[Congressional Record Volume 144, Number 52 (Friday, May 1, 1998)]
[Senate]
[Pages S3963-S4021]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              WORKFORCE INVESTMENT PARTNERSHIP ACT OF 1997

  The PRESIDING OFFICER (Mr. Allard). The Chair lays before the Senate 
S. 1186.
  The assistant legislative clerk read as follows:

       A bill (S. 1186) to provide for education and training and 
     for other purposes.

  The Senate proceeded to consider the bill, which had been reported 
from the Committee on Labor and Human Resources, with an amendment to 
strike all after the enacting clause and inserting in lieu thereof the 
following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Workforce 
     Investment Partnership Act of 1997''.
       (b) Table of Contents.--The table of contents is as 
     follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.

      TITLE I--VOCATIONAL, TECHNOLOGICAL, AND TECH-PREP EDUCATION

Sec. 101. Short title.
Sec. 102. Findings and purpose.
Sec. 103. Voluntary selection and participation.

                    Subtitle A--Vocational Education

                     Chapter 1--Federal Provisions

Sec. 111. Reservations and State allotment.
Sec. 112. Performance measures and expected levels of performance.
Sec. 113. Assistance for the outlying areas.
Sec. 114. Indian and Hawaiian Native programs.
Sec. 115. Tribally controlled postsecondary vocational institutions.
Sec. 116. Incentive grants.

                      Chapter 2--State Provisions

Sec. 121. State administration.
Sec. 122. State use of funds.
Sec. 123. State leadership activities.
Sec. 124. State plan.

[[Page S3964]]

                      Chapter 3--Local Provisions

Sec. 131. Distribution for secondary school vocational education.
Sec. 132. Distribution for postsecondary vocational education.
Sec. 133. Local activities.
Sec. 134. Local application.

                    Subtitle B--Tech-Prep Education

Sec. 151. Short title.
Sec. 152. Purposes.
Sec. 153. Definitions.
Sec. 154. Program authorized.
Sec. 155. Tech-prep education programs.
Sec. 156. Applications.
Sec. 157. Authorization of appropriations.

                     Subtitle C--General Provisions

Sec. 161. Administrative provisions.
Sec. 162. Evaluation, improvement, and accountability.
Sec. 163. National activities.
Sec. 164. National assessment of vocational education programs.
Sec. 165. National research center.
Sec. 166. Data systems.

              Subtitle D--Authorization of Appropriations

Sec. 171. Authorization of appropriations.

                           Subtitle E--Repeal

Sec. 181. Repeal.

                 TITLE II--ADULT EDUCATION AND LITERACY

Sec. 201. Short title.
Sec. 202. Findings and purpose.

           Subtitle A--Adult Education and Literacy Programs

                     Chapter 1--Federal Provisions

Sec. 211. Reservation; grants to States; allotments.
Sec. 212. Performance measures and expected levels of performance.
Sec. 213. National leadership activities.

                      Chapter 2--State Provisions

Sec. 221. State administration.
Sec. 222. State distribution of funds; State share.
Sec. 223. State leadership activities.
Sec. 224. State plan.
Sec. 225. Programs for corrections education and other 
              institutionalized individuals.

                      Chapter 3--Local Provisions

Sec. 231. Grants and contracts for eligible providers.
Sec. 232. Local application.
Sec. 233. Local administrative cost limits.

                     Chapter 4--General Provisions

Sec. 241. Administrative provisions.
Sec. 242. Priorities and preferences.
Sec. 243. Incentive grants.
Sec. 244. Evaluation, improvement, and accountability.
Sec. 245. National Institute for Literacy.
Sec. 246. Authorization of appropriations.

                           Subtitle B--Repeal

Sec. 251. Repeal.

         TITLE III--WORKFORCE INVESTMENT AND RELATED ACTIVITIES

              Subtitle A--Workforce Investment Activities

   Chapter 1--Allotments To States for Adult Employment and Training 
 Activities, Dislocated Worker Employment and Training Activities, and 
                            Youth Activities

Sec. 301. General authorization.
Sec. 302. State allotments.
Sec. 303. Statewide partnership.
Sec. 304. State plan.

       Chapter 2--Allocations To Local Workforce Investment Areas

Sec. 306. Within State allocations.
Sec. 307. Local workforce investment areas.
Sec. 308. Local workforce investment partnerships and youth 
              partnerships.
Sec. 309. Local plan.

        Chapter 3--Workforce Investment Activities and Providers

Sec. 311. Identification and oversight of one-stop partners and one-
              stop customer service center operators.
Sec. 312. Determination and identification of eligible providers of 
              training services by program.
Sec. 313. Identification of eligible providers of youth activities.
Sec. 314. Statewide workforce investment activities.
Sec. 315. Local employment and training activities.
Sec. 316. Local youth activities.

                     Chapter 4--General Provisions

Sec. 321. Accountability.
Sec. 322. Authorization of appropriations.

                         Subtitle B--Job Corps

Sec. 331. Purposes.
Sec. 332. Definitions.
Sec. 333. Establishment.
Sec. 334. Individuals eligible for the Job Corps.
Sec. 335. Recruitment, screening, selection, and assignment of 
              enrollees.
Sec. 336. Enrollment.
Sec. 337. Job Corps centers.
Sec. 338. Program activities.
Sec. 339. Counseling and job placement.
Sec. 340. Support.
Sec. 341. Operating plan.
Sec. 342. Standards of conduct.
Sec. 343. Community participation.
Sec. 344. Industry councils.
Sec. 345. Advisory committees.
Sec. 346. Experimental, research, and demonstration projects.
Sec. 347. Application of provisions of Federal law.
Sec. 348. Special provisions.
Sec. 349. Management information.
Sec. 350. General provisions.
Sec. 351. Authorization of appropriations.

                     Subtitle C--National Programs

Sec. 361. Native American programs.
Sec. 362. Migrant and seasonal farmworker programs.
Sec. 363. Veterans' workforce investment programs.
Sec. 364. Youth opportunity grants.
Sec. 365. Incentive grants.
Sec. 366. Technical assistance.
Sec. 367. Demonstration, pilot, multiservice, research, and multistate 
              projects.
Sec. 368. Evaluations.
Sec. 369. National emergency grants.
Sec. 370. Authorization of appropriations.

                       Subtitle D--Administration

Sec. 371. Requirements and restrictions.
Sec. 372. Prompt allocation of funds.
Sec. 373. Monitoring.
Sec. 374. Fiscal controls; sanctions.
Sec. 375. Reports; recordkeeping; investigations.
Sec. 376. Administrative adjudication.
Sec. 377. Judicial review.
Sec. 378. Nondiscrimination.
Sec. 379. Administrative provisions.
Sec. 380. State legislative authority.

             Subtitle E--Repeals and Conforming Amendments

Sec. 391. Repeals.
Sec. 392. Conforming amendments.
Sec. 393. Effective dates.

           TITLE IV--WORKFORCE INVESTMENT-RELATED ACTIVITIES

                     Subtitle A--Wagner-Peyser Act

Sec. 401. Definitions.
Sec. 402. Functions.
Sec. 403. Designation of State agencies.
Sec. 404. Appropriations.
Sec. 405. Disposition of allotted funds.
Sec. 406. State plans.
Sec. 407. Repeal of Federal Advisory Council.
Sec. 408. Regulations.
Sec. 409. Labor market information.
Sec. 410. Technical amendments.

                Subtitle B--Linkages With Other Programs

Sec. 421. Trade Act of 1974.
Sec. 422. National Apprenticeship Act.
Sec. 423. Veterans' employment programs.
Sec. 424. Older Americans Act of 1965.

                      TITLE V--GENERAL PROVISIONS

Sec. 501. State unified plans.
Sec. 502. Transition provisions.
Sec. 503. Effective date.

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) Adult.--In paragraph (14) and title III, the term 
     ``adult'' means an individual who is age 22 or older.
       (2) Adult education.--The term ``adult education'' means 
     services or instruction below the postsecondary level for 
     individuals--
       (A) who have attained 16 years of age or who are beyond the 
     age of compulsory school attendance under State law;
       (B) who are not enrolled in secondary school; and
       (C) who--
       (i) lack sufficient mastery of basic educational skills to 
     enable the individuals to function effectively in society;
       (ii) do not possess a secondary school diploma or its 
     recognized equivalent; or
       (iii) are unable to speak, read, or write the English 
     language.
       (3) Area vocational education school.--The term ``area 
     vocational education school'' means--
       (A) a specialized public secondary school used exclusively 
     or principally for the provision of vocational education for 
     individuals who seek to study and prepare for entering the 
     labor market;
       (B) the department of a public secondary school exclusively 
     or principally used for providing vocational education in not 
     fewer than 5 different occupational fields to individuals who 
     are available for study in preparation for entering the labor 
     market;
       (C) a technical institute or vocational school used 
     exclusively or principally for the provision of vocational 
     education to individuals who have completed or left public 
     secondary school and who seek to study and prepare for 
     entering the labor market, if the institute or school admits 
     as regular students both individuals who have completed 
     public secondary school and individuals who have left public 
     secondary school; or
       (D) the department or division of a junior college, 
     community college, or university operating under the policies 
     of the eligible agency and that provides vocational education 
     in not fewer than 5 different occupational fields leading to 
     immediate employment but not necessarily leading to a 
     baccalaureate degree, if the department or division admits as 
     regular students both individuals who have completed public 
     secondary school and individuals who have left public 
     secondary school.
       (4) Chief elected official.--The term ``chief elected 
     official'' means the chief elected executive officer of a 
     unit of general local government in a local area.
       (5) Disadvantaged adult.--In title III, and except as 
     provided in section 302, the term ``disadvantaged adult'' 
     means an adult who is a low-income individual.
       (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)(I) is eligible for or has exhausted entitlement to 
     unemployment compensation; or
       (II) has been employed for a duration sufficient to 
     demonstrate, to the appropriate entity at a one-stop customer 
     service center, attachment to the workforce, but is not 
     eligible for unemployment compensation due to insufficient 
     earnings or having performed services for an

[[Page S3965]]

     employer that were not covered under a State unemployment 
     compensation law; and
       (iii) is unlikely to return to a previous industry or 
     occupation;
       (B)(i) has been terminated or laid off, or has received a 
     notice of termination or layoff, from employment as a result 
     of any permanent closure of, or any substantial layoff at, a 
     plant, facility, or enterprise;
       (ii) is employed at a facility at which the employer has 
     made a general announcement that such facility will close 
     within 180 days; or
       (iii) for purposes of eligibility to receive services under 
     title III other than training services described in section 
     315(c)(3), intensive services, or supportive services, is 
     employed at a facility at which the employer has made a 
     general announcement that such facility will close;
       (C) was self-employed (including employment as a farmer, a 
     rancher, or a fisherman) but is unemployed as a result of 
     general economic conditions in the community in which the 
     individual resides or because of natural disasters; or
       (D) is a displaced homemaker.
       (7) Displaced homemaker.--The term ``displaced homemaker'' 
     means an individual who has been providing unpaid services to 
     family members in the home and who--
       (A) has been dependent on the income of another family 
     member but is no longer supported by that income; and
       (B) is unemployed or underemployed and is experiencing 
     difficulty in obtaining or upgrading employment.
       (8) Economic development agencies.--The term ``economic 
     development agencies'' includes local planning and zoning 
     commissions or boards, community development agencies, and 
     other local agencies and institutions responsible for 
     regulating, promoting, or assisting in local economic 
     development.
       (9) Educational service agency.--The term ``educational 
     service agency'' means a regional public multiservice agency 
     authorized by State statute to develop and manage a service 
     or program, and provide the service or program to a local 
     educational agency.
       (10) Elementary school; local educational agency.--The 
     terms ``elementary school'' and ``local educational agency'' 
     have the meanings given the terms in section 14101 of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     8801).
       (11) Eligible agency.--The term ``eligible agency'' means--
       (A) in the case of vocational education activities or 
     requirements described in title I--
       (i) the individual, entity, or agency in a State or an 
     outlying area responsible for administering or setting policy 
     for vocational education in the State or outlying area, 
     respectively, pursuant to the law of the State or outlying 
     area, respectively; or
       (ii) if no individual, entity, or agency is responsible for 
     administering or setting such policy pursuant to the law of 
     the State or outlying area, the individual, entity, or agency 
     in a State or outlying area, respectively, responsible for 
     administering or setting policy for vocational education in 
     the State or outlying area, respectively, on the date of 
     enactment of the Workforce Investment Partnership Act of 
     1997; and
       (B) in the case of adult education and literacy activities 
     or requirements described in title II--
       (i) the individual, entity, or agency in a State or an 
     outlying area responsible for administering or setting policy 
     for adult education and literacy in the State or outlying 
     area, respectively, pursuant to the law of the State or 
     outlying area, respectively; or
       (ii) if no individual, entity, or agency is responsible for 
     administering or setting such policy pursuant to the law of 
     the State or outlying area, the individual, entity, or agency 
     in a State or outlying area, respectively, responsible for 
     administering or setting policy for adult education and 
     literacy in the State or outlying area, respectively, on the 
     date of enactment of the Workforce Investment Partnership Act 
     of 1997.
       (12) Eligible institution.--In title I, the term ``eligible 
     institution'' means--
       (A) an institution of higher education;
       (B) a local educational agency providing education at the 
     postsecondary level;
       (C) an area vocational education school providing education 
     at the postsecondary level;
       (D) a postsecondary educational institution controlled by 
     the Bureau of Indian Affairs or operated by or on behalf of 
     any Indian tribe that is eligible to contract with the 
     Secretary of the Interior for the administration of programs 
     under the Indian Self-Determination Act or the Act of April 
     16, 1934 (48 Stat. 596; 25 U.S.C. 452 et seq.); and
       (E) a consortium of 2 or more of the entities described in 
     subparagraphs (A) through (D).
       (13) Eligible provider.--The term ``eligible provider''--
       (A) in title II, means--
       (i) a local educational agency;
       (ii) a community-based organization;
       (iii) an institution of higher education;
       (iv) a public or private nonprofit agency;
       (v) a consortium of such agencies, organizations, or 
     institutions; or
       (vi) a library; and
       (B) in title III, used with respect to--
       (i) training services (other than on-the-job training), 
     means a provider who is identified in accordance with section 
     312;
       (ii) youth activities, means a provider who is awarded a 
     grant in accordance with section 313; or
       (iii) other workforce investment activities, means a public 
     or private entity selected to be responsible for such 
     activities, in accordance with subtitle A of title III, such 
     as a one-stop customer service center operator designated or 
     certified under section 311.
       (14) Employment and training activity.--The term 
     ``employment and training activity'' means an activity 
     described in section 314(b)(1) or subsection (c)(1) or (d) of 
     section 315, carried out for an adult or dislocated worker.
       (15) English literacy program.--The term ``English literacy 
     program'' means a program of instruction designed to help 
     individuals of limited English proficiency achieve competence 
     in the English language.
       (16) Governor.--The term ``Governor'' means the chief 
     executive officer of a State.
       (17) Individual with a disability.--
       (A) In general.--The term ``individual with a disability'' 
     means an individual with any disability (as defined in 
     section 3 of the Americans with Disabilities Act of 1990 (42 
     U.S.C. 12102)).
       (B) Individuals with disabilities.--The term ``individuals 
     with disabilities'' means more than 1 individual with a 
     disability.
       (18) Individual of limited english proficiency.--The term 
     ``individual of limited English proficiency'' means an adult 
     or out-of-school youth who has limited ability in speaking, 
     reading, writing, or understanding the English language, 
     and--
       (A) whose native language is a language other than English; 
     or
       (B) who lives in a family or community environment where a 
     language other than English is the dominant language.
       (19) Institution of higher education.--Except for purposes 
     of subtitle B of title I, the term ``institution of higher 
     education'' has the meaning given the term in section 1201(a) 
     of the Higher Education Act of 1965 (20 U.S.C. 1141(a)).
       (20) Literacy.--
       (A) In general.--The term ``literacy'' means an 
     individual's ability to read, write, and speak in English, 
     compute, and solve problems, at levels of proficiency 
     necessary to function on the job and in society.
       (B) Workplace literacy program.--The term ``workplace 
     literacy program'' means a program of literacy activities 
     that is offered in the workplace for the purpose of improving 
     the productivity of the workforce through the improvement of 
     literacy skills.
       (21) Local area.--In paragraph (4) and title III, the term 
     ``local area'' means a local workforce investment area 
     designated under section 307.
       (22) Local partnership.--In title III, the term ``local 
     partnership'' means a local workforce investment partnership 
     established under section 308(a).
       (23) Local performance measure.--The term ``local 
     performance measure'' means a performance measure established 
     under section 321(b).
       (24) Low-income individual.--In paragraph (49) and title 
     III, the term ``low-income individual'' means an individual 
     who--
       (A) receives, or is a member of a family that receives, 
     cash payments under a Federal, State, or local income-based 
     public assistance program;
       (B) received an income, or is a member of a family that 
     received a total family income, for the 6-month period prior 
     to application for the program involved (exclusive of 
     unemployment compensation, child support payments, payments 
     described in subparagraph (A), and old-age and survivors 
     insurance benefits received under section 202 of the Social 
     Security Act (42 U.S.C. 402)) that, in relation to family 
     size, does not exceed the higher of--
       (i) the poverty line, for an equivalent period; or
       (ii) 70 percent of the lower living standard income level, 
     for an equivalent period;
       (C) is a member of a household that receives (or has been 
     determined within the 6-month period prior to application for 
     the program involved to be eligible to receive) food stamps 
     pursuant to the Food Stamp Act of 1977 (7 U.S.C. 2011 et 
     seq.);
       (D) qualifies as a homeless individual, as defined in 
     subsections (a) and (c) of section 103 of the Stewart B. 
     McKinney Homeless Assistance Act (42 U.S.C. 11302);
       (E) is a foster child on behalf of whom State or local 
     government payments are made; or
       (F) in cases permitted by regulations of the Secretary of 
     Labor, is an individual with a disability whose own income 
     meets the requirements of a program described in subparagraph 
     (A) or of subparagraph (B), but who is a member of a family 
     whose income does not meet such requirements.
       (25) Lower living standard income level.--The term ``lower 
     living standard income level'' means that income level 
     (adjusted for regional, metropolitan, urban, and rural 
     differences and family size) determined annually by the 
     Secretary of Labor based on the most recent lower living 
     family budget issued by the Secretary of Labor.
       (26) Nontraditional employment.--In titles I and III, the 
     term ``nontraditional employment'' refers to occupations or 
     fields of work for which individuals from one gender comprise 
     less than 25 percent of the individuals employed in each such 
     occupation or field of work.
       (27) On-the-job training.--The term ``on-the-job training'' 
     means training in the public or private sector that is 
     provided to a paid participant while engaged in productive 
     work in a job that--
       (A) provides knowledge or skills essential to the full and 
     adequate performance of the job;
       (B) provides reimbursement to employers of up to 50 percent 
     of the wage rate of the participant, for the extraordinary 
     costs of providing the training and additional supervision 
     related to the training; and
       (C) is limited in duration as appropriate to the occupation 
     for which the participant is being trained.
       (28) Out-of-school youth.--The term ``out-of-school youth'' 
     means--
       (A) a youth who is a school dropout; or
       (B) a youth who has received a secondary school diploma or 
     its equivalent but is basic literacy skills deficient, 
     unemployed, or underemployed.

[[Page S3966]]

       (29) Outlying area.--The term ``outlying area'' means the 
     United States Virgin Islands, Guam, American Samoa, the 
     Commonwealth of the Northern Mariana Islands, the Republic of 
     the Marshall Islands, the Federated States of Micronesia, and 
     the Republic of Palau.
       (30) Participant.--The term ``participant'', used with 
     respect to an activity carried out under title III, means an 
     individual participating in the activity.
       (31) Postsecondary educational institution.--The term 
     ``postsecondary educational institution'' means--
       (A) an institution of higher education that provides not 
     less than a 2-year program of instruction that is acceptable 
     for credit toward a bachelor's degree;
       (B) a tribally controlled community college; or
       (C) a nonprofit educational institution offering 
     certificate or apprenticeship programs at the postsecondary 
     level.
       (32) Poverty line.--The term ``poverty line'' means the 
     poverty line (as defined by the Office of Management and 
     Budget, and revised annually in accordance with section 
     673(2) of the Community Services Block Grant Act (42 U.S.C. 
     9902(2))) applicable to a family of the size involved.
       (33) Public assistance.--In title III, the term ``public 
     assistance'' means Federal, State, or local government cash 
     payments for which eligibility is determined by a needs or 
     income test.
       (34) Rapid response activity.--In title III, the term 
     ``rapid response activity'' means an activity provided by a 
     State, or by an entity designated by a State, with funds 
     provided by the State under section 306(a)(2), in the case of 
     a permanent closure or mass layoff at a plant, facility, or 
     enterprise, or a natural or other disaster, that results in 
     mass job dislocation, in order to assist dislocated workers 
     in obtaining reemployment as soon as possible, with services 
     including--
       (A) the establishment of onsite contact with employers and 
     employee representatives--
       (i) immediately after the State is notified of a current or 
     projected permanent closure or mass layoff; or
       (ii) in the case of a disaster, immediately after the State 
     is made aware of mass job dislocation as a result of such 
     disaster;
       (B) the provision of information and access to available 
     employment and training activities;
       (C) assistance in establishing a labor-management 
     committee, voluntarily agreed to by labor and management, 
     with the ability to devise and implement a strategy for 
     assessing the employment and training needs of dislocated 
     workers and obtaining services to meet such 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.
       (35) School dropout.--The term ``school dropout'' means an 
     individual who is no longer attending any school and who has 
     not received a secondary school diploma or its recognized 
     equivalent.
       (36) Secondary school.--The term ``secondary school'' has 
     the meaning given the term in section 14101 of the Elementary 
     and Secondary Education Act of 1965 (20 U.S.C. 8801), except 
     that the term does not include education below grade 9.
       (37) Secretary.--
       (A) Titles i and ii.--In titles I and II, the term 
     ``Secretary'' means the Secretary of Education.
       (B) Title iii.--In title III, the term ``Secretary'' means 
     the Secretary of Labor.
       (38) State.--The term ``State'' means each of the several 
     States of the United States, the District of Columbia, and 
     the Commonwealth of Puerto Rico.
       (39) State educational agency.--The term ``State 
     educational agency'' means the State board of education or 
     other agency or officer primarily responsible for the State 
     supervision of public elementary or secondary schools, or, if 
     there is no such agency or officer, an agency or officer 
     designated by the Governor or by State law.
       (40) State performance measure.--In title III, the term 
     ``State performance measure'' means a performance measure 
     established under section 321(a).
       (41) Statewide partnership.--The term ``statewide 
     partnership'' means a partnership established under section 
     303.
       (42) Supportive services.--In title III, the term 
     ``supportive services'' means services such as 
     transportation, child care, dependent care, housing, and 
     needs-based payments, that are necessary to enable an 
     individual to participate in employment and training 
     activities or youth activities.
       (43) Tribally controlled community college.--The term 
     ``tribally controlled community college'' means an 
     institution that receives assistance under the Tribally 
     Controlled Community College Assistance Act of 1978 (25 
     U.S.C. 1801 et seq.) or the Navajo Community College Act (25 
     U.S.C. 640a et seq.).
       (44) Unit of general local government.--In title III, the 
     term ``unit of general local government'' means any general 
     purpose political subdivision of a State that has the power 
     to levy taxes and spend funds, as well as general corporate 
     and police powers.
       (45) Veteran; related definitions.--
       (A) Veteran.--The term ``veteran'' means an individual who 
     served in the active military, naval, or air service, and who 
     was discharged or released from such service under conditions 
     other than dishonorable.
       (B) Disabled veteran.--The term ``disabled veteran'' 
     means--
       (i) a veteran who is entitled to compensation under laws 
     administered by the Secretary of Veterans Affairs; or
       (ii) an individual who was discharged or released from 
     active duty because of service-connected disability.
       (C) Recently separated veteran.--The term ``recently 
     separated veteran'' means any veteran who applies for 
     participation under title III within 48 months of the 
     discharge or release from active military, naval, or air 
     service.
       (D) Vietnam era veteran.--The term ``Vietnam era veteran'' 
     means a veteran any part of whose active military, naval, or 
     air service occurred between August 5, 1964, and May 7, 1975.
       (46) Vocational education.--The term ``vocational 
     education'' means organized education that--
       (A) offers a sequence of courses that provides individuals 
     with the academic knowledge and skills the individuals need 
     to prepare for further education and for careers in current 
     or emerging employment sectors; and
       (B) includes competency-based applied learning that 
     contributes to the academic knowledge, higher-order reasoning 
     and problem-solving skills, work attitudes, general 
     employability skills, and occupation-specific skills, of an 
     individual.
       (47) Vocational rehabilitation program.--The term 
     ``vocational rehabilitation program'' means a program 
     assisted under title I of the Rehabilitation Act of 1973 (29 
     U.S.C. 720 et seq.).
       (48) Workforce investment activity.--The term ``workforce 
     investment activity'' means an employment and training 
     activity, a youth activity, and an activity described in 
     section 314.
       (49) Youth.--In paragraph (50) and title III (other than 
     subtitles B and C of such title), the term ``youth'' means an 
     individual who--
       (A) is not less than age 14 and not more than age 21;
       (B) is a low-income individual; and
       (C) an individual who is 1 or more of the following:
       (i) Deficient in basic literacy skills.
       (ii) A school dropout.
       (iii) Homeless, a runaway, or a foster child.
       (iv) Pregnant or a parent.
       (v) An offender.
       (vi) An individual who requires additional assistance to 
     complete an educational program, or to secure and hold 
     employment.
       (50) Youth activity.--The term ``youth activity'' means an 
     activity described in section 316, carried out for youth.
       (51) Youth partnership.--The term ``youth partnership'' 
     means a partnership established under section 308(i).
      TITLE I--VOCATIONAL, TECHNOLOGICAL, AND TECH-PREP EDUCATION

     SEC. 101. SHORT TITLE.

       This title may be cited as the ``Carl D. Perkins Vocational 
     and Applied Technology Education Act of 1997''.

     SEC. 102. FINDINGS AND PURPOSE.

       (a) Findings.--Congress finds that--
       (1) in order to be successful workers, citizens, and 
     learners in the 21st century, individuals will need--
       (A) a combination of strong basic and advanced academic 
     skills;
       (B) computer and other technical skills;
       (C) theoretical knowledge;
       (D) communications, problem-solving, teamwork, and 
     employability skills; and
       (E) the ability to acquire additional knowledge and skills 
     throughout a lifetime;
       (2) students participating in vocational education can 
     achieve challenging academic and technical skills, and may 
     learn better and retain more, when the students learn in 
     context, learn by doing, and have an opportunity to learn and 
     understand how academic, vocational, and technological skills 
     are used outside the classroom;
       (3)(A) many high school graduates in the United States do 
     not complete a rigorous course of study that prepares the 
     graduates for completing a 2-year or 4-year college degree or 
     for entering high-skill, high-wage careers;
       (B) adult students are an increasingly diverse group and 
     often enter postsecondary education unprepared for academic 
     and technical work; and
       (C) certain individuals often face great challenges in 
     acquiring the knowledge and skills needed for successful 
     employment;
       (4) community colleges, technical colleges, and area 
     vocational education schools are offering adults a gateway to 
     higher education, and access to quality certificates and 
     degrees that increase their skills and earnings, by--
       (A) ensuring that the academic, vocational, and 
     technological skills gained by students adequately prepare 
     the students for the workforce; and
       (B) enhancing connections with employers and 4-year 
     institutions of higher education;
       (5) local, State, and national programs supported under the 
     Carl D. Perkins Vocational and Applied Technology Education 
     Act (20 U.S.C. 2301 et seq.) (as such Act was in effect on 
     the day before the date of enactment of this Act) have 
     assisted many students in obtaining technical, academic, and 
     employability skills, and tech-prep education;
       (6) the Federal Government can assist States and localities 
     by carrying out nationally significant research, program 
     development, demonstration, dissemination, evaluation, data 
     collection, professional development, and technical 
     assistance activities that support State and local efforts 
     regarding vocational education; and
       (7) through a performance partnership with States and 
     localities based on clear programmatic goals, increased State 
     and local flexibility, improved accountability, and 
     performance measures, the Federal Government will provide to 
     States and localities financial assistance for the 
     improvement and expansion of vocational education for 
     students participating in vocational education.
       (b) Purpose.--The purpose of this title is to make the 
     United States more competitive in the

[[Page S3967]]

     world economy by developing more fully the academic, 
     vocational, and employability skills of secondary students 
     and postsecondary students who elect to enroll in vocational 
     education programs, by--
       (1) building on the efforts of States and localities to 
     develop challenging academic standards;
       (2) promoting the development of services and activities 
     that integrate academic, vocational, and technological 
     instruction, and that link secondary and postsecondary 
     education for participating vocational education students;
       (3) increasing State and local flexibility in providing 
     services and activities designed to develop, implement, and 
     improve vocational education, including tech-prep education; 
     and
       (4) disseminating national research, and providing 
     professional development and technical assistance, that will 
     improve vocational education programs, services, and 
     activities.

     SEC. 103. VOLUNTARY SELECTION AND PARTICIPATION.

       No funds made available under this title shall be used--
       (1) to require any secondary school student to choose or 
     pursue a specific career path or major; and
       (2) to mandate that any individual participate in a 
     vocational education program under this title.
                    Subtitle A--Vocational Education

                     CHAPTER 1--FEDERAL PROVISIONS

     SEC. 111. RESERVATIONS AND STATE ALLOTMENT.

       (a) Reservations and State Allotment.--
       (1) Reservations.--From the sum appropriated under section 
     171 for each fiscal year, the Secretary shall reserve--
       (A) 0.2 percent to carry out section 113;
       (B) 1.75 percent to carry out sections 114 and 115, of 
     which--
       (i) 1.25 percent of the sum shall be available to carry out 
     section 114(b);
       (ii) 0.25 percent of the sum shall be available to carry 
     out section 114(c); and
       (iii) 0.25 percent of the sum shall be available to carry 
     out section 115; and
       (C) 1.3 percent of the sum shall be used to carry out 
     sections 116, 163, 164, 165, and 166, of which not less than 
     0.65 percent of the sum shall be available to carry out 
     section 116.
       (2) State allotment formula.--Subject to paragraphs (3) and 
     (4), from the remainder of the sums appropriated under 
     section 171 and not reserved under paragraph (1) for a fiscal 
     year, the Secretary shall allot to a State for the fiscal 
     year--
       (A) an amount that bears the same ratio to 50 percent of 
     the sums being allotted as the product of the population aged 
     15 to 19 inclusive, in the State in the fiscal year preceding 
     the fiscal year for which the determination is made and the 
     State's allotment ratio bears to the sum of the corresponding 
     products for all the States;
       (B) an amount that bears the same ratio to 20 percent of 
     the sums being allotted as the product of the population aged 
     20 to 24, inclusive, in the State in the fiscal year 
     preceding the fiscal year for which the determination is made 
     and the State's allotment ratio bears to the sum of the 
     corresponding products for all the States;
       (C) an amount that bears the same ratio to 15 percent of 
     the sums being allotted as the product of the population aged 
     25 to 65, inclusive, in the State in the fiscal year 
     preceding the fiscal year for which the determination is made 
     and the State's allotment ratio bears to the sum of the 
     corresponding products for all the States; and
       (D) an amount that bears the same ratio to 15 percent of 
     the sums being allotted as the amounts allotted to the State 
     under subparagraphs (A), (B), and (C) for such years bears to 
     the sum of the amounts allotted to all the States under 
     subparagraphs (A), (B), and (C) for such year.
       (3) Minimum allotment.--
       (A) In general.--Notwithstanding any other provision of law 
     and subject to subparagraphs (B) and (C), and paragraph (4), 
     no State shall receive for a fiscal year under this 
     subsection less than \1/2\ of 1 percent of the amount 
     appropriated under section 171 and not reserved under 
     paragraph (1) for such 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.
       (B) Requirement.--Due to the application of subparagraph 
     (A), for any fiscal year, no State shall receive more than 
     150 percent of the amount the State received under this 
     subsection for the preceding fiscal year (or in the case of 
     fiscal year 1999 only, under section 101 of the Carl D. 
     Perkins Vocational and Applied Technology Education Act, as 
     such section was in effect on the day before the date of 
     enactment of this Act).
       (C) Special rule.--
       (i) In general.--Subject to paragraph (4), no State, by 
     reason of subparagraph (A), shall be allotted for a fiscal 
     year more than the lesser of--

       (I) 150 percent of the amount that the State received in 
     the preceding fiscal year (or in the case of fiscal year 1999 
     only, under section 101 of the Carl D. Perkins Vocational and 
     Applied Technology Education Act, as such section was in 
     effect on the day before the date of enactment of this Act); 
     and

       (II) the amount calculated under clause (ii).

       (ii) Amount.--The amount calculated under this clause shall 
     be determined by multiplying--

       (I) the number of individuals in the State counted under 
     paragraph (2) in the preceding fiscal year; by
       (II) 150 percent of the national average per pupil payment 
     made with funds available under this section for that year 
     (or in the case of fiscal year 1999, only, under section 101 
     of the Carl D. Perkins Vocational and Applied Technology 
     Education Act, as such section was in effect on the day 
     before the date of enactment of this Act).

       (4) Hold harmless.--
       (A) In general.--No State shall receive an allotment under 
     this section for a fiscal year that is less than the 
     allotment the State received under part A of title I of the 
     Carl D. Perkins Vocational and Applied Technology Education 
     Act (20 U.S.C. 2311 et seq.) (as such part was in effect on 
     the day before the date of enactment of this Act) for fiscal 
     year 1997.
       (B) Ratable reduction.--If for any fiscal year the amount 
     appropriated for allotments under this section is 
     insufficient to satisfy the provisions of subparagraph (A), 
     the payments to all States under such subparagraph shall be 
     ratably reduced.
       (b) Reallotment.--If the Secretary determines that any 
     amount of any State's allotment under subsection (a) for any 
     fiscal year will not be required for such fiscal year for 
     carrying out the activities for which such amount has been 
     allotted, the Secretary shall make such amount available for 
     reallotment. Any such reallotment among other States shall 
     occur on such dates during the same year as the Secretary 
     shall fix, and shall be made on the basis of criteria 
     established by regulation. No funds may be reallotted for any 
     use other than the use for which the funds were appropriated. 
     Any amount reallotted to a State under this subsection for 
     any fiscal year shall remain available for obligation during 
     the succeeding fiscal year and shall be deemed to be part of 
     the State's allotment for the year in which the amount is 
     obligated.
       (c) Allotment Ratio.--
       (1) In general.--The allotment ratio for any State shall be 
     1.00 less the product of--
       (A) 0.50; and
       (B) the quotient obtained by dividing the per capita income 
     for the State by the per capita income for all the States 
     (exclusive of the Commonwealth of Puerto Rico), except that--
       (i) the allotment ratio in no case shall be more than 0.60 
     or less than 0.40; and
       (ii) the allotment ratio for the Commonwealth of Puerto 
     Rico shall be 0.60.
       (2) Promulgation.--The allotment ratios shall be 
     promulgated by the Secretary for each fiscal year between 
     October 1 and December 31 of the fiscal year preceding the 
     fiscal year for which the determination is made. Allotment 
     ratios shall be computed on the basis of the average of the 
     appropriate per capita incomes for the 3 most recent 
     consecutive fiscal years for which satisfactory data are 
     available.
       (3) Definition of per capita income.--For the purpose of 
     this section, the term ``per capita income'' means, with 
     respect to a fiscal year, the total personal income in the 
     calendar year ending in such year, divided by the population 
     of the area concerned in such year.
       (4) Population determination.--For the purposes of this 
     section, population shall be determined by the Secretary on 
     the basis of the latest estimates available to the Department 
     of Education.

     SEC. 112. PERFORMANCE MEASURES AND EXPECTED LEVELS OF 
                   PERFORMANCE.

       (a) Establishment of Performance Measures.--After 
     consultation with eligible agencies, local educational 
     agencies, eligible institutions, and other interested parties 
     (including representatives of business and representatives of 
     labor organizations), the Secretary shall establish and 
     publish performance measures described in this subsection to 
     assess the progress of each eligible agency in achieving the 
     following:
       (1) Student mastery of academic skills.
       (2) Student mastery of job readiness skills.
       (3) Student mastery of vocational skill proficiencies for 
     students in vocational education programs, that are necessary 
     for the receipt of a secondary school diploma or its 
     recognized equivalent, or a secondary school skill 
     certificate.
       (4) Receipt of a postsecondary degree or certificate.
       (5) Placement in, retention in, and completion of, 
     secondary school education (as determined under State law) 
     and postsecondary education, and placement and retention 
     in employment and in military service, including for the 
     populations described in section 124(c)(16).
       (6) Participation in and completion of nontraditional 
     vocational education programs.
       (7) Other performance measures as determined by the 
     Secretary.
       (b) Expected Levels of Performance.--In developing a State 
     plan, each eligible agency shall negotiate with the Secretary 
     the expected levels of performance for the performance 
     measures described in subsection (a).

     SEC. 113. ASSISTANCE FOR THE OUTLYING AREAS.

       (a) In General.--From the funds reserved under section 
     111(a)(1)(A), the Secretary--
       (1) shall award a grant in the amount of $500,000 to Guam 
     for vocational education and training for the purpose of 
     providing direct educational services related to vocational 
     education, including--
       (A) teacher and counselor training and retraining;
       (B) curriculum development; and
       (C) improving vocational education programs in secondary 
     schools and institutions of higher education, or improving 
     cooperative education programs involving both secondary 
     schools and institutions of higher education;
       (2) shall award a grant in the amount of $600,000 to the 
     United States Virgin Islands for vocational education for the 
     purpose described in paragraph (1); and
       (3) shall award a grant in the amount of $190,000 to each 
     of American Samoa and the Commonwealth of the Northern 
     Mariana Islands for vocational education for the purpose 
     described in paragraph (1).
       (b) Special Rule.--
       (1) In general.--From funds reserved under section 
     111(a)(1)(A) and not awarded under subsection (a), the 
     Secretary shall make available

[[Page S3968]]

     the amount awarded to the Republic of the Marshall Islands, 
     the Federated States of Micronesia, and the Republic of Palau 
     under section 101A of the Carl D. Perkins Vocational and 
     Applied Technology Education Act (as such section was in 
     effect on the day before the date of enactment of this Act) 
     to award grants under the succeeding sentence. From the 
     amount made available under the preceding sentence, the 
     Secretary shall award grants, to Guam, American Samoa, the 
     Commonwealth of the Northern Mariana Islands, the Republic of 
     the Marshall Islands, the Federated States of Micronesia, or 
     the Republic of Palau for the purpose described in subsection 
     (a)(1).
       (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 title for any fiscal 
     year that begins after September 30, 2004.
       (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.

     SEC. 114. INDIAN AND HAWAIIAN NATIVE PROGRAMS.

       (a) Definitions; Authority of Secretary.--
       (1) Definitions.--For the purpose of this section--
       (A) the term ``Act of April 16, 1934'' means the Act 
     entitled ``An Act authorizing the Secretary of the Interior 
     to arrange with States or territories for the education, 
     medical attention, relief of distress, and social welfare of 
     Indians, and for other purposes'', enacted April 16, 1934 (48 
     Stat. 596; 25 U.S.C. 452 et seq.);
       (B) the term ``Bureau funded school'' has the meaning given 
     the term in section 1146 of the Education Amendments of 1978 
     (25 U.S.C. 2026); and
       (C) the term ``Hawaiian native'' means any individual any 
     of whose ancestors were natives, prior to 1778, of the area 
     which now comprises the State of Hawaii.
       (2) Authority.--From the funds reserved pursuant to section 
     111(a)(1)(B), the Secretary shall award grants and enter into 
     contracts for Indian and Hawaiian native programs in 
     accordance with this section, except that such programs shall 
     not include secondary school programs in Bureau funded 
     schools.
       (b) Indian Programs.--
       (1) Authority.--
       (A) In general.--Except as provided in subparagraph (B), 
     from the funds reserved pursuant to section 111(a)(1)(B)(i), 
     the Secretary is directed--
       (i) upon the request of any Indian tribe, or a tribal 
     organization serving an Indian tribe, which is eligible to 
     contract with the Secretary of the Interior for the 
     administration of programs under the Indian Self-
     Determination Act (25 U.S.C. 450 et seq.) or under the Act of 
     April 16, 1934; or
       (ii) upon an application received from a Bureau funded 
     school offering postsecondary or adult education programs 
     filed at such time and under such conditions as the Secretary 
     may prescribe,

     to make grants to or enter into contracts with any Indian 
     tribe or tribal organization, or to make a grant to such 
     Bureau funded school, as appropriate, to plan, conduct, and 
     administer programs or portions of programs authorized by, 
     and consistent with the purpose of, this title.
       (B) Requirements.--The grants or contracts described in 
     subparagraph (A), shall be subject to the following:
       (i) Tribal organizations.--Such grants or contracts with 
     any tribal organization shall be subject to the terms and 
     conditions of section 102 of the Indian Self-Determination 
     Act (25 U.S.C. 450f) and shall be conducted in accordance 
     with the provisions of sections 4, 5, and 6 of the Act of 
     April 16, 1934, which are relevant to the programs 
     administered under this subsection.
       (ii) Bureau funded schools.--Such grants to Bureau funded 
     schools shall not be subject to the requirements of the 
     Indian Self-Determination Act (25 U.S.C. 450f et seq.) or the 
     Act of April 16, 1934.
       (C) Application.--Any Indian tribe, tribal organization, or 
     Bureau funded school eligible to receive assistance under 
     this paragraph may apply individually or as part of a 
     consortium with another such Indian tribe, tribal 
     organization, or Bureau funded school.
       (D) Performance measures and evaluation.--Any Indian tribe, 
     tribal organization, or Bureau funded school that receives 
     assistance under this section shall--
       (i) establish performance measures and expected level of 
     performance to be achieved by students served under this 
     section; and
       (ii) evaluate the quality and effectiveness of activities 
     and services provided under this subsection.
       (E) Minimum.--In the case of a Bureau funded school, the 
     minimum amount of a grant awarded or contract entered into 
     under this section shall be $35,000.
       (F) Restrictions.--The Secretary may not place upon grants 
     awarded or contracts entered into under this paragraph any 
     restrictions relating to programs other than restrictions 
     that apply to grants made to or contracts entered into with 
     States pursuant to allotments under section 111(a). The 
     Secretary, in awarding grants and entering into contracts 
     under this paragraph, shall ensure that the grants and 
     contracts will improve vocational education programs, and 
     shall give special consideration to--
       (i) grants or contracts which involve, coordinate with, or 
     encourage tribal economic development plans; and
       (ii) applications from tribally controlled community 
     colleges that--

       (I) are accredited or are candidates for accreditation by a 
     nationally recognized accreditation organization as an 
     institution of postsecondary vocational education; or
       (II) operate vocational education programs that are 
     accredited or are candidates for accreditation by a 
     nationally recognized accreditation organization, and issue 
     certificates for completion of vocational education programs.

       (G) Stipends.--
       (i) In general.--Funds received pursuant to grants or 
     contracts described in subparagraph (A) may be used to 
     provide stipends to students who are enrolled in vocational 
     education programs and who have acute economic needs which 
     cannot be met through work-study programs.
       (ii) Amount.--Stipends described in clause (i) shall not 
     exceed reasonable amounts as prescribed by the Secretary.
       (2) Matching.--If sufficient funding is available, the 
     Bureau of Indian Affairs shall expend an amount equal to the 
     amount made available under this subsection, relating to 
     programs for Indians, to pay a part of the costs of programs 
     funded under this subsection. During each fiscal year the 
     Bureau of Indian Affairs shall expend no less than the amount 
     expended during the prior fiscal year on vocational education 
     programs, services, and activities administered either 
     directly by, or under contract with, the Bureau of Indian 
     Affairs, except that in no year shall funding for such 
     programs, services, and activities be provided from accounts 
     and programs that support other Indian education programs. 
     The Secretary and the Assistant Secretary of the Interior for 
     Indian Affairs shall prepare jointly a plan for the 
     expenditure of funds made available and for the evaluation of 
     programs assisted under this subsection. Upon the completion 
     of a joint plan for the expenditure of the funds and the 
     evaluation of the programs, the Secretary shall assume 
     responsibility for the administration of the program, with 
     the assistance and consultation of the Bureau of Indian 
     Affairs.
       (3) Special rule.--Programs funded under this subsection 
     shall be in addition to such other programs, services, and 
     activities as are made available to eligible Indians under 
     other provisions of this Act.
       (c) Hawaiian Native Programs.--From the funds reserved 
     pursuant to section 111(a)(1)(B)(ii), the Secretary is 
     directed, to award grants or enter into contracts with 
     organizations primarily serving and representing Hawaiian 
     natives which are recognized by the Governor of the State of 
     Hawaii to plan, conduct, and administer programs, or portions 
     thereof, which are authorized by and consistent with the 
     purpose of this title, for the benefit of Hawaiian natives.

     SEC. 115. TRIBALLY CONTROLLED POSTSECONDARY VOCATIONAL 
                   INSTITUTIONS.

       (a) In General.--It is the purpose of this section to 
     provide grants for the operation and improvement of tribally 
     controlled postsecondary vocational institutions to ensure 
     continued and expanded educational opportunities for Indian 
     students, and to allow for the improvement and expansion of 
     the physical resources of such institutions.
       (b) Grants Authorized.--From the funds reserved pursuant to 
     section 111(a)(1)(B)(iii), the Secretary shall make grants to 
     tribally controlled postsecondary vocational institutions to 
     provide basic support for the vocational education and 
     training of Indian students.
       (c) Eligible Grant Recipients.--To be eligible for 
     assistance under this section a tribally controlled 
     postsecondary vocational institution shall--
       (1) be governed by a board of directors or trustees, a 
     majority of whom are Indians;
       (2) demonstrate adherence to stated goals, a philosophy, or 
     a plan of operation which fosters individual Indian economic 
     and self-sufficiency opportunity, including programs that are 
     appropriate to stated tribal goals of developing individual 
     entrepreneurships and self-sustaining economic 
     infrastructures on reservations;
       (3) have been in operation for at least 3 years;
       (4) hold accreditation with or be a candidate for 
     accreditation by a nationally recognized accrediting 
     authority for postsecondary vocational education; and
       (5) enroll the full-time equivalency of not less than 100 
     students, of whom a majority are Indians.
       (d) Grant Requirements.--
       (1) Applications.--Any tribally controlled postsecondary 
     vocational institution that desires to receive a grant under 
     this section shall submit an application to the Secretary. 
     Such application shall include a description of recordkeeping 
     procedures for the expenditure of funds received under this 
     section that will allow the Secretary to audit and monitor 
     programs.
       (2) Number.--The Secretary shall award not less than 2 
     grants under this section for each fiscal year.
       (3) Consultation.--In awarding grants under this section, 
     the Secretary shall, to the extent practicable, consult with 
     the boards of trustees of, and the tribal governments 
     chartering, the institutions desiring the grants.
       (4) Limitation.--Amounts made available through grants 
     under this section shall not be used in connection with 
     religious worship or sectarian instruction.
       (e) Uses of Grants.--
       (1) In general.--The Secretary shall, subject to the 
     availability of appropriations, provide for each program year 
     to each tribally controlled vocational institution having an 
     application approved by the Secretary, an amount necessary to 
     pay expenses associated with--
       (A) the maintenance and operation of the program, including 
     development costs, costs of basic

[[Page S3969]]

     and special instruction (including special programs for 
     individuals with disabilities and academic instruction), 
     materials, student costs, administrative expenses, boarding 
     costs, transportation, student services, daycare and family 
     support programs for students and their families (including 
     contributions to the costs of education for dependents), and 
     student stipends;
       (B) capital expenditures, including operations and 
     maintenance, and minor improvements and repair, and physical 
     plant maintenance costs, for the conduct of programs funded 
     under this section; and
       (C) costs associated with repair, upkeep, replacement, and 
     upgrading of the instructional equipment.
       (2) Accounting.--Each institution receiving a grant under 
     this section shall provide annually to the Secretary an 
     accurate and detailed accounting of the institution's 
     operating and maintenance expenses and such other information 
     concerning costs as the Secretary may reasonably require.
       (f) Effect on Other Programs.--
       (1) In general.--Except as specifically provided in this 
     Act, eligibility for assistance under this section shall not 
     preclude any tribally controlled postsecondary vocational 
     institution from receiving Federal financial assistance under 
     any program authorized under the Higher Education Act of 1965 
     (20 U.S.C. 1001 et seq.) or any other applicable program for 
     the benefit of institutions of higher education or vocational 
     education.
       (2) Prohibition on alteration of grant amount.--The amount 
     of any grant for which tribally controlled postsecondary 
     vocational institutions are eligible under this section shall 
     not be altered because of funds allocated to any such 
     institution from funds appropriated under the Act of November 
     2, 1921 (commonly known as the ``Snyder Act'') (42 Stat. 208, 
     chapter 115; 25 U.S.C. 13).
       (3) Prohibition on contract denial.--No tribally controlled 
     postsecondary vocational institution for which an Indian 
     tribe has designated a portion of the funds appropriated for 
     the tribe from funds appropriated under such Act of November 
     2, 1921, may be denied a contract for such portion under the 
     Indian Self-Determination and Education Assistance Act (25 
     U.S.C. 450b et seq.) (except as provided in that Act), or 
     denied appropriate contract support to administer such 
     portion of the appropriated funds.
       (g) Needs Estimate and Report on Facilities and Facilities 
     Improvement.--
       (1) Needs estimate.--The Secretary shall, based on the most 
     accurate data available from the institutions and Indian 
     tribes whose Indian students are served under this section, 
     and in consideration of employment needs, economic 
     development needs, population training needs, and facilities 
     needs, prepare an actual budget needs estimate for each 
     institution eligible under this section for each subsequent 
     program year, and submit such budget needs estimate to 
     Congress in such a timely manner as will enable the 
     appropriate committees of Congress to consider such needs 
     data for purposes of the uninterrupted flow of adequate 
     appropriations to such institutions. Such data shall take 
     into account the goals and requirements of the Personal 
     Responsibility and Work Opportunity Reconciliation Act of 
     1996 (Public Law 104-193; 110 Stat. 2105).
       (2) Study of training and housing needs.--
       (A) In general.--The Secretary shall conduct a detailed 
     study of the training, housing, and immediate facilities 
     needs of each institution eligible under this section. The 
     study shall include an examination of--
       (i) training equipment needs;
       (ii) housing needs of families whose heads of households 
     are students and whose dependents have no alternate source of 
     support while such heads of households are students; and
       (iii) immediate facilities needs.
       (B) Report.--The Secretary shall report to Congress not 
     later than July 1, 1999, on the results of the study required 
     by subparagraph (A).
       (C) Contents.--The report required by subparagraph (B) 
     shall include the number, type, and cost of meeting the needs 
     described in subparagraph (A), and rank each institution by 
     relative need.
       (D) Priority.--In conducting the study required by 
     subparagraph (A), the Secretary shall give priority to 
     institutions that are receiving assistance under this 
     section.
       (3) Long-term study of facilities.--
       (A) In general.--The Secretary shall provide for the 
     conduct of a long-term study of the facilities of each 
     institution eligible for assistance under this section.
       (B) Contents.--The study required by subparagraph (A) shall 
     include a 5-year projection of training facilities, 
     equipment, and housing needs and shall consider such factors 
     as projected service population, employment, and economic 
     development forecasting, based on the most current and 
     accurate data available from the institutions and Indian 
     tribes affected.
       (B) Submission.--The Secretary shall submit to Congress a 
     detailed report on the results of such study not later than 
     the end of the 18-month period beginning on the date of 
     enactment of this Act.
       (h) Definitions.--For the purposes of this section:
       (1) Indian; indian tribe.--The terms ``Indian'' and 
     ``Indian tribe'' have the meaning given such terms in section 
     2 of the Tribally Controlled Community College Assistance Act 
     of 1978 (25 U.S.C. 1801).
       (2) Tribally controlled postsecondary vocational 
     institution.--The term ``tribally controlled postsecondary 
     vocational institution'' means an institution of higher 
     education that--
       (A) is formally controlled, or has been formally sanctioned 
     or chartered by the governing body of an Indian tribe or 
     tribes; and
       (B) offers technical degrees or certificate granting 
     programs.

     SEC. 116. INCENTIVE GRANTS.

       (a) In General.--The Secretary may make grants to States 
     that exceed--
       (1) the State performance measures established by the 
     Secretary of Education under this Act; and
       (2) the State performance measures established under title 
     III.
       (b) Priority.--In awarding incentive grants under this 
     section, the Secretary shall give priority to those States 
     submitting a State unified plan as described in section 501 
     that is approved by the appropriate Secretaries as described 
     in such section.
       (c) Use of Funds.--A State that receives an incentive grant 
     under this section shall use the funds made available through 
     the grant to carry out innovative programs as determined by 
     the State.

                      CHAPTER 2--STATE PROVISIONS

     SEC. 121. STATE ADMINISTRATION.

       Each eligible agency shall be responsible for the State 
     administration of activities under this subtitle, including--
       (1) the development, submission, and implementation of the 
     State plan;
       (2) the efficient and effective performance of the eligible 
     agency's duties under this subtitle; and
       (3) consultation with other appropriate agencies, groups, 
     and individuals that are involved in the development and 
     implementation of activities assisted under this subtitle, 
     such as employers, parents, students, teachers, labor 
     organizations, State and local elected officials, and local 
     program administrators.

     SEC. 122. STATE USE OF FUNDS.

       (a) Reservations.--From funds allotted to each State under 
     section 111(a) for each fiscal year, the eligible agency 
     shall reserve--
       (1) not more than 14 percent of the funds to carry out 
     section 123;
       (2) not more than 10 percent of the funds, or $300,000, 
     whichever is greater, of which--
       (A) $60,000 shall be available to provide technical 
     assistance and advice to local educational agencies, 
     postsecondary educational institutions, and other interested 
     parties in the State for gender equity activities; and
       (B) the remainder may be used to--
       (i) develop the State plan;
       (ii) review local applications;
       (iii) monitor and evaluate program effectiveness;
       (iv) provide technical assistance; and
       (v) assure compliance with all applicable Federal laws, 
     including required services and activities for individuals 
     who are members of populations described in section 
     124(c)(16); and
       (3) 1 percent of the funds, or the amount the State 
     expended under the Carl D. Perkins Vocational and Applied 
     Technology Education Act (20 U.S.C. 2301 et seq.) for 
     vocational education programs for criminal offenders for the 
     fiscal year 1997, whichever is greater, to carry out programs 
     for criminal offenders.
       (b) Remainder.--From funds allotted to each State under 
     section 111(a) for each fiscal year and not reserved under 
     subsection (a), the eligible agency shall determine the 
     portion of the funds that will be available to carry out 
     sections 131 and 132.
       (c) Matching Requirement.--Each eligible agency receiving 
     funds under this subtitle shall match, from non-Federal 
     sources and on a dollar-for-dollar basis, the funds received 
     under subsection (a)(2).

     SEC. 123. STATE LEADERSHIP ACTIVITIES.

       (a) Mandatory.--Each eligible agency shall use the funds 
     reserved under section 122(a)(1) to conduct programs, 
     services, and activities that further the development, 
     implementation, and improvement of vocational education 
     within the State and that are integrated, to the maximum 
     extent possible, with challenging State academic standards, 
     including--
       (1) providing comprehensive professional development 
     (including initial teacher preparation) for vocational, 
     academic, guidance, and administrative personnel, that--
       (A) will help the teachers and personnel to meet the 
     expected levels of performance established under section 112;
       (B) reflects the eligible agency's assessment of the 
     eligible agency's needs for professional development; and
       (C) is integrated with the professional development 
     activities that the State carries out under title II of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6001 et seq.);
       (2) developing and disseminating curricula that are 
     aligned, as appropriate, with challenging State academic 
     standards, and vocational and technological skills;
       (3) monitoring and evaluating the quality of, and 
     improvement in, activities conducted with assistance under 
     this subtitle;
       (4) promoting gender equity in secondary and postsecondary 
     vocational education;
       (5) supporting tech-prep education activities;
       (6) improving and expanding the use of technology in 
     instruction;
       (7) supporting partnerships among local educational 
     agencies, institutions of higher education, adult education 
     providers, and, as appropriate, other entities, such as 
     employers, labor organizations, parents, and local 
     partnerships, to enable students to achieve to challenging 
     State academic standards, and vocational and technological 
     skills; and
       (8) serving individuals in State institutions, such as 
     State correctional institutions and institutions that serve 
     individuals with disabilities.
       (b) Permissive.--Each eligible agency may use the funds 
     reserved under section 122(a)(1) for--
       (1) improving guidance and counseling programs that assist 
     students in making informed education and vocational 
     decisions;

[[Page S3970]]

       (2) supporting vocational student organizations, especially 
     with respect to efforts to increase the participation of 
     students who are members of populations described in section 
     124(c)(16);
       (3) providing vocational education programs for adults and 
     school dropouts to complete their secondary school education; 
     and
       (4) providing assistance to students who have participated 
     in services and activities under this subtitle in finding an 
     appropriate job and continuing their education.

     SEC. 124. STATE PLAN.

       (a) State Plan.--
       (1) In general.--Each eligible entity desiring assistance 
     under this subtitle for any fiscal year shall prepare and 
     submit to the Secretary a State plan for a 3-year period, 
     together with such annual revisions as the eligible agency 
     determines to be necessary.
       (2) Coordination.--The period required by paragraph (1) 
     shall be coordinated with the period covered by the State 
     plan described in section 304.
       (3) Hearing process.--The eligible agency shall conduct 
     public hearings in the State, after appropriate and 
     sufficient notice, for the purpose of affording all segments 
     of the public and interested organizations and groups 
     (including employers, labor organizations, and parents), an 
     opportunity to present their views and make recommendations 
     regarding the State plan. A summary of such 
     recommendations and the eligible agency's response to such 
     recommendations shall be included with the State plan.
       (b) Development of Plan.--The eligible agency shall develop 
     the State plan with representatives of secondary and 
     postsecondary vocational education, and business, in the 
     State and shall also consult the Governor of the State.
       (c) Contents of the Plan.--The State plan shall include 
     information that--
       (1) describes the vocational education activities to be 
     assisted that are designed to meet and reach the State 
     performance measures;
       (2) describes the integration of academic education with 
     vocational education, and with technological education 
     related to vocational education;
       (3) describes how the eligible agency will disaggregate 
     data relating to students participating in vocational 
     education in order to adequately measure the progress of the 
     students;
       (4) describes how the eligible agency will adequately 
     address the needs of students in alternative education 
     programs;
       (5) describes how the eligible agency will provide local 
     educational agencies, area vocational education schools, and 
     eligible institutions in the State with technical assistance;
       (6) describes how the eligible agency will encourage the 
     participation of the parents of secondary school students who 
     are involved in vocational education activities;
       (7) identifies how the eligible agency will obtain the 
     active participation of business, labor organizations, and 
     parents in the development and improvement of vocational 
     education activities carried out by the eligible agency;
       (8) describes how vocational education is aligned with 
     State and regional employment opportunities;
       (9) describes the methods proposed for the joint planning 
     and coordination of programs carried out under this subtitle 
     with other Federal education programs;
       (10) describes how funds will be used to promote gender 
     equity in secondary and postsecondary vocational education;
       (11) describes how funds will be used to improve and expand 
     the use of technology in instruction;
       (12) describes how funds will be used to serve individuals 
     in State correctional institutions;
       (13) describes how funds will be used effectively to link 
     secondary and postsecondary education;
       (14) describes how funds will be allocated and used at the 
     secondary and postsecondary level, any consortia that will be 
     formed among secondary schools and eligible institutions, and 
     how funds will be allocated among the members of the 
     consortia;
       (15) describes how the eligible agency will ensure that the 
     data reported to the eligible agency from local educational 
     agencies and eligible institutions under this subtitle and 
     the data the eligible agency reports to the Secretary are 
     complete, accurate, and reliable;
       (16) describes how the eligible agency will develop program 
     strategies for populations that include, at a minimum--
       (A) low-income individuals, including foster children;
       (B) individuals with disabilities;
       (C) single parents and displaced homemakers; and
       (D) individuals with multiple barriers to educational 
     enhancement; and
       (17) contains the description and information specified in 
     paragraphs (8) and (16) of section 304(b) concerning the 
     provision of services only for postsecondary students and 
     school dropouts.
       (d) Plan Approval.--
       (1) In general.--The Secretary shall approve a State plan, 
     or a revision to an approved State plan, only if the 
     Secretary determines that--
       (A) the State plan, or revision, respectively, meets the 
     requirements of this section; and
       (B) the State's performance measures and expected levels of 
     performance under section 112 are sufficiently rigorous to 
     meet the purpose of this title.
       (2) Disapproval.--The Secretary shall not finally 
     disapprove a State plan, except after giving the eligible 
     agency notice and an opportunity for a hearing.
       (3) Peer review.--The Secretary shall establish a peer 
     review process to make recommendations regarding approval of 
     State plans and revisions to State plans.
       (4) Timeframe.--A State plan shall be deemed approved if 
     the Secretary has not responded to the eligible agency 
     regarding the plan within 90 days of the date the Secretary 
     receives the plan.
       (e) Eligible Agency Report.--
       (1) In general.--The eligible agency shall annually report 
     to the Secretary regarding--
       (A) the quality and effectiveness of the programs, 
     services, and activities, assisted under this subtitle, based 
     on the performance measures and expected levels of 
     performance described in section 112; and
       (B) the progress each population of individuals described 
     in section 124(c)(16) is making toward achieving the expected 
     levels of performance.
       (2) Contents.--The eligible agency report also--
       (A) shall include such information, in such form, as the 
     Secretary may reasonably require, in order to ensure the 
     collection of uniform data; and
       (B) shall be made available to the public.

