which are necessary for 
     successful implementation of the proposed plan; and
       (C) submit the comments and commitments to the eligible 
     applicant.
       (3) Submittal to board.--Applications for approval of a 
     flexibility plan shall only be submitted to the Board 
     between--
       (A) October 1, 1997 and March 31, 1998; or
       (B) October 1, 1998 and March 31, 1999.
       (4) Action by affected government.--If the Governor, 
     affected State agency head, State legislative official or the 
     chief executive officer of a local government--
       (A) fails to act on or otherwise endorse a plan application 
     within 60 days after receiving an application under paragraph 
     (1);
       (B) does not make and submit to the eligible applicant the 
     commitments described in paragraph (2)(A) and (B); or
       (C) disagrees with all or part of the proposed flexibility 
     plan;

     the eligible applicant may submit the application to the 
     Board if the application is amended as necessary for the 
     successful implementation of the proposed plan without the 
     commitment made under paragraph (2)(B), including by adding 
     an updated description of the ability of the proposed 
     flexibility plan to meet plan goals and satisfy performance 
     criteria in the absence of statutory and regulatory waivers 
     and financial and technical support from the State or local 
     government.
       (e) Tribal Sovereignty.--Nothing under this Act shall be 
     construed to affect, or otherwise alter, the sovereign 
     relationship between tribal governments and the Federal 
     Government.
       (f) Eligibility for Other Assistance.-- Disapproval by the 
     Board of a flexibility plan submitted by an eligible 
     applicant under this Act shall not affect the eligibility of 
     the applicant for assistance under any Federal program.
       (g) State, Local, or Tribal Authority.-- Nothing in this 
     Act shall be construed to grant the Board, Federal agency, or 
     any eligible applicant to waive or otherwise preempt--
       (1) any State, local, or tribal law or regulation including 
     the legal authority under State law of any affected State 
     agency, State entity, or public official over programs that 
     are under the jurisdiction of the agency, entity, or 
     official; or
       (2) the existing authority of a State, local, or tribal 
     government or qualified organization or consortium with 
     respect to an eligible Federal financial assistance program 
     included in the plan unless such entity has consented to the 
     terms of the plan.

     SEC.  07. REVIEW AND APPROVAL OF FLEXIBILITY PLANS AND WAIVER 
                   REQUESTS.

       (a) Review of Applications.--Upon receipt of an application 
     for approval of a proposed flexibility plan, the Board shall 
     notify the eligible applicant as to whether or not the plan 
     is complete. If the Board determines a plan is complete, the 
     Board shall--
       (1) establish procedures for consultation with the 
     applicant during the review process;
       (2) publish notice of the application for approval in the 
     Federal Register and make available the contents to any 
     interested party upon written request;
       (3) if appropriate, coordinate public hearings on the plan 
     by either the Board or the appropriate Federal agency;
       (4) approve or disapprove plans submitted under--
       (i) section 6(d)(3)(A) no later than July 31, 1998; or
       (ii) section 6(d)(3)(B) no later than July 31, 1999;
       (5) in the case of any disapproval of a plan, include 
     written justification of the reasons for disapproval in the 
     notice of disapproval sent to the applicant;
       (6) publicly announce and forward to Congress on July 31, 
     1998 and July 31, 1999, the list of approved flexibility 
     plans, including an identification of approved plans that 
     request statutory or regulatory waivers and the 
     identification of such requested waivers.
       (b) Approval.--
       (1) In general.--The Board may approve a flexibility plan 
     for which an application is submitted by an eligible 
     applicant under this Act, if the Board determines that--
       (A) the contents of the application for approval of the 
     plan comply with the requirements of this Act; and
       (B) the contents of the flexibility plan indicate that the 
     plan will effectively achieve the purposes of this Act 
     described in section 3 by adhering to the conditions 
     described in sections 6 and 7;
       (2) Restriction.--(A) The Board may approve no more than 30 
     plans; and
       (B) only three approved plans may be submitted by state 
     applicants.
       (3) Requirement to disapprove plan.--The Board must 
     disapprove a flexibility plan if the Board determines that--
       (A) implementation of the plan would result in any increase 
     in the total amount of obligations or outlays of 
     discretionary appropriations or direct spending under Federal 
     financial assistance programs, over the amounts of such 
     obligations and outlays that would occur under those programs 
     without implementation of the plan; or
       (B) the flexibility plan fails to comply with paragraph 
     (1).
       (4) Specification of period of effectiveness.--In approving 
     any flexibility plan, the Board shall specify the period 
     during which the plan is effective, which in no case shall be 
     greater than 5 years from the date of approval.
       (d) Memoranda of Understanding Required.--
       (1) In general.--An approved flexibility plan may not take 
     effect until the Board receives a signed memorandum of 
     understanding agreed to by the eligible applicant that would 
     receive Federal financial assistance administered under the 
     flexibility plan and by each affected Federal agency.
       (2) Contents.--A memorandum of understanding under this 
     subsection shall specify all understandings that have been 
     reached by the affected Federal agencies and the eligible 
     applicant. The memorandum shall include understandings 
     with respect to--
       (A) the conditions described in sections 6 and 7;
       (B) the effective dates of all State, local or tribal 
     government waivers;
       (C) technical or special assistance being provided to the 
     eligible applicant; and
       (D) the effective date and timeframe of the plan and each 
     Federal waiver approved in the plan;
       (E)(i) the total amount of Federal funds that will be 
     provided as services and benefits under or used to administer 
     eligible Federal financial assistance programs included in 
     the plan; or
       (ii) a mechanism for determining that amount, including 
     specification of the total amount of Federal funds that will 
     be provided or used under each eligible Federal financial 
     assistance program included in the plan.
       (e) Limitation on Confidentiality Requirements.--The Board 
     may not, as a condition of approval of a flexibility plan or 
     with respect to the implementation of an approved flexibility 
     plan, establish any confidentiality requirement that would--
       (1) impede the exchange of information needed for the 
     design or provision of services and benefits under the plans; 
     or
       (2) conflict with law.
       (f) Limitation on the Use of Funds.--The Board may not 
     approve any plan that includes funds under an eligible 
     federal financial assistance program to--
       (1) support tuition vouchers for children attending private 
     elementary or secondary schools, including before and after 
     school programs; or
       (2) otherwise pay their cost of attending such schools.
       (g) Waivers of Federal Requirements.--
       (1) In general.--Notwithstnding any other law and subject 
     to the provisions of this Act, including paragraphs (2) and 
     (3), affected Federal agencies may waive, for a period of 
     time not to exceed 5 years from the date the Board receives a 
     signed memorandum of understanding, any statutory or 
     regulatory requirement of an eligible Federal assistance 
     program included in an approved flexibility plan of 
     an eligible applicant if that waiver is--
       (A) necessary for implementation of the flexibility plan;
       (B) not disapproved by the Board; and
       (C) necessary to effectively achieve the purposes of this 
     Act described in section 3 by adhering to the conditions 
     described in section 6 and 7.
       (2) Effective period of waiver.--A waiver granted under 
     this section shall terminate on the earlier of--
       (A) the expiration of a period specified by the affected 
     Federal agency not to exceed five years from the date the 
     Board receives the signed memorandum of understanding; or
       (B) any date on which the flexibility plan for which the 
     waiver is granted ceases to be effective.
       (3) Restriction on waiver authority.--An affected Federal 
     agency may not grant a waiver for a statutory or regulatory 
     requirement of an eligible Federal financial assistance 
     program requested under this section that--
       (A) may be waived under another provision of law except in 
     accordance with the requirements and limitations imposed by 
     that other provision of law;
       (B) enforces statutory or constitutional rights of 
     individuals including the right to equal access and 
     opportunity in housing and education, including any 
     requirement under the Individuals with Disabilities Education 
     Act (20 U.S.C. 1400 et seq);
       (C) enforces any civil rights that prohibit discrimination 
     on the basis of race, color, religion, sex, national origin, 
     age, handicap, or disability;
       (D) protects public health and safety, the environment, 
     labor standards, worker rights, health and pension benefits 
     and worker health safety;
       (E) provides for a maintenance of effort, matching share or 
     prohibition on supplanting; or
       (F) grants any person a cause of action.

     SEC.   08. IMPLEMENTATION, AMENDING AND TERMINATION OF 
                   APPROVED FLEXIBILITY PLANS.

       (a) Implementation.--
       (1) The Board, in consultation with the Director, shall 
     issue guidance to implement this Act within 180 days after 
     the date of enactment of this Act.
       (2) Notwithstanding any other law, any service or benefit 
     that is provided under an eligible Federal financial 
     assistance program included in an approved flexibility plan 
     shall be paid and administered in the manner specified in the 
     approved flexibility plan.
       (3) The authority provided under this Act to waive 
     provisions of grant agreements may be exercised only as long 
     as the funds provided for the grant program in question are 
     available for obligation by the Federal Government.

[[Page S10494]]

       (b) Amending of Flexibility Plan.--
       (1) In the event that an eligible applicant--
       (A) desires an amendment to an approved flexibility plan in 
     order to better meet the purposes of this Act; or
       (B) requires an amendment to ensure continued 
     implementation of an approved flexibility plan, the applicant 
     shall--
       (i) submit the proposed amendment to the Board for review 
     and approval; and
       (ii) upon approval, enter into a revised memorandum of 
     understanding with the affected Federal agency.
       (2) Approval by the Board and, when appropriate, affected 
     Federal agency, shall be based upon the same conditions 
     required for approval of a flexibility plan.
       (v) Termination of Plan by Board.--
       (A) In general.--The Board shall terminate an approved 
     flexibility plan, if, after consultation with the affected 
     Federal agencies, the Board determines that--
       (i) the applicant of the approved flexibility plan is 
     unable to meet the commitments under this Act; or
       (ii) audit or oversight activities determine there has been 
     fraud or abuse involving Federal funds under the plan.
       (B) Transition period.--In terminating an approved 
     flexibility plan under this paragraph, the Board shall allow 
     a reasonable period of time for appropriate Federal agencies 
     and eligible applicants to resume administration of Federal 
     programs that are eligible Federal financial assistance 
     programs included in the plan.
       (2) Revocation of waiver.--
       (A) The Board may recommend that an effected Federal 
     agency, and an affected Federal agency may, revoke a waiver 
     under section 7(f) if the applicant of the approved 
     flexibility plan fails to--
       (i) comply with the requirements of the plan;
       (ii) make acceptable progress towards achieving the goals 
     and performance criteria set forth in the plan; or
       (iii) use funds in accordance with the plan.
       (B) Affected Federal agencies shall revoke all waiver 
     issued under section 7(f) for a flexibility plan if the Board 
     terminates the plan.
       (C) Explanation required.--In the case of termination of a 
     plan or revocation of a waiver, as appropriate, the Board or 
     affected Federal agencies shall provide for the former 
     eligible applicant a written justification of the reasons for 
     termination or revocation.

     SEC.   09 EVALUATIONS AND REPORTS.

       (a) Approved Applicants.
       (1) In general.--An applicant of an approved flexibility 
     plan, in accordance with guidance issued by the Board, 
     shall--
       (A) submit any reports on and cooperate in any audits of 
     the implementation of its approved flexibility plan; and
       (B) monitor the effect implementation of the plan has had 
     on--
       (i) individuals who receive services and benefits under the 
     plan;
       (ii) communities in which those individuals live;
       (iii) costs of administering and providing assistance under 
     eligible Federal financial assistance programs included in 
     the plan; and
       (iv) performance of the eligible Federal financial 
     assistance programs included in the plan compared to the 
     performance of such programs prior to implementation of the 
     plan.
       (2) Initial 1-year report.--No later than 90 days after the 
     end of the 1-year period beginning on the date the plan takes 
     effect, and annually thereafter, the approved applicant, 
     respectively, shall submit to the Board a report on the 
     principal activities, achievements, and shortcomings under 
     the plan during the period covered by the report, 
     comparing those achievements and shortcomings to the goals 
     and performance criteria included in the plan under 
     section 6(c)(3).
       (3) Final Report.--No later than 120 days after the end of 
     the effective period of an approved flexibility plan, the 
     approved applicant shall submit to the Board a final report 
     on implementation of the plan, including a full evaluation of 
     the successes and shortcomings of the plan and the effects of 
     that implementation on individuals who receive benefits under 
     the eligible Federal financial assistance programs under the 
     plan.
       (b) Board.--No later than two years after the date of the 
     enactment of this Act, and annually thereafter, the Board 
     shall submit a report to the President and the Congress on 
     the Federal statutory and regulatory requirements of eligible 
     Federal financial assistance programs that are most 
     frequently waived under section 7(f) with respect to approved 
     flexibility plans. The President shall review the report and 
     identify those statutory and regulatory requirements that the 
     President determines should be amended or repealed.
       (c) Director.--Two years after this Act goes into effect, 
     and no less than 60 days after repeal of this Act, the 
     Director shall report on its progress in achieving the 
     functions outlined in section 5(d).
       (c) General Accounting Office.--
       (1) Beginning on the date of enactment of this Act, the 
     General Accounting Office shall--
       (A) evaluate the effectiveness of eligible Federal 
     financial assistance programs included in flexibility plans 
     approved pursuant to this Act compared with such programs not 
     included in a flexibility plan;
       (B) establish and maintain, through the effective date of 
     this statute, a program for the ongoing collection of data 
     and analysis of each eligible Federal financial assistance 
     program included in an approved flexibility plan.
       (2) No later than January 1, 2005, the General Accounting 
     Office shall submit a report to Congress and the President 
     that describes and evaluates the results of the evaluations 
     conducted pursuant to paragraphs (1) and any recommendations 
     on how to improve flexibility in the administration of 
     eligible Federal financial assistance programs.
       (d) Advisory Commission on Intergovernmental Relations.--No 
     later than January 1, 2005, the Advisory Commission on 
     Intergovernmental Relations shall submit a report to the 
     Congress and President that--
       (1) describes the extent to which this Act has improved the 
     ability of State, local and tribal governments, particularly 
     smaller units of government, to make more effective use of 
     two or more Federal financial assistance programs included in 
     a flexibility plan;
       (2) evaluates if or how the flexibility provided by this 
     Act has improved the system of Federal financial assistance 
     to State, local and tribal governments, and enabled 
     governments and community organizations to work together more 
     effectively; and
       (3) includes recommendations with respect to flexibility 
     for State, local and tribal governments.

     SEC.   010. REPEAL.

       This Act is repealed on January 1, 2005.

     SEC.   011. DELIVERY DATE OF FEDERAL CONTRACT, GRANT, AND 
                   ASSISTANCE APPLICATIONS.

       (a) General Rule.--
       (1) Date of delivery.--The Director of the Office of 
     Management and Budget shall direct all Federal agencies to 
     develop a consistent policy relating to Federal contract, 
     grant, and other assistance applications which stipulates 
     that if any bid, grant application, or other document 
     required to be filled within a prescribed period or on or 
     before a prescribed date is, after such period or such date, 
     delivered by United States mail to the agency, officer, or 
     office with which such bid, grant application, or other 
     document is required to be made, the date of the United 
     States postmark stamped on the cover in which such bid, grant 
     application, or other document is mailed shall be deemed to 
     be the date of delivery, as the case may be.
       (2) Mailing requirements.--This subsection applies only 
     if--
       (A) the postmark date falls within the prescribed period or 
     on or before the prescribed date for the filing (including 
     any extension granted for such filing) of the bid, grant 
     application, or other document; and
       (B) the bid, grant application, or other document was, 
     within the time prescribed in subparagraph (A), deposited in 
     the mail in the United States in an envelope or other 
     appropriate wrapper, postage prepaid, properly addressed to 
     the agency, officer, or office with which the bid, grant 
     application, or other document is required to be made.
       (b) Postmarks.--This section shall apply in the case of 
     postmarks not made by the United States Postal Service only 
     if and to the extent provided by the regulations prescribed 
     by Federal agencies.
       (c) Registered and Certified Mailing.--
       (1) Registered mail.--For purposes of this section, if any 
     such bid, grant application, or other document is sent by 
     United States registered mail--
       (A) such registration shall be prima facie evidence that 
     the bid, grant application, or other document was delivered 
     to the agency, officer, or office to which addressed; and
       (B) the date of registration shall be deemed the postmark 
     date.
       (2) Certified mail.--Federal agencies are authorized to 
     provide by regulations the extent to which the provisions of 
     paragraph (1) of this subsection with respect to prima facie 
     evidence of delivery and the postmark date shall apply to 
     certified mail.
       (d) Effective Date.--This section shall take effect on the 
     date of the enactment of this Act and shall remain in effect 
     notwithstanding section 10 of this Act.
                                 ______
                                 

                      HUTCHISON AMENDMENT NO. 5287

  (Ordered to lie on the table.)
  Mrs. HUTCHISON submitted an amendment intended to be proposed by her 
to the bill, H.R. 3756, supra; as follows:

       On page 64, strike lines 14 through 18 and add in lieu 
     thereof:

     SEC.   . FUNDING TO MEET TREATY OBLIGATIONS.

