[Congressional Record Volume 144, Number 52 (Friday, May 1, 1998)]
[Senate]
[Pages S4041-S4129]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  AMENDMENTS SUBMITTED ON MAY 1, 1998

                                 ______
                                 

            THE WORKFORCE INVESTMENT PARTNERSHIP ACT OF 1998

                                 ______
                                 

                JEFFORDS (AND OTHERS) AMENDMENT NO. 2329

  Mr. JEFFORDS (for himself, Mr. DeWine, Mr. Kennedy,  and Mr. 
Wellstone) proposed an amendment to the bill (S. 1186) to provide for 
education and training, and for other purposes; as follows:

       On page 398, beginning with line 4, strike all through page 
     796, line 18, and insert the following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Workforce 
     Investment Partnership Act of 1998''.
       (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.
Sec. 104. Construction.

                    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.

                      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.
Sec. 135. Consortia.

                    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.
Sec. 167. Promoting scholar-athlete competitions.
Sec. 168. Definition.

              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.

[[Page S4042]]

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.
Sec. 381. Workforce flexibility partnership plans.
Sec. 382. Use of certain real property.
Sec. 383. Continuation of State activities and policies.

             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. Veterans' employment programs.
Sec. 423. Older Americans Act of 1965.

         Subtitle C--Twenty-First Century Workforce Commission

Sec. 431. Short title.
Sec. 432. Findings.
Sec. 433. Definitions.
Sec. 434. Establishment of Twenty-First Century Workforce Commission.
Sec. 435. Duties of the Commission.
Sec. 436. Powers of the Commission.
Sec. 437. Commission personnel matters.
Sec. 438. Termination of the Commission.
Sec. 439. Authorization of appropriations.

                      TITLE V--GENERAL PROVISIONS

Sec. 501. State unified plan.
Sec. 502. Definitions for core indicators of performance.
Sec. 503. Transition provisions.
Sec. 504. Privacy.
Sec. 505. Effective date.

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) Adult.--In paragraph (14) and title III (other than 
     section 302), 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 public or nonprofit technical institute or vocational 
     school used exclusively or principally for the provision of 
     vocational education to individuals who--
       (i)(I) have completed public secondary school; or
       (II) have left public secondary school; and
       (ii) seek to study and prepare for entering the labor 
     market; or
       (D) the department or division of a junior college, 
     community college, or university that--
       (i) operates under the policies of the appropriate State 
     agency that oversees postsecondary education and is approved 
     under subpart 2 of part H of title IV of the Higher Education 
     Act of 1965 (20 U.S.C. 1099b et seq.); and
       (ii) provides vocational education in not fewer than 5 
     different occupational fields leading to immediate employment 
     but not necessarily leading to a degree; and
       (iii) 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--
       (A) the chief elected executive officer of a unit of 
     general local government in a local area; and
       (B) in a case in which a local area includes more than 1 
     unit of general local government, the individuals designated 
     under the agreement described in section 308(d)(1)(B)(i).
       (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 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

[[Page S4043]]

     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'' in the 
     case of vocational education, or adult education and 
     literacy, activities or requirements described in this Act, 
     means the sole entity or agency in a State or an outlying 
     area responsible for administering or supervising policy for 
     vocational education, or adult education and literacy, 
     respectively, in the State or outlying area, respectively, 
     consistent with the law of the State or outlying area, 
     respectively.
       (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'' means an institution of higher education, as 
     defined 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 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(c).
       (24) Low-income individual.--In paragraph (51) 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.
       (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

[[Page S4044]]

     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(b).
       (41) Statewide partnership.--The term ``statewide 
     partnership'' means a partnership established under section 
     303.
       (42) Supportive services.--
       (A) Title i.--In title I, the term ``supportive services'' 
     means services related to curriculum modification, equipment 
     modification, classroom modification, supportive personnel, 
     and instructional aids and devices.
       (B) Title iii.--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) 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.
       (46) Vocational education.--The term ``vocational 
     education'' means organized education that--
       (A) offers a sequence of courses that provides individuals 
     with the academic and technological knowledge and skills the 
     individuals need to prepare for further education and for 
     careers (other than careers requiring a baccalaureate, 
     master's, or doctoral degree) 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, technological 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) Vocational student organization.--
       (A) In general.--The term ``vocational student 
     organization'' means an organization for individuals enrolled 
     in a vocational education program.
       (B) State and national units.--An organization described in 
     subparagraph (A) may have State and national units that 
     aggregate the work and purposes of instruction in vocational 
     education at the local level.
       (49) Welfare recipient.--The term ``welfare recipient'' 
     means a person receiving payments described in paragraph 
     (24)(A).
       (50) Workforce investment activity.--The term ``workforce 
     investment activity'' means an employment and training 
     activity, a youth activity, and an activity described in 
     section 314.
       (51) Youth.--In paragraph (52) and title III (other than 
     section 302 and 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.
       (52) Youth activity.--The term ``youth activity'' means an 
     activity described in section 316, carried out for youth.
       (53) 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 1998''.

     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 world economy by 
     developing more fully the academic, technological, 
     vocational, and employability skills of secondary students 
     and postsecondary students who elect to enroll in vocational 
     education programs, by--

[[Page S4045]]

       (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, including a vocational 
     education program that requires the attainment of a federally 
     funded skill level or standard.

     SEC. 104. CONSTRUCTION.

       Nothing in this Act shall be construed to permit, allow, 
     encourage, or authorize any Federal control over any aspect 
     of a private, religious, or home school, regardless of 
     whether a home school is treated as a private school or home 
     school under State law. This section shall not be construed 
     to bar students attending private, religious, or home schools 
     from participation in programs or services under this Act.
                    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) 1.80 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) 0.30 percent of the sum shall be available to carry 
     out section 115; and
       (C) 1.3 percent 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 for each of the fiscal 
     years 2001 through 2005.
       (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 and the United 
     States Virgin Islands), 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 and the United States Virgin Islands 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.
       (d) Definition of State.--For the purpose of this section, 
     the term ``State'' means each of the several States of the 
     United States, the Commonwealth of Puerto Rico, the District 
     of Columbia, and the United States Virgin Islands.

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

       (a) Publication of Performance Measures.--
       (1) In general.--The Secretary shall publish the following 
     performance measures to assess the progress of each eligible 
     agency:
       (A) Student attainment of academic skills.
       (B) Student attainment of job readiness skills.
       (C) Student attainment 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.
       (D) Receipt of a postsecondary degree or certificate.
       (E) Retention in, and completion of, secondary school 
     education (as determined under State law), placement in, 
     retention in, and completion of postsecondary education, 
     employment, or military service.
       (F) Participation in and completion of vocational education 
     programs that lead to nontraditional employment.
       (2) Special rule.--The Secretary shall establish 1 set of 
     performance measures for students served under this title, 
     including populations described in section 124(c)(16).
       (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).

[[Page S4046]]

     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; and
       (2) 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 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);
       (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; and
       (D) the terms ``Indian'' and ``Indian tribe'' have the 
     meanings given the terms in section 2 of the Tribally 
     Controlled Community College Assistance Act of 1978 (25 
     U.S.C. 1801).
       (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) Tribes and tribal organizations.--Such grants or 
     contracts with any tribes or 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) Regulations.--If the Secretary promulgates any 
     regulations applicable to subparagraph (B), the Secretary 
     shall--
       (i) confer with, and allow for active participation by, 
     representatives of Indian tribes, tribal organizations, and 
     individual tribal members; and
       (ii) promulgate the regulations under subchapter III of 
     chapter 5 of title 5, United States Code, commonly known as 
     the ``Negotiated Rulemaking Act of 1990''.
       (D) 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.
       (E) 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 levels 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.
       (F) 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.
       (G) 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.

       (H) 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 shall 
     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, for the 
     planing, conduct, or administration of programs, or portions 
     thereof, that are described in this title 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

[[Page S4047]]

     the improvement and expansion of the physical resources of 
     such institutions.
       (b) Grants Authorized.--
       (1) In general.--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.
       (2) Amount of grants.--
       (A) In general.--If the sum appropriated for any fiscal 
     year for grants under this section is not sufficient to pay 
     in full the total amount that approved applicants are 
     eligible to receive under this section for such fiscal year, 
     the Secretary shall first allocate to each such applicant 
     that received funds under this part for the preceding fiscal 
     year an amount equal to 100 percent of the product of the per 
     capita payment for the preceding fiscal year and such 
     applicant's Indian student count for the current program 
     year, plus an amount equal to the actual cost of any increase 
     to the per capita figure resulting from inflationary 
     increases to necessary costs beyond the institution's 
     control.
       (B) Per capita determination.--For the purposes of 
     paragraph (1), the per capita payment for any fiscal year 
     shall be determined by dividing the amount available for 
     grants to tribally controlled postsecondary vocational 
     institutions under this part for such program year by the sum 
     of the Indian student counts of such institutions for such 
     program year. The Secretary shall, on the basis of the most 
     accurate data available from the institutions, compute the 
     Indian student count for any fiscal year for which such count 
     was not used for the purpose of making allocations under this 
     section.
       (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 postsecondary 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 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.
       (C) 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.
       (3) Indian student count.--The term ``Indian student 
     count'' means a number equal to the total number of Indian 
     students enrolled in each tribally controlled postsecondary 
     vocational institution, determined as follows:
       (A) Registrations.--The registrations of Indian students as 
     in effect on October 1 of each year.
       (B) Summer term.--Credits or clock hours toward a 
     certificate earned in classes offered during a summer term 
     shall be counted toward the computation of the Indian student 
     count in the succeeding fall term.
       (C) Admission criteria.--Credits or clock hours toward a 
     certificate earned in classes during a summer term shall be 
     counted toward the computation of the Indian student count if 
     the institution at which the student is in attendance has 
     established criteria for the admission of such student on the 
     basis of the student's ability to benefit from the education 
     or training offered. The institution shall be presumed to 
     have established such criteria if the admission procedures 
     for such

[[Page S4048]]

     studies include counseling or testing that measures the 
     student's aptitude to successfully complete the course in 
     which the student has enrolled. No credit earned by such 
     student for purposes of obtaining a secondary school diploma 
     or its recognized equivalent shall be counted toward the 
     computation of the Indian student count.
       (D) Determination of hours.--Indian students earning 
     credits in any continuing education program of a tribally 
     controlled postsecondary vocational institution shall be 
     included in determining the sum of all credit or clock hours.
       (E) Continuing education.--Credits or clock hours earned in 
     a continuing education program shall be converted to the 
     basis that is in accordance with the institution's system for 
     providing credit for participation in such programs.

     SEC. 116. INCENTIVE GRANTS.

       (a) In General.--The Secretary may make grants to States 
     that exceed the expected levels of performance for 
     performance measures established under this Act.
       (b) 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 vocational education, adult 
     education and literacy, or workforce investment 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 assist students 
     in meeting 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) providing gender equity programs 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 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;
       (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) Plan Development.--The eligible agency shall develop 
     the State plan with representatives of secondary and 
     postsecondary vocational education, parents, representatives 
     of populations described in section 124(c)(16), and 
     businesses, in the State and shall also consult the Governor 
     of the State.
       (c) Plan Contents.--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 and technological 
     education with 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 relates to 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 the eligible agency's program strategies for 
     populations that include, at a minimum--
       (A) low-income individuals, including foster children;

[[Page S4049]]

       (B) individuals with disabilities;
       (C) single parents and displaced homemakers; and
       (D) individuals with other barriers to educational 
     achievement, including individuals with limited English 
     proficiency;
       (17) describes how individuals who are members of the 
     special populations described in subsection (c)(16)--
       (A) will be provided with equal access to activities 
     assisted under this title; and
       (B) will not be discriminated against on the basis of their 
     status as members of the special populations; and
       (18) contains the description and information specified in 
     paragraphs (9) and (17) 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.
       (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) Assurances.--A State plan shall contain assurances that 
     the State will comply with the requirements of this title and 
     the provisions of the State plan, and provide for such fiscal 
     control and fund accounting procedures that may be necessary 
     to ensure the proper disbursement of, and accounting for, 
     funds paid to the State under this title.
       (f) 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) for a local educational agency that is 
     located in a rural, sparsely populated area.
       (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 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.); or

       (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--

[[Page S4050]]

       (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) Special rule for consortia.--In order for a consortium 
     described in section 2(12)(E) to receive assistance under 
     this section, such consortium shall operate joint projects 
     that--
       (A) provide services to all postsecondary institutions 
     participating in the consortium; and
       (B) are of sufficient size, scope, and quality to be 
     effective.
       (4) 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.
       (5) 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 initiate, improve, expand, and modernize quality 
     vocational education programs;
       (2) to improve or expand the use of technology in 
     vocational instruction, including professional development in 
     the use of technology, which instruction may include distance 
     learning;
       (3) to provide services and activities that are of 
     sufficient size, scope, and quality to be effective;
       (4) to integrate academic education with vocational 
     education for students participating in vocational education;
       (5) to link secondary education (as determined under State 
     law) and postsecondary education, including implementing 
     tech-prep programs;
       (6) 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;
       (7) to develop and implement programs that provide access 
     to, and the supportive services needed to participate in, 
     quality vocational education programs for students, including 
     students who are members of the populations described in 
     section 124(c)(16);
       (8) to develop and implement performance management systems 
     and evaluations; and
       (9) 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 vocational education 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;
       (3) describe how the local educational agency or eligible 
     institution, as appropriate, will plan and consult with 
     students, parents, representatives of populations described 
     in section 124(c)(16), businesses, labor organizations, and 
     other interested individuals, in carrying out activities 
     under this subtitle;
       (4) describe how the local educational agency or eligible 
     institution, as appropriate, will review vocational education 
     programs, and identify and adopt strategies to overcome 
     barriers that result in lowering rates of access to the 
     programs, for populations described in section 124(c)(16); 
     and
       (5) describe how individuals who are members of the special 
     populations described in section 124(c)(16) will not be 
     discriminated against on the basis of their status as members 
     of the special populations.

     SEC. 135. CONSORTIA.

       A local educational agency and an eligible institution may 
     form a consortium to carry out the provisions of this chapter 
     if the sum of the amount the consortium receives for a fiscal 
     year under sections 131 and 132 equals or exceeds $65,000.
                    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 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) with a minimum of 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;

[[Page S4051]]

       (D) builds student competence in mathematics, science, 
     reading, writing, 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 between 
     or among--
       (A) a local educational agency, an intermediate educational 
     agency or area vocational education school serving secondary 
     school students, or a secondary school funded by the Bureau 
     of Indian Affairs; and
       (B)(i) a nonprofit institution of higher education that 
     offers--
       (I) a 2-year associate degree program, or a 2-year 
     certificate program, and is 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 an 
     institution receiving assistance under the Tribally 
     Controlled Community College Assistance Act of 1978 (25 
     U.S.C. 1801 et seq.) and a tribally controlled postsecondary 
     vocational institution; or
       (II) a 2-year apprenticeship program that follows secondary 
     instruction,
     if such nonprofit institution of higher education is 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) a proprietary institution of higher education that 
     offers a 2-year associate degree program and is qualified as 
     an institution of higher education pursuant to section 481(a) 
     of the Higher Education Act of 1965 (20 U.S.C. 1088(a)), if 
     such proprietary institution of higher education is not 
     subject to a default management plan required by the 
     Secretary.
       (2) Special rule.--In addition, a consortium described in 
     paragraph (1) may include 1 or more--
       (A) institutions of higher education that award a 
     baccalaureate degree; and
       (B) employer or labor organizations.
       (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, reading, writing, 
     communications, and technologies designed to lead to an 
     associate's 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 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 supplant, non-Federal 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

[[Page S4052]]

     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 local educational agency or eligible institution, in 
     consultation with teachers, parents, and other school staff, 
     shall--
       (1) conduct an assessment of the educational and other 
     problems that the local educational agency or eligible 
     institution shall address to overcome local performance 
     problems;
       (2) enter into an improvement plan based on the results of 
     the assessment, which plan shall include instructional and 
     other programmatic innovations of demonstrated effectiveness, 
     and where necessary, strategies for appropriate staffing and 
     staff development; and
       (3) conduct regular evaluations of the progress being made 
     toward program improvement goals.
       (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 number of vocational education students and tech-
     prep students who meet State academic standards;
       (B) the extent and success of integration of academic and 
     vocational education for students participating in vocational 
     education programs; and
       (C) 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;
       (7) the use and impact of educational technology and 
     distance learning with respect to vocational education and 
     tech-prep programs; and
       (8) 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) education technology and distance learning approaches 
     and strategies that are effective with respect to vocational 
     education;
       (D) performance measures and expected levels of performance 
     that serve to improve vocational education programs and 
     student achievement;
       (E) effects of economic changes on the kinds of knowledge 
     and skills required for employment or participation in 
     postsecondary education;
       (F) longitudinal studies of student achievement; and
       (G) 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

[[Page S4053]]

     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
       (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, 
     including an analysis of performance data regarding the 
     populations described in section 124(c)(16).
       (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.

     SEC. 167. PROMOTING SCHOLAR-ATHLETE COMPETITIONS.