                      CHAPTER 3--LOCAL PROVISIONS

     SEC. 131. DISTRIBUTION FOR SECONDARY SCHOOL VOCATIONAL 
                   EDUCATION.

       (a) Allocation.--Except as otherwise provided in this 
     section, each eligible agency shall distribute the portion of 
     the funds made available for secondary school vocational 
     education activities under section 122(b) for any fiscal year 
     to local educational agencies within the State as follows:
       (1) Seventy percent.--From 70 percent of such portion, each 
     local educational agency shall be allocated an amount that 
     bears the same relationship to such 70 percent as the amount 
     such local educational agency was allocated under section 
     1124 of the Elementary and Secondary Education Act of 1965 
     (20 U.S.C. 6333) for the preceding fiscal year bears to the 
     total amount received under such section by all local 
     educational agencies in the State for such year.
       (2) Twenty percent.--From 20 percent of such portion, each 
     local educational agency shall be allocated an amount that 
     bears the same relationship to such 20 percent as the number 
     of students with disabilities who have individualized 
     education programs under section 614(d) of the Individuals 
     With Disabilities Education Act (20 U.S.C. 1414(d)) served by 
     such local educational agency for the preceding fiscal year 
     bears to the total number of such students served by all 
     local educational agencies in the State for such year.
       (3) Ten percent.--From 10 percent of such portion, each 
     local educational agency shall be allocated an amount that 
     bears the same relationship to such 10 percent as the number 
     of students enrolled in schools and adults enrolled in 
     training programs under the jurisdiction of such local 
     educational agency for the preceding fiscal year bears to the 
     number of students enrolled in schools and adults enrolled in 
     training programs under the jurisdiction of all local 
     educational agencies in the State for such year.
       (b) Minimum Allocation.--
       (1) In general.--Except as provided in paragraph (2), no 
     local educational agency shall receive an allocation under 
     subsection (a) unless the amount allocated to such agency 
     under subsection (a) is not less than $25,000. A local 
     educational agency may enter into a consortium with other 
     local educational agencies for purposes of meeting the 
     minimum allocation requirement of this paragraph.
       (2) Waiver.--The eligible agency may waive the application 
     of paragraph (1) in any case in which the local educational 
     agency--
       (A) is located in a rural, sparsely populated area; and
       (B) demonstrates that such agency is unable to enter into a 
     consortium for purposes of providing services under this 
     section.
       (3) Reallocation.--Any amounts that are not allocated by 
     reason of paragraph (1) or (2) shall be reallocated to local 
     educational agencies that meet the requirements of paragraph 
     (1) or (2) in accordance with the provisions of this section.
       (c) Limited Jurisdiction Agencies.--
       (1) In general.--In applying the provisions of subsection 
     (a), no eligible agency receiving assistance under this 
     subtitle shall allocate funds to a local educational agency 
     that serves only elementary schools, but shall distribute 
     such funds to the local educational agency or regional 
     educational agency that provides secondary school services to 
     secondary school students in the same attendance area.
       (2) Special rule.--The amount to be allocated under 
     paragraph (1) to a local educational agency that has 
     jurisdiction only over secondary schools shall be determined 
     based on the number of students that entered such secondary 
     schools in the previous year from the elementary schools 
     involved.
       (d) Allocations to Area Vocational Education Schools and 
     Educational Service Agencies.--
       (1) In general.--Each eligible agency shall distribute the 
     portion of funds made available for any fiscal year by such 
     entity for secondary school vocational education activities 
     under section 122(b) to the appropriate area vocational 
     education school or educational service agency in any case in 
     which--
       (A) the area vocational education school or educational 
     service agency, and the local educational agency concerned--
       (i) have formed or will form a consortium for the purpose 
     of receiving funds under this section; or
       (ii) have entered into or will enter into a cooperative 
     arrangement for such purpose; and
       (B)(i) the area vocational education school or educational 
     service agency serves an approximately equal or greater 
     proportion of students who are individuals with disabilities 
     or are low-income than the proportion of such students 
     attending the secondary schools under the jurisdiction of all 
     of the local educational agencies

[[Page S3971]]

     sending students to the area vocational education school or 
     the educational service agency; or
       (ii) the area vocational education school, educational 
     service agency, or local educational agency demonstrates that 
     the vocational education school or educational service agency 
     is unable to meet the criterion described in clause (i) due 
     to the lack of interest by students described in clause (i) 
     in attending vocational education programs in that area 
     vocational education school or educational service agency.
       (2) Allocation basis.--If an area vocational education 
     school or educational service agency meets the requirements 
     of paragraph (1), then--
       (A) the amount that will otherwise be distributed to the 
     local educational agency under this section shall be 
     allocated to the area vocational education school, the 
     educational service agency, and the local educational agency, 
     based on each school's or agency's relative share of students 
     described in paragraph (1)(B)(i) who are attending vocational 
     education programs (based, if practicable, on the average 
     enrollment for the prior 3 years); or
       (B) such amount may be allocated on the basis of an 
     agreement between the local educational agency and the area 
     vocational education school or educational service agency.
       (3) State determination.--
       (A) In general.--For the purposes of this subsection, the 
     eligible agency may determine the number of students who are 
     low-income on the basis of--
       (i) eligibility for--

       (I) free or reduced-price meals under the National School 
     Lunch Act (7 U.S.C. 1751 et seq.);
       (II) assistance under a State program funded under part A 
     of title IV of the Social Security Act;
       (III) benefits under the Food Stamp Act of 1977 (7 U.S.C. 
     2011 et seq.); or
       (IV) services under title I of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 6301 et seq.); and

       (ii) another index of economic status, including an 
     estimate of such index, if the eligible agency demonstrates 
     to the satisfaction of the Secretary that such index is a 
     more representative means of determining such number.
       (B) Data.--If an eligible agency elects to use more than 1 
     factor described in subparagraph (A) for purposes of making 
     the determination described in such subparagraph, the 
     eligible agency shall ensure that the data used is not 
     duplicative.
       (4) Appeals procedure.--The eligible agency shall establish 
     an appeals procedure for resolution of any dispute arising 
     between a local educational agency and an area vocational 
     education school or an educational service agency with 
     respect to the allocation procedures described in this 
     section, including the decision of a local educational agency 
     to leave a consortium.
       (5) Special rule.--Notwithstanding the provisions of 
     paragraphs (1), (2), (3), and (4), any local educational 
     agency receiving an allocation that is not sufficient to 
     conduct a secondary school vocational education program of 
     sufficient size, scope, and quality to be effective may--
       (A) form a consortium or enter into a cooperative agreement 
     with an area vocational education school or educational 
     service agency offering secondary school vocational education 
     programs of sufficient size, scope, and quality to be 
     effective and that are accessible to students who are 
     individuals with disabilities or are low-income, and are 
     served by such local educational agency; and
       (B) transfer such allocation to the area vocational 
     education school or educational service agency.
       (e) Special Rule.--Each eligible agency distributing funds 
     under this section shall treat a secondary school funded by 
     the Bureau of Indian Affairs within the State as if such 
     school were a local educational agency within the State for 
     the purpose of receiving a distribution under this section.

     SEC. 132. DISTRIBUTION FOR POSTSECONDARY VOCATIONAL 
                   EDUCATION.

       (a) Distribution.--
       (1) In general.--Except as otherwise provided in this 
     section, each eligible agency shall distribute the portion of 
     funds made available for postsecondary vocational education 
     under section 122(b) for any fiscal year to eligible 
     institutions within the State in accordance with paragraph 
     (2).
       (2) Allocation.--Each eligible institution in the State 
     having an application approved under section 134 for a fiscal 
     year shall be allocated an amount that bears the same 
     relationship to the amount of funds made available for 
     postsecondary vocational education under section 122(b) for 
     the fiscal year as the number of Pell Grant recipients and 
     recipients of assistance from the Bureau of Indian Affairs 
     enrolled for the preceding fiscal year by such eligible 
     institution in vocational education programs that do not 
     exceed 2 years in duration bears to the number of such 
     recipients enrolled in such programs within the State for 
     such fiscal year.
       (3) Minimum allocation.--
       (A) In general.--Except as provided in subparagraph (B), no 
     eligible institution shall receive an allocation under 
     paragraph (2) unless the amount allocated to the eligible 
     institution under paragraph (2) is not less than $65,000.
       (B) Waiver.--The eligible agency may waive the application 
     of subparagraph (A) in any case in which the eligible 
     institution is located in a rural, sparsely populated area.
       (C) Reallocation.--Any amounts that are not allocated by 
     reason of subparagraph (A) or (B) shall be reallocated to 
     eligible institutions that meet the requirements of 
     subparagraph (A) or (B) in accordance with the provisions of 
     this section.
       (4) Definition of pell grant recipient.--The term ``Pell 
     Grant recipient'' means a recipient of financial aid under 
     subpart 1 of part A of title IV of the Higher Education Act 
     of 1965 (20 U.S.C. 1070a).
       (b) Alternative Allocation.--An eligible agency may 
     allocate funds made available for postsecondary education 
     under section 122(b) for a fiscal year using an alternative 
     formula if the eligible agency demonstrates to the 
     Secretary's satisfaction that--
       (1) the alternative formula better meets the purpose of 
     this title; and
       (2)(A) the formula described in subsection (a) does not 
     result in an allocation of funds to the eligible institutions 
     that serve the highest numbers or percentages of low-income 
     students; and
       (B) the alternative formula will result in such a 
     distribution.

     SEC. 133. LOCAL ACTIVITIES.

       (a) Mandatory.--Funds made available to a local educational 
     agency or an eligible institution under this subtitle shall 
     be used--
       (1) to conduct vocational education programs, and 
     technological education programs related to vocational 
     education, that further student achievement;
       (2) to provide services and activities that are of 
     sufficient size, scope, and quality to be effective;
       (3) to integrate academic education with vocational 
     education for students participating in vocational education;
       (4) to link secondary education (as determined under State 
     law) and postsecondary education, including implementing 
     tech-prep programs;
       (5) to provide professional development activities to 
     teachers, counselors, and administrators, including--
       (A) inservice and preservice training in state-of-the-art 
     vocational education programs;
       (B) internship programs that provide business experience to 
     teachers; and
       (C) programs designed to train teachers specifically in the 
     use and application of technology;
       (6) to improve or expand the use of technology in 
     vocational instruction, including professional development in 
     the use of technology, which may include distance learning;
       (7) to expand, improve, and modernize quality vocational 
     education programs;
       (8) to provide access to quality vocational education 
     programs for students, including students who are members of 
     the populations described in section 124(c)(16);
       (9) to develop and implement performance management systems 
     and evaluations; and
       (10) to promote gender equity in secondary and 
     postsecondary vocational education.
       (b) Permissive.--Funds made available to a local 
     educational agency or an eligible institution under this 
     subtitle may be used--
       (1) to carry out student internships;
       (2) to provide guidance and counseling for students 
     participating in vocational education programs;
       (3) to provide vocational education programs for adults and 
     school dropouts to complete their secondary school education;
       (4) to acquire and adapt equipment, including instructional 
     aids;
       (5) to support vocational student organizations;
       (6) to provide assistance to students who have participated 
     in services and activities under this subtitle in finding an 
     appropriate job and continuing their education; and
       (7) to support other activities that are consistent with 
     the purpose of this title.

     SEC. 134. LOCAL APPLICATION.

       (a) In General.--Each local educational agency or eligible 
     institution desiring assistance under this subtitle shall 
     submit an application to the eligible agency at such time, in 
     such manner, and accompanied by such information as the 
     eligible agency (in consultation with such other educational 
     entities as the eligible agency determines to be appropriate) 
     may require.
       (b) Contents.--Each application shall, at a minimum--
       (1) describe how the vocational education activities will 
     be carried out pertaining to meeting the expected levels of 
     performance;
       (2) describe the process that will be used to independently 
     evaluate and continuously improve the performance of the 
     local educational agency or eligible institution, as 
     appropriate; and
       (3) describe how the local educational agency or eligible 
     institution, as appropriate, will consult with students, 
     parents, business, labor organizations, and other interested 
     individuals, in carrying out activities under this subtitle.
                    Subtitle B--Tech-Prep Education

     SEC. 151. SHORT TITLE.

       This subtitle may be cited as the ``Tech-Prep Education 
     Act''.

     SEC. 152. PURPOSES.

       The purposes of this subtitle are--
       (1) to provide implementation grants to consortia of local 
     educational agencies, postsecondary educational institutions, 
     and employers or labor organizations, for the development and 
     operation of programs designed to provide a tech-prep 
     education program leading to a 2-year associate degree or a 
     2-year certificate;
       (2) to provide, in a systematic manner, strong, 
     comprehensive links among secondary schools, postsecondary 
     educational institutions, and local or regional employers, or 
     labor organizations; and
       (3) to support the use of contextual, authentic, and 
     applied teaching and curriculum based on each State's 
     academic, occupational, and employability standards.

     SEC. 153. DEFINITIONS.

       (a) In this subtitle:
       (1) Articulation agreement.--The term ``articulation 
     agreement'' means a written commitment to a program designed 
     to provide students with a non duplicative sequence of 
     progressive

[[Page S3972]]

     achievement leading to degrees or certificates in a tech-prep 
     education program.
       (2) Community college.--The term ``community college''--
       (A) has the meaning provided in section 1201(a) of the 
     Higher Education Act of 1965 (20 U.S.C. 1141) for an 
     institution which provides not less than a 2-year program 
     which is acceptable for full credit toward a bachelor's 
     degree; and
       (B) includes tribally controlled community colleges.
       (3) Tech-prep program.--The term ``tech-prep program'' 
     means a program of study that--
       (A) combines at a minimum 2 years of secondary education 
     (as determined under State law) and a minimum 2 years of 
     postsecondary education in a nonduplicative, sequential 
     course of study;
       (B) integrates academic and vocational instruction, and 
     utilizes work-based and worksite learning where appropriate 
     and available;
       (C) provides technical preparation in a career field such 
     as engineering technology, applied science, a mechanical, 
     industrial, or practical art or trade, agriculture, health 
     occupations, business, or applied economics;
       (D) builds student competence in mathematics, science, 
     communications, economics, and workplace skills, through 
     applied, contextual academics, and integrated instruction in 
     a coherent sequence of courses;
       (E) leads to an associate or a baccalaureate degree or a 
     certificate in a specific career field; and
       (F) leads to placement in appropriate employment or further 
     education.

     SEC. 154. PROGRAM AUTHORIZED.

       (a) Discretionary Amounts.--
       (1) In general.--For any fiscal year for which the amount 
     appropriated under section 157 to carry out this subtitle is 
     equal to or less than $50,000,000, the Secretary shall award 
     grants for tech-prep education programs to consortia of--
       (A) local educational agencies, intermediate educational 
     agencies or area vocational education schools serving 
     secondary school students, or secondary schools funded by the 
     Bureau of Indian Affairs;
       (B)(i) nonprofit institutions of higher education that 
     offer--
       (I) a 2-year associate degree program, or a 2-year 
     certificate program, and are qualified as institutions of 
     higher education pursuant to section 481(a) of the Higher 
     Education Act of 1965 (20 U.S.C. 1088(a)), including 
     institutions receiving assistance under the Tribally 
     Controlled Community College Assistance Act of 1978 (25 
     U.S.C. 1801 et seq.) and tribally controlled postsecondary 
     vocational institutions; or
       (II) a 2-year apprenticeship program that follows secondary 
     instruction,
     if such nonprofit institutions of higher education are not 
     prohibited from receiving assistance under part B of the 
     Higher Education Act of 1965 (20 U.S.C. 1071 et seq.) 
     pursuant to the provisions of section 435(a)(3) of such Act 
     (20 U.S.C. 1083(a)); or
       (ii) proprietary institutions of higher education which 
     offer a 2-year associate degree program and which are 
     qualified as institutions of higher education pursuant to 
     section 481(a) of the Higher Education Act of 1965 (20 
     U.S.C. 1088(a)) if such proprietary institutions of higher 
     education are not subject to a default management plan 
     required by the Secretary; or
       (C) employers or labor organizations.
       (2) Special rule.--A consortium described in paragraph (1) 
     may include 1 or more institutions of higher education that 
     award baccalaureate degrees.
       (b) State Grants.--
       (1) In general.--For any fiscal year for which the amount 
     made available under section 157 to carry out this subtitle 
     exceeds $50,000,000, the Secretary shall allot such amount 
     among the States in the same manner as funds are allotted to 
     States under paragraphs (2), (3), and (4) of section 111(a).
       (2) Payments to eligible agencies.--The Secretary shall 
     make a payment in the amount of a State's allotment under 
     this paragraph to the eligible agency that serves the State 
     and has an application approved under paragraph (4).
       (3) Award basis.--From amounts made available to each 
     eligible agency under this subsection, the eligible agency 
     shall award grants, on a competitive basis or on the basis of 
     a formula determined by the eligible agency, for tech-prep 
     education programs to consortia described in subsection (a).
       (4) State application.--Each eligible agency desiring 
     assistance under this subtitle shall submit an application to 
     the Secretary at such time, in such manner, and accompanied 
     by such information as the Secretary may require.

     SEC. 155. TECH-PREP EDUCATION PROGRAMS.

       (a) General Authority.--Each consortium shall use amounts 
     provided through the grant to develop and operate a tech-prep 
     education program.
       (b) Contents of Program.--Any such tech-prep program 
     shall--
       (1) be carried out under an articulation agreement between 
     the participants in the consortium;
       (2) consist of at least 2 years of secondary school 
     preceding graduation and 2 years or more of higher education, 
     or an apprenticeship program of at least 2 years following 
     secondary instruction, with a common core of required 
     proficiency in mathematics, science, communications, and 
     technologies designed to lead to an associate or 
     baccalaureate degree or a certificate in a specific career 
     field;
       (3) include the development of tech-prep education program 
     curricula for both secondary and postsecondary levels that--
       (A) meets challenging academic standards developed by the 
     State;
       (B) links secondary schools and 2-year postsecondary 
     institutions, and where possible and practicable, 4-year 
     institutions of higher education through nonduplicative 
     sequences of courses in career fields;
       (C) uses, where appropriate and available, work-based or 
     worksite learning in conjunction with business and industry; 
     and
       (D) uses educational technology and distance learning, as 
     appropriate, to involve all the consortium partners more 
     fully in the development and operation of programs.
       (4) include a professional development program for 
     academic, vocational, and technical teachers that--
       (A) is designed to train teachers to effectively implement 
     tech-prep education curricula;
       (B) provides for joint training for teachers from all 
     participants in the consortium;
       (C) is designed to ensure that teachers stay current with 
     the needs, expectations, and methods of business and 
     industry;
       (D) focuses on training postsecondary education faculty in 
     the use of contextual and applied curricula and instruction; 
     and
       (E) provides training in the use and application of 
     technology;
       (5) include training programs for counselors designed to 
     enable counselors to more effectively--
       (A) make tech-prep education opportunities known to 
     students interested in such activities;
       (B) ensure that such students successfully complete such 
     programs;
       (C) ensure that such students are placed in appropriate 
     employment; and
       (D) stay current with the needs, expectations, and methods 
     of business and industry;
       (6) provide equal access to the full range of technical 
     preparation programs to individuals who are members of 
     populations described in section 124(c)(16), including the 
     development of tech-prep education program services 
     appropriate to the needs of such individuals; and
       (7) provide for preparatory services that assist all 
     participants in such programs.
       (c) Additional Authorized Activities.--Each such tech-prep 
     program may--
       (1) provide for the acquisition of tech-prep education 
     program equipment;
       (2) as part of the program's planning activities, acquire 
     technical assistance from State or local entities that have 
     successfully designed, established and operated tech-prep 
     programs;
       (3) acquire technical assistance from State or local 
     entities that have designed, established, and operated tech-
     prep programs that have effectively used educational 
     technology and distance learning in the delivery of curricula 
     and services and in the articulation process; and
       (4) establish articulation agreements with institutions of 
     higher education, labor organizations, or businesses located 
     outside of the State served by the consortium, especially 
     with regard to using distance learning and educational 
     technology to provide for the delivery of services and 
     programs.

     SEC. 156. APPLICATIONS.

       (a) In General.--Each consortium that desires to receive a 
     grant under this subtitle shall submit an application to the 
     Secretary or the eligible agency, as appropriate, at such 
     time and in such manner as the Secretary or the eligible 
     agency, as appropriate, shall prescribe.
       (b) Three-Year Plan.--Each application submitted under this 
     section shall contain a 3-year plan for the development and 
     implementation of activities under this subtitle.
       (c) Approval.--The Secretary or the eligible agency, as 
     appropriate, shall approve applications based on the 
     potential of the activities described in the application to 
     create an effective tech-prep education program described in 
     section 155.
       (d) Special Consideration.--The Secretary or the eligible 
     agency, as appropriate, shall give special consideration to 
     applications that--
       (1) provide for effective employment placement activities 
     or the transfer of students to 4-year institutions of higher 
     education;
       (2) are developed in consultation with 4-year institutions 
     of higher education;
       (3) address effectively the needs of populations described 
     in section 124(c)(16);
       (4) provide education and training in areas or skills where 
     there are significant workforce shortages, including the 
     information technology industry; and
       (5) demonstrate how tech-prep programs will help students 
     meet high academic and employability competencies.
       (e) Equitable Distribution of Assistance.--In awarding 
     grants under this subtitle, the Secretary shall ensure an 
     equitable distribution of assistance among States, and the 
     Secretary or the eligible agency, as appropriate, shall 
     ensure an equitable distribution of assistance between urban 
     and rural consortium participants.
       (f) Notice.--
       (1) In general.--In the case of grants to be awarded by the 
     Secretary, each consortium that submits an application under 
     this section shall provide notice of such submission and a 
     copy of such application to the State educational agency and 
     the State agency for higher education of the State in which 
     the consortium is located.
       (2) Notification.--The Secretary shall notify the State 
     educational agency and the State agency for higher education 
     of a State each time a consortium located in the State is 
     selected to receive a grant under this subtitle.

     SEC. 157. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated to carry out this 
     subtitle such sums as may be necessary for fiscal year 1999 
     and each of the 5 succeeding fiscal years.
                     Subtitle C--General Provisions

     SEC. 161. ADMINISTRATIVE PROVISIONS.

       (a) Supplement Not Supplant.--Funds made available under 
     this title for vocational education activities shall 
     supplement, and shall not

[[Page S3973]]

     supplant, other public funds expended to carry out vocational 
     education and tech-prep activities.
       (b) Maintenance of Effort.--
       (1) Determination.--No payments shall be made under this 
     title for any fiscal year to an eligible agency for 
     vocational education or tech-prep activities unless the 
     Secretary determines that the fiscal effort per student or 
     the aggregate expenditures of the State for vocational 
     education for the fiscal year preceding the fiscal year for 
     which the determination is made, equaled or exceeded such 
     effort or expenditures for vocational education for the 
     second fiscal year preceding the fiscal year for which the 
     determination is made.
       (2) Waiver.--The Secretary may waive the requirements of 
     this section, with respect to not more than 5 percent of 
     expenditures by any eligible agency for 1 fiscal year only, 
     on making a determination that such waiver would be equitable 
     due to exceptional or uncontrollable circumstances 
     affecting the ability of the applicant to meet such 
     requirements, such as a natural disaster or an unforeseen 
     and precipitous decline in financial resources. No level 
     of funding permitted under such a waiver may be used as 
     the basis for computing the fiscal effort or aggregate 
     expenditures required under this section for years 
     subsequent to the year covered by such waiver. The fiscal 
     effort or aggregate expenditures for the subsequent years 
     shall be computed on the basis of the level of funding 
     that would, but for such waiver, have been required.
       (c) Representation.--The eligible agency shall provide 
     representation to the statewide partnership.

     SEC. 162. EVALUATION, IMPROVEMENT, AND ACCOUNTABILITY.

       (a) Local Evaluation.--Each eligible agency shall evaluate 
     annually the vocational education and tech-prep activities of 
     each local educational agency or eligible institution 
     receiving assistance under this title, using the performance 
     measures established under section 112.
       (b) Improvement Activities.--If, after reviewing the 
     evaluation, an eligible agency determines that a local 
     educational agency or eligible institution is not making 
     substantial progress in achieving the purpose of this title, 
     the eligible agency may work jointly with the local 
     educational agency or eligible institution, respectively, to 
     develop an improvement plan. If, after not more than 2 years 
     of implementation of the improvement plan, the eligible 
     agency determines that the local educational agency or 
     eligible institution, respectively, is not making substantial 
     progress, the eligible agency shall take whatever corrective 
     action the eligible agency deems necessary, which may include 
     termination of funding or the implementation of alternative 
     service arrangements, consistent with State law. The eligible 
     agency shall take corrective action under the preceding 
     sentence only after the eligible agency has provided 
     technical assistance to the local educational agency or 
     eligible institution and shall ensure, to the extent 
     practicable, that any corrective action the eligible agency 
     takes allows for continued services to and activities for 
     individuals served by the local educational agency or 
     eligible institution, respectively.
       (c) Technical Assistance.--If the Secretary determines that 
     an eligible agency is not properly implementing the eligible 
     agency's responsibilities under section 124, or is not making 
     substantial progress in meeting the purpose of this title, 
     based on the performance measures and expected levels of 
     performance under section 112 included in the eligible 
     agency's State plan, the Secretary shall work with the 
     eligible agency to implement improvement activities.
       (d) Withholding of Federal Funds.--If, after a reasonable 
     time, but not earlier than 1 year after implementing 
     activities described in subsection (c), the Secretary 
     determines that the eligible agency is not making sufficient 
     progress, based on the eligible agency's performance measures 
     and expected levels of performance, the Secretary, after 
     notice and opportunity for a hearing, shall withhold from the 
     eligible agency all, or a portion, of the eligible agency's 
     grant funds under this subtitle. The Secretary may use funds 
     withheld under the preceding sentence to provide, through 
     alternative arrangements, services, and activities within the 
     State to meet the purpose of this title.

     SEC. 163. NATIONAL ACTIVITIES.

       The Secretary may, directly or through grants, contracts, 
     or cooperative agreements, carry out research, development, 
     dissemination, evaluation, capacity-building, and technical 
     assistance activities that carry out the purpose of this 
     title.

     SEC. 164. NATIONAL ASSESSMENT OF VOCATIONAL EDUCATION 
                   PROGRAMS.

       (a) In General.--The Secretary shall conduct a national 
     assessment of vocational education programs assisted under 
     this title, through studies and analyses conducted 
     independently through competitive awards.
       (b) Independent Advisory Panel.--The Secretary shall 
     appoint an independent advisory panel, consisting of 
     vocational education administrators, educators, researchers, 
     and representatives of labor organizations, business, 
     parents, guidance and counseling professionals, and other 
     relevant groups, to advise the Secretary on the 
     implementation of such assessment, including the issues to be 
     addressed and the methodology of the studies involved, and 
     the findings and recommendations resulting from the 
     assessment. The panel shall submit to the Committee on 
     Education and the Workforce of the House of Representatives, 
     the Committee on Labor and Human Resources of the Senate, and 
     the Secretary an independent analysis of the findings and 
     recommendations resulting from the assessment. The Federal 
     Advisory Committee Act (5 U.S.C. App.) shall not apply to the 
     panel established under this subsection.
       (c) Contents.--The assessment required under subsection (a) 
     shall include descriptions and evaluations of--
       (1) the effect of the vocational education programs 
     assisted under this title on State and tribal administration 
     of vocational education programs and on local vocational 
     education practices, including the capacity of State, tribal, 
     and local vocational education systems to address the 
     purpose of this title;
       (2) expenditures at the Federal, State, tribal, and local 
     levels to address program improvement in vocational 
     education, including the impact of Federal allocation 
     requirements (such as within-State distribution formulas) on 
     the delivery of services;
       (3) preparation and qualifications of teachers of 
     vocational and academic curricula in vocational education 
     programs, as well as shortages of such teachers;
       (4) participation in vocational education programs;
       (5) academic and employment outcomes of vocational 
     education, including analyses of--
       (A) the extent and success of integration of academic and 
     vocational curricula; and
       (B) the degree to which vocational education is relevant to 
     subsequent employment or participation in postsecondary 
     education;
       (6) employer involvement in, and satisfaction with, 
     vocational education programs; and
       (7) the effect of performance measures, and other measures 
     of accountability, on the delivery of vocational education 
     services.
       (d) Consultation.--
       (1) In general.--The Secretary shall consult with the 
     Committee on Education and the Workforce of the House of 
     Representatives and the Committee on Labor and Human 
     Resources of the Senate in the design and implementation of 
     the assessment required under subsection (a).
       (2) Reports.--The Secretary shall submit to the Committee 
     on Education and the Workforce of the House of 
     Representatives, the Committee on Labor and Human Resources 
     of the Senate, and the Secretary--
       (A) an interim report regarding the assessment on or before 
     July 1, 2001; and
       (B) a final report, summarizing all studies and analyses 
     that relate to the assessment and that are completed after 
     the assessment, on or before July 1, 2002.
       (3) Prohibition.--Notwithstanding any other provision of 
     law or regulation, the reports required by this subsection 
     shall not be subject to any review outside of the Department 
     of Education before their transmittal to the Committee on 
     Education and the Workforce of the House of Representatives, 
     the Committee on Labor and Human Resources of the Senate, and 
     the Secretary, but the President, the Secretary, and the 
     independent advisory panel established under subsection (b) 
     may make such additional recommendations to Congress with 
     respect to the assessment as the President, the Secretary, or 
     the panel determine to be appropriate.

     SEC. 165. NATIONAL RESEARCH CENTER.

       (a) General Authority.--
       (1) In general.--The Secretary, through grants, contracts, 
     or cooperative agreements, may establish 1 or more national 
     centers in the areas of--
       (A) applied research and development; and
       (B) dissemination and training.
       (2) Consultation.--The Secretary shall consult with the 
     States prior to establishing 1 or more such centers.
       (3) Eligible entities.--Entities eligible to receive funds 
     under this section are institutions of higher education, 
     other public or private nonprofit organizations or agencies, 
     and consortia of such institutions, organizations, or 
     agencies.
       (b) Activities.--
       (1) In general.--The national center or centers shall carry 
     out such activities as the Secretary determines to be 
     appropriate to assist State and local recipients of funds 
     under this title to achieve the purpose of this title, which 
     may include the research and evaluation activities in such 
     areas as--
       (A) the integration of vocational and academic instruction, 
     secondary and postsecondary instruction;
       (B) effective inservice and preservice teacher education 
     that assists vocational education systems;
       (C) performance measures and expected levels of performance 
     that serve to improve vocational education programs and 
     student achievement;
       (D) effects of economic changes on the kinds of knowledge 
     and skills required for employment or participation in 
     postsecondary education;
       (E) longitudinal studies of student achievement; and
       (F) dissemination and training activities related to the 
     applied research and demonstration activities described in 
     this subsection, which may also include--
       (i) serving as a repository for information on vocational 
     and technological skills, State academic standards, and 
     related materials; and
       (ii) developing and maintaining national networks of 
     educators who facilitate the development of vocational 
     education systems.
       (2) Report.--The center or centers conducting the 
     activities described in paragraph (1) annually shall prepare 
     a report of key research findings of such center or centers 
     and shall submit copies of the report to the Secretary, the 
     Secretary of Labor, and the Secretary of Health and Human 
     Services. The Secretary shall submit that report to the 
     Committee on Education and the Workforce of the House of 
     Representatives, the Committee on Labor and Human Resources 
     of the Senate, the Library of Congress, and each eligible 
     agency.
       (c) Review.--The Secretary shall--
       (1) consult at least annually with the national center or 
     centers and with experts in education to ensure that the 
     activities of the national center or centers meet the needs 
     of vocational education programs; and

[[Page S3974]]

       (2) undertake an independent review of each award recipient 
     under this section prior to extending an award to such 
     recipient beyond a 5-year period.

     SEC. 166. DATA SYSTEMS.

       (a) In General.--The Secretary shall maintain a data system 
     to collect information about, and report on, the condition of 
     vocational education and on the effectiveness of State and 
     local programs, services, and activities carried out under 
     this title in order to provide the Secretary and Congress, as 
     well as Federal, State, local, and tribal agencies, with 
     information relevant to improvement in the quality and 
     effectiveness of vocational education. The Secretary annually 
     shall report to Congress on the Secretary's analysis of 
     performance data collected each year pursuant to this title.
       (b) Data System.--In maintaining the data system, the 
     Secretary shall ensure that the data system is compatible 
     with other Federal information systems.
       (c) Assessments.--As a regular part of its assessments, the 
     National Center for Education Statistics shall collect and 
     report information on vocational education for a nationally 
     representative sample of students. Such assessment may 
     include international comparisons.
              Subtitle D--Authorization of Appropriations

     SEC. 171. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated to carry out 
     subtitle (A), and sections 163, 164, 165, and 166, such sums 
     as may be necessary for fiscal year 1999 and each of the 5 
     succeeding fiscal years.
                           Subtitle E--Repeal

     SEC. 181. REPEAL.

       (a) Repeal.--The Carl D. Perkins Vocational and Applied 
     Technology Education Act (20 U.S.C. 2301 et seq.) is 
     repealed.
       (b) References to Carl D. Perkins Vocational and Applied 
     Technology Education Act.--
       (1) Immigration and nationality act.--Section 245A(h)(4)(C) 
     of the Immigration and Nationality Act (8 U.S.C. 
     1255a(h)(4)(C)) is amended by striking ``Vocational Education 
     Act of 1963'' and inserting ``Carl D. Perkins Vocational and 
     Applied Technology Education Act of 1997''.
       (2) National defense authorization act.--Section 4461 of 
     the National Defense Authorization Act for Fiscal Year 1993 
     (10 U.S.C. 1143 note) is amended--
       (A) by striking paragraph (4); and
       (B) by redesignating paragraphs (5) and (6) as paragraphs 
     (4) and (5), respectively.
       (3) Elementary and secondary education act of 1965.--The 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6301 et seq.) is amended--
       (A) in section 1114(b)(2)(C)(v) (20 U.S.C. 
     6314(b)(2)(C)(v)), by striking ``Carl D. Perkins Vocational 
     and Applied Technology Education Act,'' and inserting ``Carl 
     D. Perkins Vocational and Applied Technology Education Act of 
     1997'';
       (B) in section 9115(b)(5) (20 U.S.C. 7815(b)(5)), by 
     striking ``Carl D. Perkins Vocational and Applied Technology 
     Education Act'' and inserting ``Carl D. Perkins Vocational 
     and Applied Technology Education Act of 1997'';
       (C) in section 14302(a)(2) (20 U.S.C. 8852(a)(2))--
       (i) by striking subparagraph (C); and
       (ii) by redesignating subparagraphs (D), (E), and (F) as 
     subparagraphs (C), (D), and (E), respectively; and
       (D) in the matter preceding subparagraph (A) of section 
     14307(a)(1) (20 U.S.C. 8857(a)(1)), by striking ``Carl D. 
     Perkins Vocational and Applied Technology Education Act'' and 
     inserting ``Carl D. Perkins Vocational and Applied Technology 
     Education Act of 1997''.
       (4) Equity in educational land-grant status act of 1994.--
     Section 533(c)(4)(A) of the Equity in Educational Land-Grant 
     Status Act of 1994 (7 U.S.C. 301 note) is amended by striking 
     ``(20 U.S.C. 2397h(3)'' and inserting ``, as such section was 
     in effect on the day preceding the date of enactment of the 
     Carl D. Perkins Vocational and Applied Technology Education 
     Act of 1997''.
       (5) Improving america's schools act of 1994.--Section 563 
     of the Improving America's Schools Act of 1994 (20 U.S.C. 
     6301 note) is amended by striking ``the date of enactment of 
     an Act reauthorizing the Carl D. Perkins Vocational and 
     Applied Technology Education Act (20 U.S.C. 2301 et seq.)'' 
     and inserting ``July 1, 1999''.
       (6) Internal revenue code of 1986.--Section 135(c)(3)(B) of 
     the Internal Revenue Code of 1986 (26 U.S.C. 135(c)(3)(B)) is 
     amended--
       (A) by striking ``subparagraph (C) or (D) of section 521(3) 
     of the Carl D. Perkins Vocational Education Act'' and 
     inserting ``subparagraph (C) or (D) of section 2(3) of the 
     Workforce Investment Partnership Act of 1997''; and
       (B) by striking ``any State (as defined in section 521(27) 
     of such Act)'' and inserting ``any State or outlying area (as 
     the terms `State' and `outlying area' are defined in section 
     2 of such Act)''.
       (7) Appalachian regional development act of 1965.--Section 
     214(c) of the Appalachian Regional Development Act of 1965 
     (40 U.S.C. App. 214(c)) (as amended by subsection (c)(5)) is 
     further amended by striking ``Carl D. Perkins Vocational 
     Education Act'' and inserting ``Carl D. Perkins Vocational 
     and Applied Technology Education Act of 1997''.
       (8) Vocational education amendments of 1968.--Section 104 
     of the Vocational Education Amendments of 1968 (82 Stat. 
     1091) is amended by striking ``section 3 of the Carl D. 
     Perkins Vocational Education Act'' and inserting ``the Carl 
     D. Perkins Vocational and Applied Technology Education Act of 
     1997''.
       (9) Older americans act of 1965.--The Older Americans Act 
     of 1965 (42 U.S.C. 3001 et seq.) is amended--
       (A) in section 502(b)(1)(N)(i) (42 U.S.C. 
     3056(b)(1)(N)(i)), by striking ``or the Carl D. Perkins 
     Vocational and Applied Technology Education Act (20 U.S.C. 
     2301 et seq.)''; and
       (B) in section 505(d)(2) (42 U.S.C. 3056c(d)(2))--
       (i) by striking ``employment and training programs'' and 
     inserting ``workforce investment activities''; and
       (ii) by striking ``the Carl D. Perkins Vocational and 
     Applied Technology Education Act (20 U.S.C. 2301 et seq.)'' 
     and inserting ``the Carl D. Perkins Vocational and Applied 
     Technology Education Act of 1997''.
                 TITLE II--ADULT EDUCATION AND LITERACY

     SEC. 201. SHORT TITLE.

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

     SEC. 202. FINDINGS AND PURPOSE.

       (a) Findings.--Congress finds that--
       (1) the National Adult Literacy Survey and other studies 
     have found that more than one-fifth of American adults 
     demonstrate very low literacy skills that make it difficult 
     for the adults to be economically self-sufficient, much less 
     enter high-skill, high-wage jobs;
       (2) data from the National Adult Literacy Survey show that 
     adults with very low levels of literacy are 10 times as 
     likely to be poor as adults with high levels of literacy; and
       (3) our Nation's well-being is dependent on the knowledge 
     and skills of all of our Nation's citizens.
       (b) Purpose.--It is the purpose of this title to create a 
     partnership among the Federal Government, States, and 
     localities to help provide for adult education and literacy 
     services so that adults who need such services, will, as 
     appropriate, be able to--
       (1) become literate and obtain the knowledge and skills 
     needed to compete in a global economy;
       (2) complete a secondary school education; and
       (3) have the education skills necessary to support the 
     educational development of their children.
           Subtitle A--Adult Education and Literacy Programs

                     CHAPTER 1--FEDERAL PROVISIONS

     SEC. 211. RESERVATION; GRANTS TO STATES; ALLOTMENTS.

       (a) Reservation of Funds for National Leadership 
     Activities.--From the amount appropriated for any fiscal year 
     under section 246, the Secretary shall reserve--
       (1) 1.5 percent to carry out section 213;
       (2) 2 percent to carry out section 243; and
       (3) 1.5 percent to carry out section 245.
       (b) Grants to States.--From the sum appropriated under 
     section 246 and not reserved under subsection (a) for a 
     fiscal year, the Secretary shall award a grant to each 
     eligible agency having a State plan approved under section 
     224 in an amount equal to the sum of the initial allotment 
     under subsection (c)(1) and the additional allotment under 
     subsection (c)(2) for the eligible agency for the fiscal year 
     to enable the eligible agency to carry out the activities 
     assisted under this subtitle.
       (c) Allotments.--
       (1) Initial allotments.--From the sum appropriated under 
     section 246 and not reserved under subsection (a) for a 
     fiscal year, the Secretary first shall allot to each eligible 
     agency having a State plan approved under section 224 the 
     following amounts:
       (A) $100,000 in the case of an eligible agency serving the 
     United States Virgin Islands, Guam, American Samoa, the 
     Commonwealth of the Northern Mariana Islands, the Republic of 
     the Marshall Islands, the Federated States of Micronesia, and 
     the Republic of Palau.
       (B) $250,000, in the case of any other eligible agency.
       (2) Additional allotments.--From the sum appropriated under 
     section 246, not reserved under subsection (a), and not 
     allotted under paragraph (1), for any fiscal year, the 
     Secretary shall allot to each eligible agency an amount that 
     bears the same relationship to such sum as the number of 
     qualifying adults in the State or outlying area served by the 
     eligible agency bears to the number of such adults in all 
     States and outlying areas.
       (d) Qualifying Adult.--For the purposes of this subsection, 
     the term ``qualifying adult'' means an adult who--
       (1) is at least 16 years of age;
       (2) is beyond the age of compulsory school attendance under 
     the law of the State or outlying area;
       (3) does not possess a secondary school diploma or its 
     recognized equivalent; and
       (4) is not enrolled in secondary school.
       (e) Special Rule.--
       (1) In general.--From amounts made available under 
     subsection (c) for the Republic of the Marshall Islands, the 
     Federated States of Micronesia, and the Republic of Palau, 
     the Secretary shall award grants to Guam, American Samoa, the 
     Commonwealth of the Northern Mariana Islands, the Republic of 
     the Marshall Islands, the Federated States of Micronesia, or 
     the Republic of Palau to carry out activities described in 
     this part in accordance with the provisions of this subtitle 
     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, 2004.

[[Page S3975]]

       (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.
       (f) Maintenance of Effort.--
       (1) In general.--An eligible agency may receive a grant 
     under this subtitle for any fiscal year only if the Secretary 
     finds that the amount expended by the State for adult 
     education and literacy, in the second fiscal year preceding 
     the fiscal year for which the determination is made, was not 
     less than 90 percent of the amount expended for adult 
     education and literacy in the third fiscal year preceding the 
     fiscal year for which the determination is made.
       (2) Waiver.--The Secretary may waive the requirements of 
     this subsection for 1 fiscal year only if the Secretary 
     determines that such a waiver is 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.
       (g) Reallotment.--If the Secretary determines that any 
     amount of a State's allotment under this section for any 
     fiscal year will not be required for carrying out the program 
     for which such amount has been allotted, the Secretary shall 
     make such amount available for reallotment to 1 or more 
     States on the basis that the Secretary determines would best 
     serve the purpose of this title.

     SEC. 212. PERFORMANCE MEASURES AND EXPECTED LEVELS OF 
                   PERFORMANCE.

       (a) Establishment of Performance Measures.--After 
     consultation with eligible agencies, eligible providers, and 
     other interested parties (including representatives of 
     business, representatives of labor organizations, and 
     institutions of higher education), the Secretary shall 
     establish and publish performance measures described in this 
     subsection that assess the progress of each eligible agency 
     in enhancing and developing more fully the literacy skills of 
     the adult population in the State or outlying area. The 
     measures, at a minimum, shall include--
       (1) demonstrated improvements in literacy skill levels in 
     reading and writing the English language, numeracy, and 
     problem solving;
       (2) attainment of secondary school diplomas or their 
     recognized equivalent;
       (3) placement in, retention in, or completion of, 
     postsecondary education, training, or unsubsidized 
     employment; and
       (4) other performance measures the Secretary determines 
     necessary.
       (b) Expected Levels of Performance.--In developing a State 
     plan, each eligible agency shall negotiate with the Secretary 
     the expected levels of performance for the performance 
     measures described in subsection (a).

     SEC. 213. NATIONAL LEADERSHIP ACTIVITIES.

       (a) Authority.--From the amount reserved under section 
     211(a)(1) for any fiscal year, the Secretary may establish a 
     program of national leadership and evaluation activities to 
     enhance the quality of adult education and literacy 
     nationwide.
       (b) Method of Funding.--The Secretary may carry out 
     national leadership and evaluation activities directly or 
     through grants, contracts, or cooperative agreements.
       (c) Uses of Funds.--Funds made available to carry out this 
     section shall be used for--
       (1) research, such as estimating the number of adults 
     functioning at the lowest levels of literacy proficiency;
       (2) demonstration of model and innovative programs, such as 
     the development of models for basic skill certificates, 
     identification of effective strategies for working with 
     adults with learning disabilities and with individuals with 
     limited English proficiency who are adults, and workplace 
     literacy programs;
       (3) dissemination, such as dissemination of information 
     regarding promising practices resulting from federally funded 
     demonstration programs;
       (4) evaluations and assessments, such as periodic 
     independent evaluations of activities assisted under this 
     subtitle and assessments of the condition and progress of 
     literacy in the United States;
       (5) efforts to support capacity building at the State and 
     local levels, such as technical assistance in program 
     planning, assessment, evaluation, and monitoring of 
     activities under this subtitle;
       (6) data collection, such as improvement of both local and 
     State data systems through technical assistance and 
     development of model performance data collection systems;
       (7) professional development, such as technical assistance 
     activities to advance effective training practices, identify 
     exemplary professional development projects, and disseminate 
     new findings in adult education training;
       (8) technical assistance, such as endeavors that aid 
     distance learning, and promote and improve the use of 
     technology in the classroom; or
       (9) other activities designed to enhance the quality of 
     adult education and literacy nationwide.

                      CHAPTER 2--STATE PROVISIONS

     SEC. 221. STATE ADMINISTRATION.

       (a) In General.--Each eligible agency shall be responsible 
     for the State administration of activities under this 
     subtitle, including--
       (1) the development, submission, and implementation of the 
     State plan;
       (2) consultation with other appropriate agencies, groups, 
     and individuals that are involved in, or interested in, the 
     development and implementation of activities assisted under 
     this subtitle; and
       (3) coordination and nonduplication with other Federal and 
     State education, training, corrections, public housing, and 
     social service programs.
       (b) State-Imposed Requirements.--Whenever a State imposes 
     any rule or policy relating to the administration and 
     operation of activities funded under this subtitle (including 
     any rule or policy based on State interpretation of any 
     Federal law, regulation, or guideline), the State shall 
     identify the rule or policy as a State-imposed requirement.

     SEC. 222. STATE DISTRIBUTION OF FUNDS; STATE SHARE.

       (a) State Distribution of Funds.--Each eligible agency 
     receiving a grant under this subtitle for a fiscal year--
       (1) shall use not less than 80 percent of the grant funds 
     to carry out section 225 and to award grants and contracts 
     under section 231 for the fiscal year, of which not more than 
     10 percent of the 80 percent shall be available to carry out 
     section 225 for the fiscal year;
       (2) shall use not more than 15 percent of the grant funds 
     to carry out State leadership activities under section 223 
     for the fiscal year; and
       (3) shall use not more than 5 percent of the grant funds, 
     or $80,000, whichever is greater, for administrative expenses 
     of the eligible agency for the fiscal year.
       (b) State Share Requirement.--
       (1) In general.--In order to receive a grant from the 
     Secretary under section 211(b) each eligible agency shall 
     provide an amount equal to 25 percent of the total amount of 
     funds expended for adult education in the State or outlying 
     area, except that the Secretary may decrease the amount of 
     funds required under this subsection for an eligible agency 
     serving an outlying area.
       (2) State's share.--An eligible agency's funds required 
     under paragraph (1) may be in cash or in kind, fairly 
     evaluated, and shall include only non-Federal funds that are 
     used for adult education and literacy activities in a manner 
     that is consistent with the purpose of this subtitle.

     SEC. 223. STATE LEADERSHIP ACTIVITIES.

       (a) In General.--Each eligible agency shall use funds made 
     available under section 222(a)(2) for 1 or more of the 
     following activities:
       (1) Professional development and training, including 
     training in the use of software and technology.
       (2) Developing and disseminating curricula for adult 
     education and literacy activities.
       (3) Monitoring and evaluating the quality of, and 
     improvement in, services and activities conducted with 
     assistance under this subtitle.
       (4) Establishing challenging performance measures and 
     levels of performance for literacy proficiency in order to 
     assess program quality and improvement.
       (5) Integration of literacy instruction and occupational 
     skill training, and promoting linkages with employers.
       (6) Linkages with postsecondary institutions.
       (7) Supporting State or regional networks of literacy 
     resource centers.
       (8) Other activities of statewide significance that promote 
     the purpose of this subtitle.
       (b) Collaboration.--In carrying out this section, eligible 
     agencies shall collaborate where possible and avoid 
     duplicating efforts in order to maximize the impact of the 
     activities described in subsection (a).

     SEC. 224. STATE PLAN.

       (a) 3-Year Plans.--
       (1) In general.--Each eligible agency desiring a grant 
     under this subtitle for any fiscal year shall submit to, or 
     have on file with, the Secretary a 3-year State plan.
       (2) Comprehensive plan or application.--The eligible agency 
     may submit the State plan as part of a comprehensive plan or 
     application for Federal education assistance.
       (b) Plan Contents.--In developing the State plan, and any 
     revisions to the State plan, the eligible agency shall 
     include in the State plan or revisions--
       (1) an objective assessment of the needs of individuals in 
     the State for adult education and literacy activities, 
     including individuals most in need or hardest to serve, such 
     as educationally disadvantaged adults, immigrants, 
     individuals with limited English proficiency, incarcerated 
     individuals, homeless individuals, recipients of public 
     assistance, and individuals with disabilities;
       (2) a description of the adult education and literacy 
     activities that will be carried out with any funds received 
     under this subtitle;
       (3) a description of how the eligible agency will evaluate 
     annually the effectiveness of the adult education and 
     literacy activities based on the performance measures 
     described in section 212;
       (4) a description of how the eligible agency will ensure 
     that the data reported to the eligible agency from eligible 
     providers under this subtitle and the data the eligible 
     agency reports to the Secretary are complete, accurate, and 
     reliable;
       (5) a description of the performance measures required 
     under section 212(a) and how such performance measures and 
     the expected levels of performance will ensure improvement of 
     adult education and literacy activities in the State or 
     outlying area;
       (6) an assurance that the funds received under this 
     subtitle will not be expended for any purpose other than for 
     activities under this subtitle;
       (7) a description of how the eligible agency will fund 
     local activities in accordance with the priorities described 
     in section 242(a);
       (8) a description of how the eligible agency will determine 
     which eligible providers are eligible for funding in 
     accordance with the preferences described in section 242(b);
       (9) a description of how funds will be used for State 
     leadership activities, which activities may include 
     professional development and training, instructional 
     technology, and management technology;

[[Page S3976]]

       (10) an assurance that the eligible agency will expend the 
     funds under this subtitle only in a manner consistent with 
     fiscal requirement in section 241;
       (11) a description of the process that will be used for 
     public participation and comment with respect to the State 
     plan;
       (12) a description of how the eligible agency will develop 
     program strategies for populations that include, at a 
     minimum--
       (A) low-income students;
       (B) individuals with disabilities;
       (C) single parents and displaced homemakers; and
       (D) individuals with multiple barriers to educational 
     enhancement;
       (13) a description of the measures that will be taken by 
     the eligible agency to assure coordination of and avoid 
     duplication among--
       (A) adult education activities authorized under this 
     subtitle;
       (B) activities authorized under title III;
       (C) programs authorized under the Wagner-Peyser Act (29 
     U.S.C. 49 et seq.), title I of the Rehabilitation Act of 1973 
     (29 U.S.C. 720 et seq.), part A of title IV of the Social 
     Security Act (42 U.S.C. 601 et seq.), section 6(d) of the 
     Food Stamp Act of 1977 (7 U.S.C. 2015(d)), and title V of the 
     Older Americans Act of 1965 (42 U.S.C. 3056 et seq.);
       (D) a work program authorized under section 6(o) of the 
     Food Stamp Act of 1977 (7 U.S.C. 2015(o));
       (E) activities authorized under chapter 2 of title II of 
     the Trade Act of 1974 (19 U.S.C. 2271 et seq.);
       (F) activities authorized under chapter 41 of title 38, 
     United States Code;
       (G) activities carried out by the Bureau of Apprenticeship 
     and Training;
       (H) training activities carried out by the Department of 
     Housing and Urban Development; and
       (I) programs authorized under State unemployment 
     compensation laws and the Federal unemployment insurance 
     program under titles III, IX, and XII of the Social Security 
     Act (42 U.S.C. 501 et seq., 1101 et seq., and 1321 et seq.); 
     and
       (14) the description and information specified in 
     paragraphs (8) and (16) of section 304(b).
       (c) Plan Revisions.--When changes in conditions or other 
     factors require substantial revisions to an approved State 
     plan, the eligible agency shall submit a revision to the 
     State plan to the Secretary.
       (d) Consultation.--The eligible agency shall--
       (1) submit the State plan, and any revisions to the State 
     plan, to the Governor of the State for review and comment; 
     and
       (2) ensure that any comments by the Governor regarding the 
     State plan, and any revision to the State plan, are submitted 
     to the Secretary.
       (e) Plan Approval.--
       (1) In general.--The Secretary shall approve a State plan, 
     or a revision to an approved State plan, only if the 
     Secretary determines that--
       (A) the State plan, or revision, respectively, meets the 
     requirements of this section; and
       (B) the State's performance measures and expected levels of 
     performance under section 212 are sufficiently rigorous to 
     meet the purpose of this title.
       (2) Disapproval.--The Secretary shall not finally 
     disapprove a State plan, except after giving the eligible 
     agency notice and an opportunity for a hearing.
       (3) Peer review.--The Secretary shall establish a peer 
     review process to make recommendations regarding the approval 
     of State plans and revisions to the State plan.

     SEC. 225. PROGRAMS FOR CORRECTIONS EDUCATION AND OTHER 
                   INSTITUTIONALIZED INDIVIDUALS.

       (a) Program Authorized.--From funds made available under 
     section 222(a)(1) for a fiscal year, each eligible agency 
     shall carry out corrections education or education for other 
     institutionalized individuals.
       (b) Uses of Funds.--The funds described in subsection (a) 
     shall be used for the cost of educational programs for 
     criminal offenders in corrections institutions and for other 
     institutionalized individuals, including academic programs 
     for--
       (1) basic education;
       (2) special education programs as determined by the State;
       (3) bilingual programs, or English as a second language 
     programs; and
       (4) secondary school credit programs.
       (c) Definition of Criminal Offender.--
       (1) Criminal offender.--The term ``criminal offender'' 
     means any individual who is charged with or convicted of any 
     criminal offense.
       (2) Correctional institution.--The term ``correctional 
     institution'' means any--
       (A) prison;
       (B) jail;
       (C) reformatory;
       (D) work farm;
       (E) detention center; or
       (F) halfway house, community-based rehabilitation center, 
     or any other similar institution designed for the confinement 
     or rehabilitation of criminal offenders.

                      CHAPTER 3--LOCAL PROVISIONS

     SEC. 231. GRANTS AND CONTRACTS FOR ELIGIBLE PROVIDERS.

       (a) Grants.--From funds made available under section 
     222(a)(1), each eligible agency shall award multiyear grants 
     or contracts to eligible providers within the State to enable 
     the eligible providers to develop, implement, and improve 
     adult education and literacy activities within the State.
       (b) Special Rule.--Each eligible agency receiving funds 
     under this subtitle shall ensure that all eligible providers 
     have direct and equitable access to apply for grants or 
     contracts under this section.
       (c) Required Local Activities.--Each eligible provider 
     receiving a grant or contract under this subtitle shall 
     establish programs that provide instruction or services that 
     meet the purpose described in section 202(b), such as--
       (1) adult education and literacy services; or
       (2) English literacy programs.

     SEC. 232. LOCAL APPLICATION.

       Each eligible provider desiring a grant or contract under 
     this subtitle shall submit an application to the eligible 
     agency containing such information and assurances as the 
     eligible agency may require, including--
       (1) a description of how funds awarded under this subtitle 
     will be spent;
       (2) how the expected levels of performance of the eligible 
     provider with respect to participant recruitment, retention, 
     and performance measures described in section 212, will be 
     met and reported to the eligible agency; and
       (3) a description of any cooperative arrangements the 
     eligible provider has with other agencies, institutions, or 
     organizations for the delivery of adult education and 
     literacy programs.

     SEC. 233. LOCAL ADMINISTRATIVE COST LIMITS.

       (a) In General.--Subject to subsection (b), of the sum that 
     is made available under this subtitle to an eligible 
     provider--
       (1) not less than 95 percent shall be expended for carrying 
     out adult education and literacy activities; and
       (2) the remaining amount, not to exceed 5 percent, shall be 
     used for planning, administration, personnel development, and 
     interagency coordination.
       (b) Special Rule.--In cases where the cost limits described 
     in subsection (a) are too restrictive to allow for adequate 
     planning, administration, personnel development, and 
     interagency coordination, the eligible provider shall 
     negotiate with the eligible agency in order to determine an 
     adequate level of funds to be used for noninstructional 
     purposes.

                     CHAPTER 4--GENERAL PROVISIONS

     SEC. 241. ADMINISTRATIVE PROVISIONS.

       (a) Supplement Not Supplant.--Funds made available for 
     adult education and literacy activities under this subtitle 
     shall supplement and not supplant other State or local public 
     funds expended for adult education and literacy activities.
       (b) Representation.--The eligible agency shall provide 
     representation to the statewide partnership.

     SEC. 242. PRIORITIES AND PREFERENCES.

       (a) Priorities.--Each eligible agency and eligible provider 
     receiving assistance under this subtitle shall give priority 
     in using the assistance to adult education and literacy 
     activities that--
       (1) are built on a strong foundation of research and 
     effective educational practice;
       (2) effectively employ advances in technology, as 
     appropriate, including the use of computers;
       (3) provide learning in real life contexts to ensure that 
     an individual has the skills needed to compete in a global 
     economy and exercise the rights and responsibilities of 
     citizenship;
       (4) are staffed by well-trained instructors, counselors, 
     and administrators;
       (5) are of sufficient intensity and duration for 
     participants to achieve substantial learning gains, such as 
     by earning a basic skills certificate that reflects skills 
     acquisition and has meaning to employers;
       (6) establish measurable performance levels for participant 
     outcomes, such as levels of literacy achieved and attainment 
     of a secondary school diploma or its recognized equivalent, 
     that are tied to challenging State performance levels for 
     literacy proficiency;
       (7) coordinate with other available resources in the 
     community, such as by establishing strong links with 
     elementary schools and secondary schools, postsecondary 
     institutions, 1-stop customer service centers, job training 
     programs, and social service agencies;
       (8) offer flexible schedules and support services (such as 
     child care and transportation) that are necessary to enable 
     individuals, including individuals with disabilities or other 
     special needs, to attend and complete programs; and
       (9) maintain a high-quality information management system 
     that has the capacity to report client outcomes and to 
     monitor program performance against the State performance 
     measures.
       (b) Preferences.--In determining which eligible providers 
     will receive funds under this subtitle for a fiscal year, 
     each eligible agency receiving a grant under this subtitle, 
     in addition to addressing the priorities described in 
     subsection (a), shall--
       (1) give preference to eligible providers that the eligible 
     agency determines serve local areas with high concentrations 
     of individuals in poverty or with low levels of literacy 
     (including English language proficiency); and
       (2) consider--
       (A) the results, if any, of the evaluations required under 
     section 244(a); and
       (B) the degree to which the eligible provider will 
     coordinate with and utilize other literacy and social 
     services available in the community.