       (1) Budget authority to fund border stations.--
       (a) New budget authority for leasing agreements with State 
     and local governments and private sponsors for construction 
     by the General Services Administration of border facilities 
     on the borders of the United States with Canada or Mexico, 
     constructed pursuant to increased cross-border trade arising 
     from treaties signed by the United States and ratified by the 
     U.S. Senate, shall be treated as budget authority in the 
     fiscal year in which the budget authority is obligated for 
     construction, without regard to section 3328(a)(1)(B) of 
     title 31, United States Code;
       (c) an agreement entered into under such provisions shall 
     provide for the title to the property and facilities to vest 
     in the United States on or before the expiration of the 
     contract term, on fulfillment of the terms and conditions of 
     the agreement.
       (2) Grants.--

[[Page S10495]]

       (a) The General Services Administration shall make grants 
     with respect to any State and local governments and private 
     sponsors for initiation of construction by the General 
     Services Administration of new border facilities on the 
     borders of the United States with Canada or Mexico, pursuant 
     to (1)(a), the total cost of which in fiscal year 1997 shall 
     not exceed $2,150,000. The Administrator of G.S.A. shall 
     submit to the Congress a prioritized list of border projects 
     consistent with this section.
       (b) Limitation on Percent of Cost.--Federal funding 
     provided under (2)(a) may not exceed 50% of the total cost of 
     the activity with respect to which such a grant is provided.
       (c) funds not granted by the GSA during fiscal year 1997 
     pursuant to (2) shall be transferred to the General Fund of 
     the Treasury for deficit reduction.
                                 ______
                                 

                        BOXER AMENDMENT NO. 5288

  (Ordered to lie on the table.)
  Mrs. BOXER submitted an amendment intended to be proposed by her to 
the bill, H.R. 3756, supra; as follows:

       On page 59, line 23, after ``$5,600,000'' insert ``: 
     Provided, That--
       (1) the Congress finds that--
       (A) the Gun Control Act of 1968 prohibited the importation 
     of handguns that were easily concealable, poorly constructed, 
     and lacking important safety features;
       (B) the ban on the importation of such handguns (commonly 
     termed ``junk guns'') did not prohibit the domestic 
     manufacture of junk guns; and
       (C) available data are insufficient to determine which 
     handgun models currently manufactured in America are junk 
     guns that fail to meet the safety and performance standards 
     required of imported handguns;
       (2) the Bureau of Alcohol, Tobacco and Firearms shall 
     conduct a study listing the firearms legally manufactured in 
     the United States that could not legally be imported under 
     the restrictions of section 925(d)(3) of title 18, United 
     States Code, and prepare a report on the study that shall be 
     transmitted to the Congress no later than 1 year after the 
     date of enactment of this Act;
       (3) notwithstanding the provisions of section 102(3)(f) of 
     title 3, United States Code, if funds are not required for 
     Presidential transition, $2,000,000 of the amount 
     appropriated under this heading shall be made available to 
     the Bureau of Alcohol, Tobacco and Firearms to conduct the 
     study and report described in paragraph (2); and
       (4)(A) if funds are required for Presidential transition, 
     the study described in paragraph (2) shall not be required 
     unless the Congress provides funding for that purpose; and
       (B) it is the sense of the Senate that if funds are 
     required for Presidential transition, alternate means of 
     funding the study described in paragraph (2) should be 
     provided.
                                 ______
                                 

                       NICKLES AMENDMENT NO. 5289

  (Ordered to lie on the table.)
  Mr. NICKLES submitted an amendment intended to be proposed by him to 
the bill, H.R. 3756, supra; as follows:

       At the appropriate place, insert the following:

     SEC.   . REQUIREMENT FOR THE DISTRICT OF COLUMBIA TO COMPLY 
                   WITH 5-YEAR TIME LIMIT FOR WELFARE ASSISTANCE.

       (a) In General.--Not later than 10 days after the date of 
     the enactment of this Act, the Secretary of Health and Human 
     Services (in this section referred to as the ``Secretary'') 
     shall rescind approval of the waiver described in subsection 
     (b). Upon such rescission, the Secretary shall immediately 
     approve such waiver in accordance with subsection (c).
       (b) Waiver Described.--The waiver described in this 
     subsection is the approval by the Secretary on August 19, 
     1996, of the District of Columbia's Welfare Reform 
     Demonstration Special Application for waivers, which was 
     submitted under section 1115 of the Social Security Act, and 
     entitled the District of Columbia's Project on Work, 
     Employment, and Responsibility (POWER).
       (c) Condition for Waiver Approval.--The Secretary shall not 
     approve any part of the waiver described in subsection (b) 
     that relates to a waiver of the requirement under section 
     408(a)(7) of the Social Security Act to not use any part of 
     the grant made under section 403 of such Act to provide 
     assistance to a family that includes an adult who has 
     received assistance under any State program funded under part 
     A of title IV of such Act attributable to funds provided by 
     the Federal Government for 60 months (whether or not 
     consecutive).

     SEC.   . NO WAIVER OF 5-YEAR TIME LIMIT FOR WELFARE 
                   ASSISTANCE.

       Beginning on and after the date of the enactment of this 
     Act, the Secretary of Health and Human Services shall not 
     approve any application submitted under section 1115 of the 
     Social Security Act, or under any other provision of law, for 
     a waiver of the requirement under section 408(a)(7) of such 
     Act to not use any part of the grant made under section 403 
     of such Act to provide assistance to a family that includes 
     an adult who has received assistance under any State program 
     funded under part A of title IV of such Act attributable to 
     funds provided by the Federal Government for 60 months 
     (whether or not consecutive).
                                 ______
                                 

                        KERRY AMENDMENT NO. 5290

  (Ordered to lie on the table.)
  Mr. KERREY submitted an amendment intended to be proposed by him to 
the bill, H.R. 3756, supra; as follows:

       Insert at the appropriate place: ``Provided further, That 
     from funds made available for Basic Repairs and Alterations, 
     $2,000,000 shall be transferred to the Policy and Operations 
     appropriation''.
                                 ______
                                 

                       NICKLES AMENDMENT NO. 5291

  (Ordered to lie on the table.)
  Mr. NICKLES submitted an amendment intended to be proposed by him to 
the bill, H.R. 3756, supra; as follows:

       At the appropriate place in the bill, insert the following 
     new sections:

     SEC.  . SHORT TITLE.

       This Act may be cited as the ``Workers Political Freedom 
     Act of 1996''.

     SEC.  . WORKERS' POLITICAL RIGHTS.

       (a) Unfair Labor Practices by Employers Prohibited.--
     Section 8(a) of the National Labor Relations Act (29 U.S.C. 
     158(a)) is amended by--
       (1) striking the period at the end of paragraph (5) and 
     inserting in lieu thereof ``; or''; and
       (2) adding after paragraph (5) the following new paragraph;
       ``(6) to receive from an employee dues, initiation fees, 
     assessments, or other payments as a condition of employment 
     for use for political activities in which the employer is 
     engaged unless with the prior written voluntary authorization 
     of the employee.''
       (b) UNFAIR LABOR PRACTICES BY LABOR ORGANIZATIONS 
     PROHIBITED.--Section 8(b) of the National Labor Relations Act 
     (29 U.S.C. 158(b)) is amended by--
       (1) striking ``and'' at the end of paragraph (6);
       (2) striking the period at the end of paragraph (7) and 
     inserting in lieu thereof a semicolon; and
       (3) adding after paragraph (7) the following new paragraph;
       ``(8) to receive from a member or nonmember dues, 
     initiation fees, assessments, or other payments as a 
     condition of membership in the labor organization or as a 
     condition of employment for use for political activities in 
     which the labor organization is engaged unless with the prior 
     written voluntary authorization of the member or nonmember: 
     Provided, That nothing in this paragraph shall be construed 
     to deprive the courts of their concurrent jurisdiction over 
     claims that a labor organization's use of the monies 
     specified in this paragraph, or over the procedures for 
     objecting to such spending, breaches the duty of fair 
     representation.''

     SEC.  . EFFECTIVE DATE.

       The amendments made by this Act shall apply the date of 
     enactment of this Act.
                                 ______
                                 

                      ASHCROFT AMENDMENT NO. 5292

  (Ordered to lie on the table.)
  Mr. ASHCROFT submitted an amendment intended to be proposed by him to 
the bill, H.R. 3756, supra; as follows:

       At the appropriate place add the following new title:
                TITLE ____--WORKING FAMILIES FLEXIBILITY

     SEC. ____01. SHORT TITLE.

       This title may be cited as the ``Working Families 
     Flexibility Act of 1996''.

     SEC. ____02. COMPENSATORY TIME.

       Subsection (o) of section 7 of the Fair Labor Standards Act 
     of 1938 (29 U.S.C. 207) is amended--
       (1) by redesignating paragraphs (6) and (7) as paragraphs 
     (8) and (9), respectively; and
       (2) by striking paragraphs (1) through (5) and inserting 
     the following:
       ``(1) An employee may receive, in accordance with this 
     subsection and in lieu of monetary overtime compensation, 
     compensatory time off at a rate not less than one and one-
     half hours for each hour of employment for which overtime 
     compensation is required by this section.
       ``(2) An employer may provide compensatory time under 
     paragraph (1) only--
       ``(A) pursuant to--
       ``(i) applicable provisions of a collective bargaining 
     agreement, memorandum of understanding, or any other 
     agreement between the employer and representatives of such 
     employees; or
       ``(ii) in the case of employees who are not represented by 
     a collective bargaining agent or other representative 
     designated by the employee, an agreement or understanding 
     arrived at between the employer and employee before the 
     performance of the work involved if such agreement or 
     understanding was entered into knowingly and voluntarily by 
     such employee;
       ``(B) in the case of an employee who is not an employee of 
     a public agency, if such employee has affirmed, in a written 
     or otherwise verifiable statement that is made, kept, and 
     preserved in accordance with section 11(c), that the employee 
     has chosen to receive compensatory time in lieu of monetary 
     overtime compensation; and
       ``(C) if the employee has not accrued compensatory time in 
     excess of the limit applicable to the employee prescribed by 
     paragraph (4) or (5).


[[Page S10496]]


     In the case of employees described in subparagraph (A)(ii) 
     who are employees of a public agency and who were hired 
     before April 15, 1986, the regular practice in effect on such 
     date with respect to compensatory time off for such employees 
     in lieu of the receipt of monetary overtime compensation, 
     shall constitute an agreement or understanding described in 
     such subparagraph. Except as provided in the preceding 
     sentence, the provision of compensatory time off to employees 
     of a public agency for hours worked after April 14, 1986, 
     shall be in accordance with this subsection. An employer may 
     provide compensatory time under paragraph (1) to an employee 
     who is not an employee of a public agency only if an 
     agreement or understanding described in subparagraph (A)(ii) 
     was not a condition of employment.
       ``(3) An employer that is not a public agency and that 
     provides compensatory time under paragraph (1) to employees 
     shall not directly or indirectly intimidate, threaten, or 
     coerce or attempt to intimidate, threaten, or coerce any 
     employee for the purpose of--
       ``(A) interfering with such employee's rights under this 
     subsection to request or not request compensatory time off in 
     lieu of payment of monetary overtime compensation;
       ``(B) requiring any employee to accept such compensatory 
     time in lieu of monetary overtime compensation; or
       ``(C) requiring any employee to use such compensatory time 
     on or by a date determined by such employer.
       ``(4)(A) An employee who is not an employee of a public 
     agency may accrue not more than 240 hours of compensatory 
     time.
       ``(B)(i) Not later than January 31 of each calendar year, 
     the employer of an employee described in subparagraph (A) 
     shall provide monetary compensation, for any compensatory 
     time off accrued during the preceding calendar year that was 
     not used prior to December 31 of the preceding calendar year 
     at the rate prescribed by paragraph (6). The employer of an 
     employee described in subparagraph (A) may designate and 
     communicate to the employee a 12-month period other than the 
     calendar year, in which case such compensation shall be 
     provided not later than 31 days after the end of such 12-
     month period.
       ``(ii) The employer of an employee described in 
     subparagraph (A) may provide monetary compensation for the 
     employee's unused compensatory time in excess of 80 hours at 
     any time after giving the employee at least 30 days' notice. 
     Such compensation shall be provided at the rate prescribed by 
     paragraph (6).
       ``(iii) An employer that is not a public agency and that 
     has adopted a policy offering compensatory time to employees 
     of the employer may discontinue such policy upon giving 
     employees 30 days' notice.
       ``(iv) An employee who is not an employee of a public 
     agency may withdraw an agreement or understanding described 
     in paragraph (2)(A)(ii) at any time.
       ``(C) An employee who is not an employee of a public agency 
     may request in writing that monetary compensation be 
     provided, at any time, for all compensatory time accrued that 
     has not yet been used. Within 30 days after receiving the 
     written request, the employer of the employee shall provide 
     the employee the monetary compensation due in accordance with 
     paragraph (6).
       ``(5)(A) If the work of an employee of a public agency for 
     which compensatory time may be provided included work in a 
     public safety activity, an emergency response activity, or a 
     seasonal activity, the employee engaged in such work may 
     accrue not more than 480 hours of compensatory time for hours 
     worked by such employee after April 15, 1986. If the work of 
     an employee of a public agency for which compensatory time 
     may be provided does not include a public safety activity, an 
     emergency response activity, or a seasonal activity, the 
     employee engaged in such work may accrue not more than 240 
     hours of compensatory time for hours worked after April 15, 
     1986. Any employee of a public agency who, after April 15, 
     1986, has accrued 480 or 240 hours, as the case may be, of 
     compensatory time off shall, for additional overtime hours of 
     work, be paid monetary overtime compensation.
       ``(B) If monetary compensation is paid to an employee 
     described in subparagraph (A) for accrued compensatory time 
     off, such compensation shall be paid at the regular rate 
     earned by the employee at the time the employee receives such 
     payment.
       ``(6)(A) An employee of an employer that is not a public 
     agency who has accrued compensatory time off authorized to be 
     provided under paragraph (1) shall, upon the voluntary or 
     involuntary termination of employment, be paid for the unused 
     compensatory time at a rate of compensation not less than--
       ``(i) the average regular rate received by such employee 
     during the period during which the compensatory time was 
     accrued; or
       ``(ii) the final regular rate received by such employee;

     whichever is higher.
       ``(B) An employee of an employer that is a public agency 
     who has accrued compensatory time off authorized to be 
     provided under paragraph (1) shall, upon the voluntary or 
     involuntary termination of employment, be paid for the unused 
     compensatory time at a rate of compensation not less than--
       ``(i) the average regular rate received by such employee 
     during the last 3 years of the employee's employment; or
       ``(ii) the final regular rate received by such employee;
     whichever is higher.
       ``(C) Any payment owed to an employee under this subsection 
     for unused compensatory time shall be considered unpaid 
     overtime compensation.
       ``(7) An employee--
       ``(A) who has accrued compensatory time off authorized to 
     be provided under paragraph (1); and
       ``(B) who has requested the use of such compensatory time;

     shall be permitted by the employee's employer to use such 
     time within a reasonable period after making the request if 
     the use of the compensatory time does not unduly disrupt the 
     operations of the employer.''.