       Section 10104 of the Elementary and Secondary Education Act 
     of 1965 (20 U.S.C. 8004) is amended--
       (1) in subsection (a), by striking ``to be held in 1995''; 
     and
       (2) in subsection (b)--
       (A) in paragraph (4), by striking ``in the summer of 
     1995;'' and inserting ``; and'';
       (B) in paragraph (5), by striking ``in 1996 and thereafter, 
     as well as replicate such program internationally; and'' and 
     inserting ``and internationally.''; and
       (C) by striking paragraph (6).

     SEC. 168. DEFINITION.

       In this title, the term ``gender equity'', used with 
     respect to a program, service, or activity, means a program, 
     service, or activity that is designed to ensure that men and 
     women (including single parents and displaced homemakers) 
     have access to opportunities to participate in vocational 
     education that prepares the men and women to enter high-
     skill, high-wage careers.
              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 1998''.
       (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 
     1998'';
       (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 1998'';
       (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 1998''.
       (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 1998''.
       (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 1998''; 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 1998''.
       (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 
     1998''.
       (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 1998''.
                 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

[[Page S4054]]

     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.
       (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) Performance Measures.--The Secretary shall publish the 
     following performance measures to assess the progress of each 
     eligible agency:
       (1) Demonstrated improvements in literacy skill levels in 
     reading, writing and speaking 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.
       (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, of which not more than 10 percent of the 
     80 percent shall be available to carry out section 225;
       (2) shall use not more than 15 percent of the grant funds 
     to carry out State leadership activities under section 223; 
     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.
       (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

[[Page S4055]]

     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;
       (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, including individuals with limited English 
     proficiency;
       (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) training activities carried out by the Department of 
     Housing and Urban Development; and
       (H) programs authorized under State unemployment 
     compensation laws in accordance with applicable Federal law; 
     and
       (14) the description and information specified in 
     paragraphs (9) and (17) 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.

     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

[[Page S4056]]

     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--
       (A) local areas with high concentrations of individuals in 
     poverty or with low levels of literacy (including English 
     language proficiency); or
       (B) local communities that have a demonstrated need for 
     additional English as a second language programs; 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 the expected levels of performance for 
     performance measures established under this Act.
       (b) 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 vocational education, adult 
     education and literacy, or workforce investment programs as 
     determined by the State.

     SEC. 244. EVALUATION, IMPROVEMENT, AND ACCOUNT- ABILITY.

       (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,

[[Page S4057]]

     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.
       (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 
     1998''.
       (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 1998''.
       (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 1998''.
       (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 1998''.
       (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 1998''.
       (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 1998''.
       (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 subsection 
     (b)(2)(A), and under sections 366(b)(2), 367(f), and 369; and
       (B) make allotments from 80 percent of the amount 
     appropriated under section 322(b) for a fiscal year in 
     accordance with subsection (b)(2)(B); 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 United States Virgin 
     Islands, Guam, American Samoa, and the Commonwealth of the 
     Northern Mariana Islands 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

[[Page S4058]]

     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 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 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 clause (iii) 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 clause (iii) 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, except as described in clause (iii).

       (iii) Calculation.--In determining an allotment under 
     clause (ii)(III) for any State in which there is a local area 
     designated under section 307(a)(2)(A)(ii), the allotment 
     shall be based on the higher of--

       (I) the number of adults in families with an income below 
     the low-income level in such area; or
       (II) the number of disadvantaged adults in such area.

       (iv) Minimum and maximum percentages and minimum 
     allotments.--In making allotments under this subparagraph, 
     the Secretary shall ensure the following:

       (I) Minimum percentage.--The Secretary shall ensure that 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) Small state minimum allotment.--Subject to subclauses 
     (I) and (III), the Secretary shall ensure that no State shall 
     receive an allotment under this subparagraph that is less 
     than \2/5\ of 1 percent of the remainder described in clause 
     (i) for a fiscal year.

       (III) Maximum percentage.--Subject to subclause (I), the 
     Secretary shall ensure that no State shall receive an 
     allotment percentage for a fiscal year that is more than 130 
     percent of the allotment percentage of the State for the 
     preceding fiscal year.

       (v) Definitions.--In this subparagraph:

       (I) Adult.--The term ``adult'' means an individual who is 
     not less than age 22 and not more than age 72.
       (II) 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 allotted to States under section 202(a) of the Job 
     Training Partnership Act (29 U.S.C. 1602(a)) (as in effect on 
     the day before the date of enactment of this Act) received 
     under such section by the State involved for fiscal year 
     1998.
       (III) 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.
       (IV) Disadvantaged adult.--Subject to subclause (V), the 
     term ``disadvantaged adult'' means an adult who received an 
     income, or is a member of a family that received a total 
     family income, that, in relation to family size, does not 
     exceed the higher of--

       (aa) the poverty line; or
       (bb) 70 percent of the lower living standard income level.

       (V) Disadvantaged adult special rule.--The Secretary shall, 
     as appropriate and to the extent practicable, exclude 
     students at an institution of higher education and members of 
     the Armed Forces from the determination of the number of 
     disadvantaged adults.
       (VI) Excess number.--The term ``excess number'' means, used 
     with respect to the excess number of unemployed individuals 
     within a State, the higher of--

       (aa) the number that represents the number of unemployed 
     individuals in excess of 4.5 percent of the civilian labor 
     force in the State; or
       (bb) the number that represents the number of unemployed 
     individuals in excess of 4.5 percent of the civilian labor 
     force in areas of substantial unemployment in such State.
       (2) Dislocated worker employment and training.--
       (A) Outlying areas.--
       (i) In general.--From the amount made available under 
     subsection (a)(2)(A) for a fiscal year, the Secretary shall 
     reserve not more than \1/4\ of 1 percent of the amount made 
     available under subsection (a)(2)--

       (I) to provide assistance to the United States Virgin 
     Islands, Guam, American Samoa, and the Commonwealth of the 
     Northern Mariana Islands 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(e) of the Job Training Partnership 
     Act (29 U.S.C. 1652(e)) (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 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 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 clause (iii) 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 clause (iii) 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.--The Secretary shall allot the amount 
     referred to in subsection

[[Page S4059]]

     (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 amount--

       (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 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 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.

       (iii) Definition.--In this subparagraph, the term ``excess 
     number'' means, used with respect to the excess number of 
     unemployed individuals within a State, the number that 
     represents the number of unemployed individuals in excess of 
     4.5 percent of the civilian labor force in the State.
       (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 and other activities 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.
       (iv) Role model academy project.--From the portion 
     described in clause (i) for fiscal year 1999, the Secretary 
     shall make available not more than $10,000,000 to carry out 
     section 364(g).
       (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 United States Virgin 
     Islands, Guam, American Samoa, and the Commonwealth of the 
     Northern Mariana Islands 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 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 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 clause (iii) 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 clause (iii) 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 clauses (iii) and (iv), 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, except as described in clause (iii).

       (iii) Calculation.--In determining an allotment under 
     clause (ii)(III) for any State in which there is a local area 
     designated under section 307(a)(2)(A)(ii), the allotment 
     shall be based on the higher of--

       (I) the number of youth in families with an income below 
     the low-income level in such area; or
       (II) the number of disadvantaged youth in such area.

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

       (I) In general.--Except as provided in subclause (II), the 
     requirements of clauses (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 
     allotted to States under sections 252(b) and 262(a) of the 
     Job Training Partnership Act (29 U.S.C. 1631(b) and 1642(a)) 
     (as in effect on the day before the date of enactment of this 
     Act) received under such sections by the State involved for 
     fiscal year 1998.
       (v) Definitions.--In this subparagraph:

       (I) Disadvantaged youth.--The term ``disadvantaged youth'' 
     means a youth who received an income, or is a member of a 
     family that received a total family income, that, in relation 
     to family size, does not exceed the higher of--

       (aa) the poverty line; or
       (bb) 70 percent of the lower living standard income level.

       (II) Disadvantaged youth special rule.--The Secretary 
     shall, as appropriate and to the extent practicable, exclude 
     students at an institution of higher education and members of 
     the Armed Forces from the determination of the number of 
     disadvantaged youth.
       (III) Youth.--The term ``youth'' means an individual who is 
     not less than age 16 and not more than age 21.

       (4) Definitions.--In this subsection:
       (A) Freely associated states.--The term ``Freely Associated 
     States'' means the Republic of the Marshall Islands, the 
     Federated States of Micronesia, and the Republic of Palau.
       (B) Low-income level.--The term ``low-income level'', used 
     with respect to a year, means that amount that bears the same 
     relationship to $7,000 as the Consumer Price Index for that 
     year bears to the Consumer Price Index for 1969, rounded to 
     the nearest $1,000.

     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;

[[Page S4060]]

       (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, including representatives of labor 
     organizations and businesses, 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.
       (f) Alternative Entity.--
       (1) In general.--For purposes of complying with subsections 
     (a), (b), and (c), a State may use any State entity 
     (including a State council, State workforce development 
     board, combination of regional workforce development boards, 
     or similar entity) that--
       (A) is in existence on December 31, 1997;
       (B)(i) is established pursuant to section 122 or title VII 
     of the Job Training Partnership Act (29 U.S.C. 1532 or 1792 
     et seq.), as in effect on December 31, 1997; or
       (ii) is substantially similar to the statewide partnership 
     described in subsections (a), (b), and (c); and
       (C) includes representatives of business in the State and 
     representatives of labor organizations in the State.
       (2) References.--References in this Act to a statewide 
     partnership shall be considered to include such an entity.

     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 the criteria for recognition of 
     chief elected officials who will carry out the policy, 
     planning, and other responsibilities authorized for the 
     officials in this title in the local areas identified under 
     paragraph (5);
       (7) an identification of criteria for the appointment of 
     members of local partnerships based on the requirements of 
     section 308;
       (8) the detailed plans required under section 8 of the 
     Wagner-Peyser Act;
       (9) 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) training activities carried out by the Department of 
     Housing and Urban Development; and
       (I) programs authorized under State unemployment 
     compensation laws (in accordance with applicable Federal 
     law);
       (10) a description of the process used by the State, 
     consistent with section 303(e)(2), to provide an opportunity 
     for public comment, including comment by representatives of 
     labor organizations and businesses, and input into the 
     development of the State plan, prior to submission of the 
     plan;
       (11) a description of the process for the public to comment 
     on members of the local partnerships;
       (12) a description of the length of terms and appointment 
     processes for members of the statewide partnership and local 
     partnerships in the State;
       (13) information identifying how the State will leverage 
     any funds the State receives under this subtitle with other 
     private and Federal resources;
       (14) 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;
       (15) 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;
       (16) 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;
       (17) 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);
       (18) information specifying the actions that constitute a 
     conflict of interest prohibited in the State for purposes of 
     section 308(g)(2)(B);
       (19) 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;
       (20) with respect to employment and training activities 
     funded under this subtitle--
       (A) information describing the employment and training 
     activities that will be carried out with the funds the State 
     receives under this subtitle, describing how the State will 
     provide rapid response activities to dislocated workers, and 
     designating an identifiable State rapid response dislocated 
     worker unit, to be funded under section 306(a)(2) to carry 
     out statewide rapid response activities, and an assurance 
     that veterans will be afforded services under this subtitle 
     to the extent practicable;
       (B) information describing the State strategy for 
     development of a fully operational statewide one-stop 
     customer service system as described in section 315(b), 
     including--

[[Page S4061]]

       (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) information describing the criteria used by the local 
     partnership in the development of the local plan described in 
     section 309; and
       (D) information describing the procedures the State will 
     use to identify eligible providers of training services, as 
     required under this subtitle; and
       (21) 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 and contracts 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 the provisions of this 
     title;
       (2) in the case of the portion of the plan described in 
     section 8(a) of the Wagner-Peyser Act (29 U.S.C. 49g(a)), the 
     portion does not satisfy the criteria for approval provided 
     in section 8(d) of such Act); or
       (3) 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.--
       (i) Allocation.--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 clauses (ii)(III) and (iii) of section 302(b)(1)(B).

       (ii) Minimum percentage.--No local area shall receive an 
     allocation percentage for a fiscal year that is less than 90 
     percent of the average allocation percentage of the local 
     area (or the service delivery area that most closely 
     corresponds to the local area) for the 2 preceding fiscal 
     years. Amounts necessary for increasing such allocations to 
     local areas to comply with the preceding sentence shall be 
     obtained by ratably reducing the allocations to be made to 
     other local areas under this subparagraph.
       (iii) Definition.--The term ``allocation percentage'', used 
     with respect to fiscal year 1999 or a subsequent fiscal year, 
     means a percentage of the funds referred to in clause (i), 
     received through an allocation made under this subparagraph, 
     for the fiscal year. The term, used with respect to fiscal 
     year 1998, means the percentage of the amounts allocated to 
     service delivery areas 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 the service delivery area that most 
     closely corresponds to the local area involved for fiscal 
     year 1998.
       (B) Dislocated worker employment and training activities.--
       (i) Formula.--In allocating the funds described in 
     paragraph (2)(B) to local areas, a State shall allocate the 
     funds based on an allocation formula prescribed by the 
     Governor of the State. Such formula may be amended by the 
     Governor not more than once for each program year. Such 
     formula shall utilize the most appropriate information 
     available to the Governor to distribute amounts to address 
     the State's worker readjustment assistance needs.
       (ii) Information.--The information described in clause (i) 
     shall include--

       (I) insured unemployment data;
       (II) unemployment concentrations;
       (III) plant closing and mass layoff data;
       (IV) declining industries data;
       (V) farmer-rancher economic hardship data; and
       (VI) long-term unemployment data.

       (C) Youth activities.--
       (i) Allocation.--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 clauses (ii)(III) and (iii) of section 302(b)(3)(C).

       (ii) Minimum percentage.--No local area shall receive an 
     allocation percentage for a fiscal year that is less than 90 
     percent of the average allocation percentage of the local 
     area (or the service delivery area that most closely 
     corresponds to the local area) for the 2 preceding fiscal 
     years. Amounts necessary for increasing such allocations to 
     local areas to comply with the preceding sentence shall be 
     obtained by ratably reducing the allocations to be made to 
     other local areas under this subparagraph.
       (iii) Definition.--The term ``allocation percentage'', used 
     with respect to fiscal year 1999 or a subsequent fiscal year, 
     means a percentage of the funds referred to in clause (i), 
     received through an allocation made under this subparagraph, 
     for the fiscal year. The term, used with respect to fiscal 
     year 1998, means the percentage of the amounts allocated to 
     service delivery areas under sections 252(b) and 262(b) of 
     the Job Training Partnership Act (29 U.S.C. (29 U.S.C. 
     1631(b), 1642(b)) (as in effect on the day before the date of 
     enactment of this Act) received under such section by the 
     service delivery area that most closely corresponds to the 
     local area involved for fiscal year 1998.
       (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;
       (ii) references in section 302(b) to all States shall be 
     deemed to be references to all local areas in the State 
     involved;
       (iii) except as described in clauses (i) and (ii), 
     references in paragraphs (1) and (3) of section 302(b) to the 
     term ``excess number'' shall be considered to be references 
     to the term as defined in section 302(b)(1); and
       (iv) except as described in clause (i), a reference in 
     section 302(b)(2) to the term ``excess number'' shall be 
     considered to be a reference to the term as defined in such 
     section.
       (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) incorporates additional factors (other than the factors 
     described in paragraph (3)(A)) 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--

[[Page S4062]]

       (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) incorporates additional factors (other than the factors 
     described in paragraph (3)(C)) 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--
       (i) 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);
       (ii) of the area served by a rural concentrated employment 
     program grant recipient of demonstrated effectiveness that 
     served as a service delivery area under the Job Training 
     Partnership Act, if the grant recipient has submitted the 
     request and if the designation meets the State plan 
     requirements described in section 304(b)(5); and
       (iii) of an area that served as a service delivery area 
     under section 101(a)(4)(A)(ii) of the Job Training 
     Partnership Act (as in effect on the day before the date of 
     enactment of this Act) in a State that has a population of 
     1,100,000 or less and a population density greater than 900 
     persons per square mile, 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.
       (b) Small States.--The Governor of any State determined to 
     be eligible to receive a minimum allotment under paragraph 
     (1) or (3) of section 302(b), in accordance with section 
     302(b)(1)(B)(iv)(II), for the first year covered by the State 
     plan, or of a State that is a single State service delivery 
     area under the Job Training Partnership Act (29 U.S.C. 1501 
     et seq.) as of July 1, 1998, 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;
       (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)(7).
       (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.
       (C) Concentrated employment programs.--In the case of a 
     local area designated in accordance with section 
     307(a)(2)(A)(ii), the governing body of the concentrated 
     employment program involved shall act in consultation with 
     the chief elected official in the local area to appoint 
     members of the local partnership, in accordance with the 
     State criteria established under subsection (c), and to carry 
     out any other responsibility relating to workforce investment 
     activities assigned to such official under this Act.
       (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

[[Page S4063]]

     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 any of paragraphs (1), (2), (4), (5), 
     and (6) 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) promoting the participation of private sector employers 
     in the statewide workforce investment system, and ensuring 
     the effective provision through the system of connecting, 
     brokering, and coaching activities, through intermediaries 
     such as the entities operating the one-stop customer service 
     center in the local area or through other organizations, to 
     assist such employers in meeting hiring needs;
       (4) conducting oversight with respect to the one-stop 
     customer service system;
       (5) modifying the list of eligible providers of training 
     services pursuant to subsections (b)(3)(B) and (c)(2)(B) of 
     section 312;
       (6) setting local performance measures pursuant to section 
     312(b)(2)(D)(ii);
       (7) analyzing and identifying--
       (A) current and projected local employment opportunities; 
     and
       (B) the skills necessary to obtain such local employment 
     opportunities;
       (8) coordinating the workforce investment activities 
     carried out in the local area with economic development 
     strategies and developing other employer linkages with such 
     activities; and
       (9) 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 and contracts 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 sufficient 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;
       (vi) representatives of businesses in the local area that 
     employ youth; and
       (vii) 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) subject to the approval of the local partnership, 
     awarding grants and contracts 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
       (D) other duties determined to be appropriate by the 
     chairperson of the local partnership.
       (j) Alternative Entity.--
       (1) In general.--For purposes of complying with subsections 
     (a), (c), and (d), and paragraphs (1) and (2) of subsection 
     (i), a State may use any local entity (including a local 
     council, regional workforce development board, or similar 
     entity) that--
       (A) is established to serve the local area (or the service 
     delivery area that most closely corresponds to the local 
     area);
       (B) is in existence on December 31, 1997;
       (C) (i) is established pursuant to section 102 of the Job 
     Training Partnership Act (29 U.S.C. 1512), as in effect on 
     December 31, 1997; or
       (ii) is substantially similar to the local and youth 
     partnerships described in subsections (a), (c), and (d), and 
     paragraphs (1) and (2) of subsection (i); and
       (D) includes--
       (i) representatives of business in the local area; and
       (ii)(I) representatives of labor organizations in the local 
     area, for a local area in which such representatives reside; 
     or
       (II) for a local area in which such representatives do not 
     reside, other representatives of employees in the local area.
       (2) References.--References in this Act to a local 
     partnership or a youth partnership shall be considered to 
     include such an entity.

