[Congressional Record Volume 143, Number 65 (Friday, May 16, 1997)]
[House]
[Pages H2797-H2851]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                              {time}  0915
       EMPLOYMENT, TRAINING, AND LITERACY ENHANCEMENT ACT OF 1997

  Mr. McINNIS. Mr. Speaker, by direction of the Committee on Rules, I 
call up House Resolution 150 and ask for its immediate consideration.
  The Clerk read the resolution, as follows:

                              H. Res. 150

       Resolved, That at any time after the adoption of this 
     resolution the Speaker may, pursuant to clause 1(b) of rule 
     XXIII, declare the House resolved into the Committee of the 
     Whole House on the state of the Union for consideration of 
     the bill (H.R. 1385) to consolidate, coordinate, and improve 
     employment, training, literacy, and vocational rehabilitation 
     programs in the United States, and for other purposes. The 
     first reading of the bill shall be dispensed with. General 
     debate shall be confined to the bill and shall not exceed one 
     hour equally divided and controlled by the chairman and 
     ranking minority member of the Committee on Education and the 
     Workforce. After general debate the bill shall be considered 
     for amendment under the five-minute rule. It shall be in 
     order to consider as an original bill for the purpose of 
     amendment under the five-minute rule the amendment in the 
     nature of a substitute recommended by the Committee on 
     Education and the Workforce now printed in the bill. The 
     committee amendment in the nature of a substitute shall be 
     considered by division rather than by section. Each division 
     shall be considered as read. Points of order against the 
     committee amendment in the nature of a substitute for failure 
     to comply with clause 5(a) of rule XXI are waived. Before 
     consideration of any other amendment it shall be in order to 
     consider the amendment numbered 1 pursuant to clause 6 of 
     rule XXIII, if offered by Representative McKeon or his 
     designee. That amendment shall be considered as read, may 
     amend portions of the bill not yet read for amendment, shall 
     be debatable for ten minutes equally divided and controlled 
     by the proponent and an opponent, shall not be subject to 
     amendment, and shall not be subject to a demand for division 
     of the question in the House or in the Committee of the 
     Whole. If that amendment is adopted, the bill, as amended, 
     shall be considered as the original bill for the purpose of 
     further amendment. During consideration of the bill for 
     further amendment, the Chairman of the Committee of the Whole 
     may accord priority in recognition on the basis of whether 
     the Member offering an amendment has caused it to be printed 
     in the portion of the Congressional Record designated for 
     that purpose in clause 6 of rule XXIII. Amendments so printed 
     shall be considered as read. At the conclusion of 
     consideration of the bill for amendment the Committee shall 
     rise and report the bill to the House with such amendments as 
     may have been adopted. Any Member may demand a separate vote 
     in the House on any amendment adopted in the Committee of the 
     Whole to the bill or to the committee amendment in the nature 
     of a substitute made in order as original text. The previous 
     question shall be considered as ordered on the bill and 
     amendments thereto to final passage without intervening 
     motion except one motion to recommit with or without 
     instructions.

  The SPEAKER pro tempore (Mr. Foley). The gentleman from Colorado [Mr. 
McInnis] is recognized for 1 hour.
  Mr. McINNIS. Mr. Speaker, for the purpose of debate only, I yield the 
customary 30 minutes to the gentleman from Ohio [Mr. Hall] pending 
which I yield myself such time as I may consume. During consideration 
of this resolution, all time yielded is for the purpose of debate only.
  Mr. Speaker, this is a very simple resolution. The proposed rule is 
an open rule providing for 1 hour of general debate equally divided, 
controlled by the chairman and the ranking member of the Committee on 
Education and the Workforce. After general debate, the bill shall be 
considered for amendment under the 5-minute rule. Furthermore it shall 
be in order to consider as an original bill for the purpose of 
amendment under the 5-minute rule the amendment in the nature of a 
substitute recommended by the Committee on Education and the Workforce 
now printed in the bill.
  Additionally, Mr. Speaker, House Resolution 150 provides that the 
committee amendment in the nature of a substitute shall be considered 
by division rather than section. Moreover, points of order against the 
committee amendment in the nature of a substitute for failure to comply 
with clause 5(a) of rule XXI are waived.
  Mr. Speaker, the rule also provides for consideration of a manager's 
amendment, if offered by the gentleman from California [Mr. McKeon] or 
his designee, which shall be debatable for a period of 10 minutes. If 
this amendment is adopted, the amendment will be considered as part of 
the base text for further amendment purposes. Furthermore, this rule 
provides that the Chair may accord priority in recognition to Members 
who have preprinted their amendments in the Congressional Record.
  Mr. Speaker, at the conclusion of consideration of the bill for 
amendment, the Committee shall rise and report the bill to the House 
with such amendments as may have been adopted. Finally, Mr. Speaker, 
the rule provides one motion to recommit with or without instructions.
  Mr. Speaker, under the proposed rule each Member has an opportunity 
to have their concerns addressed, debated and ultimately voted up or 
down by this body. House Resolution 150 was passed out of the Committee 
on Rules by voice vote. I urge my colleagues to support the open rule.
  Mr. Speaker, I reserve the balance of my time.
  Mr. HALL of Ohio. Mr. Speaker, I yield myself such time as I may 
consume.
  (Mr. HALL of Ohio asked and was given permission to revise and extend 
his remarks.)
  Mr. HALL of Ohio. Mr. Speaker, I want to thank my colleague, the 
gentleman from Colorado [Mr. McInnis] for yielding me the time. House 
Resolution 150 is an open rule. It will allow for full and fair debate 
on H.R. 1385, which is the Employment Training and Literacy Enhancement 
Act of 1997.
  This bill consolidates more than 60 existing employment training and 
literacy programs and establishes three block grants to States and 
localities. It is needed to improve Federal education and job training 
programs to meet more effectively the needs of States and local 
communities. These programs have provided valuable assistance to 
dislocated workers and disadvantaged adults and young people. The goal 
is to improve a system which has already demonstrated its importance to 
our Nation's work force.
  As my colleague from Colorado described, this rule provides for 1 
hour of general debate, equally divided and controlled by the chairman 
and ranking minority member of the Committee on Education and the 
Workforce. Under this rule, amendments will be allowed under the 5-
minute rule, the normal amending process in the House. All Members will 
have the opportunity to offer amendments.
  It is my understanding that, before the Committee on Rules met last 
night, an agreement between the majority and minority had been reached 
on the manager's amendment to drop certain provisions dealing with 
special demonstrations. Subsequently the rule was approved unanimously 
by the Committee on Rules on a voice vote.
  Mr. Speaker, I urge the adoption of this open rule and the bill.
  Mr. Speaker, I yield back the balance of my time.
  Mr. McINNIS. Mr. Speaker, I yield back the balance of my time, and I 
move the previous question on the resolution.
  The previous question was ordered.
  The resolution was agreed to.
  A motion to reconsider was laid on the table.
  The SPEAKER pro tempore. Pursuant to House Resolution 150 and rule 
XXIII, the Chair declares the House in the Committee of the Whole House 
on the State of the Union for the consideration of the bill, H.R. 1385.

[[Page H2798]]

  The Chair designates the gentleman from Ohio [Mr. Ney] to preside 
over the Committee of the Whole, and requests the gentleman from 
Colorado [Mr. McInnis] to assume the chair temporarily.

                              {time}  0923


                     In the Committee of the Whole

  Accordingly the House resolved itself into the Committee of the Whole 
House on the State of the Union for the consideration of the bill (H.R. 
1385) to consolidate, coordinate, and improve employment, training, 
literacy, and vocational rehabilitation programs in the United States, 
and for other purposes, with Mr. McInnis (Chairman pro tempore) in the 
chair.
  The Clerk read the title of the bill.
  The CHAIRMAN pro tempore. Pursuant to the rule, the bill is 
considered as having been read the first time.
  Under the rule, the gentleman from Pennsylvania [Mr. Goodling] and 
the gentleman from Missouri [Mr. Clay], each will control 30 minutes.
  The Chair recognizes the gentleman from Pennsylvania [Mr. Goodling].
  Mr. GOODLING. Mr. Chairman, I yield myself such time as I may 
consume.
  Today, we are going to deal with legislation that is the culmination 
of 6, 7, 8 years of work, I would suppose, of a very dedicated staff 
and members of this committee as well as the Governors, State 
legislators, educators, local elected officials, State elected 
officials. It is a bipartisan effort to take what the General 
Accounting Office said are 160 job training programs from the Federal 
level, consolidate them into three block grants and get them back to 
State and local government so they can be much more effective.
  As most Members know, only 25 percent of our population ever graduate 
with a 4-year degree. Hundreds of thousands of those, of that 25 
percent, are either unemployed or underemployed. At the same time, we 
have spent very little time dealing with the 75 percent who do not 
receive a 4-year college degree and yet we had hundreds of thousands of 
high-technology jobs waiting for those who can be trained in order to 
take those jobs.
  Unfortunately, there are those who mistakenly believe that this 
legislation increases the Federal role in the area of employment, 
training and literacy programs. There are those who say that this 
legislation is an intrusion into the American family. This could not be 
further from the truth. H.R. 1385 vastly reduces Federal involvement in 
these programs, transfers the vast majority of resources and authority 
to the States and local communities, and most importantly, sends 
authority and responsibility into the hands of actual individuals, 
giving people choices in the selection of occupation services and 
service providers so that they are empowered to succeed in today's 
society. So what happens if we do nothing today or if this bill gets 
bogged down in political debate?
  I will tell my colleagues what happens. Most of these programs are 
permanently authorized and will continue to receive funding without any 
reform at all. Government control and bureaucracy will not be curtailed 
but will continue, and these programs will continue to be funded.
  In fact, I just heard that the budget negotiators are now talking 
about adding $3 billion for employment and training assistance for 
welfare recipients. I sure hope that they are talking about that money 
going to this consolidated program, not something new from the Federal 
level.
  So we cannot afford to lose this opportunity to reform the system so 
that States and local communities, and, most importantly, American 
citizens have the flexibility to develop employment, training and 
literacy programs that work.
  Mr. Chairman, I reserve the balance of my time.
  Mr. CLAY. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, the ability of our Nation to provide education and 
training opportunities to our people is more important now than ever 
before. Our success in the increasingly competitive global economy will 
largely depend upon the skills and productivity of our workers. 
Education and job training programs provide workers with the 
opportunity to learn and to improve their skills.
  It is our duty to make certain that those programs are effective and 
efficient. Many have criticized our current training system for being 
too duplicative and too sparse. The legislation we consider today will 
improve the coordination of services, provide quality assistance and 
foster efficiency.
  I am especially grateful that this agreement addresses the unique 
needs of dislocated workers as well as providing for meaningful local 
decisionmaking. As Members may remember, these issues were among the 
highest priorities advocated by Democrats during last year's 
deliberations on the careers bill. With respect to the adult education 
provisions of this bill, I believe that we have made solid progress. We 
have made sure that the program remains a part of the Elementary and 
Secondary Education Act, that it will be administered by the State 
agency now in charge of adult education, that the program has a 
reasonable maintenance of effort standard, and that it will continue to 
serve a critically important role in the education of those who need 
its services.
  I want to particularly compliment the gentleman from Pennsylvania 
[Mr. Goodling] and the gentleman from California [Mr. McKeon] for their 
leadership and for their sincere efforts to make this a bipartisan 
effort on this bill. I appreciate their willingness to seek resolution 
of our differences on this issue. I also want to commend my Democratic 
colleague, the gentleman from Michigan [Mr. Kildee], the ranking member 
of the Subcommittee on Postsecondary Education, Training and Life-Long 
Learning, for picking up where his predecessor, Pat Williams, left off 
by ensuring that any compromise adequately protects Democratic 
concerns.

                              {time}  0930

  Mr. Chairman, I ask unanimous consent that the gentleman from 
Michigan [Mr. Kildee], the ranking Democrat on the subcommittee, be 
given the authority to control the minority's time during general 
debate.
  The CHAIRMAN pro tempore (Mr. McInnis). Is there objection to the 
request of the gentleman from Missouri?
  There was no objection.
  Mr. CLAY. Mr. Chairman, I reserve the balance of my time.
  Mr. GOODLING. Mr. Chairman, I yield such time as he may consume to 
the gentleman from California [Mr. McKeon], the subcommittee chairman, 
who worked long and hard on this issue.
  Mr. McKEON. Mr. Chairman, I thank the gentleman for yielding me this 
time. I rise in strong support of H.R. 1385, the Employment, Training, 
and Literacy Enhancement Act of 1997.
  This bill is an important step in addressing the Nation's long-term 
work force preparation needs by helping States and local communities to 
make sense out of our current confusing array of employment, training 
and literacy programs.
  The bill accomplishes long overdue reform, consolidating over 60 
Federal programs through the establishment of three block grants to 
States and local communities for the provision of such services and 
through amendments to the Rehabilitation Act.
  It accomplishes key reforms in this country's job training system by 
building on the three principles of individual choice, quality training 
for the 21st century, and the transfer of resources and authority for 
employment, training and literacy programs to States and local 
communities.
  For youth, we amend the JTPA's current disadvantaged youth programs, 
increasing the focus of such programs on longer term academic and 
occupational training rather than short-term employment fixes, 
requiring that all employment experiences under these programs be tied 
to academic and occupational learning opportunities and prioritizing 
services for hard-to-serve disadvantaged youth, including school 
dropouts.
  For adults we establish a single delivery system for adult employment 
and training that maximizes individual choice in the selection of 
occupations and training providers. The bill encourages an employment-
first approach to job training that will greatly compliment our efforts 
in welfare reform, where individuals purchase training services through 
their use of vouchers when in need of skilled training.
  Not only will this legislation result in improved services to 
dislocated

[[Page H2799]]

workers, but it will also result in enhanced services provided to 
welfare recipients who must make the transition from welfare to work.
  Title V of the bill amends the current Adult Education Act, 
consolidating existing adult education and family literacy programs 
into flexible block grants to States. This portion of the bill includes 
important linkages to employment and training programs to ensure that 
individuals seeking employment and training services have the literacy 
skills they need in order to succeed.
  With regard to vocational rehabilitation, the bill extends the 
authorization through the year 2000, allowing the 106th Congress to 
comprehensively review the Rehabilitation Act. It also streamlines the 
paperwork requirements of the title 1 vocational rehabilitation 
program, saving resources and increasing client choice.
  This legislation will not only provide the flexibility that States 
and local communities need to vastly improve their employment and 
training efforts, but it will provide individuals that are in need of 
these services with the information, choice and resources that they 
need to become skilled and gainfully employed.
  Unfortunately, there is a great deal of misunderstanding about this 
bill. This legislation is written to empower individuals, not the 
Federal Government, to make decisions about their own lives and their 
individual employment and training needs. The bill significantly 
reduces the involvement of the Federal Government in the design and 
operation of these programs.
  Because Federal job training programs are permanently authorized, if 
we do nothing today, we will keep the status quo and programs will 
continue to be funded with no reform or reduction in Federal 
bureaucracy. In fact, it is likely that the budget will contain 
increased funding for employment and training for welfare recipients, 
another new program on top of many others.
  We cannot afford to continue to operate in this fashion. We need the 
Employment, Training, and Literacy Enhancement Act that will allow 
local communities to make sense out of these programs. And if the 
budget does contain increased funding for services to welfare 
recipients, we must ensure that this system is fully utilized so that 
we do not add yet another program to our growing list of employment, 
training and literacy programs.
  The skills of this Nation's work force are more important today than 
ever before. This legislation will go far to help States and local 
communities to reform employment, training and literacy programs that 
address the individual skill needs of their citizens, and it will go 
far to empower individuals to break the cycle of dependency that has 
plagued our country for far too long.
  I want to take this opportunity to thank the Members of our committee 
for their contributions in the development of this legislation; in 
particular, the gentleman from Pennsylvania, Chairman Goodling, for his 
insight and leadership over the years on this issue. He has been 
working on this for many years, and I am proud to see that it is coming 
to fruition.
  I also want to thank the gentleman from Missouri [Mr. Clay], and the 
gentleman from Michigan [Mr. Kildee], who has worked so hard and worked 
closely with us to develop this legislation in a truly bipartisan 
fashion.
  I would also like to thank the administration for working with us to 
make this effort one that is likely to be enacted this year.
  Finally, I am pleased to announce that the National Governors' 
Association, the National Conference of State Legislatures, and the 
National Association of Counties have reached an important agreement 
with regard to this legislation that will be reflected in an en bloc 
package of amendments that I plan to offer later this morning.
  And I would like to thank these organizations for all their efforts 
to help us in the development of this bill. In fact, all three of these 
organizations, in addition to the American Association of Community 
Colleges, the U.S. Chamber of Commerce, the Society for Human Resource 
Management, the Computing Technology Industry Association, and others 
have written in support of H.R. 1385.
  This is a good bill that will help the country's workers gain the 
skills they need to succeed in today's work force. I urge my 
colleagues' support of this important legislation.
  Mr. KILDEE. Mr. Chairman, I yield myself such time as I may consume.
  (Mr. KILDEE asked and was given permission to revise and extend his 
remarks.)
  Mr. KILDEE. Mr. Chairman, I am pleased to rise to support H.R. 1385, 
the Employment, Training, and Literacy Enhancement Act of 1997. We have 
been talking for several years now about the need to create an 
integrated employment and training system that meets the challenge of 
preparing American workers for the jobs of the future.
  Last year our efforts collapsed in conference, I believe largely due 
to problems in the Senate. This year, however, the gentleman from 
California [Mr. McKeon], the subcommittee chairman, and the gentleman 
from Pennsylvania [Mr. Goodling], the committee chairman, have 
approached this issue in a bipartisan manner, and I believe the bill 
before us today reflects the consensus approach they have taken to job 
training reform.
  In particular, I certainly appreciate the fact that they have ensured 
that the Federal investment in dislocated workers is maintained. While 
it is important to streamline and integrate job training programs, it 
would have been short-sighted to have done so in a way that reduced our 
ability to provide services to workers in transition. The guarantee of 
a separate funding stream within the adult block grant in H.R. 1385 is 
a major improvement over last year's legislation.
  I am also pleased to see the extent to which this bill builds upon 
what is already working in local communities.
  The bill also strengthens accountability in the job training system. 
First, all job training providers will be accountable to customers 
through a requirement that they provide annual information that will 
serve as a consumer's report card that will help guide customers' 
choices about which institutions have the best record of helping to 
acquire the skills necessary to get jobs.
  In addition, States and local areas will have to reach negotiated 
performance benchmarks that will serve to ensure that they are 
accountable for results. The accountability provisions are considerably 
stronger than last year's conference report, and I am particularly 
supportive of new safeguards which will ensure adults are not defrauded 
by unscrupulous or fly-by-night training providers.
  The bill consolidates programs for at-risk economically disadvantaged 
youth, integrating classroom and work-based learning, providing 
learning opportunities at work sites, linking secondary learning and 
postsecondary learning, and fully involving the private sector.
  The reintroduction of a substate formula for a portion of the funds 
in both adult and youth block grants will also be an important 
safeguard to ensure that local areas continue to get the resources to 
meet the needs of their population. I applaud the State and Local 
Coalition for reaching agreement to reinsert substate formulas as 
reflected in the Chairman's en bloc amendment.
  I think there are some areas in this bill which could still use 
improvement, and I hope that as we move in the Senate and then in the 
conference the spirit of bipartisan cooperation will continue to 
prevail.
  With respect to the Adult Education and Family Literacy Act 
provisions in this legislation, I am very pleased with what we have 
been able to accomplish and am especially gratified that we did our 
work in a spirit of true bipartisanship. In that regard, I want to pay 
special thanks again to both the chairman of the Committee on Education 
and the Workforce, my good friend, the gentleman from Pennsylvania [Mr. 
Goodling], who has long been a champion of adult education and family 
literacy, and to the chairman of the subcommittee, the gentleman from 
California [Mr. McKeon], who has been very willing to work out 
differences in a very amicable fashion.
  This legislation keeps adult education as a part of the Elementary 
and Secondary Education Act. I believe this is critical in making it 
very clear that adult education is first and foremost an education 
program.
  There are other adult education provisions of this legislation that 
are also

[[Page H2800]]

important; provisions such as the separate such sums authorization, 
continued funding for professional development, a more reasonable 
maintenance of effort standard, and the possibility of ongoing support 
for State literacy resource centers.
  There are several areas, however, where it might be helpful to have 
greater clarity regarding legislative intent. First, I view the 
provisions regarding the eligible agency in charge of adult education 
programs to be the State agency currently in charge of those programs, 
and that the reference to State law means State statutory law that 
cannot be overridden by a Governor's executive order.
  Second, the accountability provisions in this legislation certainly 
do not preclude the Secretary of Education from judging State plans on 
both quality and technical specifications. Quite to the contrary, I 
believe the Secretary has the clear authority to make such a judgment.
  Third, English literacy programs most definitely include English as a 
second language instruction.
  Fourth, when we go to conference, I believe we should fashion an 
agreement that will end the confusion of having to consult two 
different acts to obtain a full knowledge and understanding of the 
Federal adult education legislation. It is important that those at the 
State and local level be able to look at one act and get a full and 
complete understanding of Federal law in this area.
  While not every provision I wanted has found its way into this 
legislation, I am on the whole very pleased with the adult education 
provisions we have been able to work out. I believe they will move 
adult education forward and they will contribute immensely to both 
strengthening and expanding the very crucial work done by adult 
education programs in community after community across this land.
  I am also pleased to support the amendments to the Vocational 
Rehabilitation Act contained in H.R. 1385. Those amendments go a long 
way in streamlining and clarifying certain provisions of that act. 
Specifically, the revised individualized plan for employment will 
provide a greater opportunity for disabled persons to develop their own 
employment plans. The role and participation of program consumers in 
the individualized plan for employment will be strengthened as a 
result.
  Under current law, the individual's plan is jointly developed and 
approved by the eligible individual and the vocational rehabilitation 
counselor. Under this bill, an eligible individual would be allowed the 
option to assume primary responsibility in the development and 
direction of that employment plan.
  The bill also simplifies and clarifies existing requirements and 
eliminates burdensome process requirements without compromising 
consumer protections in order to streamline the process.
  Mr. Chairman, the bill under consideration also provides for a 
greater consumer involvement based upon informed choice options. State 
agencies would be required to develop written policies and procedures 
related to informed choice, including procedures for informing 
individuals about the availability and scope of informed choice, and 
for assisting individuals to acquire information necessary to exercise 
that choice.

                              {time}  0945

  Finally, Mr. Chairman, H.R. 1385 requires that Federal agencies 
provide certification of compliance with electronic and information 
technology accessibility guidelines under section 508 of the 
Rehabilitation Act. In other words, Mr. Chairman, this bill ensures 
that the Federal Government monitors its own requirements to assist 
disabled persons with respect to the accessibility of electronic and 
information technology.
  Mr. Chairman, I am pleased to support H.R. 1385 and am very grateful 
to the gentleman from Pennsylvania [Mr. Goodling] and the gentleman 
from California [Mr. McKeon] for their very, very hard work, their 
very, very close cooperation and their willingness to compromise. We 
both compromised on this. Neither side is totally pleased, but this is, 
I think, a piece of work that we can support.
  Mr. Chairman, there has been some concern expressed that this bill 
will set up a parallel apprenticeship and training certification 
procedure in competition with the process administered by the 
Department of Labor's Bureau of Apprenticeship and Training and State 
apprenticeship agencies approved by the BAT. I am satisfied, however, 
that designation by Local Workforce Boards, in consultation with the 
State's Governor and legislature, of training programs eligible to 
receive funds under this bill is not intended to certify such programs 
for Federal purposes in the same manner as certification by the BAT and 
State apprenticeship agencies, and should not be regarded as such. 
Moreover, I am aware of concern that funds authorized by this bill will 
be used to provide financial assistance to apprenticeship training 
programs in industries, such as construction, that have been 
traditionally financed exclusively by private funds. I am confident 
that the outstanding training currently provided in these areas will 
continue to be financed by the private sector so that the limited 
financial resources authorized by this bill can be earmarked for 
training in these areas that have been neglected or, for some other 
reason, must rely on Federal financial assistance. I intended to work 
with Members of the Senate to clarify further this policy in the final 
bill.
  Mr. McKEON. Mr. Chairman, I yield 2\1/2\ minutes to the gentlewoman 
from New Jersey [Mrs. Roukema], a member of the committee.
  (Mrs. ROUKEMA asked and was given permission to revise and extend her 
remarks.)
  Mrs. ROUKEMA. Mr. Chairman, I want to express my deep appreciation to 
the chairman of the full committee, the chairman of the subcommittee 
and certainly the ranking members who have worked so hard on this 
bipartisan effort so that both sides of the aisle have reached 
consensus, and I think we should be proud of that. This is a good bill, 
and I support it.
  Certainly following on the heels of last year's efforts, we should 
look forward to great advancement. This is a great advancement and 
improvement over current law. It not only consolidates the programs of 
adult training, disadvantaged youth training and adult education, and 
literacy, but it also fortunately adopted the right course of action by 
removing the vocational education part from this legislation to ensure 
that voc ed would not be lost in the overall job training block grant. 
I think that was a success.
  I would like to commend the committee for recognizing the importance 
of the supportive services, transportation and child care assistance. 
We incorporated that into this bill and that provision had its 
beginning in legislation that I, along with the gentleman from Texas 
[Mr. Smith], the gentleman from Indiana [Mr. Roemer], and the gentleman 
from North Carolina [Mr. Watt], had sponsored. We deeply appreciate the 
fact that that kind of training assistance has been incorporated in 
this bill. It will help hundreds of thousands of people take advantage 
of training possibilities.
  Mr. Chairman, I think my colleagues know my strong support over time 
of the block grant approach and I must say that I continue to support 
block grants. But in this legislation I think we have struck the proper 
balance and given the appropriate safeguards to get the best advantage 
out of how States and the Federal Government work together in these 
training programs. The legislation I think has found the proper 
balancing point between State and local governments, and we will all 
have the advantage of this relationship.
  I want to point out in specific terms that it is organizations like 
the ARC's in my district of Bergen and Passaic Counties and Warren and 
Sussex Counties that have the experience with servicing individuals 
with disabilities and have earned the respect of everyone. It is these 
kinds of community organizations that will work with the business 
community under this legislation to provide the job opportunities and 
the training that is necessary. I think it is very practical. It uses 
the strengths of all the private sector as well as the public sector, 
and we are in great debt to the organizations such as these that ensure 
that these individuals with disabilities will receive the best possible 
assistance and training.
  Mr. Chairman, I rise today in support of this legislation. As a 
member of the Subcommittee on Post-Secondary, Training and Lifelong 
Learning, I am proud of the bipartisan effort that has brought Members 
on both sides of the aisle to consensus. We have here before us clear 
evidence that bipartisanship works and that Congress works when we are 
bipartisan.

[[Page H2801]]

  Following on the heels of last year's failed attempt at reform, this 
bill represents a significant improvement over current law. It 
consolidates programs of adult training, disadvantaged youth training 
and adult education, and literacy. I would add that the committee 
adopted the right course by removing vocational education from this 
legislation to ensure that it would not be lost in the overall job 
training block grant.
  In addition, I would like to commend the committee for recognizing 
the importance of supportive services, such as transportation and child 
care assistance, which will enable individuals to participate in the 
adult training services. This began as legislation introduced by myself 
and Representatives Lamar Smith of Texas, Tim Roemer of Indiana, and 
Mel Watt of North Carolina. Our legislation was introduced to make it 
possible for adults who want to learn to read and receive training to 
follow that path. About 300,000 individuals who enroll in adult 
education programs have to withdraw because of the lack of support 
services. Access to transportation and child care makes it possible for 
those who want to make their lives better to take advantage of the 
adult education programs. We are pleased that our legislation was able 
to become a part of this bill before us today.
  Mr. Chairman, as many of my colleagues know, I have been a longtime 
supporter of the block grant approach. However, I continue to insist 
that all block grants to the States come with effective and appropriate 
safeguards. Therefore, I am pleased that this legislation continues to 
require the States to work with the appropriate Secretary in 
determining these goals and benchmarks, while allowing the State to 
specify standards and indicators to focus on employment outcomes. The 
legislation also highlights certain core indicators, including 
placement in unsubsidized employment, retention in employment, increase 
in earnings, attainment of industry-recognized skills, reduction in 
welfare dependency and attainment of high school diploma or general 
equivalency diploma.
  In addition, States are responsible for developing a State plan which 
would be submitted, reviewed, and approved by the Secretary for review.
  This legislation also has found the proper balancing point between 
State and local governments. The States will be responsible for working 
on performance indicators, while the local work force development board 
will be responsible for the day-to-day oversight of job training and 
placement.
  Mr. Chairman, I would also like to commend the committee on including 
the concerns of the disabled community in the composition of the work 
force development boards. Community-rehabilitation providers which 
serve individuals with disabilities have earned the respect of their 
local communities and the public sector.
  In New Jersey, the ARC's of Bergen and Passaic Counties, and Warren 
County and Sussex County have all had experience with serving 
individuals with disabilities and have earned the respect of northern 
New Jersey. Their involvement with the business sector has provided the 
community-rehabilitation providers with a comprehensive knowledge of 
the job opportunities available to and training services needed by 
individuals with disabilities.
  Organization such as these will ensure that individuals with 
disabilities will receive proper career development information which 
will maximize the board's ability to assist individuals with 
disabilities in gaining successful employment. Such a goal is an 
important part of the goals of this legislation.
  And, Mr. Chairman, let take this opportunity to thank Mr. James 
Seath, executive director of the ARC of Bergen and Passaic Counties and 
Mr. Bob Pruznick, the executive director of Warren County ARC for their 
advice and counsel.
  Mr. Chairman, I support this bipartisan legislation. It represents 
solid progress toward increasing job training and placement as our 
Nation faces the education and work place challenges of the new 
millennium.
  Mr. KILDEE. Mr. Chairman, I would also like to thank the gentlewoman 
from New Jersey [Mrs. Roukema] for all her work on the committee. She 
is indeed a great Member of Congress and has been very helpful on this 
bill.
  Mr. Chairman, I yield 3 minutes to the gentlewoman from California 
[Ms. Woolsey].
  Ms. WOOLSEY. Mr. Chairman, first of all I want to thank the gentleman 
from California [Mr. McKeon] and the gentleman from Michigan [Mr. 
Kildee] for their leadership on this bill. It is a good bill and it is 
truly a bipartisan effort, and it reflects also the good working 
relationship of the gentleman from Pennsylvania [Mr. Goodling], the 
chairman, and the gentleman from Missouri [Mr. Clay]. I thank them so 
much for letting us have something this positive to be talking about 
today. That is why it is such a good bill.
  I am particularly pleased that my amendments concerning training for 
nontraditional occupations and studies on self-sufficiency standards 
were included in the bill. The requirements of the new welfare law make 
it more important than ever that women have a full range of job 
choices. This bill will make it easier for women to train for those 
high-wage jobs that actually pay a livable wage.
  H.R. 1385 will also help to ensure that job training programs that 
receive taxpayers' funds do in fact train workers for jobs that pay a 
livable wage, a job they can afford to live on. The bill does this by 
allowing the Secretary of Education to conduct research to develop 
self-sufficiency standards.
  A self-sufficiency standard measures local basic living costs, such 
as housing, transportation and child care. These costs determine 
whether a worker after training will earn enough in salary and benefits 
to make herself and her family truly self-sufficient, able to live 
independently off of public assistance. This is important, because it 
is a waste of taxpayers' funds to train workers for jobs that do not 
enable them to support themselves and their families and to keep them 
independent of assistance.
  I am also pleased that this bill that we are considering today 
includes the amendments offered in committee by the gentleman from 
Colorado [Mr. Bob Schaffer] and myself to ensure that State legislators 
have a role in implementing job training funds as part of State-wide 
planning for their education and welfare programs.
  Mr. Chairman, this is a good bill. It makes needed reforms to our 
system of job training programs, and I urge my colleagues to support 
it.
  Mr. GOODLING. Mr. Chairman, I yield the balance of my time to the 
gentleman from California [Mr. McKeon] and I ask unanimous consent that 
he be permitted to control that time.
  The CHAIRMAN. Is there objection to the request of the gentleman from 
Pennsylvania?
  There was no objection.
  Mr. McKEON. Mr. Chairman, I yield 2 minutes to the gentleman from 
Nebraska [Mr. Barrett], a member of the committee.
  Mr. BARRETT of Nebraska. Mr. Chairman, I thank the gentleman for 
yielding me this time, and I congratulate him for his efforts in 
bringing the bill to this point, along with the assistance of the 
gentleman from Michigan [Mr. Kildee], his ranking member, the gentleman 
from Pennsylvania [Mr. Goodling], the committee chair, and the 
gentleman from Missouri [Mr. Clay], the ranking member of the full 
committee.
  Mr. Chairman, I do rise in strong support of H.R. 1385. As has been 
suggested, the bill already eliminates nearly 70 programs, directs more 
money to States and local communities, and it does enable individuals 
to make an informed decision on what types of job training they need.
  The bill also includes my amendment that would make a change in 
current law that will have a positive effect on our disabled youth who 
are preparing to leave school and move into the State vocational 
rehabilitation system.
  The Nebraska Vocational Rehabilitation Services agency operates a 
transition program that can allow the agency to participate in a 
disabled child's individualized education plan once that child reaches 
the age of 14. This participation has been welcomed by schools and 
parents as it does help them to understand the types of vocational 
rehabilitation services that may be available once the child leaves 
high school. The transition program is helping 2,000 children to 
prepare to enter the State's vocational rehabilitation system.
  Yet, current Federal requirements are burdensome because State 
vocational rehabilitation agencies must have an individualized written 
rehabilitation plan, should the State make contact with an individual 
who may need their services. In the context of transition services for 
children, this requirement is unnecessary as the child's special 
education planning, which is mandated by IDEA, already takes into 
account the child's educational needs. My amendment merely removes the 
written requirement for children who are being served through an 
individualized educational plan.

[[Page H2802]]

  I do encourage my colleagues to support H.R. 1385.
  Mr. KILDEE. Mr. Chairman, I yield 3 minutes to the gentleman from 
Ohio [Mr. Traficant].
  (Mr. TRAFICANT asked and was given permission to revise and extend 
his remarks.)
  Mr. TRAFICANT. Mr. Chairman, I found very interesting the remarks of 
the gentleman from Michigan [Mr. Kildee], a true gentleman, and when it 
comes to education programs in Congress, we have probably seen more 
real spirit of working together than anywhere else.
  I want to compliment the gentleman from Pennsylvania [Mr. Goodling] 
and the gentleman from Missouri [Mr. Clay]. I think they have tried to 
help the American people and the gentleman from Michigan [Mr. Kildee] 
and the gentleman from California [Mr. McKeon] now joining forces with 
that, I want to compliment the gentlemen, and I thank them from an area 
that lost an awful lot of jobs.
  With that, this bill combines three major programs. It is smart, it 
is intelligent what the gentlemen have done, but in order for me to 
effect my Buy American language, I have to offer three Buy American 
amendments to three different spots, and after all that I am not sure 
it is going to apply to every dollar in the bill so I want to make sure 
the legislative history in debate understands that after this is 
offered en bloc and hopefully accepted that all of the money in this 
act will be covered by the basic language that is exactly similar in 
all three amendments.
  I would like to talk just for a minute about some developments that 
have occurred in our country in the loss of jobs. We are retraining 
workers and we are trying to do our best with dislocated workers. It is 
very important in my district. But I am actually trying to find out 
what jobs we are retraining them for. I think we are getting to the 
point where we have trained a lot of welders, a lot of burger flippers, 
but the occupational classifications of new jobs listed by the 
Department of Labor scares me I say to the gentleman from Pennsylvania 
[Mr. Goodling] and the gentleman from Missouri [Mr. Clay]. As the 
chairman and ranking member, I want to just let the gentlemen hear a 
few: Belly builder; plate stacker; streetlight repairer helper; diaper 
machine tender; dog washer; dog food mixer; earmuff assembler; 
brassiere cup molder cutter; sweatband shaper; ball point pen cartridge 
tester; feather stitcher; ribbon winder; puzzle assembler; dope mixer. 
I really want to know what that is. Bosom presser; sanitary napkin 
folder; pantyhose crotch closer.
  Let me say this. There is dignity in all work and I do not want to 
malign anybody's occupation, but when our Department of Labor has to 
try and make it look like there are jobs in this country by actually 
dotting every ``I'', crossing every ``T'' and trying to imagine every 
little simple task that might be covered under basic laboring types of 
provisions, then we have other things to do than to just retrain.
  I am asking today from one of the best committees I have seen operate 
since I have been here, to the gentleman from Pennsylvania [Mr. 
Goodling] and to the gentleman from Missouri [Mr. Clay], to put their 
minds together and pull upon the resources of Congress and see what we 
can do to enhance reasonable job opportunities for those dislocated 
workers. My amendment will cover all the provisions and I want it to be 
understood it will cover all the money in the bill. I thank the 
gentleman for yielding me this time.
  Mr. McKEON. Mr. Chairman, I yield 2 minutes to the gentleman from 
Pennsylvania [Mr. Peterson], a new member of the committee who has been 
very active in working on this bill.
  Mr. PETERSON of Pennsylvania. Mr. Chairman, I too would like to rise 
to congratulate the chairmen of this committee and the subcommittee and 
the ranking members of the committee and the subcommittee because this 
is how it should be done. Those of my colleagues who think this bill 
will pass rather easily today without much trouble, that is true. But 
there has been a whole lot of hard work, a whole lot of compromise, a 
whole lot of commitment to getting to home plate and scoring the run. I 
congratulate those. I think a lot of other committees in this Congress 
could watch and observe and do better.
  America will be challenged in my view in the years ahead to provide 
the workers with the opportunities to receive the technical education 
they need to meet tomorrow's jobs. As I view factories, and I try to 
tour at least one or two a week in my district, they are changing. If 
we are going to remain a strong manufacturing nation, and I think we 
must, I agree with the gentleman from Ohio, if we do not maintain 
manufacturing in this country, we will be a second-rate nation.

                              {time}  1000

  We have to have workers with a whole lot more skills than were needed 
just a few years ago. Today we are taking a step, not all the steps we 
need to take, but we are taking a major step. When we combine 60 
programs into 3 block grants and allow the local folks, the States and 
the local community groups, to decide what is needed and how to do it, 
we will be much more successful.
  Historically, as a State legislator and a State senator, I so often 
tried to help people fit into those Federal categories and get the 
training they needed, and so often we failed because even though there 
were 60-some programs, the Federal Government cannot design enough 
slots and enough types of programs to meet the needs that are out 
there, and we failed at it. Many people were trained for jobs that are 
not available, people were given skills that no longer are valuable, 
and that will have a chance to cease with this program.
  Mr. Chairman, I want to also thank the gentleman for allowing my 
amendment which will allow incumbent workers to be trained, and I think 
that is important. So often we have skill centers sitting idle on 
weekends and nights, and they were not able to use them because of all 
the Federal hoops they had to jump through, and those should be on a 
fee-for-service basis, allowed to train local people, and the 
investments we made need to be utilized to train everybody we can 
train. And I just think this is a bill moving in the right direction, 
and I commend those who made it happen.
  Mr. KILDEE. Mr. Chairman, I yield 2 minutes to the gentlewoman from 
California [Ms. Eshoo] who played a very crucial and essential role in 
perfecting section 508.
  Ms. ESHOO. Mr. Chairman, I rise in support of H.R. 1385 and the en 
bloc amendment.
  In particular, I would like to thank the gentleman from Pennsylvania 
[Mr. Goodling], the gentleman from California [Mr. McKeon], the 
gentleman from Missouri [Mr. Clay], and certainly the gentleman from 
Michigan [Mr. Kildee] for accepting the language I offered to 
strengthen section 508 of the Rehabilitation Act. I would also like to 
thank the gentleman from Massachusetts [Mr. Tierney] for his 
willingness to actively support this provision in full committee.
  There are approximately 145,000 Federal employees with disabilities, 
and they comprise 7\1/2\ percent of the Federal work force. Most work 
in the Departments of Defense, Veterans' Affairs, and Agriculture.
  Information technology has played a large role in opening up jobs in 
the Federal Government and elsewhere to people with disabilities. An 
estimated 43 percent of employed people who are blind or visually 
impaired use computers to write. However, information technology can 
also shut the door to people with disabilities if it is not accessible 
to them.
  So it is imperative for Federal employees with disabilities to have 
Federal agencies purchase information technology that gives them a 
chance to do their jobs well. Section 508 of the Rehabilitation Act was 
designed to achieve this goal, but it was not working as it should have 
because it did not have teeth in it and terms of enforcement. It now 
does.
  The en bloc amendment establishes a way to enforce agency compliance. 
It will require the OMB to develop uniform procedures for Federal 
agencies to use each year to certify whether or not they are in 
compliance with section 508, and the OMB also is given authority to 
review agency compliance statements and assist the agencies in making 
their information technology systems accessible to their employees with 
disabilities.

[[Page H2803]]

  I urge my colleagues to support certainly this bill. I congratulate 
the leadership and all the members of the committee for the outstanding 
work that they have done. I certainly support H.R. 1385, and I am very 
proud to have this language included. I really think it is going to 
make a difference for the people that we employ, and the message will 
go out to the country that we, too, the Federal Government, are an 
enlightened employer in this country.
  Mr. McKEON. Mr. Chairman, I yield 2\1/2\ minutes to the gentleman 
from Montana [Mr. Hill].
  Mr. HILL. Mr. Chairman, I would like to thank the gentleman from 
California [Mr. McKeon] and the staff for their hard work on the 
vocational rehabilitation programs that are part of this bill. I also 
want to thank the gentleman for accepting my suggestions as part of his 
en bloc amendment to promote self-employment and small business 
ownership for people with disabilities.
  Since 1998 the Rural Institute on Disabilities at the University of 
Montana has conducted research and development self-employment models 
for promoting self-employment for people with disabilities. I have been 
working with the University of Montana on these amendments, and I am 
pleased that they have been accepted.
  Self-employment is part of the American dream. People are drawn to 
the notion of working for themselves in a way that they are not 
attracted to working for someone else. Americans think of self-
employment as a way to control their own futures and to make work more 
fulfilling.
  Although self-employment is part of the American dream, it is often 
overlooked as part of the vocational rehabilitation system, which 
typically focuses on placing people as employees, and while it is not 
appropriate for all people with disabilities, self-employment is a 
vital option for many.
  For example, from 1988 through 1992 vocational rehabilitation has 
placed 5,000 people with disabilities in self-employment, which 
represents only 2.7 percent of those placements, and while 5,000 is a 
large number, the 1990 census stated that over 12 percent of working 
age people with disabilities are self-employed.
  My amendment legitimize the use of self-employment for vocational 
rehabilitation and provides one more way for people with disabilities 
to become self-sufficient, and I urge the adoption of Mr. McKeon's en 
bloc amendment.
  Mr. KILDEE. Mr. Chairman, I yield 3 minutes to the gentleman from 
Ohio [Mr. Sawyer], a former and much missed member of this committee.
  (Mr. SAWYER asked and was given permission to revise and extend his 
remarks.)
  Mr. SAWYER. Mr. Chairman, I thank my friend, the gentleman from 
Michigan [Mr. Kildee] for the opportunity to rejoin in this discussion 
today. I particularly want to thank him and the gentleman from Missouri 
[Mr. Clay] and the gentleman from Pennsylvania [Mr. Goodling] and the 
gentleman from California [Mr. McKeon] for the quality of work. It is 
an example of the kind of thing that can be accomplished when we work 
together, and I would like to thank and commend all of my colleagues 
from the Committee on Education and the Workforce for their real 
teamwork on this legislation.
  Mr. Chairman, for several years we have known that our job training 
delivery system is sometimes duplicative, often confusing, and far too 
often ineffective. Programs are training people for jobs that sometimes 
no longer exist, and potential workers have to navigate a maze of 
different service delivery systems in order to get training. For our 
industries to succeed, our workers must be highly productive. They need 
the education and training necessary to keep them in tune with 
technological advances and innovations in real time.
  In the last Congress, the committee began with common goals to 
consolidate programs, to increase flexibility, and to improve the 
delivery of services. In the last Congress it was known as the Careers 
Act. I was a member of the conference committee for that legislation. 
It seemed to be moving in the direction that Members on both sides of 
the aisle could support, but it also had some fairly basic flaws that 
were never resolved, and over time changes moved the Careers Act even 
further away from its original concept.
  This legislation, H.R. 1385, is different. In fact, it incorporates 
almost every one of the concerns that were raised by Democrats in the 
last Congress. It also gives States and localities the flexibility to 
provide adults and youth with the literacy services or training 
necessary for the jobs that exist in their communities.
  I support this bill, but I have to admit that I am a little bit 
saddened that it would repeal legislation that I offered which created 
important pieces of literacy and adult education infrastructure. The 
National Literacy Act of 1991, which was supported by both the 
gentleman from Michigan [Mr. Goodling] and myself, was signed into law 
by former President Bush. But laws evolve as the economy evolves, and 
we need to understand that if we are going to be effective in delivery, 
that those structures need to evolve with them and to improve.
  Mr. Chairman, I am pleased that many of the important elements, 
including the National Institute for Literacy, will remain in existence 
under the auspices of the Adult Education Act. I am also pleased that 
this legislation allows States to maintain their commitment to 
professional development for adult education and to the State and 
regional literacy networks.
  The Ohio Literacy Resource Center in my district and others like it 
throughout the country have facilitated an exchange of information on 
literacy programs that is unprecedented. Their work allows church 
literacy programs on one coast to use materials and teaching materials 
that were developed on the other and everywhere in between. This 
maximizes scarce resources in fighting the problems of illiteracy.
  I commend the committee for its work and all of its leaders in 
helping to guide it in achieving consensus on a broad and complicated 
area of policy, and I urge my colleagues to support this bill and to 
help ensure that scarce resources are being used in the most effective 
way to educate and train America's work force.
  Mr. McKEON. Mr. Chairman, I yield 2 minutes to the gentleman from 
Texas [Mr. Smith], who has been helpful in making the bill better.
  (Mr. SMITH of Texas asked and was given permission to revise and 
extend his remarks.)
  Mr. SMITH of Texas. Mr. Chairman, I thank the chairman of the 
Subcommittee on Postsecondary Education, Training and Life-Long 
Learning, the gentleman from California [Mr. McKeon], for yielding.
  I rise today in support of H.R. 1385, the Employment, Training and 
Literacy Enhancement Act of 1997. I first would like to commend the 
distinguished chairman of the Committee on Education and the Workforce, 
the gentleman from Pennsylvania [Mr. Goodling], and the chairman of the 
Subcommittee on Postsecondary Education, Training and Life-Long 
Learning, the gentleman from California [Mr. McKeon], for their 
diligent work in bringing this important legislation to the floor and 
for their willingness to work with Members to address our concerns.
  Special thanks also goes to subcommittee members, the gentlewoman 
from New Jersey [Mrs. Roukema], and the gentleman from Indiana [Mr. 
Roemer], and the gentleman from North Carolina [Mr. Watt], an original 
cosponsor of the legislation I introduced.
  Increasing educational opportunities for millions of Americans is a 
shared goal. But many Americans' opportunities are limited by 
illiteracy. In fact, there are 46 million illiterate adults in our 
country. Only 9 percent of these adults are being served by programs 
provided by the current Adult Education Act.
  This bill rightly addresses the problems of adult illiteracy. It 
allows States more flexibility to tackle the problem of adult 
illiteracy by funding support services such as transportation and child 
care. I thank the committee for including my legislative ideas that 
allow States for the first time ever to use a part of their funding to 
provide support services to participants in adult education classes.
  Mr. KILDEE. Mr. Chairman, I yield 2 minutes to the gentleman from 
Massachusetts [Mr. Tierney].
  (Mr. TIERNEY asked and was given permission to revise and extend his 
remarks.)

[[Page H2804]]

  Mr. TIERNEY. Mr. Chairman, I rise to speak in favor of this 
legislation, the Employment, Training and Literacy Enhancement Act.
  I want to also give my appreciation to the chairmen of the full 
committee and the subcommittee as well as the ranking member. It was, 
in fact, a notable example of people in this Chamber working together 
toward a common goal, which was, in fact, a goal that we all spoke 
about over the last campaign and have carried through for the first 3 
or 4 months of this particular session. We have done this on the IDEA 
legislation, and we have now done it on this particular piece of 
legislation, and I applaud both the Democrats and Republicans on the 
committee.
  I recently have had the opportunity in my district to have a round 
table strictly on the issue of literacy, adult basic education. From 
that round table, I heard from all of the folks within the Sixth 
District of Massachusetts who are intricately involved in adult basic 
education on a daily basis. They were able to speak to many of the 
issues that we, in fact, dealt with in this particular piece of 
legislation; and, by and large, this bill manages to positively address 
almost all of the concerns which they made known to us.
  As surprising as it seems to people when I talk throughout the 
district, even the relatively affluent State of Massachusetts has 20 
percent of its population that are adults that are functionally 
illiterate, and a million people have yet to get a high school 
equivalency in that State.
  There are 15,000 people in Massachusetts awaiting the opportunity to 
have adult basic education literacy and numerary skills worked with 
them. This is something that we have to provide for. It is a disgrace, 
frankly, that our system has not been able to step up to the plate and 
acknowledge and deal with this situation.
  I think with this act and some of the changes that have been made in 
it, we are going to be able to extend these programs and revise them so 
that they are, in fact, more effective. We are providing more resources 
so that those people will have the skill and ability to teach people 
and work with people and bring their levels up to what is needed to be 
able to get a job and to be able to, in fact, read to their children 
and grandchildren so that we will not have to repeat this cycle well on 
into the future.
  I also want to make note of the fact that the job training program 
allows for a good deal of local participation.
  Mr. McKEON. Mr. Chairman, I yield 3 minutes to the former Governor, 
the gentleman from Delaware [Mr. Castle].
  Mr. CASTLE. Mr. Chairman, I thank the gentleman from California [Mr. 
McKeon] for yielding. But more than that, I thank the gentleman for his 
tremendous work on a very difficult piece of legislation. He and the 
gentleman from Pennsylvania [Mr. Goodling], and the gentleman from 
Michigan [Mr. Kildee], and the gentleman from Missouri [Mr. Clay] have 
done an outstanding job.
  I do rise in support of H.R. 1385. I have heard some of the speeches 
here, and I will not try to reiterate what has already been said. But 
this really is a good-faith bipartisan effort, in my judgment, to 
simplify and improve Federal employment training by consolidating and 
eliminating over 60 existing programs. It was needed, sorely needed. I 
think it took a tremendous effort to do it, and I congratulate 
everybody.
  I do want to mention a couple areas that are of particular interest 
and concern to me in this bill. First of all, I worked to ensure that 
eligible activities under section 402 include single-purpose grants for 
training and technical assistance for housing and related facilities 
for migrant, seasonal farm-workers.
  In Delaware this fund uniquely enables the National Council on 
Agricultural Life and Labor Research and other locally based nonprofits 
to provide technical assistance that improves housing conditions and 
develops new housing in their agricultural community.