     SEC. ____03. REMEDIES.

       Section 16 of the Fair Labor Standards Act of 1938 (29 
     U.S.C. 216) is amended--
       (1) in subsection (b), by striking ``(b) Any employer'' and 
     inserting ``(b) Except as provided in subsection (f), any 
     employer''; and
       (2) by adding at the end the following:
       ``(f) An employer that is not a public agency and that 
     violates section 7(o)(3) shall be liable to the employee 
     affected in an amount equal to--
       ``(1) the product of the rate of compensation (determined 
     in accordance with section 7(o)(6)(A)) and the number of 
     hours of compensatory time involved in the violation that was 
     initially accrued by the employee; and
       ``(2) as liquidated damages--
       ``(A) an additional amount equal to such product; minus
       ``(B) the product of such rate of compensation and the 
     number of hours of compensatory time involved in the 
     violation that was used by the employee.''.

     SEC. ____04. NOTICE TO EMPLOYEES.

       Not later than 30 days after the date of the enactment of 
     this Act, the Secretary of Labor shall revise the materials 
     the Secretary provides, under regulations published at 
     section 516.4 of title 29, Code of Federal Regulations (as in 
     effect on August 1, 1996), to employers concerning a notice 
     explaining the Fair Labor Standards Act of 1938 to employees 
     so that such notice reflects the amendments made to such Act 
     by this title.
                                 ______
                                 

                DASCHLE (AND BREAUX) AMENDMENT NO. 5293

  (Ordered to lie on the table.)
  Mr. DASCHLE (for himself and Mr. Breaux) submitted an amendment 
intended to be proposed by them to the bill, H.R. 3756, supra; as 
follows:

       In the amendment, strike all after the first word and 
     insert:
       The Senate finds that over 40 states have received welfare 
     waivers from the Department of Human Services to promote work 
     and personal responsibility leading to self-sufficiency;
       It is the sense of the Senate that either all of the 
     waivers or none of the waivers should remain in place until 
     their expiration date.
                                 ______
                                 

                      COVERDELL AMENDMENT NO. 5294

  (Ordered to lie on the table.)
  Mr. COVERDELL submitted an amendment intended to be proposed by him 
to the bill, H.R. 3756, supra; as follows:

       At the appropriate place in the bill, insert the following 
     new section:

     SEC.   . PROVISIONS RELATED TO THE USE OF A CONTROLLED 
                   SUBSTANCE IN FURTHERANCE OF THE COMMISSION OR 
                   ATTEMPTED COMMISSION OF A FELONY.

       (a) In General.--Section 401 (b) of the Controlled 
     Substance Act is amended by adding at the end the following 
     new section.

     ``SEC.   . USE OF A CONTROLLED SUBSTANCE TO COMMIT A FELONY.

       ``Any person who, in furtherance of the commission or 
     attempted commission of a felony under Federal or State law, 
     administers or causes to be administered to any person, 
     without the consent of that person, an imported controlled 
     substance (including flunitrazepam) shall, in addition to any 
     punishment provided for that felony, be imprisoned not more 
     than 20 years, fined under title 18, United States Code, or 
     both.''.
       (b) Federal and State Coordination.--The United States 
     Attorney shall coordinate the prosecution of any defendant 
     charged with an offense under this section with State and 
     local law enforcement agencies in order to ensure swift and 
     appropriate punishment.
                                 ______
                                 

                        BIDEN AMENDMENT NO. 5295

  Mr. BIDEN proposed an amendment to the bill, H.R. 3756, supra; as 
follows:

       At the appropriate place in the bill, insert the following:

     SEC.   . RESCHEDULING OF FLUNITRAZEPAM INTO SCHEDULE I OF THE 
                   CONTROLLED SUBSTANCES ACT.

       Notwithstanding sections 201 and 202 (a) and (b) of the 
     Controlled Substances Act (21 U.S.C. 811, 812 (a), (b)), 
     respecting the scheduling of controlled substances, the 
     Attorney General shall, by order--
       (1) transfer flunitrazepam from schedule IV of such Act to 
     schedule I of such Act; and
       (2) add ketamine hydrochloride to schedule II of such Act.

     SEC.   . PENALTY FOR ADMINISTERING A CONTROLLED SUBSTANCE TO 
                   FACILITATE A FELONY.

       (a) In General.--The Controlled Substances Act (21 U.S.C. 
     100 et. seq.) is amended

[[Page S10497]]

     by adding at the end of part D the following new section:


  ``penalty for administering a controlled substance to facilitate a 
                                 felony

       ``Sec. 423. Whoever administers a controlled substance to a 
     person without that person's knowledge for the purpose of 
     facilitating the commission or attempted commission of a 
     felony under Federal or State law shall, in addition to any 
     other penalty imposed, be imprisoned for up to 10 years, 
     fined as provided under title 18, United States Code, or 
     both.''.
       (b) Federal and State Coordination.--The United States 
     Attorney shall coordinate the prosecution of any defendant 
     charged with an offense under section 423 of the Controlled 
     Substances Act with State and local law enforcement agencies.
       (c) Conforming Amendment.--The table of sections for part D 
     of the Controlled Substances Act is amended by inserting 
     after the item relating to section 422 the following new 
     item:

``Sec. 423. Penalty for administering a controlled substance to 
              facilitate a felony.''
                                 ______
                                 

                   KENNEDY AMENDMENTS NOS. 5296-5308

  (Ordered to lie on the table.)
  Mr. KENNEDY submitted 13 amendments intended to be proposed by him to 
the bill, H.R. 3756, supra; as follows:

                           amendment No. 5296

       Insert at the appropriate place in the Kassebaum amendment 
     the following amendments:
       ``The Senate recedes with an amendment inserting
       ``(a) Functions.--The functions of the local workforce 
     development board shall include--
       ``(1) Local workforce development plan.--Each local 
     workforce development board shall develop a comprehensive 
     multi-year strategic plan that is consistent with the goals 
     the plan established by the State under section     . Such 
     plan shall include the following information--
       ``(A) an identification of the workforce development needs 
     of local industries, job seekers, and workers;
       ``(B) a description of workforce development activities to 
     be carried out in the local area as required under section     
      (reference to employment and training section) and section   
        (reference to at-risk youth section), that with programs 
     established under Wagner-Peyser Act, contribute to a coherent 
     workforce development system;
       ``(C) a description of the local benchmarks applicable to 
     the local area as a whole negotiated with the State 
     consistent with the State plan pursuant to section     , and 
     the benchmarks to be used by the local board for measuring 
     the performance of local service providers and the 
     performance of the one-stop career center system;
       ``(D) a description of the process negotiated with the 
     Governor by the local board in coordination with local 
     elected officials that the local board will use to establish 
     or certify one-stop career centers and service providers in 
     the local workforce development area;
       ``(E) a description of the process that the local board 
     will use to--
       ``(i) ensure that the most effective and efficient service 
     providers are chosen;
       ``(ii) ensure that local providers continue to meet the 
     labor market needs of local employers and program 
     participants; and
       ``(iii) fully utilize activities authorized under the 
     Wagner-Peyser Act.
       ``(F) a description of how the local board will obtain the 
     continued input of the chief elected official or officials in 
     the local area in carrying out its duties;
       ``(G) a description of how the local workforce development 
     board will obtain the active and continuous participation of 
     business and industry, representatives of employees, local 
     educational agencies, postsecondary education institutions, 
     adult education and literacy providers, local service 
     providers, community-based organizations, parents and 
     consumers (including individuals with disabilities, older 
     workers, and veterans) in the workforce development area;
       ``(H) a description of the steps the local board will take 
     to work with local educational agencies, postsecondary 
     educational institutions, adult education and literacy 
     providers, and others to address the local employment, 
     education, and training needs;
       ``(I) a description of the process used to fully involve 
     business, labor organizations, the local education community 
     (including teachers), parents and community-based 
     organizations in the development and implementation of at-
     risk youth activities, including a description of the process 
     used to ensure that the most effective and efficient 
     providers of services are chosen; and
       ``(J) such other information as the Governor may require.
       ``(2) Identificaiton of qualified training providers.--
     Consistent with the requirements established under section     
     , the local board is authorized to work with the State in the 
     identification of qualified providers of training in the 
     workforce development area, for participation in employment 
     and training activities established under section     .''
       Note 192a (on local board developing budget, with approval 
     by local elected officials):
       Strike the staff recommendation (which proposes that the 
     House recede from its provision) and insert in lieu thereof 
     the following: ``The Senate recedes with technical 
     corrections to cross-references.''
       Note 192b (on local board oversight responsibilities, in 
     partnership with local elected officials):
       Strike the staff recommendation (which proposes that the 
     House recede from its provision) and insert in lieu thereof 
     the following: ``The Senate recedes''.
       Note 193 (relating to the role of local elected officials):
       Strike the staff recommendation (which proposes that the 
     House recede with an amendment modifying the language) and 
     insert in lieu thereof the following: ``The House recedes 
     with an amendment, as follows:
       ``Coordination with local elected officials.--The local 
     board shall--
       ``(A) develop the local workforce development plan, in 
     coordination with the appropriate chief elected officials of 
     units of general local government in the workforce 
     development area;
       ``(B) submit the local workforce development plan to such 
     appropriate chief elected officials for approval or 
     modifications, allowing not less than 30 days for such 
     consideration; and
       ``(C) include acceptable modifications and transmit any 
     additional recommendations by any such chief elected 
     official, as part of the submission of the local workforce 
     development plan to the Governor.''
       Note 194 (on local board receiving and disbursing training 
     funds or designating fiscal agent):
       Strike the staff recommendation (which proposes that the 
     House recede from its provision) and insert in lieu thereof 
     the following: ``The Senate recedes.''
       Note 194a (relating to employment of staff for the local 
     board):
       Strike the staff recommendation (which proposes that the 
     House recede from its provision) and insert in lieu thereof 
     the following: ``The Senate recedes.''
       Note 195 (relating to prohibition of the local board 
     operating programs itself):
       Strike the staff recommendation (which proposes that the 
     Senate recede with an amendment containing new language) and 
     insert in lieu thereof the following: ``The Senate recedes 
     with amendments to insert the word `directly' before the word 
     `operate' in the first sentence of the House provision, and 
     to strike the second sentence of the House provision.''
                                                                    ____


                           Amendment No. 5297

       Insert at the appropriate place in the Kassebaum amendment 
     the following amendments:
       ``The Senate recedes with an amendment as follows.''
       ``Special rule.--With respect to adult education 
     activities, the State shall ensure the expenditure for adult 
     education and literacy of an amount at least equal to the 
     amount the State received under section 313 of the Adult 
     Education Act for adult education activities in FY 1995. For 
     any fiscal year in which funding for adult and literacy 
     activities under section      is less than the amount 
     received by the State in FY 1995, the state shall use 
     sufficient funds under the flex account under section      to 
     satisfy the requirements of this provision.
                                                                    ____


                           Amendment No. 5298

       Insert at the appropriate place in the Kassebaum amendment 
     the following amendments:
       Note 210 (relating to summer jobs program):
       Strike the staff recommendation (which proposes that the 
     Senate recede from its position) and insert in lieu thereof 
     the following: ``The House recedes with an amendment as 
     follows:
       ``Subsection   . Summer Jobs Program.--Each State shall use 
     a portion of the funds provided for at-risk youth activities 
     under this section to conduct a summer youth employment 
     program. Such program shall provide worksite learning 
     opportunities for at-risk youth and be linked to year-round 
     education and training activities provided to such youth.''
       ``(A) For purposes of paragraph (1)(A), the term ``youth 
     living in poverty'' means an individual who--
       ``(i) is not less than age 15 or more than age 21; and
       ``(ii) is a member of a family (having one or more members) 
     with an income below the poverty line (as annually determined 
     by the Office of Management and Budget).
       ``(B) For purposes of paragraph (1)(B), the term ``youth'' 
     means an individual who is not less than age 15 or more than 
     age 21.
       ``(C) For purposes of paragraph (2) the term ``allocation 
     percentage'' means--
       ``(i) with respect to the program year preceding program 
     year 1998, the percentage that the workforce development area 
     receives of financial assistance allotted to all local areas 
     in the State under subtitle B and C of title II of the Job 
     Training Partnership Act for program year 1997; and
       ``(ii) with respect to program year 1998 and each 
     subsequent program year, the percentage that a workforce 
     development area receives under this subsection for the 
     program year.''
                                                                    ____


                           Amendment No. 5299

       Insert at the appropriate place in the Kassebaum amendment 
     the following amendments:
       ``Subsection    At-Risk Youth Substate Allocation.--

[[Page S10498]]

       ``(1) In general.--Subject to the adjustments required by 
     paragraph (2), of the amounts to be allocated within the 
     State to local workforce development boards to carry out at-
     risk youth activities--
       ``(A) two-thirds shall be allocated on the basis of the 
     relative number of youth living in poverty within each 
     workforce development area as compared to the total number of 
     youth living in poverty in the State; and
       ``(B) one-third shall be allocated on the basis of the 
     relative number of youth within each workforce development 
     area as compared to the total number of youth living in the 
     State.
       ``(2) Limitation.--No workforce development area shall be 
     allocated for any program year under paragraph (1) an amount 
     which is less than 98 percent or more than 102 percent of the 
     allocation percentage for such area for the preceding program 
     year.
       ``(3) Definitions.--''.
                                                                    ____


                           Amendment No. 5300

       Insert at the appropriate place in the Kassebaum amendment 
     the following amendments:
       (  ) Limitations on Participants.--
       (1) Finding.--Congress finds that--
       (A) the possession, distribution, and use of drugs by 
     participants in workforce employment activities should not be 
     tolerated, and that such use prevents participants from 
     making full use of the benefits extended through such 
     activities at the expense of taxpayers; and
       (B) drug testing, when conducted in accordance with 
     rigorous scientific standards and adequate safeguards, is a 
     fair and effective means of deterring drug use.
       (2) Determination.--Each Governor of a State receiving an 
     allotment under section ____ shall determine whether to 
     require local entities carrying out workforce employment 
     activities described in section ____ in the State to 
     administer drug tests. A Governor who elects to require such 
     testing shall require that the testing be administered in 
     accordance with this subsection and the Mandatory Guidelines 
     for Federal Workplace Drug Testing Programs, 53 Fed. Reg. 
     11970 (1988) (or a successor to such guidelines).
       (3) Drug tests.--Each local entity carrying out such 
     workforce employment activities in a State in which the 
     Governor has elected to require such testing (referred to in 
     this subsection as a ``covered State'') shall administer a 
     drug test--
       (A) on a random basis, to individuals who apply to 
     participate in such activities; and
       (B) to a participant in such activities, on reasonable 
     suspicion of drug use by the participant.
       (4) Eligibility of applicants.--Each local entity carrying 
     out such workforce employment activities in a covered State 
     shall provide notice to each applicant, on application, that 
     the applicant may be required to submit to a drug test 
     administered as described in paragraph (3). In order for such 
     an applicant to be eligible to participate in such workforce 
     employment activities, the applicant shall agree to submit to 
     the drug test and, if the test is administered to the 
     applicant, shall pass the test.
       (5) Eligibility of participants.--Each local entity 
     carrying out such workforce employment activities in a 
     covered State shall provide notice to each participant, on 
     selection, that the participant may be required to submit 
     to a drug test administered as described in paragraph (3). 
     In order for such a participant to be eligible to 
     participate in such workforce employment activities, the 
     participant shall agree to submit to the drug test and, if 
     the test is administered to the participant, shall pass 
     the test. If a participant refuses to submit to the drug 
     test, or fails the drug test, the local entity shall 
     dismiss the participant from participation in the 
     activities.
       (6) Reapplication.--
       (A) In general.--Except as provided in subparagraph (B), an 
     individual who is an applicant and is disqualified from 
     eligibility under paragraph (4), or who is a participant and 
     is dismissed under paragraph (5), may reapply, not earlier 
     than 6 months after the date of the disqualification or 
     dismissal, to participate in such workforce employment 
     activities. If the individual demonstrates that the 
     individual has completed a drug treatment program and passed 
     a drug test within the past 30 days, the individual may 
     participate in such activities, under the same terms and 
     conditions as apply to other applicants and participants, 
     including submission to drug tests administered as described 
     in paragraph (3).
       (B) Second disqualification or dismissal.--If the 
     individual reapplies to participate in the activities and 
     fails a drug test administered under paragraph (3) by the 
     local entity, while the individual is an applicant or a 
     participant, the local entity shall disqualify the individual 
     from eligibility for, or dismiss the individual from 
     participation in, the workforce employment activities. The 
     individual shall not be eligible to reapply for participation 
     in the activities for 2 years after such disqualification or 
     dismissal.
       (7) Appeal.--A decision by a local entity to disqualify an 
     individual from eligibility for participation in workforce 
     employment activities under paragraph (4) or (6), or to 
     dismiss a participant as described in paragraph (5) or (6), 
     shall be subject to expeditious appeal in accordance with 
     procedures established by the State in which the local entity 
     is located.
       (8) Definitions.--As used in this section:
       (A) Drug.--The term ``drug'' means a controlled substance, 
     as defined in section 102(6) of the Controlled Substance Act 
     (21 U.S.C. 802(6)).
       (B) Drug test.--The term ``drug test'' means a biochemical 
     drug test carried out by a facility that is certified in 
     accordance with the mandatory guidelines (or successor) 
     described in paragraph (2).
                                                                    ____