     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)(9);
       (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 and contracts 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;
       (11) a description of the process used by the local 
     partnership, consistent with subsection (c), to provide an 
     opportunity for public comment, including comment by 
     representatives of labor organizations and businesses, and 
     input into the development of the local plan, prior to 
     submission of the plan; and
       (12) such other information as the Governor may require.

[[Page S4064]]

       (c) Process.--Prior to the date on which the local 
     partnership submits a local plan under this section, the 
     local partnership shall--
       (1) make available copies of a proposed local plan to the 
     public;
       (2) allow members of the local partnership and members of 
     the public, including representatives of labor organizations 
     and businesses, to submit comments on the proposed local plan 
     to the local partnership, not later than the end of the 30-
     day period beginning on the date on which the proposed local 
     plan is made available; and
       (3) include with the local plan submitted to the Governor 
     under this section any such comments that represent 
     disagreement with the plan.
       (d) 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) deficiencies in activities carried out under this 
     subtitle have been identified, through audits conducted under 
     section 374 or otherwise, 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.
       (e) 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), consistent with the requirements 
     of the Federal law in which the program, services, or 
     activities are authorized.
       (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) training activities carried out by the Department of 
     Housing and Urban Development; and
       (xi) programs authorized under State unemployment 
     compensation laws (in accordance with applicable Federal 
     law).
       (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 1977 (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 public 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 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

[[Page S4065]]

     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 the first day of the employment; and
       (II) 12 months after the first day of the employment;

       (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; and
       (B) annually meet the performance criteria described in 
     subsection (b)(2)(A) for the program, as demonstrated 
     utilizing quarterly records described in section 321.
       (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 a provider described in this 
     section or a program of training services carried out by such 
     a provider fails to meet the required performance criteria 
     described in subsection (c)(1)(B) or subsection (e)(2), as 
     appropriate, 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 a 
     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 
     (c).
       (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, determine whether the 
     providers meet such performance criteria 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 and 
     contracts 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;

[[Page S4066]]

       (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 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).
       (d) Prohibition.--No funds described in subsection (a) 
     shall be used to develop or implement education curricula for 
     school systems in the State.

     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 first day of the employment, 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

[[Page S4067]]

     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).
       (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 adults;
       (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 after 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 8th 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, to youth seeking assistance in achieving 
     academic and employment success, effective and comprehensive 
     activities, which shall include a variety of options for 
     improving educational and skill competencies and provide 
     effective connections to employers;
       (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 and job 
     shadowing;
       (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;
       (C) preparation for unsubsidized employment opportunities, 
     in appropriate cases; and
       (D) effective connections to intermediaries with strong 
     links to--
       (i) the job market; and
       (ii) local and regional employers; 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.--
       (1) In general.--At a minimum, 50 percent of the funds 
     described in subsection (b) shall be used to provide youth 
     activities to out-of-school youth.
       (2) Exception.--A State that receives a minimum allotment 
     under paragraph (1) or (3) of section 302(b) in accordance 
     with section 302(b)(1)(B)(iv)(II) may reduce the percentage 
     described in paragraph (1) for a local area in the State, 
     if--
       (A) after an analysis of the youth population in the local 
     area, the State determines that the local area will be unable 
     to meet the percentage described in paragraph (1) due to a 
     low number of out-of-school youth; and
       (B)(i) the State submits to the Secretary, for the local 
     area, a request including a proposed reduced percentage for 
     purposes of paragraph (1), and the summary of the youth 
     population analysis; and
       (ii) the request is approved by the Secretary.
       (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 establish 
     comprehensive performance measures to assess the 
     effectiveness of States and local areas in achieving 
     continuous improvement of workforce investment activities 
     funded under this subtitle, in order to maximize the return 
     on investment of Federal funds in State and local workforce 
     development 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 level 
     of performance referred to in paragraph (4).
       (2) Core indicators of performance.--
       (A) In general.--The State performance measures shall 
     include indicators of performance for workforce investment 
     activities provided under this subtitle (except for self-
     service and informational activities) for each of the 
     population groups described in subparagraph (B). Such 
     indicators, at a minimum, shall consist of--
       (i) entry into unsubsidized employment;
       (ii) retention in unsubsidized employment 6 months after 
     entry into the employment;

[[Page S4068]]

       (iii) earnings received in unsubsidized employment 6 months 
     after entry into the employment; and
       (iv) attainment of a recognized credential relating to 
     achievement of educational skills (including basic skills) or 
     occupational skills, by participants who entered unsubsidized 
     employment, or by participants who are in-school youth, 
     taking into account attainment of more than 1 such 
     credential.
       (B) Population groups.--The indicators described in 
     subparagraph (A) shall be applicable to each of the following 
     populations:
       (i) Dislocated workers.
       (ii) Economically disadvantaged adults.
       (iii) Youth.
       (3) Additional indicators of performance.--
       (A) Customer satisfaction indicators.--A State shall 
     identify in the State plan an indicator of performance 
     concerning customer satisfaction of employers and workers 
     with results achieved from the workforce investment 
     activities in which the employers and workers participated 
     under this subtitle. The customer satisfaction may be 
     measured through surveys conducted after the conclusion of 
     participation in the workforce investment activities.
       (B) Additional indicators.--A State may identify in the 
     State plan additional indicators of performance relating to 
     State goals for workforce investment, including goals for the 
     economic success of the citizens of the State or other State 
     goals related to the objectives of this subtitle.
       (4) State levels of performance.--
       (A) In general.--The Secretary and each Governor shall 
     reach agreement on the levels of performance 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 of the indicators of performance 
     described in paragraphs (2) and (3). Such agreement shall 
     take into account--
       (i) how the levels compare with the levels established by 
     other States, taking into account factors including 
     differences in economic conditions, the characteristics of 
     participants when the participants entered the program, and 
     the services to be provided;
       (ii) the extent to which such levels promote continuous 
     improvement in performance on the performance measures by 
     such State and ensure maximum return on the investment of 
     Federal funds; and
       (iii) the extent to which the levels will assist the State 
     in attaining the workforce investment goals of the State.
       (B) Adjustments.--If unanticipated circumstances arise in a 
     State resulting in a significant change in the factors 
     described in subparagraph (A)(i), the Governor may request 
     that the levels of performance agreed to under subparagraph 
     (A) be adjusted. The Secretary, after collaboration with the 
     representatives described in subsection (i), shall issue 
     objective criteria and methods for making such adjustments.
       (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, 
     based on the State performance measures identified in the 
     State plan. Each local performance measure shall consist of 
     an indicator of performance referred to in paragraph (2) or 
     (3) of subsection (b) and a level of performance referred to 
     in paragraph (2).
       (2) Agreement.--
       (A) In general.--In reaching the agreement, the Governor, 
     local partnership, and chief elected official shall establish 
     an expected level of performance for each of the indicators 
     of performance.
       (B) Considerations.--Such agreement shall take into account 
     at the local level the matters considered at the State level 
     under clauses (i), (ii), and (iii) of subsection (b)(4)(A).
       (C) Adjustments.--If unanticipated circumstances arise in a 
     local area resulting in a significant change in the factors 
     referred to in subsection (b)(4)(A)(i), the local partnership 
     and chief elected official may request that the levels of 
     performance agreed to under paragraph (1) be adjusted, using 
     criteria and methods referred to in subsection (b)(4)(B).
       (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 also shall 
     include information regarding the progress of local areas in 
     achieving local performance measures. The report also shall 
     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 on 
     participants in workforce investment activities relating to--
       (A) entry by participants who have completed training 
     services provided under section 315(c)(3) into unsubsidized 
     employment related to the training received;
       (B) wages at entry into employment for participants in 
     workforce investment activities who entered unsubsidized 
     employment, including the rate of wage replacement for such 
     participants who are dislocated workers;
       (C) cost of workforce investment activities relative to the 
     effect of the activities on the performance of participants;
       (D) retention and earnings received in unsubsidized 
     employment 12 months after entry into the employment;
       (E) performance with respect to the indicators of 
     performance specified in subsection (b)(2) of participants in 
     workforce investment activities who received the training 
     services compared with the performance of participants in 
     workforce investment activities who received only services 
     other than the training services (excluding participants who 
     received only self-service and informational activities); and
       (F) performance with respect to the indicators of 
     performance specified in subsection (b)(2) of welfare 
     recipients, out-of-school youth, veterans, and individuals 
     with disabilities.
       (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. The Secretary 
     shall disseminate State-by-State comparisons of the 
     information after adjusting the information to take account 
     of differences in specific circumstances, including economic 
     circumstances, of the States and after consulting with each 
     Governor as to the accuracy of the information after 
     adjustment.
       (e) Evaluation of State Programs.--
       (1) In general.--Using funds made available under this 
     subtitle, the State, in coordination with local partnerships 
     in the State, shall conduct ongoing evaluation studies of 
     workforce investment activities carried out in the State 
     under this subtitle in order to promote, establish, 
     implement, and utilize methods for continuously improving the 
     activities in order to achieve high-level performance within, 
     and high-level outcomes from, the statewide workforce 
     investment system. To the maximum extent practicable, the 
     State shall coordinate the evaluations with the evaluations 
     provided for by the Secretary under section 368.
       (2) Design.--The evaluation studies conducted under this 
     subsection shall be designed in conjunction with the 
     statewide partnership and local partnerships and shall 
     include analysis of customer feedback and outcome and process 
     measures in the statewide workforce investment system.
       (3) Results.--The State shall periodically prepare and 
     submit to the statewide partnership and local partnerships in 
     the State reports containing the results of evaluation 
     studies conducted under this subsection, to promote the 
     efficiency and effectiveness of the statewide workforce 
     investment system in improving employability for jobseekers 
     and competitiveness for employers.
       (f) Fiscal and Management Accountability Information 
     Systems.--
       (1) In general.--Using funds made available under this 
     subtitle, the Governor, in coordination with local 
     partnerships and chief elected officials in the State, shall 
     establish and operate a fiscal and management accountability 
     information system based on guidelines established by the 
     Secretary after consultation with the Governors, local 
     elected officials, and officers of agencies that administer 
     workforce investment activities in local areas. Such 
     guidelines shall promote efficient collection and use of 
     fiscal and management information for reporting and 
     monitoring the use of funds made available under this 
     subtitle and for preparing the annual report described in 
     subsection (d).
       (2) Wage records.--In measuring the progress of the State 
     on State and local performance measures, a State shall 
     utilize quarterly wage records. The Secretary shall make 
     arrangements to ensure that the wage records of any State are 
     available to any other State to the extent that such wage 
     records are required by the State in carrying out the State 
     plan of the State or completing the annual report described 
     in subsection (d).
       (3) 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) Technical assistance or reduction of allotments.--The 
     Secretary shall--
       (A) if a State failed to meet \1/3\ or more of the State 
     performance measures for any year, provide technical 
     assistance in accordance with section 366(b) to the State to 
     improve the level of performance of the State; and
       (B) if a State failed to meet \1/2\ or more of the State 
     performance measures for each of 2 consecutive years, or 
     failed to meet the State performance measures and the extent 
     of the failure with respect to \1/3\ of such measures was 
     significant for each of 2 consecutive years--
       (i) determine whether the failure involved is attributable 
     to--

       (I) adult employment and training activities;
       (II) dislocated worker employment and training activities; 
     or
       (III) youth activities; and

       (ii) reduce, by not more than 5 percent, the allotment of 
     the State under section 302 for 1 year for the category of 
     activities described in clause (i) to which the failure is 
     attributable.
       (2) Criteria.--The Secretary, after collaboration with the 
     representatives described in subsection (i), shall issue 
     objective criteria for determining cases in which the extent 
     of failure is significant for purposes of paragraph (1)(B).

[[Page S4069]]

       (3) Funds resulting from reduced allotments.--The Secretary 
     shall use an amount retained, as a result of a reduction in 
     an allotment to a State made under paragraph (1)(B), to 
     provide technical assistance in accordance with section 366 
     to such State.
       (h) Incentive Grants.--The Secretary shall make incentive 
     grants under this title in accordance with section 365 to 
     States that exceed the levels of performance for performance 
     measures established under this Act. In awarding incentive 
     grants under this title, the Secretary shall give special 
     consideration to those States achieving the highest levels of 
     performance on indicators of performance related to 
     employment retention and earnings.
       (i) Other Measures and Terminology.--
       (1) Responsibilities.--The Secretary, after collaboration 
     with representatives of appropriate Federal agencies, and 
     representatives of States and political subdivisions, 
     business and industry, employees, eligible providers of 
     employment and training activities, educators, and 
     participants, with expertise regarding workforce investment 
     policies and workforce investment activities, shall issue--
       (A) definitions for information required to be reported 
     under subsection (d)(2);
       (B) terms for a menu of additional indicators of 
     performance described in subsection (b)(3)(B) to assist 
     States in assessing their progress toward State workforce 
     investment goals;
       (C) objective criteria and methods described in subsection 
     (b)(4)(B) for making adjustments to levels of performance; 
     and
       (D) objective criteria described in subsection (g)(2) for 
     determining significant extent of failure on performance 
     measures.
       (2) Definitions for core indicators.--The Secretary and the 
     representatives described in paragraph (1) shall participate 
     in the activities described in section 502 concerning the 
     issuance of definitions for indicators of performance 
     described in subsection (b)(2).
       (3) Assistance.--The Secretary shall make the services of 
     objective staff available to the representatives to assist 
     the representatives in participating in the collaboration 
     described in paragraph (1) and in the activities described in 
     section 502.