                              {time}  1015

  I also supported changing the bill in committee to ensure that groups 
like Goodwill and Kent Sussex Industries, two community rehabilitation 
providers in Delaware, are included in the redesign process and are 
included on the regional work force development boards.
  Of particular concern to me is language that the committee adopted 
that would effectively preempt State law to give State legislatures 
unprecedented and sweeping authority over how Federal work force block 
grant funds are spent. The provision specifically requires that these 
Federal funds be subject to the State laws and procedures that apply to 
State funds. Delaware does not make specific authorizations for Federal 
funds now, and the JTPA and Private Industry Council continue to work 
very well, and have worked well in the past, including under my past 
administrations.
  Now, under this legislation, the law would be changed to require that 
all moneys be passed through the legislature, and I am very concerned 
that funding decisions will become mired in politics. There will be no 
assurance that objective criteria will be used in selecting training 
providers, and the efficiency and effectiveness of the funding system 
could be seriously compromised.
  The current system is more productive and provide Governors much-
needed flexibility. There is no benefit to the Federal Government 
mandating that all States administer JTPA in exactly the same way, when 
we in Delaware have proven that a small State can make a big difference 
when given the power to choose our own way.
  I understand this issue will try to be worked out to the satisfaction 
of all sides involved, and it is something I will be working on as well 
as we move to conference. Otherwise, this bill is a giant step forward 
to help train our workers in a comprehensive way so that we can 
continue to remain competitive in an increasingly globally competitive 
environment.
  I congratulate the sponsors and ask everyone to support this 
legislation.
  Mr. KILDEE. Mr. Chairman, I yield 3 minutes to the gentleman from 
Maryland [Mr. Hoyer].
  Mr. HOYER. Mr. Chairman, I thank the gentleman from Michigan [Mr. 
Kildee], who does such an excellent job and I thank the subcommittee 
chair for his leadership as well.
  Mr. Chairman, I rise in support of H.R. 1385. This bill is a good 
step in coordinating our Federal, State, and local employment and 
training programs. It provides incentive grants to States that 
demonstrate continuing progress in coordination and integration of 
these programs. This bipartisan bill builds an integrated work force 
development system. However, I do not think the bill goes far enough, 
and I would presume that some of its enthusiastic supporters perhaps 
feel the same. It does not go far enough in my opinion in terms of 
requiring the Federal Government to coordinate other service programs 
with these employment and training programs.
  Mr. Chairman, I rise because I have introduced a bill, and I want to 
talk to the gentleman from Pennsylvania [Mr. Goodling], the gentleman 
from California [Mr. McKeon], the gentleman from Michigan [Mr. Kildee], 
and others, the gentleman from Missouri [Mr. Clay], about it, called 
the Family Services Improvement Act, H.R. 1480. It takes this bill I 
think a necessary step further to encourage agencywide coordination at 
the Federal level.
  I would like to voice my strong support for the full service centers 
that this bill seeks to implement.
  The Department of Labor currently funds 287 one-stop career centers 
in 24 States. In my district there are five one-stop service centers. 
These centers allow Americans to have easy access to reliable, up-to-
date information on job searches and provides workers with ready access 
to training-related and supported services. It requires the 
implementation of full service, one-stop employment and training 
delivery centers, an excellent step.
  I am pleased to see the Committee on Education and the Workforce come 
to a compromise on this bill. I support it. Its implementation of one-
stop employment and training delivery centers will be a giant step 
forward, as the gentleman from Delaware [Mr. Castle] said.
  Coordination of these job training programs which this bill requires 
will lead to a more effective and efficient use of our Federal dollars.

[[Page H2805]]

  But let me suggest to the leaders, particularly the gentleman from 
Pennsylvania [Mr. Goodling] and the gentleman from Missouri [Mr. Clay], 
of this critically important committee, that we can do more in terms of 
coordinating services. The gentleman from Indiana [Mr. Jackson] talks 
about a mom going to a centrally located school, with her small child, 
and they go together. The child goes for education, whether it is pre-
K, kindergarten, first, second, or whatever grade, and mom goes to get 
the job training services and information, GED, whatever she needs; and 
together, the Federal programs are coordinated at a single site 
accessible by the user for the purposes of giving that family full 
service support.
  So my colleagues can see, it is no criticism to say this bill does 
not go as far as I would like to see it. It clearly takes a critically 
important step forward in the coordination of services, but I think we 
can do more, and I look forward to working with the leaders that I have 
mentioned, the gentleman from Pennsylvania [Mr. Goodling], the 
gentleman from Missouri [Mr. Clay], the gentleman from Michigan [Mr. 
Kildee], the gentleman from California [Mr. McKeon], and others on the 
committee, because I think we have a context in which we can make a 
dramatic step forward in the coordination of services at the Federal, 
State, and local levels.
  Mr. Chairman, this is an important subject and I appreciate the 
ability to talk on it, and to support this very significant step.
  Mr. KILDEE. Mr. Chairman, I yield 3 minutes to the gentleman from 
Indiana [Mr. Roemer], along with his two sons, Matthew and Patrick.
  Mr. ROEMER. Mr. Chairman, I thank the distinguished gentleman from 
Michigan, and I am not sure that I will yield time to my two sons.
  I want to start off by saluting and commending and applauding the 
bipartisanship shown by the chairman and ranking members on both the 
Democratic and Republican side, the gentleman from Pennsylvania [Mr. 
Goodling] and the gentleman from California [Mr. McKeon], the gentleman 
from Michigan [Mr. Kildee], and the gentleman from Missouri [Mr. Clay]. 
This is the kind of cooperation and these are the kinds of bills that 
the people of Indiana, and I think in the Midwest and hopefully 
throughout the country, want us to work on.
  I want to further say that this is the third bipartisan bill that our 
committee has reported out in a productive and civil fashion to do the 
people's work. We have worked on the IDEA legislation for the disabled 
community, we have worked on a higher education commission, and we are 
now working together on this important legislation for worker training 
and literacy. I think that this is some of the most important work that 
we have done in this Congress.
  Mr. Chairman, I want to talk in terms of bipartisanship about some 
legislation that we have put in this bill in a bipartisan way. Several 
weeks ago the gentleman from Texas [Mr. Smith], a Republican, and the 
gentlewoman from New Jersey [Mrs. Roukema], and the gentleman from 
North Carolina [Mr. Watt], a Democrat, and myself joined together to 
put a support services bill together that will enhance the way that 
these programs deliver services in a more effective way with a heart, 
but they deliver the service and get the literacy programs to the 
people that need it. Forty-six million people in America lack basic 
literacy skills. Only 9 percent of those 46 million Americans are 
currently getting job training skills and literacy program exposure.
  One of the things that we attached to this bill in a bipartisan way 
was to allow these programs to have support services and spend money on 
child care and transportation to get to the adult services programs and 
literacy programs at night. When we put these components in, we have 
found that participation in these programs oftentimes goes from 10 
members to 40 members in these nighttime programs, where the people are 
sometimes single and have children. They need child care, they need 
transportation at night to get the literacy skills, to enhance their 
skills at work in the daytime.
  The gentleman from California [Mr. McKeon] and the gentleman from 
Pennsylvania [Mr. Goodling] and the gentleman from Missouri [Mr. Clay] 
and the gentleman from Michigan [Mr. Kildee] have worked on even making 
our legislation better, incorporating into this bill the kinds of 
caring components with transportation and child care that we have found 
that will help transform our welfare system. We found in welfare in the 
debate last year that welfare only works when we allow people to get 
care for their children. We do not want to have to have them pick 
between work and leaving children home alone.
  This bill incorporates those things into making adult literacy 
programs more available for all people, and that saves us money in the 
long term, and productivity and enhancing our programs, delivery of 
efficient services, and helping people learn to read.
  Again, I want to end on saying I am proud to be a member of the 
Committee on Education and the Workforce. It shows the American people 
that we work together in a bipartisan way to deliver good bills for the 
American people, and I hope this bill will become law.
  Mr. McKEON. Mr. Chairman, I yield 3 minutes to the gentleman from 
Texas [Mr. Paul], another new member of the committee.
  Mr. PAUL. Mr. Chairman, I thank the gentleman for yielding me this 
time.
  After 30 years of Federal Government involvement and two major 
legislative overhauls, there are now over 160 Federal programs 
dedicated to job training. The Federal Government has spent 
approximately $4.5 billion just on the Job Training and Partnership Act 
of 1997. However, the U.S. Congress cannot measure whether or not they 
are getting a good return on their investment since both Federal 
agencies do not even know if their programs are helping people find 
jobs.
  The very idea that a government board can somehow determine what 
occupations will be in demand at any point in the future is an example 
of what Nobel Laureate Friedrich Hayek calls The Fatal Conceit. No 
central board, even one dominated by local officials and businessmen, 
can predict which jobs will be in demand in 5, 10, or 15 years. It is 
doubtful that a local work force board in Silicon Valley in 1978 would 
have tried to link job training services to personal computer markets. 
In fact, it is highly unlikely that Steve Jobs will be appointed to the 
work force development board. The very fact that the boards are 
compiled of already established leaders for business practically 
ensures that the entrepreneurs creating the jobs of the future will not 
be represented on the board.
  In this high-technology information age where financial and, more 
importantly, intellectual capital can travel around the world in a 
matter of seconds, the jobs in demand in any area can change faster 
than any geographical local work force board could conceivably update 
the skills with which to link job training.
  The private actions of individual citizens working together in a free 
market can best build a job training system that meets the needs of its 
citizens. Private individuals, local communities, and State governments 
are also more capable than the Federal Government of providing adequate 
help to those unable to provide training for themselves.
  If the Federal Government returns to constitutional size and reduces 
the tax and regulatory burden on the American citizen, Federal job 
training programs of any sort furthers the destructive idea that the 
proper role of the Federal Government is to provide for all the needs 
of the citizens. The belief that Congress has a moral duty to 
administer to the health and welfare of the populace, both of America 
and the world, is directly responsible for the growth of the welfare 
state, which threatens to destroy America's economic prosperity and 
liberty itself.

                              {time}  1030

  I am strongly opposed to this legislation, and believe freedom and 
free choices and the marketplace and the Constitution is a much better 
approach.


                            i. introduction

  Congress is once again attempting to repair the broken system of 
Federal job training. The major Federal role in job training dates back 
to 1962, with President Kennedy's Manpower Development and Training Act 
[MDA] and continuing through the Economic Opportunity Act

[[Page H2806]]

of 1964, passed as part of President Johnson's Great Society Consistent 
with the Great Society philosophy that the Federal Government had the 
solution to all problems, these bills centralized job training 
authority in Washington.
  Soon, however, concerns arose that Federal job training programs were 
rife with waste and abuse. Congress, therefore, began trying to repair 
some of the inefficiencies in the job-training program. First, in 1973, 
Congress, with the support of the Nixon administration, passed the 
Comprehensive Employment and Training Act [CETA]. CETA was designed to 
decentralize Federal job training programs. Congress next addressed job 
training in 1982, with the passage of the Job Training and Partnership 
Act [JTPA], which promised to turn Federal job-training into a public-
private partnership that would operate more efficiently than the three 
major job-training bills that had previously passed the Congress and 
failed to accomplish their stated goals.
  After 30 years of Federal involvement and two major legislative 
overhauls, there are now over 160 Federal programs dedicated to job 
training. The Federal Government spent approximately $4.5 billion to 
just JPTA in 1997. However, the U.S. Congress cannot measure whether or 
not they are getting a good return on their investment since most 
Federal agencies do not even know if their programs are helping people 
find jobs.
  Congress is once again attempting to repair the Federal job training 
systems. However, despite the abundant evidence of the failure of the 
centralized welfare state model of job-training programs, this Congress 
is planning to continue dictating to all 50 states the composition, 
content, function, and even the goals and benchmarks of job training 
programs. The Employment Training and Literacy Act of 1997, [H.R. 
1385], tampers with the constitutional principle of federalism. H.R. 
1385 redefines the very notion of federalism to mean that States, 
localities, and individual citizens are given limited flexibility and 
control over how they fulfill the Federal Government's mandates.


ii. h.r. 1385 interferes with state's autonomy and forces taxpayers to 
subsidize benefits for select businesses and employees in violation of 
                         the u.s. constitution

  Unlike the mandate federalism embodied in H.R. 1385, the federalism 
embodied in the U.S. Constitution allows for no Federal role in job 
training, or education generally. In fact, the tenth amendment, which 
reserves the authority for carrying out functions not explicitly 
granted to the Federal Government, to the States and the people, 
forbids Federal education programs. Yet, as demonstrated below, H.R. 
1385 continues the unconstitutional centralization of education power 
for the benefit of certain members of society at the expense of the 
mass of American taxpayers.
  Under H.R. 1385 States must provide a 3-year plan for adult job 
training and literacy programs in order to receive Federal job-training 
funds. These plans must satisfy federally specified content and must be 
approved by the Secretaries of both the Department of Education and the 
Department of Labor.
  Additionally, States are required to establish local work force 
development boards whose functions and composition are dictated by the 
Federal law. Furthermore, the boards must meet benchmarks identified by 
the Governor in negotiation with the schools, the local boards do not 
even have the authority to determine how their performance should be 
measured. Rather progress under this bill is measured by predetermined 
Federal core indicators.
  Under H.R. 1385, the local work force development boards would be 
dominated by representatives of the business community. Certainly the 
input of the business community is important for job training. However, 
a Federal mandate that representatives of business dominate the job-
training boards may provide a means for business to socialize or 
externalize their training costs. Those businesses which will achieve a 
direct benefit from a more highly skilled work force should be the ones 
to finance such programs. Individuals who will benefit from improving 
their skills could also choose to ultimately pay at least some of the 
costs of their training. In no instance should the individual taxpayer 
be forced to subsidize the job training of another person.
  Not satisfied with wealth transfers to prepare those without 
employment for business, this bill provides training for skills 
upgrading for incumbent workers--those already employed. Despite a 
budget billions of dollars out of balance, this bill creates a new 
entitlement for already-employed workers and their employers to receive 
more training courtesy of the American taxpayer.
  Businesses are not the only institution showered with largess in this 
bill. Under the provisions of this bill, the Secretary of Labor is 
empowered to provide taxpayer dollars to labor unions to carry out 
research and demonstration projects as well as grants to public 
interest groups. Credible accusations have been made that these groups 
have often used Federal funds to advance their political agenda. At the 
very least, Congress should conduct a thorough investigation and take 
steps to prevent Federal funds from being used to pay for political 
activity before handing out more grant money.


       iii. h.r. 1385 infringes on family and individual autonomy

  In addition to continuing the practice of running job training 
programs from Washington, DC, this bill expands the State's reach into 
Americas' families by authorizing Federal funding for family literacy 
services. These services are to include training for parents on how to 
teach their children and interactive literacy activities between 
parents and their children.
  This history of Federal involvement in family literacy raises 
questions regarding the effectiveness of government programs to teach 
anything regarding child raising. From 1963 to 1993, Federal spending 
on education increased from approximately $900,000 to over $10 billion, 
while scores on the Scholastic Aptitude Test [SAT's] dropped by an 
average of almost 60 points. Given the poor track record, it is 
doubtful whether increasing Federal involvement in family literacy is 
likely to do anything but ensure lower rates of family literacy.
  Furthermore, Federal involvement in child rearing violates the very 
principles upon which this country was founded. In a free society, such 
as that bequeathed to America by the drafters of the Constitution, the 
family, not the Government, is responsible for the raising of children. 
State control of child raising is, in fact, one of the hallmarks of 
totalitarianism. Those of us concerned with expanding and preserving 
freedom must oppose all measures, including the legislation currently 
under consideration, which erode the autonomy of the family under the 
theory that government social workers are better able to address the 
needs of children than parents.
  Along similar lines, the language for disadvantaged youth programs 
mandates the integration of academic, occupation, and work-based 
learning opportunities. This is also quite objectionable. This language 
seems to suggest those youth diagnosed as disadvantaged by the social 
workers and psychologists will be denied a traditional education, 
instead disadvantaged youth will be herded into State-run job training 
programs. Such a federally mandated plan is in no way consistent with 
the core American value of individualism.


 iv. h.r. 1385 establishes a system incapable of achieving its stated 
                                purpose

  This bill reaches the height of hubris in its mandate that training 
services be linked to occupations for which there is a demand in the 
local work force development area. This provision is objectionable for 
two reasons.
  First, because business-dominated work force development boards will 
determine which occupations are in demand, it is very likely that the 
business represented on the board will be the ones determined to be 
those for which there is a demand in the local work force.
  Second, and more important, the very idea that a government board can 
somehow determine what occupations will be in demand at any point in 
the future is an example of what Nobel Laureate F.A. Hayek called the 
fatal conceit. No central board, even one dominated by local officials 
and businessmen, can predict which jobs will be in demand in 5, 10, or 
even 2 years. It is doubtful that a local work force board in Silicon 
Valley in 1978 would have to tried to link job training services to the 
personal computer market. In fact, it's highly unlikely that Steve 
Jobs--founder of Apple computers--would be appointed to the work force 
development board in Silicon Valley. The very fact that the boards are 
comprised of already established leaders for business practically 
assures that the entrepreneurs creating the jobs of the future will not 
be represented on this board. In this high-technology information age, 
where financial and, more important, intellectual capital, can travel 
around the world in a matter of seconds, the jobs in demand in any area 
can change faster than any geographical local work force board could 
conceivably update the skills with which the link job-training.


                             v. conclusion

  The argument is often made that State-financed job training is 
necessitated by the failure of the educational system to properly 
prepare students for the job market. Each of us can understand the 
frustration of employers unable to find employees capable of adapting 
to new technologies.
  As a physician, I have employed many people in critical positions. I 
certainly understand the importance of having a readily available pool 
of skilled labor. I would question, however, whether the pool was 
better prior to the Federal Government's intrusion into education.
  The private actions of individual citizens, working together in a 
free-market, can best build a job-training system that meets the needs 
of its citizens. Private individuals, local communities, and State 
governments are also

[[Page H2807]]

more capable than the Federal Government of providing adequate help to 
those unable to provide for training out of their own resources, if the 
Federal Government returns to constitutional size and reduces the tax 
burden on American citizens.
  Federal job training programs, of any sort, furthers the destructive 
idea that the proper role of the Federal Government is to provide for 
all the needs of its citizens. The belief that Congress has a moral 
duty to minister to the health and welfare of the populace, both of 
America and the world, is directly responsible for the growth of the 
welfare-warfare state which threatens to destroy America's economic 
prosperity, and liberty itself. Job training should be provided, like 
all other goods and services, by the free-market and voluntary 
transactions.
  Mr. McKEON. Mr. Chairman, I yield 30 seconds to the gentleman from 
Michigan [Mr. Kildee], ranking member of the subcommittee.
  Mr. KILDEE. Mr. Chairman, bills like this could not be written 
without the staff. I want to thank certain members of the staff who 
played a major role directly in this bill. On the Democratic side, 
Brian Kennedy, Marshall Grigsby, David Evans, and Margo Huber.
  On the Republican side, Mary Gardner-Clagett, D'Arcy Philps, Lynn 
Selmser, Vic Klatt, and Lauren Coberly. We thank you very much for your 
very, very hard work, day and night, on this bill.
  Mr. McKEON. Mr. Chairman, I want to thank the gentleman from Michigan 
[Mr. Kildee] for his graciousness, and for thanking the members of the 
staff, and would like to add my thanks, also.
  Mary Clagett has worked, what, 6 or 8 years on this. All of those who 
have worked so hard, we want to thank them. Many people see us standing 
up here, and we are the ones that finally get the final praise for what 
has been done. They are the ones that have done all of the work to pull 
us together to help make it possible, and we want to thank them greatly 
for this effort.
  Mr. RIGGS. Mr. Chairman, I rise today in support of H.R. 1385, the 
Employment, Training, and Literacy Enhancement Act of 1997. This is a 
bill which will prepare adults for the 21st century work force. It 
consolidates and improves existing programs under the Job Training 
Partnership Act [JTPA], the Adult Education Act, the Wagner-Peyser Act, 
and the Rehabilitation Act of 1973. Overall, H.R. 1385 consolidates 
over 60 existing employment, training, and literacy programs into three 
block grants to States and localities. I would like to congratulate 
Chairmen Goodling and McKeon for their leadership on this issue, and 
for crafting a measure that has bipartisan support.
  This bill will make a positive impact on adults as they prepare for 
the jobs of the future. It will help workers get the retraining 
necessary to compete in the current job market. We find ourselves in a 
unique economic situation in America today--we have low unemployment 
rates, but also have high rates of underemployment. We in Congress must 
take the lead and ensure adequate training is available to all 
Americans, in their communities.
  This bill provides service delivery methods that maximize consumer 
choice in selecting training providers. I am particularly pleased that 
training services will be provided through the use of skill grants 
vouchers. These vouchers will be distributed through the full-service 
employment and training delivery system. This will enable adults to 
receive the training they need in their own community. When, for 
example, individuals want computer training, they can shop around for 
institutions that best meet their needs.
  Some naysayers say this will encourage fly-by-night companies to 
deceive the hard-working public. But the bill includes protections in 
the form of requirements that providers must meet in order to receive 
funds. A provider must either:
  First, be an accredited title IV eligible postsecondary educational 
program, or
  Second, be recognized by a local work force development board, which 
will determine if the provider meets acceptable, locally established 
performance standards established at the State level. The provider must 
have a proven completion record for participants in their program, and 
demonstrate a success rate for job placement after program completion.
  There are other provisions in this bill I want to highlight.
  The disadvantaged youth employment and training opportunities grant 
will move the focus of current disadvantaged youth programs from short-
term employment fixes to longer term academic and occupational 
training.
  The adult employment and training grant takes a work first approach 
to training. Priority will be given in resource allocations to 
intensive training for welfare recipients and other individuals with 
multiple barriers to employment.
  Finally, this bill will extend the Rehabilitation Act of 1973 which 
provides rehabilitation and employment training to adults with 
disabilities, for 3 years.
  In summary, H.R. 1385 promotes individual responsibility through 
vouchers, promotes competition among training providers, and drives 
resources and authority out of Washington to States and localities. By 
decreasing the size and scope of the Federal Government's control, this 
is truly a work-first bill for adults. It will also help get 
economically disadvantaged youth back to school.
  I urge support for H.R. 1385. By passing this bill, we will give many 
Americans new tools to prepare for the 21st century.
  Mr. SNOWBARGER. Mr. Chairman, I rise to express my support for H.R. 
1385 but I urge my colleagues to address several troubling provisions 
during conference.
  The current job training programs are top heavy, duplicative, and 
micromanaged from Washington. H.R. 1385 consolidates over 60 programs, 
currently administered by 15 separate agencies, into 3 targeted block 
grants. This will reduce administrative costs significantly, which the 
bill would redirect to the grants. I would have preferred that the 
taxpayers benefit from at least some of the savings.
  This bill gives States the authority to tailor job training programs 
to fit their individual needs. Furthermore, it ensures that business 
and education leaders, who have expertise in work force development, 
will play a crucial role in development of State implementation plans 
instead of Washington bureaucrats.
  H.R. 1385 received bipartisan support and is widely supported by 
industry and education groups. In a letter dated May 16, 1997, the U.S. 
Chamber of Commerce stated, ``H.R. 1385 directly addresses this 
critical need--work force development--and better targets job training 
efforts at the State and local level.'' Additionally, the American 
Association of Community Colleges and Association of Community College 
Trustees, one of the primary providers of workforce training, wrote, 
``We support the flexibility the bill gives states and localities to 
design their workforce delivery system to best suit the needs of their 
citizens.''
  While I believe that H.R. 1385 is a step in the right direction, I do 
have these serious concerns about it:
  The Job Corps Program continues to be championed by those who either 
will not or can not acknowledge the program's serious flaws. Even the 
President's own Labor Department study of the program says that it is 
difficult to defend. Why continue to force Governors to spend limited 
resources on this program if they can develop better ones? I would have 
preferred that the legislation passed today would have contained 
language to allow Governors to experiment with new, perhaps private, 
job training programs better suited to the particular needs of their 
local work force.
  Why create new federally funded and managed adult literacy programs. 
On one hand Congress claims to want to end a Federal jobs bureaucracy. 
On the other hand, they create a new only slightly smaller version, 
with new programs devoted to adult literacy. This program amounts to 
nearly two and one half billion dollars of new spending on top of 
the 33 billion in job training dollars already allocated. Curiously, 
this bill grants authority over such literacy programs directly to the 
State Education Department, by passing the Governor's office all 
together. They will administer the federally designed and funded grant 
program.

  I do think some of the other complaints are mistaken. The bill does 
not institute government control of where ordinary Americans will go to 
work, or restrict individual students' career choices. We must remember 
that these job training programs are set up for those people who need 
extra help to find an entry-level job, or change careers because their 
former job has disappeared. They do not involuntarily assign high 
school graduates to a particular job or employer, any more than the 
high school guidance counselor does.
  The work force development boards advise the State training agencies 
on what kinds of jobs are likely to need more workers in the future. 
Obviously, they won't be perfect. But they would do a better job of 
predicting the needs of the local labor market than the wild guesses of 
bureaucrats. Finally, the bill was amended do explicitly ensure that 
the work force boards do not have the authority to change school 
curriculums or affect home-schoolers.
  On balance, I must say that this bill is better than our current job 
training mess. For this reason, I am voting for the bill.
  Ms. JACKSON-LEE of Texas. Mr. Chairman, I rise to express my support 
for those portions of H.R. 1385, the Education, Training, and Literacy 
Enhancement Act which promote change which is beneficial and supportive 
of the goals of full literacy and accessible responsive job training 
programs throughout our country.

[[Page H2808]]

  However, I do have concerns regarding the implementation of this 
legislation as it pertains to the control that will be given to States. 
I know that most would agree that local control of these programs is a 
desired goal, but I would add that local control must extend to the 
locality or jurisdiction where these important programs are 
implemented.
  In the city of Houston, a successful Job Training Program called 
Houston Works has been successfully serving the needs of youth and 
adults for a number of years.
  The total population of Houston, TX, is over 1.8 million with 26.7 
percent African-Americans, 4 percent American Indian, 3.9 percent 
Asian, 26.8 percent Hispanic, and 42.2 percent white. Those residents 
of Houston who live in poverty number over 370,000 families.
  This year Houston Works, one of several Job Training Partnership Act 
providers for the city of Houston, will receive $3 million in funding 
directly from the Department of Labor and has received letters of 
obligation from the State of Texas for an additional $24 million for a 
total of $27 million to carry out their job training goals for this 
fiscal year.
  My concern with this legislation is with its implementation and 
administration. As job training moves to greater local control we must 
insure that control is, indeed, local.
  Fortunately, in the case of Houston Works there is a long and 
successful history of working with the State to meet the needs of the 
Houston labor force. I would hope that this relationship will continue, 
but should it not, the grievance procedures listed under section 144 of 
this legislation must be more than adequate in its ability to address 
problems as they arise between Local Workforce Development Board and 
the State government. I would hope that as much attention is placed on 
this portion as the implementation of States receiving more control of 
these Federal funds.
  Another concern of mine, and of the residents of the district that I 
serve, is regarding the subject and content of job training programs as 
we move toward the close of this century.
  Computer literacy training must be a grater component of this 
legislation. Not just implied but expressed in the language in as many 
varied and focused ways as possible.
  The need for strong computer job training and literacy based programs 
will be tremendous, as many communities in the country remain unable to 
access advanced networks or information. According to a 1995 study, 
only 20 to 25 percent of the Nation's hospitals and public libraries, 
and only 9 percent of our classrooms have access to the Internet or 
advanced information services.
  Computer literacy and job skills are needed by millions of Americans 
who would not otherwise have access to them. This has a direct tie-in 
to economic development that will payoff by the year 2000 when 60 
percent of the new jobs will require skills currently held by only 20 
percent of the population.
  On February 6 of this year, I introduced on the House floor a 
resolution to commend the work done by a national project called 
NetDay, which is responsible for the effort here in the city of Houston 
that wired 161 elementary, middle, and high school libraries for 
Internet access.
  Because of the Houston Independent School District's NetDay96 and 
NetDay 2000 efforts, 138,980 students now have Internet access in the 
libraries of their elementary, junior, and high schools. This was 
accomplished with the assistance of 1,203 volunteers, who contributed 
their time to neighborhood schools. The generosity of sponsors, 
volunteers, students, teachers, and Houston Independent School District 
personnel saved Houstonians $58,080.
  With 27.2 percent of the Houston Independent School District's 
student population considered at-risk, it was an important decision to 
hold NetDay96 connection projects on each Saturday in the month of 
October of last year. The Houston Independent School District methods 
ensured that every targeted school within minority and majority 
communities received an equal opportunity to have their neighborhood 
school library receive the necessary wiring for Internet access.
  Distance learning could be a major component of all education 
instruction in our Nation by the close of this century if we look at 
the resources which are available to us today.
  There are software packages which are designed to identify how an 
individual student learns reading, mathematics, science, geography. 
These software packages adopt themselves to that child's ability and 
pace of learning then instructs the child in a particular learning area 
on that information.
  This technology should be available in every school in our Nation.
  If we want to see the United States continue as a global economic and 
technological leader, we must today prepare the next generation to 
accomplish these objectives.
  My other concern is that job training does not equal a job. I would 
hope that we continue to consider the impact of other laws which will 
impact on those citizens who depend on public assistance of some type. 
There has never been in our Nation's history 100 percent job placement. 
There will always be an imbalance in the number of jobs available and 
the number of people seeking positions.
  According to the Statistical Abstract of the United States for 1996, 
there were 605,000 unemployed residents in the State of Texas.
  In the 18th Congressional District in March of this year there were 
3,936 people receiving unemployment insurance benefits. During that 
same month the Texas Workforce Commission recorded 13,167 applicants 
for jobs and only 1,031 job openings with a total of 304 job 
placements.
  In the city of Houston 986,939 people are listed as members of the 
labor force. The employment totals are 921,636 with an unemployment 
rate of 65,303. The highest concentration of unemployment are African-
American at 29,974, followed by Hispanic unemployment at 17,958, and 
white unemployment at 15,216.
  Statewide the Texas Workforce Commission identified 127,295 people 
receiving unemployment insurance benefits in the month of March. During 
this same month 442,251 job applicants were received and 38,112 job 
openings were registered, with only 17,037 placements took place.
  If we consider these facts then we may seek ways to create job 
opportunities which seek to provide creative and varied employment 
options which might encompass job sharing, seasonal, training for 
multiple job placement and others that would broaden the chance of 
placement after training has ended.
  I would hope that my colleagues who will participate in the 
conference on this legislation will consider these important facts.
  Mr. CUNNINGHAM. Mr. Chairman, I rise today in support of H.R. 1385, 
the Employment, Training and Literacy Enhancement Act.
  Most Americans are not college graduates. Most Americans will face 
job or career changes during their lifetime. Many of our newest 
Americans want the opportunity to learn to read and write in English, 
the language of American opportunity. Americans on welfare are now 
seeking the skills they need to get work. All Americans want an 
opportunity to succeed and enjoy the American Dream.
  Furthermore, American employers want to hire people with the skills 
they need. These skills change over time. Today's automobiles, to cite 
one example, have more onboard computing power than the Apollo 
spacecraft did, and the skills needed to repair them have grown to 
include computer sciences and electrical engineering.
  The current system of job training and basic adult education, created 
with good intentions, has simply failed to help citizens get training 
they need to get jobs. Workers have to navigate a hornet's nest of 
redtape. And Federal micro management has created training for jobs 
that do not exist. So this legislation replaces a failed Washington-run 
system, with local control, local authority, and the local motivation 
to do the job right.
  The Employment, Training and Literacy Enhancement Act replaces 
Federal micro management with local control and accountability. It 
replaces some 60 Federal job training programs with three flexible 
block grants that States and communities can use to provide education 
and job training that is responsive to local needs. In San Diego, our 
community colleges, regional occupational programs, private industry 
councils and others will have the opportunity to work together to meet 
local citizens' and employers' needs, without having to distort their 
services to meet the needless and conflicting paperwork guidelines of 
dozens of Federal programs. Most importantly, it gives individuals who 
need job training the flexibility, information and resources they need, 
so they can obtain the education and training they need, so they will 
have a fighting chance to achieve the American Dream.
  In the 104th Congress, I was privileged to serve as chairman of the 
House Subcommittee on Early Childhood, Youth and Families. Along with 
Chairman Goodling and KcKeon, and Ranking Member Kildee, we worked very 
hard to consolidate and improved job training, adult education and 
literacy programs. Our measure was not enacted in the 104th Congress, 
owing to the late-session election year crush. And now I serve on the 
Appropriations Committee. But last year's and this year's bills both 
included some major improvements and focus on the area of literacy. And 
I would like to focus special attention on that area.
  This measure consolidates several adult education and literacy 
programs into a single block grant to the States. This very basic 
education is made available for one reason: If a person cannot read and 
write, he or she cannot benefit from more advanced job skill training.
  In 1995, my subcommittee held hearings in San Marcos, CA, on this 
subject. One of the witnesses, John Corcoran, was a teacher and a 
businessman, and author of the alarming book ``The Teacher that 
Couldn't Read.'' Throughout his own education, and through a teaching 
and real estate sales career, he had

[[Page H2809]]

developed a thousand coping mechanisms to get around his illiteracy. 
But when the real estate market failed, his inability to read kept him 
from being able to support his family. He got help. He learned to read. 
And now he's doing very well.
  The fact is that there are more John Corcorans in America than we are 
willing to admit, and that most illiterate adults do not do as well as 
John did. The National Adult Literacy Survey showed that of Americans 
at the lowest of five literacy levels, 17 percent receive food stamps, 
43 percent live in poverty, and a stunning 70 percent are unemployed 
and underemployed. Therefore, victory in our national battle against 
poverty and welfare dependency requires attention and devotion to 
improving literacy among adults.
  This legislation encourages local community efforts to improve 
literacy, and provides resources for that type of basic adult 
education, such as English language courses. One of the most successful 
literacy initiatives is called ``family literacy.'' This program is 
based on the premise that adults will learn to read if they learn 
together with their children. In San Diego, the Lynch Foundation 
leverages Even Start family literacy funds into dozens and dozens of 
groups and courses for literacy training, in libraries and other 
settings, to offer people a chance to succeed. Bill Lynch and his team 
do a terrific job, and H.R. 1385 helps them do their job better.
  I understand that this measure extends vocational rehabilitation 
programs until fiscal year 2000, leaving the reform of Federal 
vocational rehabilitation services to the 106th Congress. I believe 
this is unfortunate, because the people with disabilities involved in 
this program deserve much better than they are getting.
  Despite congressional authorization of vocational rehabilitation 
several years ago, the U.S. Rehabilitation Services Administration 
failed to promulgate regulations on the law until last month. Thus, 
States have lacked sufficient guidance on how to improve vocational 
rehabilitation, and to comply with the law, for an unacceptable period 
of time, and persons with disabilities have suffered. Furthermore, a 
Region IX RSA comprehensive study of vocational rehabilitation in the 
State of California, due in December 1996 in hopes of informing further 
congressional action to improve the program, still has not been 
released in May 1997. I have not been satisfied with the RSA's 
justification for the delay, and will continue to follow this issue 
closely and vigorously. Persons with disabilities deserve a fighting 
chance at the American dream. Redtape, bureaucratic buck-passing, 
management failures, poor service to citizens, lack of accountability, 
and delays are simply inexcusable to me, particularly when one 
considers the billions--yes, billions of Federal dollars appropriated 
for vocational rehabilitation every year. Persons with disabilities 
deserve better.
  Mr. Chairman, many citizens and families deserve recognition for 
their excellent work on this bill. In particular, Dr. George Boggs of 
Palomar Community College in my district, Dan Pegg and his staff at the 
San Diego Economic Development Commission, Gil Partida and the men and 
women of the San Diego Chamber of Commerce, and Scott Himelstein of the 
Lynch Foundation have all provided me excellent information on the 
importance of replacing Federal redtape with local control in this 
field. Several members of this body have served this cause with 
distinction, namely Chairman Goodling, McKeon, and Riggs, Ranking 
Member Dale Kildee, Governor Castle, Mr. Graham of South Carolina, and 
many others. They have yielded a bill that means less government and 
more opportunity for Americans to succeed.
  I urge support for the bill.
  Mr. TIERNEY. Mr. Chairman, I am pleased to stand here before you 
today to voice my support for this legislation, the Employment, 
Training & Literacy Enhancement Act of 1997. The Committee on Education 
and the Workforce, on which I serve, has made considerable efforts to 
defuse partisan tensions and pass important legislation that will help 
our children and working families. It has done so on two occasions--
most recently having passed the IDEA Bill for disability education and 
now by passing this legislation that is before us today for 
consideration.
  I applaud all of my colleagues, Republican and Democrat, for the 
spirit of cooperation that has made this possible. This bill 
streamlines and integrates job training and employment programs, while 
increasing access to adult education and literacy services. It also 
strengthens the Vocational Rehabilitation Act.
  I speak first and foremost of the effect this bill will have on adult 
basic education--a most vital and sorely neglected field in education 
today. I am pleased that adult education remains part of the Elementary 
and Secondary Act. I recently held a ``round table'' discussion in my 
district, the Sixth District of Massachusetts, with educators, 
businesses, State government officials, and community groups to talk 
about the problems surrounding adult basic education and training 
services within those programs. By and large, this bill positively 
address as most of the issues raised by that group.
  Even in my home State of Massachusetts, which is relatively affluent 
when compared to other areas, 20 percent of the adults are functionally 
illiterate and a million people have not yet completed high school. 
Under these circumstances, it is simply unacceptable that 15,000 people 
wait for adult education classes.
  Nationally, the statistics are even more daunting. More than 46 
million Americans do not have a high school diploma.
  Studies have shown that the strongest factor in determining the 
academic success and job prospects of a child is the education level of 
his or her parents. How can we expect children to learn to read if 
their parents cannot do so themselves?
  Although the States, local governments, schools, and community groups 
do their best to address these needs, my constituents who are involved 
in adult education tell me that they are barely able to make a dent in 
this problem with the current resources at their disposal.
  I am pleased that this bill will offer the people of the Sixth 
District of Massachusetts and elsewhere some of the needed resources to 
enhance adult education and literacy services.
  This bill encourages cooperation among service providers. It 
increases the Federal commitment of support, and asks local governments 
to step up their contributions to the effort; it provides for more and 
better training of instructors, and for the resources to develop the 
most effective way of actually improving and delivering literacy 
assistance.
  With respect to employment and training, this legislation provides a 
greater choice in securing job training through skill grants. With 
skill grants, recipients will be able to choose programs that are 
available at various centers or universities accessible to them. 
Information will be made available that will identify available job 
opportunities, site the skills and education needed for particular 
jobs, and match applicants to the programs providing the right kind of 
help. So an individual can work toward and get an real, existing job.
  In addition, I welcome the concept of workforce development boards. 
Under these boards, different parts of the State will be able to 
determine what is best for their community. This is important in a 
State as diverse as mine. As a former president of my local Chamber of 
Commerce, I recognize the need for business and industry to join with 
other community groups and local governments to work to insure that 
those in search of a job can identify the skills necessary to obtain a 
job within their region, and that the programs devised for education 
and training for positions reflect the true needs of the local 
businesses.
  I am concerned, however, that specific language was left out of the 
legislation which would have included specifically the representatives 
of working people as members of these boards. If local business and 
industry have a place at the table, then the people that work for such 
companies should also be included. We can recall that under the Job 
Training Partnership Act, the Private Industry Councils (PICs) were 
required to have representatives from business and industry as well as 
organized workers. It strongly encourages that our local communities 
use their available discretion to make sure that working people are 
truly represented on workforce development boards. Without that, I 
think the intent and meaning of that aspect of the legislation will be 
ignored and the program will not be as successful as it could possibly 
be.
  Great effort has been made to work out a formula for distribution 
within States of the resources provided for in this legislation. It is 
of great concern that every person who needs these services will have 
access to them, and I believe the committee should continually review 
the actual implementation of this legislation to insure that a broad 
range of people within the State have input into the decisions that are 
made on this bill.
  I am also pleased that the majority worked with us to include an 
amendment strengthening section 508 of the Vocational Rehabilitation 
Act. Section 508 calls on Federal agencies to follow Federal guidelines 
to insure that their information technology is accessible to employees 
with disabilities. The amendment asks the Office of Management and 
Budget to enforce existing law and to bring Agencies into compliance 
with accessibility guidelines. This will aid the 7.5 percent of the 
Federal work force who have a disability. I also wanted to thank 
Congresswoman Eshoo for her dedication and hard work on this issue, and 
Congressman George Miller for his work and cooperation.
  Again, I commend the spirit and the manner in which this and the IDEA 
legislation were brought to the floor and hope that it foretells 
further cooperation on the important matters that will come before the 
House.
  The CHAIRMAN. All time for general debate has expired.

[[Page H2810]]

  The committee amendment in the nature of a substitute printed in the 
bill shall be considered by division as an original bill for the 
purpose of amendment and, pursuant to the rule, each division is 
considered read.
  Before consideration of any other amendment, it shall be in order to 
consider the amendment numbered 1 pursuant to clause 6 of rule XXIII, 
if offered by the gentleman from California [Mr. McKeon] or his 
designee. That amendment shall be considered as read, may amend 
portions of the bill not yet read for amendment, shall be debatable for 
10 minutes, equally divided and controlled by the proponent and the 
opponent, shall not be subject to amendment, and shall not be subject 
to a demand for division of the question.
  If that amendment is adopted, the bill, as amended, shall be 
considered as an original bill for the purpose of further amendment.
  During consideration of the bill for amendment, the Chair may accord 
priority in recognition to a Member offering an amendment that he has 
printed in the designated place in the Congressional Record. Those 
amendments will be considered read.


                 Amendment No. 1 Offered by Mr. Mc Keon

  Mr. McKEON. Mr. Chairman, pursuant to the rule, I offer amendment No. 
1 printed in the Record.
  The CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 1 offered by Mr. McKeon:
       Page 9, line 18, strike ``15'' and insert ``20''.
       Page 10, line 6, strike ``85'' and insert ``80''.
       Page 23, line 21, after ``1996,'' insert ``the Community 
     Services Block Grant Act, title V of the Older Americans Act 
     of 1965, the National and Community Service Act of 1990,''.
       Page 25, line 12, strike ``(9)'' and insert ``(9)(A)''.
       Page 25, after line 21, insert the following:
       ``(B) An assurance that each local workforce development 
     area will be allowed to determine the proportion of funds 
     allocated to such area under section 204(b)(2) that will be 
     used to provide summer employment opportunities and year-
     round disadvantaged youth activities, respectively.
       Page 27, strike lines 10 through 15 and insert the 
     following:
       ``(A) a description of the assessment that will be made to 
     determine the adult education and family literacy needs of 
     the State;
       ``(B) a description of the adult education and literacy 
     activities that will be carried out with any funds received 
     under such part, including activities carried out under 
     section 314(a) of such Act;
       Page 27, line 16, strike ``such activities'' and insert 
     ``the adult education and literacy activities that will be 
     carried out with any funds received under such part''.
       Page 28, beginning on line 4, strike ``the Adult Education 
     and Family Literacy Act;'' and insert ``such Act;''.
       Page 29, line 3, strike ``determines'' and all that follows 
     through line 5 and insert ``makes a written determination, 
     within 90 days after receiving the plan, that the plan is 
     inconsistent with the specific provisions of this Act.
       Page 29, line 10, strike ``through (10)'' and insert 
     ``through (9)(A), paragraph (10),''.
       Page 30, line 2, strike ``entities:'' and insert the 
     following: ``entities (who overall, represent diverse regions 
     of the State, including urban, rural, and suburban areas):''.
       Page 30, after line 3, insert the following:
       ``(2) representatives of the State legislature;''.
       Page 30, line 4, strike ``(2)'' and insert ``(3)''.
       Page 30, line 22, strike ``(3)'' and insert ``(4)''.
       Page 31, line 14, strike ``(4)'' and insert ``(5)''.
       Page 31, line 16, after ``designate;'' insert ``and''.
       Page 31, strike line 17.
       Page 33, strike line 22 and 23 and insert the following:
       ``(a) Designation of Areas.--
       ``(1) In general.--Except as provided in subsection (b), 
     and consistent with paragraph (2), a State that desires to 
     receive a grant under title II
       Page 34, line 8, strike ``(1)'' and insert ``(A)'' (and 
     move such subparagraph 2 ems to the right).
       Page 34, line 9, strike ``(2)'' and insert ``(B)'' (and 
     move such subparagraph 2 ems to the right).
       Page 34, line 12, strike ``(3)'' and insert ``(C)'' (and 
     move such subparagraph 2 ems to the right).
       Page 34, line 14, strike ``(4)'' and insert ``(D)'' (and 
     move such subparagraph 2 ems to the right).
       Page 34, line 19, strike ``(5)'' and insert ``(E)'' (and 
     move such subparagraph 2 ems to the right).
       Page 34, after line 20, insert the following:
       ``(2) Automatic designation.--The Governor shall approve 
     any request for designation as a workforce development area 
     from any unit of general local government with a population 
     of 500,000 or more.
       Page 35, line 21, strike ``Such'' and insert ``(A) Such''.
       Page 35, line 24, strike ``(A)'' and insert `(i)''.
       Page 36, line 8, strike ``(B)'' and insert `(ii)''.
       Page 36, line 19, add ``and'' at the end.
       Page 36, line 20, strike ``(C)'' and insert `(iii)''.
       Page 37, beginning on line 6, strike ``entities;'' and all 
     that follows through line 9 and insert ``entities.''.
       Page 37, after line 6, insert the following:
       ``(B) In addition, the membership of each local board may 
     consist of representatives of local welfare agencies, 
     economic development agencies, and the local employment 
     service system.
       Page 41, line 8, after ``board'' insert ``, in partnership 
     with the chief local elected official,''.
       Page 41, line 9, after ``Governor'' insert ``, for 
     approval,''
       Page 45, strike line 10 and all that follows through line 9 
     on page 46.
       Page 52, line 19, strike ``center''.
       Page 52, line 19, strike ``and''.
       Page 52, line 21, strike ``activities'' and insert 
     ``activities, and upon request, minutes of formal meetings of 
     the local board''.
       Page 59, line 5, strike ``for'' and all that follows 
     through line 20 and insert the following: ``for programs that 
     are eligible to participate in title IV of the Higher 
     Education Act of 1965.''.
       Page 61, line 23, strike ``and''.
       Page 61, line 25, strike ``program.'' and insert ``program; 
     and''.
       Page 61, after line 25, insert the following:
       ``(D) for literacy providers or providers of integrated 
     education and training services, the success rate of the 
     applicable program in raising the literacy levels of 
     individuals in skill areas that are considered important for 
     successful participation in training and employment.
       Page 66, strike line 9 and all that follows through line 2 
     on page 67 and insert the following:
       ``(A) Termination for nonperformance.--If the designated 
     State agency, or the local workforce development board 
     working through the State agency, determines that an eligible 
     provider under subsection (a) substantially fails to meet 
     performance criteria established by the Governor, the agency, 
     or the local board working through the State agency, may 
     terminate the eligibility of such provider.
       Page 83, line 20, strike ``Negotiation'' and insert 
     ``Agreement''.
       Page 83, beginning on line 25, strike ``is authorized to 
     negotiate with each State'' and insert ``and each State shall 
     reach agreement on''.
       Page 84, beginning on line 8, strike ``negotiations'' and 
     insert ``agreement''.
       Page 84, line 24, strike ``carry out the negotiation'' and 
     insert ``enter into the agreement''.
       Page 85, beginning on line 5, strike ``carry out the 
     negotiation'' and insert ``enter into the agreement''.
       Page 89, strike line 15 and insert the following:
       ``(a) Report.--
       ``(1) In general.--Each State that receives funds
       Page 89, line 25, strike ``In'' and insert the following:
       ``(2) Additional information.-- In''.
       Page 90, line 1, strike ``include'' and insert ``include--
     ''.
       Page 90, line 1, strike ``information'' and insert the 
     following:
       ``(A) information
       Page 90, line 3, strike the period and insert ``; and''.
       Page 90, after line 3, insert the following:
       ``(B) comments assessing the process used for reaching 
     agreement on the State adjusted benchmarks pursuant to 
     section 153(a) and may also include comments from local 
     workforce development areas assessing the process for 
     negotiating local benchmarks pursuant to section 153(b).
       Page 92, line 20, strike ``upon request to the Secretary'' 
     and insert ``or upon request by the Governor, the 
     Secretary''.
       Page 92, line 21, strike ``including'' and insert ``which 
     may include''
       Page 92, line 22, strike ``plan'' and insert ``plan, or the 
     development of a modified local plan''.
       Page 93, strike line 15 and all that follows through line 4 
     on page 94 and insert the following:
       ``(ii) Appeal by workforce development area.--

       ``(I) Appeal to governor.--A workforce development area 
     that is subject to a reorganization plan under clause (i) 
     may, not later than 30 days after receiving notice thereof, 
     appeal to the Governor to rescind or revise such plan. In 
     such case, the Governor shall make a final decision not later 
     then 30 days after the receipt of the appeal.
       ``(II) Subsequent action.--A local workforce development 
     area may, not later than 30 days after receiving a decision 
     from the Governor pursuant to subclause (I), appeal such 
     decision to the Secretary. In such case the Secretary shall 
     make a final decision not later than 30 days after the 
     receipt of the appeal.

       ``(iii) Effective date.--The actions take by the Governor 
     under subclause (I) shall become effective at the time the 
     Governor issues a decision pursuant to such subclause. Such 
     action shall remain effective unless the Secretary rescinds 
     or revises such plan pursuant to subclause (II).''.