     SEC. 243. INCENTIVE GRANTS.

       (a) In General.--The Secretary may make grants to States 
     that exceed--
       (1) the State performance measures established by the 
     Secretary of Education under this Act; and
       (2) the State performance measures established under title 
     III.
       (b) Priority.--In awarding incentive grants under this 
     section, the Secretary shall give priority to those States 
     submitting a State unified plan as described in section 501 
     that is approved by the appropriate Secretaries as described 
     in such section.
       (c) Use of Funds.--A State that receives an incentive grant 
     under this section shall use the

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     funds made available through the grant to carry out 
     innovative programs as determined by the State.

     SEC. 244. EVALUATION, IMPROVEMENT, AND ACCOUNTABILITY.

       (a) Local Evaluation.--Each eligible agency shall 
     biennially evaluate the adult education and literacy 
     activities of each eligible provider that receives a grant or 
     contract under this subtitle, using the performance measures 
     established under section 212.
       (b) Improvement Activities.--If, after reviewing the 
     evaluation, an eligible agency determines that an eligible 
     provider is not making substantial progress in achieving the 
     purpose of this subtitle, the eligible agency may work 
     jointly with the eligible provider to develop an improvement 
     plan. If, after not more than 2 years of implementation of 
     the improvement plan, the eligible agency determines that the 
     eligible provider is not making substantial progress, the 
     eligible agency shall take whatever corrective action the 
     eligible agency deems necessary, which may include 
     termination of funding or the implementation of alternative 
     service arrangements, consistent with State law. The eligible 
     agency shall take corrective action under the preceding 
     sentence only after the eligible agency has provided 
     technical assistance to the eligible provider and shall 
     ensure, to the extent practicable, that any corrective action 
     the eligible agency takes allows for continued services to 
     and activities for the individuals served by the eligible 
     provider.
       (c) State Report.--
       (1) In general.--The eligible agency shall report annually 
     to the Secretary regarding the quality and effectiveness of 
     the adult education and literacy activities funded through 
     the eligible agency's grants or contracts under this 
     subtitle, based on the performance measures and expected 
     levels of performance included in the State plan.
       (2) Information.--The eligible agency shall include in the 
     reports such information, in such form, as the Secretary may 
     require in order to ensure the collection of uniform national 
     data.
       (3) Availability.--The eligible agency shall make available 
     to the public the annual report under this subsection.
       (d) Technical Assistance.--If the Secretary determines that 
     the eligible agency is not properly implementing the eligible 
     agency's responsibilities under subsection (b), or is not 
     making substantial progress in meeting the purpose of this 
     subtitle, based on the performance measures and expected 
     levels of performance included in the eligible agency's State 
     plan, the Secretary shall work with the eligible agency to 
     implement improvement activities.
       (e) Withholding of Federal Funds.--If, not earlier than 2 
     years after implementing activities described in subsection 
     (d), the Secretary determines that the eligible agency is not 
     making sufficient progress, based on the eligible agency's 
     performance measures and expected levels of performance, the 
     Secretary, after notice and opportunity for a hearing, shall 
     withhold from the eligible agency all, or a portion, of the 
     eligible agency's grant under this subtitle. The Secretary 
     may use funds withheld under the preceding sentence to 
     provide, through alternative arrangements, services and 
     activities within the State to meet the purpose of this 
     title.

     SEC. 245. NATIONAL INSTITUTE FOR LITERACY.

       (a) Purpose.--The purpose of this section is to establish a 
     National Institute for Literacy that--
       (1) provides national leadership regarding literacy;
       (2) coordinates literacy services and policy; and
       (3) is a national resource for adult education and 
     literacy, by providing the best and most current information 
     available and supporting the creation of new ways to offer 
     improved literacy services.
       (b) Establishment.--
       (1) In general.--There shall be a 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 with the 
     Secretary of Labor and the Secretary of Health and Human 
     Services (in this section referred to as the ``Interagency 
     Group''). The Secretary may include in the Institute any 
     research and development center, institute, or clearinghouse 
     established within the Department of Education the purpose of 
     which is determined by the Secretary to be related to the 
     purpose of the Institute.
       (2) 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 (e) in planning the goals of the 
     Institute and in the implementation of any programs to 
     achieve the goals. If the Board's recommendations are not 
     followed, the Interagency Group shall provide a written 
     explanation to the Board concerning actions the Interagency 
     Group takes that are inconsistent with the Board's 
     recommendations, including the reasons for not following the 
     Board's recommendations with respect to the actions. The 
     Board may also request a meeting of the Interagency Group to 
     discuss the Board's recommendations.
       (3) Daily operations.--The daily operations of the 
     Institute shall be administered by the Director of the 
     Institute.
       (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 to--
       (A) establish 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) coordinate support for the provision of literacy and 
     basic skills services across Federal agencies and at the 
     State and local levels;
       (C) coordinate the support of research and development on 
     literacy and basic skills for adults across Federal agencies, 
     especially with the Office of Educational Research and 
     Improvement in the Department of Education, and carry out 
     basic and applied research and development on topics that are 
     not being investigated by other organizations or agencies;
       (D) collect and disseminate information on methods of 
     advancing literacy;
       (E) provide policy and technical assistance to Federal, 
     State, and local entities for the improvement of policy and 
     programs relating to literacy;
       (F) fund 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; and
       (ii) serving as a link between the Institute and providers 
     of adult education and literacy activities for the purpose of 
     sharing information, data, research, expertise, and literacy 
     resources; and
       (G) 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 cooperative agreements.--The 
     Institute may award 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) In general.--The Institute may, in consultation with 
     the Board, award fellowships, with such stipends and 
     allowances that the Director considers necessary, to 
     outstanding individuals pursuing careers in adult education 
     or literacy in the areas of instruction, management, 
     research, or innovation.
       (2) 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) Internships.--The Institute, in consultation with the 
     Board, is authorized to award paid and unpaid internships to 
     individuals seeking to assist in carrying out the Institute's 
     purpose and to accept assistance from volunteers.
       (e) National Institute for Literacy Advisory Board.--
       (1) Establishment.--
       (A) In general.--There shall be a National Institute for 
     Literacy Advisory Board, which shall consist of 10 
     individuals appointed by the President with the advice and 
     consent of the Senate.
       (B) Composition.--The Board shall comprise individuals who 
     are not otherwise officers or employees of the Federal 
     Government and who are representative of such entities as--
       (i) literacy organizations and providers of literacy 
     services, including nonprofit providers, providers of English 
     as a second language programs and services, social service 
     organizations, and eligible providers receiving assistance 
     under this subtitle;
       (ii) businesses that have demonstrated interest in literacy 
     programs;
       (iii) literacy students, including literacy students with 
     disabilities;
       (iv) experts in the area of literacy research;
       (v) State and local governments;
       (vi) State Directors of adult education; and
       (vii) labor organizations.
       (2) Duties.--The Board shall--
       (A) make recommendations concerning the appointment of the 
     Director and staff of the Institute; and
       (B) provide independent advice on the operation of the 
     Institute.
       (3) Appointments.--
       (A) In general.--Appointments to the Board made after the 
     date of enactment of the Workforce Investment Partnership Act 
     shall be for 3-year terms, except that the initial terms for 
     members may be established at 1, 2, or 3 years in order to 
     establish a rotation in which \1/3\ of the members are 
     selected each year.
       (B) Vacancies.--Any member appointed to fill a vacancy 
     occurring before the expiration of the term for which the 
     member's predecessor was appointed shall be appointed only 
     for the remainder of that term. A member may serve after the 
     expiration of that member's term until a successor has taken 
     office.
       (4) Officers.--The Chairperson and Vice Chairperson of the 
     Board shall be elected by the members.
       (5) Meetings.--The Board shall meet at the call of the 
     Chairperson or a majority of its members.

[[Page S3978]]

       (f) Gifts, Bequests, and Devises.--
       (1) In general.--The Institute may accept, administer, and 
     use gifts or donations of services, money, or property, 
     whether real or personal, tangible or intangible.
       (2) Rules.--The Board shall establish written rules setting 
     forth the criteria to be used by the Institute in determining 
     whether the acceptance of contributions of services, money, 
     or property whether real or personal, tangible or intangible, 
     would reflect unfavorably upon the ability of the Institute 
     or any employee to carry out its responsibilities or official 
     duties in a fair and objective manner, or would compromise 
     the integrity or the appearance of the integrity of its 
     programs or any official involved in those programs.
       (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 United States.
       (h) Staff.--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 
     annual rate of basic pay payable for level IV of the 
     Executive Schedule.
       (j) Experts and Consultants.--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 biennial report 
     to the Interagency Group and Congress.
       (l) Nonduplication.--The Institute shall not duplicate any 
     functions carried out by the Secretary, the Secretary of 
     Labor, or the Secretary of Health and Human Services under 
     this subtitle. This subsection shall not be construed to 
     prohibit the Secretaries from delegating such functions to 
     the Institute.
       (m) Funding.--Any amounts appropriated to the Secretary, 
     the Secretary of Labor, the Secretary of Health and Human 
     Services, or any other department that participates in the 
     Institute for purposes that the Institute is authorized to 
     perform under this section may be provided to the Institute 
     for such purposes.

     SEC. 246. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated to carry out this 
     title such sums as may be necessary for fiscal year 1999 and 
     each of the 5 succeeding fiscal years.
                           Subtitle B--Repeal

     SEC. 251. REPEAL.

       (a) Repeal.--The Adult Education Act (20 U.S.C. 1201 et. 
     seq.) is repealed.
       (b) Conforming Amendments.--
       (1) Refugee education assistance act.--Subsection (b) of 
     section 402 of the Refugee Education Assistance Act of 1980 
     (8 U.S.C. 1522 note) is repealed.
       (2) Elementary and secondary education act of 1965.--
       (A) Section 1202 of esea.--Section 1202(c)(1) of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6362(c)(1)) is amended by striking ``Adult Education Act'' 
     and inserting ``Workforce Investment Partnership Act of 
     1997''.
       (B) Section 1205 of esea.--Section 1205(8)(B) of such Act 
     (20 U.S.C. 6365(8)(B)) is amended by striking ``Adult 
     Education Act'' and inserting ``Workforce Investment 
     Partnership Act of 1997''.
       (C) Section 1206 of esea.--Section 1206(a)(1)(A) of such 
     Act (20 U.S.C. 6366(a)(1)(A)) is amended by striking ``an 
     adult basic education program under the Adult Education Act'' 
     and inserting ``adult education and literacy activities under 
     the Workforce Investment Partnership Act of 1997''.
       (D) Section 3113 of esea.--Section 3113(1) of such Act (20 
     U.S.C. 6813(1)) is amended by striking ``section 312 of the 
     Adult Education Act'' and inserting ``section 2 of the 
     Workforce Investment Partnership Act of 1997''.
       (E) Section 9161 of esea.--Section 9161(2) of such Act (20 
     U.S.C. 7881(2)) is amended by striking ``section 312(2) of 
     the Adult Education Act'' and inserting ``section 2 of the 
     Workforce Investment Partnership Act of 1997''.
       (3) Older americans act of 1965.--Section 203(b)(8) of the 
     Older Americans Act of 1965 (42 U.S.C. 3013(b)(8)) is amended 
     by striking ``Adult Education Act'' and inserting ``Workforce 
     Investment Partnership Act of 1997''.
       (4) National literacy act of 1991.--The National Literacy 
     Act of 1991 (20 U.S.C. 1201 note) is repealed.
         TITLE III--WORKFORCE INVESTMENT AND RELATED ACTIVITIES
              Subtitle A--Workforce Investment Activities

   CHAPTER 1--ALLOTMENTS TO STATES FOR ADULT EMPLOYMENT AND TRAINING 
 ACTIVITIES, DISLOCATED WORKER EMPLOYMENT AND TRAINING ACTIVITIES, AND 
                            YOUTH ACTIVITIES

     SEC. 301. GENERAL AUTHORIZATION.

       The Secretary of Labor shall make an allotment to each 
     State that has a State plan approved under section 304 and a 
     grant to each outlying area that complies with the 
     requirements of this title, to enable the State or outlying 
     area to assist local areas in providing, through a statewide 
     workforce investment system--
       (1) adult employment and training activities;
       (2) dislocated worker employment and training activities; 
     and
       (3) youth activities, including summer employment 
     opportunities, tutoring, activities to promote study skills, 
     alternative secondary school services, employment skill 
     training, adult mentoring, and supportive services.

     SEC. 302. STATE ALLOTMENTS.

       (a) In General.--The Secretary shall--
       (1) make allotments and grants from the total amount 
     appropriated under section 322(a) for a fiscal year in 
     accordance with subsection (b)(1);
       (2)(A) reserve 20 percent of the amount appropriated under 
     section 322(b) for a fiscal year for use under sections 
     366(b)(2), 367(f), and 369; and
       (B) make allotments and grants from 80 percent of the 
     amount appropriated under section 322(b) for a fiscal year in 
     accordance with subsection (b)(2); and
       (3)(A) for each fiscal year in which the amount 
     appropriated under section 322(c) exceeds $1,000,000,000, 
     reserve a portion determined under subsection (b)(3)(A) of 
     the amount appropriated under section 322(c) for use under 
     sections 362 and 364; and
       (B) use the remainder of the amount appropriated under 
     section 322(c) for a fiscal year to make allotments and 
     grants in accordance with subparagraphs (B) and (C) of 
     subsection (b)(3) and make funds available for use under 
     section 361.
       (b) Allotment Among States.--
       (1) Adult employment and training activities.--
       (A) Outlying areas.--
       (i) In general.--From the amount made available under 
     subsection (a)(1) for a fiscal year, the Secretary shall 
     reserve not more than \1/4\ of 1 percent--

       (I) to provide assistance to the outlying areas to carry 
     out adult employment and training activities; and
       (II) for each of the fiscal years 1999 through 2004, to 
     carry out the competition described in clause (iii), except 
     that the amount reserved to carry out such clause for any 
     such fiscal year shall not exceed the amount reserved for the 
     Freely Associated States for fiscal year 1998, from amounts 
     reserved under section 202(a)(1) of the Job Training 
     Partnership Act (29 U.S.C. 1602(a)(1)) (as in effect on the 
     day before the date of enactment of this Act).

       (ii) Application.--To be eligible to receive a grant under 
     this subparagraph, an outlying area shall submit an 
     application to the Secretary at such time, in such manner, 
     and containing such information and assurances as the 
     Secretary may require.
       (iii) Competitive grants.--The Secretary shall use funds 
     described in clause (i)(II) to make grants to outlying areas 
     to carry out adult employment and training activities.
       (iv) Basis.--The Secretary shall make grants pursuant to 
     clause (iii) 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.
       (v) Assistance requirements.--Any Freely Associated State 
     that desires to receive a grant made under this subparagraph 
     shall include in the application of the State for 
     assistance--

       (I) information demonstrating that the State will meet all 
     conditions of the regulations described in clause (ix); and
       (II) an assurance that, notwithstanding any other provision 
     of this title, the State will use the amounts made available 
     through such grants only for the direct provision of 
     services.
       (vi) Termination of eligibility.--Notwithstanding any other 
     provision of law, the Freely Associated States shall not 
     receive any funds under this subparagraph for any program 
     year that begins after September 30, 2004.
       (vii) Administrative costs.--The Secretary may provide not 
     more than 5 percent of the amount made available for grants 
     under clause (iii) to pay the administrative costs of the 
     Pacific Region Educational Laboratory in Honolulu, Hawaii, 
     regarding activities assisted under this subparagraph.
       (viii) 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, including the Freely Associated States, under this 
     subparagraph.
       (ix) Regulations.--The Secretary shall issue regulations 
     specifying requirements of this title that apply to outlying 
     areas receiving funds under this subparagraph.
       (B) States.--
       (i) In general.--After determining the amount to be 
     reserved under subparagraph (A), the Secretary shall allot 
     the remainder of the amount referred to in subsection (a)(1) 
     for a fiscal year to the States pursuant to clause (ii) for 
     adult employment and training activities.
       (ii) Formula.--Subject to clauses (iii) and (iv), of the 
     remainder--

       (I) 33\1/3\ percent shall be allotted on the basis of the 
     relative number of unemployed individuals in areas of 
     substantial unemployment in each State, compared to the total 
     number of unemployed individuals in areas of substantial 
     unemployment in all States;
       (II) 33\1/3\ percent shall be allotted on the basis of the 
     relative excess number of unemployed individuals in each 
     State, 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 disadvantaged adults in each State, 
     compared to the total number of disadvantaged adults in all 
     States.

       (iii) Minimum and maximum percentages.--

       (I) Minimum percentage.--No State shall receive an 
     allotment percentage for a fiscal year that is less than 90 
     percent of the allotment percentage of the State for the 
     preceding fiscal year.
       (II) Maximum percentage.--No State shall receive an 
     allotment percentage for a fiscal year

[[Page S3979]]

     that is more than 130 percent of the allotment percentage of 
     the State for the preceding fiscal year.

       (iv) Small state minimum allotment.--No State shall receive 
     an allotment under this subparagraph that is less than \1/2\ 
     of 1 percent of the remainder described in clause (i) for a 
     fiscal year. Amounts necessary for increasing such allotments 
     to States to comply with the preceding sentence shall be 
     obtained by ratably reducing the allotments to be made to 
     other States under this subparagraph.
       (v) Definitions.--In this subparagraph:

       (I) Allotment percentage.--The term ``allotment 
     percentage'', used with respect to fiscal year 1999 or a 
     subsequent fiscal year, means a percentage of the remainder 
     described in clause (i), received through an allotment made 
     under this subparagraph, for the fiscal year. The term, used 
     with respect to fiscal year 1998, means the percentage of the 
     amounts allocated under section 202(b) of the Job Training 
     Partnership Act (29 U.S.C. 1602(b)) (as in effect on the day 
     before the date of enactment of this Act) received under such 
     section by service delivery areas in the State involved for 
     fiscal year 1998.
       (II) Area of substantial unemployment.--The term ``area of 
     substantial unemployment'' means any area that is of 
     sufficient size and scope to sustain a program of workforce 
     investment activities carried out under this subtitle and 
     that has an average rate of unemployment of at least 6.5 
     percent for the most recent 12 months, as determined by the 
     Secretary. For purposes of this subclause, determinations of 
     areas of substantial unemployment shall be made once each 
     fiscal year.
       (III) Disadvantaged adult.--The term ``disadvantaged 
     adult'' means an individual who is not less than age 22 and 
     not more than age 72 and is a low-income individual.
       (IV) Excess number.--The term ``excess number'' means the 
     number of unemployed individuals in excess of 4.5 percent of 
     the civilian labor force in a State.
       (2) Dislocated worker employment and training.--
       (A) Outlying areas.--
       (i) In general.--From the amount made available under 
     subsection (a)(2)(B) for a fiscal year, the Secretary shall 
     reserve not more than \1/4\ of 1 percent--

       (I) to provide assistance to the outlying areas to carry 
     out dislocated worker employment and training activities; and
       (II) for each of the fiscal years 1999 through 2004, to 
     carry out the competition described in clause (iii), except 
     that the amount reserved to carry out such clause for any 
     such fiscal year shall not exceed the amount reserved for the 
     Freely Associated States for fiscal year 1998, from amounts 
     reserved under section 302(b) of the Job Training Partnership 
     Act (29 U.S.C. 1652(b)) (as in effect on the day before the 
     date of enactment of this Act).

       (ii) Application.--To be eligible to receive a grant under 
     this subparagraph, an outlying area shall submit an 
     application to the Secretary at such time, in such manner, 
     and containing such information and assurances as the 
     Secretary may require.
       (iii) Competitive grants.--The Secretary shall use funds 
     described in clause (i)(II) to make grants to outlying areas 
     to carry out dislocated worker employment and training 
     activities.
       (iv) Basis.--The Secretary shall make grants pursuant to 
     clause (iii) 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.
       (v) Assistance requirements.--Any Freely Associated State 
     that desires to receive a grant made under this subparagraph 
     shall include in the application of the State for 
     assistance--

       (I) information demonstrating that the State will meet all 
     conditions of the regulations described in clause (ix); and
       (II) an assurance that, notwithstanding any other provision 
     of this title, the State will use the amounts made available 
     through such grants only for the direct provision of 
     services.

       (vi) Termination of eligibility.--Notwithstanding any other 
     provision of law, the Freely Associated States shall not 
     receive any funds under this subparagraph for any program 
     year that begins after September 30, 2004.
       (vii) Administrative costs.--The Secretary may provide not 
     more than 5 percent of the amount made available for grants 
     under clause (iii) to pay the administrative costs of the 
     Pacific Region Educational Laboratory in Honolulu, Hawaii, 
     regarding activities assisted under this subparagraph.
       (viii) 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, including the Freely Associated States, under this 
     subparagraph.
       (ix) Regulations.--The Secretary shall issue regulations 
     specifying requirements of this title that apply to outlying 
     areas receiving funds under this subparagraph.
       (B) States.--
       (i) In general.--After determining the amount to be 
     reserved under subparagraph (A), the Secretary shall allot 
     the remainder of the amount referred to in subsection 
     (a)(2)(B) for a fiscal year to the States pursuant to clause 
     (ii) for dislocated worker employment and training 
     activities.
       (ii) Formula.--Of the remainder--

       (I) 33\1/3\ percent shall be allotted on the basis of the 
     relative number of unemployed individuals in each State, 
     compared to the total number of unemployed individuals in all 
     States;

       (II) 33\1/3\ percent shall be allotted on the basis 
     described in paragraph (1)(B)(ii)(II); and
       (III) 33\1/3\ percent shall be allotted on the basis of the 
     relative number of individuals in each State who have been 
     unemployed for 15 weeks or more, compared to the total number 
     of individuals in all States who have been unemployed for 15 
     weeks or more.

       (3) Youth activities.--
       (A) Youth opportunity grants.--
       (i) In general.--For each fiscal year in which the amount 
     appropriated under section 322(c) exceeds $1,000,000,000, the 
     Secretary shall reserve a portion of the amount to provide 
     youth opportunity grants under section 364 and provide youth 
     activities under section 362.
       (ii) Portion.--The portion referred to in clause (i) shall 
     equal, for a fiscal year--

       (I) except as provided in subclause (II), the difference 
     obtained by subtracting $1,000,000,000 from the amount 
     described in clause (i); and
       (II) for any fiscal year in which the amount is 
     $1,250,000,000 or greater, $250,000,000.

       (iii) Youth activities for farmworkers.--From the portion 
     described in clause (i) for a fiscal year, the Secretary 
     shall make available $10,000,000 to provide youth activities 
     under section 362.
       (B) Outlying areas.--
       (i) In general.--From the amount made available under 
     subsection (a)(3)(B) for a fiscal year, the Secretary shall 
     reserve not more than \1/4\ of 1 percent--

       (I) to provide assistance to the outlying areas to carry 
     out youth activities; and
       (II) for each of the fiscal years 1999 through 2004, to 
     carry out the competition described in clause (iii), except 
     that the amount reserved to carry out such clause for any 
     such fiscal year shall not exceed the amount reserved for the 
     Freely Associated States for fiscal year 1998, from amounts 
     reserved under sections 252(a) and 262(a)(1) of the Job 
     Training Partnership Act (29 U.S.C. and 1631(a) and 
     1642(a)(1)) (as in effect on the day before the date of 
     enactment of this Act).

       (ii) Application.--To be eligible to receive a grant under 
     this subparagraph, an outlying area shall submit an 
     application to the Secretary at such time, in such manner, 
     and containing such information and assurances as the 
     Secretary may require.
       (iii) Competitive grants.--The Secretary shall use funds 
     described in clause (i)(II) to make grants to outlying areas 
     to carry out youth activities.
       (iv) Basis.--The Secretary shall make grants pursuant to 
     clause (iii) 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.
       (v) Assistance requirements.--Any Freely Associated State 
     that desires to receive a grant made under this subparagraph 
     shall include in the application of the State for 
     assistance--

       (I) information demonstrating that the State will meet all 
     conditions of the regulations described in clause (ix); and
       (II) an assurance that, notwithstanding any other provision 
     of this title, the State will use the amounts made available 
     through such grants only for the direct provision of 
     services.

       (vi) Termination of eligibility.--Notwithstanding any other 
     provision of law, the Freely Associated States shall not 
     receive any funds under this subparagraph for any program 
     year that begins after September 30, 2004.
       (vii) Administrative costs.--The Secretary may provide not 
     more than 5 percent of the amount made available for grants 
     under clause (iii) to pay the administrative costs of the 
     Pacific Region Educational Laboratory in Honolulu, Hawaii, 
     regarding activities assisted under this subparagraph.
       (viii) 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, including the Freely Associated States, under this 
     subparagraph.
       (ix) Regulations.--The Secretary shall issue regulations 
     specifying requirements of this title that apply to outlying 
     areas receiving funds under this subparagraph.
       (C) States.--
       (i) In general.--After determining the amounts to be 
     reserved under subparagraph (A) (if any) and subparagraph 
     (B), the Secretary shall--

       (I) from the amount referred to in subsection (a)(3)(B) for 
     a fiscal year, make available $15,000,000 to provide youth 
     activities under section 361; and
       (II) allot the remainder of the amount referred to in 
     subsection (a)(3)(B) for a fiscal year to the States pursuant 
     to clause (ii) for youth activities.

       (ii) Formula.--Subject to clause (iii), of the remainder--

       (I) 33\1/3\ percent shall be allotted on the basis 
     described in paragraph (1)(B)(ii)(I);
       (II) 33\1/3\ percent shall be allotted on the basis 
     described in paragraph (1)(B)(ii)(II); and
       (III) 33\1/3\ percent shall be allotted on the basis of the 
     relative number of disadvantaged youth in each State, 
     compared to the total number of disadvantaged youth in all 
     States.

       (iii) Minimum percentage; maximum percentage; small state 
     minimum allotment.--

       (I) In general.--Except as provided in subclause (II), the 
     requirements of clauses (iii), (iv), and (v) of paragraph 
     (1)(B) shall apply to allotments made under this subparagraph 
     in the same manner and to the same extent as the requirements 
     apply to allotments made under paragraph (1)(B).
       (II) Exceptions.--For purposes of applying the requirements 
     of those clauses under this subparagraph--

       (aa) references in those clauses to the remainder described 
     in clause (i) of paragraph (1)(B) shall be considered to be 
     references to the remainder described in clause (i)(II) of 
     this subparagraph; and
       (bb) the term ``allotment percentage'', used with respect 
     to fiscal year 1998, means the percentage of the amounts 
     allocated under sections

[[Page S3980]]

     252(b) and 262(b) of the Job Training Partnership Act (29 
     U.S.C. 1631(b) and 1642(b)) (as in effect on the day before 
     the date of enactment of this Act) received under such 
     sections by service delivery areas in the State involved for 
     fiscal year 1998.
       (iv) Definition.--In this subparagraph, the term 
     ``disadvantaged youth'' means an individual who is not less 
     than age 14 and is not more than age 21 and is a low-income 
     individual.
       (4) Definition.--In this subsection, the term ``Freely 
     Associated States'' means the Republic of the Marshall 
     Islands, the Federated States of Micronesia, and the Republic 
     of Palau.

     SEC. 303. STATEWIDE PARTNERSHIP.

       (a) In General.--The Governor of a State shall establish 
     and appoint the members of a statewide partnership to assist 
     in the development of the State plan described in section 304 
     and carry out the functions described in subsection (d).
       (b) Membership.--
       (1) In general.--The statewide partnership shall include--
       (A) the Governor;
       (B) representatives, appointed by the Governor, who--
       (i) are representatives of business in the State;
       (ii) are owners of businesses, chief executives or 
     operating officers of private businesses, and other business 
     executives or employers with optimum policymaking or 
     hiring authority, including members of local partnerships 
     described in section 308(c)(2)(A)(i);
       (iii) represent businesses with employment opportunities 
     that reflect the employment opportunities of the State; and
       (iv) are appointed from among individuals nominated by 
     State business organizations and business trade associations;
       (C) representatives, appointed by the Governor, who are 
     individuals who have optimum policymaking authority, 
     including--
       (i) representatives of--

       (I) chief elected officials (representing both cities and 
     counties, where appropriate);
       (II) labor organizations, who have been nominated by State 
     labor federations; and
       (III) individuals, and organizations, that have experience 
     relating to youth activities;

       (ii) the eligible agency officials responsible for 
     vocational education, including postsecondary vocational 
     education, and for adult education and literacy, and the 
     State officials responsible for postsecondary education 
     (including education in community colleges); and
       (iii) the State agency official responsible for vocational 
     rehabilitation and, where applicable, the State agency 
     official responsible for providing vocational rehabilitation 
     program activities for the blind;
       (D) such other State agency officials as the Governor may 
     designate, such as State agency officials carrying out 
     activities relating to employment and training, economic 
     development, public assistance, veterans, youth, juvenile 
     justice and the employment service established under the 
     Wagner-Peyser Act (29 U.S.C. 49 et seq.); and
       (E) two members of each chamber of the State legislature, 
     appointed by the appropriate presiding officer of the 
     chamber.
       (2) Majority.--A majority of the members of the statewide 
     partnership shall be representatives described in paragraph 
     (1)(B).
       (c) Chairman.--The Governor shall select a chairperson for 
     the statewide partnership from among the representatives 
     described in subsection (b)(1)(B).
       (d) Functions.--In addition to developing the State plan, 
     the statewide partnership shall--
       (1) advise the Governor on the development of a 
     comprehensive statewide workforce investment system;
       (2) assist the Governor in preparing the annual report to 
     the Secretaries described in section 321(d);
       (3) assist the Governor in developing the statewide labor 
     market information system described in section 15(e) of the 
     Wagner-Peyser Act; and
       (4) assist in the monitoring and continuous improvement of 
     the performance of the statewide workforce investment system, 
     including the evaluation of the effectiveness of workforce 
     investment activities carried out under this subtitle in 
     serving the needs of employers seeking skilled employees and 
     individuals seeking services.
       (e) Authority of Governor.--
       (1) Authority.--The Governor shall have the final authority 
     to determine the contents of and submit the State plan 
     described in section 304.
       (2) Process.--Prior to the date on which the Governor 
     submits a State plan under section 304, the Governor shall--
       (A) make available copies of a proposed State plan to the 
     public;
       (B) allow members of the statewide partnership and members 
     of the public to submit comments on the proposed State plan 
     to the Governor, not later than the end of the 30-day period 
     beginning on the date on which the proposed State plan is 
     made available; and
       (C) include with the State plan submitted to the Secretary 
     under section 304 any such comments that represent 
     disagreement with the plan.

     SEC. 304. STATE PLAN.

       (a) In General.--For a State to be eligible to receive an 
     allotment under section 302, the Governor of the State shall 
     submit to the Secretary for approval a single comprehensive 
     State plan (referred to in this title as the ``State plan'') 
     that outlines a 3-year strategy for the statewide workforce 
     investment system of the State and that meets the 
     requirements of section 303 and this section.
       (b) Contents.--The State plan shall include--
       (1) a description of the statewide partnership described in 
     section 303 used in developing the plan;
       (2) a description of State-imposed requirements for the 
     statewide workforce investment system;
       (3) a description of the State performance measures 
     developed for the workforce investment activities to be 
     carried out through the system, that includes information 
     identifying the State performance measures, established in 
     accordance with section 321(b);
       (4) information describing--
       (A) the needs of the State with regard to current and 
     projected employment opportunities;
       (B) the job skills necessary to obtain the needed 
     employment opportunities;
       (C) the economic development needs of the State; and
       (D) the type and availability of workforce investment 
     activities in the State;
       (5) an identification of local areas designated in the 
     State, including a description of the process used for the 
     designation of such areas, which shall--
       (A) ensure a linkage between participants in workforce 
     investment activities funded under this subtitle, and local 
     employment opportunities;
       (B) ensure that a significant portion of the population 
     that lives in the local area also works in the same local 
     area;
       (C) ensure cooperation and coordination of activities 
     between neighboring local areas; and
       (D) take into consideration State economic development 
     areas;
       (6) an identification of criteria for the appointment of 
     members of local partnerships based on the requirements of 
     section 308;
       (7) the detailed plans required under section 8 of the 
     Wagner-Peyser Act;
       (8) a description of the measures that will be taken by the 
     State to assure coordination of and avoid duplication among--
       (A) workforce investment activities authorized under this 
     subtitle;
       (B) other activities authorized under this title;
       (C) activities authorized under title I or II;
       (D) programs authorized under the Wagner-Peyser Act (29 
     U.S.C. 49 et seq.), title I of the Rehabilitation Act of 1973 
     (29 U.S.C. 720 et seq.), part A of title IV of the Social 
     Security Act (42 U.S.C. 601 et seq.), and section 6(d) of the 
     Food Stamp Act of 1977 (7 U.S.C. 2015(d)), and activities 
     authorized under title V of the Older Americans Act of 1965 
     (42 U.S.C. 3056 et seq.);
       (E) work programs authorized under section 6(o) of the Food 
     Stamp Act of 1977 (7 U.S.C. 2015(o));
       (F) activities authorized under chapter 2 of title II of 
     the Trade Act of 1974 (19 U.S.C. 2271 et seq.);
       (G) activities authorized under chapter 41 of title 38, 
     United States Code;
       (H) activities carried out by the Bureau of Apprenticeship 
     and Training;
       (I) training activities carried out by the Department of 
     Housing and Urban Development; and
       (J) programs authorized under State unemployment 
     compensation laws and the Federal unemployment insurance 
     program under titles III, IX, and XII of the Social Security 
     Act (42 U.S.C. 501 et seq., 1101 et seq., and 1321 et seq.);
       (9) a description of the process used by the State to 
     provide an opportunity for public comment, and input into the 
     development of the State plan, prior to submission of the 
     plan;
       (10) a description of the process for the public to comment 
     on members of the local partnerships;
       (11) a description of the length of terms and appointment 
     processes for members of the statewide partnership and local 
     partnerships in the State;
       (12) information identifying how the State will leverage 
     any funds the State receives under this subtitle with other 
     private and Federal resources;
       (13) assurances that the State will provide, in accordance 
     with section 374, for fiscal control and fund accounting 
     procedures that may be necessary to ensure the proper 
     disbursement of, and accounting for, funds paid to the State 
     through the allotment made under section 302;
       (14) if appropriate, a description of a within-State 
     allocation formula--
       (A) that is based on factors relating to excess poverty in 
     local areas or excess unemployment above the State average in 
     local areas; and
       (B) through which the State may distribute the funds the 
     State receives under this subtitle for adult employment and 
     training activities or youth activities to local areas;
       (15) an assurance that the funds made available to the 
     State through the allotment made under section 302 will 
     supplement and not supplant other public funds expended to 
     provide activities described in this subtitle;
       (16) information indicating--
       (A) how the services of one-stop partners in the State will 
     be provided through the one-stop customer service system;
       (B) how the costs of such services and the operating costs 
     of the system will be funded; and
       (C) how the State will assist in the development and 
     implementation of the operating agreement described in 
     section 311(c);
       (17) information specifying the actions that constitute a 
     conflict of interest prohibited in the State for purposes of 
     section 308(g)(2)(B);
       (18) a description of a core set of consistently defined 
     data elements for reporting on the activities carried out 
     through the one-stop customer service system in the State;
       (19) with respect to employment and training activities 
     funded under this subtitle, information--
       (A) describing the employment and training activities that 
     will be carried out with the funds the State receives under 
     this subtitle, and a description of how the State will 
     provide rapid response activities to dislocated workers;
       (B) describing the State strategy for development of a 
     fully operational statewide one-stop

[[Page S3981]]

     customer service system as described in section 315(b), 
     including--
       (i) criteria for use by chief elected officials and local 
     partnerships, for designating or certifying one-stop customer 
     service center operators, appointing one-stop partners, and 
     conducting oversight with respect to the one-stop customer 
     service system, for each local area; and
       (ii) the steps that the State will take over the 3 years 
     covered by the plan to ensure that all publicly funded labor 
     exchange services described in section 315(c)(2) or the 
     Wagner-Peyser Act (29 U.S.C. 49 et seq.), will be available 
     through the one-stop customer service system of the State;
       (C) describing the criteria used by the local partnership 
     in the development of the local plan described in section 
     309; and
       (D) describing the procedures the State will use to 
     identify eligible providers of training services, as required 
     under this subtitle; and
       (20) with respect to youth activities funded under this 
     subtitle, information--
       (A) describing the youth activities that will be carried 
     out with the funds the State receives under this subtitle;
       (B) identifying the criteria to be used by the local 
     partnership in awarding grants under section 313 for youth 
     activities;
       (C) identifying the types of criteria the Governor and 
     local partnerships will use to identify effective and 
     ineffective youth activities and eligible providers of such 
     activities; and
       (D) describing how the State will coordinate the youth 
     activities carried out in the State under this subtitle with 
     the services provided by Job Corps centers in the State.
       (c) Plan Submission and Approval.--A State plan submitted 
     to the Secretary under this section by a Governor shall be 
     considered to be approved by the Secretary at the end of the 
     60-day period beginning on the day the Secretary receives the 
     plan, unless the Secretary makes a written determination, 
     during the 60-day period, that--
       (1) the plan is inconsistent with a specific provision of 
     this title; or
       (2) the levels of performance have not been agreed to 
     pursuant to section 321(b)(4).
       (d) Modifications to Initial Plan.--A State may submit, for 
     approval by the Secretary, substantial modifications to the 
     State plan in accordance with the requirements of this 
     section and section 303, as necessary, during the 3-year 
     period of the plan.

       CHAPTER 2--ALLOCATIONS TO LOCAL WORKFORCE INVESTMENT AREAS

     SEC. 306. WITHIN STATE ALLOCATIONS.

       (a) Reservations for State Activities.--
       (1) Adult employment and training activities, dislocated 
     worker employment and training activities, and youth 
     activities.--The Governor of a State shall reserve not more 
     than 15 percent of each of the amounts allotted to the State 
     under paragraphs (1)(B), (2)(B), and (3)(C)(ii) of section 
     302(b) for a fiscal year for statewide workforce investment 
     activities described in subsections (b)(2) and (c) of section 
     314.
       (2) Statewide rapid response activities.--The Governor of 
     the State shall reserve not more than 25 percent of the total 
     amount allotted to the State under section 302(b)(2)(B) for a 
     fiscal year for statewide rapid response activities 
     described in section 314(b)(1).
       (b) Within State Allocation.--
       (1) Allocation.--The Governor of the State shall allocate 
     to the local areas the funds that are allotted to the State 
     under section 302(b) and are not reserved under subsection 
     (a) for the purpose of providing employment and training 
     activities to eligible participants pursuant to section 315 
     and youth activities to eligible participants pursuant to 
     section 316.
       (2) Methods.--The State, acting in accordance with the 
     State plan, and after consulting with chief elected officials 
     in the local areas, shall allocate--
       (A) the funds that are allotted to the State for adult 
     employment and training activities under section 302(b)(1)(B) 
     and are not reserved under subsection (a)(1), in accordance 
     with paragraph (3) or (4);
       (B) the funds that are allotted to the State for dislocated 
     worker employment and training activities under section 
     302(b)(2)(B) and are not reserved under paragraph (1) or (2) 
     of subsection (a), in accordance with paragraph (3); and
       (C) the funds that are allotted to the State for youth 
     activities under section 302(b)(3)(C)(ii) and are not 
     reserved under subsection (a)(1), in accordance with 
     paragraph (3) or (4).
       (3) Adult employment and training activities, dislocated 
     worker employment and training activities, and youth 
     activities formula allocations.--
       (A) Adult employment and training activities.--In 
     allocating the funds described in paragraph (2)(A) to local 
     areas, a State may allocate--
       (i) 33\1/3\ percent of the funds on the basis described in 
     section 302(b)(1)(B)(ii)(I);
       (ii) 33\1/3\ percent of the funds on the basis described in 
     section 302(b)(1)(B)(ii)(II); and
       (iii) 33\1/3\ percent of the funds on the basis described 
     in section 302(b)(1)(B)(ii)(III).
       (B) Dislocated worker employment and training activities.--
     In allocating the funds described in paragraph (2)(B) to 
     local areas, a State shall allocate--
       (i) 33\1/3\ percent of the funds on the basis described in 
     section 302(b)(2)(B)(ii)(I);
       (ii) 33\1/3\ percent of the funds on the basis described in 
     section 302(b)(2)(B)(ii)(II); and
       (iii) 33\1/3\ percent of the funds on the basis described 
     in section 302(b)(2)(B)(ii)(III).
       (C) Youth activities.--In allocating the funds described in 
     paragraph (2)(C) to local areas, a State may allocate--
       (i) 33\1/3\ percent of the funds on the basis described in 
     section 302(b)(3)(C)(ii)(I);
       (ii) 33\1/3\ percent of the funds on the basis described in 
     section 302(b)(3)(C)(ii)(II); and
       (iii) 33\1/3\ percent of the funds on the basis described 
     in section 302(b)(3)(C)(ii)(III).
       (D) Application.--For purposes of carrying out 
     subparagraphs (A), (B), and (C), and subparagraphs (A) and 
     (B) of paragraph (4)--
       (i) references in section 302(b) to a State shall be deemed 
     to be references to a local area; and
       (ii) references in section 302(b) to all States shall be 
     deemed to be references to all local areas in the State 
     involved.
       (4) Adult employment and training and youth discretionary 
     allocations.--
       (A) Adult employment and training activities.--In lieu of 
     making the allocation described in paragraph (3)(A), in 
     allocating the funds described in paragraph (2)(A) to local 
     areas, a State may distribute--
       (i) a portion equal to not less than 70 percent of the 
     funds in accordance with paragraph (3)(A); and
       (ii) the remaining portion of the funds on the basis of a 
     formula that--

       (I) takes into consideration factors relating to excess 
     poverty in local areas or excess unemployment above the State 
     average in local areas; and

       (II) was developed by the statewide partnership and 
     approved by the Secretary as part of the State plan.

       (B) Youth activities.--In lieu of making the allocation 
     described in paragraph (3)(C), in allocating the funds 
     described in paragraph (2)(C) to local areas, a State may 
     distribute--
       (i) a portion equal to not less than 70 percent of the 
     funds in accordance with paragraph (3)(C); and
       (ii) the remaining portion of the funds on the basis of a 
     formula that--

       (I) takes into consideration factors relating to excess 
     youth poverty in local areas or excess unemployment above the 
     State average in local areas; and
       (II) was developed by the statewide partnership and 
     approved by the Secretary as part of the State plan.

       (5) Limitation.--
       (A) In general.--Of the amount allocated to a local area 
     under this subsection for a fiscal year--
       (i) not more than 15 percent of the amount allocated under 
     paragraph (3)(A) or (4)(A);
       (ii) not more than 15 percent of the amount allocated under 
     paragraph (3)(B); and
       (iii) not more than 15 percent of the amount allocated 
     under paragraph (3)(C) or (4)(B),

     may be used by the local partnership for the administrative 
     cost of carrying out local workforce investment activities 
     described in section 315 or 316.
       (B) Use of funds.--Funds made available for administrative 
     costs under subparagraph (A) may be used for the 
     administrative cost of any of the local workforce investment 
     activities described in sections 315 and 316, regardless of 
     whether the funds were allocated under the provisions 
     described in clause (i), (ii), or (iii) of subparagraph (A).
       (C) Regulations.--The Secretary, after consulting with the 
     Governors, shall develop and issue regulations that define 
     the term ``administrative cost'' for purposes of this title.
       (6) Transfer authority.--A local partnership may transfer, 
     if such a transfer is approved by the Governor, not more than 
     20 percent of the funds allocated to the local area under 
     paragraph (3)(A) or (4)(A), and 20 percent of the funds 
     allocated to the local area under paragraph (3)(B), for a 
     fiscal year between--
       (A) adult employment and training activities; and
       (B) dislocated worker employment and training activities.
       (7) Fiscal authority.--
       (A) Fiscal agent.--The chief elected official in a local 
     area shall serve as the fiscal agent for, and shall be liable 
     for any misuse of, the funds allocated to the local area 
     under this section, unless the chief elected official reaches 
     an agreement with the Governor for the Governor to act as the 
     fiscal agent and bear such liability.
       (B) Disbursal.--The fiscal agent shall disburse such funds 
     for workforce investment activities at the direction of the 
     local partnership, pursuant to the requirements of this 
     title, if the direction does not violate a provision of this 
     Act. The fiscal agent shall disburse funds immediately on 
     receiving such direction from the local partnership.

     SEC. 307. LOCAL WORKFORCE INVESTMENT AREAS.

       (a) Designation of Areas.--
       (1) In general.--Except as provided in subsection (b) and 
     paragraph (2), the Governor shall designate local workforce 
     investment areas in the State, in accordance with the State 
     plan requirements described in section 304(b)(5).
       (2) Automatic designation.--
       (A) In general.--The Governor of the State shall approve a 
     request for designation as a local area from any unit of 
     general local government with a population of 500,000 or 
     more, if the designation meets the State plan requirements 
     described in section 304(b)(5).
       (B) Large counties.--A county with a population of 500,000 
     or more may request such designation only with the agreement 
     of the political subdivisions within the county with 
     populations of 200,000 or more.
       (C) Large political subdivisions.--Single units of general 
     local government with populations of 200,000 or more that are 
     service delivery areas on the date of enactment of this 
     Act shall have an automatic right to request designation 
     as local areas under this section.
       (3) Permanent designation.--Once the boundaries for a local 
     area are determined under this section in accordance with the 
     State plan, the boundaries shall not change except with the 
     approval of the Governor.

[[Page S3982]]

       (b) Small States.--The Governor of any State determined to 
     be eligible to receive a minimum allotment under paragraph 
     (1), (2), or (3) of section 302(b) for the first year covered 
     by the State plan may designate the State as a single State 
     local area for the purposes of this title. The Governor shall 
     identify the State as a local area under section 304(b)(5), 
     in lieu of designating local areas as described in 
     subparagraphs (A), (B), and (C) of section 304(b)(5).

     SEC. 308. LOCAL WORKFORCE INVESTMENT PARTNERSHIPS AND YOUTH 
                   PARTNERSHIPS.

       (a) Establishment of Local Partnership.--There shall be 
     established in each local area of a State, and certified by 
     the Governor of the State, a local workforce investment 
     partnership.
       (b) Role of Local Partnership.--The primary role of the 
     local partnership shall be to set policy for the portion of 
     the statewide workforce investment system within the local 
     area, including--
       (1) ensuring that the activities authorized under this 
     subtitle and carried out in the local area meet local 
     performance measures that include high academic and skill 
     measures;
       (2) ensuring that the activities meet the needs of 
     employers and jobseekers; and
       (3) ensuring the continuous improvement of the system.
       (c) Membership of Local Partnership.--
       (1) State criteria.--The Governor of the State shall 
     establish criteria for the appointment of members of the 
     local partnerships for local areas in the State in accordance 
     with the requirements of paragraph (2). Information 
     identifying such criteria shall be included in the State 
     plan, as described in section 304(b)(6).
       (2) Composition.--Such criteria shall require, at a 
     minimum, that the membership of each local partnership--
       (A) shall include--
       (i) a majority of members who--

       (I) are representatives of business in the local area;
       (II) are owners of businesses, chief executives or 
     operating officers of private businesses, and other business 
     executives or employers with optimum policymaking or hiring 
     authority;
       (III) represent businesses with employment opportunities 
     that reflect the employment opportunities of the local area; 
     and
       (IV) are appointed from among individuals nominated by 
     local business organizations and business trade associations;

       (ii) chief officers representing local postsecondary 
     educational institutions, representatives of vocational 
     education providers, and representatives of adult education 
     providers;
       (iii) chief officers representing labor organizations (for 
     a local area in which such representatives reside), nominated 
     by local labor federations, or (for a local area in which 
     such representatives do not reside) other representatives of 
     employees; and
       (iv) chief officers representing economic development 
     agencies, including private sector economic development 
     entities;
       (B) may include chief officers who have policymaking 
     authority, from one-stop partners who have entered into an 
     operating agreement described in section 311(c) to 
     participate in the one-stop customer service system in the 
     local area; and
       (C) may include such other individuals or representatives 
     of entities as the chief elected official in the local area 
     may determine to be appropriate.
       (3) Chairperson.--The local partnership shall elect a 
     chairperson from among the members of the partnership 
     described in paragraph (2)(A)(i).
       (d) Appointment and Certification of Local Partnership.--
       (1) Appointment of local partnership members and assignment 
     of responsibilities.--
       (A) In general.--The chief elected official in a local area 
     is authorized to appoint the members of the local partnership 
     for such area, in accordance with the State criteria 
     established under subsection (c).
       (B) Multiple units of local government in area.--
       (i) In general.--In a case in which a local 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 
     partnership from the individuals nominated or recommended to 
     be such members in accordance with the criteria established 
     under subsection (c); and
       (II) in carrying out any other responsibilities assigned to 
     such officials under this subtitle.

       (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 partnership from individuals so 
     nominated or recommended.
       (2) Certification.--
       (A) In general.--The Governor shall annually certify 1 
     local partnership for each local area in the State.
       (B) Criteria.--Such certification shall be based on 
     criteria established under subsection (c) and, for a second 
     or subsequent certification, the extent to which the local 
     partnership has ensured that workforce investment activities 
     carried out in the local area have enabled the local area to 
     meet the local performance measures required under section 
     321(c).
       (C) Failure to achieve certification.--Failure of a local 
     partnership to achieve certification shall result in 
     reappointment and certification of another local partnership 
     for the local area pursuant to the process described in 
     paragraph (1) and this paragraph.
       (3) Decertification.--
       (A) In general.--Notwithstanding paragraph (2), the 
     Governor may decertify a local partnership, at any time after 
     providing notice and an opportunity for comment, for--
       (i) fraud or abuse; or
       (ii) failure to carry out the functions specified for the 
     local partnership in paragraphs (1) through (5) of subsection 
     (e).
       (B) Plan.--If the Governor decertifies a local partnership 
     for a local area, the Governor may require that a local 
     partnership be appointed and certified for the local area 
     pursuant to a plan developed by the Governor in consultation 
     with the chief elected official in the local area and in 
     accordance with the criteria established under subsection 
     (c).
       (4) Exception.--Notwithstanding subsection (c) and 
     paragraphs (1) and (2), if a State described in section 
     307(b) designates the State as a local area in the State 
     plan, the Governor may designate the statewide partnership 
     described in section 303 to carry out any of the functions 
     described in subsection (e).
       (e) Functions of Local Partnership.--The functions of the 
     local partnership shall include--
       (1) developing and submitting a local plan as described in 
     section 309 in partnership with the appropriate chief elected 
     official;
       (2) appointing, certifying, or designating one-stop 
     partners and one-stop customer service center operators, 
     pursuant to the criteria specified in the local plan;
       (3) conducting oversight with respect to the one-stop 
     customer service system;
       (4) modifying the list of eligible providers of training 
     services pursuant to subsections (b)(3)(B) and (c)(2)(B) of 
     section 312;
       (5) setting local performance measures pursuant to section 
     312(b)(2)(D)(ii);
       (6) analyzing and identifying--
       (A) current and projected local employment opportunities; 
     and
       (B) the skills necessary to obtain such local employment 
     opportunities;
       (7) coordinating the workforce investment activities 
     carried out in the local area with economic development 
     strategies and developing other employer linkages with such 
     activities; and
       (8) assisting the Governor in developing the statewide 
     labor market information system described in section 15(e) of 
     the Wagner-Peyser Act.
       (f) Sunshine Provision.--The local partnership shall make 
     available to the public, on a regular basis through open 
     meetings, information regarding the activities of the local 
     partnership, including information regarding membership, the 
     appointment of one-stop partners, the designation and 
     certification of one-stop customer service center operators, 
     and the award of grants to eligible providers of youth 
     activities.
       (g) Other Activities of Local Partnership.--
       (1) Limitation.--
       (A) In general.--Except as provided in subparagraph (B), no 
     local partnership may directly carry out or enter into a 
     contract for a training service described in section 
     315(c)(3).
       (B) Waivers.--The Governor of the State in which the local 
     partnership is located may grant to the local partnership a 
     written waiver of the prohibition set forth in subparagraph 
     (A), if the local partnership provides substantial evidence 
     that a private or public entity is not available to provide 
     the training service and that the activity is necessary to 
     provide an employment opportunity described in the local plan 
     described in section 309.
       (2) Conflict of interest.--No member of a local partnership 
     may--
       (A) vote on a matter under consideration by the local 
     partnership--
       (i) regarding the provision of services by such member (or 
     by an organization that such member represents); or
       (ii) that would provide direct financial benefit to such 
     member or the immediate family of such member; or
       (B) engage in any other activity determined by the Governor 
     to constitute a conflict of interest as specified in the 
     State plan.
       (h) Technical Assistance.--If a local area fails to meet 
     established State or local performance measures, the Governor 
     shall provide technical assistance to the local partnership 
     involved to improve the performance of the local area.
       (i) Youth Partnership.--
       (1) Establishment.--There shall be established in each 
     local area of a State, a youth partnership appointed by the 
     local partnership, in cooperation with the chief elected 
     official, in the local area.
       (2) Membership.--The membership of each youth partnership--
       (A) shall include--
       (i) 1 or more members of the local partnership;
       (ii) representatives of youth service agencies, including 
     juvenile justice agencies;
       (iii) representatives of local public housing authorities;
       (iv) parents of youth seeking assistance under this 
     subtitle;
       (v) individuals, including former participants, and 
     representatives of organizations, that have experience 
     relating to youth activities; and
       (vi) representatives of the Job Corps, as appropriate; and
       (B) may include such other individuals as the chairperson 
     of the local partnership, in cooperation with the chief 
     elected official, determines to be appropriate.
       (3) Duties.--The duties of the youth partnership include--
       (A) the development of the portions of the local plan 
     relating to youth, as determined by the chairperson of the 
     local partnership;
       (B) awarding grants to, and conducting oversight with 
     respect to, eligible providers of youth activities, as 
     described in section 313, in the local area;
       (C) coordinating youth activities in the local area; and

[[Page S3983]]

       (D) other duties determined to be appropriate by the 
     chairperson of the local partnership.

     SEC. 309. LOCAL PLAN.

       (a) In General.--Each local partnership shall develop and 
     submit to the Governor a comprehensive 3-year local plan 
     (referred to in this title as the ``local plan''), in 
     partnership with the appropriate chief elected official. The 
     local plan shall be consistent with the State plan.
       (b) Contents.--The local plan shall include--
       (1) an identification of the needs of the local area with 
     regard to current and projected employment opportunities;
       (2) an identification of the job skills necessary to obtain 
     such employment opportunities;
       (3) a description of the activities to be used under this 
     subtitle to link local employers and local jobseekers;
       (4) an identification and assessment of the type and 
     availability of adult and dislocated worker employment and 
     training activities in the local area;
       (5) an identification of successful eligible providers of 
     youth activities in the local area;
       (6) a description of the measures that will be taken by the 
     local area to assure coordination of and avoid duplication 
     among the programs and activities described in section 
     304(b)(8);
       (7) a description of the manner in which the local 
     partnership will coordinate activities carried out under this 
     subtitle in the local area with such activities carried out 
     in neighboring local areas;
       (8) a description of the competitive process to be used to 
     award grants in the local area for activities carried out 
     under this subtitle;
       (9) information describing local performance measures for 
     the local area that are based on the performance measures in 
     the State plan;
       (10) in accordance with the State plan, a description of 
     the criteria that the chief elected official in the local 
     area and the local partnership will use to appoint, 
     designate, or certify, and to conduct oversight with respect 
     to, one-stop customer service center systems in the local 
     area; and
       (11) such other information as the Governor may require.
       (c) Plan Submission and Approval.--A local plan submitted 
     to the Governor under this section shall be considered to be 
     approved by the Governor at the end of the 60-day period 
     beginning on the day the Governor receives the plan, unless 
     the Governor makes a written determination during the 60-day 
     period that--
       (1) entities conducting evaluations conducted under section 
     321(e) in the local area have found deficiencies in 
     activities carried out under this subtitle and the local area 
     has not made acceptable progress in implementing corrective 
     measures to address the deficiencies; or
       (2) the plan does not comply with this title.
       (d) Lack of Agreement.--If the local partnership and the 
     appropriate chief elected official in the local area cannot 
     agree on the local plan after making a reasonable effort, the 
     Governor may develop the local plan.

        CHAPTER 3--WORKFORCE INVESTMENT ACTIVITIES AND PROVIDERS

     SEC. 311. IDENTIFICATION AND OVERSIGHT OF ONE-STOP PARTNERS 
                   AND ONE-STOP CUSTOMER SERVICE CENTER OPERATORS.

       (a) In General.--Consistent with the State plan, the chief 
     elected official and the local partnership shall develop and 
     implement operating agreements described in subsection (c) to 
     appoint one-stop partners, shall designate or certify one-
     stop customer service center operators, and shall conduct 
     oversight with respect to the one-stop customer service 
     system, in the local area.
       (b) One-Stop Partners.--
       (1) Designated partners.--
       (A) In general.--Each entity that carries out a program, 
     services, or activities described in subparagraph (B) shall 
     make available to participants, through a one-stop customer 
     service center, the services described in section 315(c)(2) 
     that are applicable to such program, and shall participate in 
     the operation of such center as a party to the agreement 
     described in subsection (c).
       (B) Programs; services; activities.--The programs, 
     services, and activities referred to in subparagraph (A) 
     consist of--
       (i) core services authorized under this subtitle;
       (ii) other activities authorized under this title;
       (iii) activities authorized under title I and title II;
       (iv) programs authorized under the Wagner-Peyser Act (29 
     U.S.C. 49 et seq.);
       (v) programs authorized under title I of the Rehabilitation 
     Act of 1973 (29 U.S.C. 729 et seq.);
       (vi) programs authorized under section 403(a)(5) of the 
     Social Security Act (42 U.S.C. 603(a)(5)) (as added by 
     section 5001 of the Balanced Budget Act of 1997);
       (vii) programs authorized under title V of the Older 
     Americans Act of 1965 (42 U.S.C. 3056 et seq.);
       (viii) activities authorized under chapter 2 of title II of 
     the Trade Act of 1974 (19 U.S.C. 2271 et seq.);
       (ix) activities authorized under chapter 41 of title 38, 
     United States Code;
       (x) activities carried out by the Bureau of Apprenticeship 
     and Training;
       (xi) training activities carried out by the Department of 
     Housing and Urban Development; and
       (xii) programs authorized under State unemployment 
     compensation laws and the Federal unemployment insurance 
     program under titles III, IX, and XII of the Social Security 
     Act (42 U.S.C. 501 et seq., 1101 et seq., and 1321 et seq.).
       (2) Additional partners.--
       (A) In general.--In addition to the entities described in 
     paragraph (1), other entities that carry out human resource 
     programs may make available to participants through a one-
     stop customer service center the services described in 
     section 315(c)(2) that are applicable to such program, and 
     participate in the operation of such centers as a party to 
     the agreement described in subsection (c), if the local 
     partnership and chief elected official involved approve such 
     participation.
       (B) Programs.--The programs referred to in subparagraph (A) 
     include--
       (i) programs authorized under part A of title IV of the 
     Social Security Act;
       (ii) programs authorized under section 6(d)(4) of the Food 
     Stamp Act of 1977 (7 U.S.C. 2015(d)(4));
       (iii) work programs authorized under section 6(o) of the 
     Food Stamp Act of 1997 (7 U.S.C. 2015 (o)); and
       (iv) other appropriate Federal, State, or local programs, 
     including programs in the private sector.
       (c) Operating Agreements.--
       (1) In general.--The one-stop customer service center 
     operator selected pursuant to subsection (d) for a one-stop 
     customer service center shall enter into a written agreement 
     with the local partnership and one-stop partners described in 
     subsection (b) concerning the operation of the center. Such 
     agreement shall be subject to the approval of the chief 
     elected official and the local partnership.
       (2) Contents.--The written agreement required under 
     paragraph (1) shall contain--
       (A) provisions describing--
       (i) the services to be provided through the center;
       (ii) how the costs of such services and the operating costs 
     of the system will be funded,
       (iii) methods for referral of individuals between the one-
     stop customer service center operators and the one-stop 
     partners, for the appropriate services and activities;
       (iv) the monitoring and oversight of activities carried out 
     under the agreement; and
       (v) the duration of the agreement and the procedures for 
     amending the agreement during the term of the agreement; and
       (B) such other provisions, consistent with the requirements 
     of this title, as the parties to the agreement determine to 
     be appropriate.
       (d) One-Stop Customer Service Center Operators.--
       (1) In general.--To be eligible to receive funds made 
     available under this subtitle to operate a one-stop customer 
     service center, an entity shall--
       (A) be designated or certified as a one-stop customer 
     service center operator, as described in subsection (a); and
       (B) be a public or private entity, or consortium of 
     entities, of demonstrated effectiveness located in the local 
     area, which entity or consortium may include an institution 
     of higher education (as defined in section 481 of the Higher 
     Education Act of 1965 (20 U.S.C. 1088), a local employment 
     service office established under the Wagner-Peyser Act (29 
     U.S.C. 49 et seq.), a local government agency, a private for-
     profit entity, a private nonprofit entity, or other 
     interested entity, of demonstrated effectiveness.
       (2) Exception.--Elementary schools and secondary schools 
     shall not be eligible for designation or certification as 
     one-stop customer service center operators, except that 
     nontraditional secondary schools and area vocational 
     education schools shall be eligible for such designation or 
     certification.
       (e) Established One-Stop Customer Service Systems.--For a 
     local area in which a one-stop customer service system has 
     been established prior to the date of enactment of this Act, 
     the local partnership, the chief elected official, and the 
     Governor may agree to appoint, designate, or certify the one-
     stop partners and one-stop customer service center operators 
     of such system, for purposes of this section.
       (f) Oversight.--The local partnership shall conduct 
     oversight with respect to the one-stop customer service 
     center system and may terminate for cause the eligibility of 
     such a partner or operator to provide activities through or 
     operate a one-stop customer service center.