     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.
       (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

[[Page S4070]]

     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 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

[[Page S4071]]

     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 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.
       (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 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 provisions 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.--

[[Page S4072]]

     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 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 the first day of the employment; and
       (ii) 12 months after the first day of the employment;
       (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

[[Page S4073]]

     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.--
       (1) In general.--The Secretary shall, on a competitive 
     basis, 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).
       (2) Exception.--The competition for grants, contracts, or 
     cooperative agreements conducted under paragraph (1) shall be 
     conducted every 2 years, except that if a recipient of such a 
     grant, contract, or agreement has performed satisfactorily, 
     the Secretary may waive the requirements for such competition 
     on receipt from the recipient of a satisfactory 2-year 
     program plan for the succeeding 2-year period of the grant, 
     contract, or agreement.
       (d) Authorized Activities.--
       (1) In general.--Funds made available under subsection (c) 
     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 subsection (c) 
     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 program 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 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 subsection (c) 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

[[Page S4074]]

     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)(4)(B).
       (4) Advisory council.--
       (A) In general.--Using funds made available to carry out 
     this section, 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 subsection (c) 
     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 veterans with service-
     connected disabilities, veterans who have significant 
     barriers to employment, veterans who served on active duty in 
     the armed forces during a war or in a campaign or expedition 
     for which a campaign badge has been authorized, 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 
     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

[[Page S4075]]

     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 and eligible entities described in 
     subsection (d) 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.--In making grants under this section, the 
     Secretary shall ensure that grants are distributed equitably 
     among local partnerships and entities serving urban areas and 
     local partnerships and entities serving rural areas, taking 
     into consideration the poverty rate in such urban and rural 
     areas, as described in subsection (c)(3)(B).
       (b) Use of Funds.--
       (1) In general.--A local partnership or entity 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 
     or entity 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 shall serve a 
     community that--
       (1) has been designated as an empowerment zone or 
     enterprise community under section 1391 of the Internal 
     Revenue Code of 1986;
       (2)(A) is a State without a zone or community described in 
     paragraph (1); and
       (B) has been designated as a high poverty area by the 
     Governor of the State; or
       (3) is 1 of 2 areas in a State that--
       (A) have been designated by the Governor as areas for which 
     a local partnership may apply for a grant under this section; 
     and
       (B) meet the poverty rate criteria set forth in subsections 
     (a)(4), (b), and (d) of section 1392 of the Internal Revenue 
     Code of 1986.
       (d) Eligible Entities.--To be eligible to receive a grant 
     under this section, an entity (other than a local 
     partnership) shall--
       (1) be a recipient of financial assistance under section 
     361; and
       (2) serve a community that--
       (A) meets the poverty rate criteria set forth in 
     subsections (a)(4), (b), and (d) of section 1392 of the 
     Internal Revenue Code of 1986; and
       (B) is located on an Indian reservation.
       (e) Application.--To be eligible to receive a grant under 
     this section, a local partnership or entity 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 or entity will provide under this section to 
     youth in the community described in subsection (c);
       (2) a description of the performance measures negotiated 
     under subsection (f), and the manner in which the local 
     partnerships or entities 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.
       (f) Performance Measures.--
       (1) In general.--The Secretary shall negotiate and reach 
     agreement with the local partnership or entity on performance 
     measures for the indicators of performance referred to in 
     paragraphs (2) and (3) of section 321(b) that will be used to 
     evaluate the performance of the local partnership or entity 
     in carrying out the activities described in subsection (b). 
     Each local performance measure shall consist of such a 
     indicator of performance, and a performance level referred to 
     in paragraph (2).
       (2) Performance levels.--The Secretary shall negotiate and 
     reach agreement with the local partnership or entity 
     regarding the levels of performance expected to be achieved 
     by the local partnership or entity on the indicators of 
     performance.
       (g) Role Model Academy Project.--
       (1) In general.--Using the funds made available pursuant to 
     section 302(b)(3)(A)(iv) for fiscal year 1999, the Secretary 
     shall provide assistance to an entity to carry out a project 
     establishing a role model academy for out-of-school youth.
       (2) Residential center.--The entity shall use the 
     assistance to establish an academy that consists of a 
     residential center located on the site of a military 
     installation closed or realigned pursuant to a law providing 
     for closures and realignments of such installations.
       (3) Services.--The academy established pursuant to this 
     subsection shall provide services that--
       (A) utilize a military style model that emphasizes 
     leadership skills and discipline, or another model of 
     demonstrated effectiveness; and
       (B) include vocational training, secondary school course 
     work leading to a secondary school diploma or recognized 
     equivalent, and the use of mentors who serve as role models 
     and who provide academic training and career counseling to 
     the youth.

     SEC. 365. INCENTIVE GRANTS.

       (a) In General.--Effective July 1, 2000, the Secretary may 
     make grants to States that exceed the expected levels of 
     performance for performance measures established under this 
     Act.
       (b) 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 vocational education, adult 
     education and literacy, or workforce investment activity 
     programs, as determined by the State.
       (c) Incentive Grant Regulations.--The Secretary of Labor 
     and the Secretary of Education shall jointly promulgate 1 set 
     of regulations for incentive grants under sections 116 and 
     243 and this section.

     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 who fail 
     to meet \1/3\ or more of the State performance measures for a 
     program year; and
       (ii) may provide technical assistance to other States, 
     local areas, and recipients of financial assistance under any 
     of sections 361 through 364 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 recipient of financial assistance under 
     any of sections 361 through 364, 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

[[Page S4076]]

     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 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) Formula improvement study and report.--
       (A) Study.--The Secretary shall conduct a 2-year study 
     concerning improvements in the formulas described in section 
     302(b)(1)(B) and paragraphs (3)(A) and (4)(A) of section 
     306(b) (regarding distributing funds under subtitle A to 
     States and local areas for adult employment and training 
     activities). In conducting the study, the Secretary shall 
     examine means of improving the formulas by--
       (i) developing formulas based on statistically reliable 
     data;
       (ii) developing formulas that are consistent with the goals 
     and objectives of this title; and
       (iii) developing formulas based on organizational and 
     financial stability of statewide partnerships and local 
     partnerships.
       (B) Report.--The Secretary shall prepare and submit to 
     Congress a report containing the results of the study, 
     including recommendations for improved formulas.
       (3) 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 10 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 Older Americans Act of 1965 (42 U.S.C. 3001 et 
     seq.);
       (3) chapter 2 of title II of the Trade Act of 1974 (19 
     U.S.C. 2271 et seq.); and
       (4) State unemployment compensation laws (in accordance 
     with applicable Federal law).
       (c) Techniques.--Evaluations conducted under this section 
     shall utilize appropriate methodology and research designs, 
     including the use of control groups chosen by scientific 
     random assignment methodologies. The Secretary shall conduct 
     as least 1 multisite control group evaluation under this 
     section by the end of fiscal year 2004.
       (d) Reports.--The entity carrying out an evaluation 
     described in subsection (a) or (b) 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.
       (f) Coordination.--The Secretary shall ensure the 
     coordination of evaluations carried out by States pursuant to 
     section 321(e) with the evaluations carried out under this 
     section.

     SEC. 369. NATIONAL EMERGENCY GRANTS.

       (a) In General.--The Secretary is authorized to award 
     national emergency grants in a timely manner--

[[Page S4077]]

       (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 employment and 
     training activities for dislocated workers, including 
     activities carried out under the national emergency grants.
       (c) Employment and Training Assistance Requirements.--
       (1) Grant recipient eligibility.--
       (A) 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.
       (B) Eligible entity.--In this paragraph, 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.
       (2) Participant eligibility.--
       (A) In general.--In order to be eligible to receive 
     employment and training assistance under a national emergency 
     grant awarded pursuant to subsection (a)(1), an individual 
     shall be--
       (i) a dislocated worker;
       (ii) a civilian employee of the Department of Defense 
     employed at a military installation that is being closed, or 
     that will undergo realignment, within the next 24 months 
     after the date of the determination of eligibility;
       (iii) an individual who is employed in a nonmanagerial 
     position with a Department of Defense contractor, who is 
     determined by the Secretary of Defense to be at-risk of 
     termination from employment as a result of reductions in 
     defense expenditures, and whose employer is converting 
     operations from defense to nondefense applications in order 
     to prevent worker layoffs; or
       (iv) a member of the Armed Forces who--

       (I) was on active duty or full-time National Guard duty;
       (II)(aa) is involuntarily separated (as defined in section 
     1141 of title 10, United States Code) from active duty or 
     full-time National Guard duty; or
       (bb) is separated from active duty or full-time National 
     Guard duty pursuant to a special separation benefits program 
     under section 1174a of title 10, United States Code, or the 
     voluntary separation incentive program under section 1175 of 
     that title;
       (III) is not entitled to retired or retained pay incident 
     to the separation described in subclause (II); and
       (IV) applies for such employment and training assistance 
     before the end of the 180-day period beginning on the date of 
     that separation.

       (B) Retraining assistance.--The individuals described in 
     subparagraph (A)(iii) shall be eligible for retraining 
     assistance to upgrade skills by obtaining marketable skills 
     needed to support the conversion described in subparagraph 
     (A)(iii).
       (C) Additional requirements.--The Secretary shall establish 
     and publish additional requirements related to eligibility 
     for employment and training assistance under the national 
     emergency grants to ensure effective use of the funds 
     available for this purpose.
       (D) Definitions.--In this paragraph, the terms `military 
     institution' and `realignment' have the meanings given the 
     terms in section 2910 of the Defense Base Closure and 
     Realignment Act of 1990 (Public Law 101-510; 10 U.S.C. 2687 
     note).
       (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 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)(i) for fiscal year 1999, reserve no funds for carrying 
     out section 365; and
       (ii) for each of fiscal years 2000 through 2004, reserve 
     36.8 percent for carrying out section 365;
       (B)(i) for fiscal year 1999, reserve 61.8 percent for 
     carrying out section 366 (other than section 366(b)(2)); and
       (ii) for each of fiscal years 2000 through 2004, 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

[[Page S4078]]

       (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.--Interested members of 
     the public, including representatives of labor organizations 
     and businesses, shall be provided an opportunity to submit 
     comments to the Secretary with respect to programs and 
     activities proposed to be funded under subtitle A.
       (6) No impact on union organizing.--Each recipient of funds 
     under this title shall provide to the Secretary assurances 
     that none of such funds will be used to assist, promote, or 
     deter union organizing.
       (c) Grievance Procedure.--
       (1) In general.--Each State receiving an allotment under 
     section 302 and each recipient of financial assistance 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 Based on Latest Available Data.--All 
     allotments under section 302 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, 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 
     or 306 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 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) Cost principles.--
       (A) In general.--Each State (including the Governor of the 
     State), local area (including the chief elected official for 
     the area), and provider receiving funds under this title 
     shall comply with the applicable uniform cost principles 
     included in the appropriate circulars of the Office of 
     Management and Budget for the type of entity receiving the 
     funds.
       (B) Exception.--The funds made available to a State for 
     administration of statewide workforce investment activities 
     in accordance with section 314(c)(2) shall be allocable to 
     the overall administration of workforce investment 
     activities, but need not be specifically allocable to--
       (i) the administration of adult employment and training 
     activities;
       (ii) the administration of dislocated worker employment and 
     training activities; or
       (iii) the administration of youth activities.
       (3) Uniform administrative requirements.--
       (A) In general.--Each State (including the Governor of the 
     State), local area (including the chief elected official for 
     the area), and provider receiving funds under this title 
     shall comply with the appropriate uniform administrative 
     requirements for grants and agreements applicable for the 
     type of entity receiving the funds, as promulgated in 
     circulars or rules of the Office of Management and Budget.
       (B) Additional requirement.--Procurement transactions under 
     this title between local partnerships and units of State or 
     local governments shall be conducted only on a cost-
     reimbursable basis.
       (4) Monitoring.--Each Governor of a State shall conduct 
     onsite monitoring of each local area within the State to 
     ensure compliance with the uniform administrative 
     requirements referred to in paragraph (3).
       (5) Action by governor.--If the Governor determines that a 
     local area is not in compliance with the uniform 
     administrative requirements referred to in 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.

[[Page S4079]]

       (6) Certification.--The Governor shall, every 3 years, 
     certify to the Secretary that--
       (A) the State has implemented the uniform administrative 
     requirements referred to in paragraph (3);
       (B) the State has monitored local areas to ensure 
     compliance with the uniform administrative requirements 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 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

[[Page S4080]]

     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 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.), 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.), or on the basis of religion under any applicable 
     provision of Federal law, programs and activities funded or 
     otherwise financially assisted 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.--Except as otherwise permitted 
     under title IX of the Education Amendments of 1972, 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.

[[Page S4081]]

       (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 (except with respect to the maintenance 
     of a facility that is not primarily or inherently devoted to 
     sectarian instruction or religious worship, in a case in 
     which the organization operating the facility is part of a 
     program or activity providing services to participants).
       (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, section 504 of the Rehabilitation 
     Act of 1973 (29 U.S.C. 794), 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 a program or activity receiving Federal 
     financial assistance and 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.--
       (A) Program year.--Except as provided in subparagraph (B), 
     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.
       (B) Youth activities.--The Secretary may make available for 
     obligation, beginning April 1 of any fiscal year, funds 
     appropriated for such fiscal year to carry out youth 
     activities under subtitle A.
       (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 
     obligated for any program year for a program or activity 
     carried out under section 367 or 368 shall remain available 
     until expended. 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 and Special Rules.--
       (1) Existing waivers.--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) Special rule regarding designated areas.--A State that 
     enacts, not later than December 31, 1997, a State law 
     providing for the designation of service delivery areas for 
     the delivery of workforce investment activities, may use such 
     areas as local areas under this title, notwithstanding 
     section 307(a).
       (3) Special rule regarding sanctions.--A State that enacts, 
     not later than December 31, 1997, a State law providing for 
     the sanctioning of such service delivery areas for failure to 
     meet performance measures for workforce investment 
     activities, may use the State law to sanction local areas for 
     failure to meet State performance measures under this title.
       (4) General waivers of statutory or regulatory 
     requirements.--
       (A) 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 subparagraph (B)--
       (i) 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

[[Page S4082]]

     and protection of workers, grievance procedures and judicial 
     review, nondiscrimination, allocation of funds to local 
     areas, eligibility of providers or participants, the 
     establishment and functions of local areas and local 
     partnerships, and procedures for review and approval of 
     plans); and
       (ii) 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 and 
     veterans, and requirements relating to universal access to 
     basic labor exchange services without cost to jobseekers).
       (B) Requests.--A Governor requesting a waiver under 
     subparagraph (A) shall submit a plan to the Secretary to 
     improve the statewide workforce investment system that--
       (i) 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;
       (ii) describes the actions that the State or local area, as 
     appropriate, has undertaken to remove State or local 
     statutory or regulatory barriers;
       (iii) describes the goals of the waiver and the expected 
     programmatic outcomes if the request is granted;
       (iv) describes the individuals impacted by the waiver; and
       (v) 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(c)(2).
       (C) Conditions.--Not later than 90 days after the date of 
     the original submission of a request for a waiver under 
     subparagraph (A), the Secretary shall provide a waiver under 
     this paragraph if and only to the extent that--
       (i) 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 subparagraph (B); and
       (ii) 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.

     SEC. 381. WORKFORCE FLEXIBILITY PARTNERSHIP PLANS.

       (a) Plans.--A State may submit to the Secretary, and the 
     Secretary may approve, a workforce flexibility partnership 
     plan under which the State is authorized to waive, in 
     accordance with the plan--
       (1) any of the statutory or regulatory requirements 
     applicable under this title to local areas, pursuant to 
     applications for such waivers from the local areas, except 
     for requirements relating to the basic purposes of this 
     title, wage and labor standards, grievance procedures and 
     judicial review, nondiscrimination, eligibility of 
     participants, allocation of funds to local areas, 
     establishment and functions of local areas and local 
     partnerships, review and approval of local plans, and worker 
     rights, participation, and protection;
       (2) any of the statutory or regulatory requirements 
     applicable under sections 8 through 10 of the Wagner-Peyser 
     Act (29 U.S.C. 49g through 49i) to the State, except for 
     requirements relating to the provision of services to 
     unemployment insurance claimants and veterans, and to 
     universal access to basic labor exchange services without 
     cost to jobseekers; and
       (3) any of the statutory or regulatory requirements 
     applicable under the Older Americans Act of 1965 (42 U.S.C. 
     3001 et seq.) to State agencies on aging with respect to 
     activities carried out using funds allotted under section 
     506(a)(3) of such Act (42 U.S.C. 3056d(a)(3)), except for 
     requirements relating to the basic purposes of such Act, wage 
     and labor standards, eligibility of participants in the 
     activities, and standards for agreements.
       (b) Content of Plans.--A workforce flexibility partnership 
     plan implemented by a State under subsection (a) shall 
     include descriptions of--
       (1)(A) the process by which local areas in the State may 
     submit and obtain approval by the State of applications for 
     waivers of requirements applicable under this title; and
       (B) the requirements described in subparagraph (A) that are 
     likely to be waived by the State under the plan;
       (2) the requirements applicable under sections 8 through 10 
     of the Wagner-Peyser Act that are proposed to be waived, if 
     any;
       (3) the requirements applicable under the Older Americans 
     Act of 1965 that are proposed to be waived, if any;
       (4) the outcomes to be achieved by the waivers described in 
     paragraphs (1) through (3); and
       (5) other measures to be taken to ensure appropriate 
     accountability for Federal funds in connection with the 
     waivers.
       (c) Periods.--The Secretary may approve a workforce 
     flexibility partnership plan for a period of not more than 5 
     years.
       (d) Opportunity for Public Comments.--Prior to submitting a 
     workforce flexibility partnership plan to the Secretary for 
     approval, the State shall provide to all interested parties 
     and to the general public adequate notice and a reasonable 
     opportunity for comment on the waiver requests proposed to be 
     implemented pursuant to such plan.

     SEC. 382. USE OF CERTAIN REAL PROPERTY.

       (a) In General.--Notwithstanding any other provision of 
     law, pursuant to a plan submitted by a Governor of a State 
     and approved by the Secretary, the Governor may authorize a 
     public agency to use, for any of the functions of a one-stop 
     customer service system within the State, real property in 
     which, as of the effective date of this Act, the Federal 
     Government has acquired equity through use of funds provided 
     under title III of the Social Security Act (42 U.S.C. 501 et 
     seq.), section 903(c) of such Act (42 U.S.C. 1103(c)), or the 
     Wagner-Peyser Act (29 U.S.C. 49 et seq.).
       (b) Use of Funds.--Subsequent to the commencement of the 
     use of the property described in subsection (a) for the 
     functions of a one-stop customer service system, funds 
     provided under the provisions of law described in subsection 
     (a) may only be used to acquire further equity in such 
     property, or to pay operating and maintenance expenses 
     relating to such property in proportion to the extent of the 
     use of such property attributable to the activities 
     authorized under such provisions of law.

     SEC. 383. CONTINUATION OF STATE ACTIVITIES AND POLICIES.