                           Amendment No. 5301

       Insert at the appropriate place in the Kassebaum amendment 
     the following amendments:
       (b) Recipients.--Subject to subsection (c) in making an 
     allotment under section ____ [the fed to State formula] to a 
     State, the Secretaries shall make a payment.--
       (1) to the Governor of the state for the portion described 
     in paragraphs (1) [employment and training] and (4) [at-risk 
     youth] of subsection (a), and such part of the flex account 
     as the Governor may be eligible to receive, as determined 
     under the State plan of the State submitted under subsection 
     ____; and
       (2) to the eligible agencies in the State for the portion 
     described in paragraphs (2) [vocational education] and (3) 
     [adult education] 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 of the State 
     submitted under subsection ____.
       2. Note.--Relating to eligible agency, will be inserted in 
     the General Definitions:
       (  ) the term ``eligible agency'' means--
       (A) the State educational agency and each of the State 
     agencies responsible for higher education (including 
     community colleges) that the State chooses. If no such agency 
     is so designated for vocational education activities, the 
     eligible agency for vocational education shall be the 
     individual, entity or agency in a State responsible for 
     administering or setting policies for vocational education on 
     the date of enactment of this Act.
       (B) in the case of adult education activities or 
     requirements under this title, the individual, entity, or 
     agency in a State responsible for administering or setting 
     policies for adult education activities in such State 
     pursuant to State law. If no such agency is so designated for 
     adult education activities, the eligible agency for adult 
     education shall be the individual, entity or agency in a 
     State responsible for administering or setting the policies 
     for adult education on the date of enactment of the Act.
       3. Note.--Special Rules:
       (1) Nothing in this Act shall be construed to negate or 
     supersede 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. Nothing in this Act shall be construed to interfere 
     with the authority of such agency, entity, or official to 
     enter into a contract under any provision of law.
       (2) Nothing in the [subtitle] shall be construed to 
     prohibit any individual, entity or agency in a State (other 
     than the State educational agency) that is administering 
     vocational education activities or adult education and 
     literacy activities or setting education policies consistent 
     with State law for vocational education activities or adult 
     education and literacy activities, on the day preceding the 
     date of enactment of this Act from continuing to administer 
     or set education policies consistent with authority under 
     State law for such activities under this [subtitle].
       4. Note 221b.--(formula for within-state distribution of 
     vocational education funds)
       The House recedes with an amendment as follows:
       (1) Eighty percent.--From 80 percent of such portion, each 
     local educational agency shall be allocated an amount that 
     bears the same relationship to such 80 percent as the number 
     of children aged 5-17 living in poor families. For the 
     purposes of this section, the Secretary shall determine the 
     number of children aged 5-17, inclusive, from families below 
     the poverty level on the basis of the most recent 
     satisfactory data available from the Department of 
     Commerce.''
       (2) Twenty percent.--From 20 percent of such portion, each 
     local educational agency shall be allocated an amount that 
     bears the same relationship to such 20 percent as the number 
     of students enrolled in schools and adults enrolled in 
     training programs under the jurisdiction of such local 
     educational agency for the preceding fiscal year bears to the 
     number of students enrolled in schools and adults enrolled in 
     training programs under the jurisdiction of all local 
     educational agencies in the State for such year.
       (b) Limitations.--No entity shall receive an allotment 
     under this section for a program year an amount that would 
     make the entity's percentage for the program year--
       (1) less than the product obtained by multiplying--
       (a) 0.98 and
       (b) the entity's percentage of the total State allotment 
     for the preceding program year; or
       (2) greater than the product obtained by multiplying--
       (a) 1.02 and
       (b) the entity's percentage of the total State allotment 
     for the preceding program year.''
       (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

[[Page S10499]]

     agencies involved in the process collaborated in the 
     development of the plan: and
       (B)(i)(I) information demonstrating the agreement of the 
     individuals and agencies participating in the collaborative 
     process on the State plan: or
       (II) in as case in which the Governor is unable to obtain 
     the agreement of such individuals and agencies as provided in 
     subclause (J), the comments referred to in section 
     105(c)(2)(C): and
       (2) a statement of the State goals and State benchmarks for 
     the statewide system, that includes--
       (A) information identifying the State goals and State 
     benchmarks and how the goals and benchmarks will make the 
     statewide system relevant and responsive to labor market and 
     education needs at the local level: and
       (B) 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;

     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 agencies 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 and labor organizations:
       (3) the lead State agency official for--
       (A) the State educational agency;
       (B) the eligible agency responsible for vocational 
     education;
       (C) the eligible agency responsible for adult education;
       (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.--Subject to concurrence of the 
     eligible agencies and the approval of the Secretaries for 
     alternative collaborative processes to be used for the 
     purposes of complying with subsection (a) and with the review 
     and the approval of the Secretaries--
       (1) a State may use any State collaborative process 
     (including collaboration by any council or similar entity) in 
     existence on the date of enactment of this Act that 
     substantially meets the objectives of such subsection, as 
     determined by the governor and the eligible agencies, or
       (2) if, prior to the date of enactment of this Act, a State 
     has developed a one-stop career center system or a school-to-
     work system through a collaborative process that the Governor 
     and the eligible agencies determine is substantially similar 
     to the process described in subsection (a), the State may use 
     such collaborative process.
       (c) Special Rules.--
       (1) Governor.--The Governor of a State shall have final 
     authority for determining the content of the portion of the 
     State plan described in paragraphs ____ through ____ of 
     subsection (  ) regarding employment and training activities 
     and related requirements and at-risk youth activities and 
     related requirements;
       (2) Eligible agencies.--The eligible agencies in a State 
     shall have final authority for determining the content of the 
     portion of the State plan described in paragraphs ____ 
     through ____ of subsection (  ) regarding vocational 
     education activities and related requirements and adult 
     education and literacy activities and related requirements.
       (d) Authority of Governor.--
       (1) Final authority.--If, after a reasonable effort, the 
     Governor is unable to obtain the agreement of the individuals 
     and agencies participating in the collaborative process 
     described in subsection (a) or (b) on the State plan, the 
     Governor shall have final authority to submit the State plan 
     as described in section 104, except as provided in paragraph 
     (3).
       (2) Disagreement.--The Governor shall--
       (A) provide such individuals and agencies with copies of 
     the State plan:
       (B) allow such individuals and agencies 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 agencies with copies of such plan under 
     subparagraph (A), comments on such plan; and
       (C) accept and include with the State plan any such 
     comments that--
       (i) are submitted by an eligible agency and represent 
     disagreement with such plan, with respect to vocational 
     education or adult education; or
       (ii) are submitted by another individual or agency 
     participation in the collaborative process.
       (3) Eligible agency comments.--An eligible agency, in 
     submitting comments under paragraph (2)(C)(i), may submit 
     provisions for any portion of the State plan described in 
     paragraphs (  ) through (  ) of subsection (b) (regarding 
     vocational education activities and related requirements), as 
     appropriate. The Governor shall include the provisions in the 
     plan submitted by the governor under section 104. Such 
     provisions shall be considered to be such portion of the 
     State plan.

     SEC. 106. ACCOUNTABILITY.

       To be supplied.

     SEC. 107. IDENTIFICATION OF PROVIDERS.

       What is the relationship between local entities as defined 
     in section 4 and eligible providers under this section?
       (a) Eligibility Requirements.--
       (1) In general.--To be eligible to receive funds made 
     available to a State under this title for employment and 
     training activities, a provider of training services shall 
     meet the requirements of this section. Are these requirements 
     only for providers seeking to conduct training, or any 
     employment
                                                                    ____


                           Amendment No. 5302

       Insert at the appropriate place in the Kassebaum amendment 
     the following amendments:
       ``The Senate recedes with an amendment as follows.''

     ``SEC.   . SUBMISSION AND APPROVAL OF STATE PLAN.

       (a) In General.--For a State to be eligible to receive an 
     allotment under section ____, the Governor of a State shall 
     submit to the Secretaries every third year a single, 
     comprehensive State plan (referred to in this section as a 
     ``State plan'') for the development and implementation of the 
     Statewide system and obtain the approval of such plan by the 
     Secretaries in accordance with subsection (b).
       (b) State Plan Approval.--The Secretaries of Labor and 
     Education shall jointly approve a State plan if--
       (1) the Secretaries determine that the plan contains the 
     information described in subsection (  );
       (2) the Secretaries determine that the State has prepared 
     the plan in accordance with the requirements of this Act;
       (3) the Secretaries are satisfied that the steps described 
     in the plan will achieve the purposes of the Act and are 
     substantively adequate to achieve an integrated workforce 
     development system within three years of approval of the 
     plan; and
       (4) the Secretaries have negotiated and agreed to State 
     performance indicators with the State in accordance with 
     section (  ).''
                                                                    ____


                           Amendment No. 5303

       Insert at the appropriate place in the Kassebaum amendment 
     the following amendments:

     SEC.   . PERFORMANCE ACCOUNTABILITY SYSTEM.

       (a) In General.--In order to promote high levels of 
     performance and to ensure an appropriate return on the 
     Nation's investment in the workforce development system, each 
     State receiving funds under this Act shall implement a 
     statewide performance accountability system that meets the 
     requirements of this section.
       (b) Indicators of Performance.--
       (1) In general.--Each State receiving funds under this Act 
     shall identify indicators [Note: Senate uses ``benchmarks'' 
     in lieu of ``indicators'' throughout section] of performance 
     for each of the programs established under this Act that are 
     consistent with State goals as described in the State plan in 
     accordance with section ____. Such indicators shall, at a 
     minimum, include the core indicators described in subsection 
     (f), and be expressed in an objective, quantifiable, and 
     measurable form. Such indicators may also include post-
     program surveys measuring the satisfaction of both employers 
     and program participants.
       (2) Technical definitions of core indicators.--In order to 
     ensure nationwide comparability of performance data, the 
     Secretary of Labor and the Secretary of Education, in 
     collaboration with the States and with representatives of 
     business and industry, employees, educational agencies, 
     service providers, and other interested parties, shall 
     promulgate definitions of each of the core indicators 
     described in subsection (f), to be used under this Act in 
     measuring performance.
       (c) Levels of Performance.--
       (1) Expected levels.--
       (A) Negotiation.--Prior to approval of the State plan, the 
     appropriate Secretary shall negotiate with each State the 
     levels of performance expected to be achieved by such State 
     with respect to the core indicators described in subsection 
     (f), taking into account--
       (i) whether the levels will enable each State to attain the 
     State goals;
       (ii) how the levels compare with the levels established by 
     other States;
       (iii) how the levels compare with the model levels 
     identified pursuant to paragraph (2)(A); and
       (iv) such other factors as may ensure an appropriate return 
     on the investment of Federal funds.

[[Page S10500]]

       (B) Application to local areas and entities.--Based on the 
     expected levels of performance established pursuant to 
     subparagraph (A), each State shall identify the level of 
     performance that is expected for local workforce development 
     areas and for other local administrative entities under this 
     Act. In determining such levels, the Governor or eligible 
     entity as defined in section (  ), in collaboration with 
     local agencies, may adjust the expected levels of performance 
     with respect to each local area or entity taking into account 
     specific economic, demographic, and geographic factors, and 
     the characteristics of the population to be served.
       (2) Challenging levels of performance.--
       (A) Model levels.--In order to encourage high levels of 
     performance and advance the Nation's competitiveness in the 
     global economy, the Secretary of Labor and the Secretary of 
     Education, in collaboration with the States and with 
     representatives of business and industry, employees, 
     educational agencies, service providers, and other interested 
     parties, shall identify model challenging levels of 
     performance with respect to the core indicators described in 
     subsection (f).
       (B) Negotiation.--Prior to approval of the State plan, the 
     appropriate Secretary shall negotiate with each State 
     challenging levels of performance which, if achieved, would 
     qualify such States for incentive grants under section ____. 
     Such levels shall take into account--
       (i) how the levels compare with the model levels 
     established pursuant to subparagraph (A);
       (ii) the extent to which such levels would demonstrate 
     continuous improvement in performance by such State and 
     exceed the expected levels established in paragraph (1);
       (iii) the extent to which such State successfully serves 
     the special populations identified in subsection (f)(3); and
       (iv) such other factors as may demonstrate exceptional 
     performance by the State.
       (d) Report on Performance.--
       (1) In general.--The State shall report, as required by the 
     Secretaries, the levels of performance achieved by the State 
     and by each local workforce development area and each other 
     local administrative entity with respect to the indicators 
     identified pursuant to subsection (b)(1) for each program 
     year, beginning with the second program year. The Secretaries 
     shall make such information available to the general public 
     through publication and other appropriate methods, and shall 
     disseminate State-by-State comparisons, and comparisons with 
     other industrialized nations (where appropriate).
       (2) Job placement verification system.--
       (A) In general.--In order to verify data relating to the 
     employment indicators described in subsection (f), and the 
     performance-based information submitted by providers of 
     training pursuant to section ____, each State shall establish 
     a job placement verification system. Such system shall match 
     relevant participant information with quarterly wage records 
     available through the unemployment insurance system to verify 
     employment and earnings information.
       (B) Provisions of information.--Each local entity that 
     carries out employment and training activities or education 
     activities and that receives funds under this title shall 
     provide such information as the State may require to carry 
     out the verification described in subparagraph (A).
       (C) Confidentiality.--Information obtained through the job 
     placement verification system shall be protected by the State 
     from unlawful access and be made available for use solely by 
     public officials or their agents in the administration of 
     this Act. Personal identifiers produced pursuant to 
     subparagraph (B) shall be used solely for the purpose of 
     computer matching under this section and shall not be used 
     for any other purpose or redisclosed for other purposes.
       (e) Consequences for Poor Performance.--
       (1) State consequences.--If a State fails to meet expected 
     levels of performance for a program for any program year as 
     established pursuant to subsection (c)(1)(A), the appropriate 
     Secretary shall provide technical assistance, which may 
     include assistance in the development of a performance 
     improvement plan. If such failure continues for a second 
     consecutive year, the appropriate Secretary may reduce, by 
     not more than 5 percent, the amount of the grant that would 
     (in the absence of the paragraph) be payable to the State 
     under such program for the immediately succeeding program 
     year. The Secretaries may use funds withheld under this 
     paragraph to provide, through alternative arrangements, 
     services and activities within the State that meet the 
     purpose of the Act.
       (2) Local consequences.--(A) If a local workforce 
     development area or other local administrative entity fails 
     to meet expected levels of performance for a program for any 
     program year established pursuant to subsection (c)(1)(B), 
     the Governor or the eligible as defined by section (  ), 
     shall provide technical assistance, which may include the 
     development of a performance improvement plan.
       (B) If such failure continues for a second consecutive 
     year, the Governor or the eligible entity as defined by 
     section ____ may take corrective actions, such as the 
     withholding of funds, the redesignation of a local 
     administrative entity, or such other actions as the Governor 
     or such eligible entity determines are appropriate, 
     consistent with State law, and the requirements of this Act.
       (f) Core Indicators of Performance.--
       (1) Core indicators for employment and training.--The core 
     indicators of performance for employment and training 
     programs conducted under this Act shall include:
       (A) placement in unsubsidized employment;
       (B) retention in unsubsidized employment for not less than 
     6 months and for not less than 12 months, respectively;
       (C) increases in earnings, or in earnings in combination 
     with employer-assisted benefits;
       (D) attainment of industry-recognized occupational skills, 
     including basic workplace competencies and industry-
     recognized skill standards, which may include the acquisition 
     of a skill certificate in the occupation for which the 
     individual has been prepared;
       (E) attainment of a high school diploma or general 
     equivalency diploma; and
       (F) such other measures of performance that the State may 
     wish to collect.
       (2) Core indicators for education.--The core indicators of 
     performance for education programs conducted under this Act 
     shall include:
       (A) Student mastery of academic knowledge;
       (B) Student mastery of work readiness, occupational, and 
     industry-recognized skills for students in career preparation 
     programs;
       (C) Placement in, retention in, and completion of secondary 
     education (as determined under State law) and postsecondary 
     education, and placement and retention in employment and in 
     military service; and
       (D) Mastery of the literacy, knowledge, and skills, 
     including English acquisition, adults need to be productive 
     and responsible citizens and for parents to become more 
     actively involved in the education of their children.
       (3) Additional core indicators for special populations.--In 
     addition to the core indicators described in paragraphs (1) 
     and (2), the core indicators of performance for programs 
     conducted under this Act shall include measures of the 
     success in achieving State goals for special populations, 
     including dislocated workers, low income individuals, at-risk 
     youth, individuals with disabilities, displaced homemakers, 
     welfare recipients, and individuals who are basic skills 
     deficient.