     SEC. 312. DETERMINATION AND IDENTIFICATION OF ELIGIBLE 
                   PROVIDERS OF TRAINING SERVICES BY PROGRAM.

       (a) General Eligibility Requirements.--
       (1) In general.--Except as provided in subsection (e), to 
     be eligible to receive funds made available under section 306 
     to provide training services described in section 315(c)(3) 
     (referred to in this title as ``training services'') and be 
     identified as an eligible provider of such services, a 
     provider of such services shall meet the requirements of this 
     section.
       (2) Providers.--To be eligible to receive the funds, the 
     provider shall be--
       (A) a postsecondary educational institution that--
       (i) is eligible to receive Federal funds under title IV of 
     the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.); 
     and
       (ii) provides a program that leads to an associate degree, 
     baccalaureate degree, or certificate; or
       (B) another public or private provider of a program.
       (b) Initial Determination and Identification.--
       (1) Postsecondary educational institutions.--To be eligible 
     to receive funds as described in subsection (a), an 
     institution described in subsection (a)(2)(A) shall submit an 
     application at such time, in such manner, and containing such 
     information as the designated State agency described in 
     subsection (f) may require, after consultation with the local 
     partnerships in the State. On submission of the application, 
     the institution shall automatically be initially eligible to 
     receive such funds for the program described in subsection 
     (a)(2)(A).
       (2) Other providers.--
       (A) Procedure.--The Governor, in consultation with the 
     local partnerships in the State, shall establish a procedure 
     for determining the initial eligibility of providers 
     described in subsection (a)(2)(B) to receive such funds for 
     specified programs. The procedure shall require a

[[Page S3984]]

     provider of a program to meet minimum acceptable levels of 
     performance based on--
       (i) performance criteria relating to the rates, 
     percentages, increases, and costs described in subparagraph 
     (C) for the program, as demonstrated using verifiable 
     program-specific performance information described in 
     subparagraph (C) and submitted to the designated State 
     agency, as required under subparagraph (C); and
       (ii) performance criteria relating to any characteristics 
     for which local partnerships request the submission of 
     information under subparagraph (D) for the program, as 
     demonstrated using the information submitted.
       (B) Minimum levels.--The Governor shall--
       (i) consider, in determining such minimum levels--

       (I) criteria relating to the economic, geographic, and 
     demographic factors in the local areas in which the provider 
     provides the program; and
       (II) the characteristics of the population served by such 
     provider through the program; and

       (ii) verify the minimum levels of performance by using 
     quarterly records described in section 321.
       (C) Application.--To be initially eligible to receive funds 
     as described in subsection (a), a provider described in 
     subsection (a)(2)(B) shall submit an application at such 
     time, in such manner, and containing such information as the 
     designated State agency may require, including performance 
     information on--
       (i) program completion rates for participants in the 
     applicable program conducted by the provider;
       (ii) the percentage of the graduates of the program placed 
     in unsubsidized employment in an occupation related to the 
     program conducted;
       (iii) retention rates of the graduates in unsubsidized 
     employment--

       (I) 6 months after completion of the program; and
       (II) 12 months after completion of the program;

       (iv) the wages received by the graduates placed in 
     unsubsidized employment after the completion of participation 
     in the program--

       (I) on the first day of the employment;
       (II) 6 months after the first day of the employment; and
       (III) 12 months after the first day of the employment;

       (v) where appropriate, the rates of licensure or 
     certification of the graduates, attainment of academic 
     degrees or equivalents, or attainment of other measures of 
     skill; and
       (vi) program cost per participant in the program.
       (D) Additional information.--
       (i) In general.--In addition to the performance information 
     described in subparagraph (C), the local partnerships in the 
     State involved may require that a provider submit, to the 
     local partnerships and to the designated State agency, other 
     performance information relating to the program to be 
     initially identified as an eligible provider of training 
     services, including information regarding the ability of the 
     provider to provide continued counseling and support 
     regarding the workplace to the graduates, for not less than 
     12 months after the graduation involved.
       (ii) Higher levels of performance eligibility.--The local 
     partnership may require higher levels of performance than the 
     minimum levels established under subparagraph (A)(i) for 
     initial eligibility to receive funds as described in 
     subsection (a).
       (3) List of eligible providers by program.--
       (A) In general.--The designated State agency, after 
     reviewing the performance information described in paragraph 
     (2)(C) and any information required to be submitted under 
     paragraph (2)(D) and using the procedure described in 
     paragraph (2)(B), shall--
       (i) identify eligible providers of training services 
     described in subparagraphs (A) and (B) of subsection (a)(2), 
     including identifying the programs of the providers through 
     which the providers may offer the training services; and
       (ii) compile a list of the eligible providers, and the 
     programs, accompanied by the performance information 
     described in paragraph (2)(C) and any information required to 
     be submitted under paragraph (2)(D) for each such provider 
     described in subsection (a)(2)(B).
       (B) Local modification.--The local partnership may modify 
     such list by reducing the number of eligible providers 
     listed, to ensure that the eligible providers carry out 
     programs that provide skills that enable participants to 
     obtain local employment opportunities.
       (c) Subsequent Eligibility.--
       (1) Information and criteria.--To be eligible to continue 
     to receive funds as described in subsection (a) for a 
     program, a provider shall--
       (A) submit the performance information described in 
     subsection (b)(2)(C) and any information required to be 
     submitted under subsection (b)(2)(D) annually to the 
     designated State agency at such time and in such manner as 
     the designated State agency may require for the program;
       (B) annually meet the performance criteria described in 
     subclause (I) and (if applicable) subclause (II) of 
     subsection (b)(2)(B)(i) for the program; and
       (C) annually meet local performance measures, as 
     demonstrated utilizing quarterly records described in section 
     321, for the program.
       (2) List of eligible providers by program.--
       (A) In general.--The designated State agency, after 
     reviewing the performance information and any other 
     information submitted under paragraph (1) and using the 
     procedure described in subsection (b)(2)(A), shall identify 
     eligible providers and programs, and compile a list of the 
     providers and programs, as described in subsection (b)(3), 
     accompanied by the performance information and other 
     information for each such provider.
       (B) Local modification.--The local partnership may modify 
     such list by reducing the number of eligible providers 
     listed, to ensure that the eligible providers carry out 
     programs that provide skills that enable participants to 
     obtain local employment opportunities.
       (3) Availability.--Such list and information shall be made 
     widely available to participants in employment and training 
     activities funded under this subtitle, and to others, through 
     the one-stop customer service system described in section 
     315(b).
       (d) Enforcement.--
       (1) Accuracy of information.--If the designated State 
     agency, after consultation with the local partnership 
     involved, 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 provider to receive funds 
     described in subsection (a) for a period of time, but not 
     less than 2 years.
       (2) Compliance with criteria or requirements.--If the 
     designated State agency, after consultation with the local 
     partnership, determines that an eligible provider or a 
     program of training services carried out by an eligible 
     provider fails to meet the required performance criteria and 
     performance measures described in subparagraphs (B) and (C) 
     of subsection (c)(1), or materially violates any provision of 
     this title, including the regulations promulgated to 
     implement this title, the agency may terminate the 
     eligibility of the provider to receive funds described in 
     subsection (a) for such program or take such other action as 
     the agency determines to be appropriate.
       (3) Repayment.--Any provider whose eligibility is 
     terminated under paragraph (1) or (2) for a program shall be 
     liable for repayment of funds described in subsection (a) 
     received for the program during any period of noncompliance 
     described in such paragraph.
       (4) Appeal.--The Governor shall establish a procedure for 
     an eligible provider to appeal a determination by the 
     designated State agency that results in termination of 
     eligibility under this subsection. Such procedure shall 
     provide an opportunity for a hearing and prescribe 
     appropriate time limits to ensure prompt resolution of the 
     appeal.
       (e) On-the-Job Training Exception.--
       (1) In general.--Providers of on-the-job training shall not 
     be subject to the requirements of subsections (a) through 
     (d).
       (2) Collection and dissemination of information.--A one-
     stop customer service center operator in a local area shall 
     collect such performance information from on-the-job training 
     providers as the Governor may require, and disseminate such 
     information through the one-stop customer service system.
       (f) Administration.--The Governor shall designate a State 
     agency to collect and disseminate the performance information 
     described in subsection (b)(2)(C) and any information 
     required to be submitted under subsection (b)(2)(D) and carry 
     out other duties described in this section.

     SEC. 313. IDENTIFICATION OF ELIGIBLE PROVIDERS OF YOUTH 
                   ACTIVITIES.

       The youth partnership is authorized to award grants on a 
     competitive basis, based on the criteria contained in the 
     State plan and local plan, to providers of youth activities, 
     and conduct oversight with respect to such providers, in the 
     local area.

     SEC. 314. STATEWIDE WORKFORCE INVESTMENT ACTIVITIES.

       (a) In General.--Funds reserved by a Governor for a State--
       (1) under section 306(a)(2) shall be used to carry out the 
     statewide rapid response activities described in subsection 
     (b)(1); and
       (2) under section 306(a)(1)--
       (A) shall be used to carry out the statewide workforce 
     investment activities described in subsection (b)(2); and
       (B) may be used to carry out any of the statewide workforce 
     investment activities described in subsection (c),

     regardless of whether the funds were allotted to the State 
     under paragraph (1), (2), or (3) of section 302(b).
       (b) Required Statewide Workforce Investment Activities.--
       (1) Statewide rapid response activities.--A State shall use 
     funds reserved under section 306(a)(2) to carry out statewide 
     rapid response activities, which shall include--
       (A) provision of rapid response activities, carried out in 
     local areas by the State, working in conjunction with the 
     local partnership and the chief elected official in the local 
     area; and
       (B) provision of additional assistance to local areas that 
     experience disasters, mass layoffs or plant closings, or 
     other events that precipitate substantial increases in the 
     number of unemployed individuals, carried out in the local 
     areas by the State, working in conjunction with the local 
     partnership and the chief elected official in the local 
     areas.
       (2) Other required statewide workforce investment 
     activities.--A State shall use funds reserved under section 
     306(a)(1) to carry out other statewide workforce investment 
     activities, which shall include--
       (A) disseminating the list of eligible providers of 
     training services, including eligible providers of 
     nontraditional training services, and the performance 
     information as described in subsections (b) and (c) of 
     section 312, and a list of eligible providers of youth 
     activities described in section 313;
       (B) conducting evaluations, under section 321(e), of 
     activities authorized in this section, section 315, and 
     section 316, in coordination with the activities carried out 
     under section 368;
       (C) providing incentive grants to local areas for regional 
     cooperation among local partnerships, for local coordination 
     and nonduplication

[[Page S3985]]

     of activities carried out under this Act, and for comparative 
     performance by local areas on the local performance measures 
     described in section 321(c);
       (D) providing technical assistance to local areas that fail 
     to meet local performance measures;
       (E) assisting in the establishment and operation of a one-
     stop customer service system; and
       (F) operating a fiscal and management accountability 
     information system under section 321(f).
       (c) Allowable Statewide Workforce Investment Activities.--
       (1) In general.--A State may use funds reserved under 
     section 306(a)(1) to carry out additional statewide workforce 
     investment activities, which may include--
       (A) subject to paragraph (2), administration by the State 
     of the workforce investment activities carried out under this 
     subtitle;
       (B) identification and implementation of incumbent worker 
     training programs, which may include the establishment and 
     implementation of an employer loan program;
       (C) carrying out other activities authorized in section 315 
     that the State determines to be necessary to assist local 
     areas in carrying out activities described in subsection (c) 
     or (d) of section 315 through the statewide workforce 
     investment system; and
       (D) carrying out, on a statewide basis, activities 
     described in section 316.
       (2) Limitation.--
       (A) In general.--Of the funds allotted to a State under 
     section 302(b) and reserved under section 306(a)(1) for a 
     fiscal year--
       (i) not more than 5 percent of the amount allotted under 
     section 302(b)(1);
       (ii) not more than 5 percent of the amount allotted under 
     section 302(b)(2); and
       (iii) not more than 5 percent of the amount allotted under 
     section 302(b)(3),

     may be used by the State for the administration of statewide 
     workforce investment activities carried out under this 
     section.
       (B) Use of funds.--Funds made available for administrative 
     costs under subparagraph (A) may be used for the 
     administrative cost of any of the statewide workforce 
     investment activities, regardless of whether the funds were 
     allotted to the State under paragraph (1), (2), or (3) of 
     section 302(b).

     SEC. 315. LOCAL EMPLOYMENT AND TRAINING ACTIVITIES.

       (a) In General.--Funds received by a local area under 
     paragraph (3)(A) or (4)(A), as appropriate, of section 
     306(b), and funds received by the local area under section 
     306(b)(3)(B)--
       (1) shall be used to carry out employment and training 
     activities described in subsection (c) for adults or 
     dislocated workers, as appropriate; and
       (2) may be used to carry out employment and training 
     activities described in subsection (d) for adults or 
     dislocated workers, as appropriate.
       (b) Establishment of One-Stop Customer Service System.--
       (1) In general.--There shall be established in a State that 
     receives an allotment under section 302 a one-stop customer 
     service system, which--
       (A) shall provide the core services described in subsection 
     (c)(2);
       (B) shall provide access to training services as described 
     in subsection (c)(3);
       (C) shall provide access to the activities (if any) carried 
     out under subsection (d); and
       (D) shall provide access to the information described in 
     section 15 of the Wagner-Peyser Act and all job search, 
     placement, recruitment, and other labor exchange services 
     authorized under the Wagner-Peyser Act (29 U.S.C. 49 et 
     seq.).
       (2) One-stop delivery.--At a minimum, the one-stop customer 
     service system--
       (A) shall make each of the services described in paragraph 
     (1) accessible at not less than 1 physical customer service 
     center in each local area of the State; and
       (B) may also make services described in paragraph (1) 
     available--
       (i) through a network of customer service centers that can 
     provide 1 or more of the services described in paragraph (1) 
     to such individuals; and
       (ii) through a network of eligible one-stop partners--

       (I) in which each partner provides 1 or more of the 
     services to such individuals and is accessible at a customer 
     service center that consists of a physical location or an 
     electronically or technologically linked access point; and
       (II) that assures individuals that information on the 
     availability of core services will be available regardless of 
     where the individuals initially enter the statewide workforce 
     investment system, including information made available 
     through an access point described in subclause (I).

       (c) Required Local Activities.--
       (1) In general.--Funds received by a local area under 
     paragraph (3)(A) or (4)(A), as appropriate, of section 
     306(b), and funds received by the local area under section 
     306(b)(3)(B), shall be used--
       (A) to establish a one-stop customer service center 
     described in subsection (b);
       (B) to provide the core services described in paragraph (2) 
     to participants described in such paragraph through the one-
     stop customer service system; and
       (C) to provide training services described in paragraph (3) 
     to participants described in such paragraph.
       (2) Core services.--Funds received by a local area as 
     described in paragraph (1) shall be used to provide core 
     services, which shall be available to all individuals seeking 
     assistance through a one-stop customer service system and 
     shall, at a minimum, include--
       (A) determinations of whether the individuals are eligible 
     to receive activities under this subtitle;
       (B) outreach, intake (which may include worker profiling), 
     and orientation to the information and other services 
     available through the one-stop customer service system;
       (C) initial assessment of skill levels, aptitudes, 
     abilities, and supportive service needs;
       (D) case management assistance, as appropriate;
       (E) job search and placement assistance;
       (F) provision of information regarding--
       (i) local, State, and, if appropriate, regional or 
     national, employment opportunities; and
       (ii) job skills necessary to obtain the employment 
     opportunities;
       (G) provision of performance information on eligible 
     providers of training services as described in section 312, 
     provided by program, and eligible providers of youth 
     activities as described in section 313, eligible providers of 
     adult education as described in title II, eligible providers 
     of postsecondary vocational education activities and 
     vocational education activities available to school dropouts 
     as described in title I, and eligible providers of vocational 
     rehabilitation program activities as described in title I of 
     the Rehabilitation Act of 1973;
       (H) provision of performance information on the activities 
     carried out by one-stop partners, as appropriate;
       (I) provision of information regarding how the local area 
     is performing on the local performance measures described in 
     section 321(c), and any additional performance information 
     provided to the one-stop customer service center by the local 
     partnership;
       (J) provision of accurate information relating to the 
     availability of supportive services, including child care and 
     transportation, available in the local area, and referral to 
     such services, as appropriate;
       (K) provision of information regarding filing claims for 
     unemployment compensation;
       (L) assistance in establishing eligibility for--
       (i) welfare-to-work activities authorized under section 
     403(a)(5) of the Social Security Act (as added by section 
     5001 of the Balanced Budget Act of 1997) available in the 
     local area; and
       (ii) programs of financial aid assistance for training and 
     education programs that are not funded under this Act and are 
     available in the local area; and
       (M) followup services, including counseling regarding the 
     workplace, for participants in workforce investment 
     activities who are placed in unsubsidized employment, for not 
     less than 12 months after the completion of such 
     participation, as appropriate.
       (3) Required training services.--
       (A) Eligible participants.--Funds received by a local area 
     as described in paragraph (1) shall be used to provide 
     training services to individuals--
       (i) who are adults (including dislocated workers);
       (ii) who seek the services;
       (iii)(I) who are unable to obtain employment through the 
     core services; or
       (II) who are employed and who are determined by a one-stop 
     customer service center operator to be in need of such 
     training services in order to gain or retain employment that 
     allows for self-sufficiency;
       (iv) who after an interview, evaluation, or assessment, and 
     case management, have been determined by a one-stop customer 
     service center operator or one-stop partner, as appropriate, 
     to be in need of training services and to have the skills and 
     qualifications, to successfully participate in the selected 
     program of training services;
       (v) who select programs of training services that are 
     directly linked to the employment opportunities in the local 
     area involved or in another area in which the adults 
     receiving such services are willing to relocate;
       (vi) who meet the requirements of subparagraph (B); and
       (vii) who are determined to be eligible in accordance with 
     the priority system, if any, in effect under subparagraph 
     (D).
       (B) Qualification.--
       (i) Requirement.--Except as provided in clause (ii), 
     provision of such training services shall be limited to 
     individuals 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.

       (ii) Reimbursements.--Training services may be provided 
     under this paragraph to an individual who otherwise meets the 
     requirements of this paragraph while an application for a 
     Federal Pell Grant is pending, except that if such individual 
     is subsequently awarded a Federal Pell Grant, appropriate 
     reimbursement shall be made to the local area from such 
     Federal Pell Grant.
       (C) Training services.--Training services may include--
       (i) employment skill training;
       (ii) on-the-job training;
       (iii) job readiness training; and
       (iv) adult education services when provided in combination 
     with services described in clause (i), (ii), or (iii).
       (D) Priority.--In the event that funds are limited within a 
     local area for adult employment and training activities, 
     priority shall be given to disadvantaged adults for 
     receipt of training services provided under this 
     paragraph. The appropriate local partnership and the 
     Governor shall direct the one-stop customer service center 
     operator in the local area with regard to making 
     determinations related to such priority.
       (E) Delivery of services.--Training services provided under 
     this paragraph shall be provided--
       (i) except as provided in section 312(e), through eligible 
     providers of such services identified in accordance with 
     section 312; and
       (ii) in accordance with subparagraph (F).

[[Page S3986]]

       (F) Consumer choice requirements.--
       (i) In general.--Training services provided under this 
     paragraph shall be provided in a manner that maximizes 
     consumer choice in the selection of an eligible provider of 
     such services.
       (ii) Eligible providers.--Each local partnership, through 
     one-stop customer service centers, shall make available--

       (I) the list of eligible providers required under 
     subsection (b)(3) or (c)(2) of section 312, with a 
     description of the programs through which the providers may 
     offer the training services, and a list of the names of on-
     the-job training providers; and
       (II) the performance information on eligible providers of 
     training services as described in section 312.

       (iii) Employment information.--Each local partnership, 
     through one-stop customer service centers, shall make 
     available--

       (I) information regarding local, State, and, if 
     appropriate, regional or national, employment opportunities; 
     and
       (II) information regarding the job skills necessary to 
     obtain the employment opportunities.

       (iv) Individual training accounts.--An individual who is 
     eligible pursuant to subparagraph (A) and seeks training 
     services may select, in consultation with a case manager, an 
     eligible provider of training services from the lists of 
     providers described in clause (ii)(I). Upon such selection, 
     the operator of the one-stop customer service center shall, 
     to the extent practicable, refer such individual to the 
     eligible provider of training services, and arrange for 
     payment for such services through an individual training 
     account.
       (d) Permissible Local Activities.--
       (1) Discretionary one-stop delivery activities.--Funds 
     received by a local area under paragraph (3)(A) or (4)(A), as 
     appropriate, of section 306(b), and funds received by the 
     local area under section 306(b)(3)(B) may be used to provide, 
     through one-stop delivery described in subsection (b)(2)--
       (A) intensive employment-related services for participants 
     in training services;
       (B) customized screening and referral of qualified 
     participants in training services to employment; and
       (C) customized employment-related services to employers.
       (2) Supportive services.--Funds received by the local area 
     as described in paragraph (1) may be used to provide 
     supportive services to participants--
       (A) who are participating in activities described in this 
     section; and
       (B) who are unable to obtain such supportive services 
     through other programs providing such services.
       (3) Needs-related payments.--
       (A) In general.--Funds received by the local area under 
     section 306(b)(3)(B) may be used to provide needs-related 
     payments to dislocated workers who do not qualify for, or 
     have exhausted, unemployment compensation, for the purpose of 
     enabling such individuals to participate in training 
     services.
       (B) Additional eligibility requirements.--In addition to 
     the requirements contained in subparagraph (A), a dislocated 
     worker who has ceased to qualify for unemployment 
     compensation may be eligible to receive needs-related 
     payments under this paragraph only if such worker was 
     enrolled in the training services--
       (i) by the end of the 13th week of the worker's 
     unemployment compensation benefits period for the most recent 
     layoff that resulted in a determination of the worker's 
     eligibility for employment and training activities for 
     dislocated workers under this subtitle; or
       (ii) if later, by the end of the 13th week after the worker 
     is informed that a short-term layoff will exceed 6 months.
       (C) Level of payments.--The level of a needs-related 
     payment made to a dislocated worker under this paragraph 
     shall not exceed the greater of--
       (i) the applicable level of unemployment compensation; or
       (ii) if such worker did not qualify for unemployment 
     compensation, an amount equal to the poverty line, for an 
     equivalent period, which amount shall be adjusted to reflect 
     changes in total family income.

     SEC. 316. LOCAL YOUTH ACTIVITIES.

       (a) Purposes.--The purposes of this section are--
       (1) to provide effective and comprehensive activities to 
     youth seeking assistance in achieving academic and employment 
     success;
       (2) to ensure continuous contact for youth with committed 
     adults;
       (3) to provide opportunities for training to youth;
       (4) to provide continued support services for youth;
       (5) to provide incentives for recognition and achievement 
     to youth; and
       (6) to provide opportunities for youth in activities 
     related to leadership, development, decisionmaking, 
     citizenship, and community service.
       (b) Required Elements.--Funds received by a local area 
     under paragraph (3)(C) or (4)(B) of section 306(b) shall be 
     used to carry out, for youth who seek the activities, 
     activities that--
       (1) consist of the provision of--
       (A) tutoring, study skills training, and instruction, 
     leading to completion of secondary school, including dropout 
     prevention strategies;
       (B) alternative secondary school services;
       (C) summer employment opportunities and other paid and 
     unpaid work experiences, including internships;
       (D) employment skill training, as appropriate;
       (E) community service and leadership development 
     opportunities;
       (F) services described in section 315(c)(2);
       (G) supportive services;
       (H) adult mentoring for the period of participation and a 
     subsequent period, for a total of not less than 12 months; 
     and
       (I) followup services for not less than 12 months after the 
     completion of participation, as appropriate;
       (2) provide--
       (A) preparation for postsecondary educational 
     opportunities, in appropriate cases;
       (B) strong linkages between academic and occupational 
     learning; and
       (C) preparation for unsubsidized employment opportunities, 
     in appropriate cases; and
       (3) involve parents, participants, and other members of the 
     community with experience relating to youth in the design and 
     implementation of the activities.
       (c) Priority.--At a minimum, 50 percent of the funds 
     described in subsection (b) shall be used to provide youth 
     activities to out-of-school youth.
       (d) Prohibitions.--
       (1) No local education curriculum.--No funds described in 
     subsection (b) shall be used to develop or implement local 
     school system education curricula.
       (2) Nonduplication.--No funds described in subsection (b) 
     shall be used to carry out activities that duplicate 
     federally funded activities available to youth in the local 
     area.
       (3) Noninterference and nonreplacement of regular academic 
     requirements.--No funds described in subsection (b) shall be 
     used to provide an activity for youth who are not school 
     dropouts if participation in the activity would interfere 
     with or replace the regular academic requirements of the 
     youth.

                     CHAPTER 4--GENERAL PROVISIONS

     SEC. 321. ACCOUNTABILITY.

       (a) Purpose.--The purpose of this section is to provide 
     comprehensive performance measures to assess the progress of 
     States and local areas (including eligible providers and 
     programs of activities authorized under this subtitle that 
     are made available in the States and local areas), in 
     assisting both employers and jobseekers in meeting their 
     employment needs, in order to ensure an adequate return on 
     the investment of Federal funds for the activities.
       (b) State Performance Measures.--
       (1) In general.--To be eligible to receive an allotment 
     under section 302, a State shall establish, and identify in 
     the State plan, State performance measures. Each State 
     performance measure shall consist of an indicator of 
     performance, referred to in paragraph (2) or (3), and a 
     performance level, referred to in paragraph (4).
       (2) Core indicators of performance.--The State performance 
     measures shall contain indicators of performance, including, 
     at a minimum--
       (A) core indicators of performance for adults, including 
     dislocated workers, participating in activities that are 
     training services, which indicators consist of--
       (i) placement in unsubsidized employment related to the 
     training received through the activities;
       (ii) retention in unsubsidized employment related to the 
     training received through the activities--

       (I) 6 months after completion of participation in the 
     activities; and
       (II) 12 months after completion of participation;

       (iii) wages received by such participants who are placed in 
     unsubsidized employment related to the training received 
     through the activities after completion of participation--

       (I) on the first day of the employment;
       (II) 6 months after the first day of the employment; and
       (III) 12 months after the first day of the employment; and

       (iv) percentage of wage replacement for dislocated workers 
     placed in unsubsidized employment related to the training 
     received through the activities;
       (B) core indicators of performance for adults, including 
     dislocated workers, participating in activities that are core 
     services, which indicators consist of the indicators 
     described in clauses (i) through (iv) of subparagraph (A); 
     and
       (C) core indicators of performance for youth participating 
     in youth activities under section 316, that consist of--
       (i) attainment of secondary school diplomas or their 
     recognized equivalents;
       (ii) attainment of job readiness and employment skills;
       (iii) placement in, retention in, and completion of 
     postsecondary education, advanced training, or an 
     apprenticeship;
       (iv) placement in unsubsidized employment related to the 
     training received through the activities;
       (v) retention in unsubsidized employment related to the 
     training received through the activities--

       (I) 6 months after completion of participation in the 
     activities; and
       (II) 12 months after completion of participation; and

       (vi) wages received by such participants who are placed in 
     unsubsidized employment related to the training received 
     through the activities, after completion of participation--

       (I) on the first day of the employment;
       (II) 6 months after the first day of the employment; and
       (III) 12 months after the first day of the employment.

       (3) Customer satisfaction indicator.--The State performance 
     measures shall contain an indicator of performance with 
     respect to customer satisfaction of employers and 
     participants, which may be measured through surveys conducted 
     after the conclusion of participation in workforce investment 
     activities.
       (4) State levels of performance.--In order to ensure an 
     adequate return on the investment of Federal funds in 
     workforce investment activities, the Secretary and each 
     Governor shall reach agreement on the levels of performance

[[Page S3987]]

     expected to be achieved by the State, on the State 
     performance measures established pursuant to this subsection. 
     In reaching the agreement, the Secretary and Governor shall 
     establish a level of performance for each indicator of 
     performance described in paragraph (2) or (3). Such agreement 
     shall take into account--
       (A) how the levels compare with the levels established by 
     other States, taking into consideration the specific 
     circumstances, including economic circumstances, of each 
     State; and
       (B) the extent to which such levels promote continuous 
     improvement in performance by such State and ensure an 
     adequate return on the investment of Federal funds.
       (5) Populations.--In developing the State performance 
     measures, a State shall develop and identify in the State 
     plan State performance measures for populations that include, 
     at a minimum--
       (A) disadvantaged adults;
       (B) dislocated workers;
       (C) out-of-school youth; and
       (D) individuals with disabilities.
       (c) Local Performance Measures.--
       (1) In general.--Each Governor shall negotiate and reach 
     agreement with the local partnership and the chief elected 
     official in each local area on local performance measures. 
     Each local performance measure shall consist of an indicator 
     of performance referred to in paragraph (2) or (3) of 
     subsection (b), and a performance level referred to in 
     paragraph (2).
       (2) Performance levels.--Based on the expected levels of 
     performance established pursuant to subsection (b)(4), the 
     Governor shall negotiate and reach agreement with the local 
     partnership and the chief elected official in each local area 
     regarding the levels of performance expected to be achieved 
     for the local area on the indicators of performance.
       (3) Populations.--In negotiating and reaching agreement on 
     the local performance measures, the Governor, local 
     partnership, and chief elected official, shall negotiate and 
     reach agreement on local performance measures for populations 
     that include, at a minimum, the populations described in 
     subsection (b)(5). The local partnership shall identify these 
     local performance measures in the local plan.
       (d) Report.--
       (1) In general.--Each State that receives an allotment 
     under section 302 shall annually prepare and submit to the 
     Secretary a report on the progress of the State in achieving 
     State performance measures. The annual report shall also 
     include information regarding the progress of local areas in 
     achieving local performance measures. The report shall also 
     include information on the status of State evaluations of 
     workforce investment activities described in subsection 
     (e).
       (2) Additional information.--In preparing such report, the 
     State shall include, at a minimum, information relating to--
       (A) the performance of graduates of programs of training 
     services as compared to former enrollees in the programs, 
     with respect to the core indicators described in subsection 
     (b)(2)(A);
       (B) the educational attainment of such graduates and former 
     enrollees;
       (C) the cost of the workforce investment activities 
     relative to the impact of the activities on the performance 
     of graduates on the core indicators; and
       (D) the performance of welfare recipients, veterans, 
     individuals with disabilities, and displaced homemakers with 
     respect to the core indicators described in subparagraphs (A) 
     and (B) of subsection (b)(2).
       (3) Information dissemination.--The Secretary shall make 
     the information contained in such reports available to 
     Congress, the Library of Congress, and the public through 
     publication and other appropriate methods, and shall 
     disseminate State-by-State comparisons of the information 
     that take into consideration the specific circumstances, 
     including economic circumstances, of the States.
       (4) Definition.--In this subsection, the term ``welfare 
     recipient'' means a person receiving payments described in 
     section 2(24)(A).
       (e) Evaluation of State Programs.--
       (1) Workforce investment activities.--Using funds reserved 
     under section 306(a)(1), a State shall conduct ongoing 
     evaluations of workforce investment activities carried out in 
     the State under this subtitle.
       (2) Criteria for longitudinal studies.--The evaluations 
     shall include longitudinal studies of the workforce 
     investment activities. Evaluation criteria for purposes of 
     the longitudinal studies shall be developed in conjunction 
     with statewide partnerships and local partnerships. The 
     criteria shall measure the relationship between the level of 
     public funding for the activities and the degree to which the 
     activities promote employment and wage gains. Such 
     longitudinal studies shall be conducted by an evaluator who 
     is unaffiliated with the statewide partnership or the local 
     partnership and shall include measures that reflect the State 
     performance measures.
       (3) Additional studies.--The State shall also fund 
     evaluation studies of the workforce investment activities. 
     The evaluation studies shall provide ongoing analysis to 
     statewide partnerships and local partnerships to promote 
     efficiency and effectiveness in improving employability 
     outcomes for jobseekers and competitiveness for employers. 
     Such evaluation studies shall be designed in conjunction with 
     statewide partnerships and local partnerships, and shall 
     include analysis of customer feedback, and outcome and 
     process measures.
       (f) Fiscal and Management Accountability Information 
     Systems.--
       (1) In general.--Using funds reserved under section 
     306(a)(1), the Governor shall operate a fiscal and management 
     accountability information system, based on guidelines 
     established by the Secretary in consultation with the 
     Governors and other appropriate parties. Such guidelines 
     shall promote the efficient collection and use of fiscal and 
     management information for reporting and monitoring the use 
     of funds made available to the State under this subtitle for 
     workforce investment activities and for use by the State in 
     preparing the annual report described in subsection (d). In 
     measuring the progress of the State on State and local 
     performance measures, a State shall utilize quarterly wage 
     records available through the unemployment insurance system.
       (2) Confidentiality.--In carrying out the requirements of 
     this Act, the State shall comply with section 444 of the 
     General Education Provisions Act (20 U.S.C. 1232g) (as added 
     by the Family Educational Rights and Privacy Act of 1974).
       (g) Sanctions.--
       (1) Determination.--If a State fails to meet 2 or more 
     State performance measures described in this section for each 
     of the 3 years covered by a State plan, the Secretary shall 
     determine whether the failure is attributable to--
       (A) adult employment and training activities;
       (B) dislocated worker employment and training activities; 
     or
       (C) youth activities.
       (2) Technical assistance or reduction of allotments.--The 
     Secretary--
       (A) may provide technical assistance to the State to 
     improve the level of performance of the State, in accordance 
     with section 366(b); and
       (B) shall, on finding that a State fails to meet 2 or more 
     State performance measures for 2 consecutive years, reduce, 
     by not more than 5 percent, the allotment made under section 
     302 for the category of activities to which the failure is 
     attributable.
       (3) Funds resulting from reduced allotments.--The Secretary 
     may use an amount retained as a result of a reduction in an 
     allotment made under paragraph (2)(B) to award an incentive 
     grant under section 365 or to provide technical assistance in 
     accordance with section 366.
       (h) Incentive Grants.--The Secretary may make incentive 
     grants under section 365 to States that exceed the State 
     performance measures.
       (i) Definitions.--In this section:
       (1) Former enrollee.--The term ``former enrollee'' means an 
     individual who has been selected for and has enrolled in a 
     program of workforce investment activities, but left the 
     program before completing the requirements of the program.
       (2) Graduate.--The term ``graduate'' means an individual 
     who has been selected for and has enrolled in a program of 
     workforce investment activities and has completed the 
     requirements of such program.
       (j) Other Terms.--The Secretary, in consultation with the 
     Governors, local partnerships, and other appropriate 
     entities, shall issue regulations that identify and define 
     other terms used in this title, in order to promote 
     uniformity in the implementation of this Act.

     SEC. 322. AUTHORIZATION OF APPROPRIATIONS.

       (a) Adult Employment and Training Activities.--There are 
     authorized to be appropriated to carry out the activities 
     described in section 302(a)(1) under this subtitle, such sums 
     as may be necessary for each of fiscal years 1999 through 
     2004.
       (b) Dislocated Worker Employment and Training Activities.--
     There are authorized to be appropriated to carry out the 
     activities described in section 302(a)(2) under this 
     subtitle, such sums as may be necessary for each of fiscal 
     years 1999 through 2004.
       (c) Youth Activities.--There are authorized to be 
     appropriated to carry out the activities described in section 
     302(a)(3) under this subtitle, such sums as may be necessary 
     for each of fiscal years 1999 through 2004.
                         Subtitle B--Job Corps

     SEC. 331. PURPOSES.

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

     SEC. 332. DEFINITIONS.

       In this subtitle:
       (1) Applicable local partnership.--The term ``applicable 
     local partnership'' means a local partnership--
       (A) that provides information for a Job Corps center on 
     local employment opportunities and the job skills needed to 
     obtain the opportunities; and
       (B) that serves communities in which the graduates of the 
     Job Corps center seek employment.
       (2) Applicable one-stop customer service center.--The term 
     ``applicable one-stop customer service center'' means a one-
     stop customer service center that provides services, such as 
     referral, intake, recruitment, and placement, to a Job Corps 
     center.
       (3) Enrollee.--The term ``enrollee'' means an individual 
     who has voluntarily applied for, been selected for, and 
     enrolled in the Job Corps program, and remains with the 
     program, but has not yet become a graduate.

[[Page S3988]]

       (4) Former enrollee.--The term ``former enrollee'' means an 
     individual who has voluntarily applied for, been selected 
     for, and enrolled in the Job Corps program, but left the 
     program before completing the requirements of a vocational 
     training program, or receiving a secondary school diploma or 
     recognized equivalent, as a result of participation in the 
     Job Corps program.
       (5) Graduate.--The term ``graduate'' means an individual 
     who has voluntarily applied for, been selected for, and 
     enrolled in the Job Corps program and has completed the 
     requirements of a vocational training program, or received a 
     secondary school diploma or recognized equivalent, as a 
     result of participation in the Job Corps program.
       (6) Job corps.--The term ``Job Corps'' means the Job Corps 
     described in section 333.
       (7) Job corps center.--The term ``Job Corps center'' means 
     a center described in section 333.
       (8) Operator.--The term ``operator'' means an entity 
     selected under this subtitle to operate a Job Corps center.
       (9) Region.--The term ``region'' means an area served by a 
     regional office of the Employment and Training 
     Administration.
       (10) Service provider.--The term ``service provider'' means 
     an entity selected under this subtitle to provide services 
     described in this subtitle to a Job Corps center.

     SEC. 333. ESTABLISHMENT.

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

     SEC. 334. INDIVIDUALS ELIGIBLE FOR THE JOB CORPS.

       To be eligible to become an enrollee, an individual shall 
     be--
       (1) not less than age 16 and not more than age 21 on the 
     date of enrollment, except that--
       (A) not more than 20 percent of the individuals enrolled in 
     the Job Corps may be not less than age 22 and not more than 
     age 24 on the date of enrollment; and
       (B) either such maximum age limitation may be waived by the 
     Secretary, in accordance with regulations of the Secretary, 
     in the case of an individual with a disability;
       (2) a low-income individual; and
       (3) an individual who is 1 or more of the following:
       (A) Basic skills deficient.
       (B) A school dropout.
       (C) Homeless, a runaway, or a foster child.
       (D) A parent.
       (E) An individual who requires additional education, 
     vocational training, or intensive counseling and related 
     assistance, in order to participate successfully in regular 
     schoolwork or to secure and hold employment.

     SEC. 335. RECRUITMENT, SCREENING, SELECTION, AND ASSIGNMENT 
                   OF ENROLLEES.

       (a) Standards and Procedures.--
       (1) In general.--The Secretary shall prescribe specific 
     standards and procedures for the recruitment, screening, and 
     selection of eligible applicants for the Job Corps, after 
     considering recommendations from the Governors, local 
     partnerships, and other interested parties.
       (2) Methods.--In prescribing standards and procedures under 
     paragraph (1), the Secretary, at a minimum, shall--
       (A) prescribe procedures for informing enrollees that drug 
     tests will be administered to the enrollees and the results 
     received within 45 days after the enrollees enroll in the Job 
     Corps;
       (B) establish standards for recruitment of Job Corps 
     applicants;
       (C) establish standards and procedures for--
       (i) determining, for each applicant, whether the 
     educational and vocational needs of the applicant can best be 
     met through the Job Corps program or an alternative program 
     in the community in which the applicant resides; and
       (ii) obtaining from each applicant pertinent data relating 
     to background, needs, and interests for determining 
     eligibility and potential assignment;
       (D) where appropriate, take measures to improve the 
     professional capability of the individuals conducting 
     screening of the applicants; and
       (E) assure that an appropriate number of enrollees are from 
     rural areas.
       (3) Implementation.--To the extent practicable, the 
     standards and procedures shall be implemented through 
     arrangements with--
       (A) applicable one-stop customer service centers;
       (B) community action agencies, business organizations, and 
     labor organizations; and
       (C) agencies and individuals that have contact with youth 
     over substantial periods of time and are able to offer 
     reliable information about the needs and problems of youth.
       (4) Consultation.--The standards and procedures shall 
     provide for necessary consultation with individuals and 
     organizations, including court, probation, parole, law 
     enforcement, education, welfare, and medical authorities and 
     advisers.
       (5) Reimbursement.--The Secretary is authorized to enter 
     into contracts with and make payments to individuals and 
     organizations for the cost of conducting recruitment, 
     screening, and selection of eligible applicants for the Job 
     Corps, as provided for in this section. The Secretary shall 
     make no payment to any individual or organization solely as 
     compensation for referring the names of applicants for the 
     Job Corps.
       (b) Special Limitations on Selection.--
       (1) In general.--No individual shall be selected as an 
     enrollee unless the individual or organization implementing 
     the standards and procedures determines that--
       (A) there is a reasonable expectation that the individual 
     considered for selection can participate successfully in 
     group situations and activities, and is not likely to engage 
     in behavior that would prevent other enrollees from receiving 
     the benefit of the Job Corps program or be incompatible with 
     the maintenance of sound discipline and satisfactory 
     relationships between the Job Corps center to which the 
     individual might be assigned and communities surrounding the 
     Job Corps center;
       (B) the individual manifests a basic understanding of both 
     the rules to which the individual will be subject and of the 
     consequences of failure to observe the rules; and
       (C) the individual has passed a background check conducted 
     in accordance with procedures established by the Secretary.
       (2) Individuals on probation, parole, or supervised 
     release.--An individual on probation, parole, or supervised 
     release may be selected as an enrollee only if release from 
     the supervision of the probation or parole official involved 
     is satisfactory to the official and the Secretary and does 
     not violate applicable laws (including regulations). No 
     individual shall be denied a position in the Job Corps solely 
     on the basis of individual contact with the criminal justice 
     system.
       (c) Assignment Plan.--
       (1) In general.--Every 2 years, the Secretary shall develop 
     and implement an assignment plan for assigning enrollees to 
     Job Corps centers. In developing the plan, the Secretary 
     shall, based on the analysis described in paragraph (2), 
     establish targets, applicable to each Job Corps center, 
     for--
       (A) the maximum attainable percentage of enrollees at the 
     Job Corps center that reside in the State in which the center 
     is located; and
       (B) the maximum attainable percentage of enrollees at the 
     Job Corps center that reside in the region in which the 
     center is located, and in surrounding regions.
       (2) Analysis.--In order to develop the plan described in 
     paragraph (1), the Secretary shall, every 2 years, analyze, 
     for the Job Corps center--
       (A) the size of the population of individuals eligible to 
     participate in Job Corps in the State and region in which the 
     Job Corps center is located, and in surrounding regions;
       (B) the relative demand for participation in the Job Corps 
     in the State and region, and in surrounding regions; and
       (C) the capacity and utilization of the Job Corps center, 
     including services provided through the center.
       (d) Assignment of Individual Enrollees.--
       (1) In general.--After an individual has been selected for 
     the Job Corps in accordance with the standards and procedures 
     of the Secretary under subsection (a), the enrollee shall be 
     assigned to the Job Corps center that is closest to the home 
     of the enrollee, except that the Secretary may waive this 
     requirement if--
       (A) the enrollee chooses a vocational training program, or 
     requires an English as a second language program, that is not 
     available at such center;
       (B) the enrollee is an individual with a disability and may 
     be better served at another center;
       (C) the enrollee would be unduly delayed in participating 
     in the Job Corps program because the closest center is 
     operating at full capacity; or
       (D) the parent or guardian of the enrollee requests 
     assignment of the enrollee to another Job Corps center due to 
     circumstances in the community of the enrollee that would 
     impair prospects for successful participation in the Job 
     Corps program.
       (2) Enrollees who are younger than 18.--An enrollee who is 
     younger than 18 shall not be assigned to a Job Corps center 
     other than the center closest to the home of the enrollee 
     pursuant to paragraph (1) if the parent or guardian of the 
     enrollee objects to the assignment.

     SEC. 336. ENROLLMENT.

       (a) Relationship Between Enrollment and Military 
     Obligations.--Enrollment in the Job Corps shall not relieve 
     any individual of obligations under the Military Selective 
     Service Act (50 U.S.C. App. 451 et seq.).
       (b) Period of Enrollment.--No individual may be enrolled in 
     the Job Corps for more than 2 years, except--
       (1) in a case in which completion of an advanced career 
     training program under section 338(b) would require an 
     individual to participate in the Job Corps for not more than 
     1 additional year; or
       (2) as the Secretary may authorize in a special case.

     SEC. 337. JOB CORPS CENTERS.

       (a) Operators and Service Providers.--
       (1) Eligible entities.--
       (A) Operators.--The Secretary shall enter into an agreement 
     with a Federal, State, or local agency, such as individuals 
     participating in a statewide partnership or in a local 
     partnership or an agency that operates or wishes to develop 
     an area vocational education school facility or residential 
     vocational school, or with a private organization, for the 
     operation of each Job Corps center.
       (B) Providers.--The Secretary may enter into an agreement 
     with a local entity to provide activities described in this 
     subtitle to the Job Corps center.
       (2) Selection process.--
       (A) Competitive basis.--Except as provided in subsections 
     (c) and (d) of section 303 of the Federal Property and 
     Administrative Services Act of 1949 (41 U.S.C. 253), the 
     Secretary shall select on a competitive basis an entity to 
     operate a Job Corps center and entities to provide activities 
     described in this subtitle to the Job Corps center. In 
     developing a solicitation for an operator or service 
     provider, the Secretary shall consult with the Governor of 
     the State in which the center is located, the industry 
     council for the Job Corps center (if established), and the 
     applicable local partnership regarding the contents of

[[Page S3989]]

     such solicitation, including elements that will promote the 
     consistency of the activities carried out through the center 
     with the objectives set forth in the State plan or in a local 
     plan.
       (B) Recommendations and considerations.--
       (i) Operators.--In selecting an entity to operate a Job 
     Corps center, the Secretary shall consider--

       (I) the ability of the entity to coordinate the activities 
     carried out through the Job Corps center with activities 
     carried out under the appropriate State plan and local plans;
       (II) the degree to which the vocational training that the 
     entity proposes for the center reflects local employment 
     opportunities in the local areas in which enrollees at the 
     center intend to seek employment;
       (III) the degree to which the entity is familiar with the 
     surrounding communities, applicable one-stop centers, and the 
     State and region in which the center is located; and
       (IV) the past performance of the entity, if any, relating 
     to operating or providing activities described in this 
     subtitle to a Job Corps center.
       (ii) Providers.--In selecting a service provider for a Job 
     Corps center, the Secretary shall consider the factors 
     described in subclauses (I) through (IV) of clause (i), as 
     appropriate.
       (b) Character and Activities.--Job Corps centers may be 
     residential or nonresidential in character, and shall be 
     designed and operated so as to provide enrollees, in a well-
     supervised setting, with access to activities described in 
     this subtitle. In any year, no more than 20 percent of the 
     individuals enrolled in the Job Corps may be nonresidential 
     participants in the Job Corps.
       (c) Civilian Conservation Centers.--
       (1) In general.--The Job Corps centers may include Civilian 
     Conservation Centers operated under agreements with the 
     Secretary of Agriculture or the Secretary of the Interior, 
     located primarily in rural areas, which shall provide, in 
     addition to other vocational training and assistance, 
     programs of work experience to conserve, develop, or manage 
     public natural resources or public recreational areas or to 
     develop community projects in the public interest.
       (2) Selection process.--The Secretary may select an entity 
     to operate a Civilian Conservation Center on a competitive 
     basis, as provided in subsection (a), if the center fails to 
     meet such national performance standards as the Secretary 
     shall establish.
       (d) Indian Tribes.--
       (1) General authority.--The Secretary may enter into 
     agreements with Indian tribes to operate Job Corps centers 
     for Indians.
       (2) Definitions.--In this subsection, the terms ``Indian'' 
     and ``Indian tribe'', have the meanings given such terms in 
     subsections (d) and (e), respectively, of section 4 of the 
     Indian Self-Determination and Education Assistance Act (25 
     U.S.C. 450b).

     SEC. 338. PROGRAM ACTIVITIES.

       (a) Activities Provided by Job Corps Centers.--
       (1) In general.--Each Job Corps center shall provide 
     enrollees with an intensive, well organized, and fully 
     supervised program of education, vocational training, work 
     experience, recreational activities, and counseling. Each Job 
     Corps center shall provide enrollees assigned to the center 
     with access to core services described in subtitle A.
       (2) Relationship to opportunities.--
       (A) In general.--The activities provided under this 
     subsection shall provide work-based learning throughout the 
     enrollment of the enrollees and assist the enrollees in 
     obtaining meaningful unsubsidized employment, participating 
     in secondary education or postsecondary education programs, 
     enrolling in other suitable vocational training programs, or 
     satisfying Armed Forces requirements, on completion of their 
     enrollment.
       (B) Link to employment opportunities.--The vocational 
     training provided shall be linked to the employment 
     opportunities in the local area in which the enrollee intends 
     to seek employment after graduation.
       (b) Advanced Career Training Programs.--
       (1) In general.--The Secretary may arrange for programs of 
     advanced career training for selected enrollees in which the 
     enrollees may continue to participate for a period of not to 
     exceed 1 year in addition to the period of participation to 
     which the enrollees would otherwise be limited. The advanced 
     career training may be provided through the eligible 
     providers of training services identified by the State 
     involved under section 312.
       (2) Benefits.--
       (A) In general.--During the period of participation in an 
     advanced career training program, an enrollee shall be 
     eligible for full Job Corps benefits, or a monthly stipend 
     equal to the average value of the residential support, food, 
     allowances, and other benefits provided to enrollees assigned 
     to residential Job Corps centers.
       (B) Calculation.--The total amount for which an enrollee 
     shall be eligible under subparagraph (A) shall be reduced by 
     the amount of any scholarship or other educational grant 
     assistance received by such enrollee for advanced career 
     training.
       (3) Demonstration.--Each year, any operator seeking to 
     enroll additional enrollees in an advanced career training 
     program shall demonstrate that participants in such program 
     have achieved a reasonable rate of completion and placement 
     in training-related jobs before the operator may carry out 
     such additional enrollment.
       (c) Continued Services.--The Secretary shall also provide 
     continued services to graduates, including providing 
     counseling regarding the workplace for 12 months after the 
     date of graduation of the graduates. In selecting a provider 
     for such services, the Secretary shall give priority to one-
     stop partners.

     SEC. 339. COUNSELING AND JOB PLACEMENT.

       (a) Counseling and Testing.--The Secretary shall arrange 
     for counseling and testing for each enrollee at regular 
     intervals to measure progress in the education and vocational 
     training programs carried out through the Job Corps.
       (b) Placement.--The Secretary shall arrange for counseling 
     and testing for enrollees prior to their scheduled 
     graduations to determine their capabilities and, based on 
     their capabilities, shall make every effort to arrange to 
     place the enrollees in jobs in the vocations for which the 
     enrollees are trained or to assist the enrollees in obtaining 
     further activities described in this subtitle. In arranging 
     for the placement of graduates in jobs, the Secretary shall 
     utilize the one-stop customer service system to the fullest 
     extent possible.
       (c) Status and Progress.--The Secretary shall determine the 
     status and progress of enrollees scheduled for graduation and 
     make every effort to assure that their needs for further 
     activities described in this subtitle are met.

     SEC. 340. SUPPORT.

       (a) Personal Allowances.--The Secretary shall provide 
     enrollees assigned to Job Corps centers with such personal 
     allowances as the Secretary may determine to be necessary 
     or appropriate to meet the needs of the enrollees.
       (b) Readjustment Allowances.--The Secretary shall arrange 
     for a readjustment allowance to be paid to eligible former 
     enrollees and graduates. The Secretary shall arrange for the 
     allowance to be paid at the one-stop customer service center 
     nearest to the home of such a former enrollee or graduate who 
     is returning home, or at the one-stop customer service center 
     nearest to the location where the former enrollee or graduate 
     has indicated an intent to seek employment. If the Secretary 
     uses any organization, in lieu of a one-stop customer service 
     center, to provide placement services under this Act, the 
     Secretary shall arrange for that organization to pay the 
     readjustment allowance.

     SEC. 341. OPERATING PLAN.

       (a) In General.--The provisions of the contract between the 
     Secretary and an entity selected to operate a Job Corps 
     center shall, at a minimum, serve as an operating plan for 
     the Job Corps center.
       (b) Additional Information.--The Secretary may require the 
     operator, in order to remain eligible to operate the Job 
     Corps center, to submit such additional information as the 
     Secretary may require, which shall be considered part of the 
     operating plan.
       (c) Availability.--The Secretary shall make the operating 
     plan described in subsections (a) and (b), excluding any 
     proprietary information, available to the public.

     SEC. 342. STANDARDS OF CONDUCT.

       (a) Provision and Enforcement.--The Secretary shall 
     provide, and directors of Job Corps centers shall stringently 
     enforce, standards of conduct within the centers. Such 
     standards of conduct shall include provisions forbidding the 
     actions described in subsection (b)(2)(A).
       (b) Disciplinary Measures.--
       (1) In general.--To promote the proper moral and 
     disciplinary conditions in the Job Corps, the directors of 
     Job Corps centers shall take appropriate disciplinary 
     measures against enrollees. If such a director determines 
     that an enrollee has committed a violation of the standards 
     of conduct, the director shall dismiss the enrollee from the 
     Job Corps if the director determines that the retention of 
     the enrollee in the Job Corps will jeopardize the enforcement 
     of such standards or diminish the opportunities of other 
     enrollees.
       (2) Zero tolerance policy and drug testing.--
       (A) Guidelines.--The Secretary shall adopt guidelines 
     establishing a zero tolerance policy for an act of violence, 
     for use, sale, or possession of a controlled substance, for 
     abuse of alcohol, or for other illegal or disruptive 
     activity.
       (B) Drug testing.--The Secretary shall require drug testing 
     of all enrollees for controlled substances in accordance with 
     procedures prescribed by the Secretary under section 335(a).
       (C) Definitions.--In this paragraph:
       (i) Controlled substance.--The term ``controlled 
     substance'' has the meaning given the term in section 102 of 
     the Controlled Substances Act (21 U.S.C. 802).
       (ii) Zero tolerance policy.--The term ``zero tolerance 
     policy'' means a policy under which an enrollee shall be 
     automatically dismissed from the Job Corps after a 
     determination by the director that the enrollee has carried 
     out an action described in subparagraph (A).
       (c) Appeal.--A disciplinary measure taken by a director 
     under this section shall be subject to expeditious appeal in 
     accordance with procedures established by the Secretary.

     SEC. 343. COMMUNITY PARTICIPATION.

       (a) Business and Community Liaison.--Each Job Corps center 
     shall have a Business and Community Liaison (referred to in 
     this Act as a ``Liaison''), designated by the director of the 
     center.
       (b) Responsibilities.--The responsibilities of the Liaison 
     shall include--
       (1) establishing and developing relationships and networks 
     with--
       (A) local and (in the case of rural or remote sites) 
     distant employers; and
       (B) applicable one-stop customer service centers and 
     applicable local partnerships,

     for the purpose of providing job opportunities for Job Corps 
     graduates; and
       (2) establishing and developing relationships with members 
     of the community in which the Job Corps center is located, 
     informing members of the community about the projects of the 
     Job Corps center and changes in the rules, procedures, or 
     activities of the center that may affect the community, and 
     planning events of mutual interest to the community and the 
     Job Corps center.

[[Page S3990]]

       (c) New Centers.--The Liaison for a Job Corps center that 
     is not yet operating shall establish and develop the 
     relationships and networks described in subsection (b) 
     at least 3 months prior to the date on which the center 
     accepts the first enrollee at the center.

     SEC. 344. INDUSTRY COUNCILS.

       (a) In General.--Each Job Corps center shall have an 
     industry council, appointed by the director of the center 
     after consultation with the Liaison, in accordance with 
     procedures established by the Secretary.
       (b) Industry Council Composition.--
       (1) In general.--An industry council shall be comprised 
     of--
       (A) a majority of members who shall be local and (in the 
     case of rural or remote sites) distant owners of business 
     concerns, chief executives or chief operating officers of 
     nongovernmental employers, or other private sector employers, 
     who--
       (i) have substantial management, hiring, or policy 
     responsibility; and
       (ii) represent businesses with employment opportunities 
     that reflect the employment opportunities of the applicable 
     local area; and
       (B) representatives of labor organizations (where present) 
     and representatives of employees.
       (2) Local partnership.--The industry council may include 
     members of the applicable local partnerships who meet the 
     requirements described in paragraph (1).
       (c) Responsibilities.--The responsibilities of the industry 
     council shall be--
       (1) to work closely with all applicable local partnerships 
     in order to determine, and recommend to the Secretary, 
     appropriate vocational training for the center;
       (2) to review all the relevant labor market information 
     to--
       (A) determine the employment opportunities in the local 
     areas in which the enrollees intend to seek employment after 
     graduation;
       (B) determine the skills and education that are necessary 
     to obtain the employment opportunities; and
       (C) recommend to the Secretary the type of vocational 
     training that should be implemented at the center to enable 
     the enrollees to obtain the employment opportunities; and
       (3) to meet at least once every 6 months to reevaluate the 
     labor market information, and other relevant information, to 
     determine, and recommend to the Secretary, any necessary 
     changes in the vocational training provided at the center.
       (d) New Centers.--The industry council for a Job Corps 
     center that is not yet operating shall carry out the 
     responsibilities described in subsection (c) at least 3 
     months prior to the date on which the center accepts the 
     first enrollee at the center.

     SEC. 345. ADVISORY COMMITTEES.

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

     SEC. 346. EXPERIMENTAL, RESEARCH, AND DEMONSTRATION PROJECTS.

       The Secretary may carry out experimental, research, or 
     demonstration projects relating to carrying out the Job Corps 
     program and may waive any provision of this subtitle that the 
     Secretary finds would prevent the Secretary from carrying out 
     the projects.

     SEC. 347. APPLICATION OF PROVISIONS OF FEDERAL LAW.

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

     SEC. 348. SPECIAL PROVISIONS.