[[Page H2811]]

       Page 103, strike line 14, and insert the following:
       (2) by striking subsection (e) and inserting the following:
       ``(e) Waivers.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, the Secretary of Labor may waive--
       ``(A) any of the statutory or regulatory requirements of 
     this title and titles II and III of this Act (except for 
     requirements relating to wage and labor standards, worker 
     rights, participation and protection, grievance procedures 
     and judicial review, nondiscrimination, allocation of funds 
     to local areas, eligibility, review and approval of plans, 
     the establishment and functions of workforce development 
     areas and workforce development boards, and the basic 
     purposes of the Act); and
       ``(B) any of the statutory or regulatory requirements of 
     sections 8 through 10 of the Wagner-Peyser Act (29 U.S.C. 49g 
     through 49i) (except for requirements relating to the 
     provision of services to unemployment insurance claimants and 
     veterans and to universal access to basic labor exchange 
     services without cost to job seekers), pursuant to a request 
     submitted by a State which meets the requirements of 
     paragraph (2).
       ``(2) Requests.--A State requesting a waiver under 
     paragraph (1) shall submit a plan to the Secretary to improve 
     the workforce development system which--
       ``(A) identifies the statutory or regulatory requirements 
     that are requested to be waived and the goals which the State 
     or local workforce development areas intend to achieve;
       ``(B) describes the actions that the State or local 
     workforce development areas have undertaken to remove State 
     or local statutory or regulatory barriers;
       ``(C) describes the goals of the waiver and the expected 
     programmatic outcomes if the request is granted;
       ``(D) describes the individuals impacted by the waiver; and
       ``(E) describes the process used to monitor the progress in 
     implementing a waiver, and for which notice and an 
     opportunity to comment on such request has been provided to 
     the organizations identified in section 122 (e)(2) of this 
     Act, if and only to the extent that the Secretary determines 
     that such requirements impede the ability of the State to 
     implement such plan to improve the workforce development 
     system and the State has executed a memorandum of 
     understanding with the Secretary requiring such State to meet 
     agreed-upon outcomes and implement other appropriate measures 
     to ensure accountability.
       Page 104, strike line 6 and insert the following:
       ``(a) Administrative Costs.--
       ``(1) In general.--The Secretary, after consultation
       Page 104, after line 11, insert the following:
       ``(2) Additional requirement.--Notwithstanding any other 
     provision of law, regulations issued by the Secretary under 
     paragraph (1) shall provide procedures under which the 
     Governor may approve a plan for the pooling of administrative 
     funds, which are available in accordance with the limitation 
     in subsection (b)(1), if the Governor determines that such 
     plan would not jeopardize the administration of the 
     activities from which such funds are to be transferred.
       Page 114, line 21, after ``reserve'' insert ``not less 
     than''.
       Page 114, line 25, strike ``services''.
       Page 115, strike line 2 and all that follows through line 5 
     and insert the following:
       ``(ii) agree to provide matching funds from sources other 
     than those received under this subparagraph for such services 
     in an amount equal to the Federal funds received under this 
     subparagraph.
       Page 116, line 18, after ``121,'' insert ``in accordance 
     with paragraphs (2) and (3),''.
       Page 116, strike line 21 and all that follows through line 
     11 on page 118 and insert the following:
       ``(2) Allocation by formula.--
       ``(A) In general.--Each State shall allocate not less than 
     70 percent of the remainder of funds described in paragraph 
     (1) to workforce development areas within the State pursuant 
     to the formula contained in subparagraph (B) for the 
     provision of services for disadvantaged youth in accordance 
     with section 206.
       ``(B) Formula.--Of the amounts described in subparagraph 
     (A)--
       ``(i) 33\1/3\ percent shall be allocated on the basis of 
     the relative number of unemployed individuals residing in 
     areas of substantial unemployment in each workforce 
     development area as compared to the total number of such 
     unemployed individuals in all such areas of substantial 
     unemployment in the State;
       ``(ii) 33\1/3\ percent shall be allocated on the basis of 
     the relative excess number of unemployed individuals who 
     reside in each workforce development area as compared to the 
     total excess number of unemployed individuals in all 
     workforce development areas in the State; and
       ``(iii) 33\1/3\ percent shall be allocated on the basis of 
     the relative number of economically disadvantaged youth in 
     each workforce development area as compared to the total 
     number of disadvantaged youth in all workforce development 
     areas in the State.
       ``(3) Discretionary allocation.--The State, through the 
     collaborative process under section 102, is authorized to 
     allocate not more than 30 percent of the remainder of funds 
     described in paragraph (1) to workforce development areas for 
     the provision of services for disadvantaged youth in 
     accordance with section 206. Such funds shall be allocated to 
     urban, rural, and suburban areas throughout the State and 
     shall be allocated promptly in accordance with section 
     162(e).
       Page 123, line 2, strike ``and'' at the end.
       Page 123, line 3, strike the period and insert ``; and''.
       Page 123, after line 3 insert the following:
       ``(H) provide summer employment opportunities that are 
     directly linked to academic and occupational learning.''.
       Page 124, strike line 4 and all that follows through line 
     10.
       Page 124, strike lines 11 and 12 and insert the following:

       (III) in subparagraph (G) by striking ``in public

       Page 124, line 18, strike ``(V)'' and insert ``(IV)''.
       Page 124, strike line 25 and insert the following: ``area; 
     and';''.
       Page 125, strike lines 1 and 2 and insert the following:

       (V) by amending subparagraph (I) to read as follows:

       ``(I) summer employment opportunities that are directly 
     linked to academic and occupational learning.''; and

       (VI) by striking subparagraphs (J) through (L); and

       Page 139, line 5, strike ``and''.
       Page 139, line 6, after ``projects'' insert ``, and the 
     provision of employment and training services''.
       Page 143, strike line 5 and all that follows through line 
     23 on page 145 and insert the following:
       ``(B) Adult employment and training allocations.--
       ``(i) Adult employment and training formula allocations.--
     Each State shall allocate not less than 70 percent of the 
     remainder of funds described in subsection (a)(1)(A) to 
     workforce development areas within the State pursuant to the 
     formula contained in clause (ii) for the provision of adult 
     employment and training services in accordance with section 
     314.
       ``(ii) Formula.--Of the amounts described in clause (i)--

       ``(I) 33\1/3\ percent shall be allocated on the basis of 
     the relative number of unemployed individuals residing in 
     areas of substantial unemployment in each workforce 
     development area as compared to the total number of such 
     unemployed individuals in all such areas of substantial 
     unemployment in the State;
       ``(II) 33\1/3\ percent shall be allocated on the basis of 
     the relative excess number of unemployed individuals who 
     reside in each workforce development area as compared to the 
     total excess number of unemployed individuals in all 
     workforce development areas in the State; and
       ``(III) 33\1/3\ percent shall be allocated on the basis of 
     the relative number of economically disadvantaged adults in 
     each workforce development area as compared to the total 
     number of disadvantaged adults in all workforce development 
     areas in the State.

       ``(iii) Adult employment and training discretionary 
     allocation.--The State, through the collaborative process, is 
     authorized to allocate not more than 30 percent of the 
     remainder of funds described in subsection (a)(1)(A) to 
     workforce development areas for the provision of adult 
     employment and training services in accordance with section 
     314. Such funds shall be allocated to urban, rural, and 
     suburban areas throughout the State and shall be allocated 
     promptly in accordance with section 162(e).
       ``(C) Dislocated worker employment and training 
     allocations.--
       ``(i) Dislocated worker employment and training formula 
     allocations.--Each State shall allocate not less than 70 
     percent of the remainder of funds described in subsection 
     (a)(2)(A) to workforce development areas within the State 
     pursuant to the formula contained in clause (ii) for the 
     provision of employment and training services to dislocated 
     workers in accordance with section 314.
       ``(ii) Formula.--Of the amounts described in clause (i)--

       ``(I) 33\1/3\ percent shall be allocated on the basis of 
     the relative number of unemployed individuals residing in 
     areas of substantial unemployment in each workforce 
     development area as compared to the total number of such 
     unemployed individuals in all such areas of substantial 
     unemployment in the State;
       ``(II) 33\1/3\ percent shall be allocated on the basis of 
     the relative excess number of unemployed individuals who 
     reside in each workforce development area as compared to the 
     total excess number of unemployed individuals in all 
     workforce development areas in the State; and
       ``(III) 33\1/3\ percent shall be allocated on the basis of 
     the relative number of individuals who have been unemployed 
     for 15 weeks or more within each workforce development area 
     of the State as compared to the total number of such 
     individuals in all workforce development areas in the State.

       ``(iii) Dislocated worker employment and training 
     discretionary allocation.--The State, through the 
     collaborative process, is authorized to allocate not more 
     than 30 percent of the remainder of funds described in 
     subsection (a)(2)(A) to workforce development areas for the 
     provision employment and training services to dislocated 
     workers in accordance with section 314. Such funds shall be 
     allocated to urban, rural, and suburban areas throughout the 
     State and shall be

[[Page H2812]]

     allocated promptly in accordance with section 162(e).
       Page 145, line 24, strike ``(4)'' and insert ``(3)''.
       Page 158, line 17, add at the end closed quotation marks 
     and a second period.
       Page 158, strike line 18 and all that follows through line 
     24.
       Page 170, line 19, strike the closed quotation marks and 
     the second period.
       Page 170, after line 19, insert the following:
       ``(e) Prior to the closure of any Job Corps center, the 
     Secretary shall ensure that--
       ``(1) the proposed decision to close the center is 
     announced in advance to the general public through 
     publication in the Federal Register or other appropriate 
     means;
       ``(2) the establishment of a reasonable comment period, not 
     to exceed 30 days, for interested individuals to submit 
     written comments to the Secretary;
       ``(3) the Members of Congress who represent districts 
     affected by the proposed decision to close the center are 
     notified within a reasonable period of time in advance of any 
     final decision to close the center; and
       ``(4) the geographic location of alternative Job Corps 
     centers is among the factors taken into account in the 
     decision to close the center.
       Page 174, line 15, strike ``skills'' and insert ``skill 
     needs''.
       Page 174, after line 15, insert the following:
       ``(B) projects that provide training to upgrade the skills 
     of employed workers who reside and are employed in enterprise 
     zones or empowerment communities;
       Page 174, line 16, strike ``(B)'' and insert ``(C)''.
       Page 174, line 20, strike ``(C)'' and insert ``(D)''.
       Page 174, line 24, strike ``(D)'' and insert ``(E)''.
       Page 175, line 4, strike ``(E)'' and insert ``(F)''.
       Page 175, line 9, strike ``and''.
       Page 175, after line 9, insert the following:
       ``(G) projects to assist public housing authorities that 
     provide to public housing residents job training programs 
     that demonstrate successful job skills upgrading and 
     employment;
       Page 175, line 10, strike ``(F)'' and insert ``(H)''.
       Page 191, strike lines 15 through 25 and insert the 
     following:
       ``(A) the degree to which the provider will establish 
     measurable goals for client outcomes, including the core 
     indicators of performance pertaining to adult education set 
     forth in section 154 of the Employment, Training, and 
     Literacy Enhancement Act, that are tied to challenging State 
     performance standards for literacy proficiency;
       ``(B) the past effectiveness of a provider in improving the 
     literacy skills of adults and families, and, after the 1-year 
     period beginning with the adoption of a State's core 
     indicators and benchmarks under the Employment, Training, and 
     Literacy Enhancement Act, the success of a provider receiving 
     funding under this Act in meeting or exceeding such 
     benchmarks, especially with respect to those adults with the 
     lowest levels of literacy;
       Page 192, line 19, add ``and'' at the end;
       Page 192, line 25, strike ``activities;'' and insert 
     ``activities.''.
       Page 193, strike lines 1 through 10.
       Page 202, line 5, strike ``agencies;'' and insert 
     ``agencies, such as the special literacy needs of individuals 
     with learning disabilities;''
       Page 226, strike the item relating to section 322.
       Page 274, strike line 10 and all that follows through line 
     14 and insert the following:
       (ii) in subsection (e)(1)(B)(iii), by striking ``Job 
     Training Partnership Act (29 U.S.C. 1693)'' and inserting 
     ``Employment, Training, and Literacy Enhancement Act''.
       Page 276, line 9, strike ``The Secretary of Education'' and 
     insert ``(a) In General.--The Secretary of Education''.
       Page 276, after line 14, insert the following:
       (b) Extended Transition Period.--
       (1) In general.--If, on or before July 1, 1997, a State has 
     enacted a State statute that provides for the establishment 
     or conduct of three or more of the programs, projects, or 
     activities described in subparagraphs (A) through (E) or 
     paragraph (2), the State shall not be required to comply with 
     provisions of this Act that conflict with such State statute 
     for the period ending three years after the date of enactment 
     of this Act.
       (2) Programs, projects, and activities described.--The 
     programs, projects, and activities described in this 
     paragraph are the following:
       (A) Establishment of human resource investment councils or 
     substate councils.
       (B) Reorganization or consolidation of State agencies with 
     responsibility for State employment and training programs.
       (C) Reorganization or consolidation of State employment and 
     training programs.
       (D) Restructuring of local delivery systems for State 
     employment and training programs.
       (E) Development or restructuring of State accountability or 
     oversight systems to focus on performance.

  The CHAIRMAN. Pursuant to the rule, the gentleman from California 
[Mr. McKeon] and a Member opposed each will control 5 minutes.
  The Chair recognizes the gentleman from California [Mr. McKeon].
  Mr. McKEON. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, I am offering an en bloc package of amendments which 
focus on providing greater flexibility to States and localities as they 
work to carry out meaningful job training reform. These amendments 
reflect several months of effort by the National Governors' 
Association, the National Conference of State Legislatures, and the 
National Association of Counties in coming to a consensus with respect 
to several key parts of this legislation.
  In working with the members of these organizations, we have not only 
been able to gain their support for this legislation but we have made 
substantial improvements to the bill. Specifically, the amendments 
included in this en bloc accomplish the following: Ensures that members 
of the State collaborative process used for design and implementation 
at the State level of programs under this act represent diverse regions 
of the State; increases flexibility with respect to membership of local 
work force development boards; increases the roll of chief local 
elected officials by authorizing them to develop local plans in 
partnership with local work force development boards; increases public 
accountability of local work force development boards; further 
clarifies the role of each State with respect to determining State 
expected levels of performance; and provides a process through which 
formal State and local comments on this process may be transmitted 
annually to Congress; expedites the process by which Governors may 
enforce performance accountability; provides States increased 
flexibility to initiate reforms by extending certain waivers of waiver 
provisions and providing a limited grandfather for States having passed 
comprehensive employment and training reform legislation; maintains 
existing State-passed formulas with respect to a majority of the funds 
under the block grants while providing increased discretion to States 
for the allocation of those funds not distributed under the formula; 
provides greater local discretion with respect to carrying out summer 
youth programs and clarifies that summer employment activities are an 
essential element of disadvantaged youth programs; requires that the 
Secretary must sign off on State plans unless they determine in writing 
within 90 days of receipt of the plan that it is inconsistent with the 
specific provisions of this act; and ensures the ability of any unit of 
local government with a population of 500,000 or more to be designated 
as a work force development area.
  Finally, this package of amendments also makes several modifications 
to further streamline the adult education provisions of this act, and 
also includes several additional technical and conforming changes to 
the bill.
  Mr. Chairman, I reserve the balance of my time.
  Mr. KILDEE. Mr. Chairman, I am not opposed to the amendment, but I 
ask unanimous consent that I may claim the time allowed under the rule.
  The CHAIRMAN. Is there objection to the request of the gentleman from 
Michigan?
  There was no objection.
  The CHAIRMAN. The gentleman from Michigan [Mr. Kildee] is recognized 
for 5 minutes.
  Mr. KILDEE. Mr. Chairman, I would just say that these are clarifying 
and perfecting amendments which we agreed to. I would certainly support 
them, and urge their adoption.
  Mr. Chairman, I yield back the balance of my time.
  Mr. McKEON. Mr. Chairman, I yield back the balance of my time.
  The CHAIRMAN. The question is on the amendment offered by the 
gentleman from California [Mr. McKeon].
  The amendment was agreed to.
  The CHAIRMAN. The Clerk will designate section 1.
  The text of section 1 is as follows:

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Employment, Training, and 
     Literacy Enhancement Act of 1997''.

  The CHAIRMAN. Are there any amendments to section 1?
  The Clerk will designate section 2.
  The text of section 2 is as follows:

     SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF 
                   CONTENTS.

       (a) Divisions.--This Act is organized into two divisions as 
     follows:
       (1) Division A--Employment, Training, and Literacy 
     Programs.

[[Page H2813]]

       (2) Division B--Vocational Rehabilitation Programs.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title.
Sec. 2. Organization of Act into divisions; table of contents.

        DIVISION A--EMPLOYMENT, TRAINING, AND LITERACY PROGRAMS

   TITLE I--AMENDMENTS TO GENERAL PROVISIONS AND PROGRAM REQUIREMENTS

                     Subtitle A--General Provisions

Sec. 101. Statement of purpose.
Sec. 102. Authorization of appropriations.
Sec. 103. Definitions.

         Subtitle B--State and Local Administrative Provisions

Sec. 111. State administrative provisions.
Sec. 112. Local administrative provisions.

               Subtitle C--Program and Fiscal Provisions

                     Chapter 1--General Provisions

Sec. 121. General program requirements.
Sec. 122. Benefits.
Sec. 123. Labor standards.
Sec. 124. Grievance procedure.
Sec. 125. Identification of additional imposed requirements.
Sec. 126. Authority of State legislature.
Sec. 127. Interstate agreements.

            Chapter 2--Performance Accountability Provisions

Sec. 131. Performance accountability provisions.

                      Chapter 3--Other Provisions

Sec. 141. Prompt allocation of funds.
Sec. 142. Fiscal controls; sanctions.
Sec. 143. Reports; recordkeeping; and investigations.
Sec. 144. Administrative adjudication.
Sec. 145. Nondiscrimination.
Sec. 146. Judicial review.
Sec. 147. Administrative provisions.
Sec. 148. Presidential awards for outstanding private sector 
              involvement in job training programs.
Sec. 149. Construction.
Sec. 150. Limitation on certain costs.

                  Subtitle D--Miscellaneous Provisions

Sec. 161. Criminal provisions.
Sec. 162. Reference.
Sec. 163. Repealers.

     TITLE II--AMENDMENTS TO EMPLOYMENT AND TRAINING PROGRAMS FOR 
                          DISADVANTAGED YOUTH

Sec. 201. Adult training program.
Sec. 202. Summer youth employment and training program.
Sec. 203. Disadvantaged youth employment and training opportunities 
              grants.

  TITLE III--AMENDMENTS TO EMPLOYMENT AND TRAINING PROGRAMS FOR ADULTS

Sec. 301. Adult employment and training opportunities grants.

        TITLE IV--AMENDMENTS TO FEDERALLY ADMINISTERED PROGRAMS

 Subtitle A--Employment and Training Programs for Native Americans and 
                    Migrant and Seasonal Farmworkers

Sec. 401. Native American program.
Sec. 402. Migrant and seasonal farmworker program.

                         Subtitle B--Job Corps

Sec. 411. Statement of purpose.
Sec. 412. Individuals eligible for the Job Corps.
Sec. 413. Screening and selection of applicants; general provisions.
Sec. 414. Job Corps centers.
Sec. 415. Standards of conduct.
Sec. 416. Counseling and job placement.
Sec. 417. Experimental and developmental projects and coordination with 
              other programs.

                    Subtitle C--National Activities

Sec. 421. Research, demonstration, evaluation, and capacity building.
Sec. 422. Nontraditional employment demonstration program.

                         Subtitle D--Repealers

Sec. 451. Repealers.

            TITLE V--AMENDMENTS TO ADULT EDUCATION PROGRAMS

Sec. 501. Repeal of Jobs for Employable Dependent Individuals Incentive 
              Bonus Program.
Sec. 502. Amendment to Adult Education Act.
Sec. 503. Repeal of National Literacy Act of 1991.
Sec. 504. Conforming amendments.

                   TITLE VI--MISCELLANEOUS PROVISIONS

Sec. 601. Repealers.
Sec. 602. Conforming amendments.

    TITLE VII--AMENDMENTS TO STATE HUMAN RESOURCE INVESTMENT COUNCIL

Sec. 701. Amendments to Council.
Sec. 702. Transfer of Council.
Sec. 703. Conforming amendments.

              TITLE VIII--AMENDMENTS TO WAGNER-PEYSER ACT

Sec. 801. Definitions.
Sec. 802. Functions.
Sec. 803. Designation of State agencies.
Sec. 804. Appropriations.
Sec. 805. Disposition of allotted funds.
Sec. 806. State plans.
Sec. 807. Federal advisory council.
Sec. 808. Regulations.
Sec. 809. Effective date.

             TITLE IX--TECHNICAL AND CONFORMING AMENDMENTS

       Subtitle A--Amendments to the Job Training Partnership Act

Sec. 901. Short title; table of contents.
Sec. 902. Definitions.
Sec. 903. Amendments to title I.
Sec. 904. Amendments to title IV.
Sec. 905. Amendments to title VI.
Sec. 906. Clarification.

                  Subtitle B--Amendments to Other Acts

Sec. 911. Amendments to other Acts.

           TITLE X--EFFECTIVE DATE AND TRANSITION PROVISIONS

Sec. 1001. Effective date.
Sec. 1002. Transition provisions.

             DIVISION B--VOCATIONAL REHABILITATION PROGRAMS

              TITLE XXI--AMENDMENTS TO GENERAL PROVISIONS

Sec. 2101. Rehabilitation Services Administration.
Sec. 2102. Definitions.
Sec. 2103. Reports.

      TITLE XXII--AMENDMENTS TO VOCATIONAL REHABILITATION SERVICES

                     Subtitle A--General Provisions

Sec. 2201. Declaration of policy; authorization of appropriations.
Sec. 2202. State plans.
Sec. 2203. Scope of vocational rehabilitation services.
Sec. 2204. State Rehabilitation Advisory Council.
Sec. 2205. Evaluation standards and performance indicators.
Sec. 2206. Monitoring and review.
          Subtitle B--Basic Vocational Rehabilitation Services

Sec. 2211. State allotments.
Sec. 2212. Payments to States.
Sec. 2213. Client assistance program.

            TITLE XXIII--AMENDMENTS TO RESEARCH AND TRAINING

Sec. 2221. Authorization of appropriations.
Sec. 2222. National Institute on Disability and Rehabilitation 
              Research.

     TITLE XXIV--AMENDMENTS TO TRAINING AND DEMONSTRATION PROJECTS

  Subtitle A--Training Programs and Community Rehabilitation Programs

Sec. 2231. Training.
Sec. 2232. Repealers.
Sec. 2233. Authorization of appropriations.
        Subtitle B--Special Projects and Supplementary Services

Sec. 2241. Special demonstration programs.
Sec. 2242. Migratory workers.
Sec. 2243. Repealers.
Sec. 2244. Special recreational programs.

        TITLE XXV--AMENDMENTS TO NATIONAL COUNCIL ON DISABILITY

Sec. 2251. Authorization of appropriations.

             TITLE XXVI--AMENDMENTS TO RIGHTS AND ADVOCACY

Sec. 2261. Employment of individuals with disabilities.
Sec. 2262. Architectural and Transportation Barriers Compliance Board.
Sec. 2263. Protection and advocacy of individual rights.

  TITLE XXVII--AMENDMENTS TO EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS 
                           WITH DISABILITIES

Sec. 2271. Authorization of appropriations.
Sec. 2272. Repealers.

TITLE XXVIII--AMENDMENTS TO INDEPENDENT LIVING SERVICES AND CENTERS FOR 
                           INDEPENDENT LIVING

Sec. 2281. Authorization of appropriations.
Sec. 2282. Program authorization for centers for independent living.

 TITLE XXIX--AMENDMENTS TO SPECIAL DEMONSTRATIONS AND TRAINING PROJECTS

Sec. 2291. Authorization of appropriations.
Sec. 2292. Demonstration activities.
Sec. 2293. Training activities.

     TITLE XXX--AMENDMENTS TO THE HELEN KELLER NATIONAL CENTER ACT

Sec. 2295. Authorization of appropriations.

                       TITLE XXXI--EFFECTIVE DATE

Sec. 2297. Effective date.

  The CHAIRMAN. Are there any amendments to section 2?
  If not, the Clerk will designate division A.
  The text of division A is as follows:

        DIVISION A--EMPLOYMENT, TRAINING, AND LITERACY PROGRAMS

   TITLE I--AMENDMENTS TO GENERAL PROVISIONS AND PROGRAM REQUIREMENTS

                     Subtitle A--General Provisions

     SEC. 101. STATEMENT OF PURPOSE.

       Section 2 of the Job Training Partnership Act (29 U.S.C. 
     1501) is amended to read as follows:

     ``SEC. 2. STATEMENT OF PURPOSE.

       ``The purpose of this Act is to transform the current array 
     of Federal employment, training, and adult education and 
     literacy programs from a collection of fragmented and 
     duplicative categorical programs into high quality, coherent, 
     and accountable State and local systems that are designed--
       ``(1) to provide high quality training for today and for 
     the 21st century;
       ``(2) to empower individuals to choose occupations and 
     training programs, based on

[[Page H2814]]

     accurate and up-to-date information, that will develop more 
     fully their academic, occupational, and literacy skills, 
     leading to productive employment and economic self-
     sufficiency, and reduction in welfare dependency;
       ``(3) to provide resources and authority to States and 
     local communities and increase ease of access to high quality 
     employment, training, and literacy programs;
       ``(4) to provide adults with the adult education services 
     they require to participate fully in society;
       ``(5) to meet the needs of employers in the United States 
     to be competitive; and
       ``(6) to ensure an adequate return on the investment of 
     funds in employment, training, and literacy programs through 
     strong program accountability.''.

     SEC. 102. AUTHORIZATION OF APPROPRIATIONS.

       Section 3 of the Job Training Partnership Act (29 U.S.C. 
     1502) is amended to read as follows:

     ``SEC. 3. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) In General.--There are authorized to be appropriated 
     the following amounts for the following purposes (in addition 
     to amounts otherwise available for such purposes):
       ``(1) Title ii.--Such sums as may be necessary for each of 
     the fiscal years 1999 through 2003 to carry out title II.
       ``(2) Title iii.--(A) Such sums as may be necessary for 
     each of the fiscal years 1999 through 2003 to carry out 
     section 312(a)(1).
       ``(B) Such sums as may be necessary for each of the fiscal 
     years 1999 through 2003 to carry out section 312(a)(2).
       ``(3) Parts a, c, d, and e of title iv.--Subject to 
     subsection (b), such sums as may be necessary for each of the 
     fiscal years 1999 through 2003 to carry out parts A, C, D, 
     and E of title IV.
       ``(4) Part b of title iv.--Such sums as may be necessary 
     for each of the fiscal years 1999 through 2003 to carry out 
     part B of title IV.
       ``(b) Reservations.--Of the amount appropriated under 
     subsection (a)(3) for a fiscal year--
       ``(1) not less than $70,000,000 shall be reserved for 
     carrying out section 401;
       ``(2) not less than $70,000,000 shall be reserved for 
     carrying out section 402; and
       ``(3) the remainder shall be reserved for carrying out 
     parts C, D, and E of title IV.
       ``(c) Reallotment.--
       ``(1) In general.--The Secretary of Labor shall, in 
     accordance with this subsection, reallot to eligible States 
     amounts appropriated for programs authorized under titles II 
     and title III of this Act that are available for reallotment.
       ``(2) Amount.--The amount available for reallotment is 
     equal to the amount by which the unobligated balance of the 
     State allotment under title II or title III, respectively, at 
     the end of the program year prior to the program year for 
     which the determination under this paragraph is made exceeds 
     20 percent of such allotment for the prior program year.
       ``(3) Reallotment.--In making reallotments to eligible 
     States of amounts available pursuant to paragraph (2) for a 
     program year, the Secretary shall allot to each eligible 
     State an amount based on the relative amount allotted to such 
     State under title II or title III, respectively, for the 
     prior program year as compared to the total amount allotted 
     to all eligible States under title II or title III, 
     respectively, for such prior program year.
       ``(4) Eligibility.--For purposes of this subsection, an 
     eligible State means a State which has obligated at least 80 
     percent of its allotments under title II or title III, 
     respectively, for the program year prior to the program year 
     for which the determination under this subsection is made.
       ``(5) Procedures.--The Governor of each State shall 
     prescribe uniform procedures for the obligation of funds by 
     workforce development areas within the State in order to 
     avoid the requirement that funds be made available for 
     reallotment under this subsection. The Governor shall further 
     prescribe equitable procedures for making funds available 
     from the State and workforce development areas in the event 
     that a State is required to make funds available for 
     reallotment under this paragraph.''.

     SEC. 103. DEFINITIONS.

       Section 4 of the Job Training Partnership Act (29 U.S.C. 
     1503) is amended--
       (1) in paragraph (1) to read as follows:
       ``(1) Adult education and literacy activities.--The term 
     `adult education and literacy activities' means the 
     activities authorized under section 314 of the Adult 
     Education and Family Literacy Act.'';
       (2) by striking paragraph (2);
       (3) by inserting after paragraph (1) the following:
       ``(2) Appropriate secretary.--The term `appropriate 
     Secretary' means--
       ``(A) the Secretary of Labor, with respect to programs 
     authorized under titles II, III, and IV of this Act; and
       ``(B) the Secretary of Education, with respect to programs 
     authorized under the Adult Education and Family Literacy 
     Act.'';
       (4) in paragraph (3), by striking ``under parts A and C of 
     title II'' and inserting ``under title II and title III'';
       (5) in paragraph (4) to read as follows:
       ``(4) Chief elected official.--The term `chief elected 
     official' means the chief elected executive officer of a unit 
     of general local government in a workforce development 
     area.'';
       (6) in paragraph (5) to read as follows:
       ``(5) Community-based organization.--The term `community-
     based organization' means a private nonprofit organization 
     that is representative of a community or a significant 
     segment of a community and that has demonstrated the ability, 
     or that can demonstrate a capacity, to effectively administer 
     a program under this Act.'';
       (7) by striking paragraph (6);
       (8) by inserting after paragraph (5) the following:
       ``(6) 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 and substantial layoff at, a 
     plant, facility, or enterprise;
       ``(C) 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;
       ``(D) is a displaced homemaker; or
       ``(E) has become unemployed as a result of a Federal action 
     that limits the use of, or restricts access to, a marine 
     natural resource.'';
       (9) in paragraph (10) to read as follows:
       ``(10) Individual with a disability.--(A) 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) The term `individuals with disabilities' means more 
     than one individual with a disability.'';
       (10) by striking paragraph (11);
       (11) in paragraph (14), by striking ``section 521(22) of 
     the Carl D. Perkins Vocational Education Act'' and inserting 
     ``section 14101 of the Elementary and Secondary Education Act 
     of 1965 (20 U.S.C. 8801)'';
       (12) in paragraph (18), by striking all after ``institution 
     of higher education'' and inserting ``(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.).'';
       (13) by striking paragraph (19);
       (14) in paragraph (21) to read as follows:
       ``(21) Secretaries.--The term `Secretaries' means the 
     Secretary of Labor and the Secretary of Education.'';
       (15) in paragraph (22) to read as follows:
       ``(22) State.--The term `State' means each of the several 
     States of the United States, the District of Columbia, and 
     the Commonwealth of Puerto Rico.'';
       (16) in paragraph (24) to read as follows:
       ``(24) 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 programs authorized under 
     title II and title III of this Act, consistent with the 
     provisions of such titles.'';
       (17) in paragraph (27) to read as follows:
       ``(27) Veteran.--The term `veteran' has the meaning given 
     such term in section 101(2) of title 38, United States 
     Code.'';
       (18) by striking paragraph (35);
       (19) by striking paragraph (36);
       (20) in paragraph (37), by striking ``post-termination 
     services authorized under sections 204(c)(4) and 264(d)(5) 
     and follow up services authorized under section 253(d)'' and 
     inserting ``follow up services authorized under this Act''; 
     and
       (21) by adding at the end the following:
       ``(41) Employment, training and literacy programs.--The 
     term `employment, training and literacy programs' means 
     programs authorized under titles II and III of this Act and 
     the Adult Education and Family Literacy Act.
       ``(42) 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.
       ``(43) 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 that leads to economic self-
     sufficiency.
       ``(D) An age-appropriate education to prepare children for 
     success in school and life experiences.
       ``(44) Full service eligible providers.--The term `full 
     service eligible provider' means a provider designated under 
     section 123(c).
       ``(45) Human resource programs.--The term `human resource 
     programs' means programs identified under section 103.
       ``(46) 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.

[[Page H2815]]

       ``(47) 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.
       ``(48) Local benchmarks.--The term `local benchmarks' means 
     the expected level of performance of a local workforce 
     development area established pursuant to section 153(b).
       ``(49) Local board.--The term `local board' means a local 
     workforce development board established under section 122.
       ``(50) Local workforce development area.--The term `local 
     workforce development area' means an area designated under 
     section 121(a).
       ``(51) On-the-job training.--The term `on-the-job training' 
     means training by an employer 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, taking 
     into account the content of the training, the prior work 
     experience of the participant, and the service strategy of 
     the participant, as appropriate.
       ``(52) Outlaying 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.
       ``(53) 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 313(a)(2) in the case of 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 representative--
       ``(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) assistance in establishing voluntary labor management 
     committees with the ability to devise and implement a 
     strategy for assessing the employment and training needs 
     of dislocated workers and obtaining services to meet those 
     needs;
       ``(D) the provision of emergency assistance adapted to the 
     particular closure, layoff, or disaster; and
       ``(E) the provision of assistance to the local community in 
     developing a coordinated response and in obtaining access to 
     State economic development assistance.
       ``(54) Representatives of employees.--For purposes of 
     section 122, the term `representatives of employees' means--
       ``(A) individuals who have been elected by organizations, 
     associations, or a network of similar institutions to 
     represent the economic interests of employees at a 
     significant segment of workplaces located in, or adjacent to, 
     the local workforce development area; or
       ``(B) individuals from organizations, associations, or a 
     network of similar institutions, with expertise to represent, 
     or experience representing, the interests of employees with 
     respect to the job training priorities in the local workforce 
     development area.
       ``(55) Skill grant.--The term `skill grant' means a voucher 
     or credit issued to a participant under section 314(c)(6)(A) 
     for the purchase of training services from eligible providers 
     of such services.
       ``(56) State adjusted benchmarks.--The term `state adjusted 
     benchmarks' means a state's expected levels of performance 
     established pursuant to 153(a).
       ``(57) State benchmark.--The term `State benchmark' means 
     the benchmarks established by the state pursuant to section 
     152(a).
       ``(58) Statewide system.--The term `statewide system' means 
     a statewide employment and training and literacy system that 
     includes programs authorized under titles II and III of this 
     Act and the Adult Education and Family Literacy Act.''.

         Subtitle B--State and Local Administrative Provisions

     SEC. 111. STATE ADMINISTRATIVE PROVISIONS.

       Part A of title I of the Job Training Partnership Act (29 
     U.S.C. 1511 et seq.) is amended to read as follows:

               ``PART A--STATE ADMINISTRATIVE PROVISIONS

     ``SEC. 101. STATE PLAN.

       ``(a) In General.--For a State to be eligible to receive an 
     allotment under title II or III, the Adult Education and 
     Family Literacy Act, or section 6 of the Wagner-Peyser Act 
     (29 U.S.C. 49e), the Governor of the State shall submit to 
     Secretaries, for consideration by the appropriate Secretary, 
     a single comprehensive State plan that provides a 3-year 
     strategy and policy guidance with respect to the Statewide 
     system, and programs authorized under the Wagner-Peyser Act 
     (29 U.S.C. 49 et. seq.), operated in the State. Such plan 
     shall meet the requirements of this section and section 102.
       ``(b) Contents.--The State plan shall include the 
     following:
       ``(1) A description of the collaborative process described 
     in section 102, including a description of the manner in 
     which the individuals and entitles involved in such process 
     collaborated in the development of the plan and will continue 
     to collaborate in carrying out the functions described in 
     section 102(c).
       ``(2) 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 employment and training 
     services in the State.
       ``(3)(A) A description of the State long-term goals for the 
     Statewide system.
       ``(B) An identification of the benchmarks that the State 
     will use to measure its progress toward meeting the goals 
     described in subparagraph (A) based on the core indicators of 
     performance described in section 154.
       ``(C) A description of how the goals and benchmarks will 
     ensure continuous improvement of the Statewide system and 
     make such system relevant and responsive to labor market, 
     skill, and literacy needs at the State and local levels.
       ``(4) An identification of local workforce development 
     areas in the State, including a description of the process 
     used for the designation of such areas.
       ``(5) An identification of criteria to be used by local 
     chief elected officials for the appointment of members of 
     local workforce development boards, consistent with the 
     provisions of section 122.
       ``(6)(A) A description of measures that will be taken by 
     the State to assure coordination and consistency and avoid 
     duplication among employment, training, and literacy programs 
     receiving assistance under this Act, and, at a minimum, 
     programs carried out under the Wagner-Peyser Act (29 U.S.C. 
     49 et seq.), the Rehabilitation Act of 1973 (20 U.S.C. 701 et 
     seq.), title I of the Personal Responsibility and Work 
     Opportunity Reconciliation Act of 1996, the Community 
     Services Block Grant Act, title V of the Older Americans Act 
     of 1965, the National and Community Service Act of 1990, and 
     programs carried out by the Veterans' Employment and Training 
     Service with funds received under section 4103 of title 38, 
     United States Code, including a description of common data 
     collection and reporting processes.
       ``(B) Information identifying how any funds that a State 
     receives through the allotments made under this Act 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.)) and other human resources programs to 
     maximize the effectiveness of such resources, and expand the 
     participation of business, industry, employees, and 
     individuals in the Statewide system.
       ``(7) A description of the process used by the State to 
     provide an opportunity for public comment, and input into 
     development of the plan, prior to submission of the plan.
       ``(8) A description of the within-State allocation formulas 
     development through the collaborative process pursuant to 
     sections 204(b)(2) and 313(b), through which the State will 
     distribute funds of local workforce development areas, 
     including--
       ``(A) a description of how the individuals and entities 
     involved in the collaborative process, including 
     representatives of the State legislature, determined the 
     factors for such formulas;
       ``(B) a description of how such individuals and entities 
     consulted with chief elected officials in local workforce 
     development areas throughout the State in determining such 
     formulas; and
       ``(C) assurances that such formulas will result in funds 
     being distributed equitably throughout the State, that no one 
     factors in such formulas receive disproportionate weighting, 
     and that such formulas protect local workforce development 
     areas from significant shifts in funding from year to year.
       ``(9)(A) With respect to employment and training programs 
     for disadvantaged youth authorized under title II, 
     information describing the State's strategy for providing 
     comprehensive services to disadvantaged youth, particularly 
     those youth who are recognized as having significant barriers 
     to employment, and a description of how the State intends to 
     use its State reserve funds (described in section 204(a)) to 
     serve areas in the State with high concentrations of 
     disadvantaged youth.
       ``(B) An assurance that each local workforce development 
     area will be allowed to determine the proportion of funds 
     allocated to such area under section 204(b)(2) that will be 
     used to provide summer employment opportunities and year-
     round disadvantaged youth activities, respectively.
       ``(10) With respect to employment and training programs for 
     adults and dislocated workers authorized under title III, 
     information--
       ``(A) describing the employment and training activities 
     that will be carried out with

[[Page H2816]]

     the funds received by the State through the allotments made 
     under section 312, including a description of how the State 
     will provide rapid response assistance to dislocated workers 
     from funds reserved under section 313(a)(2);
       ``(B) describing the strategy of the State (including the 
     timeframe for such strategy) for development of a fully 
     operational statewide full service employment and training 
     delivery system as described in section 123, including the 
     steps that the State will take over the 3 years covered by 
     the plan, working with local workforce development boards, to 
     provide information to individuals through the full service 
     employment and training delivery system on the quality of 
     employment, training, and literacy services;
       ``(C) describing the procedures the State will use, working 
     with local workforce development boards, to identify eligible 
     providers of training services described in section 314(c), 
     as required under section 124; and
       ``(D) describing how the State will serve the employment 
     and training needs of dislocated workers (including displaced 
     homemakers), economically disadvantaged individuals 
     (including welfare recipients), individuals training for 
     nontraditional equipment, and other individuals with multiple 
     barriers to employment (including older workers and 
     individuals with disabilities).
       ``(11) With respect to adult education and literacy 
     activities authorized under part A of the Adult Education and 
     Family Literacy Act--
       (A) a description of the assessment that will be made to 
     determine the adult education and family literacy needs of 
     the State;
       ``(B) a description of the adult education and literacy 
     activities that will be carried out with any funds received 
     under such part, including activities carried out under 
     section 314(a) of such Act;
       ``(C) a description of how the adult education and literacy 
     activities that will be carried out with any funds received 
     under such part will be integrated with other adult 
     education, career development, and employment and training 
     activities in the State or outlying area of the eligible 
     agency;
       ``(D) a description of how the eligible agency annually 
     will evaluate the effectiveness of the adult education and 
     literacy activities that are carried out with any funds 
     received under such part;
       ``(E) an assurance that any funds received under such part 
     will not be expended for any purpose other than the 
     activities described in sections 313 and 314 of such Act;
       ``(F) an assurance that the eligible agency will expend any 
     funds received under such part only in a manner consistent 
     with the fiscal requirements in section 315 of such Act;
       ``(G) an assurance that the eligible agency will award 
     grants under such part to providers who offer flexible 
     schedules and necessary support services (such as child care 
     and transportation) to enable individuals, including 
     individuals with disabilities or other special needs to 
     participate in adult education and literacy activities; and
       ``(H) a description of the steps the State will take to 
     ensure direct and equitable access, as stipulated in section 
     313(c)(2) of the Adult Education and Family Literacy Act.
       ``(12) With respect to programs authorized under the 
     Wagner-Peyser Act (29 U.S.C. 49 et seq.), the plan 
     information required under section 8 of such Act.
       ``(c) Plan Submission.--A State plan submitted to the 
     Secretaries under this section shall be approved by the 
     appropriate Secretary unless such Secretary makes a written 
     determination, within 90 days after receiving the plan, that 
     the plan is inconsistent with the specific provisions of this 
     Act.
       ``(d) 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 (9)(A), 
     paragraph (10), and paragraph (12) of subsection (b).
       ``(2) Eligible agency.--The eligible agency for adult 
     education and literacy in a State shall have final authority 
     to determine the content of the portion of the State plan 
     described in paragraph (11) of subsection (b).
       ``(e) Modifications to Plan.--A State may submit 
     modifications to a State plan in accordance with the 
     requirements of this section and section 102 as necessary 
     during the 3-year period covered by the plan.

     ``SEC. 102. COLLABORATIVE PROCESS.

       ``(a) In General.--A State shall use a collaborative 
     process in the development of the State plan described in 
     section 101 and in carrying out the functions described under 
     subsection (c). Such collaborative process shall be carried 
     out by, at a minimum, the following individuals and entities 
     (who overall, represent diverse regions of the State, 
     including urban, rural, and suburban areas):
       ``(1) the Governor;
       ``(2) representatives of the State legislature;
       ``(3) 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 adult education 
     and literacy providers);
       ``(D) postsecondary institutions (including community and 
     technical colleges);
       ``(E) organizations representing individuals served by 
     programs authorized under this Act (including community-based 
     organizations);
       ``(F) organizations serving individuals participating in 
     programs authorized under this Act and the Adult Education 
     and Family Literacy Act;
       ``(G) parents; and
       ``(H) employees (which may include labor);
       ``(4) the lead State agency official or officials for--
       ``(A) employment security;
       ``(B) job training;
       ``(C) the State educational agency;
       ``(D) the eligible agency for vocational education;
       ``(E) the eligible agency for adult education and literacy;
       ``(F) the State agency responsible for post-secondary 
     education;
       ``(G) the State agency responsible for welfare; and
       ``(H) the State agency responsible for vocational 
     rehabilitation, and where applicable, the State agency 
     providing vocational rehabilitation program activities for 
     the blind;
       ``(5) such other State agency officials, including 
     officials responsible for economic development, as the 
     Governor may designate; and
       ``(6) the representative of the Veterans' Employment and 
     Training Service assigned to the State under section 4103 of 
     title 38, United States Code.
       ``(b) Clarification.--For purposes of complying with 
     subsection (a), a State may use any State collaborative 
     process (including a council, board, State Human Resource 
     Investment Council established under section 103, or a 
     similar entity) that meets or is conformed to meet the 
     requirements of such subsection.
       ``(c) Additional Functions of the Collaborative Process.--
     In addition to development of the State plan, the individuals 
     and entities described in subsection (a) shall collaborate 
     in--
       ``(1) the designation of local workforce areas as required 
     under section 121;
       ``(2) the development of allocation formulas for the 
     distribution of funds to local workforce development areas 
     for programs authorized under title II and title III;
       ``(3) the development of the State goals and benchmarks as 
     required under part C of this title, including the continued 
     updating of such goals and benchmarks;
       ``(4) the provision of management guidance and review for 
     all programs in the State, including review of the operation 
     of programs conducted in each local workforce development 
     area, and the availability, responsiveness, and adequacy of 
     State services, and make recommendations to the Governor, the 
     State legislature, appropriate chief elected officials, local 
     workforce development boards, and service providers 
     throughout the State regarding the findings of such review;
       ``(5) the continued development of linkages between 
     employment, training, literacy, and other human resource and 
     workforce preparation programs in the State;
       ``(6) comment at least once annually on the measures taken 
     pursuant to section 113(b)(14) of the Carl D. Perkins 
     Vocational Education Act; and
       ``(7) review plans of all State agencies providing 
     employment, training, literacy, and related services, and 
     provide comments and recommendations to the Governor, the 
     State legislature, the State agencies, and the appropriate 
     federal agencies on the relevancy and effectiveness of 
     employment, training, literacy, and related delivery systems 
     in the State.''.

     SEC. 112. LOCAL ADMINISTRATIVE PROVISIONS.

       Part B of title I of the Job Training Partnership Act (29 
     U.S.C. 1531 et seq.) is amended by striking sections 121 
     through 123 and inserting the following:

     ``SEC. 121. LOCAL WORKFORCE DEVELOPMENT AREAS.

       ``(a) Designation of areas.--
       ``(1) In general.--Except as provided in subsection (b), 
     and consistent with paragraph (2), a State that desires to 
     receive a grant under title II or title III shall, through 
     the collaborative process established under section 102 and 
     after consultation with local chief elected officials, and 
     after consideration of comments received through the public 
     comment process as described in section 101(b)(7) of the 
     State plan, designate local workforce development areas 
     within the State that are consistent with labor market areas, 
     or a substantial portion of a labor market area, and that 
     take into consideration the following:
       ``(A) Units of general local government.
       ``(B) Geographic areas served by local educational agencies 
     and intermediate educational agencies.
       ``(C) Geographic areas served by postsecondary institutions 
     and area vocational education schools.
       ``(D) Service delivery areas established under section 101 
     of this Act (as such section was in effect on the day before 
     the date of the enactment of the Employment, Training, and 
     Literacy Enhancement Act of 1997).
       ``(E) The distance that individuals will need to travel to 
     receive services.
       ``(2) Automatic designation.--The Governor shall approve 
     any request for designation as a workforce development area 
     from any unit of general local government with a population 
     of 500,000 or more.
       ``(b) Small States.--Any State determined to be eligible to 
     receive a minimum allotment under section 203(b)(2)(D) or 
     paragraph (1)(B)(iv) or paragraph (2)(B)(iv) of section 
     312(b) may designate itself, through the collaborative 
     process established pursuant to section 102, and after 
     consultation with local

[[Page H2817]]

     chief elected officials, and consideration of comments 
     received through the public comment process described in 
     section 101(b)(7) of the State plan, as a single State 
     workforce development area for purposes of this Act.

     ``SEC. 122. 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 (hereinafter referred to as the `local board'), 
     reflecting business and community interests in employment, 
     training, and other workforce preparation activities.
       ``(b) Membership.--
       ``(1) State criteria.--The Governor of the State, through 
     the collaborative process described in section 102, shall 
     establish criteria for use by local chief elected officials 
     in the local workforce development areas for appointment of 
     members of the local boards in such local areas in accordance 
     with the requirements of paragraph (2).
       ``(2) Composition.--(A) Such criteria shall require at a 
     minimum, that the membership of each local board consist of--
       ``(i) a majority of members who are representatives of 
     business and industry in the local workforce development 
     area, who are owners of businesses, chief executives or chief 
     operating officers of private business, and other business 
     executives with optimum policymaking authority in local 
     businesses, appointed from among individuals nominated by 
     local business organizations and trade associations;
       ``(ii) representatives of local educational entities, 
     including representatives of local educational agencies, 
     local school boards, post-secondary educational institutions 
     (including representatives of community colleges), and 
     representatives of providers of adult education and literacy 
     services, where such schools, institutions, educators, or 
     providers, as appropriate, exist, selected from among 
     individuals nominated by regional or local educational 
     agencies, institutions, or organizations representing such 
     individuals or entities; and
       ``(iii) representatives of community-based organizations 
     (including, as appropriate, a community-based organization 
     that provides direct job training and placement services to 
     individuals with disabilities), employees (which may include 
     labor), and other representatives of the public who may 
     include program participants, parents, individuals with 
     disabilities, older workers, veterans, or organizations 
     serving such individuals, as nominated to the board by 
     regional or local agencies, institutions, or organizations 
     representing such individuals or entities.
       ``(B) In addition, the membership of each local board may 
     consist of representatives of local welfare agencies, 
     economic development agencies, and the local employment 
     service system.
       ``(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 is authorized to biennially 
     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 disadvantaged youth activities 
     carried out in the local workforce development area have 
     met expected levels of performance with respect to the 
     local benchmarks negotiated pursuant to subsection 
     (d)(6)(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.--
       ``(A) Fiscal noncompliance.--Notwithstanding paragraph (2), 
     the Governor may decertify a local board if it is determined 
     as a result of financial and compliance audits that there is 
     a substantial violation of a specific requirement under this 
     Act and corrective action has not been taken, in accordance 
     with section 164. If the Governor decertifies a local board 
     for a local workforce development area under this 
     subparagraph, the Governor may require that a new local board 
     be appointed and certified for the local workforce 
     development area pursuant to a reorganization plan developed 
     by the Governor under section 164(b)(1) and in accordance 
     with the criteria established under subsection (b).
       ``(B) Nonperformance.--Notwithstanding paragraph (2), the 
     Governor may decertify a local board if a local workforce 
     development area fails to meet the local benchmarks 
     established pursuant to section 153(b) for such local area 
     for two consecutive program years (in accordance with section 
     156(b)(2)). If the Governor decertifies a local board for a 
     local workforce development area under this subparagraph, the 
     Governor may require that a new local board be appointed and 
     certified for the local area pursuant to a reorganization 
     plan developed by the Governor under section 156(b)(2) and in 
     accordance with the criteria established under subsection 
     (b).
       ``(4) Single state area.--Notwithstanding subsection (b) 
     and paragraphs (1) and (2), if a State described in section 
     121(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 Act, the Governor may designate the 
     individuals and entities involved in the collaborative 
     process described in section 105 to carry out 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, in partnership with 
     the chief local elected official, shall develop and submit to 
     the Governor, for approval, a comprehensive 3-year strategic 
     local plan. The local plan shall be consistent with the State 
     goals and State plan described in section 101.
       ``(B) Contents.--The local plan shall include--
       ``(i) an identification of the workforce development needs 
     of local industries, job seekers, and workers;
       ``(ii) a description of the disadvantaged youth activities 
     and the employment and training activities for adults and 
     dislocated workers to be carried out in the local workforce 
     development area as required under titles II and III, that, 
     with activities authorized under the Wagner-Peyser Act (29 
     U.S.C. 49 et seq.), will contribute to the coherent 
     delivery of employment, training and workforce preparation 
     activities in the local area;
       ``(iii) a description of the local benchmarks negotiated 
     with the Governor pursuant to paragraph (6)(A), to be used by 
     the local board for measuring the performance of the local 
     administrative entity (where appropriate), eligible providers 
     of services authorized under titles II and III, and the 
     performance of the full service employment and training 
     delivery system in the local workforce development area;
       ``(iv) a description of the local full service employment 
     and training delivery system to be established or designated 
     in the local workforce development area, including--
       ``(I) a description of the process negotiated with the 
     Governor pursuant to paragraph (6)(B) that the local board 
     will use to designate or certify full service eligible 
     providers in the local workforce development area, which 
     ensures that the most effective and efficient providers will 
     be chosen;

         ``(II) a description of how the local board will ensure 
     the continuous improvement of such full service eligible 
     providers and that such providers will continue to meet the 
     labor market needs of local employers and participants; and

       ``(III) an identification of the roles of individual 
     employment, training, and other human resources programs, as 
     determined appropriate, including programs authorized by the 
     Wagner-Peyser Act (20 U.S.C. 49 et seq.), in carrying out the 
     functions of the full service employment and training 
     delivery system, including a description of the funding 
     sources to be used in the operation of the full service 
     employment and training system;
       ``(v) an identification of the administrative entity 
     designated by the local board in accordance with paragraph 
     (5);
       ``(vi) a description of the steps the local board will take 
     to work with local educational agencies, postsecondary 
     educational institutions (including community colleges, where 
     applicable), vocational educators, providers of adult 
     education and literacy services, and other representatives of 
     the educational community to address local employment, 
     education, and training needs, including a description of 
     linkages established with such individuals and entities to 
     enhance the provision of services, including supportive 
     services, and avoid duplication;
       ``(vii) a description of the process that will be used by 
     the local board to fully involve representatives of the local 
     community, including community-based organizations with 
     experience in serving disadvantaged youth, the local 
     education community (including vocational educators and 
     teachers), parents, youth, local law enforcement agencies, 
     and representatives of business and employees (which may 
     include labor) in the development and implementation of 
     disadvantaged youth programs in the local workforce 
     development area, including a description of the process used 
     (involving the individuals and

[[Page H2818]]

     organizations described in this clause) to ensure that the 
     most effective and efficient providers are chosen to carry 
     out the activities authorized under title II; and
       ``(viii) such other information as the Governor may 
     require.
       ``(2) Selection of providers.--
       ``(A) Selection of full service providers.--Consistent with 
     section 123 and the agreement negotiated with the Governor 
     under paragraph (6)(B)(i), the local board is authorized to 
     designate or certify full service eligible providers, and to 
     terminate for cause, the eligibility of such providers.
       ``(B) Selection of disadvantaged youth providers.--
     Consistent with section 207, the local board is authorized to 
     award grants on a competitive basis to eligible providers of 
     disadvantaged youth activities in the local workforce 
     development area.
       ``(3) Identification of eligible providers of training 
     services.--Consistent with section 124, the local board is 
     authorized to work in partnership with the Governor 
     concerning the identification of eligible providers of 
     training services described in section 314(c) in the local 
     workforce development area.
       ``(4) Budget and program oversight.--
       ``(A) Budgeting.--
       ``(i) In general.--The local workforce development board 
     shall develop a budget for the purpose of carrying out local 
     programs established under titles II and III and section 123.
       ``(ii) Approval of budget.--Such budget shall be subject to 
     the approval of the chief elected official or officials in 
     the local workforce development area.
       ``(B) Program oversight.--The local workforce development 
     board, in partnership with the chief elected official or 
     officials in the local workforce development area, shall 
     conduct oversight of the programs established under titles II 
     and III and section 123.
       ``(5) Administration.--
       ``(A) Designation of administrative entity.--
       ``(i) In general.--The local workforce development board 
     may designate itself as the administrative entity for receipt 
     and disbursement of funds made available for carrying out 
     programs authorized under title II and title III of this Act, 
     or the local board may designate an administrative entity 
     (which may be the State through a mutual agreement between 
     the local board and the State), for the purpose of receipt 
     and disbursement of such funds.
       ``(ii) Additional fiscal responsibilities .--Each 
     administrative entity shall be responsible for the 
     distribution of funds and shall have responsibility to take 
     action against its subcontractors, subgrantees, and other 
     recipients to eliminate abuses in the programs being carried 
     out in the local workforce development area and to prevent 
     any misuse of funds by subcontractors, subgrantees, and other 
     recipients.
       ``(B) Staff; grants and other contributions.--The local 
     board may employ its own staff, independent of local programs 
     and service providers, and may solicit or accept grants and 
     contributions from sources other than from this Act.
       ``(C) Prohibition on direct provision of services.--
       ``(i) In general.--Except as provided in clause (ii), a 
     local board or employees of such board may not directly 
     provide services under programs established under this Act.
       ``(ii) Waiver.--The Governor of the State in which the 
     local board is located may grant to the local board a written 
     waiver of the prohibition under clause (i) where necessary to 
     improve performance or to provide a full array of services in 
     the local area as may be particularly necessary in rural 
     areas.
       ``(D) Conflict of interest.--A member of a local board may 
     not--
       ``(i) 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
       ``(ii) engage in any other activity determined by the 
     Governor to constitute a conflict of interest.
       ``(6) Negotiations.--
       ``(A) Local benchmarks.--The local board, the local chief 
     elected official, and the Governor shall negotiate and reach 
     agreement on local benchmarks designed to meet the State 
     goals described in the State plan under section 101 for the 
     local workforce development area. In determining such 
     benchmarks, the Governor, the local chief elected official, 
     and the local board shall take into account the State 
     adjusted benchmarks described in section 153(a) with respect 
     to programs authorized under titles II and III, and specific 
     economic, demographic, and other characteristics of the 
     populations to be served in the local workforce development 
     area.
       ``(B) Local delivery of services.--
       ``(i) In general.--The local board, the local chief elected 
     official, 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 full service 
     eligible providers (as described in section 123(c)) in the 
     local workforce development area, including, consistent with 
     State statute, a determination of the role of providers of 
     activities authorized under the Wagner-Peyser Act (29 U.S.C. 
     49 et seq.) in the full service delivery of services in the 
     local workforce development area; and
       ``(II) the continued role of the local board and the local 
     elected official in conducting oversight with respect to full 
     service eligible providers that are providers of activities 
     authorized under the Wagner-Peyser Act (29 U.S.C. 49 et 
     seq.).
       ``(ii) Established full service employment and training 
     delivery system.--Notwithstanding this subsection and section 
     123(c), if a full service employment and training delivery 
     system 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 full service 
     employment and training delivery system 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 such full service employment 
     and training delivery system for purposes of this 
     subparagraph.
       ``(e) Sunshine Provision.--
       ``(1) In general.--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 
     full service employment and training eligible providers, the 
     award of grants to eligible providers of disadvantaged youth 
     activities, and upon request, minutes of formal meetings of 
     the local board.
       ``(2) Local plan.--Prior to the submission of the local 
     plan to the Governor, under subsection (d)(1)(D)(ii), the 
     local board shall make such plan available for review and 
     comment to--
       ``(A) appropriate community-based organizations and local 
     educational and other public agencies in the local workforce 
     development area;
       ``(B) local business organizations and representatives of 
     employees in the local workforce development area; and
       ``(C) the general public through such means as public 
     hearings and local news media.