     SEC.  . MANAGEMENT INFORMATION SYSTEMS.

       Each State shall use a portion of the funds in receives for 
     administration under this Act to operate a management 
     information system in accordance with guidelines established 
     jointly by the Secretaries in consultation with the Governors 
     and eligible entities as defined in section (  ). Such 
     guidelines shall include elements that promote the efficient 
     collection and use of management information for reporting 
     and monitoring the use of funds and the performance of 
     programs conducted under this Act, including information 
     relating to demographic characteristics of participants, and 
     ensure appropriate privacy protections.
       In all Appropriate notes: Strike the phrase 
     ``representatives of employees'' and ``employees and 
     representatives of labor organizations'' wherever such 
     phrases appear, and substitute in lieu thereof 
     ``representatives of labor organizations and employees''.
       Note 364.--(relating to definition of public employment 
     offices): Modify the staff-recommended amendment by striking 
     all of paragraph (6), and redesignating paragraph (7) as 
     paragraph (6).
       Note 365.--(relating to duties of Secretary of Labor): 
     Modify the staff-recommended amendment by striking out, 
     ``pursuant to title II of this Act'' in subsection (a).
                                                                    ____


                           Amendment No. 5304

       Insert at the appropriate place in the Kassebaum amendment 
     the following amendments:
       Strike the repeal of the School-to-Work Opportunities Act;
       Amend Section 802 of the School-to-Work Opportunities Act 
     of 1993 (20 USC 6251) by striking ``2001'' and inserting 
     ``2000.''
                                                                    ____


                           Amendment No. 5305

       Insert at the appropriate place in the Kassebaum amendment 
     the following amendments:
       ``The Senate recedes with an amendment as follows:''
       ``Subsection ____. Dislocated worker assistance.--
       (a) In general.--From the amounts allocated to the States 
     in any program year that are available to carry out adult 
     employment and training and the flex account, the States, in 
     accordance with requirements of paragraph (2), shall expend 
     an amount to provide employment and training services to 
     dislocated workers that, when combined with amounts allocated 
     for such workers in the national reserve account, is not less 
     than $1.3 billion.
       (2) State shares.--In order to meet the requirements of 
     paragraph (1), the Secretaries shall determine, based on the 
     relative share of each State of the funds allocated under 
     this Act pursuant to the formula provided in section ____, an 
     amount equal to the relative share for each State of $1.3 
     billion minus the amount allocated to the national reserve 
     for emergency grants for dislocated workers. Each State shall 
     expend, from funds available to such State for adult 
     employment and training, and if such funds are insufficient, 
     from the flex account, not less than the amount determined 
     for such State pursuant to the preceding sentence to provide 
     employment and training services to dislocated workers.''

[[Page S10501]]

     
                                                                    ____
                           Amendment No. 5306

       Insert at the appropriate place in the Kassebaum amendment 
     the following amendments:
       ``(a) Activities.--(1)(A) Of the funds allotted to a State 
     under section 102 for each fiscal year, a State shall use an 
     amount that equals the total of the funds appropriated to it 
     for fiscal year 1996 for the programs consolidated under this 
     Act for workforce employment and training, adult education 
     and literacy, vocational education, and at-risk youth program 
     activities.
       ``(B) From such amount--
       ``(i) a portion equal to 45 percent of such amount shall be 
     used for workforce employment and training activities;
       ``(ii) a portion equal to 7 percent of such amount shall be 
     used for adult education and literacy activities;
       ``(iii) a portion equal to 28 percent of such amount shall 
     be used for vocational education activities; and
       ``(iv) a portion equal to 20 percent of such amount shall 
     be used for at-risk youth program activities.
       ``(2)(A) If, for any fiscal year, a State's allotment under 
     section 102 is equal to or less than the total amount of the 
     funds appropriated to it for fiscal year 1996 for Federal 
     grants for the programs consolidated under this Act, the 
     State shall use that lesser amount in accordance with 
     paragraph (1)(B).
       ``(B) If, for any fiscal year, a State's allotment under 
     section 102 exceeds the total amount of the funds 
     appropriated to it for fiscal year 1996 Federal grants for 
     the programs consolidated under this Act, the State shall, 
     subject to subparagraph (C), use such excess for flexible 
     workforce activities (referred to in section ____ as the 
     `flex account'.)
       ``(C) If, for any fiscal year, a State's allotment under 
     section 102 exceeds 125 percent of its total amount of the 
     funds appropriated to it for fiscal year 1996 for Federal 
     grants for programs consolidated under this Act, the State 
     shall use the amount in excess of 125% in the following 
     manner:
       ``(i) a portion equal to 35 percent to such amount shall be 
     used for workforce employment and training activities;
       ``(ii) a portion equal to 5 percent of such amount shall be 
     used for adult education and literacy activities;
       ``(iii) a portion equal to 20 percent of such amount shall 
     be used for vocational education activities;
       ``(iv) a portion equal to 15 percent of such amount shall 
     be used for at-risk youth.
       ``(v) a portion equal to 25 percent of such amount shall be 
     used for flexible workforce activities (referred to as the 
     `flex account').
                                                                    ____


                           Amendment No. 5307

       Insert at the appropriate place in the Kassebaum amendment 
     the following amendments:
       ``The Senate recedes with an amendment as follows.''
       ``Paragraph  . Use of Career Grants
       ``(i) Dislocated Workers.--Except as provided in clause 
     (ii), training under this Act shall be provided through the 
     use of skill grants to dislocated workers who are 18 years or 
     older, who are unable to obtain Pell Grants under title IV of 
     the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.) and 
     who are unable to obtain the training or employment they 
     desire through the core services.
       Note 337(a).--(relating to exceptions to use of skill 
     grants): Senate recedes.
       Note 337(b).--(relating to transition for skill grants): 
     Senate recedes with amendment striking ``three years'' and 
     inserting ``five years.''
       Note 159.--(relating to incentives): Modify the proposed 
     staff amendment by adding at the end the following new 
     paragraph:
       ``(5) Accelerated Implementation of Career Grants.--In 
     order to encourage early implementation of the career grant 
     system, the Secretaries may, from funds reserved under 
     section ____, award incentive grants to States that implement 
     the career grant system described in section ____, prior to 
     the date required for such implementation under section 
     ____.''

                           Amendment No. 5308

       Insert in the Kassebaum amendment the following:
       Note 219.--(relating to the allocation of workforce 
     education funds): ``The House recedes with an amendment as 
     follows:''
       ``(A) Secondary school vocational education, or 
     postsecondary and adult vocational education, or both; and
       ``(B) 1 or more State corrections agencies to administer 
     vocational education programs for juvenile and adult criminal 
     offenders in correctional institutions in the State, 
     including correctional institutions operated by local 
     authorities.''
       Note 227.--(relating to distribution of adult vocational 
     funds): ``The House recedes with an amendment as follows:''
       ``Strike (A) on line 35.''
       Note 233.--(relating to reservation of funds for 
     corrections agencies): ``The Senate recedes.''
                                 ______
                                 

                        HATCH AMENDMENT NO. 5309

  (Ordered to lie on the table.)
  Mr. HATCH submitted an amendment intended to be proposed by him to 
the bill, H.R. 3756, supra; as follows:

       On page 9, line 2, strike ``or facilitate to manufacture'' 
     and insert ``or to facilitate the manufacture of''.
       On page 10, line 8, strike ``importation requirements'' and 
     insert ``importation and exportation requirements''.
       On page 11, line 9, strike the comma after ``item''.
       On page 11, line 12, strike beginning with ``For purposes'' 
     through line 21 and insert ``For purposes of paragraph (11), 
     there is a rebuttable presumption of reckless disregard at 
     trial if the Attorney General notifies a firm in writing that 
     a laboratory supply sold by the firm, or any other person or 
     firm, has been used by a customer of the notified firm, or 
     distributed further by that customer, for the unlawful 
     production of controlled substances or listed chemicals a 
     firm distributes and 2 weeks or more after the notification 
     the notified firm distributes a laboratory supply to the 
     customer.'.''.
       On page 14, line 24, strike ``Iso safrole'' and insert 
     ``Isosafrole''.
       On page 15, between lines 5 and 6, add the following:

     SEC. 210. WITHDRAWAL OF REGULATIONS.

       The final rule concerning removal of exemption for certain 
     pseudoephedrine products marketed under the Federal Food, 
     Drug, and Cosmetic Act published in the Federal Register of 
     August 7, 1996 (61 FR 40981-40993) is null and void and of no 
     force or effect.
       On page 21, line 23, strike beginning with ``, except 
     that'' through ``transaction'' on page 22, line 6, and insert 
     ``, except that the threshold for any sale of products 
     containing pseudoephedrine or phenylpropanolamine products by 
     retail distributors or by distributors required to submit 
     reports by section 310(b)(3) of this title shall be 24 grams 
     of pseudoephedrine or 24 grams of phenylpropanolamine in a 
     single transaction''.
       On page 22, line 8, strike ``abuse'' and insert 
     ``offense''.
       On page 23, strike lines 1 through 14 and insert the 
     following:
       ``(46)(A) The term `retail distributor' means a grocery 
     store, general merchandise store, drug store, or other entity 
     or person whose activities as a distributor relating to 
     pseudoephedrine or phenylpropanolamine products are limited 
     almost exclusively to sales for personal use, both in number 
     of sales and volume of sales, either directly to walk-in 
     customers or in face-to-face transactions by direct sales.
       On page 24, line 12, strike ``The'' and insert the 
     following: ``Pursuant to subsection (d)(1), the''.
       On page 25, line 17, strike ``effective date of this 
     section'' and insert ``date of enactment of this Act''.
       On page 26, line 1, after ``being'' insert ``widely''.
       On page 26, line 4, strike ``in bulk'' and insert ``for 
     distribution or sale''.
       On page 27, line 15, strike ``effective date of this 
     section'' and insert ``date of enactment of this Act''.
       On page 28, between lines 19 and 20, insert the following 
     and redesignate the following paragraphs accordingly:
       (3) Significant number of instances.--
       (A) In general.--For purposes of this subsection, isolated 
     or infrequent use, or use in insubstantial quantities, of 
     ordinary over-the-counter pseudoephedrine or 
     phenylpropanolamine, as defined in section 102(45) of the 
     Controlled Substances Act, as added by section 401(b) of this 
     Act, and sold at the retail level for the illicit manufacture 
     of methamphetamine or amphetamine may not be used by the 
     Attorney General as the basis for establishing the conditions 
     under paragraph (1)(A)(ii) of this subsection, with respect 
     to pseudoephedrine, and paragraph (2)(A)(ii) of this 
     subsection, with respect to phenylpropanolamine.
       (B) Considerations and report.--The Attorney General 
     shall--
       (i) in establishing a finding under paragraph (1)(A)(ii) or 
     (2)(A)(ii) of this subsection, consult with the Secretary of 
     Health and Human Services in order to consider the effects on 
     public health that would occur from the establishment of new 
     single transaction limits as provided in such paragraph; and
       (ii) upon establishing a finding, transmit a report to the 
     Committees on the Judiciary in both, respectively, the House 
     of Representatives and the Senate in which the Attorney 
     General will provide the factual basis for establishing the 
     new single transaction limits.
       On page 29, between lines 14 and 15, insert the following:
       (f) Combination Ephedrine Products.--
       (1) In general.--For the purposes of this section, 
     combination ephedrine products shall be treated the same as 
     pseudoephedrine products, except that--
       (A) a single transaction limit of 24 grams shall be 
     effective as of the date of enactment of this Act and shall 
     apply to sales of all combination ephedrine products, 
     notwithstanding the form in which those products are 
     packaged, made by retail distributors or distributors 
     required to submit a report under section 310(b)(3) of the 
     Controlled Substances Act (as added by section 402 of this 
     Act);
       (B) for regulated transactions for combination ephedrine 
     products other than sales described in subparagraph (A), the 
     transaction limit shall be--
       (i) 1 kilogram of ephedrine base, effective on the date of 
     enactment of this Act; or
       (ii) a threshold other than the threshold described in 
     clause (i), if established by the Attorney General not 
     earlier than 1 year after the date of enactment of this Act; 
     and
       (C) the penalties provided in subsection (d)(1)(B) of this 
     section shall take effect on

[[Page S10502]]

     the date of enactment of this Act for any individual or 
     business that violates the single transaction limit of 24 
     grams for combination ephedrine products.
       (2) Definition.--For the purposes of this section, the term 
     ``combination ephedrine product'' means a drug product 
     containing ephedrine or its salts, optical isomers, or salts 
     of optical isomers and therapeutically significant quantities 
     of another active medicinal ingredient.
       On page 29, line 15, strike ``(f)'' and insert ``(g)''.
       On page 29, line 17, strike all beginning with ``over-the-
     counter'' through line 20 and insert ``pseudoephedrine or 
     phenylpropanolamine product prior to 12 months after the date 
     of enactment of this Act, except that, on application of a 
     manufacturer of a particular pseudoephedrine or 
     phenylpropanolamine drug product, the Attorney General may, 
     in her sole discretion, extend such effective date up to an 
     additional six months. Notwithstanding any other provision of 
     law, the decision of the Attorney General on such an 
     application shall not be subject to judicial review.''
       On page 35, line 5, after ``funds'' insert ``or 
     appropriations''.
                                 ______
                                 

                 KENNEDY (AND SIMON) AMENDMENT NO. 5310

  (Ordered to lie on the table.)
  Mr. KENNEDY (for himself and Mr. Simon) proposed an amendment to the 
bill, H.R. 3756, supra; as follows:

       Strike sections 301 and 302 and insert the following:

     SEC. 301. PENALTY INCREASES FOR TRAFFICKING IN 
                   METHAMPHETAMINE.