       (a) In General.--Notwithstanding any other provision of 
     this title, the Secretary may not deny approval of a State 
     plan for a covered State, or an application of a covered 
     State for financial assistance, under this title or find a 
     covered State (including a statewide partnership or 
     Governor), or a local area (including a local partnership or 
     chief elected official) in a covered State, in violation of a 
     provision of this title, on the basis that--
       (1)(A) the State proposes to allocate or disburse, 
     allocates, or disburses, within the State, funds made 
     available to the State under section 302 in accordance with 
     the allocation formula for the type of activities involved, 
     or in accordance with a disbursal procedure or process, used 
     by the State under prior consistent State law; or
       (B) a local partnership in the State proposes to disburse, 
     or disburses, within the local area, funds made available to 
     a State under section 302 in accordance with a disbursal 
     procedure or process used by a private industry council under 
     prior consistent State law;
       (2) the State proposes to carry out or carries out a State 
     procedure through which local areas use, as fiscal agents for 
     funds made available to the State under section 302 and 
     allocated within the State, fiscal agents selected in 
     accordance with a process established under prior consistent 
     State law;
       (3) the State proposes to carry out or carries out a State 
     procedure through which the local partnerships in the State 
     (or the local partnerships, the chief elected officials in 
     the State, and the Governor) designate or select the one-stop 
     partners and one-stop customer service center operators of 
     the statewide system in the State under prior consistent 
     State law, in lieu of making the appointment, designation, or 
     certification described in section 311 (regardless of the 
     date the one-stop customer service systems involved have been 
     established);
       (4) the State proposes to carry out or carries out a State 
     procedure through which the persons responsible for selecting 
     eligible providers for purposes of subtitle A are permitted 
     to determine that a provider shall not be selected to provide 
     both intake services under section 315(c)(2) and training 
     services under section 315(c)(3), under prior consistent 
     State law;
       (5) the State proposes to designate or designates a 
     statewide partnership, or proposes to assign or assigns 
     functions and roles of the statewide partnership (including 
     determining the time periods for development and submission 
     of a State plan required under section 304), for purposes of 
     subtitle A in accordance with prior consistent State law; or
       (6) a local partnership in the State proposes to use or 
     carry out, uses, or carries out a local plan (including 
     assigning functions and roles of the local partnership) for 
     purposes of subtitle A in accordance with the authorities and 
     requirements applicable to local plans and private industry 
     councils under prior consistent State law.
       (b) Definition.--In this section:
       (1) Covered state.--The term ``covered State'' means a 
     State that enacted a State law described in paragraph (2).
       (2) Prior consistent state law.--The term ``prior 
     consistent State law'' means a State law, not inconsistent 
     with the Job Training Partnership Act or any other applicable 
     Federal law, that took effect on September 1, 1993, September 
     1, 1995, or September 1, 1997.

[[Page S4083]]

             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 
     subsection (a).

     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 1998'';
       (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 1998;
       ``(3) the term `local workforce investment partnership' 
     means a local workforce investment partnership established 
     under section 308 of the Workforce Investment Partnership Act 
     of 1998;
       ``(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 
     1998;''; 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 of the Wagner-Peyser Act (29 
     U.S.C. 49b) is amended--
       (1) in subsection (a), by striking ``United States 
     Employment Service'' and inserting ``Secretary''; and
       (2) by adding at the end the following:
       ``(c) 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 1998.'';
       (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 1998''; 
     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, consistent with the 
     other requirements of this Act, 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 1998, detailed plans for carrying out the 
     provisions of this Act within such State.'';
       (2) by striking subsections (b) and (c);
       (3) by redesignating subsection (d) as subsection (b);
       (4) by inserting after subsection (b) the following:
       ``(c) The part of the State plan described in subsection 
     (a) shall include the information described in paragraphs (9) 
     and (17) of section 304(b) of the Workforce Investment 
     Partnership Act of 1998.'';
       (5) by redesignating subsection (e) as subsection (d); and
       (6) in subsection (d) (as redesignated in paragraph (5)), 
     by striking ``such plans'' and inserting ``such detailed 
     plans''.

     SEC. 407. REPEAL OF FEDERAL ADVISORY COUNCIL.

       Section 11 of the Wagner-Peyser Act (29 U.S.C. 49j) is 
     amended by striking ``11.'' and all that follows through 
     ``(b) In'' and inserting ``11. In''.

     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 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 1998) 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

[[Page S4084]]

     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)(i) except as provided in clause (ii), 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
       ``(ii) may assign the State occupational information 
     coordinating committee established under section 422 of the 
     Carl D. Perkins Vocational and Applied Technology Education 
     Act (as in effect on the day before the date of enactment of 
     the Workforce Investment Partnership Act of 1998), the 
     responsibility to carry out the functions of the system 
     relating to labor market information that such committee 
     carried out on the day prior to such date of enactment; 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)(2) and 312 of the Workforce Investment Partnership Act 
     of 1998 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 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 
     1998.''.

     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),

[[Page S4085]]

     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 (9) and (17) of section 304(b) of the Workforce 
     Investment Partnership Act of 1998.''.

     SEC. 422. 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 (9) and (17) of section 
     304(b) of the Workforce Investment Partnership Act of 
     1998.''.

     SEC. 423. 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 (9) and (17) of section 
     304(b) of the Workforce Investment Partnership Act of 
     1998.''.
         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 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

[[Page S4086]]

     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 PLAN.

       (a) Definition of Appropriate Secretary.--In this section, 
     the term ``appropriate Secretary'' means the head of the 
     Federal agency who exercises administrative authority over an 
     activity or program described in subsection (b).
       (b) State Unified Plan.--
       (1) In general.--A State may develop and submit to the 
     appropriate Secretaries a State unified plan for 2 or more of 
     the activities or programs set forth in paragraph (2). The 
     State unified plan shall cover 1 or more of the activities 
     set forth in subparagraphs (A) through (C) of paragraph (2) 
     and may cover 1 or more of the activities set forth in 
     subparagraphs (D) through (M) of paragraph (2).
       (2) Activities.--The activities and programs referred to in 
     paragraph (1) are as follows:
       (A) Activities authorized under title I.
       (B) Activities authorized under title II.
       (C) 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) Programs authorized under title I of the Rehabilitation 
     Act of 1973 (29 U.S.C. 720 et seq.), other than section 112 
     of such Act (29 U.S.C. 732).
       (I) Activities authorized under chapter 41 of title 38, 
     United States Code.
       (J) Programs authorized under State unemployment 
     compensation laws (in accordance with applicable Federal 
     law).
       (K) Programs authorized under part A of title IV of the 
     Social Security Act (42 U.S.C. 601 et seq.).
       (L) Programs authorized under title V of the Older 
     Americans Act of 1965 (42 U.S.C. 3056 et seq.).
       (M) Training activities carried out by the Department of 
     Housing and Urban Development.
       (c) Requirements.--
       (1) In general.--The portion of a State unified plan 
     covering an activity or program described in subsection (b) 
     shall be subject to the requirements, if any, applicable to a 
     plan or application for assistance under the Federal statute 
     authorizing the activity or program.
       (2) Additional submission not required.--A State that 
     submits a State unified plan covering an activity or program 
     described in subsection (b) that is approved under subsection 
     (d) shall not be required to submit any other plan or 
     application in order to receive Federal funds to carry out 
     the activity or program.
       (3) Coordination.--A State unified plan shall include--
       (A) a description of the methods used for joint planning 
     and coordination of the programs and activities included in 
     the unified plan; and
       (B) an assurance that the methods included an opportunity 
     for the entities responsible for planning or administering 
     such programs and activities to review and comment on all 
     portions of the unified plan.
       (d) Approval by the Appropriate Secretaries.--
       (1) Jurisdiction.--The appropriate Secretary shall have the 
     authority to approve the portion of the State unified plan 
     relating to the activity or program over which the 
     appropriate Secretary exercises administrative authority. On 
     the approval of the appropriate Secretary, the portion of the 
     plan relating to the activity or program shall be implemented 
     by the State pursuant to the applicable portion of the State 
     unified plan.
       (2) Approval.--
       (A) In general.--A portion of the State unified plan 
     covering an activity or program described in subsection (b) 
     that is submitted to the appropriate Secretary under this 
     section shall be considered to be approved by the appropriate 
     Secretary at the end of the 90-day period beginning on the 
     day the appropriate Secretary receives the portion, unless 
     the appropriate Secretary makes a written determination, 
     during the 90-day period, that the portion is not consistent 
     with the requirements of the Federal statute authorizing the 
     activity or program including the criteria for approval of a 
     plan or application, if any, under such statute or the plan 
     is not consistent with the requirements of subsection (c)(3).
       (B) Special rule.--In subparagraph (A), the term ``criteria 
     for approval of a State plan'', relating to activities 
     carried out under title I, II, or III, includes a requirement 
     for agreement between the State and the appropriate Secretary 
     regarding State performance measures, including levels of 
     performance.

     SEC. 502. DEFINITIONS FOR CORE INDICATORS OF PERFORMANCE.

       (a) In General.--In order to ensure nationwide 
     comparability of performance data, the Secretary of Labor and 
     the Secretary of Education, after consultation with the 
     representatives described in subsection (b), shall issue 
     definitions for performance measures established under titles 
     I and II and definitions for core indicators of performance 
     for performance measures established under title III.
       (b) Representatives.--The representatives referred to in 
     subsection (a) are representatives of States and political 
     subdivisions, business and industry, employees, eligible 
     providers of employment and training activities (as defined 
     in section 2(13)(B)), educators, participants in activities 
     carried out under this Act, State Directors of vocational 
     education, State Directors of adult education, providers of 
     vocational education, providers of adult education, providers 
     of literacy services, individuals with expertise in serving 
     the employment and training needs of disadvantaged youth (as 
     defined in section 302(b)(3)(C)), parents, and other 
     interested parties, with expertise regarding activities 
     authorized under this Act.

     SEC. 503. TRANSITION PROVISIONS.

       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.

     SEC. 504. PRIVACY.

       Nothing in this Act shall be construed to supersede the 
     privacy protections afforded parents and students under 
     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 (section 513 of Public Law 93-380; 88 
     Stat. 571).

     SEC. 505. 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 503, or any related 
     authority to implement this Act at any time prior to July 1, 
     1999.
       (c) Early Implementation and Transition Provisions.--
     Section 503 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.
                                 ______
                                 

                       DeWINE AMENDMENT NO. 2330

  Mr. DeWINE proposed an amendment to the bill, S. 1186, supra; as 
follows:

       At the end, add the following:
            TITLE VI--REHABILITATION ACT AMENDMENTS OF 1998

     SEC. 601. SHORT TITLE.

       This title may be cited as the ``Rehabilitation Act 
     Amendments of 1998''.

[[Page S4087]]

     SEC. 602. TITLE.

       The title of the Rehabilitation Act of 1973 is amended by 
     striking ``to establish special responsibilities'' and all 
     that follows and inserting the following: ``to create linkage 
     between State vocational rehabilitation programs and 
     workforce investment activities carried out under the 
     Workforce Investment Partnership Act of 1998, to establish 
     special responsibilities for the Secretary of Education for 
     coordination of all activities with respect to individuals 
     with disabilities within and across programs administered by 
     the Federal Government, and for other purposes.''.

     SEC. 603. GENERAL PROVISIONS.

       The Rehabilitation Act of 1973 is amended by striking the 
     matter preceding title I and inserting the following:

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

       ``(a) Short Title.--This Act may be cited as the 
     `Rehabilitation Act of 1973'.
       ``(b) Table of Contents.--The table of contents for this 
     Act is as follows:

``Sec. 1. Short title; table of contents.
``Sec. 2. Findings; purpose; policy.
``Sec. 3. Rehabilitation Services Administration.
``Sec. 4. Advance funding.
``Sec. 5. Joint funding.
``Sec. 7. Definitions.
``Sec. 8. Allotment percentage.
``Sec. 10. Nonduplication.
``Sec. 11. Application of other laws.
``Sec. 12. Administration of the Act.
``Sec. 13. Reports.
``Sec. 14. Evaluation.
``Sec. 15. Information clearinghouse.
``Sec. 16. Transfer of funds.
``Sec. 17. State administration.
``Sec. 18. Review of applications.
``Sec. 19. Carryover.
``Sec. 20. Client assistance information.
``Sec. 21. Traditionally underserved populations.

             ``TITLE I--VOCATIONAL REHABILITATION SERVICES

                      ``Part A--General Provisions

``Sec. 100. Declaration of policy; authorization of appropriations.
``Sec. 101. State plans.
``Sec. 102. Eligibility and individualized rehabilitation employment 
              plan.
``Sec. 103. Vocational rehabilitation services.
``Sec. 104. Non-Federal share for establishment of program.
``Sec. 105. State Rehabilitation Council.
``Sec. 106. Evaluation standards and performance indicators.
``Sec. 107. Monitoring and review.
``Sec. 108. Expenditure of certain amounts.
``Sec. 109. Training of employers with respect to Americans with 
              Disabilities Act of 1990.

           ``Part B--Basic Vocational Rehabilitation Services

``Sec. 110. State allotments.
``Sec. 111. Payments to States.
``Sec. 112. Client assistance program.

      ``Part C--American Indian Vocational Rehabilitation Services

``Sec. 121. Vocational rehabilitation services grants.

    ``Part D--Vocational Rehabilitation Services Client Information

``Sec. 131. Data sharing.

                   ``TITLE II--RESEARCH AND TRAINING

``Sec. 200. Declaration of purpose.
``Sec. 201. Authorization of appropriations.
``Sec. 202. National Institute on Disability and Rehabilitation 
              Research.
``Sec. 203. Interagency Committee.
``Sec. 204. Research and other covered activities.
``Sec. 205. Rehabilitation Research Advisory Council.

    ``TITLE III--PROFESSIONAL DEVELOPMENT AND SPECIAL PROJECTS AND 
                             DEMONSTRATIONS

``Sec. 301. Declaration of purpose and competitive basis of grants and 
              contracts.
``Sec. 302. Training.
``Sec. 303. Special demonstration program.
``Sec. 304. Migrant and seasonal farmworkers.
``Sec. 305. Recreational programs.
``Sec. 306. Measuring of project outcomes and performance.

               ``TITLE IV--NATIONAL COUNCIL ON DISABILITY

``Sec. 400. Establishment of National Council on Disability.
``Sec. 401. Duties of National Council.
``Sec. 402. Compensation of National Council members.
``Sec. 403. Staff of National Council.
``Sec. 404. Administrative powers of National Council.
``Sec. 405. Authorization of Appropriations.

                     ``TITLE V--RIGHTS AND ADVOCACY

``Sec. 501. Employment of individuals with disabilities.
``Sec. 502. Architectural and Transportation Barriers Compliance Board.
``Sec. 503. Employment under Federal contracts.
``Sec. 504. Nondiscrimination under Federal grants and programs.
``Sec. 505. Remedies and attorneys' fees.
``Sec. 506. Secretarial responsibilities.
``Sec. 507. Interagency Disability Coordinating Council.
``Sec. 508. Electronic and information technology regulations.
``Sec. 509. Protection and advocacy of individual rights.

 ``TITLE VI--EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS WITH DISABILITIES

``Sec. 601. Short title.

``Part A--Projects in Telecommuting and Self-Employment for Individuals 
                           With Disabilities

``Sec. 611. Findings, policies, and purposes.
``Sec. 612. Projects in telecommuting for individuals with 
              disabilities.
``Sec. 613. Projects in self-employment for individuals with 
              disabilities.
``Sec. 614. Discretionary authority for dual-purpose applications.
``Sec. 615. Authorization of appropriations.

                    ``Part B--Projects With Industry

``Sec. 621. Projects with industry.
``Sec. 622. Authorization of appropriations.

 ``Part C--Supported Employment Services for Individuals With the Most 
                        Significant Disabilities

``Sec. 631. Purpose.
``Sec. 632. Allotments.
``Sec. 633. Availability of services.
``Sec. 634. Eligibility.
``Sec. 635. State plan.
``Sec. 636. Restriction.
``Sec. 637. Savings provision.
``Sec. 638. Authorization of appropriations.

 ``TITLE VII--INDEPENDENT LIVING SERVICES AND CENTERS FOR INDEPENDENT 
                                 LIVING

         ``Chapter 1--Individuals With Significant Disabilities

                      ``Part A--General Provisions

``Sec. 701. Purpose.
``Sec. 702. Definitions.
``Sec. 703. Eligibility for receipt of services.
``Sec. 704. State plan.
``Sec. 705. Statewide Independent Living Council.
``Sec. 706. Responsibilities of the Commissioner.

                 ``Part B--Independent Living Services

``Sec. 711. Allotments.
``Sec. 712. Payments to States from allotments.
``Sec. 713. Authorized uses of funds.
``Sec. 714. Authorization of appropriations.

                ``Part C--Centers for Independent Living

``Sec. 721. Program authorization.
``Sec. 722. Grants to centers for independent living in States in which 
              Federal funding exceeds State funding.
``Sec. 723. Grants to centers for independent living in States in which 
              State funding equals or exceeds Federal funding.
``Sec. 724. Centers operated by State agencies.
``Sec. 725. Standards and assurances for centers for independent 
              living.
``Sec. 726. Definitions.
``Sec. 727. Authorization of appropriations.

``Chapter 2--Independent Living Services for Older Individuals Who Are 
                                 Blind

``Sec. 751. Definition.
``Sec. 752. Program of grants.
``Sec. 753. Authorization of appropriations.