       (a) Enrollment.--The Secretary shall ensure that women and 
     men have an equal opportunity to participate in the Job Corps 
     program, consistent with section 335.
       (b) Studies, Evaluations, Proposals, and Data.--The 
     Secretary shall assure that all studies, evaluations, 
     proposals, and data produced or developed with Federal funds 
     in the course of carrying out the Job Corps program shall 
     become the property of the United States.
       (c) Transfer of Property.--
       (1) In general.--Notwithstanding title II of the Federal 
     Property and Administrative Services Act of 1949 (40 U.S.C. 
     481 et seq.) and any other provision of law, the Secretary 
     and the Secretary of Education shall receive priority by the 
     Secretary of Defense for the direct transfer, on a 
     nonreimbursable basis, of the property described in paragraph 
     (2) for use in carrying out programs under this Act or under 
     any other Act.
       (2) Property.--The property described in this paragraph is 
     real and personal property under the control of the 
     Department of Defense that is not used by such Department, 
     including property that the Secretary of Defense determines 
     is in excess of current and projected requirements of such 
     Department.
       (d) Gross Receipts.--Transactions conducted by a private 
     for-profit or nonprofit entity that is an operator or service 
     provider for a Job Corps center shall not be considered to be 
     generating gross receipts. Such an operator or service 
     provider shall not be liable, directly or indirectly, to any 
     State or subdivision of a State (nor to any person acting on 
     behalf of such a State or subdivision) for any gross receipts 
     taxes, business privilege taxes measured by gross receipts, 
     or any similar taxes imposed on, or measured by, gross 
     receipts in connection with any payments made to or by such 
     entity for operating or providing services to a Job Corps 
     center. Such an operator or service provider shall not be 
     liable to any State or subdivision of a State to collect or 
     pay any sales, excise, use, or similar tax imposed on the 
     sale to or use by such operator or service provider of any 
     property, service, or other item in connection with the 
     operation of or provision of services to a Job Corps center.
       (e) Management Fee.--The Secretary shall provide each 
     operator and (in an appropriate case, as determined by the 
     Secretary) service provider with an equitable and negotiated 
     management fee of not less than 1 percent of the amount of 
     the funding provided under the appropriate agreement 
     specified in section 337.
       (f) Donations.--The Secretary may accept on behalf of the 
     Job Corps or individual Job Corps centers charitable 
     donations of cash or other assistance, including equipment 
     and materials, if such donations are available for 
     appropriate use for the purposes set forth in this subtitle.
       (g) Sale of Property.--Notwithstanding any other provision 
     of law, if the Administrator of General Services sells a Job 
     Corps center facility, the Administrator shall transfer the 
     proceeds from the sale to the Secretary, who shall use the 
     proceeds to carry out the Job Corps program.

     SEC. 349. MANAGEMENT INFORMATION.

       (a) Financial Management Information System.--
       (1) In general.--The Secretary shall establish procedures 
     to ensure that each operator, and each service provider, 
     maintains a financial management information system that will 
     provide--
       (A) accurate, complete, and current disclosures of the 
     costs of Job Corps operations; and
       (B) sufficient data for the effective evaluation of 
     activities carried out through the Job Corps program.
       (2) Accounts.--Each operator and service provider shall 
     maintain funds received under this subtitle in accounts in a 
     manner that ensures timely and accurate reporting as required 
     by the Secretary.
       (3) Fiscal responsibility.--Operators shall remain fiscally 
     responsible and control costs, regardless of whether the 
     funds made available for Job Corps centers are incrementally 
     increased or decreased between fiscal years.
       (b) Audit.--
       (1) Access.--The Secretary, the Inspector General of the 
     Department of Labor, the Comptroller General of the United 
     States, and any of their duly authorized representatives, 
     shall have access to any books, documents, papers, and 
     records of the operators and service providers described in 
     subsection (a) that are pertinent to the Job Corps program, 
     for purposes of conducting surveys, audits, and evaluations 
     of the operators and service providers.
       (2) Surveys, audits, and evaluations.--The Secretary shall 
     survey, audit, or evaluate, or arrange for the survey, audit, 
     or evaluation of, the operators and service providers, using 
     Federal auditors or independent public accountants. The 
     Secretary shall conduct such surveys, audits, or evaluations 
     not less often than once every 3 years.
       (c) Information on Core Performance Measures.--
       (1) Establishment.--The Secretary shall, with continuity 
     and consistency from year to year, establish core performance 
     measures, and expected performance levels on the performance 
     measures, for Job Corps centers and the Job Corps program, 
     relating to--
       (A) the number of graduates and the rate of such 
     graduation, analyzed by type of vocational training received 
     through the Job Corps program and by whether the vocational 
     training was provided by a local or national service 
     provider;
       (B) the number of graduates who entered unsubsidized 
     employment related to the vocational

[[Page S3991]]

     training received through the Job Corps program and the 
     number who entered unsubsidized employment not related to the 
     vocational training received, analyzed by whether the 
     vocational training was provided by a local or national 
     service provider and by whether the placement in the 
     employment was conducted by a local or national service 
     provider;
       (C) the average wage received by graduates who entered 
     unsubsidized employment related to the vocational training 
     received through the Job Corps program and the average wage 
     received by graduates who entered unsubsidized employment 
     unrelated to the vocational training received;
       (D) the average wage received by graduates placed in 
     unsubsidized employment after completion of the Job Corps 
     program--
       (i) on the first day of the employment;
       (ii) 6 months after the first day of the employment; and
       (iii) 12 months after the first day of the employment,
     analyzed by type of vocational training received through the 
     Job Corps program;
       (E) the number of graduates who entered unsubsidized 
     employment and were retained in the unsubsidized employment--
       (i) 6 months after completion of the Job Corps program; and
       (ii) 12 months after completion of the Job Corps program;
       (F) the number of graduates who entered unsubsidized 
     employment--
       (i) for 32 hours per week or more;
       (ii) for not less than 20 but less than 32 hours per week; 
     and
       (iii) for less than 20 hours per week;
       (G) the number of graduates who entered postsecondary 
     education or advanced training programs, including registered 
     apprenticeship programs, as appropriate; and
       (H) the number of graduates who attained job readiness and 
     employment skills.
       (2) Performance of recruiters.--The Secretary shall also 
     establish performance measures, and expected performance 
     levels on the performance measures, for local and national 
     recruitment service providers serving the Job Corps program. 
     The performance measures shall relate to the number of 
     enrollees retained in the Job Corps program for 30 days and 
     for 60 days after initial placement in the program.
       (3) Report.--The Secretary shall collect, and annually 
     submit a report to the appropriate committees of Congress 
     containing, information on the performance of each Job Corps 
     center, and the Job Corps program, on the core performance 
     measures, as compared to the expected performance level for 
     each performance measure. The report shall also contain 
     information on the performance of the service providers 
     described in paragraph (2) on the performance measures 
     established under such paragraph, as compared to the expected 
     performance levels for the performance measures.
       (d) Additional Information.--The Secretary shall also 
     collect, and submit in the report described in subsection 
     (c), information on the performance of each Job Corps center, 
     and the Job Corps program, regarding--
       (1) the number of enrollees served;
       (2) the average level of learning gains for graduates and 
     former enrollees;
       (3) the number of former enrollees and graduates who 
     entered the Armed Forces;
       (4) the number of former enrollees who entered 
     postsecondary education;
       (5) the number of former enrollees who entered unsubsidized 
     employment related to the vocational training received 
     through the Job Corps program and the number who entered 
     unsubsidized employment not related to the vocational 
     training received;
       (6) the number of former enrollees and graduates who 
     obtained a secondary school diploma or its recognized 
     equivalent;
       (7) the number and percentage of dropouts from the Job 
     Corps program including the number dismissed under the zero 
     tolerance policy described in section 342(b); and
       (8) any additional information required by the Secretary.
       (e) Methods.--The Secretary may, to collect the information 
     described in subsections (c) and (d), use methods described 
     in subtitle A.
       (f) Performance Assessments and Improvements.--
       (1) Assessments.--The Secretary shall conduct an annual 
     assessment of the performance of each Job Corps center. Based 
     on the assessment, the Secretary shall take measures to 
     continuously improve the performance of the Job Corps 
     program.
       (2) Performance improvement plans.--With respect to a Job 
     Corps center that fails to meet the expected levels of 
     performance relating to the core performance measures 
     specified in subsection (c), the Secretary shall develop and 
     implement a performance improvement plan. Such a plan shall 
     require action including--
       (A) providing technical assistance to the center;
       (B) changing the vocational training offered at the center;
       (C) changing the management staff of the center;
       (D) replacing the operator of the center;
       (E) reducing the capacity of the center;
       (F) relocating the center; or
       (G) closing the center.
       (3) Additional performance improvement plans.--In addition 
     to the performance improvement plans required under paragraph 
     (2), the Secretary may develop and implement additional 
     performance improvement plans. Such a plan shall require 
     improvements, including the actions described in paragraph 
     (2), for a Job Corps center that fails to meet criteria 
     established by the Secretary other than the expected levels 
     of performance described in paragraph (2).

     SEC. 350. GENERAL PROVISIONS.

       The Secretary is authorized to--
       (1) disseminate, with regard to the provisions of section 
     3204 of title 39, United States Code, data and information in 
     such forms as the Secretary shall determine to be 
     appropriate, to public agencies, private organizations, and 
     the general public;
       (2) subject to section 347(b), collect or compromise all 
     obligations to or held by the Secretary and exercise all 
     legal or equitable rights accruing to the Secretary in 
     connection with the payment of obligations until such time as 
     such obligations may be referred to the Attorney General for 
     suit or collection; and
       (3) expend funds made available for purposes of this 
     subtitle--
       (A) for printing and binding, in accordance with applicable 
     law (including regulation); and
       (B) without regard to any other law (including regulation), 
     for rent of buildings and space in buildings and for repair, 
     alteration, and improvement of buildings and space in 
     buildings rented by the Secretary, except that the Secretary 
     shall not expend funds under the authority of this 
     subparagraph--
       (i) except when necessary to obtain an item, service, or 
     facility, that is required in the proper administration of 
     this subtitle, and that otherwise could not be obtained, or 
     could not be obtained in the quantity or quality needed, or 
     at the time, in the form, or under the conditions in which 
     the item, service, or facility is needed; and
       (ii) prior to having given written notification to the 
     Administrator of General Services (if the expenditure would 
     affect an activity that otherwise would be under the 
     jurisdiction of the General Services Administration) of the 
     intention of the Secretary to make the expenditure, and the 
     reasons and justifications for the expenditure.

     SEC. 351. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to carry out this 
     subtitle such sums as may be necessary for each of the fiscal 
     years 1999 through 2004.
                     Subtitle C--National Programs

     SEC. 361. NATIVE AMERICAN PROGRAMS.

       (a) Purpose and Policy.--
       (1) Purpose.--The purpose of this section is to support 
     workforce investment activities and supplemental services for 
     Indian and Native Hawaiian individuals in order--
       (A) to develop more fully the academic, occupational, and 
     literacy skills of such individuals;
       (B) to make such individuals more competitive in the 
     workforce; and
       (C) to promote the economic and social development of 
     Indian and Native Hawaiian communities in accordance with the 
     goals and values of such communities.
       (2)  Indian policy.--All programs assisted under this 
     section shall be administered in a manner consistent with the 
     principles of the Indian Self-Determination and Education 
     Assistance Act (25 U.S.C. 450 et seq.) and the government-to-
     government relationship between the Federal Government and 
     Indian tribal governments.
       (b) Definitions.--In this section:
       (1) 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).
       (2) 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) Programs Authorized.--The Secretary shall make grants 
     to, or enter into contracts or cooperative agreements with, 
     Indian tribes, tribal organizations, 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 
     paragraph (2) that--
       (A) are consistent with this section; and
       (B) are necessary to meet the needs of Indians or Native 
     Hawaiians preparing to enter, reenter, or retain unsubsidized 
     employment.
       (2) Workforce investment activities and supplemental 
     services.--
       (A) In general.--Funds made available under this section 
     shall be used for--
       (i) building a comprehensive facility to be utilized by 
     American Samoans residing in Hawaii for the co-location of 
     federally funded and State funded workforce investment 
     activities;
       (ii) comprehensive workforce investment activities for 
     Indians or Native Hawaiians; or
       (iii) 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 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 
     shall--
       (1) be consistent with the purpose of this section;
       (2) identify the population to be served;
       (3) identify the education and employment needs of the 
     population to be served and the

[[Page S3992]]

     manner in which the activities to be provided will strengthen 
     the ability of the individuals served to obtain or retain 
     unsubsidized employment;
       (4) describe the activities to be provided and the manner 
     in which such activities are to be integrated with other 
     appropriate activities; and
       (5) describe, after the entity submitting the plan consults 
     with the Secretary, the performance measures to be used to 
     assess the performance of entities in carrying out the 
     activities assisted under this section.
       (f) Consolidation of Funds.--Each entity receiving 
     assistance under this section may consolidate such assistance 
     with assistance received from related programs in accordance 
     with the provisions of the Indian Employment, Training and 
     Related Services Demonstration Act of 1992 (25 U.S.C. 3401 et 
     seq.).
       (g) Nonduplicative and Nonexclusive Services.--Nothing in 
     this section shall be construed--
       (1) to limit the eligibility of any entity described in 
     subsection (c) to participate in any activity offered by a 
     State or local entity under this 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 shall 
     designate a single organizational unit within the Department 
     of Labor that shall have primary responsibility for the 
     administration of the activities authorized under this 
     section.
       (2) Regulations.--The Secretary shall consult with the 
     entities described in subsection (c) in--
       (A) 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 entities; and
       (B) developing a funding distribution plan that takes into 
     consideration previous levels of funding (prior to the date 
     of enactment of this Act) to such entities.
       (3) Waivers.--
       (A) In general.--With respect to an entity described in 
     subsection (c), the Secretary, notwithstanding any other 
     provision of law, may, pursuant to a request submitted by 
     such entity that meets the requirements established under 
     paragraph (2), waive any of the statutory or regulatory 
     requirements of this title that are inconsistent with the 
     specific needs of the entities described in such 
     subsection, except that the Secretary may not waive 
     requirements relating to wage and labor standards, worker 
     rights, participation and protection of participants, 
     grievance procedures, and judicial review.
       (B) Request and approval.--An entity described in 
     subsection (c) that requests a waiver under subparagraph (A) 
     shall submit a plan to the Secretary to improve the program 
     of workforce investment activities carried out by the entity, 
     which plan shall meet the requirements established by the 
     Secretary and shall be generally consistent with the 
     requirements of section 379(i)(3).
       (4) Advisory council.--
       (A) In general.--The Secretary shall establish a Native 
     American Employment and Training Council to facilitate the 
     consultation described in paragraph (2).
       (B) Composition.--The Council shall be composed of 
     individuals, appointed by the Secretary, who are 
     representatives of the entities described in subsection (c).
       (C) Duties.--The Council shall advise the Secretary on all 
     aspects of the operation and administration of the programs 
     assisted under this section, including the selection of the 
     individual appointed as the head of the unit established 
     under paragraph (1).
       (D) Personnel matters.--
       (i) Compensation of members.--Members of the Council shall 
     serve without compensation.
       (ii) Travel expenses.--The members of the Council shall be 
     allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for employees of agencies 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from their homes or regular places of 
     business in the performance of services for the Council.
       (iii) Administrative support.--The Secretary shall provide 
     the Council with such administrative support as may be 
     necessary to perform the functions of the Council.
       (E) Chairperson.--The Council shall select a chairperson 
     from among its members.
       (F) Meetings.--The Council shall meet not less than twice 
     each year.
       (G) Application.--Section 14 of the Federal Advisory 
     Committee Act (5 U.S.C. App.) shall not apply to the Council.
       (5) Technical assistance.--The Secretary, acting through 
     the unit established under paragraph (1), is authorized to 
     provide technical assistance to entities described in 
     subsection (c) that receive assistance under this section to 
     enable such entities to improve the activities authorized 
     under this section that are provided by such entities.

     SEC. 362. MIGRANT AND SEASONAL FARMWORKER PROGRAMS.

       (a) In General.--Every 2 years, the Secretary shall, on a 
     competitive basis, 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 eligible migrant and 
     seasonal farmworkers (including dependents), a familiarity 
     with the area to be served, and the ability to demonstrate a 
     capacity to administer effectively a diversified program of 
     workforce investment activities (including youth activities) 
     and related assistance for eligible migrant 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 a plan that 
     describes a 2-year strategy for meeting the needs of eligible 
     migrant and seasonal farmworkers in the area to be served by 
     such entity.
       (2) Administration.--Grants and contracts awarded under 
     this section shall be centrally administered by the 
     Department of Labor and competitively awarded by the 
     Secretary using procedures consistent with standard Federal 
     Government competitive procurement policies.
       (3) Competition.--
       (A) In general.--The competition for grants made and 
     contracts entered into under this section shall be conducted 
     every 2 years.
       (B) Exception.--Notwithstanding subparagraph (A), if a 
     recipient of such a grant or contract has performed 
     satisfactorily under the terms of the grant agreement or 
     contract, the Secretary may waive the requirement for such 
     competition for such recipient upon receipt from the 
     recipient of a satisfactory 2-year plan described in 
     paragraph (1) for the succeeding 2-year grant or contract 
     period.
       (4) Contents.--Such plan shall--
       (A) identify the education and employment needs of the 
     eligible migrant and seasonal farmworkers to be served and 
     the manner in which the workforce investment activities 
     (including youth activities) to be carried out will 
     strengthen the ability of the eligible migrant and seasonal 
     farmworkers to obtain or retain unsubsidized employment or 
     stabilize their unsubsidized employment;
       (B) describe the related assistance, including supportive 
     services, to be provided and the manner in which such 
     assistance and services are to be integrated and coordinated 
     with other appropriate services; and
       (C) describe, after consultation with the Secretary, the 
     performance measures 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 workforce investment 
     activities (including youth activities) and provide related 
     assistance for eligible migrant and seasonal farmworkers, 
     which may include employment, training, educational 
     assistance, literacy assistance, an English language program, 
     worker safety training, supportive services, dropout 
     prevention activities, follow-up services for those 
     individuals placed in employment, self-employment and related 
     business enterprise development education as needed by 
     eligible migrant and seasonal farmworkers and identified 
     pursuant to the plan required by subsection (c), and 
     technical assistance relating to capacity enhancement in such 
     areas as management information technology.
       (e) Consultation With Governors and Local Partnerships.--In 
     making grants and entering into contracts under this section, 
     the Secretary shall consult with the Governors and local 
     partnerships of the States in which the eligible entities 
     will carry out the activities described in subsection (d).
       (f) Regulations.--The Secretary shall consult with eligible 
     migrant and seasonal farmworkers groups and States in 
     establishing regulations to carry out this section, including 
     performance measures for eligible entities that take into 
     account the economic circumstances and demographics of 
     eligible migrant and seasonal farmworkers.
       (g) Definitions.--In this section:
       (1) Disadvantaged.--The term ``disadvantaged'', used with 
     respect to a farmworker, means a farmworker whose income, for 
     12 consecutive months out of the 24 months prior to 
     application for the program involved, does not exceed the 
     higher of--
       (A) the poverty line (as defined in section 334(a)(2)(B)) 
     for an equivalent period; or
       (B) 70 percent of the lower living standard income level, 
     for an equivalent period.
       (2) Eligible migrant and seasonal farmworkers.--The term 
     ``eligible migrant and seasonal farmworkers'' means 
     individuals who are eligible migrant farmworkers or are 
     eligible seasonal farmworkers.
       (3) Eligible migrant farmworker.--The term ``eligible 
     migrant farmworker'' means--
       (A) an eligible seasonal farmworker described in paragraph 
     (4)(A) whose agricultural labor requires travel to a job site 
     such that the farmworker is unable to return to a permanent 
     place of residence within the same day; and
       (B) a dependent of the farmworker described in subparagraph 
     (A).
       (4) Eligible seasonal farmworker.--The term ``eligible 
     seasonal farmworker'' means--
       (A) a disadvantaged person who, for 12 consecutive months 
     out of the 24 months prior to application for the program 
     involved, has been primarily employed in agricultural labor 
     that is characterized by chronic unemployment or 
     underemployment; and
       (B) a dependent of the person described in subparagraph 
     (A).

     SEC. 363. VETERANS' WORKFORCE INVESTMENT PROGRAMS.

       (a) Authorization.--
       (1) In general.--The Secretary shall conduct, directly or 
     through grants or contracts, programs to meet the needs for 
     workforce investment activities of service-connected disabled 
     veterans, Vietnam era veterans, and recently separated 
     veterans.
       (2) Conduct of programs.--Programs supported under this 
     section may be conducted through grants and contracts with 
     public agencies and private nonprofit organizations, 
     including recipients of Federal assistance under other

[[Page S3993]]

     provisions of this title, that the Secretary determines have 
     an understanding of the unemployment problems of veterans 
     described in paragraph (1), familiarity with the area to 
     be served, and the capability to administer effectively a 
     program of workforce investment activities for such 
     veterans.
       (3) Required activities.--Programs supported under this 
     section shall include--
       (A) activities to enhance services provided to veterans by 
     other providers of workforce investment activities funded by 
     Federal, State, or local government;
       (B) activities to provide workforce investment activities 
     to such veterans that are not adequately provided by other 
     public providers of workforce investment activities; and
       (C) outreach and public information activities to develop 
     and promote maximum job and job training opportunities for 
     such veterans and to inform such veterans about employment, 
     job training, on-the-job training and educational 
     opportunities under this title, under title 38, United States 
     Code, and under other provisions of law, which activities 
     shall be coordinated with activities provided through the 
     one-stop customer service centers.
       (b) Administration of Programs.--
       (1) In general.--The Secretary shall administer programs 
     supported under this section through the Assistant Secretary 
     for Veterans' Employment and Training.
       (2) Additional responsibilities.--In carrying out 
     responsibilities under this section, the Assistant Secretary 
     for Veterans' Employment and Training shall--
       (A) be responsible for the awarding of grants and contracts 
     and the distribution of funds under this section and for the 
     establishment of appropriate fiscal controls, accountability, 
     and program performance measures for recipients of grants and 
     contracts under this section; and
       (B) consult with the Secretary of Veterans Affairs and take 
     steps to ensure that programs supported under this section 
     are coordinated, to the maximum extent feasible, with related 
     programs and activities conducted under title 38, United 
     States Code, including programs and activities conducted 
     under subchapter II of chapter 77 of such title, chapters 30, 
     31, 32, and 34 of such title, and sections 1712A, 1720A, 
     3687, and 4103A of such title.

     SEC. 364. YOUTH OPPORTUNITY GRANTS.

       (a) Grants.--
       (1) In general.--Using funds made available under section 
     302(b)(3)(A), the Secretary shall make grants to eligible 
     local partnerships to provide activities described in 
     subsection (b) for youth to increase the long-term employment 
     of eligible youth who live in empowerment zones, enterprise 
     communities, and high poverty areas and who seek assistance.
       (2) Grant period.--The Secretary may make a grant under 
     this section for a 1-year period, and may renew the grant for 
     each of the 4 succeeding years.
       (3) Grant awards.--The minimum amount that may be made 
     available to a grant recipient for the first year of a grant 
     made under this section shall be $10,000,000.
       (b) Use of Funds.--
       (1) In general.--A local partnership that receives a grant 
     under this section shall use the funds made available through 
     the grant to provide activities that meet the requirements of 
     section 316, except as provided in paragraph (2), as well as 
     youth development activities such as activities relating to 
     leadership development, citizenship, and community service, 
     and recreation activities.
       (2) Intensive placement and followup services.--In 
     providing activities under this section, a local partnership 
     shall provide--
       (A) intensive placement services; and
       (B) followup services for not less than 24 months after the 
     completion of participation in the other activities described 
     in this subsection, as appropriate.
       (c) Eligible Local Partnerships.--To be eligible to receive 
     a grant under this section, a local partnership--
       (1) shall serve a community that--
       (A) has a population of at least 50,000; and
       (B) has been designated as an empowerment zone or an 
     enterprise community under section 1391 of the Internal 
     Revenue Code of 1986; or
       (2) in a State without a zone or community described in 
     paragraph (1)(B), shall serve a community that has been 
     designated as a high poverty area by the Governor of the 
     State.
       (d) Application.--To be eligible to receive a grant under 
     this section, a local partnership shall submit an application 
     to the Secretary at such time, in such manner, and containing 
     such information as the Secretary may require, including--
       (1) a description of the activities that the local 
     partnership will provide under this section to youth in the 
     community described in subsection (c);
       (2) a description of the performance measures negotiated 
     under subsection (e), and the manner in which the local 
     partnerships will carry out the activities to meet the 
     performance measures;
       (3) a description of the manner in which the activities 
     will be linked to activities described in section 316; and
       (4) a description of the community support, including 
     financial support through leveraging additional public and 
     private resources, for the activities.
       (e) Performance Measures.--
       (1) In general.--The Secretary shall negotiate and reach 
     agreement with the local partnership on performance measures 
     that will be used to evaluate the performance of the local 
     partnership in carrying out the activities described in 
     subsection (b). Each local performance measure shall consist 
     of an indicator of performance referred to in paragraph (2) 
     or (3) of section 321(b), and a performance level referred to 
     in paragraph (2).
       (2) Performance levels.--The Secretary shall negotiate and 
     reach agreement with the local partnership regarding the 
     levels of performance expected to be achieved by the local 
     partnership on the indicators of performance.

     SEC. 365. INCENTIVE GRANTS.

       (a) In General.--The Secretary may make grants to States 
     that exceed--
       (1) the State performance measures established by the 
     Secretary of Education under this Act; and
       (2) the State performance measures established under this 
     title.
       (b) Priority.--In awarding incentive grants under this 
     section, the Secretary shall give priority to those States 
     submitting a State unified plan as described in section 501 
     that is approved by the appropriate Secretaries as described 
     in such section.
       (c) Use of Funds.--A State that receives an incentive grant 
     under this section shall use the funds made available through 
     the grant to carry out innovative programs as determined by 
     the State.

     SEC. 366. TECHNICAL ASSISTANCE.

       (a) Transition Assistance.--The Secretary shall provide 
     technical assistance to assist States in making transitions 
     from carrying out activities under provisions described in 
     section 391 to carrying out activities under this title.
       (b) Performance Improvement.--
       (1) General assistance.--
       (A) Authority.--The Secretary--
       (i) shall provide technical assistance to States that do 
     not meet a State performance measure described in section 
     321(b) for a program year; and
       (ii) may provide technical assistance to other States, 
     local areas, and grant recipients under sections 361 and 362 
     to promote the continuous improvement of the programs and 
     activities authorized under this title.
       (B) Form of assistance.--In carrying out this paragraph on 
     behalf of a State, or grant recipient under section 361 or 
     362, the Secretary, after consultation with the State or 
     grant recipient, may award grants and enter into contracts 
     and cooperative agreements.
       (C) Limitation.--Grants or contracts awarded under this 
     paragraph that are for amounts in excess of $50,000 shall 
     only be awarded on a competitive basis.
       (2) Dislocated worker technical assistance.--
       (A) Authority.--Of the amounts available pursuant to 
     section 302(a)(2), the Secretary shall reserve not more than 
     5 percent of such amounts to provide technical assistance to 
     States that do not meet the State performance measures 
     described in section 321(b) with respect to employment and 
     training activities for dislocated workers. Using such 
     reserved funds, the Secretary may provide such assistance to 
     other States, local areas, business and labor organizations, 
     and other entities involved in providing assistance to 
     dislocated workers, to promote the continuous improvement of 
     assistance provided to dislocated workers, under this title.
       (B) Training.--Amounts reserved under this paragraph may be 
     used to provide for the training of staff, including 
     specialists, who provide rapid response services. Such 
     training shall include instruction in proven methods of 
     promoting, establishing, and assisting labor-management 
     committees. Such projects shall be administered through the 
     dislocated worker office described in section 369(b).

     SEC. 367. DEMONSTRATION, PILOT, MULTISERVICE, RESEARCH, AND 
                   MULTISTATE PROJECTS.

       (a) Strategic Plan.--
       (1) In general.--After consultation with States, 
     localities, and other interested parties, the Secretary 
     shall, every 2 years, publish in the Federal Register, a plan 
     that describes the demonstration and pilot (including 
     dislocated worker demonstration and pilot), multiservice, 
     research, and multistate project priorities of the Department 
     of Labor concerning employment and training for the 5-year 
     period following the submission of the plan. Copies of the 
     plan shall be transmitted to the appropriate committees of 
     Congress.
       (2) Limitation.--With respect to a plan published under 
     paragraph (1), the Secretary shall ensure that research 
     projects (referred to in subsection (d)) are considered for 
     incorporation into the plan only after projects referred to 
     in subsections (b), (c), and (e) have been considered and 
     incorporated into the plan, and are funded only as funds 
     remain to permit the funding of such research projects.
       (3) Factors.--The plan published under paragraph (1) shall 
     contain strategies to address national employment and 
     training problems and take into account factors such as--
       (A) the availability of existing research (as of the date 
     of the publication);
       (B) the need to ensure results that have interstate 
     validity;
       (C) the benefits of economies of scale and the efficiency 
     of proposed projects; and
       (D) the likelihood that the results of the projects will be 
     useful to policymakers and stakeholders in addressing 
     employment and training problems.
       (b) Demonstration and Pilot Projects.--
       (1) In general.--Under a plan published under subsection 
     (a), the Secretary shall, through grants or contracts, carry 
     out demonstration and pilot projects for the purpose of 
     developing and implementing techniques and approaches, and 
     demonstrating the effectiveness of specialized methods, in 
     addressing employment and training needs. Such projects shall 
     include the provision of direct services to individuals to 
     enhance employment opportunities and an evaluation component.
       (2) Limitations.--
       (A) Competitive awards.--Grants or contracts awarded for 
     carrying out demonstration and pilot projects under this 
     subsection shall be

[[Page S3994]]

     awarded only on a competitive basis, except that a 
     noncompetitive award may be made in the case of a project 
     that is funded jointly with other public or private sector 
     entities that provide a substantial portion of the funding 
     for the project.
       (B) Eligible entities.--Grants or contracts may be awarded 
     under this subsection only to--
       (i) entities with recognized expertise in--

       (I) conducting national demonstration projects;
       (II) utilizing state-of-the-art demonstration methods; and
       (III) conducting evaluations of employment and training 
     projects; or

       (ii) State and local entities with expertise in operating 
     or overseeing employment and training programs.
       (C) Time limits.--The Secretary shall establish appropriate 
     time limits for carrying out demonstration and pilot projects 
     under this subsection.
       (c) Multiservice Projects.--
       (1) In general.--Under a plan published under subsection 
     (a), the Secretary shall, through grants or contracts, carry 
     out multiservice projects--
       (A) that will test an array of approaches to the provision 
     of employment and training services to a variety of targeted 
     populations;
       (B) in which the entity carrying out the project, in 
     conjunction with employers, organized labor, and other groups 
     such as the disability community, will design, develop, and 
     test various training approaches in order to determine 
     effective practices; and
       (C) that will assist in the development and replication of 
     effective service delivery strategies for targeted 
     populations for the national employment and training system 
     as a whole.
       (2) Limitations.--
       (A) Competitive awards.--Grants or contracts awarded for 
     carrying out multiservice projects under this subsection 
     shall be awarded only on a competitive basis.
       (B) Time limits.--A grant or contract shall not be awarded 
     under this subsection to the same organization for more than 
     3 consecutive years unless such grant or contract is 
     competitively reevaluated within such period.
       (d) Research.--
       (1) In general.--Under a plan published under subsection 
     (a), the Secretary shall, through grants or contracts, carry 
     out research projects that will contribute to the solution of 
     employment and training problems in the United States.
       (2) Limitations.--
       (A) Competitive awards.--Grants or contracts awarded for 
     carrying out research projects under this subsection in 
     amounts that exceed $50,000 shall be awarded only on a 
     competitive basis, except that a noncompetitive award may be 
     made in the case of a project that is funded jointly with 
     other public or private sector entities that provide a 
     substantial portion of the funding for the project.
       (B) Eligible entities.--Grants or contracts shall be 
     awarded under this subsection only to entities with 
     nationally recognized expertise in the methods, techniques, 
     and knowledge of the social sciences.
       (C) Time limits.--The Secretary shall establish appropriate 
     time limits for the duration of research projects funded 
     under this subsection.
       (e) Multistate Projects.--
       (1) In general.--
       (A) Authority.--Under a plan published under subsection 
     (a), the Secretary may, through grants or contracts, carry 
     out multistate projects that require demonstrated expertise 
     that is available at the national level to effectively 
     disseminate best practices and models for implementing 
     employment and training services, address the specialized 
     employment and training needs of particular service 
     populations, or address industrywide skill shortages.
       (B) Design of grants.--Grants or contracts awarded under 
     this subsection shall be designed to obtain information 
     relating to the provision of services under different 
     economic conditions or to various demographic groups in order 
     to provide guidance at the national and State levels about 
     how best to administer specific employment and training 
     services.
       (2) Limitations.--
       (A) Competitive awards.--Grants or contracts awarded for 
     carrying out multistate projects under this subsection shall 
     be awarded only on a competitive basis.
       (B) Time limits.--A grant or contract shall not be awarded 
     under this subsection to the same organization for more than 
     3 consecutive years unless such grant or contract is 
     competitively reevaluated within such period.
       (f) Dislocated Worker Projects.--Of the amount made 
     available pursuant to section 302(a)(2)(A) for any program 
     year, the Secretary shall use not more than 5 percent of such 
     amount to carry out demonstration and pilot projects, 
     multiservice projects, and multistate projects, relating to 
     the employment and training needs of dislocated workers. Of 
     the requirements of this section, such projects shall be 
     subject only to the provisions relating to review and 
     evaluation of applications under subsection (g). Such 
     projects may include demonstration and pilot projects 
     relating to promoting self-employment, promoting job 
     creation, averting dislocations, assisting dislocated 
     farmers, assisting dislocated fishermen, and promoting public 
     works. Such projects shall be administered through the 
     dislocated worker office described in section 369(b).
       (g) Peer Review.--The Secretary shall utilize a peer review 
     process to--
       (1) review and evaluate all applications for grants and 
     contracts in amounts that exceed $100,000 that are submitted 
     under this section; and
       (2) review and designate exemplary and promising programs 
     under this section.

     SEC. 368. EVALUATIONS.

       (a) Programs and Activities Carried Out Under This Title.--
     For the purpose of improving the management and effectiveness 
     of programs and activities carried out under this title, the 
     Secretary shall provide for the continuing evaluation of the 
     programs and activities. Such evaluations shall address--
       (1) the general effectiveness of such programs and 
     activities in relation to their cost;
       (2) the effectiveness of the performance measures relating 
     to such programs and activities;
       (3) the effectiveness of the structure and mechanisms for 
     delivery of services through such programs and activities;
       (4) the impact of the programs and activities on the 
     community and participants involved;
       (5) the impact of such programs and activities on related 
     programs and activities;
       (6) the extent to which such programs and activities meet 
     the needs of various demographic groups; and
       (7) such other factors as may be appropriate.
       (b) Other Programs and Activities.--The Secretary may 
     conduct evaluations of other federally funded employment-
     related programs and activities, including programs and 
     activities administered under--
       (1) the Wagner-Peyser Act (29 U.S.C. 49 et seq.);
       (2) the Act of August 16, 1937 (commonly known as the 
     ``National Apprenticeship Act''; 50 Stat. 664, chapter 663; 
     29 U.S.C. 50 et seq.);
       (3) the Older Americans Act of 1965 (42 U.S.C. 3001 et 
     seq.);
       (4) chapter 2 of title II of the Trade Act of 1974 (19 
     U.S.C. 2271 et seq.); and
       (5) the Federal unemployment insurance program under titles 
     III, IX, and XII of the Social Security Act (42 U.S.C. 501 et 
     seq., 1101 et seq., and 1321 et seq.).
       (c) Techniques.--Evaluations conducted under this section 
     shall utilize appropriate methodology and research designs, 
     which may include the use of control groups chosen by 
     scientific random assignment methodologies. Such an 
     evaluation shall be conducted by a person not immediately 
     involved in the administration of the program or activity 
     being evaluated.
       (d) Reports.--The entity carrying out an evaluation 
     described in subsection (a), (b), or (c) shall prepare and 
     submit to the Secretary a draft report and a final report 
     containing the results of the evaluation.
       (e) Reports to Congress.--Not later than 30 days after the 
     completion of such a draft report, the Secretary shall 
     transmit the draft report to the appropriate committees of 
     Congress. Not later than 60 days after the completion of such 
     a final report, the Secretary shall transmit the final report 
     to the appropriate committees of Congress.

     SEC. 369. NATIONAL EMERGENCY GRANTS.

       (a) In General.--The Secretary is authorized to award 
     national emergency grants in a timely manner--
       (1) to an entity described in subsection (c) 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;
       (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'') to provide disaster relief employment in 
     the area; and
       (3) to provide additional assistance to a State or local 
     partnership for eligible dislocated workers in a case in 
     which the State or local partnership has expended the funds 
     provided under this section to carry out activities described 
     in paragraphs (1) and (2) and can demonstrate the need for 
     additional funds to provide appropriate services for such 
     workers, in accordance with requirements prescribed by the 
     Secretary.
       (b) Administration.--The Secretary shall designate a 
     dislocated worker office to coordinate the functions of the 
     Secretary under this title relating to national emergency 
     grants.
       (c) 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 at such time, in such manner, and containing 
     such information as the Secretary may require.
       (2) Eligible entity.--In this subsection, the term 
     ``entity'' means a State, a local partnership, an entity 
     described in section 361(c), an employer or employer 
     association, a labor organization, and an entity determined 
     to be eligible by the Governor of the State involved.
       (d) Disaster Relief Employment Assistance Requirements.--
       (1) In general.--Funds made available under subsection 
     (a)(2)--
       (A) shall be used to provide disaster relief 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;
       (B) may be expended through public and private agencies and 
     organizations engaged in such projects; and
       (C) may be expended to provide the services authorized 
     under section 315(c).
       (2) Eligibility.--An individual shall be eligible to be 
     offered disaster relief employment under subsection (a)(2) if 
     such individual is a dislocated worker, is a long-term 
     unemployed individual, 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

[[Page S3995]]

     subsection (a)(2) for more than 6 months for work related to 
     recovery from a single natural disaster.

     SEC. 370. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--
       (1) Native american programs; migrant and seasonal 
     farmworker programs; veterans' employment programs.--Subject 
     to subsection (b)(1), there are authorized to be appropriated 
     to carry out sections 361 through 363 such sums as may be 
     necessary for each of the fiscal years 1999 through 2004.
       (2) Incentive grants; technical assistance; demonstration 
     and pilot projects; evaluations.--Subject to subsection 
     (b)(2), there are authorized to be appropriated to carry out 
     sections 365 through 368, such sums as may be necessary for 
     each of fiscal years 1999 through 2004.
       (b) Reservations.--
       (1) Native american programs; migrant and seasonal 
     farmworker programs; veterans' employment programs.--Of the 
     amount appropriated under subsection (a)(1) for a fiscal 
     year, the Secretary shall--
       (A) reserve not less than $55,000,000 for carrying out 
     section 361;
       (B) reserve not less than $70,000,000 for carrying out 
     section 362; and
       (C) reserve not less than $7,300,000 for carrying out 
     section 363.
       (2) Incentive grants; technical assistance; demonstration 
     and pilot projects; evaluations.--Of the amount appropriated 
     under subsection (a)(2) for a fiscal year, the Secretary 
     shall--
       (A) reserve 36.8 percent for carrying out section 365;
       (B) reserve 25 percent for carrying out section 366 (other 
     than section 366(b)(2));
       (C) reserve 24.2 percent of a carrying out section 367 
     (other than 367(f)); and
       (D) reserve 14 percent for carrying out section 368.
                       Subtitle D--Administration

     SEC. 371. REQUIREMENTS AND RESTRICTIONS.

       (a) Benefits.--
       (1) Wages.--
       (A) In general.--Individuals in on-the-job training or 
     individuals employed in programs and activities carried out 
     under this title 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 skills. 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.
       (B) Construction.--The reference in subparagraph (A) to 
     section 6(a)(1) of the Fair Labor Standards Act of 1938--
       (i) shall be deemed to be a reference to section 6(c) of 
     that Act (29 U.S.C. 206(c)) for individuals in the 
     Commonwealth of Puerto Rico;
       (ii) shall be deemed to be a reference to section 6(a)(3) 
     (29 U.S.C. 206(a)(3)) of that Act for individuals in American 
     Samoa; and
       (iii) shall not be applicable for individuals in other 
     territorial jurisdictions in which section 6 of the Fair 
     Labor Standards Act of 1938 (29 U.S.C. 206) does not apply.
       (2) Treatment of allowances, earnings, and payments.--
     Allowances, earnings, and payments to individuals 
     participating in programs and activities carried out under 
     this title shall not be considered to be income for the 
     purposes of determining eligibility for, and the amount of 
     income transfer and in-kind aid furnished under, any Federal 
     or federally assisted program based on need, other than as 
     provided under the Social Security Act (42 U.S.C. 301 et 
     seq.).
       (b) Labor Standards.--
       (1) Displacement.--
       (A) Prohibition.--A participant in a program or activity 
     authorized under this title (referred to in this subsection 
     as a ``specified activity'') shall not displace (including a 
     partial displacement, such as a reduction in the hours of 
     nonovertime work, wages, or employment benefits) any 
     currently employed employee (as of the date of the 
     participation).
       (B) Prohibition on impairment of contracts.--A specified 
     activity shall not impair an existing contract for services 
     or collective bargaining agreement, and no such activity that 
     would be inconsistent with the terms of a collective 
     bargaining agreement shall be undertaken without the written 
     concurrence of the labor organization and employer concerned.
       (2) Other prohibitions.--A participant in a specified 
     activity shall not be employed in a job--
       (A) when any other individual is on layoff from the same or 
     any substantially equivalent job with the participating 
     employer;
       (B) 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
       (C) that is created in a promotional line that will 
     infringe in any way on the promotional opportunities of 
     currently employed individuals (as of the date of the 
     participation).
       (3) 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.
       (4) Employment conditions.--Individuals in on-the-job 
     training or individuals employed in programs and activities 
     carried out under this title, 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.
       (5) Opportunity to submit comments.--Consistent with 
     sections 303(d)(2) and 309(c), interested members of the 
     public shall be provided an opportunity to submit comments 
     with respect to programs and activities proposed to be funded 
     under subtitle A.
       (c) Grievance Procedure.--
       (1) In general.--Each State receiving an allotment under 
     section 302 and each grant recipient under section 361 or 362 
     shall establish and maintain a procedure for grievances or 
     complaints alleging violations of the requirements of this 
     title from participants and other interested or affected 
     parties. Such procedure shall include an opportunity for a 
     hearing and be completed within 60 days after the date of the 
     filing of the grievance or complaint.
       (2) Investigation.--
       (A) In general.--The Secretary shall investigate an 
     allegation of a violation described in paragraph (1) if--
       (i) a decision relating to such violation has not been 
     reached within 60 days after the date of the filing of the 
     grievance or complaint and either party appeals the decision 
     to the Secretary; or
       (ii) a decision relating to such violation has been reached 
     within 60 days after the date of the filing and the party to 
     which such decision is adverse appeals the decision to the 
     Secretary.
       (B) Additional requirement.--The Secretary shall make a 
     final determination relating to an appeal made under 
     subparagraph (A) no later than 120 days after the date of 
     such appeal.
       (3) Remedies.--Remedies that may be imposed under this 
     subsection for a violation of any requirement of this title 
     shall be limited--
       (A) to suspension or termination of payments under this 
     title to a person that has violated any requirement of this 
     title;
       (B) to prohibition of placement of a participant with an 
     employer that has violated any requirement of this title;
       (C) 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
       (D) where appropriate, to other equitable relief.
       (4) Construction.--Nothing in paragraph (3) shall be 
     construed to prohibit a grievant or complainant from pursuing 
     a remedy authorized under another Federal, State, or local 
     law for a violation of this title.
       (d) Relocation.--
       (1) Prohibition on use of funds to encourage or induce 
     relocation.--No funds provided under this title shall be 
     used, or proposed for use, to encourage or induce the 
     relocation of a business or part of a business if such 
     relocation would result in a loss of employment for any 
     employee of such business at the original location and 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 this title for an employment and training 
     activity shall be used for customized or skill training, on-
     the-job training, or company-specific assessments of job 
     applicants or employees, for any business or part of a 
     business that has relocated, until the date that is 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 determines that a 
     violation of paragraph (1) or (2) has occurred, the Secretary 
     shall require the State that has violated such paragraph to 
     repay to the United States an amount equal to the amount 
     expended in violation of such paragraph.
       (e) Limitation on Use of Funds.--No funds available under 
     this title shall be used for employment generating 
     activities, economic development activities, activities 
     for the capitalization of businesses, investment in 
     contract bidding resource centers, or similar activities. 
     No funds available under subtitle A shall be used for 
     foreign travel.

     SEC. 372. PROMPT ALLOCATION OF FUNDS.

       (a) Allotments and Allocations Based on Latest Available 
     Data.--All allotments and allocations under section 302, 306, 
     or 366 shall be based on the latest available data and 
     estimates satisfactory to the Secretary. All data relating to 
     disadvantaged adults, disadvantaged youth, and low-income 
     individuals shall be based on the most recent satisfactory 
     data from the Bureau of the Census.
       (b) Publication in Federal Register Relating to Formula 
     Funds.--Whenever the Secretary allots funds required to be 
     allotted under section 302 or 366, the Secretary shall 
     publish in a timely fashion in the Federal Register the 
     proposed amount to be distributed to each recipient of the 
     funds.
       (c) Requirement for Funds Distributed by Formula.--All 
     funds required to be allotted or allocated under section 302, 
     306, or 366 shall be allotted or allocated within 45 days 
     after the date of enactment of the Act appropriating the 
     funds, except that, if such funds are appropriated in advance 
     as authorized by section 379(g), such funds shall be allotted 
     or allocated not later than the March 31 preceding the 
     program year for which such funds are to be available for 
     obligation.
       (d) Availability of Funds.--Funds shall be made available 
     under section 306 to the chief elected official for a local 
     area not later than 30 days after the date the funds are made 
     available to the Governor involved, under section 302, or

[[Page S3996]]

     7 days after the date the local plan for the area is 
     approved, whichever is later.

     SEC. 373. MONITORING.

       (a) In General.--The Secretary is authorized to monitor all 
     recipients of financial assistance under this title to 
     determine whether the recipients are complying with the 
     provisions of this title, including the regulations issued 
     under this title.
       (b) Investigations.--The Secretary may investigate any 
     matter the Secretary determines to be necessary to determine 
     the compliance of the recipients with this title, including 
     the regulations issued under this title. The investigations 
     authorized by this subsection may include examining records 
     (including making certified copies of the records), 
     questioning employees, and entering any premises or onto any 
     site in which any part of a program or activity of such a 
     recipient is conducted or in which any of the records of the 
     recipient are kept.
       (c) Additional Requirement.--For the purpose of any 
     investigation or hearing conducted under this title by the 
     Secretary, the provisions of section 9 of the Federal Trade 
     Commission Act (15 U.S.C. 49) (relating to the attendance of 
     witnesses and the production of documents) apply to the 
     Secretary, in the same manner and to the same extent as the 
     provisions apply to the Federal Trade Commission.

     SEC. 374. FISCAL CONTROLS; SANCTIONS.

       (a) Establishment of Fiscal Controls by States.--
       (1) In general.--Each State shall establish such fiscal 
     control and fund accounting procedures as may be necessary to 
     assure the proper disbursal of, and accounting for, Federal 
     funds allocated to local areas under subtitle A. Such 
     procedures shall ensure that all financial transactions 
     carried out under subtitle A are conducted and records 
     maintained in accordance with generally accepted accounting 
     principles applicable in each State.
       (2) Regulations.--The Secretary shall prescribe regulations 
     establishing uniform cost principles that are substantially 
     equivalent to such principles generally applicable to 
     recipients of Federal grant funds, and are consistent with 
     appropriate circulars of the Office of Management and Budget. 
     At a minimum, such regulations shall provide that--
       (A) to be allowable, costs incurred under this title 
     shall--
       (i) be necessary and reasonable for proper and efficient 
     administration of the programs and activities carried out 
     under this title;
       (ii) except for the administrative funds described in 
     sections 306(b)(5) and 314(c)(2), be allocable to the 
     programs and activities carried out under this title; and
       (iii) not be a general expense required to carry out the 
     overall responsibilities of State or local governments; and
       (B) procurement transactions between local partnerships and 
     such governments shall be conducted only on a cost-
     reimbursable basis.
       (3) Procurement standards.--Each Governor, in accordance 
     with minimum requirements established by the Secretary (after 
     consultation with the Governors) in regulations, shall 
     prescribe and implement procurement standards to ensure 
     fiscal accountability and prevent fraud and abuse in programs 
     and activities carried out under this title.
       (4) Monitoring.--The Governor shall conduct onsite 
     monitoring of each local area within the State to ensure 
     compliance with the procurement standards prescribed pursuant 
     to paragraph (3).
       (5) Action by governor.--If the Governor determines that a 
     local area is not in compliance with the procurement 
     standards prescribed pursuant to paragraph (3), the Governor 
     shall--
       (A) require corrective action to secure prompt compliance; 
     and
       (B) impose the sanctions provided under subsection (b) in 
     the event of failure to take the required corrective action.
       (6) Certification.--The Governor shall, every 3 years, 
     certify to the Secretary that--
       (A) the State has implemented the procurement standards 
     prescribed under paragraph (3);
       (B) the State has monitored local areas to ensure 
     compliance with the procurement standards as required under 
     paragraph (4); and
       (C) the State has taken appropriate action to secure 
     compliance pursuant to paragraph (5).
       (7) Action by the secretary.--If the Secretary determines 
     that the Governor has not fulfilled the requirements of this 
     subsection, the Secretary shall--
       (A) require corrective action to secure prompt compliance; 
     and
       (B) impose the sanctions provided under subsection (f) in 
     the event of failure of the Governor to take the required 
     appropriate action to secure compliance.
       (b) Substantial Violation.--
       (1) Action by governor.--If, as a result of a financial or 
     compliance audit or otherwise, the Governor determines that 
     there is a substantial violation of a specific provision of 
     this title, including regulations issued under this title, 
     and corrective action has not been taken, the Governor shall 
     impose a reorganization plan, which may include--
       (A) decertifying the local partnership involved in 
     accordance with section 308(c)(3);
       (B) prohibiting the use of providers who have been 
     identified as eligible providers of workforce investment 
     activities under chapter 3 of subtitle A;
       (C) selecting an alternative entity to administer a program 
     or activity for the local area involved;
       (D) merging the local area into 1 or more other local 
     areas; or
       (E) making such other changes as the Secretary or Governor 
     determines to be necessary to secure compliance.
       (2) Appeal.--The action taken by the Governor pursuant to 
     paragraph (1) may be appealed to the Secretary, who shall 
     make a final decision on the appeal not later than 60 days 
     after the receipt of the appeal.
       (3) Action by secretary.--If the Governor fails to take 
     promptly the action required under paragraph (1), the 
     Secretary shall take such action.
       (c) Access by Comptroller General.--For the purpose of 
     evaluating and reviewing programs and activities established 
     or provided for by this title, the Comptroller General shall 
     have access to and the right to copy any books, accounts, 
     records, correspondence, or other documents pertinent to such 
     programs and activities that are in the possession, custody, 
     or control of a State, a local partnership, any recipient of 
     funds under this title, or any subgrantee or contractor of 
     such a recipient.
       (d) Repayment of Certain Amounts to the United States.--
       (1) In general.--Every recipient of funds under this title 
     shall repay to the United States amounts found not to have 
     been expended in accordance with this title.
       (2) Offset of repayment.--If the Secretary determines that 
     a State has expended funds made available under this title in 
     a manner contrary to the requirements of this title, 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 area of the State has expended 
     funds contrary to the requirements of this title, 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 area from 
     funds reserved for the administrative costs of the local 
     programs involved, as appropriate.
       (5) Limitations.--A deduction made by a State as described 
     in paragraph (4) shall not be made until such time as the 
     Governor has taken appropriate corrective action to ensure 
     full compliance within such local area with regard to 
     appropriate expenditures of funds under this title.
       (e) Repayment of Amounts.--
       (1) In general.--Each recipient of funds under this title 
     shall be liable to repay the amounts described in subsection 
     (d)(1), from funds other than funds received under this 
     title, upon a determination by the Secretary that the 
     misexpenditure of funds was due to willful disregard of the 
     requirements of this title, gross negligence, failure to 
     observe accepted standards of administration, or a pattern of 
     misexpenditure as described in paragraphs (2) and (3) of 
     subsection (d). No such determination shall be made under 
     this subsection or subsection (d) until notice and 
     opportunity for a fair hearing has been given to the 
     recipient.
       (2) Factors in imposing sanctions.--In determining whether 
     to impose any sanction authorized by this section against a 
     recipient for violations by a subgrantee or contractor of 
     such recipient under this title (including the regulations 
     issued under this title), the Secretary shall first determine 
     whether such recipient has adequately demonstrated that the 
     recipient has--
       (A) established and adhered to an appropriate system for 
     the award and monitoring of grants and contracts with 
     subgrantees and contractors that contains acceptable 
     standards for ensuring accountability;
       (B) entered into a written grant agreement or contract with 
     such subgrantee or contractor that established clear goals 
     and obligations in unambiguous terms;
       (C) acted with due diligence to monitor the implementation 
     of the grant agreement or contract, including the carrying 
     out of the appropriate monitoring activities (including 
     audits) at reasonable intervals; and
       (D) taken prompt and appropriate corrective action upon 
     becoming aware of any evidence of a violation of this title, 
     including regulations issued under this title, by such 
     subgrantee or contractor.
       (3) Waiver.--If the Secretary determines that the recipient 
     has demonstrated substantial compliance with the requirements 
     of paragraph (2), the Secretary may waive the imposition of 
     sanctions authorized by this section upon such recipient. The 
     Secretary is authorized to impose any sanction consistent 
     with the provisions of this title and any applicable Federal 
     or State law directly against any subgrantee or contractor 
     for violation of this title, including regulations issued 
     under this title.
       (f) Immediate Termination or Suspension of Assistance in 
     Emergency Situations.--In emergency situations, if the 
     Secretary determines it is necessary to protect the integrity 
     of the funds or ensure the proper operation of the program or 
     activity involved, the Secretary may immediately terminate or 
     suspend financial assistance, in whole or in part, to the 
     recipient if the recipient is given prompt notice and the 
     opportunity for a subsequent hearing within 30 days after 
     such termination or suspension. The Secretary shall not 
     delegate any of the functions or authority specified in this 
     subsection, other than to an officer whose appointment is 
     required to be made by and with the advice and consent of the 
     Senate.
       (g) Discrimination Against Participants.--If the Secretary 
     determines that any recipient of funds under this title has 
     discharged or in any other manner discriminated in violation 
     of section 378 against, a participant or any other individual 
     in connection with the administration of the program or 
     activity involved, or any individual because such individual 
     has filed any complaint or instituted or caused to be 
     instituted any proceeding under or related to this

[[Page S3997]]

     title, or has testified or is about to testify in any such 
     proceeding or investigation under or related to this title, 
     or otherwise unlawfully denied to any individual a benefit to 
     which that individual is entitled under the provisions of 
     this title, including regulations issued under this title, 
     the Secretary shall, within 30 days after the date of the 
     determination, take such action or order such corrective 
     measures, as may be necessary, with respect to the recipient 
     or the aggrieved individual.
       (h) Remedies.--The remedies described in this section shall 
     not be construed to be the exclusive remedies available for 
     violations described in this section.

     SEC. 375. REPORTS; RECORDKEEPING; INVESTIGATIONS.

       (a) Reports.--
       (1) In general.--Recipients of funds under this title shall 
     keep records that are sufficient to permit the preparation of 
     reports required by this title and to permit the tracing of 
     funds to a level of expenditure adequate to ensure that the 
     funds have not been spent unlawfully.
       (2) Submission to the secretary.--Every such recipient 
     shall maintain such records and submit such reports, in such 
     form and containing such information, as the Secretary may 
     require regarding the performance of programs and activities 
     carried out under this title. Such records and reports shall 
     be submitted to the Secretary but shall not be required to be 
     submitted more than once each quarter unless specifically 
     requested by Congress or a committee of Congress.
       (3) Maintenance of standardized records.--In order to allow 
     for the preparation of the reports required under subsection 
     (c), such recipients shall maintain standardized records for 
     all individual participants and provide to the Secretary a 
     sufficient number of such records to provide for an adequate 
     analysis of the records.
       (4) Availability to the public.--
       (A) In general.--Except as provided in subparagraph (B), 
     records maintained by such recipients pursuant to this 
     subsection shall be made available to the public upon 
     request.
       (B) Exception.--Subparagraph (A) shall not apply to--
       (i) information, the disclosure of which would constitute a 
     clearly unwarranted invasion of personal privacy; and
       (ii) trade secrets, or commercial or financial information, 
     that is obtained from a person and privileged or 
     confidential.
       (C) Fees to recover costs.--Such recipients may charge fees 
     sufficient to recover costs applicable to the processing of 
     requests for records under subparagraph (A).
       (b) Investigations of Use of Funds.--
       (1) In general.--
       (A) Secretary.--In order to evaluate compliance with the 
     provisions of this title, the Secretary shall conduct, in 
     several States, in each fiscal year, investigations of the 
     use of funds received by recipients under this title.
       (B) Comptroller general of the united states.--In order to 
     ensure compliance with the provisions of this title, the 
     Comptroller General of the United States may conduct 
     investigations of the use of funds received under this title 
     by any recipient.
       (2) Prohibition.--In conducting any investigation under 
     this title, the Secretary or the Comptroller General of the 
     United States may not request the compilation of any 
     information that the recipient is not otherwise required to 
     compile and that is not readily available to such recipient.
       (3) Audits.--
       (A) In general.--In carrying out any audit under this title 
     (other than any initial audit survey or any audit 
     investigating possible criminal or fraudulent conduct), 
     either directly or through grant or contract, the Secretary, 
     the Inspector General of the Department of Labor, or the 
     Comptroller General of the United States shall furnish to the 
     State, recipient, or other entity to be audited, advance 
     notification of the overall objectives and purposes of the 
     audit, and any extensive recordkeeping or data requirements 
     to be met, not later than 14 days (or as soon as 
     practicable), prior to the commencement of the audit.
       (B) Notification requirement.--If the scope, objectives, or 
     purposes of the audit change substantially during the course 
     of the audit, the entity being audited shall be notified of 
     the change as soon as practicable.
       (C) Additional requirement.--The reports on the results of 
     such audits shall cite the law, regulation, policy, or other 
     criteria applicable to any finding contained in the reports.
       (D) Rule of construction.--Nothing contained in this title 
     shall be construed so as to be inconsistent with the 
     Inspector General Act of 1978 (5 U.S.C. App.) or government 
     auditing standards issued by the Comptroller General of the 
     United States.
       (c) Accessibility of Reports.--Each State, each local 
     partnership, and each recipient (other than a subrecipient, 
     subgrantee, or contractor of a recipient) receiving funds 
     under this title shall--
       (1) make readily accessible such reports concerning its 
     operations and expenditures as shall be prescribed by the 
     Secretary;
       (2) prescribe and maintain comparable management 
     information systems, in accordance with guidelines that shall 
     be prescribed by the Secretary, designed to facilitate the 
     uniform compilation, cross tabulation, and analysis of 
     programmatic, participant, and financial data, on statewide, 
     local area, and other appropriate bases, necessary for 
     reporting, monitoring, and evaluating purposes, including 
     data necessary to comply with section 378; and
       (3) monitor the performance of providers in complying with 
     the terms of grants, contracts, or other agreements made 
     pursuant to this title.
       (d) Information To Be Included in Reports.--
       (1) In general.--The reports required in subsection (c) 
     shall include information regarding programs and activities 
     carried out under this title pertaining to--
       (A) the relevant demographic characteristics (including 
     race, ethnicity, sex, and age) and other related information 
     regarding participants;
       (B) the programs and activities in which participants are 
     enrolled, and the length of time that participants are 
     engaged in such programs and activities;
       (C) outcomes of the programs and activities for 
     participants, including the occupations of participants, and 
     placement for participants in nontraditional employment;
       (D) specified costs of the programs and activities; and
       (E) information necessary to prepare reports to comply with 
     section 378.
       (2) Additional requirement.--The Secretary shall ensure 
     that all elements of the information required for the reports 
     described in paragraph (1) are defined and reported 
     uniformly.
       (e) Retention of Records.--The Governor of a State that 
     receives funds under this title shall ensure that 
     requirements are established for retention of all records of 
     the State pertinent to all grants awarded, and contracts and 
     agreements entered into, under this title, including 
     financial, statistical, property, and participant records and 
     supporting documentation. For funds allotted to a State under 
     this title for any program year, the State shall retain the 
     records for 2 subsequent program years. The State shall 
     retain records for nonexpendable property that is used to 
     carry out this title for a period of 3 years after final 
     disposition of the property.
       (f) Quarterly Financial Reports.--
       (1) In general.--Each local partnership in the State shall 
     submit quarterly financial reports to the Governor with 
     respect to programs and activities carried out under this 
     title. Such reports shall include information identifying all 
     program and activity costs by cost category in accordance 
     with generally accepted accounting principles and by year of 
     the appropriation involved.
       (2) Additional requirement.--Each State shall submit to the 
     Secretary, on a quarterly basis, a summary of the reports 
     submitted to the Governor pursuant to paragraph (1).
       (g) Maintenance of Additional Records.--Each State and 
     local partnership shall maintain records with respect to 
     programs and activities carried out under this title that 
     identify--
       (1) any income or profits earned, including such income or 
     profits earned by subrecipients; and
       (2) any costs incurred (such as stand-in costs) that are 
     otherwise allowable except for funding limitations.
       (h) Cost Categories.--In requiring entities to maintain 
     records of costs by category under this title, the Secretary 
     shall require only that the costs be categorized as 
     administrative or programmatic costs.