     ``SEC. 123. FULL SERVICE EMPLOYMENT AND TRAINING DELIVERY 
                   SYSTEM.

       ``(a) In General.--There shall be established in a State 
     that receives an allotment under section 312, a full service 
     employment and training delivery system that--
       ``(1) shall provide the core services described in 
     subsection (d), including the information described in part E 
     of title IV and labor exchange services authorized under the 
     Wagner-Peyser Act (29 U.S.C. 49 et seq.);
       ``(2) shall provide access to the activities carried out 
     under subsection (e), if any; and
       ``(3) shall provide access to intensive and training 
     services described in section 314, including serving as the 
     point of distribution of skill grants for training services 
     to participants in accordance with section 314(c)(6)(A).
       ``(b) Access to Delivery of Services.--
       ``(1) In general.--The State's full service employment and 
     training delivery system shall provide individuals and 
     employers with access to the services described in subsection 
     (a) through a network of eligible providers that assures 
     participants that such services will be available, regardless 
     of where the participants initially enter the system. At a 
     minimum, such services shall be available--
       ``(A) through a network of full service employment and 
     training delivery centers, established in all local workforce 
     development areas in the State, that provide all of the 
     services described in subsection (a); or
       ``(B) at not less than one full service employment and 
     training delivery center in each local workforce development 
     area in the State that provides all of the services 
     described in subsection (a), supplemented with multiple 
     affiliated sites that provide one or more of such services 
     and are linked through electronic and technological access 
     points.
       ``(2) Specialized centers.--Of the full service employment 
     and training delivery centers or affiliated sites described 
     in paragraph (1), such centers or sites may have a 
     specialization in addressing special needs, such as the needs 
     of dislocated workers.
       ``(c) Eligibility for Designation.--Any entity or 
     consortium of entities located in a local workforce 
     development area may be designated or certified by the local 
     workforce development board (in accordance with section 
     122(d)(2)(A)) through a competitive process, or through an 
     agreement reached between the local board and a consortium of 
     entities, to operate a full service employment and training 
     delivery center or to participate as an affiliated site in 
     the full service employment and training delivery system. 
     Such entities shall be known as `full service eligible 
     providers' and may include--
       ``(1) institutions of higher education;
       ``(2) local employment service offices established under 
     the Wagner-Peyser Act (29 U.S.C. 49 et seq.);
       ``(3) private, nonprofit organizations (including 
     community-based organizations);
       ``(4) private for-profit entities;
       ``(5) agencies of local government; and
       ``(6) other interested organizations and entities of 
     demonstrated effectiveness, including local chambers of 
     commerce and other business organizations, consistent with 
     State criteria as described in the State plan under section 
     101.
       ``(d) Core Services.--Funds made available to local 
     workforce development areas under section 313(b), in addition 
     to funds made available under the Wagner-Peyser Act, part E 
     of title IV, and other related programs, shall be used to 
     provide core services, which shall be available to all 
     individuals through the full service employment and training 
     delivery system and shall, at a minimum, include--

[[Page H2819]]

       ``(1) outreach, intake (which may include worker 
     profiling), and orientation to the information and other 
     services available through the full service employment and 
     training delivery system;
       ``(2) initial assessment of skill levels, aptitudes, 
     abilities, and supportive service needs;
       ``(3) job search and placement assistance, and where 
     appropriate, career counseling;
       ``(4) provision of accurate information relating to local, 
     regional, and national labor markets, including--
       ``(A) job vacancy listings in such markets; and
       ``(B) information relating to local occupations in demand 
     and the earnings and skill requirements for such occupations;
       ``(5) provision of accurate information relating to the 
     quality and availability of employment, training, and 
     literacy activities authorized under titles II and III of 
     this Act and the Adult Education and Family Literacy Act, and 
     of vocational rehabilitation program activities as 
     appropriate, and referral to such activities;
       ``(6) provision of information relating to unemployment 
     compensation, publicly funded employment 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 employment, training, literacy, and other 
     workforce preparation activities;
       ``(7) soliciting and accepting job orders submitted by 
     employers in the local workforce development area, and 
     screening and referring applicants in accordance with such 
     orders;
       ``(8) dissemination of lists of eligible training providers 
     and performance information regarding such providers in 
     accordance with section 124; and
       ``(9) any additional performance information with respect 
     to the full service employment and training delivery system 
     in the local workforce development area.
       ``(e) Permissible Services.--Funds made available to local 
     workforce development areas under section 313(b) may be used 
     to contribute to, through the full service employment and 
     training delivery system--
       ``(1) co-location of services related to employment, 
     training, and literacy activities, such as unemployment 
     insurance, vocational rehabilitation program activities, 
     veterans' employment services, programs authorized under the 
     Wagner-Peyser Act (29 U.S.C. 49 et seq.), employment-related 
     services for welfare recipients, or other public assistance 
     activities;
       ``(2) customized screening and referral of qualified 
     participants to employment; and
       ``(3) customized employment-related services to employers 
     on a fee-for-service basis.

     ``SEC. 124. IDENTIFICATION OF TRAINING PROVIDERS.

       ``(a) Eligibility Requirements.--
       ``(1) In general.--Except as provided in subsection (e), to 
     be identified as an eligible provider of training services 
     under title III and to receive funds made available for the 
     provision of training services described in section 314(c) 
     (referred to in this section as `training services'), a 
     provider of such services shall meet the requirements of this 
     section.
       ``(2) Postsecondary educational institution.--Subject to 
     the provisions of this section, a postsecondary educational 
     institution shall automatically be eligible to provide 
     training services under title III for programs that are 
     eligible to participate in title IV of the Higher Education 
     Act of 1965.
       ``(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.--
       ``(i) In general.--The Governor shall establish a procedure 
     for use by local workforce development boards in 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.
       ``(ii) Factors.--In developing such procedure, the 
     Governor--
       ``(I) shall solicit and take into consideration the 
     recommendations of local workforce development boards and 
     providers of training services within the State; and
       ``(II) shall take into consideration--
       ``(aa) the specific economic, geographic, and demographic 
     factors in the local areas in which eligible providers are 
     located; and
       ``(bb) the characteristics of the populations served by the 
     eligible providers, including the demonstrated difficulties 
     in serving such populations, where applicable.
       ``(B) Levels of performance.--At a minimum, the procedure 
     described in subparagraph (A) shall require such a provider 
     to meet minimum acceptable levels of performance based on 
     verifiable program-specific performance information described 
     in subsection (b) and submitted to the State agency 
     designated under subsection (c), as required under paragraphs 
     (2) and (3) of subsection (c).
       ``(b) Performance Information.--
       ``(1) Required information.--Pursuant to subsection (c)(2), 
     to be eligible to provide training services under title III, 
     a provider shall submit information on--
       ``(A) program completion rates for individuals in the 
     applicable program conducted by the provider;
       ``(B) the percentage of individuals in the applicable 
     program who obtain employment, which may also include 
     information specifying the percentage of individuals who 
     obtain employment in an occupation related to the program 
     conducted;
       ``(C) the earnings at placement of individuals who complete 
     the program; and
       ``(D) for literacy providers or providers of integrated 
     education and training services, the success rate of the 
     applicable program in raising the literacy levels of 
     individuals in skill areas that are considered important for 
     successful participation in training and employment.
       ``(2) Additional information.--Subject to paragraph (3), in 
     addition to the performance information described in 
     paragraph (1), the Governor may require that a provider 
     described in this paragraph submit such other performance 
     information as the Governor determines to be appropriate, 
     which many include information relating to--
       ``(A) the retention in employment and the subsequent 
     earnings of the individuals who complete the applicable 
     program;
       ``(B) where appropriate, the rates of licensure or 
     certification of individuals who complete the program;
       ``(C) the percentage of individuals who complete the 
     program who attain industry-recognized occupational skills in 
     the subject, occupation, or industry for which training is 
     provided, where applicable; and
       ``(D) the adequacy of space, staff, equipment, 
     instructional materials, and student support services offered 
     by the provider through a program conducted by the provider.
       ``(3) Conditions.--
       ``(A) In general.--If the Governor requests additional 
     information pursuant to paragraph (2) that imposes 
     extraordinary costs in providers, the Governor shall provide 
     access to cost-effective methods for the collection of such 
     information or provide additional resources to assist 
     providers in the collection of such information from funds 
     made available under section 313(a).
       ``(B) Transition period for performance-based 
     information.--For program years 1999 and 2000, the 
     performance-based information to be submitted by a provider 
     under this subsection shall only be required to be provided 
     relating to the performance of participants assisted under 
     title III in lieu of all; individuals participating in the 
     program of the provider. Nothing in this subparagraph shall 
     be construed to prohibit the submission of performance-based 
     information for all individuals participating in the program 
     of the provider as soon as is practicable prior to program 
     year 2001 and each provider shall be encouraged to submit 
     such information.
       ``(c) Administration.--
       ``(1) Designation.--The Governor shall designate a State 
     agency to collect and disseminate the performance information 
     described in subsection (b) and to carry out other duties 
     described in this subsection.
       ``(2) Submission.--A provider described in subsection (a) 
     shall submit the performance information described in 
     subsection (b) 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, if such 
     information is substantially similar to the information 
     required under subsection (b).
       ``(3) List of eligible providers.--
       ``(A) In general.--The designated State agency shall 
     compile a list of eligible providers accompanied by the 
     performance information described in subsection (b) 
     consisting of--
       ``(i) providers determined to be automatically eligible 
     subject to subsection (a)(2); and
       ``(ii) providers determined to be eligible by local 
     workforce development boards, subject to subsection (a)(3).
       ``(B) Availability.--The designated State agency shall 
     disseminate such lists and information to the full service 
     employment and training delivery system and to local boards. 
     Such list and information shall be made widely available to 
     participants in employment and training programs authorized 
     under title III and others through the full service 
     employment and training delivery system described in section 
     123.
       ``(d) 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) Noncompliance.--If the designated State agency, or 
     the local workforce development board working through the 
     State agency, determines that an eligible provider under 
     subsection (a) substantially violates any requirement under 
     this Act, the agency,

[[Page H2820]]

     or the local board through the State agency, may terminate 
     the eligibility of such provider to receive funds described 
     in subsection (a) for such program or take such other action 
     as the agency or local board determines to be appropriate.
       ``(3) Nonperformance.--
       ``(A) Termination for nonperformance.--If the designated 
     State agency, or the local workforce development board 
     working through the State agency, determines that an eligible 
     provider under subsection (a) substantially fails to meet 
     performance criteria established by the Governor, the agency, 
     or the local board working through the State agency, may 
     terminate the eligibility of such provider.
       ``(B) Factors.--In establishing the performance criteria 
     described under subparagraph (A)(i), the Governor shall--
       ``(i) solicit and take into consideration the 
     recommendations of local workforce development boards and 
     providers of training services within the State; and
       ``(ii) take into consideration--
       ``(I) the specific economic, geographic, and demographic 
     factors in the local areas in which eligible providers are 
     located; and
       ``(II) the characteristics of the populations served by the 
     eligible providers, including the demonstrated difficulties 
     in serving such populations, where applicable.
       ``(4) 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--
       ``(A) shall terminate the automatic eligibility of the 
     provider under subsection (a)(2); and
       ``(B) shall require the provider to meet the requirements 
     of subsection (a)(3) to be eligible to receive funds as 
     described in subsection (a).
       ``(5) Repayment.--A 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.
       ``(6) Appeal.--The Governor shall establish a procedure for 
     an eligible provider to appeal a determination by the local 
     board or the designated state agency that results in the 
     denial or 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.
       ``(7) Construction.--This subsection shall be construed to 
     supplement, but not supplant, other civil and criminal 
     remedies and penalties.
       ``(e) On-The-Job Training Exception.--
       ``(1) In general.--Providers of on-the-job training, and 
     apprenticeship programs registered in accordance with the 
     National Apprenticeship Act, shall not be subject to the 
     requirements of subsection (a), (b), (c), or (d).
       ``(2) Collection and dissemination of information.--A full-
     service 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 123, as appropriate.''.

               Subtitle C--Program and Fiscal Provisions

                     CHAPTER 1--GENERAL PROVISIONS

     SEC. 121. GENERAL PROGRAM REQUIREMENTS.

       (a) Employment and Training Opportunities.--Section 141(a) 
     of the Job Training Partnership Act (29 U.S.C. 1551(a)) is 
     amended--
       (1) by striking ``and shall make efforts'' and all that 
     follows and inserting a period; and
       (2) by adding at the end the following: ``In addition, 
     efforts shall be made to develop programs which contribute to 
     occupational development, upward mobility, development of new 
     careers, and overcoming sex-stereotyping in occupations 
     traditional for the other sex.''.
       (b) Relocation.--Section 141(c) of such Act (29 U.S.C. 
     1551(c)) is amended to read as follows:
       ``(c) Relocation.--
       ``(1) Prohibition on use of funds to encourage or induce 
     relocation.--No funds provided under title II, III, or IV 
     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.
       ``(2) Prohibition on use of funds for customized or skill 
     training and related activities after relocation.--No funds 
     provided under title II, III, or IV 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.
       ``(3) Repayment.--If the Secretary of Labor determines that 
     a violation of paragraph (1) or (2) has occurred, the 
     Secretary shall require the State that has violat4ed such 
     paragraph to repay to the United States an amount equal to 
     the amount expended in violation of such paragraph.''.
       (c) Training for Occupations in Demand.--Subsection (d) of 
     section 141 of such Act (29 U.S.C. 1551(d)) is hereby 
     repealed.
       (d) Agreements Among Areas Relating to Education, Training, 
     and Employment of Participants.--Section 141(e) of such Act 
     (29 U.S.C. 1551(e)) is amended--
       (1) by striking paragraph (1); and
       (2) in paragraph (2)--
       (A) by striking ``(2)'';
       (B) by striking ``service delivery area'' each place it 
     appears and inserting ``local workforce development area''; 
     and
       (C) in the second sentence--
       (i) by striking ``private industry council'' and inserting 
     ``local workforce development board''; and
       (ii) by striking ``section 104'' and inserting ``section 
     122(d)(1)''.
       (e) Prohibition on Certain Votes.--Subsection (f) of 
     section 141 of such Act (29 U.S.C. 1551(f)) is hereby 
     repealed.
       (f) Payments to Employers for On-The-Job-Training.--Section 
     141(g) of such Act (29 U.S.C. 1551(g)) is amended--
       (1) by striking paragraphs (1) through (3); and
       (2) in paragraph (4)--
       (A) by striking ``(4)'';
       (B) by striking ``In accordance with regulations issued by 
     the Secretary, on -the-job training contracts'' and inserting 
     ``On-the-job training contracts''; and
       (C) by striking ``with wages and employment benefits'' and 
     all that follows and inserting a period.
       (g) Duplicate Facilities or Services.--Section 141(h) of 
     such Act (29 U.S.C. 1551(h)) is amended to read as follows:
       ``(h)(1) Upon the approval of the Governor, real property 
     in which, as of July 1, 1998, equity has resulted from funds 
     provided under title III of the Social Security Act, section 
     903(c) of such Act (commonly referred to as the `Reed Act'), 
     or the Wagner-Peyser Act (29 U.S.C. 49 et seq.) may be used 
     for the purposes of a full service employment and training 
     delivery center.
       ``(2) Unless otherwise provided in a plan approved pursuant 
     to section 101, subsequent to the commencement of the use of 
     the property described in paragraph (1) for the purposes of a 
     full service employment and training delivery center, funds 
     provided under the provisions of law described in paragraph 
     (1) may only be used to acquire further equity in such 
     property, or to pay operating and maintenance expenses 
     relating to such property in proportion to the extent of the 
     use of such property attributable to the activities 
     authorized under such provisions of law.''.
       (h) Responsibilities of Administrative Entities.--Section 
     141(i) of such Act (29 U.S.C. 1551(i)) is hereby repealed.
       (i) Prohibition on Certain Subsidized Employment.--Section 
     141(k) of such Act (29 U.S.C. 1551(k)) is hereby repealed.
       (j) Consultation Requirements.--Section 141(n) of such Act 
     (29 U.S.C. 1551(n)) is amended--
       (1) by striking ``private industry councils'' each place it 
     appears and inserting ``local workforce development boards'';
       (2) by striking ``councils'' and inserting ``boards'';
       (3) by striking ``service delivery area'' each place it 
     appears and inserting ``local workforce development area''; 
     and
       (4) by striking ``this Act'' each place it appears and 
     inserting ``title II or title III''.
       (k) Prohibition on Use of Funds for Public Service 
     Employment.--Section 141(p) of such Act (29 U.S.C. 1551(p)) 
     is amended--
       (1) by striking ``part B of this title or part A or C of 
     title II'' and inserting ``this Act''; and
       (2) by inserting at the end before the period the 
     following: ``except as specifically authorized under this 
     Act''.
       (l) Prohibition on Use of Funds for Certain Economic 
     Activities.--Section 141(q) of such Act (29 U.S.C. 1551(p)) 
     is amended in the first sentence by inserting at the end 
     before the period the following: ``which are not directly 
     related to training or related services for eligible 
     individuals under this Act''.
       (m) Priority for Excess Property of the Department of 
     Defense.--Section 141(s) of such Act (29 U.S.C. 1551(s)) is 
     hereby repealed.
       (n) Prohibition on Entitlement to Service.--Section 141 of 
     such Act (29 U.S.C. 1551) is amended by adding at the end the 
     following:
       ``(s) Prohibition on Entitlement to Service.--Nothing in 
     this Act shall be construed to provide an individual with an 
     entitlement to a service under this Act.
       ``(t) Fee for Service Authority.--Services, facilities, and 
     equipment funded under titles II and III may be used, as 
     appropriate, on a fee for service basis, by employers in a 
     local workforce development area in order to provide 
     employment and training services to incumbent workers--
       ``(1) when such services, facilities, or equipment are not 
     in use for the provision of services for eligible program 
     participants under title II or title III, respectively;
       ``(2) if such use would not have an adverse affect on the 
     provision of services to eligible program participants under 
     title II or title III, respectively; and
       ``(3) if the income derived from such fees is used to carry 
     out the programs authorized under title II or title III, 
     respectively.''.

     SEC. 122. BENEFITS.

       Section 142(a) of the Job Training Partnership Act (29 
     U.S.C. 1552(a)) is amended--

[[Page H2821]]

       (1) by striking all that precedes paragraph (4) and 
     inserting the following:
       ``(a) Wages.--
       ``(1) In general.--Individuals in on-the-job training or 
     individuals employed in activities under this Act shall be 
     compensated at the same rates, including periodic increases, 
     as trainees or employees who are similarly situated in 
     similar occupations by the same employer and who have similar 
     training, experience and skills, and such rates shall be in 
     accordance with applicable law, but in no event less than the 
     higher of the rate specified in section 6(a)(1) of the Fair 
     Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) or the 
     applicable State or local minimum wage law.''; and
       (2) by redesignating paragraph (4) as paragraph (2).

     SEC. 123. LABOR STANDARDS.

       Section 143 of the Job Training Partnership Act (29 U.S.C. 
     1553) is amended to read as follows:

     ``SEC. 143. LABOR STANDARDS.

       ``(a) Limitations on Activities That Impact Wages of 
     Employees.--No funds provided under this title shall be used 
     to pay the wages of incumbent employees during their 
     participation in economic development activities provided 
     through the statewide system.
       ``(b) Displacement.--
       ``(1) Prohibition.--A participant in an activity authorized 
     under title II, III, or IV of this Act (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).
       ``(2) 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) Other Prohibitions.--A participant in a specified 
     activity shall not be employed in a job--
       ``(1) when any other individual is on layoff from the same 
     or any substantially equivalent job;
       ``(2) 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; or
       ``(3) which is created in a promotional line that will 
     infringe in any way upon the promotional opportunities of 
     currently employed individuals.
       ``(d) 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.
       ``(e) Employment Conditions.--Individuals in on-the-job 
     training or individuals employed in activities under this 
     Act, shall be provided benefits and working conditions at the 
     same level and to the same extent as other trainees or 
     employees working a similar length of time and doing the same 
     type of work.
       ``(f) Opportunity to Submit Comments.--Interested parties 
     shall be provided an opportunity to submit comments with 
     respect to training programs proposed to be funded under this 
     Act.''.

     SEC. 124. GRIEVANCE PROCEDURE.

       Section 144 of the Job Training Partnership Act (29 U.S.C. 
     1554) is amended to read as follows:

     ``SEC. 144. GRIEVANCE PROCEDURE.

       ``(a) In general.--Each State receiving an allotment under 
     this Act shall establish and maintain a procedure for 
     grievances or complaints alleging violations of the 
     requirements of this Act from participants and other 
     interested or affected parties. Such procedure shall include 
     an opportunity for a hearing and be completed within 60 days 
     of filing the complaint.
       ``(b) Investigation.--
       ``(1) In general.--The Secretary shall investigate an 
     allegation of a violation described in subsection (a) if--
       ``(A) a decision relating to such violation has not been 
     reached within 60 days after the date of the grievance or 
     complaint and either party appeals to the Secretary; or
       ``(B) a decision relating to such violation has been 
     reached within such 60 days and the party to which such 
     decision is adverse appeals such decision to the Secretary.
       ``(2) Additional Requirement.--The Secretary shall make a 
     final determination relating to an appeal made under 
     paragraph (1) no later than 120 days after receiving such 
     appeal.
       ``(c) Remedies.--Remedies shall be limited--
       ``(1) to suspension or termination of payments under this 
     Act;
       ``(2) to prohibition of placement of a participant with an 
     employer that has violated any requirements under this Act;
       ``(3) where applicable, to reinstatement of an employee, 
     payment of lost wages and benefits, and reestablishment of 
     other relevant terms, conditions and privileges of 
     employment; and
       ``(4) where appropriate, to other equitable relief.''.

     SEC. 125. IDENTIFICATION OF ADDITIONAL IMPOSED REQUIREMENTS.

       Section 124 of the Job Training Partnership Act (29 U.S.C. 
     1534) is amended--
       (1) by redesignating such section as section 146 of such 
     Act; and
       (2) by inserting such section after section 145 of such 
     Act.

     SEC. 126. AUTHORITY OF STATE LEGISLATURE.

       Section 126 of the Job Training Partnership Act (29 U.S.C. 
     1536) is amended--
       (1) by adding at the end ``Any funds received by a State 
     under title II or III of this Act shall be subject to 
     appropriation by the State legislature, consistent with the 
     terms and conditions required under this Act.'';
       (2) by redesignating such section as section 147 of such 
     Act; and
       (3) by inserting such section after section 146 of such 
     Act, as amended by this Act.

     SEC. 127. INTERSTATE AGREEMENTS.

       Section 127 of the Job Training Partnership Act (29 U.S.C. 
     1537) is amended--
       (1) by redesignating such section as section 148 of such 
     Act; and
       (2) by inserting such section after section 147 of such 
     Act, as amended by this Act.

            CHAPTER 2--PERFORMANCE ACCOUNTABILITY PROVISIONS

     SEC. 131. PERFORMANCE ACCOUNTABILITY PROVISIONS.

       The Job Training Partnership Act (29 U.S.C. 1501 et seq.) 
     is amended by inserting after part C of title I of such Act 
     the following:

     ``SEC. 151. PERFORMANCE ACCOUNTABILITY SYSTEM.

       ``In order to promote high levels of performance and to 
     ensure an appropriate return on the Nation's investment in 
     employment, training, and literacy programs, each State 
     receiving funds under this Act or the Adult Education and 
     Family Literacy Act shall implement a statewide performance 
     accountability system that meets the requirements of this 
     subpart.

     ``SEC. 152. INDICATORS OF PERFORMANCE.

       ``(a) State Benchmarks.--
       ``(1) In general.--Each State receiving funds under this 
     Act shall identify indicators and related levels of 
     performance (hereinafter referred to as `State benchmarks'), 
     for each of the programs established under titles II, III, 
     and V of this Act, to be used to measure the State's progress 
     in meeting the State long-term goals described in the State 
     plan under section 101. Such State benchmarks shall, at a 
     minimum--
       ``(A) include the core indicators of performance described 
     in section 154;
       ``(B) be expressed in an objective, quantifiable, and 
     measurable form; and
       ``(C) show the progress of the State to continuously 
     improve in performance over the 3-year period covered by the 
     State plan.
       ``(2) Customer satisfaction.--Such State benchmarks may 
     also include post-program surveys and other measures of 
     customer satisfaction of both employers and program 
     participants.
       ``(b) 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, localities, representatives of 
     business and industry, employees, employment and training 
     service providers, State directors of adult education, 
     providers of adult education and literacy services, 
     individuals with expertise in serving the employment and 
     training needs of disadvantaged youth, participants, 
     parents and other interested parties with expertise in the 
     provision of employment, training, literacy, and related 
     services, shall promulgate definitions of each of the core 
     indicators of performance described in section 154, with 
     the exception of the indicators described under 
     subsections (a)(6), (b)(1), (b)(5), (c)(1), and (c)(5) of 
     such section, to be used under this Act in measuring 
     performance.

     ``SEC. 153. STATE ADJUSTED BENCHMARKS.

       ``(a) Agreement.--
       ``(1) In general.--In order to ensure an adequate return on 
     the investment of Federal funds in employment, training, and 
     literacy programs authorized under this Act and the Adult 
     Education and Family Literacy Act, the appropriate Secretary 
     and each State shall reach agreement on the levels of 
     performance expected to be achieved by such State based upon 
     the State's benchmarks established pursuant to section 
     152(a)(1) (hereinafter referred to as the `State adjusted 
     benchmarks'), for the core indicators of performance 
     described in section 154 (except for the indicators described 
     under subsections (a)(6), (b)(1), (b)(5), (c)(1), and (c)(5) 
     of such section). Such agreement shall take into account--
       ``(A) whether the levels will enable each State to attain 
     the State goals;
       ``(B) how the levels compare with the levels established by 
     other States, taking into consideration the specific 
     circumstances, including economic circumstances, of each 
     State;
       ``(C) how the levels compare with the model levels of 
     performance identified pursuant to subsection (c); and
       ``(D) the extent to which such levels demonstrate 
     continuous improvement in performance by such State and 
     ensure an adequate return on the investment of Federal funds.
       ``(2) Authority of governor.--The Governor of a State is 
     authorized to enter into

[[Page H2822]]

     the agreement described in paragraph (1) for programs 
     authorized under titles II and III.
       ``(3) Authority of eligible state agency.--The eligible 
     State agency for adult education and literacy programs is 
     authorized to enter into the agreement described in paragraph 
     (1) for programs authorized under the Adult Education and 
     Family Literacy Act.
       ``(b) Local Benchmarks for Employment and Training 
     Programs.--Based on the expected levels of performance 
     established pursuant to subsection (a), each State shall 
     negotiate with the local workforce development board and the 
     chief local elected official in each local workforce 
     development area (consistent with section 122(d)(6)(A)) the 
     levels of performance for each indicator that are expected 
     for such local workforce development areas. Such levels of 
     performance shall be known as `local benchmarks'.
       `'(c) Model Levels of Performance.--In order to encourage 
     high levels of performance and advance the Nation's 
     competitiveness, the Secretary of Labor and the Secretary of 
     Education, in collaboration with the States, localities, and 
     with representatives of business and industry, employees, 
     employment and training service providers, State directors of 
     adult education, providers of adult education and literacy 
     services, individuals with expertise in serving the 
     employment and training needs of disadvantaged youth, 
     participants, parents and other interested parties with 
     expertise in the provision of employment, training, literacy, 
     and related services, shall identify challenging model levels 
     of performance (hereinafter referred to as `model levels of 
     performance') with respect to the core indicators of 
     performance described in section 154, with the exception of 
     the indicators described under subsections (a)(6), (b)(1), 
     (b)(5), (c)(1), and (c)(5).

     ``SEC. 154. CORE INDICATORS OF PERFORMANCE.

       ``(a) Core Indicators for Adult Employment and Training 
     Programs.--The common core indicators of performance for 
     programs authorized under title III of this Act shall include 
     measures of--
       ``(1) placement in unsubsidized employment;
       ``(2) retention in unsubsidized employment for not less 
     than 6 months and for not less than 12 months, respectively;
       ``(3) increases in earnings or in earnings in combination 
     with employer-assisted benefits;
       ``(4) reductions in welfare dependency;
       ``(5) attainment of industry-recognized occupational 
     skills;
       ``(6) attainment of a high school diploma or a general 
     equivalency diploma; and
       ``(7) such other measures of performance as the State may 
     wish to collect.
       ``(b) Core Indicators for Adult Education and Literacy 
     Programs.--The core indicators of performance for programs 
     conducted under the Adult Education and Family Literacy Act 
     shall include measures of--
       ``(1) achievement in the areas of reading, writing, English 
     language acquisition, problem solving, numeracy, and other 
     literacy skills;
       ``(2) receipt of a high school diploma or a general 
     equivalency diploma;
       ``(3) entry into a postsecondary school, job retraining 
     program, employment, or career advancement;
       ``(4) 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; and
       ``(5) such other measures of performance as the State may 
     wish to collect.
       ``(c) Core Indicators for Disadvantaged Youth.--The core 
     indicators of performance for programs conducted under title 
     II shall include measures of--
       ``(1) attainment of challenging State academic 
     proficiencies;
       ``(2) attainment of secondary school diplomas or general 
     equivalency diplomas;
       ``(3) attainment of industry-recognized work readiness and 
     occupational skills;
       ``(4) placement in, retention in, and completion of 
     postsecondary education or advanced training, or placement 
     and retention in military service, employment, or qualified 
     apprenticeships; and
       ``(5) such other measures of performance as the State may 
     wish to collect.
       ``(d) Population Indicators.--
       ``(1) Adult employment and training programs.--The core 
     indicators of performance for programs conducted under title 
     III, as provided under subsection (a), shall include measures 
     of the success of individuals with multiple barriers to 
     employment, including economically disadvantaged individuals 
     (including welfare recipients), displaced homemakers, older 
     workers, and other individuals as determined by the State.
       ``(2) Adult education and literacy programs.--The core 
     indicators of performance for programs conducted under the 
     Adult Education and Family Literacy Act, as provided under 
     subsections (a) and (b), shall include measures of the 
     success of economically disadvantaged individuals, 
     individuals with limited literacy (as determined by the 
     eligible agency), and other individuals as determined by the 
     eligible agency.
       ``(3) Disadvantaged youth programs.--The core indicators of 
     performance for programs conducted under title II, as 
     provided under subsection (c), shall include measures of the 
     success of hard to serve youth, including individuals who are 
     school dropouts or whose educational attainment is one or 
     more grade levels below the grade level appropriate to the 
     age of the individual, and other individuals as determined by 
     the State.

     ``SEC. 155. REPORT ON PERFORMANCE.

       ``(a) Report.--
       ``(1) In general.--Each State that receives funds under 
     titles II and III of this Act and the Adult Education and 
     Family Literacy Act shall annually prepare and submit to the 
     Secretary of Labor and the Secretary of Education (for 
     consideration by the appropriate Secretary) a report on the 
     levels of performance achieved by the State with respect to 
     the State adjusted benchmarks identified pursuant to section 
     153(a), and by each local workforce development area with 
     respect to the local benchmarks identified pursuant to 
     section 153(b) for programs authorized under title II and 
     title III for each program year.
       ``(2) Additional information.--In preparing such report, 
     the State may include--
       ``(A) information on such additional benchmarks as the 
     State may establish to meet the State goals; and
       ``(B) comments assessing the process used for reaching 
     agreement on the State adjusted benchmarks pursuant to 
     section 153(a) and may also include comments from local 
     workforce development areas assessing the process for 
     negotiating local benchmarks pursuant to section 153(b).
       ``(b) Information Dissemination.--The Secretary of Labor 
     and the Secretary of Education--
       ``(1) shall make the information contained in such reports 
     available to the general public through publication and other 
     appropriate methods;
       ``(2) shall disseminate State-by-State comparisons of the 
     information; and
       ``(3) shall provide the appropriate congressional 
     committees with copies of such reports.

     ``SEC. 156. INCENTIVE GRANTS AND SANCTIONS.

       ``(a) Incentive Grants.--
       ``(1) Award of grants.--From amounts made available under 
     section 452 and section 502 for any fiscal year, the 
     appropriate Secretary may award incentive grants to States 
     that--
       ``(A) exceed, during the most recent 12-month period for 
     which data are available, the adjusted State benchmarks 
     described under section 153(a);
       ``(B) demonstrate continuing progress toward exceeding, 
     during the 3-year period covered by the State plan submitted 
     under section 101, the adjusted State benchmarks described 
     under section 153(a); or
       ``(C) demonstrate significant progress in the coordination 
     and integration of employment, training, literacy, and other 
     human resource and workforce preparation programs within the 
     State, and demonstrate high performance in such programs.
       ``(2) Technical assistance.--The Secretary, upon request, 
     shall provide technical assistance to any State that does not 
     qualify for receipt of an incentive grant under paragraph 
     (1).
       ``(3) Use of funds.--A State that receives an incentive 
     grant under paragraph (1) may use funds made available under 
     such grant only to carry out employment, training, or 
     literacy activities.
       ``(b) Sanctions.--
       ``(1) States.--
       ``(A) Technical assistance.--If a State fails to meet 
     expected levels of performance for  a program for any program 
     year as established pursuant to section 153(a), the 
     Secretary of Labor for programs established under title II 
     and title III, or the Secretary of Education for programs 
     established under the Adult Education and Family Literacy 
     Act, shall, upon request, provide technical assistance, 
     including assistance in the development of a performance 
     improvement plan.
       ``(B) Reduction in amount of grant.--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 this paragraph) be 
     payable to the State under such program for the immediately 
     succeeding program year. Such penalty shall be based on the 
     degree of failure to meet adjusted levels of performance.
       ``(2) Local areas.--
       ``(A) Technical assistance.--If a local workforce 
     development area, or other applicable local administrative 
     entity, fails to meet expected levels of performance for a 
     program for any program year under section 153(b), the 
     Governor, or upon request by the Governor, the Secretary, 
     shall provide technical assistance, which may include the 
     development of a performance plan, or the development of a 
     modified local plan.
       ``(B) Corrective actions.--
       ``(i) In general.--If such failure continues for a second 
     consecutive year, the Governor shall take corrective actions, 
     which may include development of a reorganization plan 
     through which the Governor may require the appointment of a 
     new local board (consistent with the criteria established 
     under section 122(b)), prohibit the use of designated service 
     providers, require the redesignation of a local 
     administrative entity (in such case chosen jointly by the 
     Governor and the chief elected official in the local 
     workforce development area), or such other actions as the 
     Governor determines are appropriate, consistent with State 
     law, and the requirements of this subparagraph.
       ``(ii) Appeal by workforce development area.--
       ``(I) Appeal to governor.--A workforce development area 
     that is subject to a reorganization plan under clause (i) 
     may, not later than 30 days after receiving notice thereof, 
     appeal to the Governor to rescind or revise

[[Page H2823]]

     such plan. In such case, the Governor shall make a final 
     decision not later then 30 days after the receipt of the 
     appeal.
       ``(II) Subsequent action.--A local workforce development 
     area may, not later than 30 days after receiving a decision 
     from the Governor pursuant to subclause (I), appeal such 
     decision to the Secretary. In such case the Secretary shall 
     make a final decision not later than 30 days after the 
     receipt of the appeal.
       ``(iii) Effective date.--The actions taken by the Governor 
     under subclause (I) shall become effective at the time the 
     Governor issues a decision pursuant to such subclause. Such 
     action shall remain effective unless the Secretary rescinds 
     or revises such plan pursuant to subclause (II).''.

                      CHAPTER 3--OTHER PROVISIONS

     SEC. 141. PROMPT ALLOCATION OF FUNDS.

       Section 162 of the Job Training Partnership Act (29 U.S.C. 
     1572) is amended--
       (1) in the second sentence of subsection (a), by striking 
     ``1980 Census or later data'' and inserting ``the most recent 
     satisfactory data from the Bureau of the Census''; and
       (2) by striking subsection (f).

     SEC. 142. FISCAL CONTROLS; SANCTIONS.

       (a) Establishment of Fiscal Controls by States.--Section 
     164(a) of the Job Training Partnership Act (29 U.S.C. 
     1574(a)) is amended--
       (1) in paragraph (2)--
       (A) in the first sentence of the matter preceding 
     subparagraph (A), before the period at the end insert the 
     following: ``, consistent with appropriate circulars of the 
     Office of Management and Budget''; and
       (B) in subparagraph (C), by striking ``except as 
     specifically provided by this Act'' and inserting ``, and 
     procurement transactions between workforce development boards 
     and such governments shall be conducted only on a cost-
     reimbursable basis'';
       (2) in paragraph (3)--
       (A) by inserting before the second comma in the first 
     sentence ``consistent with appropriate circulars of the 
     Office of Management and Budget''; and
       (B) by striking the second sentence and all that follows:
       (3) in paragraph (4), by striking ``service delivery area 
     and substate area'' and inserting ``workforce development 
     area'';
       (4) in paragraph (5), by striking ``service delivery area 
     or substate area'' and inserting ``workforce development 
     area'';
       (5) in paragraph (6)(B), by striking ``substate areas and 
     service delivery areas'' and inserting ``workforce 
     development areas''; and
       (6) by striking paragraph (8).
       (b) Sanctions.--Section 164(b) of such Act (29 U.S.C. 
     1574(b)) is amended--
       (1) in paragraph (1)--
       (A) in the matter preceding subparagraph (A)--
       (i) by striking ``provision of'' and inserting 
     ``requirement under''; and
       (ii) by striking ``or the regulations under this Act'';
       (B) in subparagraph (A), by inserting ``local'' before 
     ``plan''; and
       (C) in subparagraph (B)--
       (i) in clause (i), by striking ``private industry council'' 
     and inserting ``workforce development board'';
       (ii) in clause (iii), by striking ``service delivery'' and 
     inserting ``workforce development''; and
       (iii) in clause (iv), by striking ``service delivery'' each 
     place it appears and inserting ``workforce development''; and
       (2) in paragraph (2)--
       (A) in subparagraph (A)--
       (i) in the matter preceding clause (i)--
       (I) by striking ``paragraph (1)(A)'' and inserting 
     ``subparagraphs (A) and (B) of paragraph (1)''; and
       (II) by striking ``under the same terms and conditions as 
     the disapproval of the plan''; and
       (ii) in clause (i), by inserting ``the'' before ``appeal''; 
     and
       (B) in subparagraph (B)--
       (i) by striking ``The actions'' and all that follows 
     through ``, who'' and inserting ``The Secretary''; and
       (ii) by striking ``60'' and inserting ``45''.
       (c) Evaluation by Comptroller General of the United 
     States.--Subsection (c) of section 164 of such Act (29 U.S.C. 
     1574(c)) is hereby repealed.
       (d) Repayment of Misexpenditures to the United States.--
     Subsection (d) of section 164 of such Act (29 U.S.C. 1574(d)) 
     is amended to read as follows:
       ``(d) Repayment of Certain Amounts to the United States.--
       ``(1) In general.--Every recipient of funds under titles II 
     and III of this Act shall repay to the United States amounts 
     found not to have been expended in accordance with this Act.
       ``(2) Offset of repayment.--If the Secretary determines 
     that a State has expended funds made available under this Act 
     in a manner contrary to the requirements of this Act, the 
     Secretary may offset repayment of such expenditures against 
     any other amount to which the State is or may be entitled, 
     except as provided under subsection (e)(1).
       ``(3) Repayment from deduction by state.--If the Secretary 
     requires a State to repay funds as a result of a 
     determination that a local recipient or a subgrantee of such 
     recipient in a local workforce development area of the State 
     has expended funds contrary to the requirements of this Act, 
     the Governor of the State may use an amount deducted under 
     paragraph (4) to repay the funds, except as provided under 
     subsection (e)(1).
       ``(4) Deduction by state.--The Governor may deduct an 
     amount equal to the misexpenditure described in paragraph (3) 
     from subsequent program year allocations to the local 
     workforce development area from funds reserved for the 
     administrative costs of such local programs under title II or 
     title III, as appropriate.
       ``(5) Limitations.--A deduction made by a State as 
     described under paragraph (4) shall not be made until such 
     time as the Governor has taken appropriate corrective action 
     to ensure full compliance within such local workforce 
     development area with regard to appropriate expenditures 
     of funds under this Act.''.
       (e) Repayment of Certain Amounts to the United States.--
     Subsection (e) of section 164 of such Act (29 U.S.C. 1574(e)) 
     is amended--
       (1) in paragraph (1)--
       (A) in the first sentence--
       (i) by inserting ``by the Secretary'' after ``upon a 
     determination'';
       (ii) by striking ``or failure'' and inserting ``failure''; 
     and
       (iii) by inserting before the period at the end the 
     following: ``, or a pattern of failure with respect to 
     paragraphs (2) and (3) of subsection (d)''; and
       (B) in the second sentence--
       (i) by inserting ``under this subsection or subsection 
     (d)'' after ``shall be made''; and
       (ii) by inserting before the period at the end the 
     following: ``has been given to the recipient''; and
       (2) in paragraph (3), by striking the second sentence.
       (f) Remedies Construed as Exclusive Remedies.--Subsection 
     (h) of section 164 of such Act (29 U.S.C. 1574(h)) is hereby 
     repealed.

     SEC. 143. REPORTS; RECORDKEEPING; INVESTIGATIONS.

       Section 165 of the Job Training Partnership Act (29 U.S.C. 
     1575) is amended--
       (1) in subsection (d)(1)(C)--
       (A) by striking the comma after ``occupations''; and
       (B) by striking the semicolon at the end and inserting 
     ``and placement for participants in nontraditional 
     employment;''; and
       (2) by striking subsection (h).

     SEC. 144. ADMINISTRATIVE ADJUDICATION.

       Section 166(a) of the Job Training Partnership Act (29 
     U.S.C. 1576(a)) is amended by striking the last sentence.

     SEC. 145. NONDISCRIMINATION.

       Section 167 of the Job Training Partnership Act (29 U.S.C. 
     1577) is amended to read as follows:

     ``SEC. 167. NONDISCRIMINATION.

       ``(a) In General.--
       ``(1) Federal financial assistance.--For the purpose of 
     applying the prohibitions against discrimination on the basis 
     of age under the Age Discrimination Act of 1975 (42 U.S.C. 
     6101 et seq.), on the basis of disability under section 
     504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), on 
     the basis of sex under title IX of the Education 
     Amendments of 1972 (20 U.S.C. 1681 et seq.), or on the 
     basis of race, color, or national origin under title VI of 
     the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.), 
     programs and activities funded or otherwise financially 
     assisted in whole or in part under this Act are considered 
     to be programs and activities receiving Federal financial 
     assistance.
       ``(2) Nondiscrimination.--No individual shall be excluded 
     from participation in, denied the benefits of, subjected to 
     discrimination under, or denied employment in the 
     administration of or in connection with any such program or 
     activity because of race, color, religion, sex, national 
     origin, age, political affiliation or belief, or status as a 
     qualified individual with a disability or as a participant of 
     such program or activity.
       ``(b) Secretarial Authority.--Whenever the Secretary finds 
     that a State or other recipient has failed to comply with a 
     provision of this section, or with an applicable regulation 
     prescribed to carry out this section, the Secretary shall 
     notify such State or recipient and seek compliance through 
     the processes of conciliation, mediation or persuasion, as 
     appropriate. If within a reasonable time the State or 
     recipient fails or refuses to comply, the Secretary may--
       ``(1) refer the matter to the Attorney General with a 
     recommendation for appropriate action; or
       ``(2) take such other action as may be provided by law.
       ``(c) Authority of Attorney General.--When a matter is 
     referred to the Attorney General pursuant to subsection 
     (b)(1), the Attorney General may bring a civil action in any 
     appropriate district court of the United States for such 
     relief as may be appropriate, including injunctive relief.
       ``(d) Job Corps.--For the purposes of this section, Job 
     Corps members shall be considered as the ultimate 
     beneficiaries of Federal financial assistance.
       ``(e) Regulations.--The Secretary shall issue regulations 
     necessary to implement this section not later than one year 
     after the date of the enactment of the Employment, Training, 
     and Literacy Enhancement Act of 1997. Such regulations shall 
     adopt standards for determining discrimination and procedures 
     for enforcement that are consistent with the Acts referred to 
     in a subsection (a)(1), as well as procedures to ensure that 
     complaints filed under this section and such Acts are 
     processed in a manner that avoids duplication of 
     effort.''.

     SEC. 146. JUDICIAL REVIEW.

       Section 168 of the Job Training Partnership Act (29 U.S.C. 
     1578) is hereby repealed.

     SEC. 147. ADMINISTRATIVE PROVISIONS.

       Section 169 of the Job Training Partnership Act (29 U.S.C. 
     1579) is amended--

[[Page H2824]]

       (1) in the first sentence of subsection (a), by striking 
     ``such rules and regulations'' and all that follows and 
     inserting ``rules and regulations only to the extent 
     necessary to administer and ensure compliance with the 
     specific requirements of this Act.''; and
       (2) by striking subsection (e) and inserting the following:
       ``(e) Waivers.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, the Secretary of Labor may waive--
       ``(A) any of the statutory or regulatory requirements of 
     this title and titles II and III of this Act (except for 
     requirements relating to wage and labor standards, worker 
     rights, participation and protection, grievance procedures 
     and judicial review, nondiscrimination, allocation of funds 
     to local areas, eligibility, review and approval of plans, 
     the establishment and functions of workforce development 
     areas and workforce development boards, and the basic 
     purposes of the Act); and
       ``(B) any of the statutory or regulatory requirements of 
     sections 8 through 10 of the Wagner-Peyser Act (29 U.S.C. 49g 
     through 49i) (except for requirements relating to the 
     provision of services to unemployment insurance claimants and 
     veterans and to universal access to basic labor exchange 
     services without cost to job seekers), pursuant to a request 
     submitted by a State which meets the requirements of 
     paragraph (2).
       ``(2) Requests.--A State requesting a waiver under 
     paragraph (1) shall submit a plan to the Secretary to improve 
     the workforce development system which--
       ``(A) identifies the statutory or regulatory requirements 
     that are requested to be waived and the goals which the State 
     or local workforce development areas intend to achieve;
       ``(B) describes the actions that the State or local 
     workforce development areas have undertaken to remove State 
     or local statutory or regulatory barriers;
       ``(C) describes the goals of the waiver and the expected 
     programmatic outcomes if the request is granted;
       (D) describes the individuals impacted by the waiver; and
       (E) describes the process used to monitor the progress in 
     implementing a waiver, and for which notice and an 
     opportunity to comment on such request has been provided to 
     the organizations identified in section 122(e)(2) of this 
     Act, if and only to the extent that the Secretary determines 
     that such requirements impede the ability of the State to 
     implement such plan to improve the workforce development 
     system and the State has executed a memorandum of 
     understanding with the Secretary requiring such State to meet 
     agreed-upon outcomes and implement other appropriate measures 
     to ensure accountability.''.

     SEC. 148. PRESIDENTIAL AWARDS FOR OUTSTANDING PRIVATE SECTOR 
                   INVOLVEMENT IN JOB TRAINING PROGRAMS.

       Section 172 of the Job Training Partnership Act (29 U.S.C. 
     1582) is hereby repealed.

     SEC. 149. CONSTRUCTION.

       Section 173 of the Job Training Partnership Act (29 U.S.C. 
     1583) is hereby repealed.

     SEC. 150. LIMITATION ON CERTAIN COSTS.

       Part D of title I of the Job Training Partnership Act (29 
     U.S.C. 1571 et seq.), as amended by this Act, is further 
     amended by adding at the end the following:

     ``SEC. 172. LIMITATION ON CERTAIN COSTS.

       ``(a) Administrative Costs.--
       ``(1) In general.--The Secretary, after consultation with 
     the Inspector General of the Department of Labor and the 
     Comptroller General of the United States, shall develop 
     regulations that define `administrative costs' for purposes 
     of programs under titles II and III. Such definition shall 
     reflect generally accepted accounting principles.
       ``(2) Additional requirement.--Notwithstanding any other 
     provision of law, regulations issued by the Secretary under 
     paragraph (1) shall provide procedures under which the 
     Governor may approve a plan for the pooling of administrative 
     funds, which are available in accordance with the limitation 
     in subsection (b)(1), if the Governor determines that such 
     plan would not jeopardize the administration of the 
     activities from which such funds are to be transferred.
       ``(b) Limitation.--
       ``(1) In general.--Of the amounts allocated to local 
     workforce development areas for a program year under titles 
     II and III, not more than 10 percent of such amounts may be 
     expended for administrative costs.
       ``(2) Definition.--For purposes of paragraph (1), the term 
     `allocated' means allocated for a program year, as adjusted 
     for reallocations and reallotments and for transfers of funds 
     in accordance with this Act.''.