                      ``findings; purpose; policy

       ``Sec. 2. (a) Findings.--Congress finds that--
       ``(1) millions of Americans have one or more physical or 
     mental disabilities and the number of Americans with such 
     disabilities is increasing;
       ``(2) individuals with disabilities constitute one of the 
     most disadvantaged groups in society;
       ``(3) disability is a natural part of the human experience 
     and in no way diminishes the right of individuals to--
       ``(A) live independently;
       ``(B) enjoy self-determination;
       ``(C) make choices;
       ``(D) contribute to society;
       ``(E) pursue meaningful careers; and
       ``(F) enjoy full inclusion and integration in the economic, 
     political, social, cultural, and educational mainstream of 
     American society;
       ``(4) increased employment of individuals with disabilities 
     can be achieved through implementation of statewide 
     activities carried out under the Workforce Investment 
     Partnership Act of 1998 that provide meaningful and effective 
     participation for individuals with disabilities in workforce 
     investment activities and activities carried out under the 
     vocational rehabilitation program established under title I, 
     and through the provision of independent living services, 
     support services, and meaningful opportunities for employment 
     in integrated work settings through the provision of 
     reasonable accommodations;
       ``(5) individuals with disabilities continually encounter 
     various forms of discrimination in such critical areas as 
     employment, housing, public accommodations, education, 
     transportation, communication, recreation, 
     institutionalization, health services, voting, and public 
     services; and
       ``(6) the goals of the Nation properly include the goal of 
     providing individuals with disabilities with the tools 
     necessary to--
       ``(A) make informed choices and decisions; and
       ``(B) achieve equality of opportunity, full inclusion and 
     integration in society, employment, independent living, and 
     economic and social self-sufficiency, for such individuals.
       ``(b) Purpose.--The purposes of this Act are--
       ``(1) to empower individuals with disabilities to maximize 
     employment, economic

[[Page S4088]]

     self-sufficiency, independence, and inclusion and integration 
     into society, through--
       ``(A) statewide activities carried out in accordance with 
     the Workforce Investment Partnership Act of 1998 that 
     include, as integral components, comprehensive and 
     coordinated state-of-the-art programs of vocational 
     rehabilitation;
       ``(B) independent living centers and services;
       ``(C) research;
       ``(D) training;
       ``(E) demonstration projects; and
       ``(F) the guarantee of equal opportunity; and
       ``(2) to ensure that the Federal Government plays a 
     leadership role in promoting the employment of individuals 
     with disabilities, especially individuals with significant 
     disabilities, and in assisting States and providers of 
     services in fulfilling the aspirations of such individuals 
     with disabilities for meaningful and gainful employment and 
     independent living.
       ``(c) Policy.--It is the policy of the United States that 
     all programs, projects, and activities receiving assistance 
     under this Act shall be carried out in a manner consistent 
     with the principles of--
       ``(1) respect for individual dignity, personal 
     responsibility, self-determination, and pursuit of meaningful 
     careers, based on informed choice, of individuals with 
     disabilities;
       ``(2) respect for the privacy, rights, and equal access 
     (including the use of accessible formats), of the 
     individuals;
       ``(3) inclusion, integration, and full participation of the 
     individuals;
       ``(4) support for the involvement of an individual's 
     representative if an individual with a disability requests, 
     desires, or needs such support; and
       ``(5) support for individual and systemic advocacy and 
     community involvement.


                ``rehabilitation services administration

       ``Sec. 3. (a) There is established in the Office of the 
     Secretary a Rehabilitation Services Administration which 
     shall be headed by a Commissioner (hereinafter in this Act 
     referred to as the `Commissioner') appointed by the President 
     by and with the advice and consent of the Senate. Except for 
     titles IV and V and part A of title VI and as otherwise 
     specifically provided in this Act, such Administration shall 
     be the principal agency, and the Commissioner shall be the 
     principal officer, of such Department for carrying out this 
     Act. The Commissioner shall be an individual with substantial 
     experience in rehabilitation and in rehabilitation program 
     management. In the performance of the functions of the 
     office, the Commissioner shall be directly responsible to the 
     Secretary or to the Under Secretary or an appropriate 
     Assistant Secretary of such Department, as designated by the 
     Secretary. The functions of the Commissioner shall not be 
     delegated to any officer not directly responsible, both with 
     respect to program operation and administration, to the 
     Commissioner. Any reference in this Act to duties to be 
     carried out by the Commissioner shall be considered to be a 
     reference to duties to be carried out by the Secretary acting 
     through the Commissioner. In carrying out any of the 
     functions of the office under this Act, the Commissioner 
     shall be guided by general policies of the National Council 
     on Disability established under title IV of this Act.
       ``(b) The Secretary shall take whatever action is necessary 
     to ensure that funds appropriated pursuant to this Act, as 
     well as unexpended appropriations for carrying out the 
     Vocational Rehabilitation Act (29 U.S.C. 31-42), are expended 
     only for the programs, personnel, and administration of 
     programs carried out under this Act.
       ``(c) The Secretary shall take such action as necessary to 
     ensure that--
       ``(1) the staffing of the Rehabilitation Services 
     Administration shall be in sufficient numbers to meet program 
     needs and at levels which will attract and maintain the most 
     qualified personnel; and
       ``(2) such staff includes individuals who have training and 
     experience in the provision of rehabilitation services and 
     that staff competencies meet professional standards.


                           ``advance funding

       ``Sec. 4. (a) For the purpose of affording adequate notice 
     of funding available under this Act, appropriations under 
     this Act are authorized to be included in the appropriation 
     Act for the fiscal year preceding the fiscal year for which 
     they are available for obligation.
       ``(b) In order to effect a transition to the advance 
     funding method of timing appropriation action, the authority 
     provided by subsection (a) of this section shall apply 
     notwithstanding that its initial application will result in 
     the enactment in the same year (whether in the same 
     appropriation Act or otherwise) of two separate 
     appropriations, one for the then current fiscal year and one 
     for the succeeding fiscal year.


                            ``joint funding

       ``Sec. 5. Pursuant to regulations prescribed by the 
     President, and to the extent consistent with the other 
     provisions of this Act, where funds are provided for a single 
     project by more than one Federal agency to an agency or 
     organization assisted under this Act, the Federal agency 
     principally involved may be designated to act for all in 
     administering the funds provided, and, in such cases, a 
     single non-Federal share requirement may be established 
     according to the proportion of funds advanced by each agency. 
     When the principal agency involved is the Rehabilitation 
     Services Administration, it may waive any grant or contract 
     requirement (as defined by such regulations) under or 
     pursuant to any law other than this Act, which requirement is 
     inconsistent with the similar requirements of the 
     administering agency under or pursuant to this Act.

     ``SEC. 7. DEFINITIONS.

       ``For the purposes of this Act:
       ``(1) Administrative costs.--The term `administrative 
     costs' means expenditures incurred by the designated State 
     unit in the performance of administrative functions under the 
     vocational rehabilitation program carried out under title I, 
     including expenses related to program planning, development, 
     monitoring, and evaluation, including--
       ``(A) expenses for--
       ``(i) quality assurance;
       ``(ii) budgeting, accounting, financial management, 
     information systems, and related data processing;
       ``(iii) provision of information about the program to the 
     public;
       ``(iv) technical assistance and related support services to 
     other State agencies, private nonprofit organizations, and 
     businesses and industries, except for technical assistance 
     and support services described in section 103(b)(5);
       ``(v) the State Rehabilitation Council and other entities 
     that advise the designated State unit with regard to the 
     provision of vocational rehabilitation services;
       ``(vi) removal of architectural barriers in State 
     vocational rehabilitation agency offices and State operated 
     rehabilitation facilities;
       ``(vii) operation and maintenance of designated State unit 
     facilities, equipment, and grounds;
       ``(viii) supplies; and
       ``(ix)(I) administration of the comprehensive system of 
     personnel development described in section 101(a)(7), 
     including personnel administration, and administration of 
     affirmative action plans;
       ``(II) training and staff development; and
       ``(III) administrative salaries, including clerical and 
     other support staff salaries, in support of the 
     administrative functions;
       ``(B) travel costs related to carrying out the program, 
     other than travel costs related to the provision of services;
       ``(C) costs incurred in conducting reviews of 
     rehabilitation counselor or coordinator determinations; and
       ``(D) legal expenses required in the administration of the 
     program.
       ``(2) Assessment for determining eligibility and vocational 
     rehabilitation needs.--The term `assessment for determining 
     eligibility and vocational rehabilitation needs' means, as 
     appropriate in each case--
       ``(A)(i) a review of existing data--
       ``(I) to determine whether an individual is eligible for 
     vocational rehabilitation services; and
       ``(II) to assign priority for an order of selection 
     described in section 101(a)(5)(A) in the States that use an 
     order of selection pursuant to section 101(a)(5)(A); and
       ``(ii) to the extent necessary, the provision of 
     appropriate assessment activities to obtain necessary 
     additional data to make such determination and assignment;
       ``(B) to the extent additional data is necessary to make a 
     determination of the employment outcomes, and the objectives, 
     nature, and scope of vocational rehabilitation services, to 
     be included in the individualized rehabilitation employment 
     plan of an eligible individual, a comprehensive assessment to 
     determine the unique strengths, resources, priorities, 
     concerns, abilities, capabilities, interests, and informed 
     choice, including the need for supported employment, of the 
     eligible individual, which comprehensive assessment--
       ``(i) is limited to information that is necessary to 
     identify the rehabilitation needs of the individual and to 
     develop the individualized rehabilitation employment plan of 
     the eligible individual;
       ``(ii) uses, as a primary source of such information, to 
     the maximum extent possible and appropriate and in accordance 
     with confidentiality requirements--

       ``(I) existing information obtained for the purposes of 
     determining the eligibility of the individual and assigning 
     priority for an order of selection described in section 
     101(a)(5)(A) for the individual; and
       ``(II) such information as can be provided by the 
     individual and, where appropriate, by the family of the 
     individual;

       ``(iii) may include, to the degree needed to make such a 
     determination, an assessment of the personality, interests, 
     interpersonal skills, intelligence and related functional 
     capacities, educational achievements, work experience, 
     vocational aptitudes, personal and social adjustments, and 
     employment opportunities of the individual, and the medical, 
     psychiatric, psychological, and other pertinent vocational, 
     educational, cultural, social, recreational, and 
     environmental factors, that affect the employment and 
     rehabilitation needs of the individual; and
       ``(iv) may include, to the degree needed, an appraisal of 
     the patterns of work behavior of the individual and services 
     needed for the individual to acquire occupational skills, and 
     to develop work attitudes, work habits, work tolerance, and 
     social and behavior patterns necessary for successful job 
     performance, including the utilization of work in real job 
     situations to assess and develop the capacities of the 
     individual to perform adequately in a work environment;
       ``(C) referral, for the provision of rehabilitation 
     technology services to the individual,

[[Page S4089]]

     to assess and develop the capacities of the individual to 
     perform in a work environment; and
       ``(D) an exploration of the individual's abilities, 
     capabilities, and capacity to perform in work situations, 
     through the use of trial work experiences, including 
     experiences in which the individual is provided appropriate 
     supports and training.
       ``(3) Assistive technology device.--The term `assistive 
     technology device' has the meaning given such term in section 
     3(2) of the Technology-Related Assistance for Individuals 
     With Disabilities Act of 1988 (29 U.S.C. 2202(2)), except 
     that the reference in such section to the term `individuals 
     with disabilities' shall be deemed to mean more than one 
     individual with a disability as defined in paragraph (20)(A).
       ``(4) Assistive technology service.--The term `assistive 
     technology service' has the meaning given such term in 
     section 3(3) of the Technology-Related Assistance for 
     Individuals With Disabilities Act of 1988 (29 U.S.C. 
     2202(3)), except that the reference in such section--
       ``(A) to the term `individual with a disability' shall be 
     deemed to mean an individual with a disability, as defined in 
     paragraph (20)(A); and
       ``(B) to the term `individuals with disabilities' shall be 
     deemed to mean more than one such individual.
       ``(5) Community rehabilitation program.--The term 
     `community rehabilitation program' means a program that 
     provides directly or facilitates the provision of vocational 
     rehabilitation services to individuals with disabilities, and 
     that provides, singly or in combination, for an individual 
     with a disability to enable the individual to maximize 
     opportunities for employment, including career advancement--
       ``(A) medical, psychiatric, psychological, social, and 
     vocational services that are provided under one management;
       ``(B) testing, fitting, or training in the use of 
     prosthetic and orthotic devices;
       ``(C) recreational therapy;
       ``(D) physical and occupational therapy;
       ``(E) speech, language, and hearing therapy;
       ``(F) psychiatric, psychological, and social services, 
     including positive behavior management;
       ``(G) assessment for determining eligibility and vocational 
     rehabilitation needs;
       ``(H) rehabilitation technology;
       ``(I) job development, placement, and retention services;
       ``(J) evaluation or control of specific disabilities;
       ``(K) orientation and mobility services for individuals who 
     are blind;
       ``(L) extended employment;
       ``(M) psychosocial rehabilitation services;
       ``(N) supported employment services and extended services;
       ``(O) services to family members when necessary to the 
     vocational rehabilitation of the individual;
       ``(P) personal assistance services; or
       ``(Q) services similar to the services described in one of 
     subparagraphs (A) through (P).
       ``(6) Criminal act.--The term `criminal act' means any 
     crime, including an act, omission, or possession under the 
     laws of the United States or a State or unit of general local 
     government, which poses a substantial threat of personal 
     injury, notwithstanding that by reason of age, insanity, or 
     intoxication or otherwise the person engaging in the act, 
     omission, or possession was legally incapable of committing a 
     crime.
       ``(7) Designated state agency.--The term `designated State 
     agency' means an agency designated under section 
     101(a)(2)(A).
       ``(8) Designated state unit.--The term `designated State 
     unit' means--
       ``(A) any State agency unit required under section 
     101(a)(2)(B)(ii); or
       ``(B) in cases in which no such unit is so required, the 
     State agency described in section 101(a)(2)(B)(i).
       ``(9) Disability.--The term `disability' means--
       ``(A) except as otherwise provided in subparagraph (B), a 
     physical or mental impairment that constitutes or results in 
     a substantial impediment to employment; or
       ``(B) for purposes of sections 2, 14, and 15, and titles 
     II, IV, V, and VII, a physical or mental impairment that 
     substantially limits one or more major life activities.
       ``(10) Drug and illegal use of drugs.--
       ``(A) Drug.--The term `drug' means a controlled substance, 
     as defined in schedules I through V of section 202 of the 
     Controlled Substances Act (21 U.S.C. 812).
       ``(B) Illegal use of drugs.--The term `illegal use of 
     drugs' means the use of drugs, the possession or distribution 
     of which is unlawful under the Controlled Substances Act. 
     Such term does not include the use of a drug taken under 
     supervision by a licensed health care professional, or other 
     uses authorized by the Controlled Substances Act or other 
     provisions of Federal law.
       ``(11) Employment outcome.--The term `employment outcome' 
     means, with respect to an individual--
       ``(A) entering or retaining full-time or, if appropriate, 
     part-time competitive employment in the integrated labor 
     market;
       ``(B) satisfying the vocational outcome of supported 
     employment; or
       ``(C) satisfying any other vocational outcome the Secretary 
     may determine to be appropriate (including satisfying the 
     vocational outcome of self-employment or business ownership),
     in a manner consistent with this Act.
       ``(12) Establishment of a community rehabilitation 
     program.--The term `establishment of a community 
     rehabilitation program' includes the acquisition, expansion, 
     remodeling, or alteration of existing buildings necessary to 
     adapt them to community rehabilitation program purposes or to 
     increase their effectiveness for such purposes (subject, 
     however, to such limitations as the Secretary may determine, 
     in accordance with regulations the Secretary shall prescribe, 
     in order to prevent impairment of the objectives of, or 
     duplication of, other Federal laws providing Federal 
     assistance in the construction of facilities for community 
     rehabilitation programs), and may include such additional 
     equipment and staffing as the Commissioner considers 
     appropriate.
       ``(13) Extended services.--The term `extended services' 
     means ongoing support services and other appropriate 
     services, needed to support and maintain an individual with a 
     most significant disability in supported employment, that--
       ``(A) are provided singly or in combination and are 
     organized and made available in such a way as to assist an 
     eligible individual in maintaining supported employment;
       ``(B) are based on a determination of the needs of an 
     eligible individual, as specified in an individualized 
     rehabilitation employment plan; and
       ``(C) are provided by a State agency, a nonprofit private 
     organization, employer, or any other appropriate resource, 
     after an individual has made the transition from support 
     provided by the designated State unit.
       ``(14) Federal share.--
       ``(A) In general.--Subject to subparagraph (B), the term 
     `Federal share' means 78.7 percent.
       ``(B) Relationship to expenditures by a political 
     subdivision.--For the purpose of determining the non-Federal 
     share with respect to a State, expenditures by a political 
     subdivision thereof or by a local agency shall be regarded as 
     expenditures by such State, subject to such limitations and 
     conditions as the Secretary shall by regulation prescribe.
       ``(15) Governor.--The term `Governor' means--
       ``(A) a chief executive officer of a State; or
       ``(B) in the case of a State that, under State law, vests 
     authority for the administration of the activities carried 
     out under this Act in an entity other than the Governor, such 
     as 1 or more houses of the State legislature or an 
     independent board, the chief officer of that entity.
       ``(16) Impartial hearing officer.--
       ``(A) In general.--The term `impartial hearing officer' 
     means an individual--
       ``(i) who is not an employee of a public agency (other than 
     an administrative law judge, hearing examiner, or employee of 
     an institution of higher education);
       ``(ii) who is not a member of the State Rehabilitation 
     Council described in section 105;
       ``(iii) who has not been involved previously in the 
     vocational rehabilitation of the applicant or client;
       ``(iv) who has knowledge of the delivery of vocational 
     rehabilitation services, the State plan under section 101, 
     and the Federal and State rules governing the provision of 
     such services and training with respect to the performance of 
     official duties; and
       ``(v) who has no personal or financial interest that would 
     be in conflict with the objectivity of the individual.
       ``(B) Construction.--An individual shall not be considered 
     to be an employee of a public agency for purposes of 
     subparagraph (A)(i) solely because the individual is paid by 
     the agency to serve as a hearing officer.
       ``(17) Independent living core services.--The term 
     `independent living core services' means--
       ``(A) information and referral services;
       ``(B) independent living skills training;
       ``(C) peer counseling (including cross-disability peer 
     counseling); and
       ``(D) individual and systems advocacy.
       ``(18) Independent living services.--The term `independent 
     living services' includes--
       ``(A) independent living core services; and
       ``(B)(i) counseling services, including psychological, 
     psychotherapeutic, and related services;
       ``(ii) services related to securing housing or shelter, 
     including services related to community group living, and 
     supportive of the purposes of this Act and of the titles of 
     this Act, and adaptive housing services (including 
     appropriate accommodations to and modifications of any space 
     used to serve, or occupied by, individuals with 
     disabilities);
       ``(iii) rehabilitation technology;
       ``(iv) mobility training;
       ``(v) services and training for individuals with cognitive 
     and sensory disabilities, including life skills training, and 
     interpreter and reader services;
       ``(vi) personal assistance services, including attendant 
     care and the training of personnel providing such services;
       ``(vii) surveys, directories, and other activities to 
     identify appropriate housing, recreation opportunities, and 
     accessible transportation, and other support services;
       ``(viii) consumer information programs on rehabilitation 
     and independent living services available under this Act, 
     especially for minorities and other individuals with 
     disabilities who have traditionally been unserved or 
     underserved by programs under this Act;
       ``(ix) education and training necessary for living in a 
     community and participating in community activities;
       ``(x) supported living;