       (a) Directive to the United States Sentencing Commission.--
     Pursuant to its authority under section 994 of title 28, 
     United States Code, the United States Sentencing Commission 
     shall review and amend its guidelines and its policy 
     statements to provide for increased penalties for unlawful 
     manufacturing, importing, exporting, and trafficking of 
     methamphetamine, and other similar offenses, including 
     unlawful possession with intent to commit any of those 
     offenses, and attempt and conspiracy to commit any of those 
     offenses. The Commission shall submit to Congress 
     explanations therefor and any additional policy 
     recommendations for combating methamphetamine offenses.
       (b) In General.--In carrying out this section, the 
     Commission shall ensure that the sentencing guidelines and 
     policy statements for offenders convicted of offenses 
     described in subsection (a) and any recommendations submitted 
     under such subsection reflect the heinous nature of such 
     offenses, the need for aggressive law enforcement action to 
     fight such offenses, and the extreme dangers associated with 
     unlawful activity involving methamphetamine, including--
       (1) the rapidly growing incidence of methamphetamine abuse 
     and the threat to public safety such abuse poses;
       (2) the high risk of methamphetamine addiction;
       (3) the increased risk of violence associated with 
     methamphetamine trafficking and abuse; and
       (4) the recent increase in the illegal importation of 
     methamphetamine and precursor chemicals.

     SEC. 302. ENHANCED PENALTIES FOR OFFENSES INVOLVING CERTAIN 
                   LISTED CHEMICALS.

       (a) Controlled Substances Act.--Section 401(d) of the 
     Controlled Substances Act (21 U.S.C. 841(d)) is amended by 
     striking ``not more than 10 years,'' and inserting ``not more 
     than 20 years in the case of a violation of paragraph (1) or 
     (2) involving a list I chemical or not more than 10 years in 
     the case of a violation of this subsection other than a 
     violation of paragraph (1) or (2) involving a list I 
     chemical,''.
       (b) Controlled Substance Import and Export Act.--Section 
     1010(d) of the Controlled Substance Import and Export Act (21 
     U.S.C. 960(d)) is amended by striking ``not more than 10 
     years,'' and inserting ``not more than 20 years in the case 
     of a violation of paragraph (1) or (3) involving a list I 
     chemical or not more than 10 years in the case of a violation 
     of this subsection other than a violation of paragraph (1) or 
     (3) involving a list I chemical,''.
       (c) Sentencing Guidelines.--
       (1) In general.--The United States Sentencing Commission 
     shall, in accordance with the procedures set forth in section 
     21(a) of the Sentencing Act of 1987, as though the authority 
     of that section had not expired, amend the sentencing 
     guidelines to increase by at least two levels the offense 
     level for offenses involving list I chemicals under--
       (A) section 401(d) (1) and (2) of the Controlled Substances 
     Act (21 U.S.C 841(d) (1) and (2)); and
       (B) section 1010(d) (1) and (3) of the Controlled Substance 
     Import and Export Act (21 U.S.C. 960(d) (1) and (3)).
       (2) Requirement.--In carrying out this subsection, the 
     Commission shall ensure that the offense levels for offenses 
     referred to in paragraph (1) are calculated proportionally on 
     the basis of the quantity of controlled substance that 
     reasonably could have been manufactured in a clandestine 
     setting using the quantity of the list I chemical possessed, 
     distributed, imported, or exported.
       On page 2, strike out the items relating to sections 301 
     and 302 and insert the following:

Sec. 301. Penalty increases for trafficking in methamphetamine.
Sec. 302. Enhanced penalties for offenses involving certain listed 
              chemicals.
                                 ______
                                 

                        BIDEN AMENDMENT NO. 5311

  (Ordered to lie on the table.)
  Mr. BIDEN submitted an amendment intended to be proposed by him to 
the bill, H.R. 3756, supra; as follows:

       Add at the appropriate place:

     SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the 
     ``Comprehensive Methamphetamine Control Act of 1996''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title and table of contents.
Sec. 2. Findings.

    TITLE I--IMPORTATION OF METHAMPHETAMINE AND PRECURSOR CHEMICALS

Sec. 101. Support for international efforts to control drugs.
Sec. 102. Penalties for manufacture of listed chemicals outside the 
              United States with intent to import them into the United 
              States.

   TITLE II--PROVISIONS TO CONTROL THE MANUFACTURE OF METHAMPHETAMINE

Sec. 201. Seizure and forfeiture of regulated chemicals.
Sec. 202. Study and report on measures to prevent sales of agents used 
              in methamphetamine production.
Sec. 203. Increased penalties for manufacture and possession of 
              equipment used to make controlled substances.
Sec. 204. Addition of iodine and hydrochloric gas to list II.
Sec. 205. Civil penalties for firms that supply precursor chemicals.
Sec. 206. Injunctive relief.
Sec. 207. Restitution for cleanup of clandestine laboratory sites.
Sec. 208. Record retention.
Sec. 209. Technical amendments.

   TITLE III--INCREASED PENALTIES FOR TRAFFICKING AND MANUFACTURE OF 
                     METHAMPHETAMINE AND PRECURSORS

Sec. 301. Trafficking in methamphetamine penalty increases.
Sec. 302. Penalty increases for trafficking in listed chemicals.
Sec. 303. Enhanced penalty for dangerous handling of controlled 
              substances: amendment of sentencing guidelines.

   TITLE IV--LEGAL MANUFACTURE, DISTRIBUTION, AND SALE OF PRECURSOR 
                               CHEMICALS

Sec. 401. Diversion of certain precursor chemicals.
Sec. 402. Mail order restrictions.

                    TITLE V--EDUCATION AND RESEARCH

Sec. 501. Interagency methamphetamine task force.
Sec. 502. Public health monitoring.
Sec. 503. Public-private education program.
Sec. 504. Suspicious orders task force.

     SEC. 2. FINDINGS.

       The Congress finds the following:
       (1) Methamphetamine is a very dangerous and harmful drug. 
     It is highly addictive and is associated with permanent brain 
     damage in long-term users.
       (2) The abuse of methamphetamine has increased dramatically 
     since 1990. This increased use has led to devastating effects 
     on individuals and the community, including--
       (A) a dramatic increase in deaths associated with 
     methamphetamine ingestion;
       (B) an increase in the number of violent crimes associated 
     with methamphetamine ingestion; and
       (C) an increase in criminal activity associated with the 
     illegal importation of methamphetamine and precursor 
     compounds to support the growing appetite for this drug in 
     the United States.
       (3) Illegal methamphetamine manufacture and abuse presents 
     an imminent public health threat that warrants aggressive law 
     enforcement action, increased research on methamphetamine and 
     other substance abuse, increased coordinated efforts to 
     prevent methamphetamine abuse, and increased monitoring of 
     the public health threat methamphetamine presents to the 
     communities of the United States.
    TITLE I--IMPORTATION OF METHAMPHETAMINE AND PRECURSOR CHEMICALS

     SEC. 101. SUPPORT FOR INTERNATIONAL EFFORTS TO CONTROL DRUGS.

       The Attorney General, in consultation with the Secretary of 
     State, shall coordinate international drug enforcement 
     efforts to decrease the movement of methamphetamine and 
     methamphetamine precursors into the United States.

     SEC. 102. PENALTIES FOR MANUFACTURE OF LISTED CHEMICALS 
                   OUTSIDE THE UNITED STATES WITH INTENT TO IMPORT 
                   THEM INTO THE UNITED STATES.

       (a) Unlawful Importation.--Section 1009(a) of the 
     Controlled Substances Import and Export Act (21 U.S.C. 
     959(a)) is amended--
       (1) in the matter before paragraph (1), by inserting ``or 
     listed chemical'' after ``schedule I or II''; and

[[Page S10503]]

       (2) in paragraphs (1) and (2), by inserting ``or chemical'' 
     after ``substance''.
       (b) Unlawful Manufacture or Distribution.--Paragraphs (1) 
     and (2) of section 1009(b) of the Controlled Substances 
     Import and Export Act (21 U.S.C. 959(b)) are amended by 
     inserting ``or listed chemical'' after ``controlled 
     substance''.
       (c) Penalties.--Section 1010(d) of the Controlled 
     Substances Import and Export Act (21 U.S.C. 960(d)) is 
     amended--
       (1) in paragraph (5), by striking ``or'' at the end;
       (2) in paragraph (6), by striking the comma at the end and 
     inserting ``; or''; and
       (3) by adding at the end the following:
       ``(7) manufactures, possesses with intent to distribute, or 
     distributes a listed chemical in violation of section 959 of 
     this title.''.
   TITLE II--PROVISIONS TO CONTROL THE MANUFACTURE OF METHAMPHETAMINE

     SEC. 201. SEIZURE AND FORFEITURE OF REGULATED CHEMICALS.

       (a) Penalties for Simple Possession.--Section 404 of the 
     Controlled Substances Act (21 U.S.C. 844) is amended--
       (1) in subsection (a)--
       (A) by adding after the first sentence the following: ``It 
     shall be unlawful for any person knowingly or intentionally 
     to possess any list I chemical obtained pursuant to or under 
     authority of a registration issued to that person under 
     section 303 of this title or section 1008 of title III if 
     that registration has been revoked or suspended, if that 
     registration has expired, or if the registrant has ceased to 
     do business in the manner contemplated by his 
     registration.''; and
       (B) by striking ``drug or narcotic'' and inserting ``drug, 
     narcotic, or chemical'' each place it appears; and
       (2) in subsection (c), by striking ``drug or narcotic'' and 
     inserting ``drug, narcotic, or chemical''.
       (b) Forfeitures.--Section 511(a) of the Controlled 
     Substances Act (21 U.S.C. 881(a)) is amended--
       (1) in paragraphs (2) and (6), by inserting ``or listed 
     chemical'' after ``controlled substance'' each place it 
     appears; and
       (2) in paragraph (9), by--
       (A) inserting ``dispensed, acquired,'' after 
     ``distributed,'' both places it appears; and
       (B) striking ``a felony provision of''.
       (c) Seizure.--Section 607 of the Tariff Act of 1930 (19 
     U.S.C. 1607) is amended--
       (1) in subsection (a)(3), by inserting ``or listed 
     chemical'' after ``controlled substance''; and
       (2) by amending subsection (b) to read as follows:
       ``(b) As used in this section, the terms `controlled 
     substance' and `listed chemical' have the meaning given such 
     terms in section 102 of the Controlled Substances Act (21 
     U.S.C. 802).''.

     SEC. 202. STUDY AND REPORT ON MEASURES TO PREVENT SALES OF 
                   AGENTS USED IN METHAMPHETAMINE PRODUCTION.

       (a) Study.--The Attorney General of the United States shall 
     conduct a study on possible measures to effectively prevent 
     the diversion of red phosphorous, iodine, hydrochloric gas, 
     and other agents for use in the production of 
     methamphetamine. Nothing in this section shall preclude the 
     Attorney General from taking any action the Attorney General 
     already is authorized to take with regard to the regulation 
     of listed chemicals under current law.
       (b) Report.--Not later than January 1, 1998, the Attorney 
     General shall submit a report to the Congress of its findings 
     pursuant to the study conducted under subsection (a) on the 
     need for and advisability of preventive measures.
       (c) Considerations.--In developing recommendations under 
     subsection (b), the Attorney General shall consider--
       (1) the use of red phosphorous, iodine, hydrochloric gas, 
     and other agents in the illegal manufacture of 
     methamphetamine;
       (2) the use of red phosphorous, iodine, hydrochloric gas, 
     and other agents for legitimate, legal purposes, and the 
     impact any regulations may have on these legitimate purposes; 
     and
       (3) comments and recommendations from law enforcement, 
     manufacturers of such chemicals, and the consumers of such 
     chemicals for legitimate, legal purposes.

     SEC. 203. INCREASED PENALTIES FOR MANUFACTURE AND POSSESSION 
                   OF EQUIPMENT USED TO MAKE CONTROLLED 
                   SUBSTANCES.

       (a) In General.--Section 403(d) of the Controlled 
     Substances Act (21 U.S.C. 843(d)) is amended--
       (1) by striking ``(d) Any person'' and inserting ``(d)(1) 
     Except as provided in paragraph (2), any person''; and
       (2) by adding at the end the following:
       ``(2) Any person who, with the intent to manufacture or 
     facilitate to manufacture methamphetamine, violates paragraph 
     (6) or (7) of subsection (a), shall be sentenced to a term of 
     imprisonment of not more than 10 years, a fine of not more 
     than $30,000, or both; except that if any person commits such 
     a violation after one or more prior convictions of that 
     person--
       ``(A) for a violation of paragraph (6) or (7) of subsection 
     (a);
       ``(B) for a felony under any other provision of this 
     subchapter or subchapter II of this chapter; or
       ``(C) under any other law of the United States or any State 
     relating to controlled substances or listed chemicals,

     has become final, such person shall be sentenced to a term of 
     imprisonment of not more than 20 years, a fine of not more 
     than $60,000, or both.''.
       (b) Sentencing Commission.--The United States Sentencing 
     Commission shall amend the sentencing guidelines to ensure 
     that the manufacture of methamphetamine in violation of 
     section 403(d)(2) of the Controlled Substances Act, as added 
     by subsection (a), is treated as a significant violation.

     SEC. 204. ADDITION OF IODINE AND HYDROCHLORIC GAS TO LIST II.

       (a) In General.--Section 102(35) of the Controlled 
     Substances Act (21 U.S.C. 802(35)) is amended by adding at 
     the end the following:
       ``(I) Iodine.
       ``(J) Hydrochloric gas.''.
       (b) Importation Requirements.--(1) Iodine shall not be 
     subject to the requirements for listed chemicals provided in 
     section 1018 of the Controlled Substances Import and Export 
     Act (21 U.S.C. 971).
       (2) Effect of Exception.--The exception made by paragraph 
     (1) shall not limit the authority of the Attorney General to 
     impose the requirements for listed chemicals provided in 
     section 1018 of the Controlled Substances Import and Export 
     Act (21 U.S.C. 971).

     SEC. 205. CIVIL PENALTIES FOR FIRMS THAT SUPPLY PRECURSOR 
                   CHEMICALS.

       (a) Offenses.--Section 402(a) of the Controlled Substances 
     Act (21 U.S.C. 842(a)) is amended--
       (1) in paragraph (9), by striking ``or'' after the 
     semicolon;
       (2) in paragraph (10), by striking the period and inserting 
     ``; or''; and
       (3) by adding at the end the following:
       ``(11) to distribute a laboratory supply to a person who 
     uses, or attempts to use, that laboratory supply to 
     manufacture a controlled substance or a listed chemical, in 
     violation of this title or title III, with reckless disregard 
     for the illegal uses to which such a laboratory supply will 
     be put.

     As used in paragraph (11), the term `laboratory supply' means 
     a listed chemical or any chemical, substance, or item, on a 
     special surveillance list published by the Attorney General, 
     which contains chemicals, products, materials, or equipment 
     used in the manufacture of controlled substances and listed 
     chemicals. For purposes of paragraph (11), there is a 
     rebuttable presumption of reckless disregard at trial if a 
     firm distributes or continues to distribute a laboratory 
     supply to a customer where the Attorney General has 
     previously notified, at least two weeks before the 
     transaction(s), the firm that a laboratory supply sold by the 
     firm, or any other person or firm, has been used by that 
     customer, or distributed further by that customer, for the 
     unlawful production of controlled substances or listed 
     chemicals.''
       (b) Civil Penalty.--Section 402(c)(2) of the Controlled 
     Substances Act (21 U.S.C. 842(c)(2)) is amended by adding at 
     the end the following:
       ``(C) In addition to the penalties set forth elsewhere in 
     this title or title III, any business that violates paragraph 
     (11) of subsection (a) shall, with respect to the first such 
     violation, be subject to a civil penalty of not more than 
     $250,000, but shall not be subject to criminal penalties 
     under this section, and shall, for any succeeding violation, 
     be subject to a civil fine of not more than $250,000 or 
     double the last previously imposed penalty, whichever is 
     greater.''.