     SEC. 376. ADMINISTRATIVE ADJUDICATION.

       (a) In General.--Whenever any applicant for financial 
     assistance under this title is dissatisfied because the 
     Secretary has made a determination not to award financial 
     assistance in whole or in part to such applicant, the 
     applicant may request a hearing before an administrative law 
     judge of the Department of Labor. A similar hearing may also 
     be requested by any recipient for whom a corrective action 
     has been required or a sanction has been imposed by the 
     Secretary under section 374. Except to the extent provided 
     for in section 371(c) or 378, all other disputes arising 
     under this title relating to the manner in which the 
     recipient carries out a program or activity under this title 
     shall be adjudicated under grievance procedures established 
     by the recipient or under applicable law other than this 
     title.
       (b) Appeal.--The decision of the administrative law judge 
     shall constitute final action by the Secretary unless, within 
     20 days after receipt of the decision of the administrative 
     law judge, a party dissatisfied with the decision or any part 
     of the decision has filed exceptions with the Secretary 
     specifically identifying the procedure, fact, law, or policy 
     to which exception is taken. Any exception not specifically 
     urged shall be deemed to have been waived. After the 20-day 
     period the decision of the administrative law judge shall 
     become the final decision of the Secretary unless the 
     Secretary, within 30 days after such filing, has notified the 
     parties that the case involved has been accepted for review.
       (c) Time Limit.--Any case accepted for review by the 
     Secretary under subsection (b) shall be decided within 180 
     days after such acceptance. If the case is not decided within 
     the 180-day period, the decision of the administrative law 
     judge shall become the final decision of the Secretary at the 
     end of the 180-day period.
       (d) Additional Requirement.--The provisions of section 377 
     shall apply to any final action of the Secretary under this 
     section.

     SEC. 377. JUDICIAL REVIEW.

       (a) Review.--
       (1) Petition.--With respect to any final order by the 
     Secretary under section 376 by which the Secretary awards, 
     declines to award, or only conditionally awards, financial 
     assistance under this title, or any final order of the 
     Secretary under section 376 with respect to a corrective 
     action or sanction imposed under section 374, any party to a 
     proceeding which resulted in such final order may obtain 
     review of such final order in the United States Court of 
     Appeals having jurisdiction over the applicant or recipient 
     of funds involved, by filing a review petition within 30 days 
     after the date of issuance of such final order.
       (2) Action on petition.--The clerk of the court shall 
     transmit a copy of the review petition to the Secretary who 
     shall file the record on

[[Page S3998]]

      which the final order was entered as provided in section 
     2112 of title 28, United States Code. The filing of a review 
     petition shall not stay the order of the Secretary, unless 
     the court orders a stay. Petitions filed under this 
     subsection shall be heard expeditiously, if possible within 
     10 days after the date of filing of a reply to the petition.
       (3) Standard and scope of review.--No objection to the 
     order of the Secretary shall be considered by the court 
     unless the objection was specifically urged, in a timely 
     manner, before the Secretary. The review shall be limited to 
     questions of law and the findings of fact of the Secretary 
     shall be conclusive if supported by substantial evidence.
       (b) Judgment.--The court shall have jurisdiction to make 
     and enter a decree affirming, modifying, or setting aside the 
     order of the Secretary in whole or in part. The judgment of 
     the court regarding the order shall be final, subject to 
     certiorari review by the Supreme Court as provided in section 
     1254(1) of title 28, United States Code.

     SEC. 378. NONDISCRIMINATION.

       (a) Prohibited Discrimination.--
       (1) Prohibition on discrimination in federal programs and 
     activities.--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 in 
     whole or in part under this title shall be considered to 
     be programs and activities receiving Federal financial 
     assistance, and education programs and activities 
     receiving Federal financial assistance.
       (2) Prohibition of discrimination regarding participation, 
     benefits, and employment.--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, disability, or political affiliation or belief.
       (3) Prohibition on assistance for facilities for sectarian 
     instruction or religious worship.--Participants shall not be 
     employed under this title to carry out the construction, 
     operation, or maintenance of any part of any facility that is 
     used or to be used for sectarian instruction or as a place 
     for religious worship.
       (4) Prohibition on discrimination on basis of participant 
     status.--No person may discriminate against an individual who 
     is a participant in a program or activity that receives funds 
     under this title, with respect to the terms and conditions 
     affecting, or rights provided to, the individual, solely 
     because of the status of the individual as a participant, in 
     carrying out any endeavor that involves--
       (A) participants in programs and activities that receive 
     funding under this title; and
       (B) persons who receive no assistance under this title.
       (5) Prohibition on discrimination against certain 
     noncitizens.--Participation in programs and activities or 
     receiving funds under this title shall be available to 
     citizens and nationals of the United States, lawfully 
     admitted permanent resident aliens, refugees, asylees, and 
     parolees, other aliens lawfully present in the United States, 
     and other individuals authorized by the Attorney General to 
     work in the United States.
       (b) Action of Secretary.--Whenever the Secretary finds that 
     a State or other recipient of funds under this title has 
     failed to comply with a provision of law referred to in 
     subsection (a)(1), or with paragraph (2), (3), (4), or (5) of 
     subsection (a), including an applicable regulation prescribed 
     to carry out such provision or paragraph, the Secretary shall 
     notify such State or recipient and shall request that the 
     State or recipient comply. If within a reasonable period of 
     time, not to exceed 60 days, the State or recipient fails or 
     refuses to comply, the Secretary may--
       (1) refer the matter to the Attorney General with a 
     recommendation that an appropriate civil action be 
     instituted;
       (2) exercise the powers and functions provided to the head 
     of a Federal department or agency under the Age 
     Discrimination Act of 1975, title V of the Rehabilitation Act 
     of 1973 (29 U.S.C. 791 et seq.), title IX of the Education 
     Amendments of 1972, or title VI of the Civil Rights Act of 
     1964, as may be applicable; or
       (3) take such other action as may be provided by law.
       (c) Action of Attorney General.--When a matter is referred 
     to the Attorney General pursuant to subsection (b)(1), or 
     whenever the Attorney General has reason to believe that a 
     State or other recipient of funds under this title is engaged 
     in a pattern or practice of discrimination in violation of a 
     provision of law referred to in subsection (a)(1) or in 
     violation of paragraph (2), (3), (4), or (5) of subsection 
     (a), 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 Members.--For purposes of this section, Job 
     Corps members shall be considered as the ultimate 
     beneficiaries of an education program or activity receiving 
     Federal financial assistance.

     SEC. 379. ADMINISTRATIVE PROVISIONS.

       (a) In General.--The Secretary may, in accordance with 
     chapter 5 of title 5, United States Code, prescribe rules and 
     regulations to carry out this title to the extent necessary 
     to implement, administer, and ensure compliance with the 
     requirements of this title. Such rules and regulations may 
     include provisions making adjustments authorized by section 
     6504 of title 31, United States Code. All such rules and 
     regulations shall be published in the Federal Register at 
     least 30 days prior to their effective dates. Copies of each 
     such rule or regulation shall be transmitted to the 
     appropriate committees of Congress on the date of such 
     publication and shall contain, with respect to each material 
     provision of such rule or regulation, a citation to the 
     particular substantive section of law that is the basis for 
     the provision.
       (b) Acquisition of Certain Property and Services.--The 
     Secretary is authorized, in carrying out this title, to 
     accept, purchase, or lease in the name of the Department of 
     Labor, and employ or dispose of in furtherance of the 
     purposes of this title, any money or property, real, 
     personal, or mixed, tangible or intangible, received by 
     gift, devise, bequest, or otherwise, and to accept 
     voluntary and uncompensated services notwithstanding the 
     provisions of section 1342 of title 31, United States 
     Code.
       (c) Authority To Enter Into Certain Agreements and To Make 
     Certain Expenditures.--The Secretary may make such grants, 
     enter into such contracts or agreements, establish such 
     procedures, and make such payments, in installments and in 
     advance or by way of reimbursement, or otherwise allocate or 
     expend such funds under this title, as may be necessary to 
     carry out this title, including making expenditures for 
     construction, repairs, and capital improvements, and 
     including making necessary adjustments in payments on account 
     of over-payments or underpayments.
       (d) Annual Report.--The Secretary shall prepare and submit 
     to Congress an annual report regarding the programs and 
     activities carried out under this title. The Secretary shall 
     include in such report--
       (1) a summary of the achievements, failures, and problems 
     of the programs and activities in meeting the objectives of 
     this title;
       (2) a summary of major findings from research, evaluations, 
     pilot projects, and experiments conducted under this title in 
     the fiscal year prior to the submission of the report;
       (3) recommendations for modifications in the programs and 
     activities based on analysis of such findings; and
       (4) such other recommendations for legislative or 
     administrative action as the Secretary determines to be 
     appropriate.
       (e) Utilization of Services and Facilities.--The Secretary 
     is authorized, in carrying out this title, under the same 
     procedures as are applicable under subsection (c) or to the 
     extent permitted by law other than this title, to accept and 
     use the services and facilities of departments, agencies, and 
     establishments of the United States. The Secretary is also 
     authorized, in carrying out this title, to accept and use the 
     services and facilities of the agencies of any State or 
     political subdivision of a State, with the consent of the 
     State or political subdivision.
       (f) Obligational Authority.--Notwithstanding any other 
     provision of this title, the Secretary shall have no 
     authority to enter into contracts, grant agreements, or other 
     financial assistance agreements under this title except to 
     such extent and in such amounts as are provided in advance in 
     appropriations Acts.
       (g) Program Year.--
       (1) In general.--Appropriations for any fiscal year for 
     programs and activities carried out under this title shall be 
     available for obligation only on the basis of a program year. 
     The program year shall begin on July 1 in the fiscal year for 
     which the appropriation is made.
       (2) Availability.--Funds obligated for any program year for 
     a program or activity carried out under this title may be 
     expended by each State receiving such funds during that 
     program year and the 2 succeeding program years. Funds 
     received by local areas from States under this title during a 
     program year may be expended during that program year and the 
     succeeding program year. No amount of the funds described in 
     this paragraph shall be deobligated on account of a rate of 
     expenditure that is consistent with a State plan, an 
     operating plan described in section 341, or a plan, grant 
     agreement, contract, application, or other agreement 
     described in subtitle C, as appropriate.
       (h) Enforcement of Military Selective Service Act.--The 
     Secretary shall ensure that each individual participating in 
     any program or activity established under this title, or 
     receiving any assistance or benefit under this title, has not 
     violated section 3 of the Military Selective Service Act (50 
     U.S.C. App. 453) by not presenting and submitting to 
     registration as required pursuant to such section. The 
     Director of the Selective Service System shall cooperate with 
     the Secretary to enable the Secretary to carry out this 
     subsection.
       (i) Waivers.--
       (1) Special rule.--With respect to a State that has been 
     granted a waiver under the provisions relating to training 
     and employment services of the Department of Labor in title I 
     of the Departments of Labor, Health and Human Services, and 
     Education, and Related Agencies Appropriations Act, 1997 
     (Public Law 104-208; 110 Stat. 3009-234), the authority 
     provided under such waiver shall continue in effect and 
     apply, and include a waiver of the related provisions of 
     subtitle A and this subtitle, for the duration of the initial 
     waiver.
       (2) General authority.--Notwithstanding any other provision 
     of law, the Secretary may waive for a State, or a local area 
     in a State, pursuant to a request submitted by the Governor 
     of the State (in consultation with appropriate local elected 
     officials) that meets the requirements of paragraph (3)--
       (A) any of the statutory or regulatory requirements of 
     subtitle A or this subtitle (except for requirements relating 
     to wage and labor standards, worker rights, participation 
     and protection of participants, grievance procedures and 
     judicial review, nondiscrimination, allocation of

[[Page S3999]]

     funds to local areas, eligibility of providers or 
     participants, and the establishment and functions of local 
     areas); 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) (excluding requirements relating to the 
     provision of services to unemployment insurance claimants 
     (including veterans) but including reporting requirements 
     relating to such provision of services, and excluding 
     requirements relating to universal access to basic labor 
     exchange services without cost to jobseekers).
       (3) Requests.--A Governor requesting a waiver under 
     paragraph (2) shall submit a plan to the Secretary to improve 
     the statewide workforce investment system that--
       (A) identifies the statutory or regulatory requirements 
     that are requested to be waived and the goals that the State 
     or local area in the State, as appropriate, intends to 
     achieve as a result of the waiver;
       (B) describes the actions that the State or local area, as 
     appropriate, has 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 such a waiver, and the process by which notice 
     and an opportunity to comment on such request has been 
     provided to the organizations identified in section 
     308(b)(2).
       (4) Conditions.--Not later than 90 days after the date of 
     the original submission of a request for a waiver under 
     paragraph (2), the Secretary shall provide a waiver under 
     this subsection if and only to the extent that--
       (A) the Secretary determines that the requirements 
     requested to be waived impede the ability of the State or 
     local area, as appropriate, to implement the plan described 
     in paragraph (3); and
       (B) the State has executed a memorandum of understanding 
     with the Secretary requiring such State to meet, or ensure 
     that the local area meets, agreed-upon outcomes and to 
     implement other appropriate measures to ensure 
     accountability.

     SEC. 380. STATE LEGISLATIVE AUTHORITY.

       (a) Authority of State Legislature.--Nothing in this title 
     shall be interpreted to preclude the enactment of State 
     legislation providing for the implementation, consistent with 
     the provisions of this title, of the activities assisted 
     under this title. Any funds received by a State under this 
     title shall be subject to appropriation by the State 
     legislature, consistent with the terms and conditions 
     required under this title.
       (b) Interstate Compacts and Cooperative Agreements.--In the 
     event that compliance with provisions of this title would be 
     enhanced by compacts and cooperative agreements between 
     States, the consent of Congress is given to States to enter 
     into such compacts and agreements to facilitate such 
     compliance, subject to the approval of the Secretary.
             Subtitle E--Repeals and Conforming Amendments

     SEC. 391. REPEALS.

       (a) General Immediate Repeals.--The following provisions 
     are repealed:
       (1) Section 204 of the Immigration Reform and Control Act 
     of 1986 (8 U.S.C. 1255a note).
       (2) Title II of Public Law 95-250 (92 Stat. 172).
       (3) The Displaced Homemakers Self-Sufficiency Assistance 
     Act (29 U.S.C. 2301 et seq.).
       (4) Section 211 of the Appalachian Regional Development Act 
     of 1965 (40 U.S.C. App. 211).
       (5) Subtitle C of title VII of the Stewart B. McKinney 
     Homeless Assistance Act (42 U.S.C. 11441 et seq.), except 
     section 738 of such title (42 U.S.C. 11448).
       (6) Subchapter I of chapter 421 of title 49, United States 
     Code.
       (b) Subsequent Repeals.--The following provisions are 
     repealed:
       (1) The Job Training Partnership Act (29 U.S.C. 1501 et 
     seq.).
       (2) Title VII of the Stewart B. McKinney Homeless 
     Assistance Act (42 U.S.C. 11421 et seq.), except subtitle B 
     and section 738 of such title (42 U.S.C. 11431 et seq. and 
     11448).

     SEC. 392. CONFORMING AMENDMENTS.

       (a) Preparation.--After consultation with the appropriate 
     committees of Congress and the Director of the Office of 
     Management and Budget, the Secretary shall prepare 
     recommended legislation containing technical and conforming 
     amendments to reflect the changes made by this subtitle.
       (b) Submission to Congress.--Not later than 6 months after 
     the date of enactment of this Act, the Secretary shall submit 
     to Congress the recommended legislation referred to under 
     paragraph (1).

     SEC. 393. EFFECTIVE DATES.

       (a) Immediate Repeals.--The repeals made by section 391(a) 
     shall take effect on the date of enactment of this Act.
       (b) Subsequent Repeals.--The repeals made by section 391(b) 
     shall take effect on July 1, 1999.
           TITLE IV--WORKFORCE INVESTMENT-RELATED ACTIVITIES
                     Subtitle A--Wagner-Peyser Act

     SEC. 401. DEFINITIONS.

       Section 2 of the Wagner-Peyser Act (29 U.S.C. 49a) is 
     amended--
       (1) in paragraph (1)--
       (A) by striking ``or officials''; and
       (B) by striking ``Job Training Partnership Act'' and 
     inserting ``Workforce Investment Partnership Act of 1997'';
       (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 investment area' means a 
     local workforce investment area designated under section 307 
     of the Workforce Investment Partnership Act of 1997;
       ``(3) the term `local workforce investment partnership' 
     means a local workforce investment partnership established 
     under section 308 of the Workforce Investment Partnership Act 
     of 1997;
       ``(4) the term `one-stop customer service system' means a 
     one-stop customer service system established under section 
     315(b) of the Workforce Investment Partnership Act of 
     1997;''; and
       (5) in paragraph (5) (as redesignated in paragraph (3)), by 
     striking the semicolon and inserting ``; and''.

     SEC. 402. 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 shall--
       ``(1) assist in the coordination and development of a 
     nationwide system of public labor exchange services, provided 
     as part of the one-stop customer service systems of the 
     States;
       ``(2) assist in the development of continuous improvement 
     models for such nationwide system that ensure private sector 
     satisfaction with the system and meet the demands of 
     jobseekers relating to the system; and
       ``(3) ensure, for individuals otherwise eligible to receive 
     unemployment compensation, the provision of reemployment 
     services and other activities in which the individuals are 
     required to participate to receive the compensation.''.
       (b) Conforming Amendments.--Section 508(b)(1) of the 
     Unemployment Compensation Amendments of 1976 (42 U.S.C. 
     603a(b)(1)) 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. 403. 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. 404. APPROPRIATIONS.

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

     SEC. 405. 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 investment 
     partnership'';
       (2) in subsection (c)(2), by striking ``any program under'' 
     and all that follows and inserting ``any workforce investment 
     activity carried out under the Workforce Investment 
     Partnership Act of 1997.'';
       (3) in subsection (d)--
       (A) by striking ``United States Employment Service'' and 
     inserting ``Secretary''; and
       (B) by striking ``Job Training Partnership Act'' and 
     inserting ``Workforce Investment Partnership Act of 1997''; 
     and
       (4) by adding at the end the following:
       ``(e) All job search, placement, recruitment, labor market 
     information, and other labor exchange services authorized 
     under subsection (a) shall be provided as part of the one-
     stop customer service system established by the State.''.

     SEC. 406. 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 304 of the Workforce Investment 
     Partnership Act of 1997, detailed plans for carrying out the 
     provisions of this Act within such State.'';
       (2) by striking subsections (b), (c), and (e);
       (3) by redesignating subsection (d) as subsection (b); and
       (4) by adding at the end the following:
       ``(c) The part of the State plan described in subsection 
     (a) shall include the information described in paragraphs (8) 
     and (16) of section 304(b) of the Workforce Investment 
     Partnership Act of 1997.''.

     SEC. 407. REPEAL OF FEDERAL ADVISORY COUNCIL.

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

     SEC. 408. 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. 409. LABOR MARKET INFORMATION.

       The Wagner-Peyser Act is amended--
       (1) by redesignating section 15 (29 U.S.C. 49 note) as 
     section 16; and
       (2) by inserting after section 14 (29 U.S.C. 49l-1) the 
     following:

     ``SEC. 15. LABOR MARKET INFORMATION.

       ``(a) System Content.--
       ``(1) In general.--The Secretary, in accordance with the 
     provisions of this section, shall oversee the development, 
     maintenance, and continuous improvement of a system of labor 
     market information that includes--
       ``(A) statistical data from cooperative statistical survey 
     and projection programs and data from administrative 
     reporting systems that, taken together, enumerate, estimate, 
     and project the employment opportunities at the national, 
     State, and local levels in a timely manner, including data 
     on--
       ``(i) employment and unemployment status of the national, 
     State, and local populations, as

[[Page S4000]]

     such data are developed by the Bureau of Labor Statistics and 
     other sources;
       ``(ii) industrial distribution of occupations, as well as 
     current and projected employment opportunities and skill 
     trends by occupation and industry, with particular attention 
     paid to State and local employment opportunities;
       ``(iii) the incidence of, industrial and geographical 
     location of, and number of workers displaced by, permanent 
     layoffs and plant closings; and
       ``(iv) employee information maintained in a longitudinal 
     manner and collected (as of the date of enactment of the 
     Workforce Investment Partnership Act of 1997) by States;
       ``(B) State and local employment information, and other 
     appropriate statistical data related to labor market dynamics 
     (compiled for States and localities with technical assistance 
     provided by the Secretary), which shall--
       ``(i) be current and comprehensive, as of the date used;
       ``(ii) assist individuals to make informed choices relating 
     to employment and training; and
       ``(iii) assist employers to locate, identify skill traits 
     of, and train individuals who are seeking employment and 
     training;
       ``(C) technical standards (which the Secretary shall make 
     publicly available) for data and information described in 
     subparagraphs (A) and (B) that, at a minimum, meet the 
     criteria of chapter 35 of title 44, United States Code;
       ``(D) procedures to ensure compatibility and additivity of 
     the data and information described in subparagraphs (A) and 
     (B) from national, State, and local levels;
       ``(E) procedures to support standardization and aggregation 
     of data from administrative reporting systems described in 
     subparagraph (A) of employment-related programs;
       ``(F) analysis of data and information described in 
     subparagraphs (A) and (B) for uses such as State and local 
     policymaking;
       ``(G) wide dissemination of such data, information, and 
     analysis, training for users of the data, information, and 
     analysis, and voluntary technical standards for dissemination 
     mechanisms; and
       ``(H) programs of--
       ``(i) research and demonstration; and
       ``(ii) technical assistance for States and localities.
       ``(2) Information to be confidential.--
       ``(A) In general.--No officer or employee of the Federal 
     Government or agent of the Federal Government may--
       ``(i) use any submission that is furnished for exclusively 
     statistical purposes under the provisions of this section for 
     any purpose other than the statistical purposes for which the 
     submission is furnished;
       ``(ii) make any publication or media transmittal of the 
     data contained in the submission described in clause (i) that 
     permits information concerning individual subjects to be 
     reasonably inferred by either direct or indirect means; or
       ``(iii) permit anyone other than a sworn officer, employee, 
     or agent of any Federal department or agency, or a contractor 
     (including an employee of a contractor) of such department or 
     agency, to examine an individual submission described in 
     clause (i);

     without the consent of the individual, agency, or other 
     person who is the subject of the submission or provides that 
     submission.
       ``(B) Immunity from legal process.--Any submission 
     (including any data derived from the submission) that is 
     collected and retained by a Federal department or agency, or 
     an officer, employee, agent, or contractor of such a 
     department or agency, for exclusively statistical purposes 
     under this section shall be immune from the legal process and 
     shall not, without the consent of the individual, agency, or 
     other person who is the subject of the submission or provides 
     that submission, be admitted as evidence or used for any 
     purpose in any action, suit, or other judicial or 
     administrative proceeding.
       ``(C) Construction.--Nothing in this section shall be 
     construed to provide immunity from the legal process for such 
     submission (including any data derived from the submission) 
     if the submission is in the possession of any person, agency, 
     or entity other than the Federal Government or an officer, 
     employee, agent, or contractor of the Federal Government, or 
     if the submission is independently collected, retained, or 
     produced for purposes other than the purposes of this Act.
       ``(b) System Responsibilities.--
       ``(1) In general.--The labor market information system 
     shall be planned, administered, overseen, and evaluated 
     through a cooperative governance structure involving the 
     Federal Government and States.
       ``(2) Duties.--The Secretary, with respect to data 
     collection, analysis, and dissemination of labor market 
     information for the system, shall carry out the following 
     duties:
       ``(A) Assign responsibilities within the Department of 
     Labor for elements of the system described in subsection (a) 
     to ensure that all statistical and administrative data 
     collected is consistent with appropriate Bureau of Labor 
     Statistics standards and definitions.
       ``(B) Actively seek the cooperation of other Federal 
     agencies to establish and maintain mechanisms for ensuring 
     complementarity and nonduplication in the development and 
     operation of statistical and administrative data collection 
     activities.
       ``(C) Eliminate gaps and duplication in statistical 
     undertakings, with the systemization of wage surveys as an 
     early priority.
       ``(D) In collaboration with the Bureau of Labor Statistics 
     and States, develop and maintain the elements of the system 
     described in subsection (a), including the development of 
     consistent definitions for use by the States in collecting 
     the data and information described in subparagraphs (A) and 
     (B), of subsection (a)(1) and the development of the annual 
     plan under subsection (c).
       ``(E) Establish procedures for the system to ensure that--
       ``(i) such data and information are timely;
       ``(ii) administrative records for the system are consistent 
     in order to facilitate aggregation of such data and 
     information;
       ``(iii) paperwork and reporting for the system are reduced 
     to a minimum; and
       ``(iv) States and localities are fully involved in the 
     maintenance and continuous improvement of the system at the 
     State and local levels.
       ``(c) Annual Plan.--The Secretary, with the assistance of 
     the States and the Bureau of Labor Statistics, and with the 
     assistance of other appropriate Federal agencies, shall 
     prepare an annual plan which shall be the mechanism for 
     achieving cooperative management of the nationwide labor 
     market information system described in subsection (a) and the 
     statewide labor market information systems that comprise the 
     nationwide system. The plan shall--
       ``(1)(A) describe the elements of the system described in 
     subsection (a), including standards, definitions, formats, 
     collection methodologies, and other necessary system 
     elements, for use in collecting data and information 
     described in subparagraphs (A) and (B) of subsection (a)(1); 
     and
       ``(B) include assurances that--
       ``(i) the data will be timely and detailed;
       ``(ii) administrative records will be standardized to 
     facilitate the aggregation of the data from local areas to 
     State and national levels and to support the creation of new 
     statistical series from program records; and
       ``(iii) paperwork and reporting requirements for employers 
     and individuals will be reduced;
       ``(2) include a report on the results of an annual consumer 
     satisfaction review concerning the performance of the system, 
     including the performance of the system in addressing the 
     needs of Congress, States, localities, employers, jobseekers, 
     and other consumers;
       ``(3) evaluate the performance of the system and recommend 
     needed improvements, taking into consideration the results of 
     the consumer satisfaction review, with particular attention 
     paid to the improvements needed at the State and local 
     levels;
       ``(4) describe annual priorities, and priorities over 5 
     years, for the system;
       ``(5) describe current (as of the date of the submission of 
     the plan) spending and spending needs to carry out activities 
     under this section, including the costs to States and 
     localities of meeting the requirements of subsection (e)(2); 
     and
       ``(6) describe the involvement of States in the development 
     of the plan, through formal consultations conducted by the 
     Secretary in cooperation with representatives of the 
     Governors of every State, and with representatives of local 
     partnerships, pursuant to a process established by the 
     Secretary in cooperation with the States.
       ``(d) Coordination With the States.--The Secretary and the 
     Bureau of Labor Statistics, in cooperation with the States, 
     shall--
       ``(1) develop the annual plan described in subsection (c) 
     by holding formal consultations, at least once each quarter, 
     on the products and administration of the nationwide labor 
     market information system; and
       ``(2) hold the consultations with representatives from each 
     of the 10 Federal regions of the Employment and Training 
     Administration, elected (pursuant to a process established by 
     the Secretary) by and from the State labor market information 
     directors affiliated with the State agencies that perform the 
     duties described in subsection (e)(2).
       ``(e) State Responsibilities.--
       ``(1) Designation of state agency.--In order to receive 
     Federal financial assistance under this section, the Governor 
     of a State--
       ``(A) shall designate a single State agency to be 
     responsible for the management of the portions of the system 
     described in subsection (a) that comprise a statewide labor 
     market information system; and
       ``(B) shall establish a process for the oversight of such 
     system.
       ``(2) Duties.--In order to receive Federal financial 
     assistance under this section, the State agency shall--
       ``(A) consult with State and local employers, participants, 
     and local partnerships about the labor market relevance of 
     the data to be collected and disseminated through the 
     statewide labor market information system;
       ``(B) consult with State educational agencies and local 
     educational agencies concerning providing labor market 
     information in order to meet the needs of secondary school 
     and postsecondary school students who seek such information;
       ``(C) collect and disseminate for the system, on behalf of 
     the State and localities in the State, the information and 
     data described in subparagraphs (A) and (B) of subsection 
     (a)(1);
       ``(D) maintain and continuously improve the statewide labor 
     market information system in accordance with this section;
       ``(E) perform contract and grant responsibilities for data 
     collection, analysis, and dissemination for such system;
       ``(F) conduct such other data collection, analysis, and 
     dissemination activities as will ensure an effective 
     statewide labor market information system;
       ``(G) actively seek the participation of other State and 
     local agencies in data collection, analysis, and 
     dissemination activities in order to ensure complementarity, 
     compatibility, and usefulness of data;
       ``(H) participate in the development of the annual plan 
     described in subsection (c); and
       ``(I) utilize the quarterly records described in sections 
     321(f)(1) and 312 to assist the State and other States in 
     measuring State progress on State performance measures.
       ``(3) Rule of construction.--Nothing in this section shall 
     be construed as limiting the ability

[[Page S4001]]

     of a State agency to conduct additional data collection, 
     analysis, and dissemination activities with State funds or 
     with Federal funds from sources other than this section.
       ``(f) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary for each of fiscal years 1999 
     through 2004.
       ``(g) Definitions.--In this section, the terms `local area' 
     and `local partnership' have the meanings given the terms in 
     section 2 of the Workforce Investment Partnership Act of 
     1997.''.

     SEC. 410. TECHNICAL AMENDMENTS.

       Sections 3(b), 6(b)(1), and 7(d) of the Wagner Peyser Act 
     (29 U.S.C. 49b(b), 49e(b)(1), and 49f(d)) are amended by 
     striking ``Secretary of Labor'' and inserting ``Secretary''.
                Subtitle B--Linkages With Other Programs

     SEC. 421. TRADE ACT OF 1974.

       Section 241 of the Trade Act of 1974 (19 U.S.C. 2313) is 
     amended by adding at the end the following:
       ``(d) To be eligible to receive funds under this section, a 
     State shall submit to the Secretary an application that 
     includes the description and information described in 
     paragraphs (8) and (16) of section 304(b) of the Workforce 
     Investment Partnership Act of 1997.''.

     SEC. 422. NATIONAL APPRENTICESHIP ACT.

       The Act of August 16, 1937 (commonly known as the 
     ``National Apprenticeship Act''; 50 Stat. 664, chapter 663; 
     29 U.S.C. 50 et seq.) is amended by inserting after section 3 
     the following:

     ``SEC. 3A. COORDINATION AND NONDUPLICATION.

       ``In carrying out this Act, the Secretary of Labor shall 
     require that an appropriate administrative entity in each 
     State enter into an agreement with the Secretary regarding 
     the implementation of this Act that includes the description 
     and information described in paragraphs (8) and (16) of 
     section 304(b) of the Workforce Investment Partnership Act of 
     1997.''.

     SEC. 423. VETERANS' EMPLOYMENT PROGRAMS.

       Chapter 41 of title 38, United States Code, is amended by 
     adding at the end the following:

     ``Sec. 4110B. Coordination and nonduplication

       ``In carrying out this chapter, the Secretary shall require 
     that an appropriate administrative entity in each State enter 
     into an agreement with the Secretary regarding the 
     implementation of this Act that includes the description and 
     information described in paragraphs (8) and (16) of section 
     304(b) of the Workforce Investment Partnership Act of 
     1997.''.

     SEC. 424. OLDER AMERICANS ACT OF 1965.

       Section 502(b)(1) of the Older Americans Act of 1965 (42 
     U.S.C. 3056(b)(1)) is amended--
       (1) in subparagraph (O), by striking ``; and'' and 
     inserting a semicolon;
       (2) in subparagraph (P), by striking the period and 
     inserting ``; and''; and
       (3) by adding at the end the following subparagraph:
       ``(Q) will provide to the Secretary the description and 
     information described in paragraphs (8) and (16) of section 
     304(b) of the Workforce Investment Partnership Act of 
     1997.''.
         Subtitle C--Twenty-First Century Workforce Commission

     SEC. 431. SHORT TITLE.

       This subtitle may be cited as the ``Twenty-First Century 
     Workforce Commission Act''.

     SEC. 432. FINDINGS.

       Congress finds that--
       (1) information technology is one of the fastest growing 
     areas in the United States economy;
       (2) the United States is a world leader in the information 
     technology industry;
       (3) the continued growth and prosperity of the information 
     technology industry is important to the continued prosperity 
     of the United States economy;
       (4) highly skilled employees are essential for the success 
     of business entities in the information technology industry 
     and other business entities that use information technology;
       (5) employees in information technology jobs are highly 
     paid;
       (6) as of the date of enactment of this Act, these 
     employees are in high demand in all industries and all 
     regions of the United States; and
       (7) through a concerted effort by business entities, the 
     Federal Government, the governments of States and political 
     subdivisions of States, and educational institutions, more 
     individuals will gain the skills necessary to enter into a 
     technology-based job market, ensuring that the United States 
     remains the world leader in the information technology 
     industry.

     SEC. 433. DEFINITIONS.

       In this subtitle:
       (1) Business entity.--The term ``business entity'' means a 
     firm, corporation, association, partnership, consortium, 
     joint venture, or other form of enterprise.
       (2) Commission.--The term ``Commission'' means the Twenty-
     First Century Workforce Commission established under section 
     434.
       (3) Information technology.--The term ``information 
     technology'' has the meaning given that term in section 5002 
     of the Information Technology Management Reform Act of 1996 
     (110 Stat. 679).
       (4) State.--The term ``State'' means each of the several 
     States of the United States and the District of Columbia.

     SEC. 434. ESTABLISHMENT OF TWENTY-FIRST CENTURY WORKFORCE 
                   COMMISSION.

       (a) Establishment.--There is established a commission to be 
     known as the Twenty-First Century Workforce Commission.
       (b) Membership.--
       (1) Composition.--
       (A) In general.--The Commission shall be composed of 21 
     members, of which--
       (i) 7 members shall be appointed by the President;
       (ii) 7 members shall be appointed by the Majority Leader of 
     the Senate; and
       (iii) 7 members shall be appointed by the Speaker of the 
     House of Representatives.
       (B) Governmental representatives.--Of the members appointed 
     under this subsection--
       (i) 1 member shall be an officer or employee of the 
     Department of Labor, who shall be appointed by the President;
       (ii) 1 member shall be an officer or employee of the 
     Department of Education, who shall be appointed by the 
     President; and
       (iii) 2 members shall be representatives of the governments 
     of States and political subdivisions of States, 1 of whom 
     shall be appointed by the Majority Leader of the Senate and 1 
     of whom shall be appointed by the Speaker of the House of 
     Representatives.
       (C) Educators.--Of the members appointed under this 
     subsection, 6 shall be educators who are selected from among 
     elementary, secondary, vocational, and postsecondary 
     educators--
       (i) 2 of whom shall be appointed by the President;
       (ii) 2 of whom shall be appointed by the Majority Leader of 
     the Senate; and
       (iii) 2 of whom shall be appointed by the Speaker of the 
     House of Representatives.
       (D) Business representatives.--
       (i) In general.--Of the members appointed under this 
     subsection, at least 4 shall be individuals who are employed 
     by non-information technology business entities.
       (ii) Size.--Members appointed under this subsection in 
     accordance with clause (i) shall, to the extent practicable, 
     include individuals from business entities of a size that is 
     small or average for a non-information technology business 
     entity.
       (2) Date.--The appointments of the members of the 
     Commission shall be made by the later of--
       (A) October 31, 1998; or
       (B) the date that is 45 days after the date of enactment of 
     this Act.
       (c) Period of Appointment; Vacancies.--Members shall be 
     appointed for the life of the Commission. Any vacancy in the 
     Commission shall not affect its powers, but shall be filled 
     in the same manner as the original appointment.
       (d) Initial Meeting.--No later than 30 days after the date 
     on which all members of the Commission have been appointed, 
     the Commission shall hold its first meeting.
       (e) Meetings.--The Commission shall meet at the call of the 
     Chairperson.
       (f) Quorum.--A majority of the members of the Commission 
     shall constitute a quorum, but a lesser number of members may 
     hold hearings.
       (g) Chairperson and Vice Chairperson.--The Commission shall 
     select a chairperson and vice chairperson from among its 
     members.

     SEC. 435. DUTIES OF THE COMMISSION.

       (a) Study.--
       (1) In general.--The Commission shall conduct a thorough 
     study of all matters relating to the information technology 
     workforce in the United States.
       (2) Matters studied.--The matters studied by the Commission 
     shall include an examination of--
       (A) the skills necessary to enter the information 
     technology workforce;
       (B) ways to expand the number of skilled information 
     technology workers; and
       (C) the relative efficacy of programs in the United States 
     and foreign countries to train information technology 
     workers, with special emphasis on programs that provide for 
     secondary education or postsecondary education in a program 
     other than a 4-year baccalaureate program (including 
     associate degree programs and graduate degree programs).
       (3) Public hearings.--As part of the study conducted under 
     this subsection, the Commission shall hold public hearings in 
     each region of the United States concerning the issues 
     referred to in subparagraphs (A) and (B) of paragraph (2).
       (4) Existing information.--To the extent practicable, in 
     carrying out the study under this subsection, the Commission 
     shall identify and use existing information related to the 
     issues referred to in subparagraphs (A) and (B) of paragraph 
     (2).
       (5) Consultation with chief information officers council.--
     In carrying out the study under this subsection, the 
     Commission shall consult with the Chief Information Officers 
     Council established under Executive Order No. 13011.
       (b) Report.--Not later than 6 months after the first 
     meeting of the Commission, the Commission shall submit a 
     report to the President and the Congress that shall contain a 
     detailed statement of the findings and conclusions of the 
     Commission resulting from the study, together with its 
     recommendations for such legislation and administrative 
     actions as the Commission considers to be appropriate.
       (c) Facilitation of Exchange of Information.--In carrying 
     out the study under subsection (a), the Commission shall, to 
     the extent practicable, facilitate the exchange of 
     information concerning the issues that are the subject of the 
     study among--
       (1) officials of the Federal Government and the governments 
     of States and political subdivisions of States; and
       (2) educators from Federal, State, and local institutions 
     of higher education and secondary schools.

     SEC. 436. POWERS OF THE COMMISSION.

       (a) Hearings.--The Commission may hold such hearings, sit 
     and act at such times and places, take such testimony, and 
     receive such evidence as the Commission considers advisable 
     to carry out the purposes of this subtitle.
       (b) Information From Federal Agencies.--The Commission may 
     secure directly from any Federal department or agency such 
     information

[[Page S4002]]

     as the Commission considers necessary to carry out the 
     provisions of this subtitle. Upon request of the Chairperson 
     of the Commission, the head of such department or agency 
     shall furnish such information to the Commission.
       (c) Postal Services.--The Commission may use the United 
     States mails in the same manner and under the same conditions 
     as other departments and agencies of the Federal Government.
       (d) Gifts.--The Commission may accept, use, and dispose of 
     gifts or donations of services or property.

     SEC. 437. COMMISSION PERSONNEL MATTERS.

       (a) Compensation of Members.--Except as provided in 
     subsection (b), each member of the Commission who is not an 
     officer or employee of the Federal Government shall serve 
     without compensation. All members of the Commission who are 
     officers or employees of the United States shall serve 
     without compensation in addition to that received for their 
     services as officers or employees of the United States.
       (b) Travel Expenses.--The members of the Commission shall 
     be allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for employees of agencies 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from their homes or regular places of 
     business in the performance of services for the Commission.
       (c) Staff.--
       (1) In general.--The Chairperson of the Commission may, 
     without regard to the civil service laws and regulations, 
     appoint and terminate an executive director and such other 
     additional personnel as may be necessary to enable the 
     Commission to perform its duties. The employment of an 
     executive director shall be subject to confirmation by the 
     Commission.
       (2) Compensation.--The Chairperson of the Commission may 
     fix the compensation of the executive director and other 
     personnel without regard to the provisions of chapter 51 and 
     subchapter III of chapter 53 of title 5, United States Code, 
     relating to classification of positions and General Schedule 
     pay rates, except that the rate of pay for the executive 
     director and other personnel may not exceed the rate payable 
     for level V of the Executive Schedule under section 5316 of 
     such title.
       (d) Detail of Government Employees.--Any Federal Government 
     employee may be detailed to the Commission without 
     reimbursement, and such detail shall be without interruption 
     or loss of civil service status or privilege.
       (e) Procurement of Temporary and Intermittent Services.--
     The Chairperson of the Commission may procure temporary and 
     intermittent services under section 3109(b) of title 5, 
     United States Code, at rates for individuals that do not 
     exceed the daily equivalent of the annual rate of basic pay 
     prescribed for level V of the Executive Schedule under 
     section 5316 of such title.

     SEC. 438. TERMINATION OF THE COMMISSION.

       The Commission shall terminate on the date that is 90 days 
     after the date on which the Commission submits its report 
     under section 435(b).

     SEC. 439. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There are authorized to be appropriated 
     such sums as may be necessary for fiscal year 1999 to the 
     Commission to carry out the purposes of this subtitle.
       (b) Availability.--Any sums appropriated under the 
     authorization contained in this section shall remain 
     available, without fiscal year limitation, until expended.
                      TITLE V--GENERAL PROVISIONS

     SEC. 501. STATE UNIFIED PLANS.

       (a) Purpose.--The purpose of this section is to permit and 
     encourage the submission of State unified plans, to assure 
     coordination of and to avoid duplication between the 
     activities carried out through the one-stop customer service 
     systems.
       (b) Definitions.--In this section:
       (1) Appropriate secretary.--The term ``appropriate 
     Secretary'' means the head of the Federal agency with 
     authority to carry out a system program.
       (2) Appropriate state agency.--The term ``appropriate State 
     agency''--
       (A) used with respect to a system program authorized under 
     title I or II, means an eligible agency; and
       (B) used with respect to another system program, means a 
     State agency with authority to carry out the system program, 
     as specified by the Governor of the State.
       (3) System program.--The term ``system program'' means a 
     program of activities, carried out through the one-stop 
     customer service system, that are--
       (A) activities authorized under title I or II;
       (B) workforce investment activities authorized under 
     subtitle A of title III;
       (C) other activities authorized under title III;
       (D) programs authorized under section 6(d) of the Food 
     Stamp Act of 1977 (7 U.S.C. 2015(d));
       (E) work programs authorized under section 6(o) of the Food 
     Stamp Act of 1977 (7 U.S.C. 2015(o));
       (F) activities authorized under chapter 2 of title II of 
     the Trade Act of 1974 (19 U.S.C. 2271 et seq.);
       (G) programs authorized under the Wagner-Peyser Act (29 
     U.S.C. 49 et seq.);
       (H) activities carried out by the Bureau of Apprenticeship 
     and Training;
       (I) programs authorized under title I of the Rehabilitation 
     Act of 1973 (29 U.S.C. 720 et seq.);
       (J) activities authorized under chapter 41 of title 38, 
     United States Code;
       (K) programs authorized under State unemployment 
     compensation laws and the Federal unemployment insurance 
     program under titles III, IX, and XII of the Social Security 
     Act (42 U.S.C. 501 et seq., 1101 et seq., and 1321 et seq.);
       (L) programs authorized under part A of title IV of the 
     Social Security Act (42 U.S.C. 601 et seq.);
       (M) programs authorized under title V of the Older 
     Americans Act of 1965 (42 U.S.C. 3056 et seq.); or
       (N) training activities carried out by the Department of 
     Housing and Urban Development.
       (c) State Unified Plan.--A State may develop and submit to 
     the appropriate Secretaries a State unified plan for 2 or 
     more of the system programs.
       (d) Contents.--
       (1) Planning provisions.--
       (A) In general.--In a State that elects to develop a State 
     unified plan, the plan shall contain planning provisions, 
     which shall be developed in a manner that substantially 
     reflects the planning requirements of the provisions of the 
     Federal statutes authorizing the system programs.
       (B) Planning requirements.--In subparagraph (A), the term 
     ``planning requirements'', used with respect to a system 
     program, means such requirements as the appropriate Secretary 
     shall by regulation specify for the system program.
       (2) Information provisions.--In addition to the planning 
     provisions required to be included pursuant to paragraph (1), 
     the plan shall include the following:
       (A) A description of the process used for developing the 
     State unified plan.
       (B) A description of the process used to consult the chief 
     elected officials in the State about the State unified plan.
       (C) A description of the accountability system of the State 
     for activities carried out through the one-stop customer 
     service system.
       (D) A description of how the one-stop customer service 
     system will provide the services identified in the State 
     unified plan through such system.
       (E) An assurance that the funds appropriated under Federal 
     law to carry out the activities identified in the State 
     unified plan will be used to supplement and not supplant 
     other Federal, State, and local public funds expended to 
     carry out the activities for eligible individuals.
       (e) Development.--
       (1) Planning provisions.--The provisions of the plan 
     described in subsection (d)(1) shall be developed by the 
     statewide partnership. The portion of the State unified plan 
     relating to a system program may be modified, as appropriate, 
     with the agreement of the Governor and the head of the 
     appropriate State agency with authority to carry out the 
     system program. The Governor and the head of the appropriate 
     State agency shall have the final authority to determine the 
     content of the portion of the State unified plan that relates 
     to the system program.
       (2) Information provisions.--The provisions of the plan 
     described in subsection (d)(2) shall be developed by the 
     statewide partnership, which shall have the final authority 
     to determine the content of the provisions.
       (f) Submission.--After the heads of the appropriate State 
     agencies approve the portions of the State unified plan that 
     relate to their system programs, the State unified plan shall 
     be submitted to the appropriate Secretaries by--
       (1) the Governor; and
       (2) an eligible agency, in the case of a plan containing a 
     portion relating to the system program of the eligible 
     agency.
       (g) Approval by the Appropriate Secretaries.--
       (1) Jurisdiction.--Each of the appropriate Secretaries 
     shall have the authority to approve the portion of the State 
     unified plan relating to the system program for which the 
     Secretary has authority. On the approval of the Secretary, 
     the portion of the plan relating to the system program shall 
     be implemented by the State pursuant to the State unified 
     plan.
       (2) Approval.--A portion of a State unified plan submitted 
     to an appropriate Secretary under this section shall be 
     considered to be approved by the appropriate Secretary at the 
     end of the 60-day period beginning on the day the appropriate 
     Secretary receives the portion, unless the Secretary makes a 
     written determination, during the 60-day period, that the 
     portion does not substantially reflect the planning 
     requirements of the appropriate Federal statutes authorizing 
     the system programs.

     SEC. 502. TRANSITION PROVISIONS.

       (a) In General.--The Secretary of Education or the 
     Secretary of Labor, as appropriate, shall take such steps as 
     such Secretary determines to be appropriate to provide for 
     the orderly transition to the authority of this Act from any 
     authority under provisions of law to be repealed under 
     subtitle E of title I, subtitle B of title II, or subtitle E 
     of title III, or any related authority.
       (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 3 or more of the programs, projects, or 
     activities described in subparagraphs (A) through (E) of 
     paragraph (2), the State shall not be required to comply with 
     provisions of this Act that conflict with the provisions of 
     such State statute relating to such programs, projects, or 
     activities for the period ending 3 years after the effective 
     date specified in section 503(a). After such 3-year period, 
     the Secretary of Education or the Secretary of Labor, as 
     appropriate, shall allow a State to continue operating under 
     such State statute if the State is meeting the State 
     performance measures of the State.
       (2) Programs, projects, and activities described.--The 
     programs, projects, and activities described in this 
     paragraph are the following:
       (A) Establishment of statewide partnerships or substate 
     partnerships, including local and regional partnerships.
       (B) Reorganization or consolidation of State agencies with 
     responsibility for workforce investment activities.

[[Page S4003]]

       (C) Reorganization or consolidation of workforce investment 
     activities.
       (D) Restructuring of local delivery systems for workforce 
     investment activities.
       (E) Development or restructuring of State accountability or 
     oversight systems for workforce investment systems to focus 
     on performance.

     SEC. 503. EFFECTIVE DATE.

       (a) In General.--Except as otherwise provided in this Act, 
     this Act takes effect on July 1, 1999.
       (b) Early Implementation.--At the option of a State, the 
     Governor of the State and the chief official of the eligible 
     agencies in the State may use funds made available under a 
     provision of law described in section 502(a), or any related 
     authority to implement this Act at any time prior to July 1, 
     1999.
       (c) Early Implementation and Transition Provisions.--
     Section 502 and this section take effect on the date of 
     enactment of this Act.
       (d) Twenty-First Century Workforce Commission.--Subtitle C 
     of title IV takes effect on the date of enactment of this 
     Act.

  The PRESIDING OFFICER. Who yields time?
  Mr. JEFFORDS. Mr. President, I yield myself such time as I may 
consume.
  Mr. President, today the Senate is considering the Workforce 
Investment Partnership Act, S. 1186. This legislation incorporates job 
training, vocational education, and adult education--three programs. 
Last year we passed welfare reform, which has no hope of success unless 
individuals have the appropriate education and training to compete in 
the workforce.
  We will never successfully reduce the welfare rolls unless we give 
people the tools to enter the workforce. Vocational education, adult 
education, and job training are how we give people those tools. This 
bill creates a system where all three of these key areas work together.
  Separate funding streams and administration are maintained. I repeat 
that. Separate funding streams and administration are maintained for 
each of these activities, in recognition that each activity serves a 
distinct function. At the same time, the important interrelationship 
among these activities has too often been ignored. Policy in each area 
has generally been considered in a vacuum, leading to disappointment 
and frustration to job seekers and employers alike. For this reason, 
Senator DeWine, Senator Kennedy, Senator Wellstone, and I have written 
legislation which will assist States in coordinating policies related 
to job training and training-related education.
  States that are moving forward in their workforce development efforts 
believe that all of the education and training players create an agenda 
which reflects an education and training partnership instead of having 
these two critical areas living individually, in solitary confinement.
  Senator Kennedy and I have been working on job training legislation 
for over 2 decades. I count the Job Training Partnership Act, which I 
coauthored along with Representative Hawkins and Senators Kennedy, 
Hatch, and Quayle, as a significant legislative accomplishment.
  Today, 16 years later, it is clear that the Job Training Partnership 
Act is not sufficient to meet the increasing demands made on our 
education and training system. This Nation has failed to implement 
strategies which will enable our workforce to meet the demands made by 
an ever changing international economy.
  Our international competitors have been leaders in making the 
important link between education and work. The United States is 
beginning to make some progress, although it is clearly not yet 
nationwide.
  I have seen examples of this progress in a few States, including my 
home State of Vermont. Vergennes Union High School has an excellent 
biotech program that was established through a partnership between the 
business community and the local school district. They were talking 
about things we hadn't even heard of a few years ago in their high 
school class. In addition, Essex Technical Center offers an array of 
programs that serve all students, ranging from at-risk youths to 
adults.
  Another State that is an exemplary leader in workforce development is 
Mississippi. Two years ago, I visited Mississippi and was overwhelmed 
by their academic, financial, and overall community commitment to 
revitalize their vocational education-tech prep system. This program is 
so successful that the Mississippi legislature passed an increase in 
their sales tax to expand that initiative. This has been very 
beneficial to the Mississippi economy. Businesses not only stay in 
Mississippi, but major companies are relocating to Mississippi, because 
of the skilled workforce that is in place because of these 
improvements.
  The Workforce Investment Partnership Act builds upon an excellent 
workforce development system that is evolving in Vermont, Mississippi, 
and in other States throughout the Nation. S. 1186 will enable States 
to have greater flexibility to promote coordination between vocational 
education, adult education, and training. The Workforce Investment 
Partnership Act gives States, local communities, and employers both the 
assistance and the incentives to train individuals--to train 
individuals for real jobs.
  The two key points of the Workforce Investment Partnership Act are 
the establishment of tough accountability measures and a rallying of 
the private and public sectors to implement an education and training 
delivery system that enables all members of our society to receive the 
education and training they need at any point in their lifetime--I 
repeat that, at any point in their lifetime.
  As I mentioned, accountability is a key feature of S. 1186. Those 
States that exceed their performance measures--the accountability 
mechanisms in all three titles--will be eligible for additional funding 
from the Department of Education and Labor, which can then be used for 
innovative activities related to the programs authorized under S. 1186.
  I believe this bill, which unanimously passed the Senate Labor and 
Human Resources Committee and has the support of the business 
community, including the National Association of Manufacturers, the 
National Alliance of Businesses, the Chamber of Commerce, and the 
administration, is one of the most important initiatives the Senate 
will consider this year.
  Year after year, report after report indicates that we do not have an 
adequately trained workforce. The following statistics illustrate this 
point: A Committee for Economic Development study estimates that each 
year's class of high school dropouts costs over $200 billion in lost 
incomes and taxes over the lifetimes of those students. I would like to 
note that my friend from Ohio, Senator DeWine, has done an outstanding 
job in this legislation in taking the lead on the youth provisions 
which will hopefully improve this very, very terrible statistic.
  American employers spend over $200 billion a year in remedial 
education and training for their employees--over $200 billion a year in 
remedial education and training for their employees. I point out that 
Europe spends about the same amount, but they spend it with their 
schools so that they don't have to wait an extra 2 years to be entering 
into the workforce.
  This Nation presently has 190,000 positions unfilled in the 
technology area because of a lack of skilled workers. Those skills 
could be taught, almost all of them, in the high schools, but kids have 
to wait until they get out of high school under the present system, 
although some schools, as I mentioned earlier, like Vergennes, are 
moving in that area to provide those skills which are reachable with 
the talents of our young people in high school rather than waiting to 
go to further skill training.
  The business community, Federal, State, and local governments must 
support education and training systems which allow all members of 
society to enter the training system and receive the education and 
training they need at any point in their lifetime, whether it be the 
high school student pursuing a biotech career, the adult who is 
desperate to trade a welfare check for a paycheck, the dislocated 
worker who needs to learn new skills to enhance his or her 
marketability, the vocational rehabilitation client who needs training 
assistance, or the incumbent worker who requires additional education 
and training to keep pace with the ever-evolving global economy. S. 
1186 lays a foundation for achieving that goal.
  Before I turn to my colleagues, I would like to express my deep 
appreciation to Senators Kennedy, DeWine, and Wellstone and their 
staffs and also a special thank you to the Congressional Research 
Service and the

[[Page S4004]]

Senate legislative counsel staff for all of their hard work in this 
bipartisan initiative. I thank each of them for their time and effort 
in getting S. 1186 to this point.
  Mr. President, I yield the floor.
  Mr. KENNEDY addressed the Chair.
  The PRESIDING OFFICER. The Senator from Massachusetts.
  Mr. KENNEDY. Mr. President, I yield myself such time as I might use.


                         Privilege of the Floor

  Mr. KENNEDY. Mr. President, I ask unanimous consent that Connie 
Garner, who is a legislative fellow, be granted the privilege of the 
floor for the duration of the workforce bill.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. KENNEDY. Mr. President, at the outset I want to express 
appreciation on this side, not just for our committee but for all of 
our Democratic Members, to the chairman of our committee, and also to 
Senator DeWine, who is the chairman of the subcommittee. I know I speak 
for Senator Wellstone, who was very much involved in the development of 
this legislation, in thanking them for their leadership and for their 
work with all of us in bringing this legislation to the floor of the 
U.S. Senate.
  This is a very important piece of legislation. It is going to make a 
significant difference in the quality of life for millions of 
Americans. It has been a long, arduous task to bring us to where we are 
today. Senator Kassebaum had been very interested in initially seeing 
how we could consolidate and coordinate 126 different programs in six 
different agencies and try and make some sense with a newer kind of 
workforce.