                  Subtitle D--Miscellaneous Provisions

     SEC. 161. CRIMINAL PROVISIONS.

       (a) In General.--Section 182 of the Job Training 
     Partnership Act is hereby repealed.
       (b) Savings Provision.--The repeal of section 182 of such 
     Act made by subsection (a) does not affect in any way the 
     amendment made by such section 182.

     SEC. 162. REFERENCE.

       Section 183 of the Job Training Partnership Act (29 U.S.C. 
     1592) is amended to read as follows:

     ``SEC. 183. REFERENCE.

       ``Effective on the date of the enactment of the Employment, 
     Training, and Literacy Enhancement Act of 1997, all 
     references in any other provision of law (other than section 
     665 of title 18, United States Code) to the Comprehensive 
     Employment and Training Act, or to the Job Training 
     Partnership Act, as the case may be, shall be deemed to refer 
     to Employment, Training, and Literacy Enhancement Act.''.

     SEC. 163. REPEALERS.

       (a) In General.--Section 184 of the Job Training 
     Partnership Act (29 U.S.C. 801 et seq.) is hereby repealed.
       (b) Savings Provision.--The repeal of section 184 of such 
     Act made by subsection (a) does not affect in any way the 
     repealers made by such section 184.

     TITLE II--AMENDMENTS TO EMPLOYMENT AND TRAINING PROGRAMS FOR 
                          DISADVANTAGED YOUTH

     SEC. 201. ADULT TRAINING PROGRAM.

       Title II of the Job Training Partnership Act (29 U.S.C. 
     1601 et seq.) is amended by striking part A of such title.

     SEC. 202. SUMMER YOUTH EMPLOYMENT AND TRAINING PROGRAM.

       Title II of the Job Training Partnership Act (29 U.S.C. 
     1601 et seq.) is amended by striking part B of such title.

     SEC. 203. DISADVANTAGED YOUTH EMPLOYMENT AND TRAINING 
                   OPPORTUNITIES GRANTS.

       (a) Authorization.--Title II of the Job Training 
     Partnership Act (29 U.S.C. 1601 et seq.), as amended by this 
     Act, is further amended--
       (1) in the heading to read as follows:

 ``TITLE II--DISADVANTAGED YOUTH EMPLOYMENT AND TRAINING OPPORTUNITIES 
                               GRANTS'';

       (2) by striking the heading for part C of such title;
       (3) by redesignating section 261 as section 201; and
       (4) by inserting after section 201 (as redesignated) the 
     following:

     ``SEC. 202. AUTHORIZATION.

       ``(a) In General.--In the case of each State that in 
     accordance with the requirements of sections 101 and 102 
     submits to the Secretary of Labor (hereinafter in this title 
     referred to as the `Secretary') a State plan, the Secretary 
     shall provide a grant to the State for the purpose of 
     providing employment, job training, educational, and related 
     assistance for disadvantaged youth in the State.
       ``(b) Amount.--The grant shall consist of the allotment 
     determined for the State under section 203.''.
       (b) Allotment and Allocation Among States.--Title II of the 
     Job Training Partnership Act (29 U.S.C. 1601 et seq.), as 
     amended by this Act, is further amended--
       (1) by redesignating section 262 as section 203; and
       (2) in section 203 (as redesignated)--
       (A) in the heading to read as follows:

     ``SEC. 203. ALLOTMENT AND ALLOCATION AMONG STATES.'';

       (B) by striking subsections (b) and (c);
       (C) by redesignating subsections (a) and (d) as subsections 
     (b) and (c), respectively;
       (D) by inserting before subsection (b) (as redesignated) 
     the following:
       ``(a) In General.--Of the amount appropriated pursuant to 
     section 3(a)(1) to carry out this title for a fiscal year, 
     the Secretary shall allot such amount in accordance with 
     subsection (b).'';
       (E) in subsection (b) (as redesignated)--
       (i) in the heading to read as follows:
       ``(b) Allotment Among States.--'';
       (ii) in paragraph (1) to read as follows:
       ``(1) Outlying areas.--
       ``(A) In general.--From the amount appropriated for any 
     fiscal year to carry out this title, the Secretary shall 
     reserve not more than one quarter of one percent to provide 
     assistance to--
       ``(i) the outlying areas; and
       ``(ii) for each of the fiscal years 1998 through 2001, to 
     carry out the competition described in subparagraph (B), 
     except that the amount reserved to carry out such 
     subparagraph for any such fiscal year shall not exceed the 
     amount reserved for the freely associated states for fiscal 
     year 1997, from amounts reserved under section 262(a)(1) of 
     the Job Training Partnership Act (29 U.S.C. 1642(a)(1)) (as 
     such section was in effect on the day before the date of the 
     enactment of Employment, Training, and Literacy Enhancement 
     Act of 1997).
       ``(B) Limitation for freely associated states.--
       ``(i) Competitive grants.--The Secretary shall use funds 
     described in subparagraph (A)(ii) to award grants to Guam, 
     American Samoa, the Commonwealth of the Northern Mariana 
     Islands, and the freely associated states to carry out the 
     purposes of this title.
       ``(ii) Award basis.--The Secretary shall award grants 
     pursuant to clause (i) on a competitive basis and pursuant to 
     the recommendations of experts in the field of employment and 
     training, working through the Pacific Region Educational 
     Laboratory in Honolulu, Hawaii.
       ``(iii) Assistance requirements.--Any freely associated 
     state that desires to receive amounts under this title shall 
     include in its application for assistance--
       ``(I) information demonstrating that it will meet all 
     conditions that apply to States under this title;
       ``(II) an assurance that, notwithstanding any other 
     provision of this title, it will use such amounts only for 
     the direct provision of services; and
       ``(III) such other information and assurances as the 
     Secretary may require.
       ``(iv) Termination of eligibility.--Notwithstanding any 
     other provision of law, the

[[Page H2825]]

     freely associated states shall not receive any funds under 
     this title for any program year that begins after September 
     30, 2001.
       ``(v) Administrative costs.--The Secretary may provide not 
     more than 5 percent of the amount made available for grants 
     under this subparagraph to pay the administrative costs of 
     the Pacific Region Educational Laboratory in Honolulu, 
     Hawaii, regarding activities assisted under this section.
       ``(C) Additional requirement.--The provisions of Public Law 
     95-134, permitting the consolidation of grants by the 
     outlying areas, shall not apply to funds provided to those 
     areas or to the freely associated states under this section.
       ``(D) Definition.--For purposes of this paragraph, the term 
     `freely associated states' means the Republic of the Marshall 
     Islands, the Federated States of Micronesia, and the Republic 
     of Palau.''; and
       (III) in paragraph (2)--
       (I) by inserting after the heading the following:
       ``(A) In general.--'';
       (II) by striking ``82 percent of the remainder'' and all 
     that follows and inserting the following: ``the remaining 
     amount to the States pursuant to the formula contained in 
     subparagraph (B).''; and
       (III) by adding at the end the following:
       ``(B) Formula.--Subject to the provisions of subparagraphs 
     (C) and (D) of the amounts allotted to States for this title 
     for each fiscal year--
       ``(i) 33\1/3\ percent shall be allotted on the basis of the 
     relative number of unemployed individuals residing in areas 
     of substantial unemployment within each State as compared to 
     the total number of such unemployed individuals in all such 
     areas of substantial unemployment in all States;
       ``(ii) 33\1/3\ percent shall be allotted on the basis of 
     the relative number of unemployed individuals who reside in 
     each State as compared to the total excess number of 
     unemployed individuals in all States; and
       ``(iii) 33\1/3\ percent shall be allotted on the basis of 
     the relative number of economically disadvantaged youth 
     within each State as compared to the total number of 
     economically disadvantaged youth in all States.
       ``(C) Minimum allotment.--
       ``(i) Minimum percentage.--No State shall be allotted less 
     than 90 percent of its allotment percentage for the fiscal 
     year preceding the fiscal year for which the determination is 
     made.
       ``(ii) Maximum percentage.--No State shall be allotted more 
     than 130 percent of its allotment percentage for the fiscal 
     year preceding the fiscal year for which the determination is 
     made.
       ``(D) Small state minimum allotment.--No State shall 
     receive less than one-quarter of one percent of the amount 
     available under this title for a fiscal year. Amounts 
     necessary for increasing such payments to States to comply 
     with the preceding sentence shall be obtained by ratably 
     reducing the amounts to be paid to other States.''; and
       (F) in subsection (c)(1)(A) (as redesignated)--
       (i) in the heading, by striking ``Economically 
     disadvantaged'' and inserting ``Disadvantaged''; and
       (ii) in the matter preceding clause (i), by striking 
     ``economically''.
       (c) Allocation Within States.--Title II of the Job Training 
     Partnership Act (29 U.S.C. 1601 et seq.), as amended by this 
     Act, is further amended by inserting after section 203 the 
     following:

     ``SEC. 204. ALLOCATION WITHIN STATES.

       ``(a) Reservation for State Activities.--
       ``(1) In general.--
       ``(A) Reservation.--The Governor of the State shall reserve 
     not more than 25 percent of the amount allotted to the State 
     under section 203(b) for a fiscal year to carry out the 
     activities described in this subsection.
       ``(B) Matching funds for out-of-school youth programs.--Of 
     the amount reserved under subparagraph (A), the Governor 
     shall reserve not less than 10 percent of the total amount 
     alloted to the State under section 203(b) for any fiscal year 
     to award grants in accordance with this title to programs for 
     disadvantaged youth that--
       ``(i) serve only out-of-school youth; and
       ``(ii) agree to provide matching funds from sources other 
     than those received under this subparagraph for such services 
     in an amount equal to the Federal funds received under this 
     subparagraph.
       ``(2) Required activities.--Activities described in 
     paragraph (1)(A) shall include the provision of additional 
     assistance to areas that have high concentrations of 
     disadvantaged youth to carry out the activities described in 
     section 206.
       ``(3) Discretionary activities.--Activities described in 
     paragraph (1)(A) may include--
       ``(A) subject to paragraph (4), administration by the State 
     of programs under this title;
       ``(B) capacity building and technical assistance to local 
     workforce development areas and to providers of disadvantaged 
     youth services as authorized under this title, including the 
     development and training of staff, members of local workforce 
     development boards, and employers and workplace mentors 
     providing training through programs authorized under this 
     title;
       ``(C) incentives for program coordination and integration, 
     performance awards, and research and demonstrations;
       ``(D) implementation of innovative disadvantaged youth 
     employment and training programs, pilot projects, and 
     demonstration projects which further the purposes of this 
     title; and
       ``(E) support for a common management information system 
     across employment, training, literacy, and human resource 
     programs as identified in section 103.
       ``(4) Limitation.--Of the amount reserved by the Governor 
     under paragraph (1)(A), not more than 5 percent of the total 
     amount allotted to the State under section 203(b) may be used 
     for administration by the State of programs under this title.
       ``(b) Within State Allocation.--
       ``(1) In general.--The Governor of the State shall allocate 
     the remainder of the amount allotted to the State under 
     section 203(b) to workforce development areas designated 
     under section 121, in accordance with paragraphs (2) and (3), 
     for the purpose of providing services for disadvantaged youth 
     in accordance with section 206.
       ``(2) Allocation by formula.--
       ``(A) In general.--Each State shall allocate not less than 
     70 percent of the remainder of funds described in paragraph 
     (1) to workforce development areas within the State 
     pursuant to the formula contained in subparagraph (B) for 
     the provision of services for disadvantaged youth in 
     accordance with section 206.
       ``(B) Formula.--Of the amounts described in subparagraph 
     (A)--
       ``(i) 33\1/3\ percent shall be allocated on the basis of 
     the relative number of unemployed individuals residing in 
     areas of substantial unemployment in each workforce 
     development area as compared to the total number of such 
     unemployed individuals in all such areas of substantial 
     unemployment in the State;
       ``(ii) 33\1/3\ percent shall be allocated on the basis of 
     the relative excess number of unemployed individuals who 
     reside in each workforce development area as compared to the 
     total excess number of unemployed individuals in all 
     workforce development areas in the State; and
       ``(iii) 33\1/3\ percent shall be allocated on the basis of 
     the relative number of economically disadvantaged youth in 
     each workforce development area as compared to the total 
     number of disadvantaged youth in all workforce development 
     areas in the State.
       ``(3) Discretionary allocation.--The State, through the 
     collaborative process under section 102, is authorized to 
     allocate not more than 30 percent of the remainder of funds 
     described in paragraph (1) to workforce development areas for 
     the provision of services for disadvantaged youth in 
     accordance with section 206. Such funds shall be allocated to 
     urban, rural, and suburban areas throughout the State and 
     shall be allocated promptly in accordance with section 
     162(e).''.
       (d) Eligibility for Services.--Title II of the Job Training 
     Partnership Act (29 U.S.C. 1601 et seq.), as amended by this 
     Act, is further amended--
       (1) by redesignating section 263 as section 205; and
       (2) in section 205 (as redesignated)--
       (A) in subsection (a)--
       (i) in the heading to read as follows:
       ``(a) In General.--'';
       (ii) in the matter preceding paragraph (1)--
       (I) by striking ``subsections (e) and (g)'' and inserting 
     ``subsection (c)'';
       (II) by striking ``who is in school''; and
       (III) by striking ``part'' and inserting ``title''; and
       (iii) in paragraph (1)(B) to read as follows:
       ``(B) if provided in the local plan developed pursuant to 
     section 122(d)(1), is age 14 through 24; and'';
       (B) in subsection (b)--
       (i) by amending the heading to read as follows:
       ``(b) Priority for Service.--'';
       (ii) by redesignating paragraphs (1) through (7) as 
     subparagraphs (B) through (H), respectively, and moving the 
     margin for each such subparagraph two ems to the right;
       (iii) by inserting before subparagraph (B) (as 
     redesignated) the following:
       ``(A) Individuals who are school dropouts.'';
       (iv) in subparagraph (H) (as redesignated) to read as 
     follows:
       ``(H) Other disadvantaged youth who face serious barriers 
     to employment as identified by the local workforce 
     development area.''; and
       (v) by amending the matter preceding subparagraph (A) (as 
     added by clause (iii)) to read as follows:
       ``(1) Priority.--Of the disadvantaged youth described in 
     subsection (a), priority for service shall be given to school 
     dropouts and to other hard-to-serve youth.
       ``(2) Definition.--For the purposes of this title, the term 
     `hard-to-serve youth' includes--'';
       (C) by striking subsections (c), (d), (f), (g), and (h);
       (D) by redesignating subsection (e) as subsection (c); and
       (E) in subsection (c) (as redesignated)--
       (i) by striking ``subsection (a)(2) or (c)(2)'' and 
     inserting ``subsection (a)''; and
       (ii) by striking ``of individuals who face'' and all that 
     follows and inserting ``described in subparagraphs (A) 
     through (G) of subsection (b)(2).''.
       ``(e) Use of Funds.--Title II of the Job Training 
     Partnership Act (29 U.S.C. 1601 et seq.), as amended by this 
     Act, is further amended--
       (1) by redesignating section 264 as section 206; and
       (2) in section 206 (as redesignated)--
       (A) by striking subsection (a);

[[Page H2826]]

       (B) by redesignating subsections (b), (c), and (d) as 
     subsections, (a), (b), and (c), respectively;
       (C) in subsection (a) (as redesignated)--
       (i) in the heading to read as follows:
       ``(a) Program Design.--'';
       (ii) in paragraph (1)--
       (I) in the heading to read as follows:
       ``(1) Essential elements.--'';
       (II) in the matter preceding subparagraph (A)--
       (aa) by striking ``part'' and inserting ``title''; and
       (bb) by striking ``include'';
       (III) in subparagraph (A)--
       (aa) by inserting ``provide'' after ``(A)'';
       (bb) by striking ``skill levels and service needs'' and 
     inserting ``academic levels, skill levels, and service 
     needs''; and
       (cc) by striking ``and supportive service needs'' and 
     inserting ``supportive service needs, and developmental needs 
     of such participants'';
       (IV) in subparagraph (B)--
       (aa) by striking ``development of'' and inserting 
     ``develop''; and
       (bb) by inserting ``for each participant'' after ``service 
     strategies''; and
       (V) by amending subparagraphs (C) and (D) to read as 
     follows:
       ``(C) integrate academic, occupational, and work-based 
     learning opportunities;
       ``(D) provide comprehensive guidance and counseling;
       ``(E) provide postsecondary educational or training 
     opportunities, where appropriate;
       ``(F) involve employers and parents in the design and 
     implementation of programs;
       ``(G) provide adult mentoring; and
       ``(H) provide summer employment opportunities that are 
     directly linked to academic and occupational learning.'';
       (iii) in paragraph (2)--
       (I) in subparagraph (A)--
       (aa) in the matter preceding clause (i), by striking 
     ``service delivery'' and inserting ``workforce development''; 
     and
       (bb) in clause (i), by striking ``service delivery'' and 
     inserting ``workforce development''; and
       (II) in subparagraph (B)--
       (aa) in clause (i), by striking ``(i) Service providers.--
     ''; and
       (bb) by striking clause (ii);
       (D) in subsection (b) (as redesignated)--
       (i) in the matter preceding paragraph (1), by striking 
     ``part'' and inserting ``title'';
       (ii) in paragraph (1)--
       (I) in subparagraph (A), by striking ``section 204(b)(1)'' 
     and inserting ``section 314(c)(4)'';
       (II) in subparagraph (C), by striking ``section 141(o)(1)'' 
     and inserting ``section 141(11)(A)'';
       (III) in subparagraph (G) by striking ``in public agencies, 
     nonprofit agencies, and other appropriate agencies, 
     institutions, and organizations'';
       (IV) by amending subparagraph (H) to read as follows:
       ``(H) such other training and transition services that 
     assist disadvantaged youth in making the transition to 
     employment or to postsecondary education or training, as 
     determined appropriate by the local workforce development 
     area; and'';
       (V) by amending subparagraph (I) to read as follows:
       ``(I) summer employment opportunities that are directly 
     linked to academic and occupational learning.''; and
       (VI) by striking subparagraphs (J) through (L); and
       (iii) in paragraph (2)--
       (I) in subparagraph (A) to read as follows:
       ``(A) assessment, outreach, staff development, job 
     development, and job search assistance activities;'';
       (II) in subparagraph (C), by striking ``and'' at the end;
       (III) in subparagraph (D)--
       (aa) by striking ``cash''; and
       (bb) by striking the period at the end and inserting ``; 
     and''; and
       (IV) by adding at the end the following:
       ``(E) peer-centered activities encouraging responsibility 
     and other positive social behaviors during non-school 
     hours.'';
       (E) in subsection (e) (as redesignated)--
       (i) in paragraph (1)--
       (I) by striking ``service delivery'' and inserting 
     ``workforce development'';
       (II) by striking ``private industry council'' and inserting 
     ``local board''; and
       (III) by striking ``section 453(c)'' and inserting ``part D 
     of title IV'';
       (ii) in clauses (i) through (iii) of paragraph (2)(B), by 
     striking ``service delivery'' each place it occurs and 
     inserting ``workforce development'';
       (iii) in paragraph (3)--
       (I) in subparagraph (A)--
       (aa) in the heading to read as follows:
       ``(A) Work-related activities.--'';
       (bb) in the first sentence, by inserting after ``work 
     maturity skills training'' the following: ``, summer 
     employment, job search assistance, job club activities, and 
     other work-related activities'';
       (cc) in the first sentence, by striking ``part'' and 
     inserting ``title'';
       (dd) in the first sentence, by striking ``by either work 
     experience or other additional services'' and inserting ``by 
     occupational and academic learning opportunities'';
       (ee) in the first sentence, by striking ``basic education 
     or occupational skills'' and inserting ``basic education and 
     occupational skills''; and
       (ff) in the second sentence, by striking ``, including the 
     Job Corps'';
       (II) by striking subparagraph (B);
       (III) by redesignating subparagraph (C) as subparagraph 
     (B); and
       (IV) in subparagraph (B) (as redesignated)--
       (aa) by striking clause (i);
       (bb) by redesignating clause (ii) as clause (i);
       (cc) in clause (i) (as redesignated), by striking ``part'' 
     and inserting ``title''; and
       (dd) by redesignating clause (iii) as clause (ii);
       (iv) in paragraph (5)--
       (I) in the heading, by striking ``Counseling'' and 
     inserting ``Follow-up, counseling'';
       (II) by striking ``part'' and inserting ``title''; and
       (III) by striking ``for a period of up to 1 year'';
       (v) by striking paragraph (6);
       (vi) in paragraph (7), by striking ``service delivery'' and 
     inserting ``workforce development'' and
       (vii) by redesignating paragraph (7) and paragraph (6).
       (f) Selection of Service Providers.--Title II of the Job 
     Training Partnership Act (29 U.S.C. 1601 et seq.), as amended 
     by this Act, is further amended by adding after section 206 
     (as redesignated), the following:

     ``SEC. 207. SELECTION OF SERVICE PROVIDERS.

       ``From funds made available under section 204(b) to a local 
     workforce development area, the local board for such local 
     area shall award grants, on a competitive basis, to eligible 
     providers to carry out the disadvantaged youth programs 
     described in section 206.''.
       (g) Education Linkages.--Title II of the Job Training 
     Partnership Act (29 U.S.C. 1601 et seq.), as amended by this 
     Act, is further amended--
       (1) by redesignating section 265 as section 208; and
       (2) in section 208 (as redesignated)--
       (A) in subsection (a), by striking ``service delivery'' and 
     inserting ``workforce development'';
       (B) in subsection (b)--
       (i) in the matter preceding paragraph (1), by striking 
     ``service delivery'' and inserting ``workforce development''; 
     and
       (ii) in paragraph (6) to read as follows:
       ``(6) title I of the Personal Responsibility and Work 
     Opportunity Reconciliation Act of 1996;'';
       (C) in subsection (c)--
       (i) in the first sentence, by striking ``service delivery'' 
     and inserting ``workforce development''; and
       (ii) in the second sentence, by striking ``, including 
     programs conducted under part A''; and
       (D) by striking subsection (d).
       (h) Transfer of Funds.--Title II of the Job Training 
     Partnership Act (29 U.S.C. 1601 et seq.), as amended by this 
     Act, is further amended by striking section 266.

  TITLE III--AMENDMENTS TO EMPLOYMENT AND TRAINING PROGRAMS FOR ADULTS

     SEC. 301. ADULT EMPLOYMENT AND TRAINING OPPORTUNITIES GRANTS.

       Title III of the Job Training Partnership Act (29 U.S.C. 
     1651 et seq.) is amended to read as follows:

    ``TITLE III--ADULT EMPLOYMENT AND TRAINING OPPORTUNITIES GRANTS

     ``SEC. 301. PURPOSE.

       ``The purpose of this title is to establish a high-quality, 
     efficient system of employment, job training, and related 
     assistance that--
       ``(1) provides individuals with choice in the selection of 
     employment and training options that will facilitate the 
     transition of such individuals into productive, high skills, 
     private sector jobs;
       ``(2) provides quality training of such individuals for the 
     21st century; and
       ``(3) drives resources and authority to States and local 
     communities for the design of job training programs.

      ``PART A--ADULT EMPLOYMENT AND TRAINING OPPORTUNITIES GRANTS

     ``SEC. 311. AUTHORIZATION.

       ``(a) In General.--In the case of each State that in 
     accordance with the requirements of sections 101 and 102 
     submits to the Secretary of Labor (hereinafter in this title 
     referred to as the `Secretary') a State plan, the Secretary 
     shall provide funds to the State for the purpose of providing 
     employment, job training, and related assistance for adults 
     and dislocated workers in the State, in accordance with this 
     title.
       ``(b) Amount.--The funds described in subsection (a) shall 
     consist of the allotments determined for the State under 
     section 312.

     ``SEC. 312. ALLOTMENT AMONG STATES.

       ``(a) In General.--Of the amount appropriated pursuant to 
     section 3(a)(2) to carry out this title for a fiscal year, 
     the Secretary--
       ``(1) shall allot the total amount appropriated pursuant to 
     section 3(a)(2)(A) in accordance with subsection (b)(1); and
       ``(2)(A) shall allot 80 percent of the amount appropriated 
     pursuant to section 3(a)(2)(B) in accordance with the 
     subsection (b)(2); and
       ``(B) shall reserve the remainder of the amount 
     appropriated pursuant to section 3(a)(2)(B) for use under 
     part B.
       ``(b) Allotment Among States.--
       ``(1) Adult employment and training.--
       ``(A) Reservation for outlying areas.--
       ``(i) In general.--Of the amount allotted under subsection 
     (a)(1), the Secretary shall allot not more than one quarter 
     of one percent among the outlying areas.

[[Page H2827]]

       ``(ii) Applicability of additional requirements.--Of the 
     amount allotted under clause (i), the Secretary shall award 
     grants to Guam, American Samoa, the Commonwealth of the 
     Northern Mariana Islands, and the freely associated states in 
     accordance with the requirements of section 203(b)(1).
       ``(B) States.--
       ``(i) In general.--After determining the amount to be 
     allotted under subparagraph (A), the Secretary shall allot 
     the remaining amount to the States pursuant to the formula 
     contained in clause (ii).
       ``(ii) Formula.--Subject to the provisions of clause (iii), 
     of the amounts allotted to States for adult employment and 
     training under this title for each fiscal year--
       ``(I) 33\1/3\ percent shall be allotted on the basis of the 
     relative number of unemployed individuals residing in areas 
     of substantial unemployment within each State as compared to 
     the total number of such unemployed individuals in all such 
     areas of substantial unemployment in all States;
       ``(II) 33\1/3\ percent shall be allotted on the basis on 
     the relative excess number of unemployed individuals within 
     each State as compared to the total excess number of 
     unemployed individuals in all States; and
       ``(III) 33\1/3\ percent shall be allotted on the basis of 
     the relative number of economically disadvantaged adults 
     within each State as compared to the total number of 
     economically disadvantaged adults in all States.
       ``(iii) Minimum allotment.--
       ``(I) Minimum percentage.--No State shall be allotted less 
     than 90 percent of its allotment percentage for the fiscal 
     year preceding the fiscal year for which the determination is 
     made.
       ``(II) Maximum percentage.--No State shall be allotted more 
     than 130 percent of its allotment percentage for the fiscal 
     year preceding the fiscal year for which the determination is 
     made.
       ``(iv) Small state minimum allotment.--No State shall 
     receive less than one-quarter of one percent of the 
     amount available under this subparagraph for a fiscal 
     year. Amounts necessary for increasing such payments to 
     States to comply with the preceding sentence shall be 
     obtained by ratably reducing the amounts to be paid to 
     other States.
       ``(2) Dislocated workers.--
       ``(A) Reservation for outlying areas.--
       ``(i) In general.--Of the amount allotted under subsection 
     (a)(2)(A), the Secretary shall allot not more than one 
     quarter of one percent among the outlying areas.
       ``(ii) Applicability of additional requirements.--Of the 
     amount allotted under clause (i), the Secretary shall award 
     grants to Guam, American Samoa, the Commonwealth of the 
     Northern Mariana Islands, and the freely associated states in 
     accordance with the requirements of section 203(b)(1).
       ``(B) States.--
       ``(i) In general.--After determining the amount to be 
     allotted under subparagraph (A), the Secretary shall allot 
     the remaining amount to the States pursuant to the formula 
     contained in clause (ii).
       ``(ii) Formula.--Subject to the provisions of clause (iii), 
     of the amounts allotted to States for dislocated worker 
     employment and training under this title for each fiscal 
     year--
       ``(I) 33\1/3\ percent shall be allotted among the States on 
     the basis of the relative number of unemployed individuals 
     who reside in each State as compared to the total number of 
     unemployed individuals in all the States;
       ``(II) 33\1/3\ percent shall be allotted among the States 
     on the basis of the relative excess number of unemployed 
     individuals who reside in each State as compared to the total 
     excess number of unemployed individuals in all the States 
     (for purposes of this subclause, the term `excess number' 
     means the number which represents unemployed individuals in 
     excess of 4.5 percent of the civilian labor force in the 
     State); and
       ``(III) 33\1/3\ percent shall be allotted among the States 
     on the basis of the relative number of individuals who have 
     been unemployed for 15 weeks or more and who reside in each 
     State as compared to the total number of such individuals in 
     all the States.
       ``(iii) Minimum allotment.--
       ``(I) Minimum percentage.--No State shall be allotted less 
     than 90 percent of its allotment percentage for the fiscal 
     year preceding the fiscal year for which the determination is 
     made.
       ``(II) Maximum percentage.--No State shall be allotted more 
     than 130 percent of its allotment percentage for the fiscal 
     year preceding the fiscal year for which the determination is 
     made.
       ``(iv) Small state minimum allotment.--No State shall 
     receive less than one-quarter of one percent of the 
     amount available under this subparagraph for a fiscal 
     year. Amounts necessary for increasing such payments to 
     States to comply with the preceding sentence shall be 
     obtained by ratably reducing the amounts to be paid to 
     other States.

     ``SEC. 313. ALLOCATION WITHIN STATES.

       ``(a) Reservations for State Activities.--
       ``(1) Adult employment and training.--
       ``(A) In general.--The Governor of the State shall reserve 
     not more than 15 percent of the total amount allotted to the 
     State under section 312(b)(1) for a fiscal year for statewide 
     activities for employment, job training, and related 
     assistance for adults.
       ``(B) Allowable activities.--Such activities may include--
       ``(i) subject to subparagraph (C), administration by the 
     State of programs under this title;
       ``(ii) capacity building and technical assistance to local 
     workforce development areas, full service employment and 
     training delivery systems, and service providers including 
     the development and training of staff and the development of 
     exemplary program activities;
       ``(iii) incentives for program coordination and 
     integration, performance awards, and research and 
     demonstrations;
       ``(iv) implementation of innovative incumbent worker 
     training programs, which may include the establishment and 
     implementation of an employer loan program to assist in 
     skills upgrading, and the establishment and implementation of 
     programs targeted to empowerment zones;
       ``(v) implementation of experimentation, model activities, 
     pilot projects, demonstration projects, and the provision of 
     employment and training services which further the goals and 
     purposes of this Act;
       ``(vi) additional assistance for the development and 
     implementation of the full service employment and training 
     delivery system established in accordance with section 123;
       ``(vii) support for a common management information system 
     across employment, training, literacy, and human resource 
     programs as identified in section 103;
       ``(viii) support for the identification of eligible 
     training providers as required under section 124; and
       ``(ix) implementation of innovative programs for displaced 
     homemakers and programs to increase the number of individuals 
     training and placed in nontraditional employment.
       ``(C) Limitation.--Of the amount reserved by the Governor 
     under subparagraph (A) not more than 5 percent of the total 
     amount allotted to the State under section 312(b)(1) for a 
     fiscal year may be used for administration by the State of 
     programs under this part.
       ``(2) Dislocated workers employment and training.--
       ``(A) In general.--The Governor of the State shall reserve 
     not more than 30 percent of the total amount allotted to the 
     State under section 312(b)(2) for a fiscal year for statewide 
     activities for employment, job training, and related 
     assistance for dislocated workers.
       ``(B) Required activities.--Such activities shall include--
       ``(i) rapid response activities carried out by a designated 
     State dislocated worker unit, working in conjunction with the 
     local workforce development board and the chief elected 
     official in an affected local workforce development area; and
       ``(ii) additional assistance to areas that experience 
     disasters, mass layoffs or plant closings, or other events 
     that precipitate substantial increases in the number of 
     unemployed workers, working in conjunction with the local 
     workforce development board and the chief elected official in 
     affected local workforce development areas.
       ``(C) Discretionary activities.--Such activities may 
     include those activities described in paragraph (1)(B).
       ``(B) Limitation.--Of the amount reserved by the Governor 
     under subparagraph (A) not more than 10 percent of the total 
     amount allotted to the State under section 312(b)(2) for a 
     fiscal year may be used for activities described in paragraph 
     (1)(B) and of that amount not more than 5 percent of the 
     total amount allotted to the State under section 312(b)92) 
     for a fiscal year may be used for administration by the State 
     of programs under this part.
       ``(b) Within State Allocation.--
       ``(1) Allocation.--
       ``(A) In general.--The Governor of the State shall allocate 
     the remainder of the amounts allotted to the State under 
     section 312 to workforce development areas designated under 
     section 121 for the purpose of providing a single system of 
     employment and training services for adults and dislocated 
     workers in accordance with section 314.
       ``(B) Additional requirements.--(i) Funds allocated under 
     paragraph (2)(B), shall be used by a local workforce 
     development area to contribute proportionately to the costs 
     of the local full service employment and training delivery 
     system, and to pay for services provided to adults, in the 
     local area, consistent with section 314.
       ``(ii) Funds allocated under paragraph (2)(C), shall be 
     used by a local workforce development area to contribute 
     proportionately to the costs of the local full service 
     employment and training delivery system, and to pay for 
     services provided to dislocated workers, in the local area, 
     consistent with section 314.
       ``(2) Methods.--
       ``(A) In general.--The Governor, through the collaborative 
     process under section 102, and other consultation with local 
     chief elected officials in the local workforce development 
     areas, shall allocate the remainder of funds described in 
     subsection (a)(1)(A) for adult employment and training in 
     accordance with subparagraph (B), and the funds described in 
     subsection (a)(2)(A) for dislocated workers in accordance 
     with subparagraph (C).
       ``(B) Adult employment and training allocations.--
       ``(i) Adult Employment and training formula allocations.--
     Each State shall allocate not less than 70 percent of the 
     remainder of funds described in subsection (a)(1)(A) to 
     workforce development areas within the State pursuant to the 
     formula contained in clause (ii) for the provision of adult 
     employment and training services in accordance with 
     section 314.

[[Page H2828]]

       ``(ii) Formula.--Of the amounts described in clause (i)--
       ``(I) 33\1/3\ percent shall be allocated on the basis of 
     the relative number of unemployment individuals residing in 
     areas of substantial unemployment in each workforce 
     development area as compared to total number of such 
     unemployed individuals in all such areas of substantial 
     unemployment in the State;
       ``(II) 33\1/3\ percent shall be allocated on the basis of 
     the relative excess number of unemployed individuals who 
     resident in each workforce development area as compared to 
     the total excess number of unemployed individuals in all 
     workforce development areas in the State; and
       ``(III) 33\1/3\ percent shall be allocated on the basis of 
     the relative number of economically disadvantaged adults in 
     each workforce development area as compared to the total 
     number of disadvantaged adults in all workforce development 
     areas in the State.
       ``(iii) Adult employment and training discretionary 
     allocation.--The State, through the collaborative process, is 
     authorized to allocate not more than 30 percent of the 
     remainder of funds described in subsection (a)(1)(A) to 
     workforce development areas for the provision of adult 
     employment and training services in accordance with section 
     314. Such funds shall be allocated to urban, rural, and 
     suburban areas throughout the State and shall be allocated 
     promptly in accordance with section 162(e).
       ``(C) Dislocated worker employment and training 
     allocations.--
       ``(i) Dislocated worker employment and training formula 
     allocations.--Each State shall allocate not less than 70 
     percent of the remainder of funds described in subsection 
     (a)(2)(A) to workforce development areas within the State 
     pursuant to the formula contained in clause (ii) for the 
     provision of employment and training services to dislocated 
     workers in accordance with section 314.
       ``(ii) Formula.--Of the amounts described in clause (i)--
       ``(I) 33\1/3\ percent shall be allocated on the basis of 
     the relative number of unemployed individuals residing in 
     areas of substantial unemployment in each workforce 
     development area as compared to the total number of such 
     unemployed individuals in all such areas of substantial 
     unemployment in the State;
       ``(II) 33\1/3\ percent shall be allocated on the basis of 
     the relative excess number of unemployed individuals who 
     resident in each workforce development area as compared to 
     the total excess number of unemployed individuals in all 
     workforce development areas in the State; and
       ``(III) 33\1/3\ percent shall be allocated on the basis of 
     the relative number of individuals who have been unemployed 
     for 15 weeks or more within each workforce development 
     area of the State as compared to the total number of such 
     individuals in all workforce development areas in the 
     State.
       ``(iii) Dislocated worker employment and training 
     discretionary allocation.--The State, through the 
     collaborative process, is authorized to allocate not more 
     than 30 percent of the remainder of funds described in 
     subsection (a)(2)(A) to workforce development areas for the 
     provision employment and training services to dislocated 
     workers in accordance with section 314. Such funds shall be 
     allocated to urban, rural, and suburban areas throughout the 
     State and shall be allocated promptly in accordance with 
     section 162(e).
       ``(3) Transfer authority.--A local workforce development 
     area is authorized to transfer up to 20 percent of the funds 
     received under this subsection between adult employment and 
     training and dislocated worker allocations if such transfer 
     is approved by the Governor.

     ``SEC. 314. USE OF AMOUNTS.

       ``(a) Core Services.--Amounts allocated for adults under 
     section 313(b)(2)(B) and for dislocated workers under section 
     313(b)(2)(C) shall be used to provide core services described 
     in section 123(d) to adults and dislocated workers, 
     respectively, through a full service employment and training 
     delivery system in accordance with such section.
       ``(b) Intensive Services.--
       ``(1) In general.--Amounts allocated for adults under 
     section 313(b)(2)(B) and for dislocated workers under section 
     313(b)(2)(C) shall be used to provide intensive services to 
     adults and dislocated workers, respectively--
       ``(A)(i) who are unable to obtain employment through core 
     services under subsection (a); and
       ``(ii) who have been determined to be in need of more 
     intensive services in order to gain employment; or
       ``(B)(i) who are employed but are economically 
     disadvantaged despite such employment; and
       ``(ii) who are determined to be in need of such intensive 
     services in order to gain employment that allows for self-
     sufficiency.
       ``(2) Delivery of services.--Such intensive services shall 
     be provided--
       ``(A) directly through full service eligible providers 
     identified pursuant to section 123(c); or
       ``(B) through contracts through full service employment and 
     training delivery systems with service providers approved by 
     the local workforce development board, which may include 
     private, for-profit providers.
       ``(3) Types of services.--Such intensive services may 
     include the following:
       ``(A) Comprehensive and specialized assessments of the 
     skill levels and service needs of adults, which may include--
       ``(i) diagnostic testing and other assessment tools; and
       ``(ii) in-depth interviewing and evaluation to identify 
     employment barriers and appropriate employment goals.
       ``(B) Development of an individual employment plan, to 
     identify the employment goals, appropriate achievement 
     objectives, and the appropriate combination of services for 
     the participant to achieve the employment goal.
       ``(C) Group counseling.
       ``(D) Individual counseling and career planning.
       ``(E) Case management for participants receiving training 
     services under subsection (c).
       ``(F) Follow-up services for participants placed in 
     training or employment, for up to 1 year, to assist in 
     retention or advancement in employment.
       ``(c) Training Services.--
       ``(1) In general.--Amounts allocated for adults under 
     section 313(b)(2)(B) and for dislocated workers under section 
     313(b)(2)(C) shall be used to provide training services to 
     adults and dislocated workers, respectively--
       ``(A) who are unable to obtain employment through core 
     services under subsection (a);
       ``(B) who are in need of training services in order to gain 
     employment as a result of determinations made through--
       ``(i) initial assessments under subsection (a); or
       ``(ii) comprehensive and specialized assessments under 
     subsection (b)(3)(A); or
       ``(C)(i) who are employed but are economically 
     disadvantaged despite such employment; and
       ``(ii) who are determined to be in need of such training 
     services in order to gain employment that allows for self-
     sufficiency.
       ``(2) Participant qualification.--
       ``(A) Requirements.--Except as provided in subparagraph 
     (B), 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) require assistance beyond the assistance made 
     available under other grant assistance programs, including 
     Federal Pell Grants.
       ``(B) Reimbursements.--Training services may be provided 
     under this subsection to an individual who otherwise meets 
     the requirements of this subsection while an application for 
     a Federal Pell Grant or other grant assistance is pending, 
     except that if such individual is subsequently awarded a 
     Federal Pell Grant or other grant assistance, appropriate 
     reimbursement shall be made to the local workforce 
     development area from such Federal Pell Grant or other 
     grant assistance.
       ``(3) Provider qualification.--Such training services shall 
     be provided through training providers identified under in 
     accordance with section 124.
       ``(4) Types of services.--Such training services may 
     include the following:
       ``(A) Basic skills training, including remedial education, 
     literacy training, and English literacy program instruction.
       ``(B) Occupational skills training, including training for 
     nontraditional employment.
       ``(C) On-the-job training.
       ``(D) Programs that combine workplace training with related 
     instruction, which may include cooperative education 
     programs.
       ``(E) Training programs operated by the private sector.
       ``(F) Skill upgrading and retraining.
       ``(G) Entrepreneurial training.
       ``(H) Employability training to enhance basic workplace 
     competencies.
       ``(I) Customized training conducted with a commitment by an 
     employer or group of employers to employ an individual upon 
     successful completion of the training.
       ``(5) Individual choice requirements.--
       ``(A) In general.--All training services under this section 
     shall be provided through service delivery methods that, to 
     the extent practicable, maximize consumer choice in the 
     selection of eligible providers of training services.
       ``(B) Information on eligible providers.--Each local 
     workforce development board, through the full service 
     employment and training delivery system, shall make 
     available--
       ``(i) the list of eligible providers of training services 
     required under section 124, 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 section 124 
     relating to such providers.
       ``(C) Purchase of services.--An individual eligible for 
     training services under this section may select an eligible 
     provider of training services from the list of providers 
     described in subparagraph (B)(i). Upon such selection, the 
     full service eligible provider shall, to the extent 
     practicable, refer such individual to the selected eligible 
     provider of training services and arrange for payment for 
     such services.
       ``(6) Additional requirements.--
       ``(A) Use of skill grants.--
       ``(i) In general.--Except as provided in clause (ii) and 
     clause (iii), training services under this section shall be 
     provided through the use of skill grants in accordance with 
     this subsection, and shall be distributed to eligible 
     individuals through full service eligible providers or 
     affiliated sites as described in section 123.

[[Page H2829]]

       ``(ii) Exceptions.--Training services authorized under this 
     title may be provided pursuant to a contract for services in 
     lieu of a skill grant if the requirements of paragraph (5) 
     are met and if--
       ``(I) such services are on-the-job training provided by an 
     employer;
       ``(II) the local workforce development board determines 
     there are an insufficient number of qualified providers of 
     training services in the workforce development area to 
     accomplish the purposes of a skill grant system;
       ``(III) the local workforce development board determines 
     that the qualified providers of training services in the 
     workforce development area are unable to provide effective 
     services to special participant populations; or
       ``(IV) the local workforce development board decides to 
     enter into a direct training contract with a community based 
     organization.
       ``(iii) Transition.--Each State shall, not later than three 
     years after the date of the enactment of the Employment, 
     Training, and Literacy Enhancement Act of 1997, fully 
     implement the requirements of clause (i). Nothing in this Act 
     shall prohibit a State from beginning such implementation at 
     an earlier date.
       ``(B) Linkage to occupations in demand.--Training services 
     under this subsection shall be directly linked to occupations 
     for which there is a demand in the local workforce 
     development area, or in another area to which an adult 
     receiving such services is willing to relocate, except that a 
     local workforce development board may approve training in 
     occupations determined by the local board to be in sectors of 
     the economy which have a high potential for sustained demand 
     or growth in the local workforce development area.
       ``(d) Additional Uses of Amounts.--
       ``(1) Supportive services.--Amounts allocated for adults 
     under section 313(b)(2)(B) and for dislocated workers under 
     section 313(b)(2)(C) may be used to provide supportive 
     services for adults and dislocated workers, respectively--
       ``(A) who are receiving assistance under any of subsection 
     (a) through (c); and
       ``(B) who are unable to receive such services through other 
     programs providing such services.
       ``(2) Needs-related payments.--
       ``(A) In general.--Amounts allocated under section 313(b) 
     may be used to provide needs-related payments to adults and 
     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 programs under subsection (c).
       ``(B) Additional eligibility requirements.--In addition to 
     the requirements contained in subparagraph (A), a dislocated 
     worker who has exhausted unemployment insurance benefits may 
     be eligible to receive needs-related payments under this 
     paragraph only if such worker was enrolled in training by the 
     end of the 13th week of the worker's most recent lay-off, or, 
     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.
       ``(e) Priority.--From funds allocated to local workforce 
     development areas for adult employment and training under 
     section 313(b)(1)(B)(i), priority shall be given to 
     welfare recipients and other economically disadvantaged 
     individuals with multiple barriers to employment for 
     receipt of intensive services and training services 
     provided under subsections (b) and (c) of section 314, 
     respectively.


                      ``part b--national programs

     ``SEC. 321. NATIONAL EMERGENCY GRANTS.

       ``(a) In General.--From the amount reserved under section 
     312(a)(2), the Secretary of Labor 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, local workforce development 
     board, employer or employer association, worker-management 
     transition assistance committee or other employer-employee 
     entity, representative of employees, community development 
     corporation or community-based organization, or an industry 
     consortia.
       ``(c) Disaster Relief Employment Assistance Requirements.--
       ``(1) In general.--Funds made available under subsection 
     (a)(2)--
       ``(A) 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
       ``(B) may be expended through public private agencies and 
     organizations engaged in such projects.
       ``(2) Eligibility.--An individual shall be eligible to be 
     offered disaster relief employment under this section if such 
     individual is a dislocated worker or is temporarily or 
     permanently laid off as a consequence of the disaster.
       ``(3) Limitations on disaster relief employment.--No 
     individual shall be employed under this part for more than 6 
     months for work related to recovery from a single natural 
     disaster.''.

        TITLE IV--AMENDMENTS TO FEDERALLY ADMINISTERED PROGRAMS

     SUBTITLE A--EMPLOYMENT AND TRAINING PROGRAMS FOR NATIVE 
                   AMERICANS AND MIGRANT AND SEASONAL FARMWORKERS

     SEC. 401. NATIVE AMERICAN PROGRAM.

       Section 401 of the Job Training Partnership Act (29 U.S.C. 
     1671) is amended to read as follows:

     ``SEC. 401. NATIVE AMERICAN PROGRAMS.

       ``(a) Purpose.--
       ``(1) In general.--The purpose of this section is to 
     support employment and training activities for Indian, Alaska 
     Native, 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, Alaska Native, and Native Hawaiian communities in 
     accordance with the goals and values of such communities.
       ``(2)  Indian policy.--All programs assisted under this 
     section shall be administered in a manner consistent with the 
     principles of the Indian Self-Determination and Education 
     Assistance Act (25 U.S.C. 450 et seq.) and the government-to-
     government relationship between the Federal Government and 
     Indian tribal governments.
       ``(b) Definitions.--As used in this section:
       ``(1) Alaska native.--The term `Alaska Native' means a 
     Native as such term is defined in section 3(b) of the Alaska 
     Native Claims Settlement Act (43 U.S.C. 1602(b)).
       ``(2) Indian, indian tribe, and tribal organization.--The 
     terms `Indian', `Indian tribe', and `tribal organization' 
     have the 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) 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).
       ``(c) Program Authorized.--The Secretary of Labor shall 
     make grants to, or enter into contracts or cooperative 
     agreements with, Indian tribes, tribal organizations, Alaska 
     Native entities, Indian-controlled organizations serving 
     Indians, or Native Hawaiian organizations to carry out the 
     authorized activities described in subsection (d).
       ``(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, re-enter, or retain 
     unsubsidized employment.
       ``(2) Employment and training 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).
       ``(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 
     Secretary of Labor a plan that describes a 2-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

[[Page H2830]]

     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 Act; 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 Secretary of 
     Labor shall designate a single organizational unit that shall 
     have as its primary responsibility the administration of the 
     activities authorized under this section.
       ``(2) Regulations.--The Secretary of Labor shall consult 
     with the entities described in subsection (c)(1) in 
     establishing regulations to carry out this section, including 
     performance measures for entities receiving assistance under 
     such subsection, taking into account the economic 
     circumstances of such groups, and in developing a funding 
     distribution plan that takes into consideration previous 
     levels of funding.
       ``(3) Technical assistance.--The Secretary of Labor, 
     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. 402. MIGRANT AND SEASONAL FARMWORKER PROGRAM.

       Section 402 of the Job Training Partnership Act (29 U.S.C. 
     1672) is amended to read as follows:

     ``SEC. 402. MIGRANT AND SEASONAL FARMWORKERS PROGRAM.

       ``(a) In General.--The Secretary of Labor 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 
     and 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 and 
     seasonal farmworkers.
       ``(c) Program Plan.--
       ``(1) In general.--To be eligible to receive a grant or 
     enter into a contract under this section, an entity described 
     in subsection (b) shall submit to the Secretary of Labor a 
     plan that describes a 2-year strategy for meeting the needs 
     of migrant farmworkers and seasonal farmworkers and their 
     dependents 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 eligible 
     farmworkers and dependents to obtain or be retained in 
     unsubsidized employment or stabilize their unsubsidized 
     employment;
       ``(B) describe the related assistance and supportive 
     services to be provided and the manner in which such services 
     are to be integrated and coordinated 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 and 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 and seasonal farmworkers.
       ``(e) Consultation With Governors and Local Boards.--In 
     making grants and entering into contracts under this section, 
     the Secretary of Labor 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 measures 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)--
       ``(A) has been primarily employed in farm work that is 
     characterized by chronic unemployment or under employment; 
     and
       ``(B) is economically disadvantaged at the time of 
     application.''.

                         Subtitle B--Job Corps

     SEC. 411. STATEMENT OF PURPOSE.

       Section 421 of the Job Training Partnership Act (29 U.S.C. 
     1691) is amended in the first sentence by inserting after ``a 
     distinct national program'' the following: ``carried out in 
     collaboration with States and localities''.

     SEC. 412. INDIVIDUALS ELIGIBLE FOR THE JOB CORPS.

       Section 423 of the Job Training Partnership Act (29 U.S.C. 
     1693) is amended--
       (1) in paragraph (1), by striking ``14'' and inserting 
     ``16'';
       (2) in paragraph (2), by striking ``, and who requires'' 
     and all that follows and inserting a semicolon;
       (3) by redesignating paragraphs (3), (4), and (5) as 
     paragraphs (4), (5), and (6), respectively; and
       (4) by inserting after paragraph (2) the following:
       ``(3) is an individual who--
       ``(A) is deficient in basic skills;
       ``(B) is a school dropout;
       ``(C) is homeless or a runaway;
       ``(D) is a single parent; or
       ``(E) requires additional education, training, or intensive 
     counseling and related assistance in order to secure and hold 
     meaningful employment, participate successfully in regular 
     school work, qualify for other suitable training programs, or 
     satisfy Armed Forces requirements;''.

     SEC. 413. SCREENING AND SELECTION OF APPLICANTS; GENERAL 
                   PROVISIONS.

       Section 424(a) of the Job Training Partnership Act (29 
     U.S.C. 1694(a)) is amended--
       (1) in the first sentence, by adding at the end before the 
     period the following: ``after considering input from State, 
     local, and community groups and other interested parties'';
       (2) in the second sentence--
       (A) by inserting after ``public employment offices,'' the 
     following: ``full service eligible providers,''; and
       (B) by striking ``and agencies'' and inserting ``and 
     entities''; and
       (3) in the third sentence, by inserting after ``The rules 
     shall'' the following: ``require Job Corps applicants to pass 
     background checks, conducted in accordance with procedures 
     established by the Secretary, and''.

     SEC. 414. JOB CORPS CENTERS.