     SEC. 206. INJUNCTIVE RELIEF.

       (a) Ten-Year Injunction Major Offenses.--Section 401(f) of 
     the Controlled Substances Act (21 U.S.C. 841(f)) is amended 
     by--
       (1) inserting ``manufacture, exportation,'' after 
     ``distribution,''; and
       (2) striking ``regulated''.
       (b) Ten-Year Injunction Other Offenses.--Section 403 of the 
     Controlled Substances Act (21 U.S.C. 843) is amended--
       (1) in subsection (e), by--
       (A) inserting ``manufacture, exportation,'' after 
     ``distribution,''; and
       (B) striking ``regulated''; and
       (2) by adding at the end the following:
       ``(f) Injunctions.--(1) In addition to any penalty provided 
     in this section, the Attorney General is authorized to 
     commence a civil action for appropriate declaratory or 
     injunctive relief relating to violations of this section or 
     section 402.
       ``(2) Any action under this subsection may be brought in 
     the district court of the United States for the district in 
     which the defendant is located or resides or is doing 
     business.
       ``(3) Any order or judgment issued by the court pursuant to 
     this subsection shall be tailored to restrain violations of 
     this section or section 402.
       ``(4) The court shall proceed as soon as practicable to the 
     hearing and determination of such an action. An action under 
     this subsection is governed by the Federal Rules of Civil 
     Procedure except that, if an indictment has been returned 
     against the respondent, discovery is governed by the Federal 
     Rules of Criminal Procedure.''.

     SEC. 207. RESTITUTION FOR CLEANUP OF CLANDESTINE LABORATORY 
                   SITES.

       Section 413 of the Controlled Substances Act (21 U.S.C. 
     853) is amended by adding at the end the following:
       ``(q) The court, when sentencing a defendant convicted of 
     an offense under this title or title III involving the 
     manufacture of methamphetamine, may--
       ``(1) order restitution as provided in sections 3612 and 
     3664 of title 18, United States Code;

[[Page S10504]]

       ``(2) order the defendant to reimburse the United States 
     for the costs incurred by the United States for the cleanup 
     associated with the manufacture of methamphetamine by the 
     defendant; and
       ``(3) order restitution to any person injured as a result 
     of the offense as provided in section 3663 of title 18, 
     United States Code.''.

     SEC. 208. RECORD RETENTION.

       Section 310(a)(1) of the Controlled Substances Act (21 
     U.S.C. 830(a)(1)) is amended by striking the dash after 
     ``transaction'' and subparagraphs (A) and (B) and inserting 
     ``for two years after the date of the transaction.''.

     SEC. 209. TECHNICAL AMENDMENTS.

       Section 102 of the Controlled Substances Act (21 U.S.C. 
     802) is amended--
       (1) in paragraph (34), by amending subparagraphs (P), (S), 
     and (U) to read as follows:
       ``(P) Iso safrole.
       ``(S) N-Methylephedrine.
       ``(U) Hydriodic acid.''; and
       (2) in paragraph (35), by amending subparagraph (G) to read 
     as follows:
       ``(G) 2-Butanone (or Methyl Ethyl Ketone).''.
   TITLE III--INCREASED PENALTIES FOR TRAFFICKING AND MANUFACTURE OF 
                     METHAMPHETAMINE AND PRECURSORS

     SEC. 301. TRAFFICKING IN METHAMPHETAMINE PENALTY INCREASES.

       (a) Controlled Substances Act.--
       (1) Large amounts.--Section 401(b)(1)(A)(viii) of the 
     Controlled Substances Act (21 U.S.C. 841(b)(1)(A)(viii)) is 
     amended by--
       (A) striking ``100 grams or more of methamphetamine,'' and 
     inserting ``50 grams or more of methamphetamine,''; and
       (B) striking ``1 kilogram or more of a mixture or substance 
     containing a detectable amount of methamphetamine'' and 
     inserting ``500 grams or more of a mixture or substance 
     containing a detectable amount of methamphetamine''.
       (2) Smaller amounts.--Section 401(b)(1)(B)(viii) of the 
     Controlled Substances Act (21 U.S.C. 841(b)(1)(B)(viii)) is 
     amended by--
       (A) striking ``10 grams or more of methamphetamine,'' and 
     inserting ``5 grams or more of methamphetamine,''; and
       (B) striking ``100 grams or more of a mixture or substance 
     containing a detectable amount of methamphetamine'' and 
     inserting ``50 grams or more of a mixture or substance 
     containing a detectable amount of methamphetamine''.
       (b) Import and Export Act.--
       (1) Large amounts.--Section 1010(b)(1)(H) of the Controlled 
     Substances Import and Export Act (21 U.S.C. 960(b)(1)(H)) is 
     amended by--
       (A) striking ``100 grams or more of methamphetamine,'' and 
     inserting ``50 grams or more of methamphetamine,''; and
       (B) striking ``1 kilogram or more of a mixture or substance 
     containing a detectable amount of methamphetamine'' and 
     inserting ``500 grams or more of a mixture or substance 
     containing a detectable amount of methamphetamine''.
       (2) Smaller amounts.--Section 1010(b)(2)(H) of the 
     Controlled Substances Import and Export Act (21 U.S.C. 
     960(b)(2)(H)) is amended by--
       (A) striking ``10 grams or more of methamphetamine,'' and 
     inserting ``5 grams or more of methamphetamine,''; and
       (B) striking ``100 grams or more of a mixture or substance 
     containing a detectable amount of methamphetamine'' and 
     inserting ``50 grams or more of a mixture or substance 
     containing a detectable amount of methamphetamine''.

     SEC. 302. PENALTY INCREASES FOR TRAFFICKING IN LISTED 
                   CHEMICALS.

       (a) Controlled Substances Act.--Section 401(d) of the 
     Controlled Substances Act (21 U.S.C. 841(d)) is amended by 
     striking the period and inserting the following: ``or, with 
     respect to a violation of paragraph (1) or (2) of this 
     subsection involving a list I chemical, if the government 
     proves the quantity of controlled substance that could 
     reasonably have been manufactured in a clandestine setting 
     using the quantity of list I chemicals possessed or 
     distributed, the penalty corresponding to the quantity of 
     controlled substance that could have been produced under 
     subsection (b).''.
       (b) Controlled Substance Import and Export Act.--Section 
     1010(d) of the Controlled Substance Import and Export Act (21 
     U.S.C. 960(d)) is amended by striking the period and 
     inserting the following: ``, or, with respect to an 
     importation violation of paragraph (1) or (3) of this 
     subsection involving a list I chemical, if the government 
     proves the quantity of controlled substance that could 
     reasonably have been manufactured in a clandestine setting 
     using the quantity of list I chemicals imported, the penalty 
     corresponding to the quantity of controlled substance that 
     could have been produced under title II.''.
       (c) Determination of Quantity.--
       (1) In general.--For the purposes of this section and the 
     amendments made by this section, the quantity of controlled 
     substance that could reasonably have been provided shall be 
     determined by using a table of manufacturing conversion 
     ratios for list I chemicals.
       (2) Table.--The table shall be--
       (A) established by the United States Sentencing Commission 
     based on scientific, law enforcement, and other data the 
     Sentencing Commission deems appropriate; and
       (B) dispositive of this issue.

     SEC. 303. ENHANCED PENALTY FOR DANGEROUS HANDLING OF 
                   CONTROLLED SUBSTANCES: AMENDMENT OF SENTENCING 
                   GUIDELINES.

       (a) In General.--Pursuant to its authority under section 
     994 of title 28, United States Code, the United States 
     Sentencing Commission shall determine whether the Sentencing 
     Guidelines adequately punish the offenses described in 
     subsection (b) and, if not, promulgate guidelines or amend 
     existing guidelines to provide an appropriate enhancement of 
     the punishment for a defendant convicted of such an offense.
       (b) Offense.--The offense referred to in subsection (a) is 
     a violation of section 401(d), 401(g)(1), 403(a)(6), or 
     403(a)(7) of The Controlled Substances Act (21 U.S.C. 841(d), 
     841(g)(1), 843(a)(6), and 843(a)(7)), in cases in which in 
     the commission of the offense the defendant violated--
       (1) subsection (d) or (e) of section 3008 of the Solid 
     Waste Disposal Act (relating to handling hazardous waste in a 
     manner inconsistent with Federal or applicable State law);
       (2) section 103(b) of the Comprehensive Environmental 
     Response, Compensation and Liability Act (relating to failure 
     to notify as to the release of a reportable quantity of a 
     hazardous substance into the environment);
       (3) section 301(a), 307(d), 309(c)(2), 309(c)(3), 
     311(b)(3), or 311(b)(5) of the Federal Water Pollution 
     Control Act (relating to the unlawful discharge of pollutants 
     or hazardous substances, the operation of a source in 
     violation of a pretreatment standard, and the failure to 
     notify as to the release of a reportable quantity of a 
     hazardous substance into the water); or
       (4) section 5124 of title 49, United States Code (relating 
     to violations of laws and regulations enforced by the 
     Department of Transportation with respect to the 
     transportation of hazardous material).
   TITLE IV--LEGAL MANUFACTURE, DISTRIBUTION, AND SALE OF PRECURSOR 
                               CHEMICALS

     SEC. 401. DIVERSION OF CERTAIN PRECURSOR CHEMICALS.

       (a) In General.--Section 102(39) of the Controlled 
     Substances Act (21 U.S.C. 802(39)) is amended--
       (1) in subparagraph (A)(iv)(I)(aa), by striking ``as'' 
     through the semicolon and inserting ``, pseudoephedrine or 
     its salts, optical isomers, or salts of optical isomers, or 
     phenylpropanolamine or its salts, optical isomers, or salts 
     of optical isomers unless otherwise provided by regulation of 
     the Attorney General issued pursuant to section 204(e) of 
     this title;''; and
       (2) in subparagraph (A)(iv)(II), by inserting ``, 
     pseudoephedrine, phenylpropanolamine,'' after ``ephedrine''.
       (b) Legitimate Retailers.--Section 102 of the Controlled 
     Substances Act (21 U.S.C. 802) is amended--
       (1) in paragraph (39)(A)(iv)(I)(aa), by adding before the 
     semicolon the following: ``, except that any sale of ordinary 
     over-the-counter pseudoephedrine or phenylpropanolamine 
     products by retail distributors shall not be a regulated 
     transaction (except as provided in section 401(d) of the 
     Comprehensive Methamphetamine Control Act of 1996)'';
       (2) in paragraph (39)(A)(iv)(II), by adding before the 
     semicolon the following: ``, except that any sale of products 
     containing pseudoephedrine or phenylpropanolamine, other than 
     ordinary over-the-counter pseudoephedrine or 
     phenylpropanolamine products, by retail distributors shall 
     not be a regulated transaction if the distributor's sales are 
     limited to less than the threshold quantity of 24 grams 
     of pseudoephedrine or 24 grams of phenylpropanolamine in 
     each single transaction'';
       (3) by redesignating paragraph (43) relating to felony drug 
     abuse as paragraph (44); and
       (4) by adding at the end the following:
       ``(45) The term `ordinary over-the-counter pseudoephedrine 
     or phenylpropanolamine product' means any product containing 
     pseudoephedrine or phenylpropanolamine that is--
       ``(A) regulated pursuant to this title; and
       ``(B)(i) except for liquids, sold in package sizes of not 
     more than 3.0 grams of pseudoephedrine base or 3.0 grams of 
     phenylpropanolamine base, and that is packaged in blister 
     packs, each blister containing not more than two dosage 
     units, or where the use of blister packs is technically 
     infeasible, that is packaged in unit dose packets or pouches; 
     and
       ``(ii) for liquids, sold in package sizes of not more than 
     3.0 grams of pseudoephedrine base or 3.0 grams of 
     phenylpropanolamine base.
       ``(46)(A) The term `retail distributor' means--
       ``(i) with respect to an entity that is a grocery store, 
     general merchandise store, or drug store, a distributor whose 
     activities relating to pseudoephedrine or phenylpropanolamine 
     products are limited almost exclusively to sales, both in 
     number of sales and volume of sales, directly to walk-in 
     customers; and
       ``(ii) with respect to any other entity, a distributor 
     whose activities relating to ordinary over-the-counter 
     pseudoephedrine or phenylpropanolamine products are limited 
     primarily to sales directly to walk-in customers for personal 
     use.
       ``(B) For purposes of this paragraph, sale for personal use 
     means the sale of below-threshold quantities in a single 
     transaction to an individual for legitimate medical use.

[[Page S10505]]

       ``(C) For purposes of this paragraph, entities are defined 
     by reference to the Standard Industrial Classification (SIC) 
     code, as follows:
       ``(i) A grocery store is an entity within SIC code 5411.
       ``(ii) A general merchandise store is an entity within SIC 
     codes 5300 through 5399 and 5499.
       ``(iii) A drug store is an entity within SIC code 5912.''.
       (c) Reinstatement of Legal Drug Exemption.--Section 204 of 
     the Controlled Substances Act (21 U.S.C. 814) is amended by 
     adding at the end the following new subsection:
       ``(e) Reinstatement of Exemption With Respect to Ephedrine, 
     Pseudoephedrine, and Phenylpropanolamine Drug Products.--The 
     Attorney General shall by regulation reinstate the exemption 
     with respect to a particular ephedrine, pseudoephedrine, or 
     phenylpropanolamine drug product if the Attorney General 
     determines that the drug product is manufactured and 
     distributed in a manner that prevents diversion. In making 
     this determination the Attorney General shall consider the 
     factors listed in subsection (d)(2). Any regulation issued 
     pursuant to this subsection may be amended or revoked based 
     on the factors listed in subsection (d)(4).''.
       (d) Regulation of Retail Sales.--
       (1) Pseudoephedrine.--
       (A) Limit.--
       (i) In general.--Not sooner than the effective date of this 
     section and subject to the requirements of clause (ii), the 
     Attorney General may establish by regulation a single-
     transaction limit of 24 grams of pseudoephedrine base for 
     retail distributors. Notwithstanding any other provision of 
     law, the single-transaction threshold quantity for 
     pseudoephedrine-containing compounds may not be lowered 
     beyond that established in this paragraph.
       (ii) Conditions.--In order to establish a single-
     transaction limit of 24 grams of pseudoephedrine base, the 
     Attorney General shall establish, following notice, comment, 
     and an informal hearing that since the effective date of this 
     section there are a significant number of instances where 
     ordinary over-the-counter pseudoephedrine products as 
     established in paragraph (45) of section 102 of the 
     Controlled Substances Act (21 U.S.C. 802 (45)), as added by 
     this Act, sold by retail distributors as established in 
     paragraph (46) in section 102 of the Controlled Substances 
     Act (21 U.S.C. 802(46)), are being used as a significant 
     source of precursor chemicals for illegal manufacture of a 
     controlled substance in bulk.
       (B) Violation.--Any individual or business that violates 
     the thresholds established in this paragraph shall, with 
     respect to the first such violation, receive a warning 
     letter from the Attorney General and, if a business, the 
     business shall be required to conduct mandatory education 
     of the sales employees of the firm with regard to the 
     legal sales of pseudoephedrine. For a second violation 
     occurring within 2 years of the first violation, the 
     business or individual shall be subject to a civil penalty 
     of not more than $5,000. For any subsequent violation 
     occurring within 2 years of the previous violation, the 
     business or individual shall be subject to a civil penalty 
     not to exceed the amount of the previous civil penalty 
     plus $5,000.
       (2) Phenylpropanolamine.--
       (A) Limit.--
       (i) In general.--Not sooner than the effective date of this 
     section and subject to the requirements of clause (ii), the 
     Attorney General may establish by regulation a single-
     transaction limit of 24 grams of phenylpropanolamine base for 
     retail distributors. Notwithstanding any other provision of 
     law, the single-transaction threshold quantity for 
     phenylpropanolamine-containing compounds may not be lowered 
     beyond that established in this paragraph.
       (ii) Conditions.--In order to establish a single-
     transaction limit of 24 grams of phenylpropanolamine base, 
     the Attorney General shall establish, following notice, 
     comment, and an informal hearing, that since the effective 
     date of this section there are a significant number of 
     instances where ordinary over-the-counter phenylpropanolamine 
     products as established in paragraph (45) of section 102 of 
     the Controlled Substances Act (21 U.S.C. 802(45)), as added 
     by this Act, sold by retail distributors as established in 
     paragraph (46) in section 102 of the Controlled Substances 
     Act (21 U.S.C. 802(46)), are being used as a significant 
     source of precursor chemicals for illegal manufacture of a 
     controlled substance in bulk.
       (B) Violation.--Any individual or business that violates 
     the thresholds established in this paragraph shall, with 
     respect to the first such violation, receive a warning letter 
     from the Attorney General and, if a business, the business 
     shall be required to conduct mandatory education of the sales 
     employees of the firm with regard to the legal sales of 
     pseudoephedrine. For a second violation occurring within 2 
     years of the first violation, the business or individual 
     shall be subject to a civil penalty of not more than $5,000. 
     For any subsequent violation occurring within 2 years of the 
     previous violation, the business or individual shall be 
     subject to a civil penalty not to exceed the amount of the 
     previous civil penalty plus $5,000.
       (3) Definition of business.--For purposes of this 
     subsection, the term ``business'' means the entity that makes 
     the direct sale and does not include the parent company of a 
     business not involved in a direct sale regulated by this 
     subsection.
       (4) Judicial review.--Any regulation promulgated by the 
     Attorney General under this section shall be subject to 
     judicial review pursuant to section 507 of the Controlled 
     Substances Act (21 U.S.C. 877).
       (e) Effect on Thresholds.--Nothing in the amendments made 
     by subsection (b) or the provisions of subsection (d) shall 
     affect the authority of the Attorney General to modify 
     thresholds (including cumulative thresholds) for retail 
     distributors for products other than ordinary over-the-
     counter pseudoephedrine or phenylpropanolamine products (as 
     defined in section 102(45) of the Controlled Substances Act, 
     as added by this section) or for non-retail distributors, 
     importers, or exporters.
       (f) Effective Date of This Section.--Notwithstanding any 
     other provision of this Act, this section shall not apply to 
     the sale of any over-the-counter pseudoephedrine or 
     phenylpropanolamine product initially introduced into 
     interstate commerce prior to 9 months after the date of 
     enactment of this Act.