[[Page S4090]]

       ``(xi) transportation, including referral and assistance 
     for such transportation and training in the use of public 
     transportation vehicles and systems;
       ``(xii) physical rehabilitation;
       ``(xiii) therapeutic treatment;
       ``(xiv) provision of needed prostheses and other appliances 
     and devices;
       ``(xv) individual and group social and recreational 
     services;
       ``(xvi) training to develop skills specifically designed 
     for youths who are individuals with disabilities to promote 
     self-awareness and esteem, develop advocacy and self-
     empowerment skills, and explore career options;
       ``(xvii) services for children;
       ``(xviii) services under other Federal, State, or local 
     programs designed to provide resources, training, counseling, 
     or other assistance, of substantial benefit in enhancing the 
     independence, productivity, and quality of life of 
     individuals with disabilities;
       ``(xix) appropriate preventive services to decrease the 
     need of individuals assisted under this Act for similar 
     services in the future;
       ``(xx) community awareness programs to enhance the 
     understanding and integration into society of individuals 
     with disabilities; and
       ``(xxi) such other services as may be necessary and not 
     inconsistent with the provisions of this Act.
       ``(19) Indian; american indian; indian american; indian 
     tribe.--
       ``(A) In general.--The terms `Indian', `American Indian', 
     and `Indian American' mean an individual who is a member of 
     an Indian tribe.
       ``(B) Indian tribe.--The term `Indian tribe' means any 
     Federal or State Indian tribe, band, rancheria, pueblo, 
     colony, or community, including any Alaskan native village or 
     regional village corporation (as defined in or established 
     pursuant to the Alaska Native Claims Settlement Act).
       ``(20) Individual with a disability.--
       ``(A) In general.--Except as otherwise provided in 
     subparagraph (B), the term `individual with a disability' 
     means any individual who--
       ``(i) has a physical or mental impairment which for such 
     individual constitutes or results in a substantial impediment 
     to employment; and
       ``(ii) can benefit in terms of an employment outcome from 
     vocational rehabilitation services provided pursuant to title 
     I, III, or VI.
       ``(B) Certain programs; limitations on major life 
     activities.--Subject to subparagraphs (C), (D), (E), and (F), 
     the term `individual with a disability' means, for purposes 
     of sections 2, 14, and 15, and titles II, IV, V, and VII of 
     this Act, any person who--
       ``(i) has a physical or mental impairment which 
     substantially limits one or more of such person's major life 
     activities;
       ``(ii) has a record of such an impairment; or
       ``(iii) is regarded as having such an impairment.
       ``(C) Rights and advocacy provisions.--
       ``(i) In general; exclusion of individuals engaging in drug 
     use.--For purposes of title V, the term `individual with a 
     disability' does not include an individual who is currently 
     engaging in the illegal use of drugs, when a covered entity 
     acts on the basis of such use.
       ``(ii) Exception for individuals no longer engaging in drug 
     use.--Nothing in clause (i) shall be construed to exclude as 
     an individual with a disability an individual who--

       ``(I) has successfully completed a supervised drug 
     rehabilitation program and is no longer engaging in the 
     illegal use of drugs, or has otherwise been rehabilitated 
     successfully and is no longer engaging in such use;
       ``(II) is participating in a supervised rehabilitation 
     program and is no longer engaging in such use; or
       ``(III) is erroneously regarded as engaging in such use, 
     but is not engaging in such use;

     except that it shall not be a violation of this Act for a 
     covered entity to adopt or administer reasonable policies or 
     procedures, including but not limited to drug testing, 
     designed to ensure that an individual described in subclause 
     (I) or (II) is no longer engaging in the illegal use of 
     drugs.
       ``(iii) Exclusion for certain services.--Notwithstanding 
     clause (i), for purposes of programs and activities providing 
     health services and services provided under titles I, II, and 
     III, an individual shall not be excluded from the benefits of 
     such programs or activities on the basis of his or her 
     current illegal use of drugs if he or she is otherwise 
     entitled to such services.
       ``(iv) Disciplinary action.--For purposes of programs and 
     activities providing educational services, local educational 
     agencies may take disciplinary action pertaining to the use 
     or possession of illegal drugs or alcohol against any student 
     who is an individual with a disability and who currently is 
     engaging in the illegal use of drugs or in the use of alcohol 
     to the same extent that such disciplinary action is taken 
     against students who are not individuals with disabilities. 
     Furthermore, the due process procedures at section 104.36 of 
     title 34, Code of Federal Regulations (or any corresponding 
     similar regulation or ruling) shall not apply to such 
     disciplinary actions.
       ``(v) Employment; exclusion of alcoholics.--For purposes of 
     sections 503 and 504 as such sections relate to employment, 
     the term `individual with a disability' does not include any 
     individual who is an alcoholic whose current use of alcohol 
     prevents such individual from performing the duties of the 
     job in question or whose employment, by reason of such 
     current alcohol abuse, would constitute a direct threat to 
     property or the safety of others.
       ``(D) Employment; exclusion of individuals with certain 
     diseases or infections.--For the purposes of sections 503 and 
     504, as such sections relate to employment, such term does 
     not include an individual who has a currently contagious 
     disease or infection and who, by reason of such disease or 
     infection, would constitute a direct threat to the health or 
     safety of other individuals or who, by reason of the 
     currently contagious disease or infection, is unable to 
     perform the duties of the job.
       ``(E) Rights provisions; exclusion of individuals on basis 
     of homosexuality or bisexuality.--For the purposes of 
     sections 501, 503, and 504--
       ``(i) for purposes of the application of subparagraph (B) 
     to such sections, the term `impairment' does not include 
     homosexuality or bisexuality; and
       ``(ii) therefore the term `individual with a disability' 
     does not include an individual on the basis of homosexuality 
     or bisexuality.
       ``(F) Rights provisions; exclusion of individuals on basis 
     of certain disorders.--For the purposes of sections 501, 503, 
     and 504, the term `individual with a disability' does not 
     include an individual on the basis of--
       ``(i) transvestism, transsexualism, pedophilia, 
     exhibitionism, voyeurism, gender identity disorders not 
     resulting from physical impairments, or other sexual behavior 
     disorders;
       ``(ii) compulsive gambling, kleptomania, or pyromania; or
       ``(iii) psychoactive substance use disorders resulting from 
     current illegal use of drugs.
       ``(G) Individuals with disabilities.--The term `individuals 
     with disabilities' means more than one individual with a 
     disability.
       ``(21) Individual with a significant disability.--
       ``(A) In general.--Except as provided in subparagraph (B) 
     or (C), the term `individual with a significant disability' 
     means an individual with a disability--
       ``(i) who has a severe physical or mental impairment which 
     seriously limits one or more functional capacities (such as 
     mobility, communication, self-care, self-direction, 
     interpersonal skills, work tolerance, or work skills) in 
     terms of an employment outcome;
       ``(ii) whose vocational rehabilitation can be expected to 
     require multiple vocational rehabilitation services over an 
     extended period of time; and
       ``(iii) who has one or more physical or mental disabilities 
     resulting from amputation, arthritis, autism, blindness, burn 
     injury, cancer, cerebral palsy, cystic fibrosis, deafness, 
     head injury, heart disease, hemiplegia, hemophilia, 
     respiratory or pulmonary dysfunction, mental retardation, 
     mental illness, multiple sclerosis, muscular dystrophy, 
     musculo-skeletal disorders, neurological disorders (including 
     stroke and epilepsy), paraplegia, quadriplegia, and other 
     spinal cord conditions, sickle cell anemia, specific learning 
     disability, end-stage renal disease, or another disability or 
     combination of disabilities determined on the basis of an 
     assessment for determining eligibility and vocational 
     rehabilitation needs described in subparagraphs (A) and (B) 
     of paragraph (2) to cause comparable substantial functional 
     limitation.
       ``(B) Independent living services and centers for 
     independent living.--For purposes of title VII, the term 
     `individual with a significant disability' means an 
     individual with a severe physical or mental impairment whose 
     ability to function independently in the family or community 
     or whose ability to obtain, maintain, or advance in 
     employment is substantially limited and for whom the delivery 
     of independent living services will improve the ability to 
     function, continue functioning, or move towards functioning 
     independently in the family or community or to continue in 
     employment, respectively.
       ``(C) Research and training.--For purposes of title II, the 
     term `individual with a significant disability' includes an 
     individual described in subparagraph (A) or (B).
       ``(D) Individuals with significant disabilities.--The term 
     `individuals with significant disabilities' means more than 
     one individual with a significant disability.
       ``(E) Individual with a most significant disability.--
       ``(i) In general.--The term `individual with a most 
     significant disability', used with respect to an individual 
     in a State, means an individual with a significant disability 
     who meets criteria established by the State under section 
     101(a)(5)(C).
       ``(ii) Individuals with the most significant 
     disabilities.--The term `individuals with the most 
     significant disabilities' means more than one individual with 
     a most significant disability.
       ``(22) Individual's representative; applicant's 
     representative.--
       ``(A) Individual's representative.--The term `individual's 
     representative' used with respect to an eligible individual 
     or other individual with a disability, means--
       ``(i) any representative chosen by the eligible individual 
     or other individual with a disability, including a parent, 
     guardian, other family member, or advocate; or
       ``(ii) if a representative or legal guardian has been 
     appointed by a court to represent the eligible individual or 
     other individual

[[Page S4091]]

     with a disability, the court-appointed representative or 
     legal guardian.
       ``(B) Applicant's representative.--The term `applicant's 
     representative' means--
       ``(i) any representative described in subparagraph (A)(i) 
     chosen by the applicant; or
       ``(ii) if a representative or legal guardian has been 
     appointed by a court to represent the applicant, the court-
     appointed representative or legal guardian.
       ``(23) Institution of higher education.--The term 
     `institution of higher education' has the meaning given the 
     term in section 1201(a) of the Higher Education Act of 1965 
     (20 U.S.C. 1141(a)).
       ``(24) Local agency.--The term `local agency' means an 
     agency of a unit of general local government or of an Indian 
     tribe (or combination of such units or tribes) which has an 
     agreement with the designated State agency to conduct a 
     vocational rehabilitation program under the supervision of 
     such State agency in accordance with the State plan approved 
     under section 101. Nothing in the preceding sentence of this 
     paragraph or in section 101 shall be construed to prevent the 
     local agency from arranging to utilize another local public 
     or nonprofit agency to provide vocational rehabilitation 
     services if such an arrangement is made part of the agreement 
     specified in this paragraph.
       ``(25) Local workforce investment partnership.--The term 
     `local workforce investment partnership' means a local 
     workforce investment partnership established under section 
     308 of the Workforce Investment Partnership Act of 1998.
       ``(26) Nonprofit.--The term `nonprofit', when used with 
     respect to a community rehabilitation program, means a 
     community rehabilitation program carried out by a corporation 
     or association, no part of the net earnings of which inures, 
     or may lawfully inure, to the benefit of any private 
     shareholder or individual and the income of which is exempt 
     from taxation under section 501(c)(3) of the Internal Revenue 
     Code of 1986.
       ``(27) Ongoing support services.--The term `ongoing support 
     services' means services--
       ``(A) provided to individuals with the most significant 
     disabilities;
       ``(B) provided, at a minimum, twice monthly--
       ``(i) to make an assessment, regarding the employment 
     situation, at the worksite of each such individual in 
     supported employment, or, under special circumstances, 
     especially at the request of the client, off site; and
       ``(ii) based on the assessment, to provide for the 
     coordination or provision of specific intensive services, at 
     or away from the worksite, that are needed to maintain 
     employment stability; and
       ``(C) consisting of--
       ``(i) a particularized assessment supplementary to the 
     comprehensive assessment described in paragraph (2)(B);
       ``(ii) the provision of skilled job trainers who accompany 
     the individual for intensive job skill training at the work 
     site;
       ``(iii) job development, job retention, and placement 
     services;
       ``(iv) social skills training;
       ``(v) regular observation or supervision of the individual;
       ``(vi) followup services such as regular contact with the 
     employers, the individuals, the individuals' representatives, 
     and other appropriate individuals, in order to reinforce and 
     stabilize the job placement;
       ``(vii) facilitation of natural supports at the worksite;
       ``(viii) any other service identified in section 103; or
       ``(ix) a service similar to another service described in 
     this subparagraph.
       ``(28) Personal assistance services.--The term `personal 
     assistance services' means a range of services, provided by 
     one or more persons, designed to assist an individual with a 
     disability to perform daily living activities on or off the 
     job that the individual would typically perform if the 
     individual did not have a disability. Such services shall be 
     designed to increase the individual's control in life and 
     ability to perform everyday activities on or off the job.
       ``(29) Public or nonprofit.--The term `public or 
     nonprofit', used with respect to an agency or organization, 
     includes an Indian tribe.
       ``(30) Rehabilitation technology.--The term `rehabilitation 
     technology' means the systematic application of technologies, 
     engineering methodologies, or scientific principles to meet 
     the needs of and address the barriers confronted by 
     individuals with disabilities in areas which include 
     education, rehabilitation, employment, transportation, 
     independent living, and recreation. The term includes 
     rehabilitation engineering, assistive technology devices, and 
     assistive technology services.
       ``(31) Requires vocational rehabilitation services.--The 
     term `requires vocational rehabilitation services', used with 
     respect to an individual with a disability as defined in 
     paragraph (20)(A), means that the individual is unable to 
     prepare for, secure, retain, or regain employment consistent 
     with the strengths, resources, priorities, concerns, 
     abilities, capabilities, interests, and informed choice of 
     the individual without vocational rehabilitation services, 
     because the individual--
       ``(A) has never been employed;
       ``(B) has lost employment;
       ``(C) is underemployed;
       ``(D) is at immediate risk of losing employment; or
       ``(E) receives benefits on the basis of disability or 
     blindness pursuant to title II or XVI of the Social Security 
     Act (42 U.S.C. 401 et seq. or 1381 et seq.), in a case in 
     which the individual intends to achieve an employment outcome 
     consistent with the unique strengths, resources, priorities, 
     concerns, abilities, capabilities, interests, and informed 
     choice of the individual.
       ``(32) Secretary.--The term `Secretary', except when the 
     context otherwise requires, means the Secretary of Education.
       ``(33) State.--The term `State' includes, in addition to 
     each of the several States of the United States, the District 
     of Columbia, the Commonwealth of Puerto Rico, the United 
     States Virgin Islands, Guam, American Samoa, and the 
     Commonwealth of the Northern Mariana Islands.
       ``(34) Statewide workforce investment partnership.--The 
     term `statewide workforce investment partnership' means a 
     partnership established under section 303 of the Workforce 
     Investment Partnership Act of 1998.
       ``(35) Statewide workforce investment system.--The term 
     `statewide workforce investment system' means a system 
     described in section 301 of the Workforce Investment 
     Partnership Act of 1998.
       ``(36) Supported employment.--
       ``(A) In general.--The term `supported employment' means 
     competitive work in integrated work settings, or employment 
     in integrated work settings in which individuals are working 
     toward competitive work, consistent with the strengths, 
     resources, priorities, concerns, abilities, capabilities, 
     interests, and informed choice of the individuals, for 
     individuals with the most significant disabilities--
       ``(i)(I) for whom competitive employment has not 
     traditionally occurred; or
       ``(II) for whom competitive employment has been interrupted 
     or intermittent as a result of a significant disability; and
       ``(ii) who, because of the nature and severity of their 
     disability, need intensive supported employment services for 
     the period, and any extension, described in paragraph (37)(C) 
     and extended services after the transition described in 
     paragraph (13)(C) in order to perform such work.
       ``(B) Certain transitional employment.--Such term includes 
     transitional employment for persons who are individuals with 
     the most significant disabilities due to mental illness.
       ``(37) Supported employment services.--The term `supported 
     employment services' means ongoing support services and other 
     appropriate services needed to support and maintain an 
     individual with a most significant disability in supported 
     employment, that--
       ``(A) are provided singly or in combination and are 
     organized and made available in such a way as to assist an 
     eligible individual to achieve competitive employment;
       ``(B) are based on a determination of the needs of an 
     eligible individual, as specified in an individualized 
     rehabilitation employment plan; and
       ``(C) are provided by the designated State unit for a 
     period of time not to extend beyond 18 months, unless under 
     special circumstances the eligible individual and the 
     rehabilitation counselor or coordinator jointly agree to 
     extend the time in order to achieve the rehabilitation 
     objectives identified in the individualized rehabilitation 
     employment plan.
       ``(38) Transition services.--The term `transition services' 
     means a coordinated set of activities for a student, designed 
     within an outcome-oriented process, that promotes movement 
     from school to post school activities, including 
     postsecondary education, vocational training, integrated 
     employment (including supported employment), continuing and 
     adult education, adult services, independent living, or 
     community participation. The coordinated set of activities 
     shall be based upon the individual student's needs, taking 
     into account the student's preferences and interests, and 
     shall include instruction, community experiences, the 
     development of employment and other post school adult living 
     objectives, and, when appropriate, acquisition of daily 
     living skills and functional vocational evaluation.
       ``(39) Underemployed.--The term `underemployed', used with 
     respect to an individual with a disability, as defined in 
     paragraph (20)(A), means a situation in which the individual 
     is employed in a job that is not consistent with the 
     strengths, resources, priorities, concerns, abilities, 
     capabilities, interests, and informed choice of the 
     individual.
       ``(40) Vocational rehabilitation services.--The term 
     `vocational rehabilitation services' means those services 
     identified in section 103 which are provided to individuals 
     with disabilities under this Act.
       ``(41) Workforce investment activities.--The term 
     `workforce investment activities' has the meaning given the 
     term in section 2 of the Workforce Investment Partnership Act 
     of 1998 carried out under that Act.