       Section 427 of the Job Training Partnership Act (29 U.S.C. 
     1697) is amended--
       (1) in subsection (a)(1), by adding at the end the 
     following: ``In selecting any 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.'';
       (2) in subsection (c) to read as follows:
       ``(c) The Secretary may select an entity to operate a 
     Civilian Conservation Center on a competitive basis if such a 
     center fails to meet performance criteria established by the 
     Secretary.''; and
       (3) by adding at the end the following:
       ``(d) Notwithstanding any other provision of law, any 
     proceeds from the sale of Job Corps center facilities shall 
     be retained by the Secretary to carry out the Job Corps 
     program.
       ``(e) Prior to the closure of any Job Corps center, the 
     Secretary shall ensure that--
       ``(1) the proposed decision to close the center is 
     announced in advance to the general public through 
     publication in the Federal Register or other appropriate 
     means;
       ``(2) the establishment of a reasonable comment period, not 
     to exceed 30 days, for interested individuals to submit 
     written comments to the Secretary;
       ``(3) the Members of Congress who represent districts 
     affected by the proposed decision to close the center are 
     notified within a reasonable period of time in advance of any 
     final decision to close the center; and
       ``(4) the geographic location of alternative Job Corps 
     centers is among the factors taken into account in the 
     decision to close the center.''.

     SEC. 415. STANDARDS OF CONDUCT.

       Section 430(a) of the Job Training Partnership Act (29 
     U.S.C. 1700(a)) is amended--
       (1) in the first sentence, by adding at the end before the 
     period the following: ``, including a policy of zero 
     tolerance for violence and illegal drugs under which 
     enrollees will receive mandatory terminations for specific 
     actions in accordance with regulations issued by the 
     Secretary'';
       (2) by inserting after the first sentence the following: 
     ``As part of the zero tolerance policy, drug testing of all 
     students shall be required in accordance with procedures 
     established by the Secretary.''; and
       (3) in the third sentence, by inserting after ``If 
     violations'' the following: ``of center standards other than 
     those covered by the zero tolerance policy''.

     SEC. 416. COUNSELING AND JOB PLACEMENT.

       Section 432(b) of the Job Training Partnership Act (29 
     U.S.C. 1702(b)) is amended in the first sentence by inserting 
     after ``determine their capabilities and'' the following: ``, 
     based on these capabilities,''.

     SEC. 417. EXPERIMENTAL AND DEVELOPMENTAL PROJECTS AND 
                   COORDINATION WITH OTHER PROGRAMS.

       Section 433(c)(1) of the Job Training Partnership Act (29 
     U.S.C. 1703(c)(1)) is amended

[[Page H2831]]

     in the first sentence by striking ``disseminate information'' 
     and inserting ``disseminate to Federal, State, and local 
     workforce development programs information and best 
     practices''.

                    Subtitle C--National Activities

     SEC. 421. RESEARCH, DEMONSTRATION, EVALUATION, AND CAPACITY 
                   BUILDING.

       Part D of the Job Training Partnership Act (29 U.S.C. 1731 
     et seq.) is amended by striking sections 451 through 454 and 
     inserting the following:

     ``SEC. 451. RESEARCH, DEMONSTRATION, EVALUATION, AND CAPACITY 
                   BUILDING.

       ``(a) In General.--The Secretary is authorized to establish 
     and carry out research, demonstration, evaluation, and 
     capacity building activities described in subsections (b) 
     through (f).
       ``(b) National Partnership and Special Training.--The 
     Secretary may award special grants to eligible entities to 
     carry out programs that are most appropriately administered 
     at the national level. Such activities may include--
       ``(1) partnership programs with national organizations with 
     special expertise in developing, organizing, and 
     administering employment and training services at the 
     national, State, and local levels, such as industry and labor 
     associations, public interest groups, community-based 
     organizations representative of groups that encounter special 
     difficulties in the labor market, and other organizations 
     with special knowledge or capabilities in education and 
     training; and
       ``(2) activities that--
       ``(A) address industry-wide skill shortages;
       ``(B) meet training needs that are best addressed on a 
     multi-state basis;
       ``(C) further the goals of increasing the competitiveness 
     of the United States labor force;
       ``(D) require technical expertise available at the national 
     level to serve the needs of particular client groups that 
     encounter significant barriers to employment and who the 
     Secretary determines require special assistance; or
       ``(E) promote and experiment with model activities, pilot 
     projects, and demonstration projects which further the goals 
     and purposes of this Act.
       ``(c) Research.--The Secretary is authorized to conduct 
     continuing research, which may include studies and other 
     methods and techniques, that will aid in the solution of the 
     employment and training problems of the United States. Such 
     studies may include the extent to which individuals who 
     participate in programs established under this title achieve 
     self-sufficiency as a result of such participation, including 
     the identification by States and localities, to the extent 
     practicable, of indicators measuring such self-sufficiency.
       ``(d) Pilot and Demonstration Programs.--
       ``(1) In general.--The Secretary is authorized to conduct 
     pilot and demonstration programs for the purpose of 
     developing and improving techniques and demonstrating the 
     effectiveness of specialized methods in addressing employment 
     and training needs which may include--
       ``(A) the establishment of advanced manufacturing 
     technology skill centers developed through local partnerships 
     of industry, labor, education, community-based organizations, 
     and economic development organizations to meet unmet, high-
     tech skill needs of local communities;
       ``(B) projects that provide training to upgrade the skills 
     of employed workers who reside and are employed in enterprise 
     zones or empowerment communities;
       ``(C) programs conducted jointly with the Department of 
     Defense to develop training programs utilizing computer-based 
     and other innovative learning technologies;
       ``(D) projects that promote the use of distance learning, 
     enabling students to take courses through the use of media 
     technology such as videos, teleconferencing computers, and 
     the Internet;
       ``(E) projects that assist in providing comprehensive 
     services to increase the employment rates of out-of-school 
     youth residing in targeted high poverty areas within 
     empowerment zones and enterprise communities;
       ``(F) the establishment of partnerships with national 
     organizations with special expertise in developing, 
     organizing, and administering employment and training 
     services for persons with disabilities at the national, 
     State, and local levels;
       ``(G) projects to assist public housing authorities that 
     provide to public housing residents job training programs 
     that demonstrate successful job skills upgrading and 
     employment; and
       ``(H) projects that assist local workforce development 
     areas to develop and implement local self-sufficiency 
     standards to evaluate the degree to which program 
     participants are achieving self-sufficiency.
       ``(2) Grants and contracts.--The Secretary may award grants 
     and enter into contracts with entities to carry out this 
     subsection.
       ``(3) Evaluation and effectiveness.--Demonstration programs 
     assisted under this subsection shall include a formal, 
     rigorous evaluation component. Pilot programs assisted under 
     this subsection shall include an appropriate evaluation 
     component.
       ``(4) Special rule.--A demonstration program under this 
     subsection may not be assisted under this subsection for a 
     period of more than 7 years. A pilot program under this 
     subsection may not be assisted under this subsection for a 
     period of more than 3 years.
       ``(e) Evaluation.--
       ``(1) Activities.--
       ``(A) Job training.--The Secretary shall provide for the 
     continuing evaluation of programs conducted under this Act.
       ``(B) Other programs.--The Secretary may conduct 
     evaluations of federally-funded employment-related activities 
     under other provisions of law.
       ``(2) Techniques.--
       ``(A) Methods.--Evaluations conducted under paragraph (1) 
     shall utilize sound statistical methods and techniques for 
     the behavioral and social sciences, including the use of 
     control groups chosen by scientific random assignment 
     methodologies when feasible.
       ``(B) Effectiveness.--The Secretary shall evaluate the 
     effectiveness of programs authorized under this Act with 
     respect to--
       ``(i) the statutory goals; and
       ``(ii) the cost effectiveness and return-on-investment of 
     such programs based on the extent to which the programs--

       ``(I) enhance the employment and earnings of participants;
       ``(II) reduce income support costs (including the receipt 
     of welfare assistance);
       ``(III) improve the employment competencies of participants 
     in comparison to comparable persons who did not participate 
     in such programs; and
       ``(IV) to the extent feasible, increase the level of total 
     employment over the level that would have existed in the 
     absence of such programs.

       ``(f) Technical Assistance, Dissemination, and Replication 
     Activities.--The Secretary shall provide, coordinate, and 
     support the development of, appropriate training, technical 
     assistance, staff development, and other activities, 
     including assistance in replicating programs of demonstrated 
     effectiveness, to States and localities.

     ``SEC. 452. INCENTIVE GRANTS.

       ``From amounts authorized to be appropriated pursuant to 
     section 3(a)(3) to carry out this part for a fiscal year, the 
     Secretary is authorized to award incentive grants to States 
     consistent with the requirements of section 156(a).''.

     SEC. 422. NONTRADITIONAL EMPLOYMENT DEMONSTRATION PROGRAM.

       Section 456 of the Job Training Partnership Act (29 U.S.C. 
     1737) is hereby repealed.
                         Subtitle D--Repealers

     SEC. 451. REPEALERS.

       Parts F, G, H, I, and J of title IV of the Job Training 
     Partnership Act (29 U.S.C. 1771 et seq.) are hereby repealed.

            TITLE V--AMENDMENTS TO ADULT EDUCATION PROGRAMS

     SEC. 501. REPEAL OF JOBS FOR EMPLOYABLE DEPENDENT INDIVIDUALS 
                   INCENTIVE BONUS PROGRAM.

       Title V of the Job Training Partnership Act (29 U.S.C. 1791 
     et seq.) is repealed.

     SEC. 502. AMENDMENT TO ADULT EDUCATION ACT.

       The Adult Education Act (20 U.S.C. 1201 et seq.) is amended 
     to read as follows:

       ``TITLE III--ADULT EDUCATION AND FAMILY LITERACY PROGRAMS

     ``SEC. 301. SHORT TITLE.

       ``This title may be cited as the `Adult Education and 
     Family Literacy Act'.

     ``SEC. 302. STATEMENT OF PURPOSE.

       ``It is the purpose of this title to assist States and 
     outlying areas to provide--
       ``(1) to adults, the basic educational skills necessary for 
     employment and self-sufficiency; and
       ``(2) to adults who are parents, the educational skills 
     necessary to be full partners in the educational development 
     of their children.

     ``SEC. 303. DEFINITION.

       ``For purposes of this title:
       ``(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 under State law; and
       ``(C) who--
       ``(i) lack sufficient mastery of basic educational skills 
     to enable the individuals to function effectively in society;
       ``(ii) do not have a certificate of graduation from a 
     school providing secondary education and who have not 
     achieved an equivalent level of education; or
       ``(iii) are unable to speak, read, or write the English 
     language.
       ``(2) Adult education and literacy activities.--The term 
     `adult education and literacy activities' has the meaning 
     given such term in section 4 of the Employment, Training, and 
     Literacy Enhancement Act.
       ``(3) Community-based organization.--The term `community-
     based organization' has the meaning given such term in 
     section 4 of the Employment, Training, and Literacy 
     Enhancement Act.
       ``(4) Direct and equitable access.--The term `direct and 
     equitable access', when used with respect to the requirement 
     in section 313(c)(2), means that--
       ``(A) all eligible providers are given the same opportunity 
     to apply for and receive funds under part A; and
       ``(B) the same announcement and application process is used 
     for all eligible providers.
       ``(5) Eligible agency.--The term `eligible agency' means--

[[Page H2832]]

       ``(A) the individual, entity, or agency in a State or an 
     outlying area responsible for administering or setting 
     policies for adult education and literacy services in such 
     State or outlying area pursuant to the law of the State or 
     outlying area; or
       ``(B) if no individual, entity, or agency is responsible 
     for administering or setting such policies pursuant to the 
     law of the State or outlying area, the individual, entity, or 
     agency in a State or outlying area responsible for 
     administering or setting policies for adult education and 
     literacy services in such State or outlying area on the date 
     of the enactment of the Employment, Training, and Literacy 
     Enhancement Act of 1997.
       ``(6) Eligible provider.--The term `eligible provider', 
     used with respect to adult education and literacy activities 
     described in section 314(b), means a provider determined to 
     be eligible for assistance in accordance with section 313.
       ``(7) English literacy program.--The term `English literacy 
     program' has the meaning given such term in section 4 of the 
     Employment, Training, and Literacy Enhancement Act.
       ``(8) Family literacy services.--The term `family literacy 
     services' has the meaning given such term in section 4 of the 
     Employment, Training, and Literacy Enhancement Act.
       ``(9) Individual of limited english proficiency.--The term 
     `individual of limited English proficiency' has the meaning 
     given such term in section 4 of the Employment, Training, and 
     Literacy Enhancement Act.
       ``(10) Individual with a disability.--The terms `individual 
     with a disability' and `individuals with disabilities' have 
     the meaning given such terms in section 4 of the Employment, 
     Training, and Literacy Enhancement Act.
       ``(11) Literacy.--The term `literacy' has the meaning given 
     such term in section 4 of the Employment, Training, and 
     Literacy Enhancement Act.
       ``(12) 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).
       ``(13) Outlying area.--The term `outlying area' has the 
     meaning given such term in section 4 of the Employment, 
     Training, and Literacy Enhancement Act.
       ``(14) Postsecondary educational institution.--The term 
     `postsecondary educational institution' has the meaning given 
     such term in section 4 of the Employment, Training, and 
     Literacy Enhancement Act.
       ``(15) Secretary.--The term `Secretary' means the Secretary 
     of Education.
       ``(16) State.--The term `State' has the meaning given such 
     term in section 4 of the Employment, Training, and Literacy 
     Enhancement Act.

     ``SEC. 304. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) In General.--There are authorized to be appropriated 
     to carry out this title such sums as may be necessary for 
     fiscal years 1998 through 2003.
       ``(b) Reservation of Funds for National Leadership 
     Activities.--For any fiscal year, the Secretary shall 
     reserve--
       ``(1) 1.5 percent of the amount appropriated under 
     subsection (a) (but not more than $6,500,000) to carry out 
     section 321; and
       ``(2) 1.5 percent of the amount appropriated under 
     subsection (a) (but not more than $6,500,000) to establish 
     and carry out the program of national leadership and 
     evaluation activities described in section 322.

                 ``PART A--GRANTS TO ELIGIBLE AGENCIES

     ``SEC. 311. AUTHORITY TO MAKE GRANTS.

       ``(a) In General.--In the case of each eligible agency that 
     in accordance with section 101 of the Employment, Training, 
     and Literacy Enhancement Act submits to the Secretary a plan, 
     the Secretary shall make a grant for each fiscal year for 
     which such plan is in effect to the eligible agency for the 
     purpose specified in subsection (b). The grant shall consist 
     of the initial and additional allotments determined for the 
     eligible agency under section 312.
       ``(b) Purpose of Grants.--The Secretary may make a grant 
     under subsection (a) only if the applicant involved agrees to 
     expend the grant for adult education and literacy activities 
     in accordance with the provisions of this part.

     ``SEC. 312. ALLOTMENTS.

       ``(a) Initial Allotments.--From the sums available for the 
     purpose of making grants under this part for any fiscal year, 
     the Secretary shall allot to each eligible agency that in 
     accordance with section 101 of the Employment, Training, 
     and Literacy Enhancement Act submits to the Secretary a 
     plan for the year an initial amount as follows:
       ``(1) $100,000, in the case of an eligible agency 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.
       ``(2) $250,000, in the case of any other eligible agency.
       ``(b) Additional Allotments.--
       ``(1) In general.--From the remainder available for the 
     purpose of making grants under this part for any fiscal year 
     after the application of subsection (a), the Secretary shall 
     allot to each eligible agency that receives an initial 
     allotment under such subsection an additional amount that 
     bears the same relationship to such remainder as the number 
     of qualifying adults in the State or outlying area of the 
     agency bears to the number of such adults in all States and 
     outlying areas.
       ``(2) Qualifying adult.--For purposes of this subsection, 
     the term `qualifying adult' means an adult who--
       ``(A) is at least 16 years of age, but less than 61 years 
     of age;
       ``(B) is beyond the age of compulsory school attendance 
     under the law of the State or outlying area;
       ``(C) does not have a certificate of graduation from a 
     school providing secondary education and has not achieved an 
     equivalent level of education; and
       ``(D) is not currently enrolled in secondary school.
       ``(c) Special Rule.--
       ``(1) In general.--Using funds not to exceed the amount 
     appropriated and reserved under the Adult Education Act for 
     fiscal year 1997 for the Republic of the Marshall Islands, 
     the Federated States of Micronesia, and the Republic of 
     Palau, the Secretary shall award grants, from funds made 
     available under subsections (a) and (b), 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 part in accordance with the provisions of 
     this part that the Secretary determines are not inconsistent 
     with this subsection.
       ``(2) Award basis.--The Secretary shall award grants 
     pursuant to paragraph (1) on a competitive basis and pursuant 
     to recommendations from the Pacific Region Educational 
     Laboratory in Honolulu, Hawaii.
       ``(3) 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 part for any fiscal 
     year that begins after September 30, 2001.
       ``(4) Administrative costs.--The Secretary may provide not 
     more than 5 percent of the funds made available for grants 
     under this subsection to pay the administrative costs of the 
     Pacific Region Educational Laboratory regarding activities 
     assisted under this subsection.
       ``(d) Hold-Harmless.--
       ``(1) In general.--Notwithstanding subsection (a)--
       ``(A) for fiscal year 1998, no eligible agency shall 
     receive an allotment that is less than 90 percent of the 
     payments made to the State of the agency for fiscal year 1997 
     for programs for which funds were authorized to be 
     appropriated under section 313 of the Adult Education Act (as 
     such Act was in effect on the day before the date of the 
     enactment of the Employment, Training, and Literacy 
     Enhancement Act of 1997); and
       ``(B) for fiscal year 1999 and each succeeding fiscal year, 
     no eligible agency shall receive an allotment that is less 
     than 90 percent of the amount the agency received for the 
     preceding fiscal year for programs under this Act.
       ``(2) Ratable reduction.--If for any fiscal year the amount 
     available for allotment under this section is insufficient to 
     satisfy the provisions of paragraph (1), the Secretary shall 
     ratably reduce the payments to all eligible agencies, as 
     necessary.
       ``(e) Reallotment.--The portion of any eligible agency's 
     allotment under subsection (a) or (b) for a fiscal year that 
     the Secretary determines will not be required for the period 
     such allotment is available for carrying out activities under 
     this part, shall be available for reallotment from time to 
     time, on such dates during such period as the Secretary shall 
     fix, to other eligible agencies in proportion to the original 
     allotments to such agencies under such subsection for such 
     year.

     ``SEC. 313. USE OF FUNDS.

       ``(a) In General.--Of the sum that is made available under 
     this part to an eligible agency for any program year--
       ``(1) 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; and
       ``(2) not more than 15 percent shall be made available to 
     carry out activities described in section 314(a), of which 
     not more than 5 percentage points, or $50,000, whichever is 
     greater, shall be made available for administrative expenses 
     at the State level (or the level of the outlying area).
       ``(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)(1) 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--

[[Page H2833]]

       ``(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) Required local activities.--An eligible agency shall 
     require that each provider receiving a grant under this 
     section use the grant in accordance with section 314(b).
       ``(2) 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.
       ``(3) 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 
     303(1), except that such agency may use such funds for such 
     purpose if such programs, services, or activities are related 
     to family literacy services.
       ``(4) Considerations.--In awarding grants under this 
     section, the eligible agency shall consider--
       ``(A) the degree to which the provider will establish 
     measurable goals for client outcomes, including the core 
     indicators of performance pertaining to adult education set 
     forth in section 154 of the Employment, Training, and 
     Literacy Enhancement Act, that are tied to challenging State 
     performance standards for literacy proficiency;
       ``(B) the past effectiveness of a provider in improving the 
     literacy skills of adults and families, and, after the 1-year 
     period beginning with the adoption of a State's core 
     indicators and benchmarks under the Employment, Training, and 
     Literacy Enhancement Act, the success of a provider receiving 
     funding under this Act in meeting or exceeding such 
     benchmarks, especially with respect to those adults with the 
     lowest levels of literacy;
       ``(C) the degree to which the program is staffed by well-
     trained instructors and administrators;
       ``(D) the degree to which the provider will coordinate with 
     other available resources in the community, such as by 
     establishing strong links with elementary and secondary 
     schools, post-secondary educational institutions, full 
     service employment and training delivery centers, job 
     training programs, and other literacy and social service 
     available in the community;
       ``(E) the commitment of the provider to serve individuals 
     in the community who are most in need of literacy services, 
     including individuals who are low income, who have minimal 
     literacy skills, or both;
       ``(F) whether or not the program is of sufficient intensity 
     and duration for participants to achieve substantial learning 
     gains; and
       ``(G) the degree to which the provider will offer flexible 
     schedules and necessary support services (such as child care 
     and transportation) to enable individuals, including 
     individuals with disabilities or other special needs, to 
     participate in adult education and literacy activities.
       ``(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. 314. ADULT EDUCATION AND LITERACY ACTIVITIES.

       ``(a) Permissible Agency Activities.--An eligible agency 
     may use funds made available to the eligible agency under 
     section 313(a)(2) 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 required under 
     subsection (b), including instruction provided by volunteers 
     or by personnel of a State or outlying area;
       ``(2) the provision of technical assistance to eligible 
     providers of activities authorized under this section;
       ``(3) the provision of technology assistance, including 
     staff training, to eligible providers of activities 
     authorized under 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;
       ``(5) the monitoring and evaluation of the quality of, and 
     the improvement in, activities and services authorized under 
     this section;
       ``(6) incentives for--
       ``(A) program coordination and integration; and
       ``(B) performance awards;
       ``(7) developing and disseminating curricula;
       ``(8) other activities of statewide significance that 
     promote the purposes of this title; and
       ``(9) the provision of support services, such as 
     transportation, child care, and other assistance designed to 
     increase rates of enrollment in, and successful completion 
     of, adult education and literacy activities, to adults 
     enrolled in such activities.
       ``(b) Required Local Activities.--The eligible agency shall 
     require that each eligible provider receiving a grant under 
     section 313 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, including 
     services provided on the work site.
       ``(2) Family literacy services.
       ``(3) English literacy programs.
       ``(c) State-Imposed Requirements.--Whenever a State 
     implements any rule or policy relating to the administration 
     or operation of a program authorized under this title that 
     has the effect of imposing a requirement that is not imposed 
     under Federal law (including any rule or policy based on a 
     State interpretation of a Federal statute, regulation, or 
     guideline), it shall identify, to eligible providers, the 
     rule or policy as being State-imposed.

     ``SEC. 315. FISCAL REQUIREMENTS AND RESTRICTIONS RELATED TO 
                   USE OF FUNDS.

       ``(a) Supplement not Supplant.--Funds made available under 
     this part for adult education and literacy activities shall 
     supplement, and may not supplant, other public funds expended 
     to carry out activities described in section 314.
       ``(b) Maintenance of Effort.--
       ``(1) In general.--
       ``(A) Determination.--An eligible agency may receive funds 
     under this Act for any fiscal year if the Secretary finds 
     that the fiscal effort per student or the aggregate 
     expenditures of such eligible agency for adult education and 
     literacy, in the second preceding fiscal year, was not less 
     than 90 percent of the fiscal effort per student or the 
     aggregate expenditures of such eligible agency for adult 
     education and literacy, in the third preceding fiscal year.
       ``(B) Proportionate reduction.--Subject to paragraphs (2), 
     (3), and (4), for any program year with respect to which the 
     Secretary determines under subparagraph (A) that the fiscal 
     effort and the aggregate expenditures of an eligible agency 
     for the preceding program year were less than such effort and 
     expenditures for the second preceding program year, the 
     Secretary--
       ``(i) shall determine the percentage decreases in such 
     effort and in such expenditures; and
       ``(ii) shall decrease the payment made under this part for 
     such program year to the agency for adult education and 
     literacy activities by the lesser of such percentages.
       ``(2) Computation.--In computing the fiscal effort and 
     aggregate expenditures under paragraph (1), the Secretary 
     shall exclude capital expenditures and special one-time 
     project costs.
       ``(3) Decrease in federal support.--If the amount made 
     available for adult education and literacy activities under 
     this part for a fiscal year is less than the amount made 
     available for adult education and literacy activities under 
     this part for the preceding fiscal year, then the fiscal 
     effort per student and the aggregate expenditures of an 
     eligible agency required in order to avoid a reduction under 
     paragraph (1)(B) shall be decreased by the same percentage as 
     the percentage decrease in the amount so made available.
       ``(4) Waiver.--The Secretary may waive the requirements of 
     this subsection for 1 fiscal year only, if the Secretary 
     determines that a waiver would be equitable due to 
     exceptional or uncontrollable circumstances, such as a 
     natural disaster or an unforeseen and precipitous decline in 
     the financial resources of the State of the eligible agency. 
     If the Secretary grants a waiver under the preceding sentence 
     for a fiscal year, the level of effort required under 
     paragraph (1) shall not be reduced in the subsequent fiscal 
     year because of the waiver.
       ``(c) Expenditures of Non-Federal Funds for Adult Education 
     and Literacy Activities.--For any program year for which a 
     grant is made to an eligible agency under this part, the 
     eligible agency 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 the eligible agency under this part for adult 
     education and literacy activities.

                      ``PART B--NATIONAL PROGRAMS

     ``SEC. 321. NATIONAL INSTITUTE FOR LITERACY.

       ``(a) Purpose.--The National Institute for Literacy shall--
       ``(1) provide national leadership with respect to literacy 
     in the United States;
       ``(2) coordinate literacy services; and
       ``(3) serve as a national resource for adult education and 
     family literacy by providing the best and most current 
     information available and supporting the creation of new ways 
     to offer services of proven effectiveness.
       ``(b) 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

[[Page H2834]]

     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).
       ``(c) Duties.--
       ``(1) In general.--In order to provide leadership for the 
     improvement and expansion of the system for delivery of 
     literacy services, the Institute is authorized--
       ``(A) to establish, and make accessible, a national 
     electronic data base of information that disseminates 
     information to the broadest possible audience within the 
     literacy and basic skills field, and that includes--
       ``(i) effective practices in the provision of literacy and 
     basic skills instruction, including the integration of such 
     instruction with occupational skills training;
       ``(ii) public and private literacy and basic skills 
     programs and Federal, State, and local policies affecting the 
     provision of literacy services at the National, State, and 
     local levels;
       ``(iii) opportunities for technical assistance, meetings, 
     conferences, and other opportunities that lead to the 
     improvement of literacy and basic skills services; and
       ``(iv) a communication network for literacy programs, 
     providers, social service agencies, and students;
       ``(B) to coordinate support for the provision of literacy 
     and basic skills services across Federal agencies and at the 
     State and local levels;
       ``(C) to coordinate the support of research and development 
     on literacy and basic skills in families and adults across 
     Federal agencies, especially with the Office of Educational 
     Research and Improvement in the Department of Education, and 
     to carry out basic and applied research and development on 
     topics that are not being investigated by other organizations 
     or agencies, such as the special literacy needs of 
     individuals with learning disabilities;
       ``(D) to collect and disseminate information on methods of 
     advancing literacy that show great promise;
       ``(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 adult education and literacy activities for 
     the purpose of sharing information, data, research, 
     expertise, and literacy resources;
       ``(F) to coordinate and share information with national 
     organizations and associations that are interested in 
     literacy and workforce development;
       ``(G) to inform the development of policy with respect to 
     literacy and basic skills; and
       ``(H) to undertake other activities that lead to the 
     improvement of the Nation's literacy delivery system and that 
     complement other such efforts being undertaken by public and 
     private agencies and organizations.
       ``(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.
       ``(d) 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.
       ``(e) 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 Interagency 
     Group, 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;
       ``(vi) representatives of employees; and
       ``(vii) State directors of adult education.
       ``(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.
       ``(f) Gifts, Bequests, and Devises.--The Institute may 
     accept, administer, and use gifts or donations of services, 
     money, or property, both real and personal.
       ``(g) 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.
       ``(h) Director.--The Interagency Group, after considering 
     recommendations made by the Board, shall appoint and fix the 
     pay of a Director.
       ``(i) 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.
       ``(j) Experts and Consultants.--The Board and the Institute 
     may procure temporary and intermittent services under section 
     3109(b) of title 5, United States Code.
       ``(k) Report.--The Institute shall submit a report 
     biennially to the committees of the United States House of 
     Representatives and the Senate having jurisdiction over this 
     title. 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

[[Page H2835]]

       ``(3) any additional minority, or dissenting views 
     submitted by members of the Board.
       ``(l) 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.

     ``SEC. 322. NATIONAL LEADERSHIP ACTIVITIES.

       ``The Secretary shall establish and carry out a program of 
     national leadership activities to enhance the quality of 
     adult education and family literacy programs nationwide. Such 
     activities may include the following:
       ``(1) Providing technical assistance to recipients of 
     assistance under part A in developing and using benchmarks 
     and performance measures for improvement of adult education 
     and literacy activities, including family literacy services.
       ``(2) Awarding grants, on a competitive basis, to a 
     postsecondary educational institution, a public or private 
     organization or agency, or a consortium of such institutions, 
     organizations, or agencies to carry out research and 
     technical assistance--
       ``(A) for the purpose of developing, improving, and 
     identifying the most successful methods and techniques for 
     addressing the education needs of adults; and
       ``(B) to increase the effectiveness of, and improve the 
     quality of, adult education and literacy activities, 
     including family literacy services.
       ``(3) Providing for the conduct of an independent 
     evaluation and assessment of adult education and literacy 
     activities, through studies and analyses conducted 
     independently through grants and contracts awarded on a 
     competitive basis. Such evaluation and assessment shall 
     include descriptions of--
       ``(A) the effect of benchmarks, performance measures, and 
     other measures of accountability on the delivery of adult 
     education and literacy activities, including family literacy 
     services;
       ``(B) 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 services;
       ``(C) the extent to which the provision of support services 
     to adults enrolled in adult education and family literacy 
     programs increases the rates of enrollment in, and successful 
     completion of, such programs; and
       ``(D) the extent to which eligible agencies have 
     distributed funds under part A to meet the needs of adults 
     through community-based organizations.
       ``(4) Carrying out demonstration programs, replicating 
     model programs, disseminating best practices information, and 
     providing technical assistance, for the purposes of 
     developing, improving, and identifying the most successful 
     methods and techniques for providing the activities assisted 
     under part A.
       ``(5) Other activities designed to enhance the quality of 
     adult education and literacy nationwide, such as providing 
     incentive grants to States consistent with section 156 of the 
     Employment, Training, and Literacy Enhancement Act.''.

     SEC. 503. REPEAL OF NATIONAL LITERACY ACT OF 1991.

       The National Literacy Act of 1991 (Public Law 102-73; 105 
     Stat. 333) is hereby repealed.

     SEC. 504. CONFORMING AMENDMENTS.

       (a) Refugee Education Assistance Act.--Subsection (b) of 
     section 402 of the Refugee Education Assistance Act of 1980 
     (8 U.S.C. 1522 note) is hereby repealed.
       (b) Elementary and Secondary Education Act of 1965.--
       (1) Section 1206 of esea.--Section 1206(a)(1)(A) of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6366(a)(1)(A)) is amended by striking ``an adult basic 
     education program'' and inserting ``adult education and 
     literacy activities''.
       (2) 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 303 of the 
     Adult Education and Family Literacy Act;''.
       (3) 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 303 of the 
     Adult Education and Family Literacy Act.''.

                   TITLE VI--MISCELLANEOUS PROVISIONS

     SEC. 601. REPEALERS.

       (a) Amendments to the Wagner-Peyser Act.--Section 601 of 
     the Job Training Partnership Act is hereby repealed.
       (b) Amendments to Part C of Title IV of the Social Security 
     Act.--Section 602 of the Job Training Partnership Act is 
     hereby repealed.
       (c) Earnings Disregard.--Section 603 of the Job Training 
     Partnership Act is hereby repealed.
       (d) Savings Provision.--The repeals made by subsections 
     (a), (b), and (c), of any provision of law described in any 
     such subsection that amended or repealed another provision of 
     law does not in any way affect that amendment or repeal.

     SEC. 602. CONFORMING AMENDMENTS.

       (a) Enforcement of Military Selective Service Act.--Section 
     604 of the Job Training Partnership Act (29 U.S.C. 1504) is 
     amended--
       (1) by redesignating such section as section 182 of such 
     Act; and
       (2) by inserting such section after section 181 of such 
     Act.
       (b) State Job Bank Systems.--Section 605 of such Act (29 
     U.S.C. 1505) is amended--
       (1) by striking subsection (a);
       (2) in subsection (b), by striking ``shall make such'' and 
     inserting ``may make'';
       (3) by redesignating subsections (b) and (c) as subsections 
     (a) and (b), respectively;
       (4) by redesignating such section as section 466 of such 
     Act; and
       (5) by adding such section after section 465 of such Act.
       (c) State Labor Market Information Programs.--Section 125 
     of such Act (29 U.S.C. 1535) is amended--
       (1) by redesignating such section as section 467; and
       (2) by inserting such section after section 466.

    TITLE VII--AMENDMENTS TO STATE HUMAN RESOURCE INVESTMENT COUNCIL

     SEC. 701. AMENDMENTS TO COUNCIL.

       (a) Establishment and Functions.--Section 701 of the Job 
     Training Partnership Act (29 U.S.C. 1792) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1)--
       (i) by striking ``shall review'' and inserting ``reviews''; 
     and
       (ii) by striking ``advise'' and inserting ``advises'';
       (B) in paragraph (2), by striking ``shall advise'' and 
     inserting ``advises'';
       (C) in paragraph (3), by striking ``shall carry'' and 
     inserting ``carries'';
       (D) by striking paragraph (4);
       (E) in paragraph (5), by striking ``may recommend'' and 
     inserting ``recommends'';
       (F) in paragraph (6), to read as follows:
       ``(6) prepares and recommends to the Governor a strategy to 
     be included as part of the State plan under section 101 that 
     would accomplish the goals developed pursuant to paragraph 
     (4);'';
       (G) in paragraph (7)--
       (i) by striking ``may monitor'' and inserting ``monitors''; 
     and
       (ii) by striking the period at the end and inserting ``; 
     and'';
       (H) by adding at the end the following:
       ``(8) may serve as the collaborative process described in 
     section 102.''; and
       (I) by redesignating paragraphs (5) through (8) (as amended 
     or added, as the case may be) as paragraphs (4) through (7), 
     respectively; and
       (2) in subsection (b)--
       (A) in paragraph (1)--
       (i) in subparagraph (A), by striking ``(A) Except as 
     provided in subparagraph (B), for purposes'' and inserting 
     ``For purposes''; and
       (ii) by striking subparagraph (B); and
       (B) in paragraph (2)--
       (i) by striking ``applicable Federal human resource 
     programs'' and all that follows through ``may include'' and 
     inserting ``applicable Federal human resource programs may 
     include'';
       (ii) in clause (v), by striking the ``and'' at the end;
       (iii) in clause (vii)--

       (I) by adding at the end before the semicolon the 
     following: ``and title I of the Personal Responsibility and 
     Work Opportunity Reconciliation Act of 1996''; and
       (II) by redesignating such clause as clause (vi);

       (iv) in subparagraph (B)--

       (I) by striking ``may not include programs authorized 
     under''; and
       (II) by redesignating such subparagraph as clause (vii); 
     and

       (v) by redesignating clauses (i) through (vii) as 
     subparagraphs (A) through (G), respectively, and moving the 
     margin for each such subparagraph two ems to the left.
       (b) Composition.--Section 702 of such Act (29 U.S.C. 1792a) 
     is amended--
       (1) by striking subsections (a), (b), and (c); and
       (2) by inserting the following:
       ``Each State Council shall be composed of the individuals 
     and entities described in section 102(a).''.
       (c) Administration.--Section 703 of such Act (29 U.S.C. 
     1792b) is amended--
       (1) in subsection (a)(2)--
       (A) by inserting ``for State administrative expenses'' 
     after ``funds otherwise available''; and
       (B) by striking ``, including funds available'' and all 
     that follows through ``such Act'';
       (2) by striking subsection (c); and
       (3) by redesignating subsection (d) as subsection (c).

     SEC. 702. TRANSFER OF COUNCIL.

       Title VII of the Job Training Partnership Act (29 U.S.C. 
     1792 et seq.), as amended by section 701, is transferred to 
     the end of part A of title I of such Act, as amended by 
     section 111 of this Act.

     SEC. 703. CONFORMING AMENDMENTS.

       (a) In General.--Title VII of the Job Training Partnership 
     Act (29 U.S.C. 1792 et seq.), as transferred to the end of 
     part A of title I of such Act by section 702, is amended--
       (1) by amending the title heading to read as follows:

[[Page H2836]]

     ``SEC. 103. STATE HUMAN RESOURCE INVESTMENT COUNCIL.'';

       (2) by redesignating sections 701 through 703 as 
     subsections (a) through (c), respectively, of section 103 (as 
     redesignated by paragraph (1)) and conforming the subsection 
     headings and margins accordingly;
       (3) by redesignating each subsection, paragraph, and 
     subparagraph of sections 701 through 703 (as such sections 
     existed immediately prior to the amendments made by paragraph 
     (2)) as a paragraph, subparagraph, and clause, respectively, 
     of section 103 (as redesignated by paragraph (1)) and 
     conforming the headings and margins accordingly; and
       (4) in subsection (a)(2)(B) (as redesignated), by striking 
     ``paragraph (1)'' and inserting ``subparagraph (A)''.
       (b) Additional Amendment.--Section 103 of the Job Training 
     Partnership Act, as redesignated by subsection (a)(2), is 
     amended by striking ``title'' each place it appears (except 
     in subsection (a)(2)(B)(vi) of such section) and inserting 
     ``section''.

              TITLE VIII--AMENDMENTS TO WAGNER-PEYSER ACT

     SEC. 801. 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 ``Employment, Training, and 
     Literacy Enhancement Act'';
       (2) by striking paragraphs (2) and (4);
       (3) by redesignating paragraphs (3) and (5) as paragraphs 
     (5) and (6), respectively;
       (4) by inserting after paragraph (1) the following:
       ``(2) the term `local workforce development area' means a 
     local workforce development area designated under section 121 
     of the Employment, Training, and Literacy Enhancement Act;
       ``(3) the term `local workforce development board' means a 
     local workforce development board established under section 
     122 of the Employment, Training, and Literacy Enhancement 
     Act;
       ``(4) the term `full service employment and training 
     delivery system' means a system established under section 123 
     of the Employment, Training, and Literacy Enhancement Act;''; 
     and
       (5) in paragraph (5) (as redesignated by paragraph (3)), by 
     striking the semicolon and inserting ``; and''.

     SEC. 802. 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--
       ``(1) shall assist in the coordination and development of a 
     nationwide system of labor exchange services for the general 
     public, provided as part of the full service employment and 
     training delivery systems of the States;
       ``(2) shall 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) shall 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) 
     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. 803. DESIGNATION OF STATE AGENCIES.

       Section 4 of the Wagner-Peyser Act (29 U.S.C. 49c) is 
     amended--
       (1) by striking ``, through its legislature,'' and 
     inserting ``pursuant to State statute'';
       (2) by inserting after ``the provisions of this Act and'' 
     the following: ``, in accordance with such State statute, the 
     Governor shall''; and
       (3) by striking ``United States Employment Service'' and 
     inserting ``Secretary''.

     SEC. 804. APPROPRIATIONS.

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

     SEC. 805. 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)(B), to read as follows:
       ``(B) Title III of the Employment, Training, and Literacy 
     Enhancement Act.'';
       (3) in subsection (d), by striking ``Job Training 
     Partnership Act'' and inserting ``Employment, Training, and 
     Literacy Enhancement Act''; 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 subsections (a) and (b) shall be provided as part of 
     the full service employment and training delivery system 
     established by the State.''.

     SEC. 806. 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 101 of the Employment, Training, and 
     Literacy Enhancement Act, 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. 807. FEDERAL ADVISORY COUNCIL.

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

     SEC. 808. 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. 809. EFFECTIVE DATE.

       The amendments made by this title shall take effect on July 
     1, 1998.
             TITLE IX--TECHNICAL AND CONFORMING AMENDMENTS
       Subtitle A--Amendments to the Job Training Partnership Act

     SEC. 901. SHORT TITLE; TABLE OF CONTENTS.

       Section 1 of the Job Training Partnership Act (29 U.S.C. 
     1501 note) is amended to read as follows:

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

       ``(a) Short Title.--This Act may be cited as the 
     `Employment, Training, and Literacy Enhancement Act'.
       ``(b) Table of Contents.--The table of contents of this Act 
     is as follows:

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

          ``TITLE I--STATE AND LOCAL ADMINISTRATIVE PROVISIONS

               ``Part A--State Administrative Provisions

``Sec. 101. State plan.
``Sec. 102. Collaborative process.
``Sec. 103. State Human Resource Investment Council.

               ``Part B--Local Administrative Provisions

``Sec. 121. Local workforce development areas.
``Sec. 122. Local workforce development boards.
``Sec. 123. Full service employment and training delivery system.
``Sec. 124. Identification of training providers.

                ``Part C--Program and Fiscal Provisions


                    ``Subpart 1--General Provisions

``Sec. 141. General program requirements.
``Sec. 142. Benefits.
``Sec. 143. Labor standards.
``Sec. 144. Grievance procedure.
``Sec. 145. Prohibition against Federal control of education.
``Sec. 146. Identification of additional imposed requirements.
``Sec. 147. Authority of State legislature.
``Sec. 148. Interstate agreements.


           ``Subpart 2--Performance Accountability Provisions

``Sec. 151. Performance accountability system.
``Sec. 152. Indicators of performance.
``Sec. 153. State adjusted benchmarks.
``Sec. 154. Core indicators of performance.
``Sec. 155. Report on performance.
``Sec. 156. Incentive grants and sanctions.


                     ``Subpart 3--Other Provisions

``Sec. 161. Program year.
``Sec. 162. Prompt allocation of funds.
``Sec. 163. Monitoring.
``Sec. 164. Fiscal controls; sanctions.
``Sec. 165. Reports; recordkeeping; investigations.
``Sec. 166. Administrative Adjudication.
``Sec. 167. Nondiscrimination.
``Sec. 168. Administrative provisions.
``Sec. 169. Utilization of services and facilities.
``Sec. 170. Obligational authority.
``Sec. 171. Limitation on certain costs.
``Sec. 172. Buy-American requirements.

                   ``Part D--Miscellaneous Provisions

``Sec. 181. Reference.
``Sec. 182. Enforcement of Military Selective Service Act.

 ``TITLE II--DISADVANTAGED YOUTH EMPLOYMENT AND TRAINING OPPORTUNITIES 
                                 GRANTS

``Sec. 201. Statement of purpose.
``Sec. 202. Authorization.
``Sec. 203. Allotment and allocation among States.
``Sec. 204. Allocation within States.
``Sec. 205. Eligibility for services.
``Sec. 206. Use of funds.
``Sec. 207. Selection of service providers.
``Sec. 208. Linkages.

    ``TITLE III--ADULT EMPLOYMENT AND TRAINING OPPORTUNITIES GRANTS

``Sec. 301. Purpose.

      ``Part A--Adult Employment and Training Opportunities Grants

``Sec. 311. Authorization.
``Sec. 312. Allotment among States.
``Sec. 313. Allocation within States.

[[Page H2837]]

       ``Sec. 314. Use of amounts.

                      ``Part B--National Programs

       ``Sec. 321. National emergency grants.

              ``TITLE IV--FEDERALLY ADMINISTERED PROGRAMS

  ``Part A--Employment and Training Programs for Native Americans and 
                    Migrant and Seasonal Farmworkers

       ``Sec. 401. Native American programs.
       ``Sec. 402. Migrant and seasonal farmworker program.

                          ``Part B--Job Corps

       ``Sec. 421. Statement of purpose.
       ``Sec. 422. Establishment of the Job Corps.
       ``Sec. 423. Individuals eligible for the Job Corps.
       ``Sec. 424. Screening and selection of applicants: general 
           provisions.
       ``Sec. 425. Screening and selection: special limitations.
       ``Sec. 426. Enrollment and assignment.
       ``Sec. 427. Job Corps centers.
       ``Sec. 428. Program activities.
       ``Sec. 429. Allowances and support.
       ``Sec. 430. Standards of conduct.
       ``Sec. 431. Community participation.
       ``Sec. 432. Counseling and job placement.
       ``Sec. 433. Experimental and developmental projects and 
           coordination with other programs.
       ``Sec. 433A. Job Corps centers for homeless families.
       ``Sec. 434. Advisory boards and committees.
       ``Sec. 435. Participation of the States.
       ``Sec. 436. Application of provisions of Federal law.
       ``Sec. 437. Special provisions.
       ``Sec. 438. General provisions.
       ``Sec. 439. Donations.

                ``Part C--Veterans' Employment Programs

       ``Sec. 441. Authorization of programs.

                     ``Part D--National Activities

       ``Sec. 451. Research, demonstration, evaluation, and 
           capacity building.
       ``Sec. 452. Incentive grants.
       ``Sec. 453. Uniform reporting requirements.

                   ``Part E--Labor Market Information

       ``Sec. 461. Labor market information; availability of 
           funds.
       ``Sec. 462. Cooperative labor market information program.
       ``Sec. 463. Special federal responsibilities.
       ``Sec. 464. National Occupational Information Coordinating 
           Committee.
       ``Sec. 465. Job bank program.
       ``Sec. 466. State job bank systems.
       ``Sec. 467. State labor market information programs.''.

     SEC. 902. DEFINITIONS.

       Section 4 of such Act (29 U.S.C. 1503), as amended by 
     section 103, is further amended, as follows:
       (1) By striking the heading and the matter preceding 
     paragraph (1) and inserting the following:

     ``SEC. 4. DEFINITIONS.

       ``As used in this Act, the following definitions apply:''.
       (2) In paragraph (3), by striking ``The term'' and 
     inserting ``Area of substantial unemployment.--The term''.
       (3) In paragraph (7), by striking ``The term'' and 
     inserting ``Economic development agencies.--The term''.
       (4) In paragraph (8), by striking ``The term'' and 
     inserting ``Economically disadvantaged.--The term''.
       (5) In paragraph (9), by striking ``The term'' and 
     inserting ``Governor.--The term''.
       (6) In paragraph (12), by striking ``The term'' and 
     inserting ``Institution of higher education.--The term''.
       (7) In paragraph (13), by striking ``The term'' and 
     inserting ``Labor market area.--The term''.
       (8) In paragraph (14), by striking ``The term'' and 
     inserting ``Local educational agency.--The term''.
       (9) In paragraph (15), by striking ``The term'' and 
     inserting ``Low-income level.--The term''.
       (10) In paragraph (16), by striking ``The term'' and 
     inserting ``Lower living standard income level.--The term''.
       (11) In paragraph (17), by striking ``The term'' and 
     inserting ``Offender.--The term''.
       (12) In paragraph (18), by striking ``The term'' and 
     inserting ``Postsecondary institution.--The term''.
       (13) In paragraph (20), by striking ``The term'' and 
     inserting ``Public assistance.--The term''.
       (14) In paragraph (23), by striking ``The term'' and 
     inserting ``State educational agency.--The term''.
       (15) In paragraph (25), by striking ``The term'' and 
     inserting ``Unemployed individuals.--The term''.
       (16) In paragraph (26), by striking ``The term'' and 
     inserting ``Unit of general local government.--The term''.
       (17) In paragraph (28), by striking ``The term'' and 
     inserting ``Vocational education.--The term''.
       (18) In paragraph (29), by striking ``The term'' and 
     inserting ``Displaced homemaker.--The term''.
       (19) In paragraph (30), by striking ``The term'' and 
     inserting ``Nontraditional employment.--The term''.
       (20) In paragraph (31), by striking ``The term'' and 
     inserting ``Basic skills deficient.--The term''.
       (21) In paragraph (32), by striking ``The term'' and 
     inserting ``Case management.--The term''.
       (22) In paragraph (33), by striking ``The term'' and 
     inserting ``Citizenship skills.--The term''.
       (23) In paragraph (34), by striking ``The term'' and 
     inserting ``Family.--The term''.
       (24) In paragraph (37), by striking ``The term'' and 
     inserting ``Participant.--The term''.
       (25) In paragraph (38), by striking ``The term'' and 
     inserting ``School dropout.--The term''.
       (26) In paragraph (39), by striking ``The term'' and 
     inserting ``Termination.--The term''.
       (27) In paragraph (40), by striking ``The term'' and 
     inserting ``Youth corps program.--The term''.
       (28) By redesignating paragraphs (31), (32), (4), (33), 
     (5), (6), (29), (7), (8), (41), (42), (34), (43), (44), (9), 
     (45), (46), (10), (12), (13), (47), (48), (49), (14), (50), 
     (15), (16), (30), (17), (51), (52), (37), (18), (20), (53), 
     (54), (38), (21), (55), (22), (57), (56), (23), (58), (24), 
     (39), (25), (26), (27), (28), and (40) as paragraphs (4) 
     through (54), respectively.

     SEC. 903. AMENDMENTS TO TITLE I.

       (a) Heading.--The heading of title I of the Job Training 
     Partnership Act (29 U.S.C. 1501 et seq.) is amended to read 
     as follows:

        ``TITLE I--STATE AND LOCAL ADMINISTRATIVE PROVISIONS''.

       (b) Part B.--Part B of title I of such Act (29 U.S.C. 1531 
     et seq.), as amended by this Act, is further amended in the 
     heading of such part to read as follows:

              ``PART B--LOCAL ADMINISTRATIVE PROVISIONS''.

       (c) Part C.--
       (1) Headings.--Part C of title I of such Act (29 U.S.C. 
     1551 et seq.), as amended by this Act, is further amended--
       (A) in the heading of such part to read as follows:

               ``PART C--PROGRAM AND FISCAL PROVISIONS'';

       (B) by inserting after the heading for such part the 
     following:

                   ``Subpart 1--General Provisions'';

       (C) by inserting after section 148, as amended by this Act, 
     the following:

         ``Subpart 2--Performance Accountability Provisions'';

     and
       (D) by inserting after section 156 (as amended by this Act) 
     the following:

                    ``Subpart 3--Other Provisions''.

       (2) Section 141.--Section 141 of such Act (29 U.S.C. 1551), 
     as amended by this Act, is further amended--
       (A) in the section heading to read as follows:

     ``SEC. 141. GENERAL PROGRAM REQUIREMENTS.'';

     and
       (B)(i) by redesignating subsections (a), (b), (c), (e), 
     (g), (h), (j), and (l) through (t) as paragraphs (1) through 
     (16), respectively, and moving the margin for each such 
     paragraph two ems to the right; and
       (ii) by redesignating each paragraph and subparagraph of 
     such subsections (a), (b), (c), (e), (g), (h), (j), and (l) 
     through (t) (as such subsections existed before the amendment 
     made by clause (i)) as a subparagraph and clause, 
     respectively.
       (3) Section 142.--Section 142 of such Act (29 U.S.C. 1552), 
     as amended by this Act, is further amended--
       (A) in the section heading to read as follows:

     ``SEC. 142. BENEFITS.'';

       (B) in subsection (a)(2) (as redesignated), by striking 
     ``References'' and inserting ``References.--References''; and
       (C) in subsection (b), by striking ``Allowances'' and 
     inserting ``Additional Requirement.--Allowances''.
       (4) Section 145.--Section 145 of such Act (29 U.S.C. 1555) 
     is amended in the section heading to read as follows:

     ``SEC. 145. PROHIBITION AGAINST FEDERAL CONTROL OF 
                   EDUCATION.''.

       (5) Section 146.--Section 146 of such Act (as redesignated) 
     is amended--
       (A) in the section heading to read as follows:

     ``SEC. 146. IDENTIFICATION OF ADDITIONAL IMPOSED 
                   REQUIREMENTS.'';

     and
       (B) by striking ``service delivery area'' each place it 
     appears and inserting ``workforce development area''.
       (6) Section 147.--Section 147 of such Act (as redesignated) 
     is amended in the section heading to read as follows:

     ``SEC. 147. AUTHORITY OF STATE LEGISLATURE.''.

       (7) Section 148.--Section 148 of such Act (as redesignated) 
     is amended in the section heading to read as follows:

     ``SEC. 148. INTERSTATE AGREEMENTS.''.