  So many of these various workforce programs have been targeted to 
particular needs--people who lost work as a result of imports; people 
who lost work because of environmental considerations; young people who 
dropped out of school; older workers who have been dislocated. There 
was a wide range of programs, and there was a solid effort to try to 
develop and fashion various efforts to make some sense out of these 
programs and ensure that we were going to invest in our fellow 
citizens, young and old, and to do it in an effective way.
  It hasn't been easy. We have tried to address this, and I can 
remember the times when we were not effective in doing so. I remember 
the CETA program and all of its difficulties and challenges in later 
years, under the leadership of Senator Quayle at that time and the 
members of our committee. I welcomed the opportunity of joining with 
Senator Quayle as we developed the Job Training Partnership Act to give 
greater local control and local input in terms of a shifting economy. 
This has been an evolving process.
  We have done a constructive review of all of the various job training 
programs to find out, with the new challenges we are facing, how can we 
do better in meeting these various needs: what the role of vocational 
training is; what the role of adult education programs is going to be; 
how we are tying this into evolving changes in our workforce as a 
result of technology, as a result of a change in our competitiveness, 
and as a result of the downsizing we have seen that has impacted a lot 
of people who have good skills, but in a particular area, that perhaps 
may not be as necessary today as they were in another period of time.
  It is only as a result of the hard work of the chairman of our full 
committee and the chairman of the subcommittee that we have been able 
to work through the process and make a recommendation that reflects the 
best judgment of all the members of the committee and the solid 
judgment of many men and women, and local, State, and national 
organizations who have given a great deal of time and attention to this 
issue, and who know the strengths and weaknesses of what is happening 
out in the local communities and at the State level, that we can 
present this legislation to the Senate. It is one of the most important 
pieces of legislation that we will pass.
  There are various pieces of legislation that are above the radar 
screen, and there are some that are just below the radar screen. Many 
of those which come just below the radar screen in so many respects 
have a dramatic impact, a much more important impact on our fellow 
citizens than some of those that might be highly visible, highly 
volatile pieces of legislation.
  We welcome the chance to be here this morning to make these 
recommendations and, hopefully, to consider some of the amendments that 
have been recommended by our colleagues and then move towards passage 
on Tuesday. We are urging all of our colleagues to support this 
legislation. We hopefully will then move in a timely way into the 
conference with the House, moving it along, recognizing that we do have 
a compressed time period but understanding that on this legislation we 
are not going to fail. I wanted to at least make those brief 
observations before commenting on the legislation.
  An educated workforce has become the most valuable resource in the 
modern economy. Our Nation's long-term economic vitality depends on the 
creation of an effective, accessible, and accountable system of job 
training and career development which is open to all of our citizens. 
Schools must assume more responsibility for preparing their students to 
meet the challenges of the 21st century workplace. Disadvantaged adults 
and out-of-school youth need the opportunity to develop job skills 
which will make them productive members of the community. Dislocated 
workers who have been displaced by the rapid pace of technological 
change deserve the chance to pursue new careers. The way in which we 
respond to these challenges today will determine how prosperous a 
nation we are in the next century.
  The importance of highly developed employment skills has never been 
greater. The gap in earnings between skilled and unskilled workers is 
steadily widening. I think all of us are very much proud of the fact 
that we have a strong economy. The figures, even in today's papers, 
indicate that is so. Hopefully, as a nation with a common purpose, we 
want to make sure that all Americans are going to be participating in 
the strength of our economy and that it isn't going to be just 
segmented among those who are already in a more favorable economic 
stance.
  For that to happen, having good work skills is an absolutely 
essential element and ingredient in terms of giving individual 
Americans the opportunities to participate in a more meaningful way in 
our economic expansion. For those who enter the workforce with good 
academic training and well-developed career skills, this new economy 
offers almost unlimited potential. However, for others who lack basic 
proficiency in language, math, and science, and no new skills, the new 
economy presents an increasingly hostile environment.
  Over 3 million young men and women between the ages of 16 and 24 in 
this country did not complete high school and are not enrolled in 
school. Many more graduate from high school without the level of 
knowledge and skill that a high school diploma should represent. They 
will require more education and job training in order to obtain stable, 
well-paying employment. Without it, they are in danger of becoming a 
lost workforce generation.
  Effective job training is also essential to the success of welfare 
reform. More than 40 percent of those in the JTPA program for 
disadvantaged adults have come from welfare rolls. Under the welfare 
reform legislation, an additional 1.7 million people will be entering 
the job market. Most of these individuals have little or no work 
background and very limited employment skills. In many cases, they are 
also the sole support of young children. They are making urgent, new 
demands on a job training system that is already burdened beyond its 
capacity. There is an approximately $3 billion program that has been 
recommended by the administration in terms of employment. We have tried 
to work that out to be complementary to what we are doing here so we 
have a more consolidated effort in terms of trying to meet those 
particular needs in the welfare-to-work programs.
  In addition, the combination of rapidly changing technology and the 
shift of manufacturing jobs overseas is creating an alarming number of 
dislocated workers. These individuals have extensive work experience 
but their skills are no longer in demand. We must give them the 
opportunity for retraining and for the development of new skills to 
enable them to compete in the 21st century workplace.
  Even today, we are only, I believe, dealing with about 30 percent of 
those

[[Page S4005]]

who would otherwise be eligible for those programs, so we know that the 
need is out there. We have a better way of addressing that need with 
this program.
  The accelerating pace of technological change has made much of the 
existing job training system obsolete. Broad reforms are needed to meet 
the demands of the modern workplace.
  The Workforce Investment Partnership Act, unanimously approved by the 
Labor and Human Resources Committee, will provide the employment 
training opportunities for millions of Americans. It responds to the 
challenge of the changing workplace by enabling men and women to 
acquire the skills required to enter the workforce and upgrade their 
skills throughout their careers. It will provide them with access to 
the educational tools that will enable them not only to keep up but to 
get ahead.
  Thirty or 40 years ago, in my own State of Massachusetts, if your 
grandfather worked in the Four Rivers Shipyard, his son worked in the 
Four Rivers Shipyard, and his grandson worked in the Four Rivers 
Shipyard. All got paid pretty good wages, all had pretty good lives, 
and all were able to provide for their families and be involved in the 
community.
  Today, everyone who enters the workforce is going to have seven 
different jobs--seven different jobs. We know that the private sector 
provides some training, but it is small and it is primarily among the 
white collar. Only about 7 or 8 percent of the major companies provide 
training programs, and that is divided between white and blue collar. 
So those that are the great workforce, the engine for most of these 
companies, with the exception of some very important and significant 
training programs from some excellent companies, do not receive the 
kind of training that is going to continually equip them to participate 
in our economy. Broad reforms are needed to meet the demands of a 
modern workforce.

  Mr. President, this, as I mentioned, represents the best judgment of 
the bipartisan efforts in our committee. I want to publicly commend 
Senators Jeffords and DeWine for the genuine spirit of bipartisanship 
which has made this effort possible. Senator Wellstone and I appreciate 
it. The resulting legislation will, I believe, truly expand career 
options, encourage greater program innovation, and facilitate 
cooperative efforts amongst business, labor, education, and state and 
local governments.
  I also want to recognize the important role that the President has 
given in bringing about reform in our current job training system. He 
has consistently emphasized the need for greater individual choice in 
the selection of career paths and training providers. The philosophy 
behind his skill grant proposal is reflected in our legislation.
  The Workforce Investment Partnership Act is designed to provide easy 
access to the state-of-the-art employment training programs which are 
geared to real job opportunities in the community through a single, 
customer-friendly system of One Stop Career Centers. Over 700 such 
centers are already operating successfully across the country. This 
legislation will ensure that every individual in need of employment 
services will have access to such a facility. The cornerstones of the 
new system are individual choice and quality labor market information. 
In the past, men and women seeking new careers often did not know what 
skills were most in demand, which training programs had the best 
performance. All too often they were forced to make one of the most 
important decisions of their lives based on anecdotes and late-night 
advertisements.
  An individual comes into the One Stop Career Centers and takes the 
various kinds of tests. If he wants to look at some new career 
possibilities, find out what his or her aptitude is in the areas of his 
skills, find out in what particular areas there are available jobs, and 
take a look at the various training programs for those particular jobs, 
that center will have access to that information: what jobs are there, 
whether the training programs really lead to jobs, and how those 
graduates of that particular training program are doing after 2 or 3 or 
4 years.
  The individual will be able to make a judgment themselves about which 
training program is best suited for them, and know that they have the 
excellent opportunity of moving ahead into a training program. That is 
a concept that has been developed in a number of different areas.
  My own State of Massachusetts has a very innovative program that was 
developed initially through Governor Dukakis and has been strongly 
supported by Governor Weld and our current Lieutenant Governor 
Cellucci. Lieutenant Governor Cellucci actually came down and testified 
for us. The One Stop Career Center approach is an area where we have 
had strong bipartisan support and important involvement by management, 
as well as labor.
  No training system can function effectively without accurate and 
timely information. The frequent unavailability of quality labor market 
information is one of the most serious flaws in the current system. 
This legislation places a strong emphasis on providing accurate and 
timely information about what area industries are growing, what skills 
those jobs require, and what earning potential they have. Extensive 
business community and organized labor participation are encouraged in 
developing a regional plan based on this information. Once a career 
choice is made, the individuals must select a training provider. At 
present, many applicants make that choice with little or no reliable 
information. Under this bill, each training provider will have to 
publicly report graduation rates, job placement and retention rates, 
and average earnings of graduates.
  We have found in my own State of Massachusetts, with these 
consolidations in what we call the REBs, that we have much greater 
involvement of community-to-business and worker participation, because 
these programs have been united, with a common spirit and a common 
focus. There has been much greater interest, support, and effectiveness 
because of greater consolidation, as opposed to so much of the 
scattered programs that have been out there previously.

  Because of the extensive information that will be available to each 
applicant, real consumer choice in the selection of a career and 
training program will be possible. The legislation establishes 
individual training accounts for financially eligible participants, 
which they can use to access career education and skill training 
programs. Men and women seeking training assistance will no longer be 
limited to a few predetermined options. As long as there are real job 
opportunities in the field selected and the training provider meets 
established performance standards, the individual will be free to 
choose which option best suits his or her needs.
  An essential element of the new system we have designed is the 
accountability. The chairman has mentioned this. As we noted earlier, 
each training provider will have to monitor and report the job 
placement retention achieved by its graduates and average earnings. 
Only the programs that meet an acceptable performance will be eligible 
for receipt of public funds. The same principle of accountability is 
applied to those agencies administering State and local programs. They 
have been given wide latitude to innovate under the legislation, but 
they, too, will be held accountable, if their programs fail to meet the 
challenging performance targets.
  The rapid pace of technological training in the workplace has 
produced an alarming number of workers who have become dislocated in 
mid-career. The dislocation has been compounded by an increasing number 
of labor-intensive production employers relocating their businesses 
abroad. This trend has been particularly acute in the manufacturing 
sector. We have a special obligation to these dislocated workers who 
have long and dedicated work histories and now are unemployed through 
no fault of their own. The Workforce Investment Partnership Act makes a 
commitment to them by maintaining a special dislocated worker program 
supported by a separate funding stream geared to their retraining 
needs. The current dislocated program serves approximately 540,000 
dislocated workers nationwide in the most recent year. Of those who 
completed the program, 71 percent were employed when they left the 
program, earning, on average, 93 percent of their previous wages. 
America's dislocated workers have earned the right to assistance in 
developing new skills which

[[Page S4006]]

will allow them to be full participants in the 21st century economy.
  There is no challenge facing America today which is tougher and more 
important than providing at-risk, often out-of-school youth with 
meaningful education and employment. I am particularly pleased with the 
commitment the Workforce Investment Partnership Act makes to these 
young men and women. This legislation authorizes a new initiative 
focusing on teenagers living in poverty in communities offering them 
few employment opportunities.
  Each year, the Secretary of Labor will award grants from a $250 
million fund to innovative programs designed to provide opportunities 
to youth living in these areas. The programs will emphasize mentoring, 
strong links between academic and work-site learning, and job placement 
and retention. It will encourage broad-based community participation 
from local service agencies and area employers. These model programs 
will, we believe, identify the techniques which are most effective. 
That is what we want to try to do.
  Another important program for young people who face the highest 
barriers to employment is Job Corps. Most of the participants grow up 
in extreme poverty with limited opportunities. Job Corps, at its best, 
moves them from deprivation to opportunity. But, for many of them, it 
is an extremely difficult transition. Job Corps is a program worth 
preserving and worth expanding too. Our legislation decisively rejects 
the view that Job Corps should be dismantled. Instead, it strengthens 
the program in several ways. It establishes closer ties between 
individual Job Corps Centers and the community they serve. It ensures 
that training programs correspond with the area's labor market needs. 
It extends follow-up counseling for participants up to 12 months and 
established detailed performance standards to hold programs 
accountable.

  The legislation also provides the continuation of some jobs as an 
essential element of the youth grant. For many youth, summer jobs are 
the first opportunity to work and their first critical step in learning 
the work ethic. The summer jobs program also provide many youth with 
quality learning experiences and follow up during the school year. 
Studies by the Department of Labor's Office of Inspector General and 
research by Westat, Inc., have reported positive findings regarding the 
program, concluding that work sites are well-supervised and 
disciplined, that jobs provide useful work, that the education 
component teaches students new skills that they apply in school, and 
that students learn the value of work.
  What we have seen in Massachusetts, particularly in Boston, where we 
have anywhere from 8,000 to 10,000 jobs a year, is that many of the 
youth go 1, 2, and some even 3 years. The private-sector involvement in 
these programs works very closely in the supervision and development of 
programs and then has a very active stream of bringing these young 
people who are going through high school at this time, and moving them 
right into jobs at some of our major companies in Boston. It has been 
very, very successful because they have coordinated the public-private 
partnership in a very effective way.
  I believe that the summer jobs program needs to continue to be 
available on a significant scale with sufficient funding. This bill 
recognizes the critical importance of the summer youth program by 
requiring that it be a part of each local area's youth program and 
allowing local communities to determine the number of summer jobs be 
created.
  The Workforce Investment Partnership Act includes titles 
reauthorizing major vocational education and adult literacy programs. 
Both programs will continue to be separately funded and independently 
administered. We have incorporated them in the Workforce Act because 
they must be integral components of any comprehensive strategy to 
prepare people to meet the demands of the 21st century workplace. 
Students who participate in vocational education must be provided with 
both strong academic preparation and advanced employment skills 
training. Recognizing this core principle, the legislation supports 
broad-based career preparation education which meets both high academic 
standards and teaches state-of-the-art technological skills. Adult 
literacy programs are essential for the 27 percent of the adult 
population who have not earned a high school diploma or its equivalent. 
Learning to read and communicate effectively are the first steps to 
career advancement. This legislation will increase access to 
educational opportunities for those most in need of assistance and 
enhance the quality of services provided. In vocational education and 
adult literacy, we place the same emphasis on program accountability 
which we did in job training.
  The Workforce Investment Partnership Act will make it possible for 
millions of Americans to gain the skills needed to compete in a global 
economy. In doing so, we are enabling them to realize their personal 
dreams.
  An educated workforce has become the most valuable resource in the 
modern economy. Our nation's long term economic vitality depends on the 
creation of an effective, accessible, and accountable system of job 
training and career development which is open to all our citizens. 
Schools must assume more responsibility for preparing their students to 
meet the challenges of the 21st century workplace. Disadvantaged adults 
and out of school youth need the opportunity to develop job skills 
which will make them productive members of the community. Dislocated 
workers who have been displaced by the rapid pace of technological 
change deserve the chance to pursue new careers. The way in which we 
respond to these challenges today will determine how prosperous a 
nation we are in the next century.
  The importance of highly developed employment skills has never been 
greater. The gap in earnings between skilled and unskilled workers is 
steadily widening. For those who enter the workforce with good academic 
training and well-developed career skills, this new economy offers 
almost unlimited potential. However, for those who lack basic 
proficiency in language, math and science and who have no career 
skills, the new economy presents an increasingly hostile environment.
  Over three million young men and women between the ages of 16 and 24 
in this country did not complete high school and are not enrolled in 
school. Many more graduate from high school without the level of 
knowledge and skill that a high school diploma should represent. They 
will require more education and job training in order to obtain stable, 
well-paying employment. Without it, they are in danger of becoming a 
lost workforce generation.
  Effective job training is also essential to the success of welfare 
reform. More than 40% of those in the JTPA program for disadvantaged 
adults have come from the welfare rolls. Under the welfare reform 
legislation, an additional 1.7 million people will be entering the job 
market. Most of these individuals have little or no work background and 
very limited employment skills. In many cases, they are also the sole 
support of young children. They are making urgent new demands on a job 
training system that is already burdened beyond its capacity.
  In addition, the combination of rapidly changing technology and the 
shift of manufacturing jobs overseas is creating an alarming number of 
dislocated workers. These individuals have extensive work experience, 
but their skills are no longer in demand. We must give them the 
opportunity for retraining, and for the development of new skills to 
enable them to compete in the 21st century workplace.
  The accelerating pace of technological change has made much of the 
existing job training system obsolete. Broad reforms are clearly needed 
to meet the demands of the modern workplace.
  The Workforce Investment Partnership Act, unanimously approved by the 
Labor and Human Resources Committee, will provide employment training 
opportunities for millions of Americans. It responds to the challenge 
of the changing workplace by enabling men and women to acquire the 
skills required to enter the workforce and to upgrade their skills 
throughout their careers. It will provide them with access to the 
educational tools that will enable them not only to keep up, but to get 
ahead.
  The legislation is the product of a true bipartisan collaboration. I 
want to

[[Page S4007]]

publicly commend Senators Jeffords and DeWine for the genuine spirit of 
bipartisanship which has made this effort possible. Senator Wellstone 
and I appreciate it. The resulting legislation will, I believe, truly 
expand career options, encourage greater program innovation, and 
facilitate cooperative efforts amongst business, labor, education and 
state and local government.
  I also want to recognize the important role President Clinton has 
played in bringing about this dramatic reform of our current job 
training system. He has consistently emphasized the need for greater 
individual choice in the selection of career paths and training 
providers. The philosophy behind his skill grant proposal is reflected 
in our legislation.
  The Workforce Investment Partnership Act is designed to provide easy 
access to state of the art employment training programs which are 
geared to real job opportunities in the community through a single, 
customer-friendly system of One Stop Career Centers. Over 700 such 
Centers are already operating successfully across the country. This 
legislation will ensure that every individual in need of employment 
services will have access to such a facility. The cornerstones of this 
new system are individual choice and quality labor market information. 
In the past, men and women seeking new careers often did not know what 
job skills were most in demand and which training programs had the best 
performance record. All too often, they were forced to make one of the 
most important decisions of their lives based on anecdotes and late-
night advertisements.
  No training system can function effectively without accurate and 
timely information. The frequent unavailability of quality labor market 
information is one of the most serious flaws in the current system. 
This legislation places a strong emphasis on providing accurate and 
timely information about what area industries are growing, what skills 
those jobs require, and what earning potential they have. Extensive 
business community and organized labor participation are encouraged in 
developing a regional plan based on this information. Once a career 
choice is made, the individual must still select a training provider. 
At present, many applicants make that choice with a little or no 
reliable information. Under this bill, each training provider will have 
to publicly report graduation rates, job placement and retention rates, 
and average earnings of graduates.

  Because of the extensive information which will be available to each 
applicant, real consumer choice in the selection of a career and of a 
training provider will be possible. The legislation establishes 
individual training accounts for financially eligible participants, 
which they can use to access career education and skill training 
programs. Men and women seeking training assistance will no longer be 
limited to a few predetermined options. As long as there are real job 
opportunities in the field selected and the training provider meets 
established performance standards, the individual will be free to 
choose which option best suits his or her needs.
  An essential element of the new system we have designed is 
accountability. As I noted earlier, each training provider will have to 
monitor and report the job placement and retention achieved by its 
graduates and their average earnings. Only those training programs that 
meet an acceptable performance standard will remain eligible for 
receipt of public funds. The same principle of accountability is 
applied to those agencies administering state and local programs. They 
are being given wide latitude to innovate under this legislation. But 
they too will be held accountable if their programs fail to meet 
challenging performance targets.
  The rapid pace of technological change in the workplace has produced 
an alarming number of workers who have become dislocated in mid-career. 
The dislocation has been compounded by the increasing number of labor 
intensive production employers relocating their businesses abroad. This 
trend has been particularly acute in the manufacturing sector. We have 
a special obligation to these dislocated workers who have long and 
dedicated work histories and now are unemployed through no fault of 
their own. The Workforce Investment Partnership Act makes a commitment 
to them by maintaining a special dislocated worker program, supported 
by a separate funding stream, which is geared to their retraining 
needs. The current dislocated worker program served approximately 
540,000 dislocated workers nationwide in the most recent year. Of those 
who completed the program during that year, 71 percent were employed 
when they left the program, earning on average 93 percent of their 
previous wages. America's dislocated workers have earned the right to 
assistance in developing new skills which will allow them to be full 
participants in the 21st century economy.
  There is no challenge facing America today which is tougher or more 
important than providing at-risk, often out-of-school, youth with 
meaningful education and employment opportunities. Far too many of our 
teenagers are being left behind without the skills needed to survive in 
the 21st century economy. I am particularly pleased with the commitment 
which the Workforce Investment Partnership Act makes to these young men 
and women. This legislation authorizes a new initiative focused on 
teenagers living in poverty in communities offering them few 
constructive employment opportunities. Each year, the Secretary of 
Labor will award grants from a $250 million fund to innovative programs 
designed to provide opportunities to youth living in these areas. The 
programs will emphasize mentoring, strong links between academic and 
worksite learning, and job placement and retention. It will encourage 
broad based community participation from local service agencies and 
area employers. These model programs will, we believe, identify the 
techniques which are most effective in reaching those youth at greatest 
risk.
  Another important program for young people who face the highest 
barriers to employment is Job Corps. Most of the participants grow up 
in extreme poverty. Their educational opportunities are limited. Job 
Corps, at its best, moves them from deprivation to opportunity. But, 
for many of them, it is an extremely difficult transition. As a result, 
critics of the program are always able to point to failures. But for 
each story of failure, there are many stories of success. Job Corps is 
a program worth preserving and worth expanding too. Our legislation 
decisively rejects the view that Job Corps should be dismantled. 
Instead, it strengthens the program in several ways. It establishes 
closer ties between individual Job Corps Centers and the communities 
they serve. It ensures that training programs correspond with the 
area's labor market needs. It extends follow-up counseling for 
participants up to 12 months and established detailed performance 
standards to hold programs accountable.
  The legislation also provides for the continuation of summer jobs as 
an essential element of the youth grant. For many youth, summer jobs 
are their first opportunity to work and their first critical step in 
learning the work ethic. The summer jobs program also provides many 
youth with quality learning experiences and follow up during the school 
year. Studies by the Department of Labor's Office of the Inspector 
General and research by Westat, Inc. have reported positive findings 
regarding the program, concluding that work sites are well-supervised 
and disciplined, that jobs provide useful work, that the education 
component teaches students new skills that they apply in school, and 
that students learn the value of work.
  I believe that the summer jobs program needs to continue to be 
available on a significant scale with sufficient funding. This bill 
recognizes the critical importance of the summer youth program by 
requiring that it be a part of each local area's youth program and 
allowing local communities to determine the number of summer jobs to be 
created.
  The Workforce Investment Partnership Act includes titles 
reauthorizing major vocational education and adult literacy programs. 
Both programs will continue to be separately funded and independently 
administered. We have incorporated them in the Workforce Act because 
they must be integral components of any comprehensive strategy to 
prepare people to meet the demands of the 21st century workplace. 
Students who participate in vocational

[[Page S4008]]

education must be provided with both strong academic preparation and 
advanced employment skills training. Recognizing this core principle, 
the legislation supports broad-based career preparation education which 
meets both high academic standards and teaches state- of-the-art 
technological skills. Adult literacy programs are essential for the 27% 
of the adult population who have not earned a high school diploma or 
its equivalent. Learning to read and communicate effectively are the 
first steps to career advancement. This legislation will increase 
access to educational opportunities for those people most in need of 
assistance and enhance the quality of services provided. In vocational 
education and adult literacy, we are placing the same emphasis on 
program accountability which we did in job training.
  The Workforce Investment Partnership Act will make it possible for 
millions of Americans to gain the skills needed to compete in a global 
economy. In doing so, we are also enabling them to realize their 
personal American dreams.
  I ask unanimous consent to have printed in the Record a statement of 
administrative policy and letters of endorsement.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                              Office of Management and Budget,

                                   Washington, DC, April 30, 1998.

                   Statement of Administration Policy


s. 1186--workforce investment partnership act of 1998 (Sen. DeWine (R) 
                            OH and 3 others)

       The Administration strongly supports Senate passage of S. 
     1186, as modified by the expected managers' amendment, 
     because it would reform workforce development programs by 
     incorporating key principles articulated in the President's 
     G.I. Bill for America's Workers. The Administration urges 
     Congress to enact this legislation by July 1, 1998 in order 
     to make available appropriations for fiscal year 1999 for the 
     President's proposed Youth Opportunity Areas initiative to 
     increase employment among out-of-school youth in high-poverty 
     areas.
       The Administration does not agree with every provision in 
     S. 1186. In addition, an amendment may be offered that would 
     prohibit the use of funds available under the Act to carry 
     out activities authorized under the School-to-Work 
     Opportunities Act. The Administration strongly opposes this 
     amendment and will work in conference to address this and any 
     other remaining concerns.
       The new workforce development system embodied in S. 1186 
     would empower individuals to obtain the services and skills 
     they need to enhance their employment opportunities. It would 
     accomplish this through skill grants, consumer report cards 
     on training program performance, and universal access to core 
     services, such as job search assistance. The new system also 
     would: (1) streamline access to job training programs through 
     one-stop career centers; (2) enhance accountability for 
     results through State and local performance standards and 
     certification of training providers; and (3) increase 
     flexibility for States and localities to enhance the 
     effectiveness of programs. The Administration is concerned 
     about certain provisions that limit the summer jobs component 
     of the youth grant, and looks forward to addressing this and 
     other concerns in conference.
       The Administration is pleased that S. 1186 would target 
     vocational education and adult education funds to educational 
     agencies and institutions with the greatest need and to 
     activities that promote program quality. The Administration 
     looks forward to addressing in conference its remaining 
     concerns about the adequacy of funding for: (1) national 
     activities to ensure accountability and promote program 
     quality, and (2) Tribally Controlled Postsecondary vocational 
     institutions.
       In addition, the Administration understands that an amended 
     version of S. 1579, the Rehabilitation Act Amendments of 
     1998, will be incorporated into S. 1186 during Senate 
     consideration. The Administration supports Senate passage of 
     the Rehabilitation Act amendments, which would, among other 
     things, streamline eligibility determinations for SSA 
     beneficiaries and improve State planning and accountability 
     for results. The Administration also strongly supports 
     ensuring that the Federal Government procures and uses 
     information technology that is accessible to individuals with 
     disabilities, as provided in the revision to section 508 
     proposed by the Administration. Finally, the Administration 
     supports the intent of S. 1579, as reflected in the Committee 
     report, to provide for greater collaboration between each 
     State vocational rehabilitation (VR) program and the 
     workforce investment system without compromising the 
     fundamental structure and funding of the State's VR program.


                         Pay-As-You-Go Scoring

       S. 1186, as amended to include the text of S. 1579, would 
     affect direct spending and receipts; therefore, it is subject 
     to the pay-as-you-go requirement of the Omnibus Budget 
     Reconciliation Act of 1990. Because the reauthorization does 
     not change mandatory spending calculations from current law, 
     OMB estimates that the net pay-as-you-go effect would be 
     zero.
                                  ____

                                                   April 23, 1998.
     Hon. Jim Jeffords,
     Hon. Mike DeWine,
     Hon. Edward Kennedy,
     Hon. Paul Wellstone,
     U.S. Senate, Washington, DC.
       Dear Chairmen Jeffords and DeWine, Senators Kennedy and 
     Wellstone: The undersigned organizations represent students, 
     parents, teachers, counselors, school administrators, 
     principals, local and state school board members, field 
     researchers, community colleges and state education officials 
     who care about the future of students seeking secondary and 
     postsecondary vocational-technical education opportunities. 
     We would like to thank you for your efforts in developing the 
     Workforce Investment Partnership Act (S. 1186) and your 
     continued efforts to ensure Senate consideration of the bill 
     as soon as possible.
       Vocational-technical education provides students with the 
     academic and occupational skills they need to be successful 
     in pursuing further education and career choices. We believe 
     that S. 1186 has many positive features that will assist in 
     the continuous improvement and expansion of vocational-
     technical education opportunities. Your legislation is very 
     important to our nation's students and we are confident that 
     the remaining issues can be resolved.
       Again, we sincerely appreciate the work that has gone into 
     developing this very critical piece of legislation. If we can 
     be of any assistance to you in moving this bill forward, 
     please do not hesitate to contact any of the organizations 
     listed below or contact Nancy O'Brien at 703/683-3111, ext. 
     311.
           Sincerely,
         American Association of Community Colleges; American 
           Association of Family and Consumer Sciences; American 
           Association of School Administrators; American 
           Counseling Association; American Educational Research 
           Association; American Vocational Association; Business 
           Professionals of America; Council of Chief State School 
           Officers; Federal Advocacy for California Education; 
           and Future Homemakers of America.
         National Association of Agriculture Educators; National 
           Association of Elementary School Principals; National 
           Association of State Boards of Education; National 
           Association of State Directors of Vocational-Technical 
           Education Consortium; National Education Association; 
           National Education Knowledge Industry Association; 
           National School Boards Association; New York State 
           Education Department; Technology Students of America; 
           and Texas Education Agency.
                                  ____

         National Association of State Directors of Vocational 
           Technical Education Consortium,
                                   Washington, DC, March 18, 1998.
       Dear Senator: The National Association of State Directors 
     of Vocational Technical Education Consortium (NASDVTEc) 
     represents the state and territory leaders responsible for 
     the nation's vocational technical education system. On 
     NASDVTEc's behalf, I write to share our support for the 
     Senate's efforts to enact legislation that authorizes a 
     federal investment in vocational technical education. S. 
     1186, the Workforce Investment Partnership Act of 1998, holds 
     much potential for creating expanded and improved 
     opportunities for our nation's students by providing access 
     to quality vocational technical education. We urge you to 
     support S. 1186, the Workforce Investment Partnership Act of 
     1998.
       NASDVTEc is very supportive of many of S. 1186's features 
     including: a commitment to a strong state role; adequate 
     state-level resources to effect change; assurances that funds 
     appropriated for vocational technical education can be used 
     only for vocational technical education activities; and a 
     strong focus on technology, accountability and achieving high 
     levels of academic and vocational proficiency.
       As we understand it, the manager's amendment will provide 
     the opportunity for greater coordination among programs while 
     assuring that vocational technical education continues to be 
     planned for and administered by education officials, even 
     under a unified plan. While it is our preference that 
     separate legislation be enacted for vocational technical 
     education, we appreciate the additional flexibility provided 
     and the assurance that S. 1186 will build on and strengthen 
     vocational technical education programs and activities that 
     have proven successful.
       We wish to commend Chairman Jeffords, Senators DeWine, 
     Kennedy and Wellstone for their bipartisan efforts to bring 
     forward this very important piece of legislation. Thank you 
     for your support of vocational technical education and for 
     your consideration of our views. Please do not hesitate to 
     contact me at 202/737-0303 if NASDVTEc can be of assistance 
     during your consideration of S. 1186.
           Sincerely,
                                                Kimberly A. Green,
                                               Executive Director.

[[Page S4009]]

     
                                  ____
         Council of Chief State School Officers,
                                   Washington, DC, March 19, 1998.
     Members of the United States Senate,
     Washington, DC.
     Re: Vote Yes for S. 1186 Workforce Investment Partnership
       Dear Senator: I write on behalf of the state commissioners 
     and superintendents of education to urge that you vote for 
     the Chairman's substitute amendment to the Workforce 
     Investment Partnership Act (S. 1186) and for its passage by 
     the Senate. We also urge that you vote against any amendments 
     which would erode the provisions of the legislation which 
     reauthorize federal support for vocational and adult 
     education or undermine the provisions for educational 
     integrity and governance of these programs.
       Federal support for linking academic and occupational study 
     through vocational education is important for secondary 
     school reform. It will help eliminate the ``general track'' 
     in high schools, and will ease the secondary-postsecondary 
     transition for students through tech-prep. Federal support 
     for adult education is important to enable a diverse range of 
     adults to gain basic academic skills. These adults include 
     parents and caregivers who desire to enhance their reading 
     competencies, individuals who seek proficiency in English for 
     productive employment, and individuals who strive to leave 
     welfare for work. S. 1186 provides for these vital purposes.
       The provisions of Titles I and II reauthorizing vocational 
     and adult education as separate programs enable state and 
     local education officials responsible for these programs to 
     continue to direct the federal assistance to statewide 
     educational reform and improvement. The critical connections 
     between these federal funding streams and other federal, 
     state and local education funding are provided in this bill.
       The Workforce Investment Partnership Act contains 
     provisions for states to voluntarily submit unified plans for 
     two or more of the programs authorized. These provisions 
     would facilitate coordination of vocational and adult 
     education with job-training related programs, without 
     mandating cumbersome processes or duplicative and expensive 
     new bureaucracy at the state level. The Title V provisions 
     for joint planning retain the authorities of education 
     officials for the vocational and adult education programs and 
     thus avoid superseding state responsibility for education.
       We urge you to support the Chairman's substitute for S. 
     1186 when the bill comes before the full Senate for passage. 
     If there is any additional information we can provide, please 
     call me or our Director of Federal-State Relations, Carnie 
     Hayes, at (202) 336-7009. Thank you for your support of S. 
     1186.
           Sincerely,
                                                 Gordon M. Ambach,
     Executive Director.
                                  ____



                              American Vocational Association,

                                   Alexandria, VA, March 17, 1998.
     Hon. Edward Kennedy,
     Russell Senate Office Building,
     Washington, DC.
       Dear Senator Kennedy: On behalf of the American Vocational 
     Association (AVA) and the 38,000 vocational-technical 
     educators that we represent nationwide, I urge you to vote in 
     favor of S. 1186, the Workforce Investment Partnership Act, 
     which may be considered in the full Senate this week.
       The Senate Labor and Human Resources Committee has worked 
     hard to address the concerns raised by vocational-technical 
     educators about this legislation last fall. We believe the 
     managers' amendment that will be offered effectively 
     addresses the core issues we raised. As we understand it, the 
     managers' amendment includes: Assurances that funding 
     appropriated for vocational-technical education programs will 
     be directed to school-based programs and cannot be diverted 
     to other areas. Assurances that education governance 
     authorities at the state and local levels will continue to 
     have jurisdiction over vocational-technical education 
     programs. A strong focus on professional development for 
     vocational-technical education teachers, administrators, and 
     counselors. Increased emphasis on technology. Assurances that 
     unified planning will adhere to the requirements of the 
     vocational-technical education provisions. Effective support 
     for state administration and leadership.
       In addition to encouraging the Senate to pass this 
     important legislation, we urge the Senate to accept the House 
     structure of a separate bill for vocational-technical 
     education, apart from job training, when S. 1186 goes to 
     conference with the House version. Further, we will provide 
     detailed comments on our conference priorities, including 
     additional changes that we would like to see to some of the 
     Senate language, as the bill moves towards conference.
       We also wish to commend Chairmen Jeffords and DeWine, 
     Senator Wellstone and you for your leadership and 
     bipartisanship in developing and moving this legislation. If 
     you have any questions about our views on S. 1186 or on any 
     other matter, please do not hesitate to contact Nancy 
     O'Brien, AVA's assistant executive director for government 
     relations, or me at (703) 683-3111.
       Thank you for your attention to this important issue.
           Sincerely,
                                                     Bret Lovejoy,
     Executive Director.
                                  ____

                                           American Association of


                                           Community Colleges,

                                   Washington, DC, March 17, 1998.
       Dear Senator: The American Association of Community 
     Colleges (AACC) strongly endorses S. 1186, the Workforce 
     Investment Partnership Act, and urges you to support this 
     legislation when it is considered by the Senate. AACC 
     represents 1,061 regionally accredited, associate degrees 
     granting institutions of higher education.
       AACC appreciates the refinements made to S. 1186 in 
     response to the concerns of community colleges. We strongly 
     support the following aspects of the legislation: State 
     education authorities will retain primary responsibility for 
     administering vocational and adult education programs. Since 
     educators have the ultimate responsibility for delivering 
     workforce education, they should have primary responsibility 
     over the formulation and execution of the state's vocational 
     and adult education plans.
       Changes made to Title V of the bill ensure that federal 
     funds appropriated under the bill specifically for vocational 
     education, adult education, and training will be used for 
     those purposes. This structure helps to maintain the 
     integrity of the federal role in these program.
       Perkins Basic State Grant funds will not be extended to 
     proprietary institutions. At a time when Basic State Grant 
     funding is essentially flat, community colleges could not 
     support extending federal vocational education funds to a 
     whole set of additional institutions.
       Community colleges are guaranteed a role on the state level 
     collaborative body that will develop the state adult training 
     system. This is appropriate given the key role community 
     colleges play as adult job training providers.
       The Tech-Prep program is authorized as a discrete program 
     with its own funding stream, separate from that of the 
     Perkins Basic State Grant. This guarantees that Tech-Prep 
     will not have to directly compete with other vocational 
     education programs for financial support.
       Community colleges remain concerned about the new outcomes 
     reporting measures the bill places on adult job training 
     providers. S. 1186 specifically requires colleges to provide 
     information regarding students' retention in jobs and 
     increases in wages when they are placed in a job, and for six 
     and twelve months after placement. This could be a 
     substantial burden for many community colleges. Community 
     colleges support the establishment of additional 
     accountability measures and look forward to working in 
     conference to help craft reporting requirements that 
     genuinely measure program success without creating an 
     administrative burden for providers.
       We believe S. 1186 provides the framwork for states to 
     develop high-quality workforce education and training 
     systems. We greatly appreciate the consideration given to the 
     concerns of community colleges throughout the development of 
     the bill, and look forward to working throughout the 
     conference process to ensure that community colleges can 
     continue to provide high quality workforce education and 
     training programs.
       Again, I urge you to support S. 1186, the Workforce 
     Investment Partnership Act.
           Sincerely,
                                                  David R. Pierce,
                                                        President.

  Mr. KENNEDY. I wanted also to discuss the Rehabilitation Act 
amendments of 1998. I welcome the opportunity to commend again Senator 
DeWine and Senator Jeffords for their leadership in making this 
reauthorization a priority and including this legislation as a part of 
the larger workforce development systems in the states.
  I also commend Senator Wellstone, Senator Harkin, Senator Dodd, and 
the Clinton Administration for their leadership in developing a 
bipartisan bill. I especially want to commend all of the staff members 
for their skillful work to make this process successful.
  For over 20 years, since the Vocational Rehabilitation Act was first 
enacted in 1973, state vocational rehabilitation systems have brought 
new hope to individuals with disabilities throughout the country, so 
they can reach their full potential and actively participate in their 
communities. Through the vocational rehabilitation, individuals with 
disabilities have access to training, counseling, support and job 
opportunities they need in order to become independent and productive, 
and live fulfilling lives.
  The Rehabilitation Act Amendments give us an excellent opportunity to 
do more to keep the promise of the Americans with Disabilities Act--by 
ensuing that all working-age individuals with disabilities, even those 
with the most significant disabilities, have realistic opportunities to 
obtain the support they need to reach their employment goals.
  With this legislation, we are building on the past gains by 
strengthening employment possibilities for all individuals with 
disabilities.
  The new provisions of this bill streamline the role of government by

[[Page S4010]]

simplifying access to vocational rehabilitation services. It widens 
employment opportunities by establishing linkages with the larger 
statewide workforce systems. It also makes services available to 
individuals with disabilities who do not require extensive 
rehabilitation in order to become employed. Those who achieve work 
outcomes through this assistance will receive at least the minimum 
wage. This measure also recognizes that individuals receiving 
disability benefits through Social Security are significantly disabled 
and should be presumed to be eligible for vocational rehabilitation 
services.
  Throughout this process, we have heard from consumers, advocates, and 
program administrators. The bill strengthens the role of individuals in 
developing their own employment plans. It makes it easier for agencies 
to work together, so that individuals with disabilities can obtain the 
support and services they need.
  I commend all the consumers, the advocates, the families, and the 
administrators who have done so much to help us shape the legislation. 
Their commitment to constructive compromise will improve the lives of 
all people with disabilities.
  Our larger goal is to see the talents and strengths of individuals 
with disabilities are recognized, enhanced, and fairly rewarded in 
communities and workplaces across the Nation. I look forward to working 
with my colleagues in Congress to achieve this great goal. I think this 
is another very important piece of legislation. I commend our leaders 
for the way this has been fashioned and shaped.
  Through vocational rehabilitation, individuals with disabilities have 
access to the training, counseling, support and job opportunities they 
need in order to become independent and productive, and live fulfilling 
lives. For millions of these Americans, vocational rehabilitation can 
mean the difference between dependence and independence, between lost 
potential and productive careers.
  The Rehabilitation Act Amendments give us an excellent opportunity to 
do more to keep the promise of the Americans with Disabilities Act--- 
by ensuring that all working-age individuals with disabilities, even 
those with the most significant disabilities, have realistic 
opportunities to obtain the support they need to reach their employment 
goals.
  With this legislation, we are building on past gains by strengthening 
the employment possibilities for all individuals with disabilities.
  The new provisions of this bill streamline the role of government by 
simplifying access to vocational rehabilitation services. It widens 
employment opportunities by establishing linkages with the larger 
statewide workforce systems. It also makes services available to 
individuals with disabilities who do not require extensive 
rehabilitation in order to become employed. Those who achieve work 
outcomes through this assistance will receive at least the minimum 
wage.
  This measure also recognizes that individuals receiving disability 
benefits through Social Security are significantly disabled and should 
be presumed to be eligible for vocational rehabilitation services.
  Throughout this process, we have heard from consumers, advocates and 
program administrators. The bill strengthens the role of individuals in 
developing their own employment plans. It makes it easier for agencies 
to work together, so that individuals with disabilities can obtain the 
support and services they need.
  I commend all the consumers, advocates, families, and administrators 
who have done so much to help us shape this legislation. Their 
commitment to constructive compromise will improve the lives of all 
people with disabilities.
  Our larger goal is to see that the talents and strengths of 
individuals with disabilities are recognized, enhanced, and fairly 
rewarded in communities and workplaces across the nation. I look 
forward to working with my colleagues in Congress to achieve this great 
goal.
  Mr. JEFFORDS. First, let me commend my ranking member, Senator 
Kennedy, whom I have worked with for many, many years, for giving the 
detail and the emphasis on the importance of this legislation, 
especially with respect to combining with the other training programs, 
vocational rehabilitation, which is an important step that this bill 
creates to make sure that we bring the disability community more 
closely aligned into the workplace and to give them the rights to 
further their employment opportunities that they well deserve.


                           Amendment No. 2329

                     (Purpose: To improve the bill)

  Mr. JEFFORDS. I have an amendment at the desk and I ask for its 
immediate consideration.
  The PRESIDING OFFICER. The clerk will report.
  The assistant legislative clerk read as follows:

       The Senator from Vermont [Mr. Jeffords], for himself, Mr. 
     DeWine, Mr. Kennedy, and Mr. Wellstone, proposes an amendment 
     numbered 2329.

  Mr. JEFFORDS. Mr. President, I ask unanimous consent reading of the 
amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  (The text of the amendment is printed in today's Record under 
``Amendments Submitted.'')
  Mr. JEFFORDS. Mr. President, this is an amendment in the nature of a 
substitute and it is the work of the committee. So we have already 
really defined in our statement, Senator Kennedy and myself, the 
contents of that amendment.
  Mr. President, I emphasize that this was a committee piece of work, 
and what happened is amazing in a sense, if you understand my 
committee, which has probably the largest divergence and philosophical 
persuasion. We were able to sit down and work together and come up with 
a piece of legislation which passed the committee unanimously, and as I 
think things will develop, will show that we probably will get a 
similar consideration on the floor.
  I yield to Senator DeWine, after first commending him and also his 
cohort, Senator Wellstone, for the incredible amount of work they put 
in. Senator Kennedy and I are the leaders of the committee, but it is 
the subcommittee that really did the majority of the work here. I want 
to commend them for the tremendous capacity to work together. As I 
said, there is some divergence in the philosophical opinion between the 
two men. But it proved to be of great advantage to the whole body here 
by coming out with an excellent piece of work. I now yield the floor to 
Senator DeWine.

  The PRESIDING OFFICER (Mr. Coverdell). The Senator from Ohio.
  Mr. DeWINE. Mr. President, we begin debate this morning on an 
important piece of legislation, which we have all been working on for 
the last few years--legislation that I believe is vitally important to 
the economic future of our country. As Senator Jeffords and Senator 
Kennedy have so eloquently pointed out, this is a bipartisan bill. It 
is a bipartisan bill that will truly make a difference.
  Let me thank the full committee chairman, Senator Jeffords, the 
ranking minority member of the committee, Senator Kennedy, and Senator 
Wellstone, who is the ranking member of our subcommittee. I also thank 
all the members of the Labor Committee who unanimously approved and 
voted in favor of this legislation--Senators Coats, Gregg, Frist, Enzi, 
Hutchinson, Collins, Warner, McConnell, Dodd, Harkin, Mikulski, 
Bingaman, Murray, and Reed of Rhode Island--a truly bipartisan bill, in 
a committee that, as my chairman has pointed out so very well, has a 
great divergence of philosophical backgrounds and beliefs. We all came 
together because we new this bill would make a difference. We knew the 
status quo was simply not acceptable.
  Mr. President, S. 1186, the Workforce Investment Partnership Act, 
which we are considering this morning, will bring much-needed and 
overdue reform to our job training system. Mr. President, as chairman 
of the employment and training subcommittee, I have come to this Senate 
floor on numerous occasions to stress the immediate need to reform the 
Federal job training system. This need increases each day that Congress 
does not act. The status quo is simply not acceptable.
  In writing this bill, our subcommittee held a number of important 
oversight hearings on this issue over the last 3 years. Let me just 
pause for a

[[Page S4011]]

moment to say how much I have enjoyed working with the ranking minority 
member of that committee, Senator Wellstone, as we have held these 
hearings and worked on this important piece of legislation.
  Mr. President, at 2 hearings in Washington, DC, we heard from 
officials from Los Angeles, from the State of Oregon, from Hennepin 
County, Minnesota. We heard from business groups, such as the Cleveland 
Growth Association.
  At a hearing in Cleveland, Ohio, we heard from concerned groups like 
the Akron Regional Development Board, the Lorain County Workforce 
Institute, the Lake County Employment and Training Administration, 
Cuyahoga County Community College, and Cleveland State University.
  What we heard, Mr. President, is that today's system is a fragmented 
and duplicative maze of narrowly focused job training and job training-
related programs, administered by numerous Federal agencies that lack 
coordination, lack a coherent strategy to provide training assistance, 
and lack the confidence of the two key consumers who utilize these 
services--namely, those seeking the training, and those businesses 
seeking to hire these individuals.
  Mr. President, probably one of the most historic accomplishments of 
the 104th Congress was our legislation that transformed the American 
welfare system. In passing a bill to end welfare as we knew it, we were 
empowering the States, empowering the local communities, and private 
businesses to seek a better way--to replace welfare with opportunity.

  Mr. President, what the Senate is considering this morning is a 
bipartisan bill that would provide States and localities with another 
tool--a very important tool--to make work, not welfare, the way of life 
for millions of our fellow citizens. People on welfare need to know 
they have a real future, a bright future, a future based on opportunity 
and economic advancement for themselves and their families. They need 
to know that when they leave the welfare rolls, there is a job out 
there--a job for them.
  Mr. President, this is one major reason that our bipartisan job 
training legislation is so important. This really was the unfinished 
business of the last Congress. This really is the unfinished business 
of welfare reform. This bill--the Workforce Investment Partnership 
Act--that we are considering this morning, which again I point out 
passed unanimously out of the Labor Committee--would help States and 
local communities succeed in this crucial task of making welfare reform 
truly work. It would help make work, not welfare, a reality in the 
lives of America's disadvantaged workers.
  Mr. President, to achieve this goal, individuals need to be provided 
the opportunity to receive the education and skills and training 
necessary to obtain meaningful, long-term employment. However, 
tragically, the current job training programs have been unable to 
provide quality service on a consistent enough basis.
  Employers at every level are finding it increasingly difficult to 
locate and attract qualified employees for high-skilled, high paying, 
good jobs, as well as finding it difficult to attract qualified 
employees for level-entry positions.
  Let me provide my colleagues with a couple of examples. In northern 
Virginia, not far from here, 19,000 high-tech, high-paying jobs remain 
unfilled because individuals lack the basic skills to fill them.
  My home State of Ohio faces a similar predicament, as I am sure the 
Chair's home State of Georgia does as well. A Cleveland Growth 
Association survey recently showed that employers are becoming 
increasingly concerned about the quality and availability of the 
skilled labor which may ultimately impede their future growth plans.
  Nationwide, the number of unfilled high-tech jobs is estimated to be 
at about 350,000. The increasing labor shortage threatens our Nation's 
economic growth and our productivity and our ability to compete in the 
world. This, in turn, also threatens our historic welfare reform.
  Mr. President, it is clear that we must act immediately. S. 1186, the 
Workforce Investment Partnership Act, must pass the U.S. Senate and 
become law so that individuals may have the opportunity to increase 
their skills and to obtain meaningful, long-term employment.
  As a Member of the Senate Labor and Human Resources Committee, as the 
chairman of the Subcommittee on Employment and Training, I have spent 
the last few years examining our Federal job training programs. What we 
all have found is alarming. During our examination of these programs, 
it has become clear to all of us that these programs are in dire need 
of reform. As a result, Mr. President, the business community is 
frustrated because the current programs fail to meet their employment 
needs.
  States, localities and community activists are frustrated because the 
programs are many times confusing and duplicative. Individuals seeking 
assistance are frustrated because the system is so confusing they often 
don't even know where to begin, where to start.
  We need to reform the current job training programs. We need to 
provide States with the tools necessary to develop their own 
comprehensive system that works for workers and works for the States.
  Our bill, S. 1186, provides States and localities with the tools and 
the flexibility to implement real reform. It is the only way they will 
be able to provide comprehensive services to those individuals who are 
seeking training and education assistance.
  Our bill provides States and localities with the framework to 
establish a truly comprehensive workforce development system.
  The bill brings together nearly 70 categorical programs--including 
adult education, vocational education, training, welfare to work, the 
Wagner-Peyser Act, the Older Americans Act, the Rehabilitation Act, 
Trade Adjustment Assistance, and other job training programs. All in 
all Mr. President, nearly 70 categorical programs.

  Further, this bill that the Senate is considering this morning offers 
a reborn Federal Job Corps program--the oldest program of over 30 
years, and the most expensive in the Federal system. We make this 
system anew, and we link it to local communities really for the first 
time in its over 30-year history.
  Further, our bill provides States with the option to submit a 
``Unified Plan'' or a single State plan for the numerous education and 
training programs incorporated into the bill.
  And it establishes a ``no wrong door'' approach to training and 
education assistance. Under today's system, people have difficulty 
knowing where to begin to look for training assistance--because there 
are no clear points of entry and no clear paths from one program to 
another. Our bill makes sure that whatever ``door'' people go through--
whatever agency they approach--they will receive comprehensive 
information about all the programs available to them. They will learn 
about the availability, eligibility, and quality of the programs 
through a ``one-stop customer service system.''
  The bill also gives States and localities the flexibility they need 
to design their own workforce development systems.
  It authorizes and expands a modified ``Work-Flex'' program for all 
States, flexibility that is currently limited to only six demonstration 
States.
  Under ``Work-Flex,'' in our bill, the States have the authority to 
approve requests for waivers of statutory and regulatory provisions 
submitted by their local workforce areas.
  The bill allows States to consolidate the 15 percent ``State 
Reserve'' funds from each funding stream--adults, dislocated workers, 
and youth--in order to target their own State's priorities.
  Our bill provides Governors and local elected officials with the 
ability to designate local service areas, increasing the population 
threshold to 500,000.
  It increases the States' authority over the development of State 
performance measures--giving Governors the authority to set additional 
core measures of performance, and negotiate the expected levels of 
performance--more accountability.
  And finally, Mr. President, our bill eliminates numerous Federal 
requirements and mandatory set-asides. This is a very important measure 
giving States the flexibility, authority, and funding to design their 
systems.

[[Page S4012]]

                             STATE REFORMS

  The bill recognizes--and keeps--some of the great progress already 
being made at the State level.
  It grandfathers State statutes enacted prior to December 31, 1997, 
relating to State councils, local boards, designation of service areas, 
and sanctioning of local areas for poor performance.
  It allows States to continue their existing reform efforts--and 
provides Governors broad waiver authority from the new requirements 
under the bill, in order to implement additional State reforms.


                       REDUCING FEDERAL RED TAPE

  This bill is about reform. Our bill reduces Federal requirements and 
bureaucracy.
  In addition to allowing States to consolidate the administration 
funds from the various funding streams, the bill removes income 
eligibility requirements and enables States to provide all the adults 
who voluntarily seek assistance the comprehensive services that are 
available through the one-stop customer service system.
  It establishes an effective and accountable system--ensuring that 
training leads to meaningful, long-term employment.
  It streamlines and simplifies the core accountability measures, 
reducing the number of accountability measures by more than 80%.
  The goal of these provisions is to increase accountability while 
decreasing red tape.
  Furthermore, the bill eliminates government bureaucracy and promotes 
personal responsibility by providing ``Individual Training Accounts'' 
or vouchers to individuals voluntarily seeking assistance so they can 
choose their training and education provider.


                     WHY BUSINESS SUPPORTS OUR BILL

  Mr. President, all of these reforms are calculated to fundamentally 
streamline and rationalize our job training system--and make it work 
for real people. Moreover, the reforms are based on free market 
competition. That's why the business community is strongly behind this 
legislation.

  Our bill provides the business community a strong leadership 
role, which is one thing that we have learned as we held hearings day 
after day and month after month. We heard from the business community. 
They have to be involved in the planning of these programs.

  Under this bill, the membership of the Statewide and local 
partnerships will be composed of a majority of business 
representatives--and the partnerships will be chaired by business 
representatives.
  Statewide and local partnerships will be responsible for overseeing 
the workforce investment system, including the establishment of 
criteria and standards for the job training programs and the 
certification of local job training providers.
  And business organizations may be designated as one-stop customer 
service center operators.
  Mr. President, the reforms contained in this bill will make it easier 
for our workers to get the training they need and the jobs they want. 
It will make it easier for our businesses to fill their jobs, so many 
of which stand empty today for want of skilled workers.
  Put these reforms together, and you get a recipe for an America that 
works--and the realization of the hopes for our country that were 
embodied in the 1996 welfare reform bill.
  At this time, Mr. President, I would ask unanimous consent that the 
following letters of support for S. 1186 be made part of the Record--
letters from the National Alliance of Business, the City of New York, 
the U.S. Chamber of Commerce, the Council of Chief State School 
Officers, the Society for Human Resource Management, the National 
Conference of State Legislatures, and the Cleveland Growth Association.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                National Alliance of Business,

                                   Washington, DC, March 17, 1998.
     Hon. Mike DeWine,
     Chairman, Subcommittee on Employment and Training, Committee 
         on Labor and Human Resources, Hart Senate Office 
         Building, U.S. Senate, Washington, DC.
       Dear Senator DeWine: The business community supports the 
     Workforce Investment Partnership Act (S. 1186). The bill 
     reflects changes that the business community recommended in 
     principles submitted prior to committee action last fall. The 
     bill transforms the current patchwork of federally-funded 
     worker training programs into a comprehensive system with 
     business-led partnerships at the state and local level to 
     ensure accountability and results based on high standards.
       We want to ensure strong provisions in a final compromise 
     with the House. We will work to have a final bill that would 
     increase state options for consolidation, strengthen measures 
     of performance and accountability, and guarantee that 
     programs are responsive to skill needs in the local labor 
     market. The urgency we have for this reform bill is dictated 
     by the rapid changes in the marketplace that render many 
     older programs obsolete.
       Early action is necessary to allow enough time to secure a 
     final compromise with the House. We urge your support for 
     this bill.
           Sincerely,
                                                  Robert T. Jones,
     President and CEO.
                                  ____

                                             The City of New York,


                                     Department of Employment,

                                     New York, NY, March 12, 1998.
     Hon. Mike DeWine,
     Senate Committee on Labor and Human Resources, Russell Senate 
         Office Building, Washington, DC.
       Dear Senator DeWine: I write in support of the ``Workforce 
     Investment Partnership Act'', S. 1186, which is expected to 
     come to the Senate floor for a vote early next week. As the 
     largest and most diverse Service Delivery Area under the Job 
     Training Partnership Act, I believe that this bipartisan 
     legislation addresses most of the New York City's concerns 
     for achieving reform and consolidation of job training and 
     employment programs.
       This legislation includes important reforms and has broad 
     support from those involved with workforce development. This 
     bill is important to New York City because it: 1) insures a 
     significant role of the chief local elected official; 2) 
     formally establishes One Stop Career Centers as part of the 
     workforce development system; 3) supports $250 million 
     annually for at risk youth; and 4) demonstrates a renewed 
     commitment to workforce development.
       Thank you again for considering the City's views in the 
     development of this legislation. We look forward to swift 
     passage of this bill in the Senate and resolution of the 
     Senate and House Bills to conference.
           Sincerely,
                                                    Antonio Pagan,
     Commissioner.
                                  ____

                                        Chamber of Commerce of the


                                     United States of America,

                                   Washington, DC, March 18, 1998.
     Hon. Mike DeWine,
     U.S. Senate,
     Washington, DC.
       Dear Senator DeWine: On behalf of the U.S. Chamber of 
     Commerce, the world's largest business federation 
     representing more than three million businesses and 
     organizations of every size, sector, and region, we strongly 
     urge your support for S. 1186, the Workforce Investment 
     Partnership Act when it comes before a vote on the Senate 
     floor.
       The Chamber supports the Workforce Investment Partnership 
     Act because it proposes a streamlined, business-oriented 
     approach to job training which will empower states with the 
     ability to transform the current patchwork of programs into a 
     comprehensive, effective system. S. 1186 will also require 
     the active participation of the business community through 
     statewide partnerships and local workforce investment 
     partnerships. Furthermore, the Chamber supports the autonomy 
     S. 1186 grants the states by allowing them to submit waivers 
     to reengineer federally funded programs or systems to improve 
     their effectiveness. Finally, the U.S. Chamber of Commerce is 
     pleased with the bill's designation of state and local 
     chambers of commerce as potential ``One-Stop Customer Service 
     Delivery Systems'' because it will better integrate the needs 
     of both the workforce and the business community.
       Accordingly, we strongly urge your support for S. 1186, the 
     Workforce Investment Partnership Act. Workforce education is 
     a top priority of the U.S. Chamber and we may consider using 
     this vote in our annual ``How They Voted'' vote ratings.
       The U.S. Chamber of Commerce commends the Senate on its 
     efforts concerning this issue, and pledges to continue 
     working with both Houses of Congress to enact job training 
     legislation that will better prepare the workforce to meet 
     today's--and tomorrow's--challenges.
           Sincerely,
     R. Bruce Josten.
                                  ____

                                               National Conference


                                        of State Legislatures,

                                   Washington, DC, March 26, 1998.
     Hon. Mike DeWine,
     U.S. Senate, Russell Senate Office Building, Washington, DC.
       Dear Senator DeWine: We are writing to express our support 
     for passage of S. 1186, the Workforce Investment Partnership 
     Act of 1998. As President of the National Conference of State 
     Legislatures and Chair of NCSL's Education, Labor and Job 
     Training Committee respectively, we believe that this 
     legislation represents a significant improvement over current 
     law which will consolidate job training services into a more 
     rational and coherent state and local system.
       For the first time in the history of federal involvement in 
     workforce programs, S. 1186

[[Page S4013]]

     recognizes the primacy of state legislatures in coordinating 
     federal and state human resource development policy. 
     Specifically, this legislation requires legislative 
     appropriation of federal funds. This will allow state 
     policymakers the opportunity to exercise open and public 
     hearings on the flow of federal dollars to the state. The 
     legislation also grandfathers existing state workforce reform 
     efforts passed by legislatures and already enacted by a 
     majority of the states. In addition, the accountability 
     provisions should serve as an incentive for continuous 
     improvement of workforce development systems.
       We appreciate the leadership, hard work and commitment you 
     have shown in moving this legislation thus far. We believe 
     that now is the time to pass S. 1186, so that the 
     disadvantaged and the employers who are searching for trained 
     employees are linked in a comprehensive and coherent 
     workforce development system.
           Sincerely,
     Senator Richard Finan,
       President, Ohio Senate; President, NCSL.
     Senator Linda Furney,
       Assistant Minority Leader, Ohio Senate; Chair, Education, 
     Labor and Job Training, NCSL Assembly on Federal Issues.
                                  ____

                                                  Council of Chief


                                        State School Officers,

                                    Washington, DC March 19, 1998.
     Re vote ``yes'' for S. 1186 workforce investment partnership.
     Members of the U.S. Senate:
     Washington, DC.
       Dear Senator: I write on behalf of the state commissioners 
     and superintendents of education to urge that you vote for 
     the Chairman's substitute amendment to the Workforce 
     Investment Partnership Act (S. 1186) and for its passage by 
     the Senate. We also urge that you vote against any amendments 
     which would erode the provisions of the legislation which 
     reauthorize federal support for vocational and adult 
     education or undermine the provisions for educational 
     integrity and governance of these programs.
       Federal support for linking academic and occupational study 
     through vocational education is important for secondary 
     school reform. It will help to eliminate the ``general 
     track'' in high schools, and will ease the secondary-
     postsecondary transition for students through tech-prep. 
     Federal support for adult education is important to enable a 
     diverse range of adults to gain basic academic skills. These 
     adults include parents and caregivers who desire to enhance 
     their reading competencies, individuals who seek proficiency 
     in English for productive employment, and individuals who 
     strive to leave welfare for work. S. 1186 provides for these 
     vital purposes.
       The provisions of Titles I and II reauthorizing vocational 
     and adult education as separate programs enable state and 
     local education officials responsible for these programs to 
     continue to direct the federal assistance to statewide 
     educational reform and improvement. The critical connections 
     between these federal funding streams and other federal, 
     state and local education funding are provided in this bill.
       The Workforce Investment Partnership Act contains 
     provisions for states to voluntarily submit unified plans for 
     two or more of the programs authorized. These provisions 
     would facilitate coordination of vocational and adult 
     education with job-training related programs, without 
     mandating cumbersome processes or duplicative and expensive 
     new bureaucracy at the state level. The Title V provisions 
     for joint planning retain the authorities of education 
     officials for the vocational and adult education programs and 
     thus avoid superseding state responsibility for education.
       We urge you to support the Chairman's substitute for S. 
     1186 when the bill comes before the full Senate for passage. 
     If there is any additional information we can provide, please 
     call me or our Director of Federal-State Relations, Carnie 
     Hayes, at (202) 336-7009. Thank you for your support of S. 
     1186.
           Sincerely,
                                                 Gordon M. Ambach.
     Executive Director.
                                  ____

                                                 Society for Human


                                          Resource Management,

                                   Alexandria, VA, March 19, 1998.
     U.S. Senate,
     Washington, DC.
       Dear Senator: The Society for Human Resource Management 
     (SHRM) is the leading voice of the human resource profession. 
     SHRM, which celebrates its 50th anniversary in 1998, provides 
     education and information services, conferences and seminars, 
     government and media representation, online services and 
     publications to more than 93,000 professional and student 
     members from around the world. The Society, the world's 
     largest human resource management association, is a founding 
     member of the North American Human Resource Management 
     Association and a founding member and Secretariat of the 
     World Federation of Personnel Management Associations.
       On behalf of SHRM, I am writing to ask you to support S. 
     1186, the Workforce Investment Partnership Act, which would 
     consolidate approximately 100 federal job training programs 
     into a single system. As you know, the House passed similar 
     legislation, H.R. 1385, in May of 1997. We are especially 
     pleased that S. 1186 would require the state wide and local 
     partnerships to be comprised of a majority of private sector 
     representatives and that the state programs are instructed to 
     coordinate with ongoing welfare to work efforts.
       SHRM has had a longstanding commitment to the consolidation 
     of training programs, and has repeatedly urged Congress to 
     consolidate training programs to the maximum extent possible, 
     in order to provide for an efficient, effective system. SHRM 
     has also historically opposed nontargeted and uncoordinated 
     training efforts that could result in a costly redundancy or 
     misallocation of training. SHRM believes it is critical that 
     the U.S. maintain and improve the skills of its workforce. 
     SHRM also believes that effective, well coordinated, 
     discretionary use of employee training dollars can achieve 
     both measurable and substantial results for employers and 
     employees. SHRM applauds the many employers who have already 
     understood the importance of investing in the skills of the 
     workforce and have established a variety of effective and 
     innovative training programs for their employees.
       SHRM was disappointed that House and Senate passed 
     legislation failed to be reconciled and signed into law 
     during 1996 and is hopeful that legislation will be enacted 
     during 1998 before Congress adjourns. We commend the Senate 
     for bringing S. 1186 to a vote. We urge you to support S. 
     1186 and look forward to working closely with you to speed 
     its enactment. Feel free to contact Deanna Gelak, SPHR, 
     Director of Governmental Affairs at (703) 535-6027 with any 
     questions which you may have during floor consideration of 
     this important measure.
           Sincerely,
                                               Susan R. Meisinger,
     SPHR, Senior Vice President.
                                  ____

         The Growth Association of Cleveland--Years of Creating 
           Growth,
                                 Cleveland, OH, February 11, 1998.
     Hon. Trent Lott,
     U.S. Senate Majority Leader, U.S. Senate, Washington, DC.
       Dear Senator Lott: The Greater Cleveland Growth 
     Association, the largest urban chamber of commerce in the 
     country, strongly supports S. 1186--the Workforce Investment 
     Partnership Act. We urge passage of this bill on the Senate 
     floor as soon as possible.
       As an employer, and as chairman of a business community 
     initiative on workforce development, I know the importance of 
     the public policies changes contained in the bill. We support 
     the legislation because it reflects the policy that the job 
     training system must be employer-driven to effectively match 
     worker skills with jobs that employers have or will have in 
     the future.
       Like many communities, the Northeast Ohio region is 
     experiencing its lowest unemployment rate in decades. This 
     has resulted in labor shortages at both the entry levels and 
     in specific occupations. While this is a positive indicator 
     of a strong economy, our companies' inability to find 
     qualified workers threatens that progress. It amplifies the 
     need for reforming fragmented and narrowly focused job 
     training programs into a comprehensive system that will 
     anticipate and respond to labor market demands.
       We believe that S. 1186 contains provisions that will 
     bridge the gaps between employers and workers by effectively 
     delivering job training services at the state and local 
     levels.
       With the creation of statewide partnerships and Local 
     Workforce Investment Partnerships, the active participation 
     of business in planning and oversight capacities is greatly 
     strengthened.
       We are encouraged by the consolidation and simplification 
     of federal programs into more flexible block grants that can 
     be tailored by states to meet local labor market needs.
       The new one-stop, customer-centered service system will 
     improve access for job seekers and employers alike.
       Thank you for your consideration of this important business 
     and community issue. We hope S. 1186 will soon pass in the 
     U.S. Senate.
           Sincerely,
     Curtis E. Moll,
       Chairman and Chief Executive Officer, MTD Products, Inc.; 
     Chairman, Jobs and Workforce Initiative.