     SEC. 402. MAIL ORDER RESTRICTIONS.

       Section 310(b) of the Controlled Substances Act (21 U.S.C. 
     830(b)) is amended by adding at the end the following:
       ``(3) Mail order reporting.--(A) Each regulated person who 
     engages in a transaction with a nonregulated person which--
       ``(i) involves ephedrine, pseudoephedrine, or 
     phenylpropanolamine (including drug products containing these 
     chemicals); and
       ``(ii) uses or attempts to use the Postal Service or any 
     private or commercial carrier;

     shall, on a monthly basis, submit a report of each such 
     transaction conducted during the previous month to the 
     Attorney General in such form, containing such data, and at 
     such times as the Attorney General shall establish by 
     regulation.
       ``(B) The data required for such reports shall include--
       ``(i) the name of the purchaser;
       ``(ii) the quantity and form of the ephedrine, 
     pseudoephedrine, or phenylpropanolamine purchased; and
       ``(iii) the address to which such ephedrine, 
     pseudoephedrine, or phenylpropanolamine was sent.''.
                    TITLE V--EDUCATION AND RESEARCH

     SEC. 501. INTERAGENCY METHAMPHETAMINE TASK FORCE.

       (a) Establishment.--There is established a 
     ``Methamphetamine Interagency Task Force'' (referred to as 
     the ``interagency task force'') which shall consist of the 
     following members:
       (1) The Attorney General, or a designee, who shall serve as 
     chair.
       (2) 2 representatives selected by the Attorney General.
       (3) The Secretary of Education or a designee.
       (4) The Secretary of Health and Human Services or a 
     designee.
       (5) 2 representatives of State and local law enforcement 
     and regulatory agencies, to be selected by the Attorney 
     General.
       (6) 2 representatives selected by the Secretary of Health 
     and Human Services.
       (7) 5 nongovernmental experts in drug abuse prevention and 
     treatment to be selected by the Attorney General.
       (b) Responsibilities.--The interagency task force shall be 
     responsible for designing, implementing, and evaluating the 
     education and prevention and treatment practices and 
     strategies of the Federal Government with respect to 
     methamphetamine and other synthetic stimulants.
       (c) Meetings.--The interagency task force shall meet at 
     least once every 6 months.
       (d) Funding.--The administrative expenses of the 
     interagency task force shall be paid out of existing 
     Department of Justice appropriations.
       (e) FACA.--The Federal Advisory Committee Act (5 U.S.C. 
     App. 2) shall apply to the interagency task force.
       (f) Termination.--The interagency task force shall 
     terminate 4 years after the date of enactment of this Act.

     SEC. 502. PUBLIC HEALTH MONITORING.

       The Secretary of Health and Human Services shall develop a 
     public health monitoring program to monitor methamphetamine 
     abuse in the United States. The program shall include the 
     collection and dissemination of data related to 
     methamphetamine abuse which can be used by public health 
     officials in policy development.

     SEC. 503. PUBLIC-PRIVATE EDUCATION PROGRAM.

       (a) Advisory Panel.--The Attorney General shall establish 
     an advisory panel consisting of an appropriate number of 
     representatives from Federal, State, and local law 
     enforcement and regulatory agencies with experience in 
     investigating and prosecuting illegal transactions of 
     precursor chemicals. The Attorney General shall convene the 
     panel as often as necessary to develop and coordinate 
     educational programs for wholesale and retail distributors of 
     precursor chemicals and supplies.
       (b) Continuation of Current Efforts.--The Attorney General 
     shall continue to--
       (1) maintain an active program of seminars and training to 
     educate wholesale and retail distributors of precursor 
     chemicals and supplies regarding the identification of 
     suspicious transactions and their responsibility to report 
     such transactions; and
       (2) provide assistance to State and local law enforcement 
     and regulatory agencies to facilitate the establishment and 
     maintenance of educational programs for distributors of 
     precursor chemicals and supplies.

[[Page S10506]]

     SEC. 504. SUSPICIOUS ORDERS TASK FORCE.

       (a) In General.--The Attorney General shall establish a 
     ``Suspicious Orders Task Force'' (the ``Task Force'') which 
     shall consist of--
       (1) appropriate personnel from the Drug Enforcement 
     Administration (the ``DEA'') and other Federal, State, and 
     local law enforcement and regulatory agencies with the 
     experience in investigating and prosecuting illegal 
     transactions of listed chemicals and supplies; and
       (2) representatives from the chemical and pharmaceutical 
     industry.
       (b) Responsibilities.--The Task Force shall be responsible 
     for developing proposals to define suspicious orders of 
     listed chemicals, and particularly to develop quantifiable 
     parameters which can be used by registrants in determining if 
     an order is a suspicious order which must be reported to DEA. 
     The quantifiable parameters to be addressed will include 
     frequency of orders, deviations from prior orders, and size 
     of orders. The Task Force shall also recommend provisions as 
     to what types of payment practices or unusual business 
     practices shall constitute prima facie suspicious orders. In 
     evaluating the proposals, the Task Force shall consider 
     effectiveness, cost and feasibility for industry and 
     government, an other relevant factors.
       (c) Meetings.--The Task Force shall meet at least two times 
     per year and at such other times as may be determined 
     necessary by the Task Force.
       (d) Report.--The Task Force shall present a report to the 
     Attorney General on its proposals with regard to suspicious 
     orders and the electronic reporting of suspicious orders 
     within one year of the date of enactment of this Act. Copies 
     of the report shall be forwarded to the Committees of the 
     Senate and House of Representatives having jurisdiction over 
     the regulation of listed chemical and controlled substances.
       (e) Funding.--The administrative expenses of the Task Force 
     shall be paid out of existing Department of Justice funds.
       (f) FACA.--The Federal Advisory Committee Act (5 U.S.C. 
     App. 2) shall apply to the Task Force.
       (g) Termination.--The Task Force shall terminate upon 
     presentation of its report to the Attorney General, or two 
     years after the date of enactment of this Act, whichever is 
     sooner.
                                 ______
                                 

                     LAUTENBERG AMENDMENT NO. 5312

  (Ordered to lie on the table.)
  Mr. LAUTENBERG submitted an amendment intended to be proposed by him 
to the bill, H.R. 3756, supra; as follows:

       At the appropriate place, insert the following:

     SEC.   . GUN BAN FOR INDIVIDUALS COMMITTING DOMESTIC 
                   VIOLENCE.

           (a) Definitions.--Section 921(a) of title 18, United 
     States Code, is amended by adding at the end the following 
     new paragraph:
         ``(33) The term `crime involving domestic violence' means 
     a felony or misdemeanor crime of violence, regardless of 
     length, term, or manner of punishment, committed by a current 
     or former spouse, parent, or guardian of the victim, by a 
     person with whom the victim shares a child in common, by a 
     person who is cohabiting with or has cohabited with the 
     victim as a spouse, parent, or guardian, or by a person 
     similarly situated to a spouse, parent, or guardian of the 
     victim under the domestic or family violence laws of the 
     jurisdiction in which such felony or misdemeanor was 
     committed.''.
         (b) Unlawful Acts.--Section 922 of title 18, United 
     States Code, is amended--
         (1) in subsection (d)--
         (A) by striking ``or'' at the end of paragraph (7);
         (B) by striking the period at the end of paragraph (8) 
     and inserting ``; or''; and
         (C) by inserting after paragraph (8) the following new 
     paragraph:
         ``(9) has been convicted in any court of any crime 
     involving domestic violence, if the individual has been 
     represented by counsel or knowingly and intelligently waived 
     the right to counsel.'';
         (2) in subsection (g)--
         (A) by striking ``or'' at the end of paragraph (7);
         (B) in paragraph (8), by striking the comma and inserting 
     ``; or''; and
         (C) by inserting after paragraph (8) the following new 
     paragraph:
         ``(9) has been convicted in any court of any crime 
     involving domestic violence, if the individual has been 
     represented by counsel or knowingly and intelligently waived 
     the right to counsel,''; and
         (3) in subsection (s)(3)(B)(i), by inserting before the 
     semicolon the following: ``and has not been convicted in any 
     court of any crime involving domestic violence, if the 
     individual has been represented by counsel or knowingly and 
     intelligently waived the right to counsel''.
         (c) Rules and Regulations.--Section 926(a) of title 18, 
     United States Code, is amended--
         (1) by striking ``and'' at the end of paragraph (2);
         (2) by striking the period at the end of paragraph (3) 
     and inserting ``; and''; and
         (3) by inserting after paragraph (3) the following new 
     paragraph:
         ``(4) regulations providing for the effective receipt and 
     secure storage of firearms relinquished by or seized from 
     persons described in subsection (d)(9) or (g)(9) of section 
     922.''.
                                 ______
                                 

                       SHELBY AMENDMENT NO. 5313

  Mr. SHELBY proposed an amendment to the bill, H.R. 3756, supra; as 
follows:

       On page 19, line 2, before the period add the following new 
     provision: ``:Provided further, That of the funds 
     appropriated $2,500,000 may be made available for the review 
     of trade issues as authorized by Public Law 103-182''.
                                 ______
                                 

                       KERREY AMENDMENT NO. 5314

  Mr. SHELBY (for Mr. Kerrey) proposed an amendment to the bill, H.R. 
3756, supra; as follows:

       Insert at the appropriate place: ``Provided further, That 
     from funds made available for Basic Repairs and Alterations, 
     $2,000,000 may be transferred to the Policy and Operations 
     appropriation''.
                                 ______
                                 

                 HATCH (AND OTHERS) AMENDMENT NO. 5315

  Mr. HATCH (for himself, Mr. Coverdell, Mrs. Hutchison, and Mr. 
Warner) proposed an amendment to amendment No. 5295 proposed by Mr. 
Biden to the bill, H.R. 3756, supra; as follows:

       Strike all after the first word and insert the following:

     PROVISIONS RELATING TO USE OF A CONTROLLED SUBSTANCE WITH 
                   INTENT TO COMMIT A CRIME OF VIOLENCE.

       (a) Penalties for Distribution.--Section 401(b) of the 
     Controlled Substances Act is amended by adding at the end the 
     following:
       ``(7)(A) Whoever, with intent to commit a crime of violence 
     as defined in section 16, United States Code (including rape) 
     against an individual, violates subsection (a) by 
     distributing a controlled substance to that individual 
     without that individual's knowledge, shall be imprisoned not 
     more than 20 years and fined as provided under title 18, 
     United States Code.
       ``(B) As used in this paragraph, the term `without that 
     individual's knowledge' means that the individual is unaware 
     that a substance with the ability to alter that individual's 
     ability to appraise conduct or to decline participation in or 
     communicate unwillingness to participate in conduct is 
     administered to the individual.''.
       ``(b) Additional Penalties Relating to Flunitrazepam.
       (1) General penalties.--Section 401 of the Controlled 
     Substances Act (21 U.S.C. 841) is amended--
       (A) in subsection (b)(1)(C), by inserting ``or 1 gram of 
     flunitrazepam'' after ``I or II''; and
       (B) in subsection (b)(1)D), by inserting ``or 30 milligrams 
     of flunitrazepam,'' after ``schedule III,''.
       (2) Import and export penalties.--
       (A) Section 1009(a) of the Controlled Substances Import and 
     Export Act (21 U.S.C. 959(a)) is amended by inserting ``or 
     flunitrazepam'' after ``I or II''.
       (B) Section 1010(b)(3) of the Controlled Substances Import 
     and Export Act (21 U.S.C. 960(b)) is amended by inserting 
     ``or flunitrazepam'' after ``I or II,''.
       (C) Section 1010(b)(4) of the Controlled Substances Import 
     and Export Act is amended by inserting ``(except a violation 
     involving flunitrazepam)'' after ``III, IV, or V,''.
       (3) Sentencing guidelines.--The United States Sentencing 
     Commission shall amend the Sentencing Guidelines so that one 
     dosage unit of flunitrazepam shall be equivalent to one gram 
     of marijuana for determining the offense level under the Drug 
     Quantity Table.
       (d) Increased Penalties for Unlawful Simple Possession of 
     Flunitrazepam.--Section 404(a) of the Controlled Substances 
     Act (21 U.S.C. 844(a)) is amended by inserting after the 
     sentence ending with ``exceeds 1 gram.'' the following new 
     sentence: ``Notwithstanding any penalty provided in this 
     subsection, any person convicted under this subsection for 
     the possession of flunitrazepam shall be imprisoned for not 
     more than 3 years and shall be fined as otherwise provided in 
     this section.''
                                 ______
                                 

                      ASHCROFT AMENDMENT NO. 5316

  Mr. ASHCROFT proposed an amendment to amendment No. 5234 proposed by 
Mr. Daschle to the bill, H.R. 3756, supra; as follows:

       At the end of the matter proposed to be inserted, add the 
     following:
       Sec.   . Workforce Flexibility for Employees of Federal 
     Contractors.--Subchapter II of chapter 61 of title 5, United 
     States Code, shall apply to contractors and employees 
     specified in section    03(a)(1) and to contractors with an 
     entity of the executive branch of the Federal Government, and 
     employees of such contractors, in the same manner, and to the 
     same extent, as such subchapter applies to agencies and 
     employees, respectively, as defined in section 6121 of title 
     5, United States Code.

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