       (d) Part D.--
       (1) Heading.--Part D of title I of such Act is amended by 
     striking the heading for such part.
       (2) Section 161.--Section 161 of such Act (29 U.S.C. 1571), 
     as amended by this Act, is further amended--
       (A) in the section heading to read as follows:

     ``SEC. 161. PROGRAM YEAR.'';

       (B) in subsection (a), by striking ``(a)'' and inserting 
     the following:
       ``(a) Program Year.--''; and

[[Page H2838]]

       (C) in subsection (b), by striking ``(b)'' and inserting 
     the following:
       ``(b) Availability.--''.
       (3) Section 162.--Section 162 of such Act (29 U.S.C. 1572), 
     as amended by this Act, is further amended--
       (A) in the section heading to read as follows:

     ``SEC. 162. PROMPT ALLOCATION OF FUNDS.'';

       (B) in subsection (a), by striking ``(a)'' and inserting 
     ``(a) Allotments and Allocations Based on Latest Available 
     Data.--'';
       (C) in subsection (b), by striking ``(b)'' and inserting 
     ``(b) Publication in Federal Register Relating to Mandatory 
     Funds.--'';
       (D) in subsection (c), by striking ``(c)'' and inserting 
     ``(c) Requirement for Funds Distributed by Formula.--'';
       (E) in subsection (d), by striking ``(d)'' and inserting 
     ``(d) Publication in Federal Register Relating to 
     Discretionary Funds.--''; and
       (F) in subsection (e)--
       (i) by striking ``(e)'' and inserting ``(e) Availability of 
     Funds.--''; and
       (ii) by striking ``service delivery area'' and inserting 
     ``local workforce development area''.
       (4) Section 163.--Section 163 of such Act (29 U.S.C. 1573) 
     is amended--
       (A) in the section heading to read as follows:

     ``SEC. 163. MONITORING.'';

       (B) in subsection (a), by striking ``(a)'' and inserting 
     ``(a) In General.--'';
       (C) in subsection (b), by striking ``(b)'' and inserting 
     ``(b) Investigations.--''; and
       (D) in subsection (c), by striking ``(c)'' and inserting 
     ``(c) Additional Requirement.--''.
       (5) Section 164.--Section 164 of such Act (29 U.S.C. 1574) 
     is amended--
       (A) in the section heading to read as follows:

     ``SEC. 164. FISCAL CONTROLS; SANCTIONS.'';

       (B) in subsection (a)--
       (i) by striking ``(a)(1)'' and inserting the following:
       ``(a) Establishment of Fiscal Controls by States.--
       ``(1) In general.--''; and
       (ii) in paragraph (2), by striking ``(2)'' and inserting 
     ``(2) Regulations.--'' and moving such paragraph two ems to 
     the right;
       (C) in subsection (e)--
       (i) by striking ``(e)(1)'' and inserting the following:
       ``(e) Repayment of Amounts.--
       ``(1) In general.--'';
       (ii) in paragraph (2), by striking ``(2)'' and inserting 
     ``(2) Factors in imposing sanctions.--'' and moving such 
     paragraph two ems to the right; and
       (iii) in paragraph (3), by striking ``(3)'' and inserting 
     ``(3) Waiver.--'' and moving such paragraph two ems to the 
     right;
       (D) in subsection (f), by striking ``(f)'' and inserting 
     ``(f) Immediate Termination or Suspension of Assistance in 
     Emergency Situations.--'';
       (E) in subsection (g), by striking ``(g)'' and inserting 
     ``(g) Discrimination Against Participants.--''; and
       (F) by redesignating subsections (d), (e), (f), (g) as 
     subsections (c), (d), (e), and (f), respectively.
       (6) Section 165.--Section 165 of such Act (29 U.S.C. 1575) 
     is amended--
       (A) in the section heading to read as follows:

     ``SEC. 165. REPORTS; RECORDKEEPING; INVESTIGATIONS.'';

       (B) in subsection (a)--
       (i) by striking ``(a)(1)'' and inserting the following:
       ``(a) Reports.--
       ``(1) In general.--'';
       (ii) in paragraph (2), by striking ``(2)'' and inserting 
     ``(2) Submission to the secretary.--'' and moving such 
     paragraph two ems to the right; and
       (iii) in paragraph (3), by striking ``(3)'' and inserting 
     ``(3) Maintenance of standardized records.--'' and 
     moving such paragraph two ems to the right; and
       (iv) in paragraph (4)--

       (I) by striking ``(4)(A)'' and inserting ``(4) Availability 
     to the public.--(A)'' and moving such paragraph two ems to 
     the right;
       (II) in subparagraph (B), by striking ``(B)'' and inserting 
     ``(B) Exception.--'' and moving such subparagraph two ems to 
     the right; and
       (III) in subparagraph (C), by striking ``(C)'' and 
     inserting ``(C) Fees to recover costs.--'' and moving such 
     subparagraph two ems to the right;

       (C) in subsection (b)--
       (i) by striking ``(b)(1)(A)'' and inserting the following:
       ``(b) Investigations of Use of Funds.--
       ``(1) In general.--(A)'';
       (ii) in subparagraph (B) of paragraph (1), by moving such 
     subparagraph two ems to the right;
       (iii) in paragraph (2), by striking ``(2)'' and inserting 
     ``(2) Prohibition.--'' and moving such paragraph two ems to 
     the right; and
       (iv) in paragraph (3)--

       (I) by striking ``(3)(A)'' and inserting the following:

       ``(3) Audits.--
       ``(A) In general.--'';

       (II) in subparagraph (B), by striking ``(B)'' and inserting 
     ``(B) Notification requirement.--'' and moving such 
     subparagraph two ems to the right;
       (III) in subparagraph (C), by striking ``(C)'' and 
     inserting ``(C) Additional requirement.--'' and moving such 
     subparagraph two ems to the right; and
       (IV) in subparagraph (D), by striking ``(D)'' and inserting 
     ``(D) Rule of construc- tion.--'' and moving such 
     subparagraph two ems to the right;

       (D) in subsection (c)--
       (i) by striking ``(c)'' and inserting ``(c) Accessibility 
     of Reports.--''; and
       (ii) in paragraph (2), by striking ``service delivery 
     area'' and inserting ``local workforce development area'';
       (E) in subsection (d)--
       (i) by striking ``(d)(1)'' and inserting the following;
       ``(d) Information To Be Included in Reports.--
       ``(1) In general.--''; and
       (ii) in paragraph (2), by striking ``(2)'' and inserting 
     ``(2) Additional requirement.--'' and moving such paragraph 
     two ems to the right;
       (F) in subsection (e), by striking ``(e)'' and inserting 
     ``(e) Retention of Records.--'';
       (G) in subsection (f)--
       (i) by striking ``(f)(1)'' and inserting the following:
       ``(f) Quarterly Financial Reports.--
       ``(1) In general.--'';
       (ii) by striking ``service delivery area'' and inserting 
     ``local workforce development area''; and
       (iii) in paragraph (2), by striking ``(2)'' and inserting 
     ``(2) Additional requirement.--'' and moving such paragraph 
     two ems to the right; and
       (H) in subsection (g), by striking ``(g)'' and inserting 
     ``(g) Maintenance of Additional Records.--''.
       (7) Section 166.--Section 166 of such Act (29 U.S.C. 1576) 
     is amended--
       (A) in the section heading to read as follows:

     ``SEC. 166. ADMINISTRATIVE ADJUDICATION.'';

       (B) in subsection (a), by striking ``(a)'' and inserting 
     the following:
       ``(a) In General.--'';
       (C) in subsection (b), by striking ``(b)'' and inserting 
     the following:
       ``(b) Appeal.--'';
       (D) in subsection (c), by striking ``(c)'' and inserting 
     the following:
       ``(c) Time Limit.--''; and
       (E) in subsection (d), by striking ``(d)'' and inserting 
     the following:
       ``(d) Additional Requirement.--'';
       (8) Section 169.--Section 169 of such Act (29 U.S.C. 1579) 
     is amended--
       (A) in the section heading to read as follows:

     ``SEC. 169. ADMINISTRATIVE PROVISIONS.'';

       (B) in subsection (a), by striking ``(a)'' and inserting 
     ``(a) In General.--'';
       (C) in subsection (b), by striking ``(b)'' and inserting 
     ``(b) Acquisition of Certain Property and Services.--'';
       (D) in subsection (c), by striking ``(c)'' and inserting 
     ``(c) Authority To Enter Into Certain Agreements and To Make 
     Certain Expenditures.--''; and
       (E) in subsection (d), by striking ``(d)'' and inserting 
     ``(d) Annual Report.--''.
       (9) Section 170.--Section 170 of such Act (29 U.S.C. 1580) 
     is amended--
       (A) in the section heading to read as follows:

     ``SEC. 170. UTILIZATION OF SERVICES AND FACILITIES.'';

     and
       (B) in the first sentence, by striking ``section 169(c)'' 
     and inserting ``section 168(c)''.
       (10) Section 171.--Section 171 of such Act (29 U.S.C. 1581) 
     is amended in the section heading to read as follows:

     ``SEC. 171. OBLIGATIONAL AUTHORITY.''.

       (11) Redesignation.--Sections 169, 170, 171, 172, and 173 
     of the Job Training Partnership Act (29 U.S.C. 1579, 1580, 
     and 1581), as amended or added by this Act, as the case may 
     be, are further amended by redesignating such sections as 
     sections 168, 169, 170, 171, and 172 of such Act, 
     respectively.
       (e) Part E.--
       (1) Heading.--The heading for part E of title I of such Act 
     is amended by redesignating such heading as the heading for 
     part D of title I of such Act (and conforming the typeface 
     for such heading in a manner similar to the typeface for the 
     heading for part C of title I of such Act (as amended by 
     subsection (b)(1)(A)).
       (2) Section 183.--Section 183 of such Act (29 U.S.C. 1592), 
     as amended by this Act, is further amended by redesignating 
     such section as section 181.

     SEC. 904. AMENDMENTS TO TITLE IV.

       (a) Part Headings.--The following part headings of title IV 
     of the Job Training Partnership Act (29 U.S.C. 1671 et seq.) 
     are amended as follows:
       (1) The heading for part A of title IV of such Act is 
     amended to read as follows:

  ``Part A--Employment and Training Programs for Native Americans and 
                  Migrant and Seasonal Farmworkers''.

       (2) The heading for part B of title IV of such Act is 
     amended to read as follows:

                         ``Part B--Job Corps''.

       (3) The heading for part C of title IV of such Act is 
     amended to read as follows:

               ``Part C--Veterans' Employment Programs''.

       (4) The heading for part D of title IV of such Act is 
     amended to read as follows:

                    ``Part D--National Activities''.

       (5) The heading for part E of title IV of such Act is 
     amended to read as follows:

                 ``Part E--Labor Market Information''.

       (b) Section 441.--Section 441 of such Act (29 U.S.C. 1721) 
     is amended--

[[Page H2839]]

       (1) in the section heading to read as follows:

     ``SEC. 441. AUTHORIZATION OF PROGRAMS.'';

       (2) in subsection (a)--
       (A) by striking ``(a)(1)'' and inserting the following:
       ``(a) Authorization.--
       ``(1) In general.--'';
       (B) in paragraph (2), by striking ``(2)'' and inserting 
     ``(2) Conduct of programs.--'' and moving such paragraph two 
     ems to the right; and
       (C) in paragraph (3), by striking ``(3)'' and inserting 
     ``(3) Required activities.--'' and moving such paragraph two 
     ems to the right; and
       (3) in subsection (b)--
       (A) by striking ``(b)(1)'' and inserting the following:
       ``(b) Administration of Programs.--
       ``(1) In general.--''; and
       (B) in paragraph (2), by striking ``(2)'' and inserting 
     ``(2) Additional responsibilities.--'' and moving such 
     paragraph two ems to the right.
       (c) Section 455.--Section 455 of such Act (29 U.S.C. 1735) 
     is amended--
       (1) in the section heading to read as follows:

     ``SEC. 455. UNIFORM REPORTING REQUIREMENTS.'';

     and
       (2) by redesignating such section as section 453.
       (d) Section 461.--Section 461 of such Act (29 U.S.C. 1751) 
     is amended--
       (1) in the section heading to read as follows:

     ``SEC. 461. LABOR MARKET INFORMATION; AVAILABILITY OF 
                   FUNDS.'';

       (2) in subsection (a), by striking ``(a)'' and inserting 
     ``(a) Set-Aside of Funds.--'';
       (3) in subsection (b)--
       (A) by striking ``(b)'' and inserting ``(b) Availability 
     for Additional Purpose.--''; and
       (B) by striking ``section 125'' and inserting ``section 
     467''; and
       (4) in subsection (c), by striking ``(c)'' and inserting 
     ``(c) Availability of Other Funds.--''.
       (e) Section 462.--Section 462 of such Act (29 U.S.C. 1752) 
     is amended--
       (1) in the section heading to read as follows:

     ``SEC. 462. COOPERATIVE LABOR MARKET INFORMATION PROGRAM.'';

       (2) in subsection (a), by striking ``(a)'' and inserting 
     ``(a) Data on Current Employment.--'';
       (3) in subsection (b), by striking ``(b)'' and inserting 
     ``(b) Maintenance of Descriptions of Job Duties and Related 
     Informa tion.--'';
       (4) in subsection (c), by striking ``(c)'' and inserting 
     ``(c) Additional Requirements.--'';
       (5) in subsection (d)--
       (A) by striking ``(d)(1)'' and inserting the following:
       ``(d) Data for Annual Statistical Measure of Labor Market 
     Related Economic Hardship.--
       ``(1) In general.--'';
       (B) in paragraph (2), by striking ``(2)'' and inserting 
     ``(2) Household budget data.--'' and moving such paragraph 
     two ems to the right; and
       (C) in paragraph (3), by striking ``(3)'' and inserting 
     ``(3) Report.--'' and moving such paragraph two ems to the 
     right;
       (6) in subsection (e), by striking ``(e)'' and inserting 
     ``(e) Statistical Data Relating to Permanent Lay-Offs and 
     Plant Closings.--''
       (7) in subsection (f)--
       (A) by striking ``(f)(1)'' and inserting the following:
       ``(f) Data Relating to Permanent Dislocation of Farmers and 
     Ranchers.--
       ``(1) In general.--'';
       (B) in paragraph (1), by moving subparagraphs (A) through 
     (E) two ems to the right; and
       (C) in paragraph (2), by striking ``(2)'' and inserting 
     ``(2) Report.--'' and moving such paragraph two ems to the 
     right; and
       (8) by striking subsection (g).
       (f) Section 463.--Section 463 of such Act (29 U.S.C. 1753) 
     is amended--
       (1) in the section heading to read as follows:

     ``SEC. 463. SPECIAL FEDERAL RESPONSIBILITIES.'';

       (2) in subsection (a), by striking ``(a)'' and inserting 
     ``(a) Review and Application of Labor Market Information.--
     '';
       (3) in subsection (b), by striking ``(b)'' and inserting 
     ``(b) Integrated Occupational Supply and Demand Information 
     Sys- tem.--''; and
       (4) in subsection (c), by striking ``(c)'' and inserting 
     ``(c) Sufficient Funds for Staffing.--''.
       (g) Section 464.--Section 464 of such Act (29 U.S.C. 1754) 
     is amended--
       (1) in the section heading to read as follows:

     ``SEC. 464. NATIONAL OCCUPATIONAL INFORMATION COORDINATING 
                   COMMITTEE.'';

       (2) in subsection (a)--
       (A) by striking ``(a)(1)'' and inserting the following:
       ``(a) Reservation.--
       ``(1) In general.--'';
       (B) in paragraph (2), by striking ``(2)'' and inserting 
     ``(2) Additional members.--'' and moving such paragraph two 
     ems to the right; and
       (C) in paragraph (3), by striking ``(3)'' and inserting 
     ``(3) Additional requirement.--'' and moving such paragraph 
     two ems to the right;
       (3) in subsection (b), by striking ``(b)'' and inserting 
     ``(b) Additional Responsibilities.--''; and
       (4) in subsection (c), by striking ``(c)'' and inserting 
     ``(c) Use of Funds.--''.
       (h) Section 465.--Section 465 of such Act (29 U.S.C. 1755) 
     is amended in the section heading to read as follows:

     ``SEC. 465. JOB BANK PROGRAM.''.

       (i) Section 466.--Section 466 of such Act (as redesignated) 
     is amended--
       (1) in the section heading to read as follows:

     ``SEC. 466. STATE JOB BANK SYSTEMS.'';

       (2) in subsection (a) (as redesignated), by striking 
     ``(a)'' and inserting ``(a) In General.--''; and
       (3) in subsection (b) (as redesignated), by striking 
     ``(b)'' and inserting ``(b) Computerized Data Systems.--''.
       (j) Section 467.--Section 467 of such Act (as redesignated) 
     is amended--
       (1) in the section heading to read as follows:

     ``SEC. 467. STATE LABOR MARKET INFORMATION PROGRAMS.'';

       (2) in subsection (a), by striking ``(a)'' and inserting 
     the following:
       ``(a) In General.--'';
       (3) in subsection (b), by striking ``(b)'' and inserting 
     the following:
       ``(b) Additional Requirements.--'';
       (4) in subsection (c), by striking ``(c)'' and inserting 
     the following:
       ``(c) Reimbursements.--''; and
       (5) in subsection (d), by striking ``(d)'' and inserting 
     the following:
       ``(d) Combination or Consolidation of Certain Reporting 
     Requirements.--''.

     SEC. 905. AMENDMENTS TO TITLE VI.

       The Job Training Partnership Act (29 U.S.C. 1501 et seq.) 
     is amended by striking the heading for title VI of such Act.

     SEC. 906. CLARIFICATION.

       Nothing in this Act, the amendments made by this Act, or 
     any law amended by this Act shall be construed to supplant or 
     modify the requirements for registration of an apprenticeship 
     program under the National Apprenticeship Act.
                  Subtitle B--Amendments to Other Acts

     SEC. 911. AMENDMENTS TO OTHER ACTS.

       The following Acts are amended as follows:
       (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)(i), by striking ``or units 
     (referred to in section 311(b)(2) of the Job Training 
     Partnership Act)'' and inserting ``referred to in section 
     313(a)(2)(B)(i) of the Employment, Training, and Literacy 
     Enhancement Act''; and
       (ii) in subparagraph (B)(iii), by striking ``Job Training 
     Partnership Act'' and inserting ``Employment, Training, and 
     Literacy Enhancement Act''; and
       (B) in paragraph (4), in the second sentence, by striking 
     ``Job Training Partnership Act'' and inserting ``Employment, 
     Training, and Literacy Enhancement 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 ``section 142(b) of 
     the Job Training Partnership Act (29 U.S.C. 1552(b))'' and 
     inserting ``title II, III, or IV of the Employment, Training, 
     and Literacy Enhancement Act''.
       (B) Section 6.--Section 6 of the Food Stamp Act of 1977 (7 
     U.S.C. 2015) is amended--
       (i) in subsection (d)(4)(M), by striking ``Job Training 
     Partnership Act'' and inserting ``Employment, Training, and 
     Literacy Enhancement Act''; and
       (ii) in subsection (e)(3), by striking subparagraph (A) and 
     inserting the following:
       ``(A) a program under title II, III, or IV of the 
     Employment, Training, and Literacy Enhancement Act;''.
       (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 
     title II, III, or IV of the Employment, Training, and 
     Literacy Enhancement Act,''; 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 Employment, Training, 
     and Literacy Enhancement Act.''.
       (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 
     Employment, Training, and Literacy Enhancement Act''.

[[Page H2840]]

       (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 ``Job Training 
     Partnership Act (29 U.S.C. 1501 et seq.)'' and inserting 
     ``title II, III, or IV of the Employment, Training, and 
     Literacy Enhancement 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 Employment, 
     Training, and Literacy Enhancement Act.''.
       (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 (c)(2), by striking ``section 311(b)(2) 
     of the Job Training Partnership Act (29 U.S.C. 1661(b)(2))'' 
     and inserting ``313(a)(2)(B)(i) of the Employment, Training, 
     and Literacy Enhancement Act'';
       (ii) in subsection (d)--

       (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 Employment, Training, and Literacy Enhancement 
     Act, except in a case in which''; and

       (II) by striking the second sentence; and

       (iii) in subsection (e), by striking ``for training,'' and 
     all that follows through ``beginning'' and inserting ``to 
     participate in employment and training activities under the 
     Employment, Training, and Literacy Enhancement Act 
     beginning''.
       (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 Employment, Training, and Literacy Enhancement Act of 
     1997''.
       (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 122 of the 
     Employment, Training, and Literacy Enhancement Act.''.
       (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 ``under the Job 
     Training Partnership Act (29 U.S.C. 1501 et seq.)'' and 
     inserting ``under section 124 of the Employment, Training, 
     and Literacy Enhancement Act''.
       (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 Employment, Training, and 
     Literacy Enhancement Act''; and
       (II) in paragraph (1), by striking ``(including use of 
     section 110 of CETA when necessary)''; and

       (ii) in subsection (c)(1), by striking ``through the 
     expansion of CETA and other''.
       (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 ``or the Job Training Partnership Act'' 
     and inserting ``the Job Training Partnership Act, or the 
     Employment, Training, and Literacy Enhancement Act''.
       (12) Trade act of 1974.--Section 239(e) of the Trade Act of 
     1974 (19 U.S.C. 2311(e)) is amended by striking ``Job 
     Training Partnership Act'' and inserting ``Employment, 
     Training, and Literacy Enhancement Act''.
       (13) Higher education act of 1965.--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'' and 
     inserting ``received through participation under title II, 
     III, or IV of the Employment, Training, and Literacy 
     Enhancement Act''.
       (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 State collaborative process 
     under of section 102 of the Employment, Training, and 
     Literacy Enhancement Act and local workforce development 
     boards established under section 122 of such Act)'';
       (B) in subsection (e)--
       (i) in paragraph (3)(C), by striking ``local Private 
     Industry Councils (PICS) authorized by the Job Training 
     Partnership Act (JTPA),'' and inserting ``local workforce 
     development boards established under section 122 of the 
     Employment, Training, and Literacy Enhancement Act,'';
       (ii) in paragraph (4)(A)(iii), by striking ``local Private 
     Industry Councils (PICS) authorized by the JTPA,'' and 
     inserting ``local workforce development boards established 
     under section 122 of the Employment, Training, and Literacy 
     Enhancement Act,''; and
       (iii) 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 122 of the Employment, Training, and Literacy 
     Enhancement Act''; and
       (C) in subsection (g), by striking ``the Job Training 
     Partnership Act (JTPA),'' and inserting ``the Employment, 
     Training, and Literacy Enhancement Act,''.
       (15) Department of education organization act.--Subsection 
     (a) of section 302 of the Department of Education 
     Organization Act (20 U.S.C. 3443(a)) (as redesignated in 
     section 271(a)(2) of the Improving America's Schools Act of 
     1994) is amended by striking ``under section 303(c)(2) of the 
     Comprehensive Employment and Training Act'' and inserting 
     ``relating to such education''.
       (16) National skill standards act of 1994.--
       (A) Section 504.--Section 504(c)(3) of the National Skill 
     Standards Act of 1994 (20 U.S.C. 5934(c)(3)) is amended by 
     striking ``the Capacity Building and Information and 
     Dissemination Network established under section 453(b) of the 
     Job Training Partnership Act (29 U.S.C. 1733(b)) and''.
       (B) Section 508.--Section 508(1) of the National Skill 
     Standards Act of 1994 (20 U.S.C. 5938(1)) is amended to read 
     as follows:
       ``(1) Community-based organization.--The term `community-
     based organization' means a private nonprofit organization of 
     demonstrated effectiveness that is representative of a 
     community or a significant segment of a community and that 
     provides workforce and career development activities, as 
     defined in section 4 of the Employment, Training, and 
     Literacy Enhancement Act.''.
       (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)) is 
     amended by striking ``, the Adult Education Act, the 
     Individuals with Disabilities Education Act, and the Job 
     Training Partnership Act'' and inserting ``the Individuals 
     with Disabilities Education Act, and the Employment, 
     Training, and Literacy Enhancement 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 
     Employment, Training, and Literacy Enhancement Act,''.
       (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 
     Employment, Training, and Literacy Enhancement Act''.
       (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 Employment, Training, and Literacy 
     Enhancement Act,''.
       (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) 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 Employment, Training, and Literacy Enhancement 
     Act.''.
       (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 Employment, Training, and Literacy Enhancement 
     Act;''; and
       (ii) in paragraph (4), by striking ``funds provided'' and 
     all that follows and inserting ``funds provided under the 
     Employment, Training, and Literacy Enhancement Act;''.
       (20) Job training reform amendments of 1992.--Section 701 
     of the Job Training Reform Amendments of 1992 (29 U.S.C. 1501 
     note) is repealed.
       (21) Public law 98-524.--Section 7 of Public Law 98-524 (29 
     U.S.C. 1551 note) is repealed.
       (22) Veterans' benefits and programs improvement act of 
     1988.--Section 402 of the

[[Page H2841]]

     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 Employment, Training, and Literacy 
     Enhancement Act'';
       (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, 
     training, and literacy activities under the Employment, 
     Training, and Literacy Enhancement Act.''.
       (23) 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 
     Employment, Training, and Literacy Enhancement Act''.
       (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 Employment, Training, and Literacy Enhancement 
     Act''.
       (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 Employment, Training, and 
     Literacy Enhancement Act''; and
       (ii) in the third sentence, by striking ``title III of''.
       (24) 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 ``title III of the Job Training Partnership Act'' 
     and inserting ``title II, III, or IV of the Employment, 
     Training, and Literacy Enhancement Act''.
       (25) 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) Programs under title III or IV of the Employment, 
     Training, and Literacy Enhancement Act.''.
       (26) 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 Employment, 
     Training, and Literacy Enhancement Act,''.
       (27) 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 Employment, Training, 
     and Literacy Enhancement Act''.
       (B) Section 4103a.--Section 4103A(c)(4) of title 38, United 
     States Code, is amended by striking ``Job Training 
     Partnership Act (29 U.S.C. 1501 et seq.))'' and inserting 
     ``Employment, Training, and Literacy Enhancement Act)''.
       (C) Section 4213.--Section 4213 of title 38, United States 
     Code, is amended by striking ``Job Training Partnership Act 
     (29 U.S.C. 1501 et seq.),'' and inserting ``Employment, 
     Training, and Literacy Enhancement Act,''.
       (28) United states housing act of 1937.--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 Employment, Training, and Literacy 
     Enhancement Act 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 ``programs under title II, III, or IV of 
     the Employment, Training, and Literacy Enhancement Act 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 
     ``programs under title II, III, or IV of the Employment, 
     Training, and Literacy Enhancement Act and the''; and
       (ii) in paragraph (3)(H), by striking ``program under'' and 
     all that follows through ``and any other'' and inserting 
     ``program under title II, III, or IV of the Employment, 
     Training, and Literacy Enhancement Act and any other''.
       (29) 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 Employment, Training, and 
     Literacy Enhancement Act or the''.
       (30) 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 
     Employment, Training, and Literacy Enhancement Act of 
     1997.''; and
       (ii) in subsection (b), by striking paragraph (1) and 
     inserting the following:
       ``(1) the Employment, Training, and Literacy Enhancement 
     Act,''.
       (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), by striking ``the Job 
     Training Partnership Act (29 U.S.C. 1501 et seq.)'' and 
     inserting ``the Employment, Training, and Literacy 
     Enhancement Act''; 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 title III of the 
     Employment, Training, and Literacy Enhancement Act''.
       (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 Employment, Training, and Literacy 
     Enhancement Act,''.
       (31) 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 ``Job Training Partnership Act (relating to Job 
     Corps) (29 U.S.C. 1691 et seq.)'' and inserting ``Employment, 
     Training, and Literacy Enhancement Act''.
       (32) 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 ``Job Training Partnership Act'' and inserting 
     ``Employment, Training, and Literacy Enhancement Act''.
       (33) Domestic volunteer service act of 1973.--
       (A) Section 103.--Section 103(d) of the Domestic Volunteer 
     Service Act of 1973 (42 U.S.C. 4953(d)) is amended in the 
     second sentence to read as follows: ``Whenever feasible, such 
     efforts shall be coordinated with a local workforce 
     development board established under section 122 of the 
     Employment, Training, and Literacy Enhancement Act.''.
       (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 ``Job Training Partnership Act'' 
     and inserting ``Employment, Training, and Literacy 
     Enhancement Act''.
       (34) 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 Employment, Training, and Literacy 
     Enhancement Act''.
       (35) 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 
     Employment, Training, and Literacy Enhancement Act''.
       (36) 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 Employment, Training, and Literacy 
     Enhancement Act''.
       (37) 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 Employment, Training, and 
     Literacy Enhancement Act''.
       (38) 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 Employment, 
     Training, and Literacy Enhancement Act''.
       (39) 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 
     by striking ``Job Training Partnership Act'' each place it 
     appears and inserting ``Employment, Training, and Literacy 
     Enhancement Act''.
       (B) Section 198c.--Section 198C of the National and 
     Community Service Act of 1990 (42 U.S.C. 12653c) is amended--
       (i) in subsection (b)(1), by striking ``a military 
     installation described in section 325(e)(1) of the Job 
     Training Partnership Act (29 U.S.C. 1662d(e)(1)).'' and 
     inserting ``a military installation being closed or realigned 
     under--
       ``(A) the Defense Base Closure and Realignment Act of 1990 
     (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 
     note); and
       ``(B) title II of the Defense Authorization Amendments and 
     Base Closure and Realignment Act (Public Law 100-526; 10 
     U.S.C. 2687 note).''; and
       (ii) in subsection (e)(1)(B)(iii), by striking ``Job 
     Training Partnership Act (29 U.S.C. 1693)'' and inserting 
     ``Employment, Training, and Literacy Enhancement Act''.
       (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 Employment, 
     Training, and Literacy Enhancement Act''.
       (40) Cranston-gonzalez national affordable housing act.--

[[Page H2842]]

       (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 Employment, 
     Training, and Literacy Enhancement Act''.
       (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 striking ``the Job Training 
     Partnership Act'' each place it appears and inserting ``the 
     Employment, Training, and Literacy Enhancement Act''.
       (41) 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 inserting after ``the Job Training Partnership Act 
     (29 U.S.C. 1501 et seq.)'' the following: ``, title II, III, 
     or IV of the Employment, Training, and Literacy Enhancement 
     Act,''.
       (42) Personal responsibility and work opportunity 
     reconciliation act of 1996.--Section 403(c)(2)(K) and section 
     423(d)(11) of the Personal Responsibility and Work 
     Opportunity Reconciliation Act of 1996 (8 U.S.C. 
     1613(c)(2)(K) and 1138a note) are amended by striking ``Job 
     Training Partnership Act'' each place it appears and 
     inserting ``Employment, Training, and Literacy Enhancement 
     Act''.
           TITLE X--EFFECTIVE DATE AND TRANSITION PROVISIONS

     SEC. 1001. EFFECTIVE DATE.

       This division and the amendments made by this division 
     shall take effect on July 1, 1998.

     SEC. 1002. TRANSITION PROVISIONS.

       ``(a) In General.--The Secretary of Education and the 
     Secretary of Labor, as appropriate, shall take such steps as 
     such Secretaries determine to be appropriate to provide for 
     the orderly transition from any authority under provisions of 
     law amended or repealed by this division or any related 
     authority under the provisions of this division.
       (b) Extended Transition Period.--
       (1) In general.--If, on or before July 1, 1997, a State has 
     enacted a State statute that provides for the establishment 
     or conduct of three or more of the programs, projects, or 
     activities described in subparagraphs (A) through (E) or 
     paragraph (2), the State shall not be required to comply with 
     provisions of this Act that conflict with such State statute 
     for the period ending three years after the date of enactment 
     of this Act.
       (2) Programs, projects, and activities described.--The 
     programs, projects, and activities described in this 
     paragraph are the following:
       (A) Establishment of human resource investment councils or 
     substate councils.
       (B) Reorganization or consolidation of State agencies with 
     responsibility for State employment and training programs.
       (C) Reorganization or consolidation of State employment and 
     training programs.
       (D) Restructuring of local delivery systems for State 
     employment and training programs.
       (E) Development or restructuring of State accountability or 
     oversight systems to focus on performance.


                 Amendment No. 2 offered by Mr. Graham

  Mr. GRAHAM. Mr. Chairman, I offer amendment No. 2, printed in the 
Record.
  The CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

  Amendment No. 2 offered by Mr. Graham:
       Page 15, line 18, after ``services'' insert ``provided to 
     participants on a voluntary basis''.
       Page 15, line 20, after ``family'' insert ``(such as 
     eliminating or reducing welfare dependency)''.
       Page 16, strike lines 1 through 3 and insert the following:
       ``(B) Equipping parents to partner with their children in 
     learning.''
       Page 16, strike lines 6 through 8 and insert the following:
       ``(D) Appropriate instruction for children of parents 
     receiving parent literacy services.''
       Page 28, line 11, after ``award'' insert ``not less than 
     1''.
       Page 28, line 11, strike ``grants'' and insert ``grant''.
       Page 52, after line 12, add the following:
       ``(7) Limitation.--Nothing in this Act shall be construed 
     to provide local workforce development boards with the 
     authority to mandate curriculum for schools.''
       Page 179, line 10, after ``adults,'' insert ``on a 
     voluntary basis,''.
       Page 179, line 12, after ``parents,'' insert ``on a 
     voluntary basis,''.
       Page 184, after line 5, insert the following:

     ``SEC. 305. HOME SCHOOLS.

       ``Nothing in this title shall be construed to affect home 
     schools, nor to compel a parent engaged in home schooling to 
     participate in an English literacy program, family literacy 
     services, or adult education.''
       Page 192, line 6, strike ``, such as'' and all that follows 
     through line 11 and insert a semicolon.
       Page 192, line 19, strike ``gains;'' and insert ``gains and 
     uses instructional practices, such as phonemic awareness and 
     systematic phonics, that research has proven to be effective 
     in teaching individuals to read,''.
       Page 194, line 11, after ``including'' insert ``instruction 
     incorporation phonemic awareness and systematic phonics 
     and''.
       Page 195, line 5, strike ``curricula;'' and insert 
     ``curricula, including curricula incorporating phonemic 
     awareness and systematic phonics;''.
       Page 199, line 10, strike ``available'' and insert 
     ``available, including the work of the National Institute of 
     Child Health and Human Development in the area of phonemic 
     awareness and systematic phonics,''.
       Page 201, beginning on line 4, after ``including'' insert 
     ``instruction'' in phonemic awareness and systematic phonics 
     and''.
       Page 201, line 5, strike ``such'' and insert ``literacy and 
     basic skills''.
       Page 201, line 22, before ``research'' insert ``reliable 
     and replicable''.
       Page 202, line 8, strike ``promise;'' and insert ``promise, 
     including phonemic awareness and systematic phonics based on 
     the work of the National Institute of Child Health and Human 
     Development;''.
       Page 204, line 3, before ``research'' insert `'reliable and 
     replicable''.
       Page 210, line 9, strike ``adults;'' and insert ``adults, 
     including instructional practices using phonemic awareness 
     and systematic phonics based on the work of the National 
     Institute of Child Health and Human Development;''.
       Page 211, line 24, strike ``A'' and insert ``A, and based 
     on scientific evidence, where available.''.

  Mr. GRAHAM. Mr. Chairman, to begin with, I, too, would like to thank 
Chairman Goodling and Chairman McKeon and the gentleman from Michigan, 
Mr. Kildee, for putting together a bill that has been a very difficult 
task, but I think most of all for the good.
  The committee has come together in a bipartisan fashion to address 
some problems long overdue to be addressed, and to rescind duplication 
and get local control for the 21st century, something I think most 
Americans agree with.
  I have some amendments, I think, that are very appropriate, and I 
hope we can agree upon them. There are things about the bill that I 
would like to have changed that we cannot get an agreement upon.
  Federal school-to-work, I would like that to cease now, because I 
believe that program, the school-to-work program, should be run at the 
local level. But under the program that we have today, Federal school-
to-work will terminate in 2 years, and given our current situation, 
that is something that I will have to live with. On balance, the bill 
is very good.
  The amendment that I offer today addresses concerns of family groups 
that I think are very legitimate, and to understand where people are 
coming from, a lot of folks are concerned that when we do things in 
Washington and when we do things at the State level, that does limit 
choices. Any time the government gets involved in an area, to me we 
need to do so as cautiously as possible, and allow people choices that 
are good for their community and their family.
  One thing that we have done with this amendment is we have clearly 
stated that nothing in this bill should be construed to affect home 
schoolers, or compel a parent engaged in home schooling to participate 
in the literacy program, family literacy services, or adult education.
  What we are trying to do here is to preserve the right to home school 
and make this program truly voluntary, and if a parent who is a home 
schooler does not want to participate, they certainly do not have to.
  When we talk about teaching reading and how to bring about literacy, 
one of the things that is important to me is that we have a full menu, 
and that phonics, I think a tried and true method of teaching literacy, 
be included. This amendment ensures that phonics will have a systematic 
approach and a place in the literacy program, something I believe that 
is very necessary and very appropriate.
  The last thing is that the gentleman from Texas [Mr. Paul] talked 
about local work force development boards. If you had to pick between 
Washington and home, I pick home. The local work force development 
boards are going to be made up of local official business leaders, who 
I think have the best chance of telling us what the job market is like 
a lot better than we do here in Washington. We are going to allow them 
unprecedented flexibility and ability to shape a work force so people, 
when they get out of school, are ready to go to work, and hopefully we 
can reduce the welfare rolls early on by giving the people the skills 
they need to be competitive in the 21st century.

[[Page H2843]]

  One thing we do not want to do is we do not want to mix job training 
with setting curriculum. Curriculum should be set by local educators 
and parents. I have offered an amendment that clearly says that the 
local work force development boards do not have any authority to 
mandate school curriculum. I think that is an amendment that clarifies 
and clearly limits and defines the roll of the work force development 
board, to make sure that parents and teachers control curriculum and 
not some other group we set up in the area of job training.
  On balance, the bill moves the ball forward. I am very proud to have 
been a part of it. Any time we make major changes, we do not make 
everybody happy. That is democracy. I think we have brought some common 
sense to bear on programs that lack common sense, and local people are 
more empowered today to affect the job training and education of their 
children than they were before this bill began.
  In my district we have lost 40 percent work force at the Savannah 
River site, the largest Department of Energy facility in the Nation. 
The reforms in this bill will allow more flexibility, more assets to be 
used in the local community to make sure that those people in my 
district and other districts who are losing their jobs have a chance to 
get retrained and go back into the work force.
  On balance, I believe this is a good bill, and the amendments I offer 
I think will strengthen the bill.
  Mr. McKEON. Mr. Chairman, I move to strike the last word.
  Mr. Chairman, the gentleman from South Carolina [Mr. Graham] serves 
as the vice chairman of the subcommittee, and has been very diligent in 
working to make this bill better. We would have no objection to this 
amendment.
  Mr. KILDEE. Mr. Chairman, I move to strike the requisite number of 
words.
  Mr. Chairman, we learned of this amendment late yesterday afternoon, 
and had only a brief opportunity to go over it. However, we were able 
to work to make some changes in it. I believe the amendment now is 
acceptable. I believe it is important, however, that we reserve the 
right to look at it again in conference with the Senate.
  Mr. HILLEARY. Mr. Chairman, I rise in support of the amendment 
offered by my good friend Mr. Graham because it makes some necessary 
improvements to H.R. 1385 in the areas of adult education and literacy.
  First, this amendment makes clear that all participation in adult 
education and family literacy programs is strictly voluntary. It also 
stipulates that this legislation has no impact on homeschools, nor can 
it compel homeschooling parents to participate in these programs.
  Second, the amendment clarifies that the intent of the programs is to 
strengthen the literacy skills of parents and their children. This will 
help equip parents to work with their children effectively in the 
learning process.
  Most importantly, this amendment clarifies that local work force 
development boards do not have any authority to mandate school 
curriculum. Workforce development boards are only authorized to manage 
training programs, not usurp the authority of local elected officials 
and school administrators. I encourage my colleagues to support this 
amendment.
  The CHAIRMAN. The question is on the amendment offered by the 
gentleman from South Carolina [Mr. Graham].
  The amendment was agreed to.


                  Amendments Offered by Mr. Traficant

  Mr. TRAFICANT. Mr. Chairman, I have three amendments spread over this 
bill. They are all the same. But to cover the bill with the Buy-
American Act, I ask unanimous consent to consider en bloc these three 
amendments.
  The CHAIRMAN. The Clerk will report the amendments.
  The Clerk read as follows:

       Amendments offered by Mr. Traficant:

       Page 104, line 22, strike the closed quotation marks and 
     the second period.
       Page 104, after line 22, add the following:

     ``SEC. 173. BUY-AMERICAN REQUIREMENTS.

       ``(a) Compliance With Buy American Act.--None of the funds 
     made available in this Act may be expended by an entity 
     unless the entity agrees that in expending the funds the 
     entity will comply with the Buy American Act (41 U.S.C. 10a-
     10c).
       ``(b) Sense of Congress; Requirement Regarding Notice.--
       ``(1) Purchase of American-made equipment and products.--In 
     the case of any equipment or product that may be authorized 
     to be purchased with financial assistance provided using 
     funds made available in this Act, it is the sense of the 
     Congress that entities receiving the assistance should, in 
     expending the assistance, purchase only American-made 
     equipment and products.
       ``(2) Notice to recipients of assistance.--In providing 
     financial assistance using funds made available in this Act, 
     the head of each Federal agency shall provide to each 
     recipient of the assistance a notice describing the statement 
     made in paragraph (1) by the Congress.
       ``(c) Prohibition of Contracts With Persons Falsely 
     Labeling Products as Made in America.--If it has been finally 
     determined by a court or Federal agency that any person 
     intentionally affixed a label bearing a `Made in America' 
     inscription, or any inscription with the same meaning, to any 
     product sold in or shipped to the United States that is not 
     made in the United States, the person shall be ineligible to 
     receive any contract or subcontract made with funds made 
     available in this Act, pursuant to the debarment, suspension, 
     and ineligibility procedures described in sections 9.400 
     through 9.409 of title 48, Code of Federal Regulations.''.
       Page 212, line 5, strike the closed quotation marks and the 
     second period.
       Page 212, after line 5, insert the following:

     ``SEC. 323. BUY-AMERICAN REQUIREMENTS.

       ``(a) Compliance With Buy American Act.--None of the funds 
     made available in this Act may be expended by an entity 
     unless the entity agrees that in expending the funds the 
     entity will comply with the Buy American Act (41 U.S.C. 10a-
     10c).
       ``(b) Sense of Congress; Requirement Regarding Notice.--
       ``(1) Purchase of american-made equipment and products.--In 
     the case of any equipment or product that may be authorized 
     to be purchased with financial assistance provided using 
     funds made available in this Act, it is the sense of the 
     Congress that entities receiving the assistance should, in 
     expending the assistance, purchase only American-made 
     equipment and products.
       ``(2) Notice to recipients of assistance.--In providing 
     financial assistance using funds made available in this Act, 
     the head of each Federal agency shall provide to each 
     recipient of the assistance a notice describing the statement 
     made in paragraph (1) by the Congress.
       ``(c) Prohibition of Contracts With Persons Falsely 
     Labeling Products as Made in America.--If it has been finally 
     determined by a court or Federal agency that any person 
     intentionally affixed a label bearing a `Made in America' 
     inscription, or any inscription with the same meaning, to any 
     product sold in or shipped to the United States that is not 
     made in the United States, the person shall be ineligible to 
     receive any contract or subcontract made with funds made 
     available in this Act, pursuant to the debarment, suspension, 
     and ineligibility procedures described in sections 9.400 
     through 9.409 of title 48, Code of Federal Regulations.''.

       Page 225, after the item relating to section 171 add the 
     following:

``Sec. 172. Buy-American requirements.

       Page 243, line 3, strike ``and 172'' and insert ``172, and 
     173''.
       Page 243, line 7, strike ``and 171'' and insert ``171, and 
     172''.
       Page 279, after line 17, insert the following (and conform 
     the table of contents of the bill accordingly):

     SEC. 2104. BUY-AMERICAN REQUIREMENTS.

       (a) In General.--The Rehabilitation Act of 1973 (29 U.S.C. 
     701 et seq.) is amended by inserting after section 21 the 
     following:

     ``SEC. 22. BUY-AMERICAN REQUIREMENTS.

       ``(a) Compliance With Buy American Act.--None of the funds 
     made available in this Act may be expended by an entity 
     unless the entity agrees that in expending the funds the 
     entity will comply with the Buy American Act (41 U.S.C. 10a-
     10c).
       ``(b) Sense of Congress; Requirement Regarding Notice.--
       ``(1) Purchase of american-made equipment and products.--In 
     the case of any equipment or product that may be authorized 
     to be purchased with financial assistance provided using 
     funds made available in this Act, it is the sense of the 
     Congress that entities receiving the assistance should, in 
     expending the assistance, purchase only American-made 
     equipment and products.
       ``(2) Notice to recipients of assistance.--In providing 
     financial assistance using funds made available in this Act, 
     the head of each Federal agency shall provide to each 
     recipient of the assistance a notice describing the statement 
     made in paragraph (1) by the Congress.
       ``(c) Prohibition of Contracts With Persons Falsely 
     Labeling Products as Made in America.--If it has been finally 
     determined by a court or Federal agency that any person 
     intentionally affixed a label bearing a `Made in America' 
     inscription, or any inscription with the same meaning, to any 
     product sold in or shipped to the United States that is not 
     made in the United States, the person shall be ineligible to 
     receive any contract or subcontract made with funds made 
     available in this Act, pursuant to the debarment, suspension, 
     and ineligibility procedures described in sections 9.400 
     through 9.409 of title 48, Code of Federal Regulations.''.
       (b) Conforming Amendment.--The table of contents of such 
     Act (29 U.S.C. 701 note) is amended by inserting after the 
     item relating to section 21 the following:

``Sec. 172. Buy-American requirements.


[[Page H2844]]


  Mr. TRAFICANT (during the reading). Mr. Chairman, I ask unanimous 
consent that the amendments be considered as read and printed in the 
Record.
  The CHAIRMAN. Is there objection to the request of the gentleman from 
Ohio?
  There was no objection.
  The Chairman. Is there objection to the original request of the 
gentleman from Ohio?
  There was no objection.
  Mr. TRAFICANT. Mr. Chairman, these are Buy American amendments. They 
simply say that all the money expended under this bill shall comply 
with the Buy American Act, and hopefully also a sense of the Congress 
that anyone expending these monies should, wherever possible, try and 
attempt to buy American-made goods and products; also, that there be a 
notice to recipients of grants or utilization money under this act that 
the Congress encourages them to, wherever possible, try and buy 
American-made goods.
  Finally, it prohibits contracts to any person who in fact supplies 
supposedly made-in-America products that are not made in America.
  The last provision is basically this. If someone who is doing 
business with one of our groups under this bill sells us supposedly 
made-in-America products, and we find it is a fraudulent, not made-in-
America product, then they are prohibited from any more business 
covered under this act. That is the third provision.

                              {time}  1045

  That explains the three provisions.
  Mr. Chairman, I yield to the gentleman from California [Mr. McKeon].
  Mr. McKEON. Mr. Chairman, we have no objection to the gentleman's 
amendment. We agree with what he is trying to do, and we will make sure 
we will work that out in accordance with his wishes.
  Mr. TRAFICANT. Mr. Chairman, I appreciate the gentleman's good work 
and also the gentleman from Pennsylvania [Mr. Goodling] for working 
with me on the issue.
  Mr. KILDEE. Mr. Chairman, will the gentleman yield?
  Mr. TRAFICANT. I yield to the gentleman from Michigan.
  Mr. KILDEE. Mr. Chairman, I certainly support the amendment and urge 
its adoption.
  Mr. TRAFICANT. Mr. Chairman, I urge an ``aye'' vote.
  The CHAIRMAN. The question is on the amendments offered by the 
gentleman from Ohio [Mr. Traficant].
  The amendments were agreed to.
  Mr. HINOJOSA. Mr. Chairman, I move to strike the last word. I do not 
wish to speak to the present amendment, Mr. Chairman.
  I rise in support of H.R. 1385 and the manager's amendment. Had I 
been here earlier, I would have spoken to this, and this is what I 
wanted to get into the record. I am particularly gratified by the 
willingness of the gentleman from Pennsylvania [Mr. Goodling] and the 
gentleman from California [Mr. McKeon] to work with Members from our 
side in producing a bipartisan bill that includes accountability. My 
thanks also go to the gentleman from Missouri [Mr. Clay] and the 
gentleman from Michigan [Mr. Kildee], the ranking members, for their 
leadership.
  The addition of the provision that work force boards should make 
available to the public upon request the minutes of their meetings 
encourages me in the belief that the work force board process will be 
fair and open.
  The CHAIRMAN. Are there further amendments to division A?


                  Amendment No. 4 Offered by Mr. Owens

  Mr. OWENS. Mr. Chairman, I offer an amendment.
  The CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 4 offered by Mr. Owens: Page 8, line 8, 
     strike ``Such sums'' and insert ``(A) Except as provided 
     in subparagraph (B), such sums''.
       Page 8, after line 10, add the following:
       ``(B)(i) Such sums as may be necessary for each of the 
     fiscal years 1999 through 2003 to provide amounts to local 
     workforce development areas under title II to carry out 
     summer youth employment programs under such title in 
     accordance with this subparagraph.
       ``(ii) Such amounts--
       ``(I) shall be used in accordance with the requirements 
     otherwise applicable to programs under title II, except that 
     such amounts shall be allocated to local workforce 
     development areas in accordance with the requirements 
     described in section 262(b) of the Job Training Partnership 
     Act (29 U.S.C. 1642(b)) (as such section was in effect on the 
     day before the date of the enactment of the Employment, 
     Training, and Literacy Enhancement Act of 1997); and
       ``(II) shall be used to provide summer youth employment 
     opportunities suitably linked to academic, occupational, and 
     work-based learning opportunities.
       Page 124, strike line 4 and all that follows through line 
     10.
       Page 124, line 11, strike ``(IV)'' and insert ``(III)''.
       Page 124, line 18, strike ``(V)'' and insert ``(IV)''.
       Page 125, line 1, strike ``(VI)'' and insert ``(V)''.