                           Amendment No. 2330

    (Purpose: To amend the Rehabilitation Act of 1973 to extend the 
             authorizations of appropriations for that Act)

  Mr. DeWINE. Mr. President, I send an amendment to the desk.
  The PRESIDING OFFICER. The clerk will report.
  The legislative clerk read as follows:

       The Senator from Ohio (Mr. DeWine) proposes an amendment 
     numbered 2330.

  Mr. DeWINE. Mr. President, I ask unanimous consent that the reading 
of the amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.

[[Page S4014]]

  (The text of the amendment is printed in today's Record under 
``Amendments Submitted.'')
  Mr. DeWINE. Mr. President, I rise at this point today to discuss the 
pending amendment, the Rehabilitation Act Amendments of 1998.
  This is bipartisan legislation, which I am presenting as an 
amendment, has the strong support for the work that has been done by 
our chairman, Senator Jeffords. It has the support of the work that has 
been done by the ranking member, Senator Kennedy, and also the 
distinguished ranking member of the Employment and Training 
Subcommittee, Senator Wellstone. The work product also has the support 
of our distinguished colleagues, Senators Harkin, Frist, Collins, Reed, 
Chafee, and Bingaman.
  Mr. President, this amendment is the result of open and extensive 
negotiations that have earned it widespread and deep support both here 
in Washington, but more importantly at the State and local community 
level.
  The rehabilitation act I have submitted as an amendment is the 
country's only Federally funded program that provides job training and 
job placement services to individuals with disabilities. I believe the 
reauthorization of this Act gives us a perfect opportunity to build on 
and develop the positive changes that were made when it was last 
reauthorized, in 1992.
  The Subcommittee on Employment and Training began the reauthorization 
process last year by holding two hearings: the first in Washington, and 
the second in Columbus, OH. the Subcommittee listened carefully to the 
suggestions of vocational rehabilitation clients and their counselors, 
to administrators, and to service providers.
  We found many opportunities to build on the positive changes Congress 
made in 1992. I would like now to discuss some of the most important 
improvements we believe we have made to the 1992 Act.
  First of all, the amendment would link the Rehabilitation Act to the 
underlying job training reform bill that is before the Senate this 
morning. One of the problems we heard over and over again in our 
hearings was one we have already tried to address in the Workforce 
Investment Partnership Act. The fact is, there is a large disconnect 
between the vocational rehabilitation system and the rest of the 
country's job training systems. Too many disabled individuals are not 
receiving the basic job training information they need because they 
fall through the gap between the two job training systems. For example, 
a disabled individual may not meet the current legal definition of 
``disabled'' and thus not qualify for services from their State's 
vocational rehabilitation system, yet that same individual could be 
turned away from his or her State's generic job training system because 
that person is seen as being disabled. They literally fall between the 
two systems, not technically qualifying for either one. We need to 
change that, and this amendment does that.
  Therefore, the most important change we undertake is to link the 
vocational rehabilitation system to the states' new workforce systems 
under the Workforce Investment Partnership Act. No one should 
underestimate the importance of cooperation and mutual awareness 
between the two systems, and the strong statutory links that are 
necessary to ensure such cooperation. However, let me make it very 
clear, as Senators Kennedy and Jeffords have point out: Under no 
circumstances will the vocational rehabilitation system's integrity be 
compromised. That is the last thing we intend to do. Its funding will 
not be redirected to other populations.
  Our goal is clear. It is to improve vocational rehabilitation, not 
deplete its resources.
  Once these programs are joined, state vocational rehabilitation 
agencies will provide more people with either the basic information 
they need to begin their road to employment, or a referral to the 
state's new job training system. What makes this referral so much 
better than the current system is that employees in the state's new job 
training program will now be trained specifically to address the unique 
employment needs of disabled individuals.

  This simple solution will be achieved by the cooperative agreements 
and contracts required by this bill--between state workforce systems 
and state vocational rehabilitation systems. It will result in 
providing more disabled individuals with better jobs.
  These agreements or contracts may include the following: Arrangements 
for interagency staff training; arrangements for electronic sharing of 
labor market information and information on job vacancies; arrangements 
to use common intake procedures, forms, and referral procedures; and 
agreements to share client databases.
  However, let me be clear again. Vocational rehabilitation agencies 
will not be required to spend any of their federal allotment on 
activities other than those that help provide jobs for disabled 
individuals.
  This legislation also streamlines the vocational rehabilitation 
system, and allows state vocational rehabilitation agencies to save 
millions of dollars. They will now be able to use these dollars for job 
training and referral services instead of administration.
  For example, current law's so-called ``strategic plan,'' which really 
was duplicative, is eliminated. In Ohio, this means a savings of close 
to $3 million--and other states can expect the same kind of savings.
  Our bill also simplifies eligibility procedures--a common complaint 
we heard as we held hearings. For example, a person who qualifies for 
benefits or assistance under another program, such as Social Security 
Disability Insurance, Supplemental Security Income, or the Individuals 
with Disabilities Education Act, under our bill may use that 
qualification instead of having to go through a whole new process to 
receive vocational rehabilitation services. State agencies no longer 
will have to redo lengthy administrative procedures to determine a 
person's eligibility when they know that person clearly qualifies. 
This, too, will save valuable resources.
  Based on the information we gathered at our hearings and the 
suggestions we heard from the people who deal with vocational 
rehabilitation programs on a daily basis, we will reauthorize the 
Rehabilitation Act for 7 years. A longer period will allow states the 
opportunity to properly and effectively implement these positive 
changes and needed improvements.

  The witnesses who testified at our Washington hearing described their 
serious concerns about vocational rehabilitation clients' 
``independence,'' their lack of opportunity for ``self-assertion,'' and 
they strongly emphasized that clients should have meaningful roles in 
developing their own ``Individualized Rehabilitation Employment 
Plans.''
  We believe we have in this legislation taken care of these concerns.
  Empowered clients, who will always have the opportunity of working as 
a team with a VR counselor, may now exercise more consumer choice as to 
what employment goals they want to reach and how they want to reach 
them.
  Finally, one of the most positive changes our bill makes is to 
emphasize the value of self-employment. If a vocational rehabilitation 
client wants to be self-employed, there is no reason why he or she 
should not receive the training and assistance they need to reach their 
employment goal.
  At our Columbus hearing, I was surprised to learn that under current 
law, self employment is hardly, if ever, promoted. It is discouraged 
many times. Now, clients, together with their vocational rehabilitation 
counselors, have more flexibility and can develop plans to achieve 
self-employment.
  Mr. President, let me conclude my comments about this amendment by 
thanking once again the Chairman of the Labor Committee, Senator 
Jeffords; the Ranking Member of the Committee, Senator Kennedy; the 
Ranking Member of the Employment and Training Subcommittee, Senator 
Wellstone, Senator Collins, Senator Chafee, Senator Bingaman, and my 
colleague from Iowa, Senator Harkin, for all the work they and their 
staffs put into this process. I would also like to thank my colleague 
from Tennessee, Senator Frist, and his staff for their contribution not 
only in the 105th Congress, but also for his contributions to 
developing links to our previous workforce bill in the 104th Congress.
  This bill streamlines the vocational rehabilitation system's 
administration allowing millions of dollars to go to job

[[Page S4015]]

training services. This bill improves the lives of individuals with 
disabilities and provides opportunities for more jobs and better jobs. 
It creates a more user-friendly, consumer-driven program--and promotes 
the creation of a seamless job training program that will be able to 
serve more people more efficiently.
  Mr. President, I ask for the support of my colleagues on this 
amendment. At this time I yield the floor.
  The PRESIDING OFFICER. The Chair recognizes the Senator from Vermont.
  Mr. JEFFORDS. Mr. President, I am pleased to join with my colleague 
Senator DeWine in offering S. 1579, the Rehabilitation Act Amendments 
of 1998, as reported out of the Labor and Human Resources Committee, as 
an amendment to S. 1186 as amended by the Committee substitute.
  By attaching S. 1579 to the workforce legislation we will facilitate 
its consideration. However, I want to make clear that the 
Rehabilitation Act, when these amendments become law, will remain a 
freestanding statute.
  S. 1579 will open up more employment opportunities to individuals 
with disabilities. It will also provide State vocational rehabilitation 
agencies and others who provide employment-related assistance to 
individuals with disabilities with the tools they need to provide 
appropriate, timely help to individuals with disabilities who want to 
work. Provisions in this bill and in S. 1186 bring us closer to a 
seamless system for job training and employment assistance.
  Without compromising the integrity of a State's vocational 
rehabilitation program, the Rehabilitation Act Amendments of 1998 link 
vocational rehabilitation services to those services that are available 
under current State workforce systems and those that will be available 
under the Workforce Investment Partnership Act of 1998.
  Linkage provisions are found in sections pertaining to the findings 
and purposes of the legislation, definitions, program administration, 
reports, information dissemination, and State plan requirements, 
including those concerning data reporting. Complementary and parallel 
provisions promoting linkage between vocational rehabilitation agencies 
and State workforce systems also are included in the Workforce 
Investment Partnership Act of 1998. As the result of these linkage 
provisions individual with disabilities who want to work will not be 
turned away or denied assistance by a State's workforce system, of 
which the vocational rehabilitation program will be an integral 
component. There will be no wrong door to the system, no revolving 
door. Instead, there will be appropriate assistance.
  The amendments simplify access to vocational rehabilitation services. 
The State plan requirements have been rewritten to simplify 
administration of the vocational rehabilitation program. The amendments 
reduce the 36 State plan requirements in current law to 24 and require 
the submission of one State plan, with amendments thereafter under 
certain circumstances. The bill allows, when a State is operating under 
an order of selection, for the State to offer core services to 
individuals with disabilities who do not meet a State's criteria for 
full services from the vocational rehabilitation agency. The 
legislation gives vocational rehabilitation agencies the ability to 
secure financial support from other entities who could or should pay 
for certain services needed by an individual with a disability, who is 
being assisted by the vocational rehabilitation agency to prepare for 
or secure a job. The bill requires State vocational rehabilitation 
agencies and State Rehabilitation Councils to jointly--develop and 
conduct a comprehensive needs assessment every three years, and 
annually, to set and report on employment goals for individuals with 
disabilities.
  They streamline the administration and access to the vocational 
rehabilitation program. The bill simplifies procedures for eligibility 
by allowing consideration of existing evaluation information in 
determining an individuals's eligibility for vocational rehabilitation 
services. The bill strengthens eligible individuals's roles in 
developing their individualized rehabilitation employment plans.
  The bill also amends other titles in the Rehabilitation Act. Title 
II, which authorizes the National Institute on Disability and 
Rehabilitation Research, is amended to require that all funding 
priorities of the Institute be derived from a five-year plan that will 
be subjected to public comment and then submitted to Congress. The bill 
expands the authority of the Institute to allow funding of initiatives 
related to the quality assurance of assistive technology and the 
effectiveness of alternative medicine when used to treat individuals 
with disabilities. The legislation streamlines and updates title III of 
the Act, which authorizes training and demonstration activities, by 
clearly delineating funding priorities, simplifying the notification of 
interested parties about upcoming grant opportunities, and permitting 
funding for training of personnel in one-stop centers so that they will 
be more able to appropriately and effectively assist individuals with 
disabilities seeking employment-related assistance through such 
centers.
  S. 1579 strengthens section 508 of the Rehabilitation Act pertaining 
to the accessibility of electronic and information technology for 
individuals with disabilities employed or served by Federal agencies. 
S. 1579 amends title VI of the Act by adding a new initiative, Projects 
in Telecommuting and Self-Employment for Individuals with Disabilities, 
and by permitting Projects with Industry to assist eligible individuals 
without waiting for referrals or eligibility status determinations from 
vocational rehabilitation agencies and to provide training and/or 
placement services.
  Vermonters with disabilities benefited from the 1992 amendments to 
the Rehabilitation Act. Vermonters with disabilities will benefit from 
these 1998 amendments. In Vermont, one out of every eight residents is 
disabled. The Division of Vocational Rehabilitation has enabled many 
Vermonters with disabilities to exercise the choices in setting 
employment goals and selecting service providers to help them achieve 
those goals. In 1996, Vermont's vocational rehabilitation program 
provided an array of services to almost 5,000 Vermonters, while 
directly assisting 850 individuals with disabilities to become 
successfully employed.
  In 1996 Vermont consumers of vocational rehabilitation services who 
secured employment enjoy an average increase in income exceeding $8,000 
per year. Seventy-three percent of these individuals entered the 
workforce earning more than minimum wage. Seventy-eight percent of 
these Vermonters who were assisted by the Vermont Division of 
Rehabilitation in 1996 remain employed today. In addition, the Vermont 
Consumer Choice Project has allowed my State to create organizational 
structures, policies and practices that have resulted in a greater 
degree of informed choice for individuals seeking and receiving 
vocational rehabilitation services.
  Throughout S. 1579 there are references to traditionally underserved 
populations. I want to bring special attention to one such population 
that I am particularly aware of in my home state of Vermont: farmers 
with disabilities.
  In America an estimated 11 million people with disabilities live in 
rural areas. In the agricultural arena, an estimated 500,000 farmers 
and ranchers nationwide have physical disabilities that limit their 
ability to perform one or more work-related tasks. Each year, over 
200,000 persons employed in agriculture are injured on the job, with 
many incurring a permanent disability as a result. Thousands more in 
the agricultural community experience disability as a result of non-
farm injuries, illnesses, and chronic health conditions. These 
individuals consistently encounter barriers to receiving appropriate 
vocational rehabilitation services.
  Providing vocational rehabilitation services in rural environments 
can be challenging, but we clearly need to do more to serve these 
individuals who contribute so much to American society. State 
vocational rehabilitation agencies have large caseloads. Given these 
large case loads, it is often challenging to adequately serve 
individuals with disabilities in rural areas. Moreover, there are few 
rehabilitation professionals who are knowledgeable about various 
occupations in rural America or about how to successfully adapt or 
modify those work environments.

[[Page S4016]]

  Since 1991, the AgrAbility Program of the U.S. Department of 
Agriculture has helped thousands of farmers, ranchers, and farm workers 
to accommodate their disabilities in order to work safely and 
efficiently in agricultural production. A program that has existed in 
my home state of Vermont for nearly 30 years was one of the models on 
which the AgrAbility program was based. This program is a jointly 
operated by the Vermont Rehabilitation Service and the Cooperative 
Extension Service. It has helped hundreds of farmers accommodate their 
disabilities and remain productive. The lessons that we have learned in 
Vermont and through the AgrAbility program nationally need to be 
infused into the vocational rehabilitation system.
  Currently, nineteen States are served by AgrAbility projects, and at 
least a dozen additional States are pursuing funding. AgrAbility 
projects are conducted as partnerships between university-based State 
extension service agencies and nonprofit disability organizations, 
including Easter Seal societies, United Cerebral Palsy Associations, 
Goodwill societies and Independent Living Centers. These AgrAbility 
projects can provide State vocational rehabilitation agencies with a 
wide range of training and technical assistance to improve and expand 
vocational rehabilitation services to people with disabilities seeking 
to maintain their work in agriculture.
  In closing, I would like to acknowledge that we would not have been 
able to offer our colleagues this bipartisan, consensus-based 
legislation without Senator Frist's efforts in 1995 with regard to S. 
143 and the efforts of many hard working staff including, Aaron Grau 
with Senator DeWine, Elizabeth Aldridge with the Senate Legislative 
Counsel, Connie Gardner with Senator Kennedy, Roger Wolfson with 
Senator Wellstone, Sharon Masling with Senator Harkin, Jim Fenton with 
Senator Dodd, Pat Morrissey, Sherry Kaiman, and Heidi Mohlman of my 
staff. In addition, I wish to recognize the cooperation and technical 
assistance that we received from Assistant Secretary for Special 
Education and Rehabilitative Services, Judith Heumann, and Fredric 
Schroeder, Commissioner of the Rehabilitation Services Administration 
of the U.S. Department of Education and their staff. I also wish to 
thank the Consortium for Citizens with Disabilities, Task Force on 
Employment and Training, for its timely input on legislative proposals 
and its assistance on disseminating discussion drafts. Finally, I wish 
to extend a special thanks to Bob Rabe, Director of the Ohio 
Rehabilitation Commission and Chair of the Reauthorization Task Force 
of the Council of State Administrators of Vocational Rehabilitation 
(CSAVR) and Diane Dalmasse, the Director of the Division of Vocational 
Rehabilitation in Vermont for helping us to understand how the 
amendments will affect the delivery of vocational rehabilitation 
services.
  As I said on January 28, 1998 when my colleagues and I introduced 
this legislation, having a job and liking it are the bottom line. I 
urge my colleagues to join us in supporting S. 1579 as an amendment to 
the Workforce Investment Partnership Act of 1998. Passing it will mean 
more jobs and better jobs for individuals with disabilities.
  Mr. President, I also want to commend a staff member who has been 
with the Congress in one body or the other for many years who 
contributed very greatly to bringing about a consensus on this piece of 
legislation, Pat Morrissey.
  At this time, Mr. President, I believe the amendment on both sides is 
acceptable and we could have a vote on it at this time.
  The PRESIDING OFFICER. If there be no further debate, the question is 
on agreeing to the amendment.
  The amendment (No. 2330) was agreed to.
  Mr. JEFFORDS. Mr. President, I now yield, in accordance with the 
order, to Senator Ashcroft to offer his amendments.
  The PRESIDING OFFICER. The Chair recognizes the Senator from 
Missouri.
  Mr. ASHCROFT. Mr. President, I thank the Senator from Vermont for 
providing me with this opportunity. I commend both the Senator from 
Vermont and the Senator from Ohio for their outstanding work, along 
with other members of the committee. I know they worked hard in this 
particular endeavor.


                         Privilege of the Floor

  Mr. ASHCROFT. Mr. President, I ask unanimous consent that Kevin Ring 
of my staff be permitted to be on the Senate floor today until 
adjournment, for the purposes of these discussions.
  The PRESIDING OFFICER. Without objection, it is so ordered.


                Amendment No. 2331 to Amendment No. 2329

    (Purpose: To prohibit the use of funds to carry out activities 
     authorized under the School-to-Work Opportunities Act of 1994)

  Mr. ASHCROFT. Mr. President, I send an amendment to the desk and ask 
for its immediate consideration.
  The PRESIDING OFFICER. The clerk will report.
  The legislative clerk read as follows:

       The Senator from Missouri [Mr. Ashcroft] proposes an 
     amendment numbered 2331 to Amendment No. 2329.

  Mr. ASHCROFT. Mr. President, I ask unanimous consent that reading of 
the amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:
       In title V, strike the section heading for section 505 and 
     insert the following:

     SEC. 505. LIMITATION.

       None of the funds made available under this Act may be used 
     to carry out activities authorized under the School-to-Work 
     Opportunities Act of 1994 (20 U.S.C. 6101 et seq.).

     SEC. 506. EFFECTIVE DATE.

  Mr. ASHCROFT. Mr. President, the purpose of this amendment is to make 
certain that this legislation, the Workforce Investment Partnership 
Act, and the 1994 School-to-Work law are and remain separate programs. 
The amendment simply states that none of the funds made available under 
this Act may be used to carry out activities authorized under the 
School-to-Work Opportunities Act. The Senate Labor and Human Resources 
Committee has emphasized that School-to-Work is a completely separate 
program that is no way part of or linked to S. 1186. Section 316(d)(2) 
of the bill states:

       Funds shall not be used to carry out activities that 
     duplicate federally funded activities available to youth.

  The committee has cited this section as prohibiting any localities 
from using S. 1168 funding to expand School-to-Work. Although Section 
316 may be clear to legislative counsel and to those of us inside the 
beltway, there are still concerns about the misuse of adult job 
training funds for School-to-Work activities. My amendment clarifies in 
an unambiguous manner that the funds in this bill cannot be used to 
carry out School-to-Work activities.
  Many concerned citizens are troubled by the possibility that adult 
job training programs and even vocational education programs will be 
linked to elementary and secondary education and the School-to-Work 
Program. The concern is that this bill and the system it sets up would 
be linked to the School-to-Work system. I share these concerns. This 
amendment makes it clear to all involved, including those at the State 
level who will implement this law, that School-to-Work and adult job 
training are two distinct programs.
  The population that this legislation is aimed to help is different 
from the population served by the School-to-Work Act. They have 
different needs and different focuses, and this bill should make clear 
that they are to remain separate.
  My hope in offering this amendment is to ensure the two programs 
remain separate and the funds made available under this bill are not 
used to supplement the School-to-Work Act or to link School-to-Work 
activities with the Workforce Investment Partnership Act activities.
  No matter how one feels about School-to-Work, and there are some who 
oppose it and some who support it, you should support this amendment. 
This amendment does not affect the School-to-Work law in any way, other 
than to reaffirm the separate nature of the Workforce Investment 
Partnership Act from the School-to-Work Program.
  The Labor and Human Resources Committee is supportive of this 
amendment because it further clarifies what they understand the bill to 
do. In fact, the committee has repeatedly responded to the concerns 
about this issue by stating:

       School-to-Work is a completely separate program that is no 
     way part of or linked to S. 1186. This amendment seeks to 
     reassure those who are troubled by the possible linking of 
     adult job training system to the

[[Page S4017]]

     School-to-Work Program. But more than that, the purpose of 
     this amendment is to keep these two programs separate, not 
     just rhetorically but in reality and in actuality.

  I thank the chairman for his support of this important amendment. It 
is my understanding the amendment is acceptable to both sides and is 
consistent with the understanding of the committee generally. I offer 
it and urge its adoption.
  Mr. Jeffords addressed the Chair.
  The PRESIDING OFFICER. The Chair recognizes the Senator from Vermont.
  Mr. JEFFORDS. We have checked with the minority. It is acceptable to 
both sides.
  Mr. DeWINE addressed the Chair.
  The PRESIDING OFFICER. The Chair recognizes the Senator from Ohio.
  Mr. DeWINE. Mr. President, I will be brief but I would like to rise 
at this point to speak in strong support of the amendment of Senator 
Ashcroft to S. 1186. This amendment prohibits the use of funds to carry 
out activities authorized under the School-to-Work Opportunities Act of 
1994.
  Let me state it was never--I repeat never--my intention to include 
funds for School-to-Work activities in S. 1186. The bill we are 
currently debating, I believe, reflects this intent. In fact, section 
316(d)(2) of the bill clearly states:

       Funds . . . shall not be used to carry out activities that 
     duplicate federally funded activities available to youth.

  This provision prohibits States and localities from using S. 1186 
funding in any way to expand School-to-Work. The Ashcroft amendment--
let me state I thank my friend and colleague from Missouri for this 
contribution to the bill--will simply clarify this language. It will 
clarify it by adding, quoting from Senator Ashcroft's amendment:

       None of the funds made available under this Act may be used 
     to carry out activities authorized under the School-to-Work 
     Opportunities Act of 1994.

  This amendment is simple and it is straightforward. The Ashcroft 
amendment emphasizes, I believe, what the bill already clearly states. 
There has been opposition to S. 1186, driven by, I believe, a lack of 
understanding of this piece of legislation and a fear that our schools 
are going to be turned into training facilities that force children 
into career tracks. This is simply not true. This is the last thing--
let me repeat, as I have stated on the floor before--this is the last 
thing this U.S. Senator would seek to do. This is the last thing this 
Member of the Senate would ever propose, would ever push, would ever 
write or, frankly, would ever even vote for.
  S. 1186 does not expand the School-to-Work Act. School-to-Work is a 
completely separate program that is in no way part of or linked to S. 
1186. I repeat, School-to-Work is in no way part of or linked to S. 
1186. I would never support an expansion of School-to-Work. We do not 
need a Federal program directing students how to make the transition 
from School-to-Work. It is not an appropriate Federal role. 
Furthermore, School-to-Work's prescription will not solve the problem 
that too many kids are graduating today without the basic academics 
needed to succeed on the job, to succeed in postsecondary education, or 
to succeed in life.
  I support inclusion of the Ashcroft amendment in S. 1186. I thank my 
colleague from Missouri for proposing it. I believe it simply clarifies 
what is already in the bill, which is that funds in this legislation 
cannot be used to carry out activities authorized under the School-to-
Work Opportunities Act of 1994.
  I yield the floor.
  Mr. KENNEDY. Mr. President, I strongly disagree with the adverse 
comments of the Senator from Missouri regarding the School-to-Work 
Opportunities Act. That Act has provided countless young men and women 
across America with educational and career development opportunities 
which they would never have otherwise had. It has given those teenagers 
a greater range of choice in preparing for their future careers. It has 
opened the doors of prospective employers to these students and 
afforded them invaluable work opportunities. The evidence is there. I 
could speak for hours reciting success stories resulting from the 
School-to-Work program.
  However, this is not the appropriate time to debate the merits of 
School-to-Work. The Workforce Investment Partnership Act does not even 
mention the School-to-Work Opportunities Act once in its 444 pages of 
text. It does not amend or alter the School-to-Work Act in any way.
  The concern of all Senators today should be focused on the Workforce 
Investment Partnership Act which we are now considering. I have been 
assured by those advocating the Ashcroft amendment that it does not in 
any way limit the use of funds made available under the Workforce Act 
for any activity authorized by the Workforce Act. That is the issue 
which is most important today. Notwithstanding the Ashcroft amendment, 
funds available under each title of the Workforce Act will be able to 
be used to support any activity which that title authorizes. Based on 
that representation regarding the intent of the amendment, I do not 
request a rollcall vote.
  The PRESIDING OFFICER. The Chair recognizes the Senator from Vermont.
  Mr. JEFFORDS. I ask for a vote at this time.
  THE PRESIDING OFFICER. If there be no further debate, the question is 
on agreeing to the amendment.
  The amendment (No. 2331) was agreed to.
  Mr. ASHCROFT addressed the Chair.
  The Chair recognizes the Senator from Missouri.


                amendment no. 2332 to amendment no. 2329

 (Purpose: To establish a requirement that individuals submit to drug 
  tests, to ensure that applicants and participants make full use of 
              benefits extended through training services)

  Mr. ASHCROFT. Mr. President, I send an amendment to the desk and ask 
for its immediate consideration.
  The PRESIDING OFFICER. The clerk will report.
  The bill clerk read as follows:

       The Senator from Missouri [Mr. Ashcroft] proposes an 
     amendment numbered 2332 to amendment No. 2329.

  Mr. ASHCROFT. Mr. President, I ask unanimous consent that reading of 
the amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:

       At the end of section 371, add the following:
       (f) Drug Testing Limitations on Participants in Training 
     Services.--
       (1) Finding.--Congress finds that--
       (A) the possession, distribution, and use of drugs by 
     participants in training services should not be tolerated, 
     and that such use prevents participants from making full use 
     of the benefits extended through training services at the 
     expense of taxpayers; and
       (B) applicants and participants should be tested for 
     illegal drug use, in order to maximize the training services 
     and assistance provided under this title.
       (2) Drug tests.--Each eligible provider of training 
     services shall administer a drug test--
       (A) on a random basis, to individuals who apply to 
     participate in training services; and
       (B) to a participant in training services, on reasonable 
     suspicion of drug use by the participant.
       (3) Eligibility of applicants.--In order for such an 
     applicant to be eligible to participate in training services, 
     the applicant shall agree to submit to a drug test 
     administered as described in paragraph (2)(A) and, if the 
     test is administered to the applicant, shall pass the test.
       (4) Eligibility of participants.--In order for such a 
     participant to remain eligible to participate in training 
     services, the participant shall agree to submit to a drug 
     test administered as described in paragraph (2)(B) and, if 
     the test is administered to the participant, shall pass the 
     test. If a participant refuses to submit to the drug test, or 
     fails the drug test, the eligible provider shall dismiss the 
     participant from participation in training services.
       (5) Reapplication.--
       (A) In general.--Except as provided in subparagraph (B), an 
     individual who is an applicant and is disqualified from 
     eligibility under paragraph (3), or who is a participant and 
     is dismissed under paragraph (4), may reapply, not earlier 
     than 6 months after the date of the disqualification or 
     dismissal, to participate in training services. If the 
     individual demonstrates that the individual has completed a 
     drug treatment program and passed a drug test within the 30-
     day period prior to the date of the reapplication, the 
     individual may participate in training services, under the 
     same terms and conditions as apply to other applicants and 
     participants, including submission to drug tests administered 
     as described in paragraph (2).
       (B) Second disqualification or dismissal.--If the 
     individual reapplies to participate in training services and 
     fails a drug test administered under paragraph (2) by the 
     eligible provider, while the individual is an applicant or a 
     participant, the eligible provider

[[Page S4018]]

     shall disqualify the individual from eligibility for, or 
     dismiss the individual from participation in, training 
     services. The individual shall not be eligible to reapply for 
     participation in training services for 2 years after such 
     disqualification or dismissal.
       (6) Appeal.--A decision by an eligible provider to 
     disqualify an individual from eligibility for participation 
     in training services under paragraph (3) or (5), or to 
     dismiss a participant as described in paragraph (4) or (5), 
     shall be subject to expeditious appeal in accordance with 
     procedures established by the State in which the eligible 
     provider is located.
       (7) National uniform guidelines.--
       (A) In general.--The Secretary of Labor shall develop 
     voluntary guidelines to assist eligible providers concerning 
     the drug testing required under this subsection.
       (B) Privacy.--The guidelines shall promote, to the maximum 
     extent practicable, individual privacy in the collection of 
     specimen samples for such drug testing.
       (C) Laboratories and procedures.--With respect to standards 
     concerning laboratories and procedures for such drug testing, 
     the guidelines shall incorporate the Mandatory Guidelines for 
     Federal Workplace Drug Testing Programs, 53 Fed. Reg. 11970 
     (1988) (or a successor to such guidelines), including the 
     portion of the mandatory guidelines that--
       (i) establishes comprehensive standards for all aspects of 
     laboratory drug testing and laboratory procedures, including 
     standards that require the use of the best available 
     technology for ensuring the full reliability and accuracy of 
     drug tests and strict procedures governing the chain of 
     custody of specimen samples;
       (ii) establishes the minimum list of drugs for which 
     individuals may be tested; and
       (iii) establishes appropriate standards and procedures for 
     periodic review of laboratories and criteria for 
     certification and revocation of certification of laboratories 
     to perform such drug testing.
       (D) Screening and confirmation.--The guidelines described 
     in subparagraph (A) shall provide that, for drug testing 
     conducted under this subsection--
       (i) each laboratory involved in the drug testing of any 
     individual shall have the capability and facility, at such 
     laboratory, of performing screening and confirmation tests;
       (ii) all tests that indicate the use, in violation of law 
     (including Federal regulation) of a drug by the individual 
     shall be confirmed by a scientifically recognized method of 
     testing capable of providing quantitative data regarding the 
     drug;
       (iii) each specimen sample shall be subdivided, secured, 
     and labeled in the presence of the individual; and
       (iv) a portion of each specimen sample shall be retained in 
     a secure manner to prevent the possibility of tampering, so 
     that if the confirmation test results are positive the 
     individual has an opportunity to have the retained portion 
     assayed by a confirmation test done independently at a second 
     certified laboratory, if the individual requests the 
     independent test not later than 3 days after being advised of 
     the results of the first confirmation test.
       (E) Confidentiality.--The guidelines shall provide for the 
     confidentiality of the test results and medical information 
     (other than information relating to a drug) of the 
     individuals tested under this subsection, except that the 
     provisions of this subparagraph shall not preclude the use of 
     test results for the orderly imposition of appropriate 
     sanctions under this subsection.
       (F) Selection for random tests.--The guidelines shall 
     ensure that individuals who apply to participate in training 
     services are selected for drug testing on a random basis, 
     using nondiscriminatory and impartial methods.
       (8) Nonliability of local partnerships.--A local 
     partnership, and the individual members of a local 
     partnership, shall be immune from civil liability with 
     respect to any claim based in whole or part on activities 
     carried out to implement this subsection.
       (9) Reporting requirements.--An eligible provider shall 
     make records of drug testing conducted under this subsection 
     available for inspection by other eligible providers, 
     including eligible providers in other local areas, for the 
     sole purpose of enabling the providers to determine the 
     eligibility status of an applicant pursuant to this 
     subsection.
       (10) Use of drug tests.--No Federal, State, or local 
     prosecutor may use drug test results obtained under this 
     subsection in a criminal action.
       (11) Definitions.--As used in this subsection:
       (A) Drug.--The term ``drug'' means a controlled substance, 
     as defined in section 102(6) of the Controlled Substances Act 
     (21 U.S.C. 802(6)).
       (B) Drug test.--The term ``drug test'' means a biochemical 
     drug test carried out by a facility that is approved by the 
     eligible provider administering the test.
       (C) Random basis.--For purposes of the application of this 
     subsection in a State, the term ``random basis'' has the 
     meaning determined by the Governor of the State, in the sole 
     discretion of the Governor.
       (D) Training services.--The term ``training services'' 
     means services described in section 315(c)(3).

  Mr. ASHCROFT. Mr. President, my amendment requires random drug 
testing for all job training applicants and drug testing of program 
participants based on a standard of reasonable suspicion. If an 
applicant or participant tested positive, they could reapply after 6 
months from the date of disqualification, but at reapplication they 
must show that they passed a drug test within the last 30 days. A 
second failure of a drug test would require a two year wait before one 
could reapply. This provision allows individuals who have failed a drug 
test to get treatment and assistance and reapply for program funds.
  I think it is important to say that I believe it does not pay us to 
try to train people who are high on drugs. Nor does it pay us to train 
people who are involved so substantially with drugs that when they go 
to take a drug test to get a job, they will be turned down because they 
are positive for drugs. I believe it is important, then, for us to be 
sensitive to these facts and to include in the legislation the fact 
that we will prefer people who are drug free for employment training, 
because we might as well give them the training because they will 
actually be able to get and hold a job. This is something that is very 
important.
  During the last Congress, the Senate passed an identical amendment to 
the job training legislation. The amendment was agreed to by a vote of 
54 to 43 with broad, bipartisan support. The conferees retained the 
drug testing provision in their conference report in the last 
Congress. So this is an item which is acceptable.

  Since most of the private sector conducts drug testing on job 
applicants and employees, then a government-funded job training program 
should be able to do the same. According to the 1996 American 
Management Association Survey: Workplace Drug Testing and Drug Abuse 
Policies, we know that the share of major U.S. firms that test for 
drugs rose to 81 percent in 1996, and that was from 78 percent in 1995. 
The survey also found that 89% of all manufacturers drug-test, and 100% 
of all transportation firms test, due to Department of Transportation 
regulations.
  Additionally, 79% of wholesalers and retailers drug-test. These are 
all areas where participants are most likely to find jobs. More people 
are being asked to take drug tests when they show up for a job. Let's 
make part of their training the fact that they would take such tests 
and that they would be able to pass those tests.
  Additionally, our federal Job Corps program requires drug testing. 
Why shouldn't we have the same standards in this government job 
training program?
  When you have a finite amount of government resources, you should 
spend them in the most efficient and effective way.
  Since the American taxpayers are funding this job training program, 
there should be accountability. Taxpayer money is wasted if the person 
trained with government money cannot get a job because they cannot pass 
a drug test, which the majority of the private sector will conduct on 
employees. Since our resources are scarce, we should focus them on 
people who are likely to succeed.
  Why train someone who will end up never being able to get a job, 
because they can't pass a drug test? On the other hand, we should train 
those people who are responsible enough to be drug free and who want to 
work. These are the people who can benefit from the training.
  In fairness to the program participants, and in fairness to the 
taxpayers, applicants for the job training programs that will be 
authorized under this bill should be tested for the use of illegal 
drugs.
  Finally, Government is in the business of teaching lessons. Requiring 
drug-testing for a government job training program teaches 
responsibility to participants. If people know that there will be drug 
testing in government job training programs, they will have an 
incentive to stay off of drugs.
  Not testing participants is unfair to them because it falsely leads 
them to believe that they can be drug users and get jobs, and it is 
unfair to the American taxpayers who have to pay for those false hopes.
  It is my understanding that this amendment has been cleared on both 
sides with the understanding, of course, partly in respect to the fact 
that the Congress previously voted in this respect.
  Mr. KENNEDY. Mr. President, the amendment offered by the Senator

[[Page S4019]]

from Missouri would require applicants and participants in job training 
programs to submit to drug testing. I am opposed to the amendment 
because it represents an unwarranted and unprecedented intrusion into 
the privacy of the thousands of ordinary Americans who use job training 
services.
  In addition, the amendment is a costly and unfunded Federal mandate. 
One of the innovations of this job training bill is the degree of 
flexibility it gives States and localities. The Ashcroft amendment is 
completely out of step with that goal.
  Drug testing has an important role in certain job training settings, 
just as it has in certain workplace settings. But the proposal by the 
Senator from Missouri is overbroad, excessively expensive, and an 
example of the intrusive Federal policy role that this bill is designed 
to combat.
  The vast majority of the people who will use the job training 
services authorized in this bill are upstanding citizens, not 
criminals. They are displaced defense workers. They are blue collar 
workers who have been laid off as a result of a factory closing. They 
are professionals seeking to improve their skills in specialized 
fields. They are victims of natural disasters and runaway plants moving 
overseas.
  The Ashcroft amendment says to these people: If you want this 
assistance to try to improve your skills and obtain employment, you 
have to agree to submit to a Government test for possible drug abuse. I 
do not believe that the privacy of ordinary citizens hoping to improve 
their job skills should be routinely invaded in this intrusive manner.
  The Government uses drug testing today for airline pilots, train 
conductors, and other employees involved in sensitive public safety 
tasks. If programs funded by this bill train people in sensitive jobs, 
there is nothing that would prohibit drug testing.
  But routinely testing of everyone is too extreme. We do not do it in 
other programs, and we should not do it in this one.
  We do not drug-test people seeking Government assistance in financing 
a mortgage; we do not drug-test flood or earthquake victims applying 
for disaster relief; we do not drug-test crime victims seeking 
assistance from the Federal Office of Victim Services; we do not drug-
test farmers seeking crop subsidies. We do not drug-test corporate 
executive seeking overseas marketing assistance from the Commerce 
Department.
  Why are job training recipients singled out for this stigma? No case 
has been made that this population is more susceptible to drug abuse 
than the population at large.
  The amendment offered by the Senator from Missouri requires drug 
testing in two situations. First, every applicant to  a job training 
program is subject to testing on a random basis. Second, participants 
in training programs are subject to testing based on reasonable 
suspicion of drug use. Both random basis and reasonable suspicion are 
undefined concepts. They raise the specter that excessive distinctions 
will be made based on stereotypes and prejudices.

  As we have often been told, Washington does not have all the answers. 
We should not replace one set of Federal mandates with another set of 
Federal mandates. This bill is designed to maximize local flexibility, 
but the Ashcroft amendment goes in the opposite direction.
  Indeed, the Ashcroft amendment would actually preempt some State 
laws. A number of State legislatures have addressed the circumstances 
under which drug testing can be utilized, but the Ashcroft amendment 
would actually override the considered judgments of those legislative 
bodies and put in place a one-size-fits-all Federal mandate.
  Drug testing on the scale contemplated by this amendment would be 
enormously expensive. By some estimates, 1 million Americans use the 
job training services included in this bill. The Department of Health 
and Human Services estimates that the average cost of a drug test is 
about $35.
  That means it would cost $35 million each year to administer an 
average of one test to each person. Either this amendment saddles local 
governments with a huge unfunded mandate, or it eats up a large portion 
of the Federal funds made available under this bill.
  It is also important to note that drug testing technology is not 
infallible. Depending upon the type of testing technology that is used, 
as many as 4 percent of all drug tests result in false positives. That 
means that if a million drug tests are administered, some 40,000 
Americans might be inaccurately labeled as drug users.
  Of course there are often opportunities for appeals and confirmation 
tests and retests. But we should think long and hard before we adopt 
this amendment and subject tens of thousands of ordinary, law-abiding 
Americans to the Kafka-esque nightmare of being falsely accused of drug 
use.
  The amendment requires those who test positive for drugs to obtain 
drug treatment. But who will pay for treatment? Right now, only a third 
of the Americans who need substance abuse treatment receive it because 
insurance coverage and public funding are inadequate. In light of that 
fiscal reality, it makes no sense to institute a massive new Government 
drug testing program.
  Finally, the amendment is objectionable because it may deter people 
who need job training services from seeking them. The threat of an 
intrusive drug test may put off drug users and non-drug users alike. We 
want to encourage people to improve their skills. We want to encourage 
the unemployed to become employed. We should not erect barriers to the 
services authorized in this bill.
  Job training programs do not need the Federal Government to tell them 
how to deal with drug abuse. They have the tools they need. Where drug 
testing is appropriate, it will occur. But a sweeping Federal mandate 
is completely unnecessary and excessively expensive.
  I have concerns about the privacy issue, concerns about the cost 
issue, concerns about preempting State laws, concerns about issues 
relating to standards and to quality control for random tests. They are 
all sound reasons to oppose this imprudent amendments.
  Mr. ASHCROFT. Mr. President, I ask that the measure be voted on at 
this time.
  The PRESIDING OFFICER. Without objection, the amendment is agreed to.
  The amendment (No. 2332) was agreed to.
  Mr. JEFFORDS addressed the Chair.
  The PRESIDING OFFICER. The Chair recognizes the Senator from Vermont.
  Mr. JEFFORDS. Mr. President, first, I thank my friend from Missouri 
for his amendments which he so forthrightly and quickly disposed of so 
that we can move forward on this very important piece of legislation.


                Amendment No. 2333 to Amendment No. 2329

  (Purpose: To provide for a right for certain large units of general 
  local government to submit appeals concerning designation as local 
                                 areas)

  Mr. JEFFORDS. Mr. President, I ask for the immediate consideration of 
an amendment by Senator Lautenberg, which is at the desk.
  The PRESIDING OFFICER. The clerk will report.
  The bill clerk read as follows:

       The Senator from Vermont [Mr. Jeffords], for Mr. 
     Lautenberg, proposes an amendment numbered 2333 to amendment 
     No. 2329.

  Mr. JEFFORDS. Mr. President, I ask unanimous consent that the reading 
of the amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:

       In section 307(a)(2), strike subparagraph (C) and insert 
     the following:
       (C) Large political subdivisions.--A single unit of general 
     local government with a population of 200,000 or more that is 
     a service delivery area under the Job Training Partnership 
     Act on the date of enactment of this Act, and that is not 
     designated as local area by the Governor under paragraph (1), 
     shall have an automatic right to submit an appeal regarding 
     designation to the Secretary. In conducting the appeal, the 
     Secretary may determine that the unit of general local 
     government shall be designated as a local area under 
     paragraph (1), on determining that the programs of the 
     service delivery area have demonstrated effectiveness, if the 
     designation of the unit meets the State plan requirements 
     described in section 304(b)(5).

  Mr. LAUTENBERG. Mr. President, I am pleased to offer this amendment 
to S. 1186, the ``Workforce Investment Partnership Act.'' My amendment 
will provide a mechanism for 59 U.S. cities currently administering 
locally-tailored workforce development services

[[Page S4020]]

under the Job Training Partnership Act to retain their designation as 
Service Delivery Areas (SDAs). This amendment allows those 59 cities 
that are existing SDAs, with successful job training programs, to 
appeal to the Secretary of Labor if the Governor of their State denies 
their request to retain SDA status.
  Without my amendment, 59 cities, with 200,000 people or more, that 
had previously been SDAs but whose populations are under the new 
500,000 threshold, would have to specially request SDA designation from 
their State. Among others, these cities include Denver, Colorado; Fort 
Worth, Texas; Long Beach, California; Akron, Ohio; Omaha, Nebraska; and 
two cities in my state of New Jersey, Jersey City and Newark. If 
Governors have sole discretion to terminate SDA designations, 
successful and long standing community job training programs would be 
terminated. This could be disruptive to cities that are taking 
leadership roles in implementing welfare-to-work job training programs 
to meet welfare reform goals.
  I support the goal of S.1186 to consolidate job training and 
employment programs into a more efficient workforce development system. 
I believe that creating an appeal mechanism for existing SDA designated 
cities with productive programs, like Newark and Jersey City, will 
enhance this legislation's objective to meet that goal.
  I want to thank the bill's managers, Senators DeWine and Wellstone, 
as well as the Ranking Democratic Member on the Labor Committee, 
Senator Kennedy, for working with me on this issue. They should be 
congratulated on creating a strong, bipartisan bill. I am grateful that 
Senator Wellstone, Senator Kennedy and Secretary Herman have committed 
their support to this provision when S.1186 goes to conference.
  Mr. DeWINE. Mr. President, I would like to take this opportunity to 
discuss and explain that portion of the Workforce Investment 
Partnership Act that deals with States' ``Service Delivery Areas.''
  As I have stated before, the current system of Federal job training 
programs is no system at all. Consumers, individuals seeking 
assistance, and businesses seeking to hire them face a fragmented and 
duplicative maze of narrowly focused programs that lack coordination, a 
coherent strategy to provide training assistance, and the confidence of 
the consumers who need to use the services.
  These problems are the result of numerous shortcomings that have 
developed over time and become part of a dated and neglected job 
training system that no longer considers the needs or resources of the 
States and localities it serves.
  One of the current system's largest shortcomings is its ineffective 
designation of over 600 Service Delivery Areas. These 600 plus regions 
are a tremendous burden on the country's job training system and one of 
the greatest contributors to ``a complex patchwork of overlapping 
bureaucratic responsibilities.''
  Over the past 15 years, it has been the Federal government deciding 
where these Service Delivery Areas would be.
  Over the past 15 years, the Federal government used a general federal 
mandate and chose the number ``200,000'' to represent what it thought 
the appropriate population of Service Delivery Areas should be.
  Over the past 15 years, the Federal government's Service Delivery 
Area criteria remained stagnant while States continued to grow and 
change.
  The number 200,000 no longer adequately reflects the needs or 
resources of each and every State. It does not allow States to take 
their economic development or empowerment zones into account. It does 
not flex to reflect the ever-changing populations of cities and 
counties. In many urban areas it fragments a much larger labor market 
making coordination among State and local employment agencies difficult 
if not impossible.
  The ``Washington-knows-best'' ``one-size-fits-all'' approach no 
longer works and we have the past 15 years to prove it.
  To fix this problem--to clear out this bureaucracy--and to create a 
cleaner more accountable and more efficient job training system, we 
must do away with the paternalistic Washington mentality, return the 
Service Delivery Area designation decisions to the States and 
localities, and ultimately lower the number of Service Delivery Areas.
  To do this, the bill outlines four criteria to be followed in 
selecting the State's Service Delivery Areas:
  The States and their localities must ensure that there is a link 
between participants in workforce investment activities and local 
employment opportunities;
  The States and their localities must ensure that a significant number 
of people who live in the proposed area also work in the area;
  The States and their localities must ensure that neighboring Service 
Delivery Areas cooperate with each other and coordinate their 
activities; and finally
  The States and their localities must ensure that the State economic 
development areas are taken into consideration.
  Currently, it is the Federal Government that decides what regions 
will become Service Delivery Areas and what regions will not.
  Under this new law, this cleaner, more accountable, and more 
effective system, it is the States and local communities that will make 
these decisions; it is the States and local communities that will have 
a true understanding of how to best apply these four new criteria; and 
it will be the States and local communities that determine how their 
job training dollars will best be used.
  Mr. President, we can no longer afford the ``Washington knows best'' 
mentality. That is the thinking that created the current maze and 
bureaucratic patchwork of job training programs. That is the thinking 
that brings us here today--needing to change the system and fix its 
problems. We must put the decisions, such as Service Delivery Area 
designation, in the hands of those who are closest to their needs and 
resources.
  This bill, and the positive changes it makes to the way Service 
Delivery Areas are currently designated, will help eliminate the 
``Washington one-size-fits-all mentality'' and allow States, their 
Governors, their cities, and their municipalities--through a consensus 
process--to change the status quo and develop a more effective and 
locally controlled job training system.
  Mr. President, I yield the floor.
  Mr. JEFFORDS. Mr. President, I ask that the amendment be adopted. It 
is accepted on both sides of the aisle.
  The PRESIDING OFFICER. Without objection, the amendment is agreed to.
  The amendment (No. 2333) was agreed to.


                Amendment No. 2334 to Amendment No. 2329

 (Purpose: To establish a demonstration program that locates secondary 
     schools on the sites of community colleges for the purpose of 
                     conducting tech-prep programs)

  Mr. JEFFORDS. Mr. President, I send to the desk an amendment on 
behalf of Senator Domenici.
  The PRESIDING OFFICER. The clerk will report.
  The bill clerk read as follows:

       The Senator from Vermont [Mr. Jeffords], for Mr. Domenici, 
     proposes an amendment numbered 2334 to amendment No. 2329.

  Mr. JEFFORDS. Mr. President, I ask unanimous consent that the reading 
of the amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:

       After section 157, insert the following:

     SEC. 158. DEMONSTRATION PROGRAM.

       (a) Demonstration Program Authorized.--From funds 
     appropriated under subsection (e) for a fiscal year, the 
     Secretary shall award grants to consortia described in 
     section 154(a) to enable the consortia to carry out tech-prep 
     education programs.
       (b) Program Contents.--Each tech-prep program referred to 
     in subsection (a)--
       (1) shall--
       (A) involve the location of a secondary school on the site 
     of a community college;
       (B) involve a business as a member of the consortium; and
       (C) require the voluntary participation of secondary school 
     students in the tech-prep education program; and
       (2) may provide summer internships at a business for 
     students or teachers.
       (c) Application.--Each consortium desiring a grant under 
     this section shall submit an application to the Secretary at 
     such time, in such manner and accompanied by such information 
     as the Secretary may require.
       (d) Applicability.--The provisions of sections 154, 155, 
     156, and 157 shall not apply to this section, except that--

[[Page S4021]]

       (1) the provisions of section 154(a) shall apply for 
     purposes of describing consortia eligible to receive 
     assistance under this section;
       (2) each tech-prep education program assisted under this 
     section shall meet the requirements of paragraphs (1), (2), 
     (3)(A), (3)(B), (3)(C), (3)(D), (4), (5), (6), and (7) of 
     section 155(b), except that such paragraph (3)(B) shall be 
     applied by striking ``, and where possible and practicable, 
     4-year institutions of higher education through 
     nonduplicative sequence of courses in career fields''; and
       (3) in awarding grants under this section, the Secretary 
     shall give special consideration to consortia submitting 
     applications under subsection (c) that meet the requirements 
     of paragraphs (1), (3), (4), and (5) of section 156(d), 
     except that such paragraph (1) shall be applied by striking 
     ``or the transfer of students to 4-year institutions of 
     higher education''.
       (e) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $25,000,000 for 
     fiscal year 1999 and each of the 5 succeeding fiscal years.

  Mr. JEFFORDS. Mr. President, this amendment will establish a tech-
prep demonstration program that locates secondary schools on the sites 
of community colleges. Tech-prep is an outstanding program. I believe 
this amendment will enhance tech-prep activities. I ask my colleagues 
to support it. I know of no objection to the amendment.
  The PRESIDING OFFICER. Without objection, the amendment is agreed to.
  The amendment (No. 2334) was agreed to.


                              section 367

  Mr. DeWINE. Mr. President, I would like to engage in a brief colloquy 
with the distinguished ranking member of the Subcommittee on Employment 
and Training, Senator Wellstone, concerning the initiatives covered by 
section 367 of the bill. Mr. President, I strongly feel that clarifying 
the intent of this section will be helpful in my efforts to ensure that 
a very worthwhile initiative in Northeastern, Ohio receives favorable 
consideration by the Department of Labor.
  As I understand it, section 367 authorizes the Secretary of Labor to 
carry out demonstration projects to develop new techniques, different 
approaches, and specialized methods to address communities; employment 
and training needs. This section also requires the community or entity 
to substantially contribute to their project's funding, have expertise 
in undertaking national demonstration projects, or have expertise in 
overseeing employment and training programs.
  The Ohio initiative I referred to establishes an Engineering and 
Training Center which will provide employers, employees, students, and 
the underemployed access to job training services and course work 
germane the region's existing manufacturing base as well as its 
fledgling information technology industries. For example, the Center 
would provide welders, who recently lost their jobs when Ford Motor 
Company closed its Thunderbird and Econoline plants, computer software 
instruction for new computer controlled welding equipment. The 
Engineering and Training Center would also contain working laboratories 
where employees would receive custom training on the latest technology 
equipment.
  Would the Senator agree that the establishment of such an Engineering 
and Training Center, whose principal focus is to provide job training 
to workers in a community suffering from the closure of auto and steel 
plants, is the type of activity section 367 encourages? And would the 
willingness of local foundations to provide half the cost of such an 
initiative satisfy the bill's substantial funding equipment?
  Mr. WELLSTONE. I agree with my friend's reading of section 367. Its 
demonstration and pilot project section clearly is meant to encourage 
projects to help develop and implement techniques, approaches and 
methods such as those the Senator informs us are contained in the 
proposal from his state for an engineering and training center. I would 
also certainly think that local private funding of 50 percent would 
qualify as ``a substantial portion.''
  Mr. DeWINE. Would the Senator agree that a County Community College, 
which functions as an integral part of the county's welfare-to-work 
initiative, and whose President who has won national awards and is the 
driving force in virtually every job training initiative in the region, 
addresses the bill's ``expertise in employment and training programs?
  Mr. WELLSTONE. I would fully expect the Department to give all due 
consideration to a proposal from an institution and chairman with such 
impressive credentials and expertise.
  Mr. DeWINE. I thank the Senator.


                    Migrant and Seasonal Farmworkers

  Mr. WELLSTONE. Mr. President, it has been a pleasure working with my 
colleague from OHIO on this bill. I appreciate his extremely hard work. 
I would like to confirm my understanding of a provision of the bill and 
ensure it is the same as the understanding of my colleague. For 
purposes of programs authorized under Title III of the bill, that is, 
the Workforce Investment Activities title, housing is considered to be 
an eligible supportive service. That is specified in the bill's 
definition section. In Section 362 of Title III, the section dealing 
with migrant and seasonal farmworker programs, a range of workforce 
investment activities are authorized, including employment and training 
assistance. The section then also authorizes further related assistance 
for eligible migrant and seasonal farmworkers, including supportive 
services.
  For a number of years, the Labor Department has provided funding to a 
small number of single purpose grantees which provide an essential 
supportive service to farmworkers: improving their housing conditions. 
As S. 1186 defines supportive services to include housing and includes 
supportive services as eligible workforce investment related assistance 
for farmworkers, it seems clear to me that the bill would allow the 
Secretary to continue to make grants for farmworker housing.
  Mr. DeWINE. The Senator is correct. Under the bill, the Secretary 
would have the discretion to continue grants to improve farmworker 
housing.
  Mr. WELLSTONE. I thank the Senator.
  Mr. JEFFORDS. Mr. President, I would not object to the Senator from 
Missouri speaking in morning business for a period, I believe, of up to 
10 minutes.
  Mr. ASHCROFT. Mr. President, I ask unanimous consent that I have an 
opportunity to speak as in morning business for up to 6 minutes, until 
11 o'clock.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. ASHCROFT. I thank the Chair.
  (The remarks of Mr. Ashcroft pertaining to the introduction of S. 
2023 and S. 2028 located in today's Record under ``Statements on 
Introduced Bills and Joint Resolutions.'')
  Mr. ASHCROFT. I thank the Senator from Vermont, the Senator from 
Ohio, and the Senator from Georgia in allowing me to make these 
statements and introduce these matters. I yield the floor.
  Mr. JEFFORDS. Mr. President, I suggest the absence of a quorum.
  The PRESIDING OFFICER (Mr. Enzi). The clerk will call the roll.
  The bill clerk proceeded to call the roll.
  Mr. JEFFORDS. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. JEFFORDS. I ask unanimous consent that I be able to proceed as in 
morning business for a period not exceeding 5 minutes.
  The PRESIDING OFFICER. Without objection, it is so ordered.

                          ____________________