  Mr. OWENS. Mr. Chairman, this is an amendment on the Summer Youth 
Employment Program. The committee's work has been repeatedly 
congratulated. I hope that it is as good as we think it is because, in 
this closing of this century, jobs and employment will become a No. 1 
issue. With workfare and downsizing and various other activities under 
way, jobs are going to be critical for those who now have jobs. They 
will not have them, a lot of them in the future. And for those who are 
being driven from the welfare rolls, all of it is going to come 
together.
  The way we handle our jobs will be critical. The fact that we are 
handing over this power primarily to the Governors of the States is 
applauded by many but I find it a bit alarming.
  I wanted to talk about one aspect of the jobs program, that is the 
part that deals with disadvantaged youth. I have a chart in front of me 
which shows that programs for disadvantaged youth have been treated 
with great hostility over the last 4 or 5 years, certainly the last 3 
years. Among the programs for youth, disadvantaged youth, the Summer 
Youth Employment Program has been zeroed out of the budget a couple of 
times, and we have had to fight like mad to get it back into the 
budget. We have to appeal to the voters out there, public opinion to 
come to our aid, because we seem to have no aid here on Capitol Hill 
anywhere. This is basically an appeal that I make to the common sense 
of the Members of Congress, and I am asking Members of Congress to 
listen to their constituencies, Summer Youth Employment Programs are 
very important. If we fold them into a category called disadvantaged 
youth programs and that is all there is, no mandate which drives the 
summer youth employment programming funding, then we are likely to have 
a fading away of the Summer Youth Employment Programs.
  What is happening with overall disadvantaged youth programs is they 
have gone from $676 million in 1993 to $608 million in 1994, down to 
$126 million in 1995, and now we are proposing $126.7 million for 
programs for disadvantaged youth other than summer youth employment.
  The essence of the amendment is to keep current language in the bill 
which first clearly delineates the Summer Youth Employment Program as a 
separate program and, second, applies the same formula that exists now 
which drives the allocation of the formula within the State. Within the 
State they must follow the criteria of the amount of unemployment, the 
amount of poverty. This drives it down to the areas where the greatest 
need exists. If we do not do that, we leave it to the discretion of the 
Governors. I think the proposal in the en bloc amendments is to give 
the Governors 30 percent off the top for their discretion, which means 
we are reducing the amount of money for summer youth employment by 
giving that discretion to the Governors. The Governors already have 
discretion in the handling of other funds in this particular bill.
  I wanted to maintain the level of Summer Youth Employment Programs 
that we have now. I wanted to not only maintain the level of funding 
but maintain the application allocation of that funding to the poorest 
children in the urban areas which are not highly regarded usually by 
Governors in most States. That is what this amendment does.
  It is important to understand the background is that hostilities 
toward youth programs is such that they have been drastically reduced. 
In this very bill, the one exception made in the consolidation process 
is dislocated workers. Programs for dislocated workers are given a 
separate line. If they can make that exception for dislocated

[[Page H2845]]

workers because those are most favored programs, for whatever reason, 
that is the program that has been increased the most in the last 3 
years, they went from $571.6 million to $1.2 billion, so we know that 
there is a set of political policies operating here. We do not wait a 
minute to have disadvantaged youths in the cities in the summer to be 
the victims of their own politics. I urge that this amendment be 
adopted and save the Summer Youth Program.
  Mr. Chairman, I rise in tacit support of this legislative effort to 
streamline the nation's Federal adult and youth job training system. 
The debate concerning H.R. 1385, the Employment, Training and Literacy 
Enhancement Act, is not nearly as contentious and radical as the 
debacle that characterizes last year's ``CAREERS'' legislation. In the 
spirit of bipartisanship, the Chair of both the Committee on Education 
and the Workforce and the Subcommittee on Post Secondary Education and 
Lifelong Learning have worked extremely hard with my colleague, Ranking 
Member Dale Kildee, to move this bill in the right direction. In fact, 
as late as last night, efforts were being made to modify the bill to 
address some outstanding concerns of Members on both sides of the 
aisle, including myself. However, my colleagues in the Congressional 
Black Caucus, the progressive caucus, and the urban caucus have great 
reservations about the fate of the Summer Youth Employment Program--a 
highly successful program that has come to be relied upon by the 
nation's cities who welcome an opportunity to put disadvantaged young 
people to work. The Owens-Martinez amendment would address such 
concerns.
  Job training funds must be distributed on the basis of economic need 
not political clout. As a result of the manager's en bloc amendment 
that was passed earlier, H.R. 1385 would grant the governors a good 
deal of discretion in determining the within-State formula which sets 
the amount that cities, that is, local work force development boards, 
receive. The Owens-Martinez amendment would maintain current law which 
ensures that those cities which are the poorest and have the highest 
unemployment rates receive the funds, rather than those cities that 
exert the most political clout. This amendment would not abdicate the 
Federal Government's prescribed within-state formula. Current law 
requires States to distribute funds to local areas based on a three-
part formula: the number of unemployed, the number of excess 
unemployed, and the number of economically disadvantaged. This Federal 
formula ensures that funds get filtered down to those local areas that 
are the poorest, with the highest rates of unemployment. Thus, the 
Governor would not have the power to establish a formula that may have 
more to do with politics rather than economic need.
  The manager's en bloc amendment would require that State distribute 
70 percent of applicable funds to the localities according to the 
current formula. The other 30 percent would be distributed to 
localities according to a formula determined by the Governor. It is my 
understanding that this represents a compromise that was reached among 
the Nation's Governors, mayors, county executives and State 
legislatures. While this agreement is an accomplishment, it is not the 
best formula for those cities in dire economic straits. Congress should 
not be giving the Governor the authority to distribute 30 percent of 
the funds as he or she very well pleases.
  The manager's en bloc amendment also included a clause that would 
make the Summer Youth Program a required activity, rather than an 
allowable activity as under the Committee-reported bill. This too, is a 
substantial improvement that could go further. The Owens-Martinez 
amendment would separate the Summer Youth Employment Program from its 
block grant and create a separate funding stream. Therefore, Congress 
would be required to pass an appropriation for the Summer Youth 
Employment Program, as in current law. Members would be able to 
ascertain exactly what money is being provided for the Summer Youth 
Employment Program. Under the bill, the Dislocated Workers Program is 
separated into a special category. Similar provisions must be made for 
the Summer Youth Employment Program.

  Some of my colleagues may question the need for a separate 
appropriation and a federally driven within-State funding formula. 
History is the answer: repeatedly, the Summer Youth Employment Program 
has been a target of elimination by the majority.
  In 1995, the House-passed Fiscal Year 1996 Labor-HHS-Appropriations 
Act (H.R. 2127) would have eliminated the program. $0 was appropriated 
for a program that is needed by 4 million young disadvantaged people, 
but only able to accommodate nearly 600,000. For this reason and 
various others, this bill was deadlocked in the Senate. Six months 
after the start of fiscal year 1996, after 2 Government shutdowns, and 
after more than 10 continuing resolutions, the Fiscal Year 1996 Omnibus 
Appropriations Act (H.R. 3019/PL104-) was enacted and provided $625 
million to the summer program--thus supporting the same number of jobs 
as in 1995.
  In 1996, the House-passed Fiscal Year 1997 Labor-HHS-Appropriations 
Act, would have frozen funding for the summer program at the 1995 
level--thus supporting a record low of more than 440,000 youth, 
although nearly 800,000 youth were supported in the summer of 1992. 
Fortunately, the Fiscal Year 1997 Omnibus Appropriations Act (H.R. 
3610/PL 104-208) was passed and enacted which granted an additional 
$246 million--for a total of $871 million--for the program--the same 
amount that the President requested.
  The threat to the Summer Youth Employment Program continues--now to 
attack the program through the authorization process. The program must 
remain a Federal priority; this means from the intrastate funding 
formula to the interstate funding formula. Congress must reestablish 
its commitment to preserve the Summer Youth Employment Program and to 
target funds to those areas that are most in need. Fiscal constraints 
preclude 100 percent participation in the program; at the very least we 
ought to ensure that children in those areas that exhibit the greatest 
need are protected. The Ownes-Martinez amendment accomplishes just 
this. I urge my colleagues to vote for this amendment.
  Mr. McKEON. Mr. Chairman, I move to strike the last word.
  Mr. Chairman, I rise in strong opposition to the amendment offered by 
the gentleman from New York [Mr. Owens]. It would continue the Summer 
Youth Employment Program as a stand-alone program.
  Our bill, H.R. 1385, consolidates the Summer Youth Employment Program 
and the year-round youth program under the Job Training Partnership 
Act. The bill continues to allow funds to be spent on summer employment 
activities. In fact, summer employment that is linked to academic and 
occupational learning opportunities is now an essential element of the 
disadvantaged youth block grant.
  But this legislation does not continue it as a separate program. The 
main purpose of the bill pertaining to disadvantaged youth programs is 
that we should not require stand-alone summer employment programs 
anymore that do not target the hardest to serve youth at the expense of 
more comprehensive disadvantaged youth programs.
  This bill assumes a consolidation of the summer and the year-round 
programs, and it assumes the consolidation of funding for these 
programs as well. It does not repeal the summer program. It just makes 
it part of a more comprehensive effort at serving our hardest-to-serve, 
disadvantaged youth.
  The bill refocuses disadvantaged youth programs on providing academic 
and occupational learning opportunities, on getting kids back into 
school, in addition to providing employment experiences.
  The bill leaves the decision to localities on how to provide 
services. This is the main purpose of the bill, is getting the 
authority down to the local governments where they are best suited to 
handle and make these decisions.
  In the en bloc package of amendments we have added language 
clarifying that summer employment opportunities will be an essential 
element, that was part of our en bloc amendment earlier this morning, 
in disadvantaged youth programs. Local work force development areas 
have sole discretion on determining the proportion of funds that will 
go for summer employment and for year round disadvantaged youth 
services, from funds made available under the substate formula; and at 
a minimum, 70 percent of the funds going to local areas under the youth 
opportunity employment training grant be allocated within the State 
through the existing formula under JTPA.
  As I said, this is part of the agreement that has been reached with 
the Governors, the counties, the local boards, the local people that 
will be making this decision.
  Acceptance of the Owens amendment would totally undo consolidation in 
our bill for disadvantaged youth programs and would result in hurting 
the hardest-to-serve youth, particularly school dropouts who are in 
need of a comprehensive mix of services.
  In addition, this amendment goes against this agreement that we made 
earlier with the Governors, the State

[[Page H2846]]

legislatures and the counties who supported this approach in the bill.
  In summary, this amendment is the exact opposite of what we are all 
attempting to do here today. That is, consolidate the job training and 
employment programs, provide increased flexibility to States and 
localities in determining what programs work best for them.
  I urge a ``no'' vote on this amendment.
  Mr. OWENS. Mr. Chairman, will the gentleman yield?
  Mr. McKEON. I yield to the gentleman from New York.
  Mr. OWENS. Mr. Chairman, do the Governors get 30 percent off the top 
for administrative expenses?
  Mr. McKEON. Mr. Chairman, the Governors get 30 percent to use where 
they find the need is greatest throughout the State.
  Mr. OWENS. Mr. Chairman, if the gentleman will continue to yield, 
which means that summer youth will be reduced from the amount that it 
was last year?
  Mr. McKEON. No, Mr. Chairman, they just have more flexibility at the 
State level to determine the use rather than we making the decision 
here in Washington.
  Mr. OWENS. Mr. Chairman, when the gentleman uses State and local 
synonymously, the Governors have the discretion but the local levels 
will have----
  Mr. McKEON. Mr. Chairman, the States arrive at that formula through 
the collaborative process working with the State legislatures.
  Mr. OWENS. In some states?
  Mr. McKEON. In all States, Mr. Chairman. It is required in the bill.
  Mr. OWENS. Mr. Chairman, I thank the gentleman.
  Mr. MARTINEZ. Mr. Chairman, I move to strike the requisite number of 
words.
  It is interesting in the colloquy that just took place between the 
chairman and my friend, the gentleman from New York [Mr. Owens], in 
that the point that the gentleman from New York [Mr. Owens] was trying 
to make is that 30 percent right off the top, unlike today with the way 
the law is, goes to the Governor for his use whatever he deems to use 
it for.
  The problem with block grants is that often many of the very 
important programs that were developed for specific reasons, the reason 
gets lost and the program gets lost, because at any particular time a 
Governor may have a different priority. Even local boards may have a 
different priority.
  Let us go back to the beginning and remember why we created the 
summer youth program. Because in the summer, when it is hot, there is 
apt to be a lot more problems than there is in other times of the year. 
And when young people are out of school and they have a lot of free 
time on their hands, they are more apt to be involved in problems 
whether they want to or not.
  The idea was that this was going to be a program that not necessarily 
created employment for a long period of time for young people but just 
for that short summer period, in which they would learn some marketable 
skills and learn the value of a job and develop some work ethic. That 
is the reason.
  Now, the way the funding is now, it is driven to the areas of the 
greatest unemployment and the pockets of poverty. This is something 
that we have to realize in a program like this, designed the way this 
program really was, that the only way it would be able to fulfill its 
mission is to continue the way it is.
  I am for the consolidation. In fact, whether this amendment passes or 
not, I will support the bill because I think it has been a good 
compromise.
  Let me take a minute to commend the chairman and the ranking member, 
the gentleman from Missouri [Mr. Clay] and the ranking member the 
gentleman from Michigan [Mr. Kildee] for the good work that they have 
done with all the Members that had input. This is truly a bipartisan 
bill. But I really feel very firmly, like many of my friends do on that 
side of the aisle, that if we talk about local control, it means local 
control.
  Local control may be to the Governor to the Federal Government local 
control. But when these programs come on, the local control is right in 
that community. And that is where the decision should be made.
  I have heard Members on that side of the aisle continually say, the 
citizen knows best what to do with his dollars. Why do we reverse it in 
this particular situation?
  This program here provides jobs to young people between the ages of 
14 and 21, and often these young people may have never worked before. 
Many have parents who are unemployed. These low-income youth can bring 
home to that needy family anywhere from between $1,100 and $1,400 
through that summer.

                              {time}  1100

  The other thing I mentioned earlier is that it does provide them with 
job skills and job experience, which is very important. They do perform 
challenging work in offices and parks and recreation facilities, 
hospitals, nursing homes, and day care centers.
  During the 104th Congress, Members on the other side of the aisle 
finally came around to recognizing these values and the values of the 
summer youth employment program after initial efforts to eliminate it. 
They funded the program at the President's request of $871 million for 
the fiscal year.
  Understand this, that that amount of money still only reaches about 
15 percent of the 4 million eligible to be served. That means that this 
is very valuable money and it should be targeted because it does not 
fulfill the entire need, and we should make absolutely sure that it 
goes to the areas of greatest need, like I said before, in unemployment 
areas and in areas of poverty.
  The reason that we ought to ensure this and support the Owens 
amendment is because these are limited funds and they need to be 
targeted where they can do the most good.
  Like I said before, I applaud the bipartisan effort on this piece of 
legislation. As one of the speakers said earlier, this is the third 
piece of legislation that comes out of our committee in a bipartisan 
fashion, which proves that we can work together for the benefit of the 
people. And while I applaud that, I still would like to see the Owens 
amendment accepted because I believe that it is the way we should be 
conducting this program.
  There are no guarantees in the bill that this program will continue 
at a local level, as presently written into law at its current level, 
or even continue at all if a higher priority is determined by the 
people making those decisions. The amendment that the gentleman from 
New York and I offer today provides for a separate stream of funding 
similar to that provided, and there is precedent for it, for dislocated 
workers in the adult employment, training, and opportunities block 
grant. We should not let these summer funds be subject to the whims of 
State politics, which often they are.
  Therefore, I ask and urge the Members to support the Owens amendment.
  Mr. GOODLING. Mr. Chairman, I move to strike the requisite number of 
words.
  First, I want to make sure that everybody understands what we are 
doing here is a very delicately put together program with State 
legislators, local legislators, and Governors, and we have to be very, 
very careful that we do not mess up that agreement.
  More importantly, the bill is written to make sure that the most 
disadvantaged are served. That is what the bill is about. We are not 
taking away summer youth programs at all. The 25 percent that the State 
has discretion over, 10 percent of that has to be used in incentive 
grants for dropouts. Again, most in need; those are the people we are 
trying to serve. And 75 percent goes local, 70 percent on a Federal 
formula with total local discretion.
  We believe that if we can combine the youth programs we will better 
serve those most in need. But, again, it is put together in a very 
delicate fashion trying to deal with Governors, State legislators, and 
local government elected officials, and that is not easy to do.
  Ms. JACKSON-LEE of Texas. Mr. Chairman, will the gentleman yield?
  Mr. GOODLING. I yield to the gentlewoman from Texas.
  Ms. JACKSON-LEE of Texas. Mr. Chairman, I appreciate the delicate 
balance and the negotiations that may have taken place in order to put 
forth a very creative piece of legislation that the gentleman refers 
to.
  Let me just simply inquire. That is a delicate balance between 
leaders of

[[Page H2847]]

government. In actuality, however, the need is on the local city 
government level where youngsters are, and it is extremely difficult to 
translate that delicate balance between the leaders of government, 
county and State legislators and the Governor's office, to prioritize 
summer youth jobs, which are constantly under attack, to be able to 
translate to where those needs are with our youth. That should have 
been the first priority.
  Mr. GOODLING. Mr. Chairman, reclaiming my time, I believe we have 
considered that in the collaborative process on the State level which 
gets all of those people together. They have to agree. The 
collaborative process then on the local level, again, all of those must 
agree.
  And the whole idea is to make sure that the local level has most to 
say about this whole program, because we believe that we have failed 
prior to that, and that is why we have written it in this fashion.
  Ms. JACKSON-LEE of Texas. Mr. Chairman, I move to strike the 
requisite number of words.
  (Ms. JACKSON-LEE of Texas asked and was given permission to revise 
and extend her remarks.)
  Ms. JACKSON-LEE of Texas. Mr. Chairman, just this last week, we, in 
this Congress, decided to prioritize our concerns about youth by 
passing the juvenile crime bill. Our solution to the youth of America 
was to incarcerate them at the age of 13 with adults. We were so 
prominent and so progressive in this decision that it was discussed on 
the very renowned show ``Politically Incorrect.''
  This amendment by the gentleman from New York, Major Owens, is 
correct and it responds to the true sense of our respect for the future 
workers of America, the youth of this country, emphasizing the 
importance of dealing with youth.
  Let me applaud the leadership of the Committee on Economic and 
Educational Opportunities for a creative piece of legislation. Let me 
thank the gentleman from New York [Mr. Owens] and the gentleman from 
California [Mr. Martinez] for understanding what education and training 
is all about.
  I am a new Member, but for 2 years of my time here, every single year 
we had to fight for the saving and implementation of summer youth jobs 
moneys. Every year it was cut, every single year. What comfort do I get 
in this very delicate balance between the Governor, the State 
legislature, and the county government, all well intended, to be able 
to prioritize for very needed summer youth jobs?
  As a member of the city council in the city of Houston, I know 
firsthand what summer youth jobs do for our community. I have gone to 
the intake centers when we have had thousands of youth standing around 
corners, blocks, with parents begging for employment. I know what it is 
when a youngster comes and says, ``I have gotten an opportunity to work 
in your office, but I am not coming because I have no clothes to 
wear.'' I know what it is in rural communities with unemployment where 
decisions are made where we will not have a summer youth program.
  Governors would have 100 percent authority to distribute job training 
funds. This would be an allowable activity; it would not be a required 
activity. Who gets the last attention that we can give our youth?
  As I look to convene the Congressional Children's Caucus, one of the 
things we wanted to say to America is that we believe in our children 
and we will do more than mild words and pass legislation that 
incarcerates young people with adults; we will prioritize funding 
activities for our youth.
  Mr. McKEON. Mr. Chairman, will the gentlewoman yield?
  Ms. JACKSON-LEE of Texas. I yield to the gentleman from California.
  Mr. McKEON. Mr. Chairman, maybe I misunderstood the gentlewoman, but 
I thought she said the Governors have 100 percent jurisdiction. They do 
not.
  In this area, 70 percent passes through on existing formula. They 
have 30 percent that they are able to use through the collaborative 
process to reach severely disadvantaged youth.
  Ms. JACKSON-LEE of Texas. Mr. Chairman, reclaiming my time, I 
appreciate the gentleman's clarification. However, I will stand with my 
comment, because what I am suggesting to the gentleman is that out of 
that combined authority, out of that combined authority, it is my 
position that the overall control over those dollars will not 
disseminate down to a summer youth job program. It will be a 
discretionary decision; it will not be mandatory.
  Yes, they have the authority over percentages, but it is a total of 
100 percent. And I disagree that it will come down to the summer youth 
program, because let me just humbly say to the gentleman, we have had a 
battle to preserve summer youth jobs in this Congress over the last two 
Congresses.
  Let me now just say that the gentleman from New York is correct, that 
the formula is a vital formula that will no longer be used. Current law 
has been useful. It means that we go right into a community and we 
assess the relative unemployment, we assess the poverty level, and, 
therefore, we make the determination.
  I would like it to be maintained as current law. And if the gentleman 
is going to say that current law is going to prevail, that is fine, but 
I want it to be a separate line item so that we can prioritize for our 
youth in a positive sense.
  I hope we have seen what it does to a young person to get a summer 
job and be exposed to a business, a government office, for the first 
time in their life. I can tell my colleagues that when the choices are 
being made, somebody will say we better appeal to those dislocated 
workers because they vote. Children do not vote. We will have a 
clamoring in the Statehouses across this Nation taking moneys from our 
youth.
  This is a good amendment if we believe that the Summer Youth Job 
Program creates the workers of the 21st century. The workers of the 
21st century are our youth. Why should we not have the opportunity to 
provide summer youth employment rather than put it at a discretionary 
level?
  So I would simply say that I would rather be known not as the 
Congress who passed a juvenile crime bill that locked up 13-year-olds 
with adults, I would rather be known as the Congress who focused on 
giving young people who will work in the future jobs and that we did 
not leave it to the discretion of a delicate balance between Governors 
and legislatures and counties.
  And might I add, I did not hear ``cities.'' So I think it is 
appropriate that this amendment be passed, and I would certainly ask my 
colleagues to give it their consideration.
  Mr. Chairman, I rise in support of my colleague from New York who is 
a tireless champion of our Nation's present and future labor force.
  I am strongly committed to the Summer Youth Employment Program and 
would like to insure that it serves the needs of communities throughout 
our Nation.
  Prior to my election to the U.S. House of Representatives, I worked 
to create the Summer Youth Employment Program in the city of Houston 
which is managed by Houston Works.
  I know from personal experience that a summer job for those young 
people enrolled by the Job Training Partnership Act's Summer Youth 
Employment Program-sponsored projects around this country are more than 
just an opportunity to have money for the next school year, it is an 
opportunity to learn, live, and experience the work environment and 
culture which in many cases is outside of their limited life 
experiences.
  In 1997, Houston Works Summer Youth Program served 6,500 young people 
ages 14-21.
  This year Houston Works plans to serve 5,396 jobs to youth ages 14-21 
years. The target population of disadvantaged youth is 43,000 potential 
applicants.
  Those 39,604 youth who were turned away last summer are only a tiny 
fraction of the 4 million youth who would qualify for this summer jobs 
program if the funds were available.
  Today, only about 600,000 youth can be served nationally.
  This program has made a significant difference in the lives and 
fortunes of the young people who were fortunate enough to have their 
application accepted.
  I would like to stress the need to look at summer youth employment as 
an extension of the learning experience.
  This amendment would protect funding for summer youth employment by 
creating a separate funding stream for this significant program. The 
block grant approach is detrimental to summer youth employment.
  The Owens' amendment for summer youth employment would restore the 
current formula allocations which direct Summer Youth Employment 
Program funds to those areas are

[[Page H2848]]

most in need according to a 100 percent federally driven interstate and 
intrastate formula.
  I would like to thank my colleagues for their support of this program 
and I would ask that the program be further strengthened by supporting 
Mr. Owens' amendment.
  Mrs. ROUKEMA. Mr. Chairman, I move to strike the requisite number of 
words and rise in opposition to the amendment of my friend and 
colleague, the gentleman from New York [Mr. Owens].
  First, I want to say, as I said in my opening statement in the 
debate, that that is a good bipartisan effort and one we should all be 
proud of. And I commend the gentleman from New York because I know his 
is a sincerely felt and sincerely discrete evaluation of the way these 
block grants have been put together.
  I want to point out also to my colleagues that in my opening 
statement in the debate I said that these block grants give appropriate 
safeguards between the relationships between the States and the Federal 
Government, and I sincerely believe that block grants should not be 
open to anybody's discretion to use as they will.
  But I think in this bill we have put those appropriate safeguards 
into place and it will bring us an efficient working relationship, a 
cooperative relationship between the Federal, State, and local 
governments. I believe that sincerely. I think we have done it better 
in this bill than we have done it in many cases.
  Let me just relate that to some of the specifics in this bill, and 
then I will yield to the gentleman from New York.
  As has already been stated by both the chairman and the chairman of 
the subcommittee, the language that was put in this morning in the 
amendment said that summer employment is an essential component of the 
block grant. I think that was quite carefully added.
  Now, in my judgment, and again I suppose this is judgment, but I have 
to say I have looked at this quite carefully. In my judgment, the 
gentleman's amendment, I am afraid, would totally undo the important 
consolidation in the bill for the disadvantaged youth programs because 
it would result, in my opinion, in hurting the hardest-to-serve youths, 
particularly the school dropouts.
  This is an issue that we have to look at, and I come down on the side 
of what the committee has done. And I am afraid that, inadvertently, 
the gentleman would be undermining that particular part of the program. 
I know the gentleman from Pennsylvania [Mr. Goodling], addressed this 
with respect to a 10-percent component of that part of the bill, if I 
am correct. And I think that is very good. Again, it is a matter of 
judgment, but I think we have protected the hardest-to-serve youth, and 
those are the dropouts.
  Finally, I would like to say that it is totally incorrect, in my 
opinion, to say that we are killing the summer youth employment 
program. I think that what we are doing here is providing discretion to 
local communities to provide summer youth employment opportunities that 
are directly linked, and this is important, to academic and 
occupational learning. I think that is important.
  Mr. GOODLING. Mr. Chairman, will the gentlewoman yield?
  Mrs. ROUKEMA. I yield to the gentleman from Pennsylvania, and then I 
will yield to the gentleman from New York.
  Mr. GOODLING. Mr. Chairman, I thank the gentlewoman for yielding, and 
I would like to assure the gentlewoman from Texas that our committee 
also deals with juvenile justice and we deal with juvenile justice 
differently. The gentleman from California [Mr. Riggs], is at the 
present time working with the gentleman from Virginia [Mr. Scott], to 
make sure that we deal with it properly.
  But, again, I have to indicate that what we are doing here is giving 
that local community so much more discretion on how they use their 
youth money so that that gets to those most disadvantaged, and that is 
the attempt of the bill.
  Mrs. ROUKEMA. Reclaiming my time, Mr. Chairman, let me ask the 
gentleman, am I not correct that it gives 100 percent discretion to 
that proportion of the funds that are devoted to the summer employment?
  Mr. GOODLING. At the local community.
  Mrs. ROUKEMA. Discretion for 100 percent at the local level.

                              {time}  1115

  Mr. OWENS. Mr. Chairman, will the gentleman yield?
  Mrs. ROUKEMA. I yield to the gentleman from New York.
  Mr. OWENS. The gentlewoman is a member of the committee so she is 
aware of the fact that this precious consolidation mode of operation 
has been dropped for the dislocated workers. We have a line which 
mandates funding for dislocated workers. What we ask is a mandate for 
summer youth employment.
  Mrs. ROUKEMA. That is not my understanding.
  Mr. OWENS. I hear language, and a central program is not the same as 
a mandate. We have tricks here of the trade which all of us who have 
been legislators understand very well. It leaves it wide open for the 
strangling. The summer youth program will not die in one summer. It 
will be strangled slowly because it is in there with other 
disadvantaged youth programs which have not been treated in any 
favorable manner. They will be transferring funds from the summer youth 
program into the other programs until there will be little left.
  Mrs. ROUKEMA. That is not my interpretation of the funding streams.
  The CHAIRMAN. The time of the gentlewoman from New Jersey [Mrs. 
Roukema] has expired.
  (By unanimous consent, Mrs. Roukema was allowed to proceed for 1 
additional minute.)
  Mrs. ROUKEMA. Mr. Chairman, I yield to the gentleman from 
Pennsylvania, the chairman of the committee.
  Mr. GOODLING. First of all we should not get dislocated workers into 
this discussion because they are protected in the legislation. We made 
very, very sure of that. Again I say the total discretion is left to 
that local community for the use of that fund better than they have 
ever had it before, because we usually tie the hands of local people 
because we have always had the idea that we know what works best from 
Washington, that one size fits all. We are saying that is a mistake. 
Let us let the local communities make those decisions and deal with 
those most in need. I thank the gentlewoman for yielding.
  Mr. WATT of North Carolina. Mr. Chairman, I move to strike the 
requisite number of words.
  Mr. Chairman, I rise in support of the amendment offered by the 
gentleman from New York [Mr. Owens]. But before I debate that, let me 
thank those people who were on the floor earlier giving praise to an 
amendment that had been incorporated or provisions in a bill that had 
been incorporated into this legislation that the gentleman from Texas 
[Mr. Smith] and I supported, and others. It is so infrequent that I get 
any praise on this floor, I always stop to take the time to acknowledge 
that and to thank people on both sides of the aisle for issuing words 
of praise.
  With regard to the bill in general, let me say to the chairman and 
the ranking member on both sides that I have followed this discussion 
and it is my intention to vote for this bill, although I have some 
serious reservations about the entire block granting process; 
reservations which are a product of historical realities in the South 
about how block grants have historically been used when they were in 
vogue at earlier times in our history; reservations about consolidation 
of programs, although I think it is a good idea; reservations about 
giving more and more control to State entities when a lot of these 
problems are in fact problems that are dealt with at the local level 
and should be dealt with at the local level; reservations which have to 
do with the fact that some of our State legislatures are still 
controlled by more rural interests, and those interests tend to get 
taken into account even in a collaborative process which the chairman 
of the subcommittee and the chairman of the committee have talked 
about, to the disadvantage of major urban communities and cities.
  All of those leave me a little concerned about the block grant 
approach and lead me to say that this is an experiment of sorts, as I 
understand it. We are trying to move to a balance that restores control 
to more local and

[[Page H2849]]

State bases and moves it back away from the Federal Government. I am 
prepared as a general proposition to take that experiment and hope, 
like everybody else does, that it is going to work out.
  With respect to the summer youth employment program, however, I do 
believe that we have got to protect it, even though this discussion 
really is a discussion about separating summer youth from the other 
disadvantaged youth block grant programs. In a sense we are kind of 
debating the possibility of pitting those two things against each other 
when both of them are needed. But understand that the disadvantaged 
youth block grant programs tend to address youth who have already 
dropped out of the system, who have already had adverse impacts, and in 
my estimation the summer youth employment programs, at least in the 
communities that I am familiar with, have often been used to address 
the front end of the process, to provide employment to some kids who 
may end up dropping out if we do not intervene with them earlier in the 
process.
  The importance of having a summer youth program that is separate and 
distinct in funding from the general disadvantaged youth block grant 
program, it seems to me, still is important. It is for that reason, 
although I do not want to sound like I am trying to say anything 
negative about the disadvantaged youth block grant program, it is for 
that reason that I am rising in support of the Owens amendment and 
would encourage its adoption.
  The CHAIRMAN. The time of the gentleman from North Carolina [Mr. 
Watt] has expired.
  (By unanimous consent, Mr. Watt of North Carolina was allowed to 
proceed for 1 additional minute.)
  Mr. GOODLING. Mr. Chairman, will the gentleman yield?
  Mr. WATT of North Carolina. I yield to the gentleman from 
Pennsylvania.
  Mr. GOODLING. Mr. Chairman, I just want to assure the gentleman that 
this is not revenue sharing, as those block grants he was talking about 
were. There is very specific language how these block grants must be 
used, including, for instance, the State collaborative process has to 
represent diverse regions of the State, including urban, rural and 
suburban areas. We spell out that we do not revenue share, and I made 
that clear to the governors from day one, that we are not interested in 
revenue sharing.
  Mr. WATT of North Carolina. Reclaiming my time, I appreciate the 
gentleman's clarification on that. I was aware of the collaborative 
process. I still think even in that collaborative process in a number 
of States, rural interests tend to be overrepresented, and it is not 
something that I can scientifically prove to the gentleman. I can just 
tell the gentleman that in a number of Southern States, rural interests 
typically dominate over urban interests. I understand that the 
gentleman has worked hard to try to work out this balance, and I am 
going to vote for the bill regardless of whether this amendment passes 
or not, but I would feel more comfortable if we had this amendment 
passed.
  Mr. MICA. Mr. Chairman, I move to strike the requisite number of 
words.
  Mr. Chairman, if ever in the history of this Congress a program of 
this Federal Government that needs reform cried out for more reform, it 
is this whole area of job training and education, employment training 
and literacy enhancement.
  First I want to salute the gentleman from Pennsylvania [Mr. Goodling] 
and the gentleman from California [Mr. McKeon] for their work in 
crafting this proposal. Our purpose is really to help those without job 
and without opportunity, particularly those youth. I want to first 
speak about the bill itself and then oppose the Owens amendment that 
has been presented here today.
  First of all, let me just give my colleagues an example from my State 
of Florida. This is an article that appeared a year ago in February and 
it talks about job training programs. It said, with all the job 
training programs in Florida, my State, that we spent $1 billion, 
Federal and local money. ``Job Training Programs Not Making the Grade'' 
is the headline of this article. We spent $1 billion and less than 20 
percent of those who entered a program completed the program. Of that, 
19 percent got a job and most of those, the majority of those, who got 
a job got a job at minimum or just above minimum wage. A total failure 
if we are trying to employ people in this country.
  Then just a month ago in the Washington Post, the city spent $11 
million it has received through Federal job training programs. They 
also raised $7.3 million in local tax dollars designated for job 
training programs without a single person being trained.
  This is a program that cries out for reform. What would the Owens 
amendment do in the area of summer job employment? It would maintain 
the status quo, the record of failure.
  The main purpose of this bill in the area of summer job employment is 
to refocus the programs on providing comprehensive academic and 
occupational learning opportunities for our disadvantaged youth. I am 
for getting kids back into school and in addition into providing 
employment opportunities. That is what this bill is all about. What are 
those who have had experience saying about this?
  The National Governors Association, the Conference of State 
Legislatures, and the National Association of Counties support the 
agreement reached on this issue that is contained in this bill and 
oppose a separate stand-alone summer program. They have tried it. It 
does not work. This is the record of failure. When this Congress asks 
people on welfare or disadvantaged people to go to work, we want them 
to have the opportunity to find a job, to learn a skill, and the 
Federal Government should be helping with a program that works, not 
with a program that is a failure. This is a record of failure, and this 
record cannot continue.
  I urge my colleagues to defeat the Owens amendment. It destroys the 
intent, the purpose and the experience that we have seen that is a 
record of failure, and then pass this bill and give our disadvantaged, 
give our youth, and give the people without a job in this country the 
opportunity to learn a skill and to earn a living wage and to have the 
Government be a helping hand rather than a partner that has failed.
  Mr. RIGGS. Mr. Chairman, I move to strike the requisite number of 
words.
  Mr. Chairman, let me first address the comparison that some have made 
with the dedicated funding stream for dislocated adult workers to what 
the gentleman from New York [Mr. Owens] is trying to do in his 
amendment. It is important, I think, to understand that yes, we do have 
a dedicated funding stream in the adult block grant for dislocated 
workers. That is certainly in keeping with the whole concept behind the 
Job Training Partnership Act that State and local communities be able 
to respond rapidly to a plant closure or to massive, large-scale type 
of layoffs. However, that is still part of one system, the overall 
adult block grant, the overall adult job training and reemployment 
system.
  What the gentleman from New York [Mr. Owens] is talking about doing 
here is creating a separate stand-alone program that is really contrary 
to the overall philosophy of the bill with respect to creating a single 
block grant for youth. What we are trying to do in the area of youth is 
to encourage young people, particularly those who are at risk of 
dropping out of school, so let us call them the dropout prone, we are 
trying to encourage them to stay in school or if they drop out from 
school to return to school. Therefore, with respect to emphasis on 
schooling, with the emphasis on academics, it is very important, in my 
view, to link summer youth employment to the school-based program for 
at-risk youth. That is why it is again all part of the same system.

                              {time}  1130

  The overall philosophy with respect to adults, and I will be happy to 
yield to my friend in just a moment, but the overall philosophy with 
adults of course is to take a work force or employment first approach, 
try to get those adults who can be readily reemployed in the work force 
back into that work force at the earliest possible date and then target 
intensified services to the hard to employ. Those are the folks who 
perhaps are welfare recipients, chronically unemployed or underemployed 
folks, and they are the ones who need intensive services.
  So that is kind of the over arching philosophy behind our bill.

[[Page H2850]]

  Second, let me address the concern that many of my colleagues and 
friends on the Democratic side of the aisle have expressed, and that is 
that this Congress is not going to take aggressive action in the area 
of juvenile crime prevention and delinquency prevention. Let me assure 
my colleagues that we are hard at work in our Subcommittee on Early 
Childhood, Youth and Families and trying to craft a bipartisan bill 
dealing with juvenile crime prevention, and in that regard I am working 
very closely with my good friend and colleague, the ranking member of 
the subcommittee, the gentleman from California [Mr. Martinez] and the 
gentleman from Virginia [Mr. Scott] and others who have expressed a 
keen interest in this area, and we hope we can bring a bill that the 
House can favorably consider here to the floor in the next few weeks. 
That is going to be in tandem with our bill reauthorizing the Perkins 
Vocational Educational Act, and that, the Perkins Vocational Education 
Act, is going to be targeted at again those young people who are 
educationally disadvantaged or who are at risk of dropping out from 
school, and that bill is going to take an emphasis, take an approach, 
that combines an emphasis on strong academics with expanded vocation 
and technical educational opportunity for those young people.
  The other point I want to make to my good friend, the gentleman from 
New York [Mr. Owens] before yielding is that by putting all these funds 
in a block grant, driving them down locally, the local communities will 
have 100 percent discretion on the proportion of funds that are devoted 
to summer employment and to year-round services respectively, and that 
could result in those local communities spending even more, again at 
their sole discretion, on the Summer Youth Employment Program than they 
are currently spending.
  So I wanted to make that point, and I am going to yield to the 
gentleman from New York [Mr. Owens], my colleague and friend, and 
perhaps he could respond to the point I just made, which is again, if 
possible, under our bill for local communities to spend even more on 
summer youth employment than they are currently spending.
  Mr. Chairman, I yield to the gentleman from New York [Mr. Owens].
  Mr. OWENS. Mr. Chairman, I want to ask the gentleman if he was aware 
of the fact that the CRS figures which show the funding pattern for the 
youth training programs other than summer youth, which we were talking 
about before, which was badly needed, and the gentleman said they were 
badly needed, and I agree. But they have been reduced by almost three-
quarters, from 676.7 million in 1993 to the present proposed funding of 
126.7 million. They have been reduced steadily.
  At the same time, because we came on this floor and we fought for the 
Summer Youth Employment Program, even though people in government, 
State governments, did not consider it important, they have raised the 
amount of funding for some youth employment. So what we are going to 
have is the unpopularity of the summer youth training programs year-
round, resulting in not having adequate funding. So they will take the 
funding away from summer youth. That is the simple problem we worried 
about, that they are going to drain the funds from the summer youth 
because the discretion is going to be in the hands of people. We do not 
care about summer youth in our cities; they will find somewhere else to 
spend them in the States.
  Mr. RIGGS. Reclaiming my time, Mr. Chairman, I certainly care.
  The CHAIRMAN. The time of the gentleman from California [Mr. Riggs] 
has expired.
  (By unanimous consent, Mr. RIGGS was allowed to proceed for 1 
additional minute.)
  Mr. RIGGS. Mr. Chairman, let me just point out to my colleagues, and 
I really in this regard extend a hand across the aisle; I personally 
believe we cannot afford to lose, as a country, another generation of 
urban school-aged children. So all of our efforts, I think, should be 
focused on those young people again who live in the most economically 
disadvantaged circumstances, who are surrounded many times by a sea of 
poverty and joblessness, and, as my colleagues know, the other symptoms 
of social decay.
  So I want to work with the gentleman, but I would be happy to tell 
the gentleman from New York [Mr. Owens] that we should go together to 
the appropriators and make the argument that they need to look at this 
particular block grant, the youth opportunity employment and training 
grant, that is created under our bill and make that a priority for 
funding as they deliberate the appropriations.
  Mr. OWENS. I agree with the gentleman.
  Mr. RIGGS. I do not believe that we should be creating a separate 
program. We have to provide discretion to local communities to provide 
summer employment opportunities that are directly linked to academic 
and occupational learning, as other speakers have mentioned, and local 
communities should be making these decisions, not the Federal 
Government.
  Ms. VELAZQUEZ. Mr. Chairman, I rise today to add my voice and the 
voice of thousands of young people from my district in support of the 
Owens amendment to safeguard the Summer Youth Employment Program.
  For several weeks each summer, SYEP provides jobs to over 600,000 
disadvantaged youth across the country, many of them in my district. 
Yet, H.R. 1385 jeopardizes this program and the future of our young 
people. Passage of the Owens amendment will provide hope to so many of 
our at-risk children.
  I recently received a letter from Vashia Rhone, a young constituent 
of mine. Vashia's letter shows us the kind of impact programs like this 
have. She writes:

       Growing up, I often felt trapped and like I had no place to 
     go. However, something that helped me was, as I became older, 
     I discovered places to go and things to do such as after-
     school programs and STEP. Believe it or not, it's true. If 
     young people are working, they will be off the streets. If 
     young people are working, their esteem level goes up. They 
     begin to feel good about themselves, and they learn 
     independence. Please consider this and represent the youth of 
     New York City and protect their future.

  My colleagues, this program does work. I urge all of you to support 
the Owens amendment and support SYEP. We owe it to our kids. We owe it 
to their future.
  Ms. PELOSI. Mr. Chairman, I rise in strong support of the Owens-
Martinez amendment to H.R. 1385 to separate the summer youth employment 
program from the disadvantaged youth block grant contained in this 
legislation.
  Summer youth employment is a critical program in my district in San 
Francisco and in communities across the Nation. This program is often 
the first opportunity at-risk youth have to gain exposure to the ethic, 
the structure and the value of work. Currently, only 50 percent of the 
youth eligible for this program participate. If this program is 
included in the consolidated block grant, it is most likely less than 
that number would be reached by this successful program.
  This is a program that works and that teaches. The welfare law makes 
it imperative for us to help people find and maintain work with a 
living wage. It is critical for young people to learn the skills 
necessary to be successfully employed. The Summer Youth Program reaches 
out to at-risk young people to teach them this and more.
  For these reasons, it is essential that the Summer Youth Employment 
Program be maintained as a separate program, maintained as a required 
rather than allowable activity and receive a separate appropriation 
consistent with current funding.
  I urge my colleagues to support the Owens-Martinez amendment and show 
your commitment to a successful job training opportunity for at-risk 
youth.
  The CHAIRMAN. The question is on the amendment offered by the 
gentleman from New York [Mr. Owens].
  The question was taken; and the Chairman announced that the noes 
appeared to have it.


                             Recorded Vote

  Mr. OWENS. Mr. Chairman, I demand a recorded vote.
  A recorded vote was ordered.
  The vote was taken by electronic device, and there were--ayes 168, 
noes 238, not voting 27, as follows:

                             [Roll No. 137]

                               AYES--168

     Abercrombie
     Allen
     Baldacci
     Barcia
     Barrett (WI)
     Becerra
     Bentsen
     Berman
     Berry
     Bishop
     Blagojevich
     Blumenauer
     Bonior
     Borski
     Boswell
     Brown (CA)
     Brown (FL)
     Capps
     Cardin
     Carson
     Clay
     Clayton
     Clement
     Clyburn
     Conyers
     Costello
     Coyne
     Cummings
     Davis (FL)
     Davis (IL)
     DeFazio
     Delahunt
     DeLauro
     Dellums
     Deutsch
     Dicks
     Dingell
     Dixon
     Doggett
     Dooley
     Doyle
     Edwards
     Engel
     Ensign
     Eshoo
     Etheridge
     Evans
     Farr

[[Page H2851]]


     Fattah
     Fazio
     Filner
     Foglietta
     Ford
     Frank (MA)
     Frost
     Furse
     Gejdenson
     Gonzalez
     Gordon
     Green
     Hall (OH)
     Harman
     Hastings (FL)
     Hilliard
     Hinchey
     Hinojosa
     Holden
     Hooley
     Jackson (IL)
     Jackson-Lee (TX)
     Johnson (WI)
     Johnson, E. B.
     Kanjorski
     Kaptur
     Kennedy (MA)
     Kennedy (RI)
     Kennelly
     Kildee
     Kilpatrick
     Kind (WI)
     Kingston
     Kleczka
     Klink
     Kucinich
     LaFalce
     Lampson
     Lantos
     LaTourette
     Levin
     Lewis (GA)
     Lowey
     Luther
     Maloney (CT)
     Maloney (NY)
     Markey
     Martinez
     Mascara
     Matsui
     McCarthy (MO)
     McCarthy (NY)
     McDermott
     McGovern
     McHale
     McIntyre
     McKinney
     McNulty
     Meehan
     Meek
     Menendez
     Millender-McDonald
     Mink
     Moakley
     Mollohan
     Moran (VA)
     Nadler
     Neal
     Obey
     Olver
     Ortiz
     Owens
     Pallone
     Pastor
     Payne
     Pelosi
     Pickett
     Poshard
     Price (NC)
     Rahall
     Rangel
     Reyes
     Rivers
     Rodriguez
     Rothman
     Roybal-Allard
     Rush
     Sanchez
     Sanders
     Sandlin
     Sawyer
     Scott
     Serrano
     Skaggs
     Slaughter
     Snyder
     Spratt
     Stabenow
     Stark
     Stokes
     Strickland
     Stupak
     Tauscher
     Thompson
     Thurman
     Tierney
     Torres
     Traficant
     Velazquez
     Vento
     Visclosky
     Waters
     Watt (NC)
     Waxman
     Wexler
     Weygand
     Wise
     Woolsey
     Wynn
     Yates

                               NOES--238

     Aderholt
     Archer
     Armey
     Bachus
     Baesler
     Baker
     Barr
     Barrett (NE)
     Bartlett
     Barton
     Bass
     Bateman
     Bereuter
     Bilbray
     Bilirakis
     Bliley
     Blunt
     Boehner
     Bonilla
     Bono
     Boucher
     Boyd
     Brady
     Bryant
     Bunning
     Burr
     Burton
     Callahan
     Calvert
     Camp
     Campbell
     Canady
     Cannon
     Castle
     Chabot
     Chambliss
     Chenoweth
     Christensen
     Coble
     Coburn
     Collins
     Combest
     Condit
     Cook
     Cooksey
     Cox
     Cramer
     Crane
     Crapo
     Cubin
     Cunningham
     Danner
     Davis (VA)
     Deal
     DeLay
     Diaz-Balart
     Dickey
     Doolittle
     Dreier
     Duncan
     Dunn
     Ehlers
     Ehrlich
     Emerson
     English
     Everett
     Ewing
     Fawell
     Foley
     Forbes
     Fowler
     Fox
     Franks (NJ)
     Frelinghuysen
     Gallegly
     Ganske
     Gekas
     Gibbons
     Gilchrest
     Gilman
     Goode
     Goodlatte
     Goodling
     Goss
     Graham
     Granger
     Greenwood
     Gutknecht
     Hall (TX)
     Hamilton
     Hansen
     Hastert
     Hastings (WA)
     Hayworth
     Hefley
     Herger
     Hill
     Hilleary
     Hobson
     Hoekstra
     Horn
     Hostettler
     Houghton
     Hoyer
     Hulshof
     Hunter
     Hutchinson
     Hyde
     Inglis
     Istook
     Jenkins
     John
     Johnson (CT)
     Johnson, Sam
     Jones
     Kasich
     Kelly
     Kim
     King (NY)
     Klug
     Knollenberg
     Kolbe
     LaHood
     Largent
     Latham
     Lazio
     Leach
     Lewis (CA)
     Lewis (KY)
     Linder
     Lipinski
     Livingston
     Lofgren
     Lucas
     Manzullo
     McCollum
     McCrery
     McDade
     McHugh
     McInnis
     McIntosh
     McKeon
     Metcalf
     Mica
     Miller (FL)
     Minge
     Moran (KS)
     Morella
     Myrick
     Nethercutt
     Neumann
     Ney
     Northup
     Norwood
     Nussle
     Oberstar
     Oxley
     Packard
     Pappas
     Parker
     Pascrell
     Paul
     Paxon
     Pease
     Peterson (MN)
     Peterson (PA)
     Petri
     Pickering
     Pitts
     Pombo
     Pomeroy
     Porter
     Portman
     Pryce (OH)
     Radanovich
     Ramstad
     Regula
     Riggs
     Riley
     Roemer
     Rogan
     Rogers
     Rohrabacher
     Ros-Lehtinen
     Roukema
     Royce
     Ryun
     Sabo
     Salmon
     Sanford
     Saxton
     Scarborough
     Schaefer, Dan
     Schaffer, Bob
     Sensenbrenner
     Sessions
     Shadegg
     Shaw
     Shays
     Sherman
     Shimkus
     Shuster
     Sisisky
     Skeen
     Smith (MI)
     Smith (NJ)
     Smith (OR)
     Smith (TX)
     Smith, Adam
     Smith, Linda
     Snowbarger
     Solomon
     Souder
     Spence
     Stearns
     Stenholm
     Stump
     Sununu
     Talent
     Tanner
     Tauzin
     Taylor (MS)
     Taylor (NC)
     Thomas
     Thornberry
     Thune
     Tiahrt
     Turner
     Upton
     Walsh
     Wamp
     Weldon (FL)
     Weldon (PA)
     Weller
     White
     Whitfield
     Wolf
     Young (AK)

                             NOT VOTING--27

     Ackerman
     Andrews
     Ballenger
     Boehlert
     Brown (OH)
     Buyer
     DeGette
     Flake
     Gephardt
     Gillmor
     Gutierrez
     Hefner
     Jefferson
     LoBiondo
     Manton
     Miller (CA)
     Molinari
     Murtha
     Quinn
     Schiff
     Schumer
     Skelton
     Towns
     Watkins
     Watts (OK)
     Wicker
     Young (FL)

                              {time}  1157

  The Clerk announced the following pairs:
  On this vote:

       Mr. Quinn for, with Mr. Watts of Oklahoma against.
       Mr. Towns for, with Mr. Wicker against.

  Messrs. BOEHNER and BEREUTER changed their vote from ``aye'' to 
``no.''
  Ms. McCARTHY of Missouri and Mr. HINCHEY changed their vote from 
``no'' to ``aye.''
  So the amendment was rejected.
  The result of the vote was announced as above recorded.
  (Mr. SOLOMON asked and was given permission to speak out of order for 
1 minute.)


 Procedure for Consideration of Amendments to Concurrent Resolution on 
                               the Budget

  Mr. SOLOMON. Mr. Chairman, I have asked to address the House for the 
purposes of making an announcement about next week's budget debate 
which concerns every Member of the House.
  Mr. Chairman, the Committee on the Budget expects to order the budget 
resolution reported later today, and copies of that resolution approved 
by that committee will be available for review in the office of the 
Committee on the Budget.
  The Committee on Rules is planning to meet on Monday, May 19, to 
grant a rule which will limit the kind of amendments offered to the 
concurrent resolution on the budget for fiscal year 1998. Members are 
advised, strongly advised to submit only amendments in the nature of a 
substitute which provide for a balanced budget no later than 2002. If 
they are not balanced, they will not be made in order on this floor.
  Any Member who is contemplating an amendment to the budget resolution 
should file 55 copies and an explanation by noon on Monday, May 19, to 
the office of the Committee on Rules in room 312, up above. In 
addition, Members should also print their amendments in the amendment 
section of the Congressional Record on Monday, May 19.
  I am informed that we will have pro forma sessions on both Saturday 
and Sunday so that the budget will be available to those of my 
colleagues that want to work on it over the weekend.

                              {time}  1200

  Mr. MOAKLEY. Mr. Chairman, will the gentleman yield?
  Mr. SOLOMON. I yield to the gentleman from Massachusetts.
  Mr. MOAKLEY. Mr. Chairman, I thank the chairman of the Committee on 
Rules for yielding to me.
  Mr. Chairman, I am very happy that the gentleman made the 
announcement. Am I clear that only amendments in the nature of a 
substitute will be honored by the Committee on Rules?
  Mr. SOLOMON. That is correct. All of the amendments must be in the 
nature of a substitute, and they must be balanced by the year 2002.
  Mr. MOAKLEY. Right. And I hope the chairman is going to give adequate 
time for these amendments in the nature of a substitute to be debated 
on the floor of the House.
  Mr. SOLOMON. The gentleman is one of my closest advisers, and I will 
consult with him and we will work this out, I am sure.
  Mr. MOAKLEY. Mr. Chairman, also, I would ask the gentleman, would the 
CBO be able to score all these amendments in the nature of a substitute 
in time?
  Mr. SOLOMON. Yes, they would. The CBO is available, and they will be 
working overtime to assist the Members in making sure that their 
substitutes are scored by CBO.
  Mr. MOAKLEY. Mr. Chairman, I thank the chairman of the Committee on 
Rules.
  The CHAIRMAN. The Committee will rise informally.
  The SPEAKER pro tempore (Mr. Latham) assumed the Chair.

                          ____________________