                         ``allotment percentage

       ``Sec. 8. (a)(1) For purposes of section 110, the allotment 
     percentage for any State shall be 100 per centum less that 
     percentage which bears the same ratio to 50 per centum as the 
     per capita income of such State bears to the per capita 
     income of the United States, except that--
       ``(A) the allotment percentage shall in no case be more 
     than 75 per centum or less than 33\1/3\ per centum; and

[[Page S4092]]

       ``(B) the allotment percentage for the District of 
     Columbia, Puerto Rico, Guam, the Virgin Islands, American 
     Samoa, and the Commonwealth of the Northern Mariana Islands 
     shall be 75 per centum.
       ``(2) The allotment percentages shall be promulgated by the 
     Secretary between October 1 and December 31 of each even-
     numbered year, on the basis of the average of the per capita 
     incomes of the States and of the United States for the three 
     most recent consecutive years for which satisfactory data are 
     available from the Department of Commerce. Such promulgation 
     shall be conclusive for each of the two fiscal years in the 
     period beginning on the October 1 next succeeding such 
     promulgation.
       ``(3) The term `United States' means (but only for purposes 
     of this subsection) the fifty States and the District of 
     Columbia.
       ``(b) The population of the several States and of the 
     United States shall be determined on the basis of the most 
     recent data available, to be furnished by the Department of 
     Commerce by October 1 of the year preceding the fiscal year 
     for which funds are appropriated pursuant to statutory 
     authorizations.


                            ``nonduplication

       ``Sec. 10. In determining the amount of any State's Federal 
     share of expenditures for planning, administration, and 
     services incurred by it under a State plan approved in 
     accordance with section 101, there shall be disregarded (1) 
     any portion of such expenditures which are financed by 
     Federal funds provided under any other provision of law, and 
     (2) the amount of any non-Federal funds required to be 
     expended as a condition of receipt of such Federal funds. No 
     payment may be made from funds provided under one provision 
     of this Act relating to any cost with respect to which any 
     payment is made under any other provision of this Act, except 
     that this section shall not be construed to limit or reduce 
     fees for services rendered by community rehabilitation 
     programs.


                      ``application of other laws

       ``Sec. 11. The provisions of the Act of December 5, 1974 
     (Public Law 93-510) and of title V of the Act of October 15, 
     1977 (Public Law 95-134) shall not apply to the 
     administration of the provisions of this Act or to the 
     administration of any program or activity under this Act.


                      ``administration of the act

       ``Sec. 12. (a) In carrying out the purposes of this Act, 
     the Commissioner may--
       ``(1) provide consultative services and technical 
     assistance to public or nonprofit private agencies and 
     organizations, including assistance to enable such agencies 
     and organizations to facilitate meaningful and effective 
     participation by individuals with disabilities in workforce 
     investment activities;
       ``(2) provide short-term training and technical 
     instruction, including training for the personnel of 
     community rehabilitation programs, centers for independent 
     living, and other providers of services (including job 
     coaches);
       ``(3) conduct special projects and demonstrations;
       ``(4) collect, prepare, publish, and disseminate special 
     educational or informational materials, including reports of 
     the projects for which funds are provided under this Act; and
       ``(5) provide monitoring and conduct evaluations.
       ``(b)(1) In carrying out the duties under this Act, the 
     Commissioner may utilize the services and facilities of any 
     agency of the Federal Government and of any other public or 
     nonprofit agency or organization, in accordance with 
     agreements between the Commissioner and the head thereof, and 
     may pay therefor, in advance or by way of reimbursement, as 
     may be provided in the agreement.
       ``(2) In carrying out the provisions of this Act, the 
     Commissioner shall appoint such task forces as may be 
     necessary to collect and disseminate information in order to 
     improve the ability of the Commissioner to carry out the 
     provisions of this Act.
       ``(c) The Commissioner may promulgate such regulations as 
     are considered appropriate to carry out the Commissioner's 
     duties under this Act.
       ``(d) The Secretary shall promulgate regulations regarding 
     the requirements for the implementation of an order of 
     selection for vocational rehabilitation services under 
     section 101(a)(5)(A) if such services cannot be provided to 
     all eligible individuals with disabilities who apply for such 
     services.
       ``(e) Not later than 180 days after the date of enactment 
     of the Rehabilitation Act Amendments of 1998, the Secretary 
     shall receive public comment and promulgate regulations to 
     implement the amendments made by the Rehabilitation Act 
     Amendments of 1998.
       ``(f) In promulgating regulations to carry out this Act, 
     the Secretary shall promulgate only regulations that are 
     necessary to administer and ensure compliance with the 
     specific requirements of this Act.
       ``(g) There are authorized to be appropriated to carry out 
     this section such sums as may be necessary.


                               ``reports

       ``Sec. 13. (a) Not later than one hundred and eighty days 
     after the close of each fiscal year, the Commissioner shall 
     prepare and submit to the President and to the Congress a 
     full and complete report on the activities carried out under 
     this Act, including the activities and staffing of the 
     information clearinghouse under section 15.
       ``(b) The Commissioner shall collect information to 
     determine whether the purposes of this Act are being met and 
     to assess the performance of programs carried out under this 
     Act. The Commissioner shall take whatever action is necessary 
     to assure that the identity of each individual for which 
     information is supplied under this section is kept 
     confidential, except as otherwise required by law (including 
     regulation).
       ``(c) In preparing the report, the Commissioner shall 
     annually collect and include in the report information based 
     on the information submitted by States in accordance with 
     section 101(a)(10). The Commissioner shall, to the maximum 
     extent appropriate, include in the report all information 
     that is required to be submitted in the reports described in 
     section 321(d) of the Workforce Investment Partnership Act of 
     1998 and that pertains to the employment of individuals with 
     disabilities.


                              ``evaluation

       ``Sec. 14. (a) For the purpose of improving program 
     management and effectiveness, the Secretary, in consultation 
     with the Commissioner, shall evaluate all the programs 
     authorized by this Act, their general effectiveness in 
     relation to their cost, their impact on related programs, and 
     their structure and mechanisms for delivery of services, 
     using appropriate methodology and evaluative research 
     designs. The Secretary shall establish and use standards for 
     the evaluations required by this subsection. Such an 
     evaluation shall be conducted by a person not immediately 
     involved in the administration of the program evaluated.
       ``(b) In carrying out evaluations under this section, the 
     Secretary shall obtain the opinions of program and project 
     participants about the strengths and weaknesses of the 
     programs and projects.
       ``(c) The Secretary shall take the necessary action to 
     assure that all studies, evaluations, proposals, and data 
     produced or developed with Federal funds under this Act shall 
     become the property of the United States.
       ``(d) Such information as the Secretary may determine to be 
     necessary for purposes of the evaluations conducted under 
     this section shall be made available upon request of the 
     Secretary, by the departments and agencies of the executive 
     branch.
       ``(e)(1) To assess the linkages between vocational 
     rehabilitation services and economic and noneconomic 
     outcomes, the Secretary shall continue to conduct a 
     longitudinal study of a national sample of applicants for the 
     services.
       ``(2) The study shall address factors related to attrition 
     and completion of the program through which the services are 
     provided and factors within and outside the program affecting 
     results. Appropriate comparisons shall be used to contrast 
     the experiences of similar persons who do not obtain the 
     services.
       ``(3) The study shall be planned to cover the period 
     beginning on the application of individuals with disabilities 
     for the services, through the eligibility determination and 
     provision of services for the individuals, and a further 
     period of not less than 2 years after the termination of 
     services.
       ``(f)(1) The Commissioner shall identify and disseminate 
     information on exemplary practices concerning vocational 
     rehabilitation.
       ``(2) To facilitate compliance with paragraph (1), the 
     Commissioner shall conduct studies and analyses that identify 
     exemplary practices concerning vocational rehabilitation, 
     including studies in areas relating to providing informed 
     choice in the rehabilitation process, promoting consumer 
     satisfaction, promoting job placement and retention, 
     providing supported employment, providing services to 
     particular disability populations, financing personal 
     assistance services, providing assistive technology devices 
     and assistive technology services, entering into cooperative 
     agreements, establishing standards and certification for 
     community rehabilitation programs, converting from 
     nonintegrated to integrated employment, and providing 
     caseload management.
       ``(g) There are authorized to be appropriated to carry out 
     this section such sums as may be necessary.


                      ``information clearinghouse

       ``Sec. 15. (a) The Secretary shall establish a central 
     clearinghouse for information and resource availability for 
     individuals with disabilities which shall provide information 
     and data regarding--
       ``(1) the location, provision, and availability of services 
     and programs for individuals with disabilities, including 
     such information and data provided by statewide partnerships 
     established under section 303 of the Workforce Investment 
     Partnership Act of 1998 regarding such services and programs 
     authorized under such Act;
       ``(2) research and recent medical and scientific 
     developments bearing on disabilities (and their prevention, 
     amelioration, causes, and cures); and
       ``(3) the current numbers of individuals with disabilities 
     and their needs.
     The clearinghouse shall also provide any other relevant 
     information and data which the Secretary considers 
     appropriate.
       ``(b) The Commissioner may assist the Secretary to develop 
     within the Department of Education a coordinated system of 
     information and data retrieval, which will have the capacity 
     and responsibility to provide information regarding the 
     information and data referred to in subsection (a) of this 
     section to

[[Page S4093]]

     the Congress, public and private agencies and organizations, 
     individuals with disabilities and their families, 
     professionals in fields serving such individuals, and the 
     general public.
       ``(c) The office established to carry out the provisions of 
     this section shall be known as the `Office of Information and 
     Resources for Individuals with Disabilities'.
       ``(d) There are authorized to be appropriated to carry out 
     this section such sums as may be necessary.


                          ``transfer of funds

       ``Sec. 16. (a) Except as provided in subsection (b) of this 
     section, no funds appropriated under this Act for any program 
     or activity may be used for any purpose other than that for 
     which the funds were specifically authorized.
       ``(b) No more than 1 percent of funds appropriated for 
     discretionary grants, contracts, or cooperative agreements 
     authorized by this Act may be used for the purpose of 
     providing non-Federal panels of experts to review 
     applications for such grants, contracts, or cooperative 
     agreements.


                         ``state administration

       ``Sec. 17. The application of any State rule or policy 
     relating to the administration or operation of programs 
     funded by this Act (including any rule or policy based on 
     State interpretation of any Federal law, regulation, or 
     guideline) shall be identified as a State imposed 
     requirement.


                        ``review of applications

       ``Sec. 18. Applications for grants in excess of $100,000 in 
     the aggregate authorized to be funded under this Act, other 
     than grants primarily for the purpose of conducting 
     dissemination or conferences, shall be reviewed by panels of 
     experts which shall include a majority of non-Federal 
     members. Non-Federal members may be provided travel, per 
     diem, and consultant fees not to exceed the daily equivalent 
     of the rate of pay for level 4 of the Senior Executive 
     Service Schedule under section 5382 of title 5, United States 
     Code.

     ``SEC. 19. CARRYOVER.

       ``(a) In General.--Except as provided in subsection (b), 
     and notwithstanding any other provision of law--
       ``(1) any funds appropriated for a fiscal year to carry out 
     any grant program under part B of title I, section 509 
     (except as provided in section 509(b)), part C of title VI, 
     part B or C of chapter 1 of title VII, or chapter 2 of title 
     VII (except as provided in section 752(b)), including any 
     funds reallotted under any such grant program, that are not 
     obligated and expended by recipients prior to the beginning 
     of the succeeding fiscal year; or
       ``(2) any amounts of program income, including 
     reimbursement payments under the Social Security Act (42 
     U.S.C. 301 et seq.), received by recipients under any grant 
     program specified in paragraph (1) that are not obligated and 
     expended by recipients prior to the beginning of the fiscal 
     year succeeding the fiscal year in which such amounts were 
     received,
     shall remain available for obligation and expenditure by such 
     recipients during such succeeding fiscal year.
       ``(b) Non-Federal Share.--Such funds shall remain available 
     for obligation and expenditure by a recipient as provided in 
     subsection (a) only to the extent that the recipient complied 
     with any Federal share requirements applicable to the program 
     for the fiscal year for which the funds were appropriated.

     ``SEC. 20. CLIENT ASSISTANCE INFORMATION.

       ``All programs, including community rehabilitation 
     programs, and projects, that provide services to individuals 
     with disabilities under this Act shall advise such 
     individuals who are applicants for or recipients of the 
     services, or the applicants' representatives or individuals' 
     representatives, of the availability and purposes of the 
     client assistance program under section 112, including 
     information on means of seeking assistance under such 
     program.

     ``SEC. 21. TRADITIONALLY UNDERSERVED POPULATIONS.

       ``(a) Findings.--With respect to the programs authorized in 
     titles II through VII, the Congress finds as follows:
       ``(1) Racial profile.--The racial profile of America is 
     rapidly changing. While the rate of increase for white 
     Americans is 3.2 percent, the rate of increase for racial and 
     ethnic minorities is much higher: 38.6 percent for Latinos, 
     14.6 percent for African-Americans, and 40.1 percent for 
     Asian-Americans and other ethnic groups. By the year 2000, 
     the Nation will have 260,000,000 people, one of every three 
     of whom will be either African-American, Latino, or Asian-
     American.
       ``(2) Rate of disability.--Ethnic and racial minorities 
     tend to have disabling conditions at a disproportionately 
     high rate. The rate of work-related disability for American 
     Indians is about one and one-half times that of the general 
     population. African-Americans are also one and one-half times 
     more likely to be disabled than whites and twice as likely to 
     be significantly disabled.
       ``(3) Inequitable treatment.--Patterns of inequitable 
     treatment of minorities have been documented in all major 
     junctures of the vocational rehabilitation process. As 
     compared to white Americans, a larger percentage of African-
     American applicants to the vocational rehabilitation system 
     is denied acceptance. Of applicants accepted for service, a 
     larger percentage of African-American cases is closed without 
     being rehabilitated. Minorities are provided less training 
     than their white counterparts. Consistently, less money is 
     spent on minorities than on their white counterparts.
       ``(4) Recruitment.--Recruitment efforts within vocational 
     rehabilitation at the level of preservice training, 
     continuing education, and in-service training must focus on 
     bringing larger numbers of minorities into the profession in 
     order to provide appropriate practitioner knowledge, role 
     models, and sufficient manpower to address the clearly 
     changing demography of vocational rehabilitation.
       ``(b) Outreach to Minorities.--
       ``(1) In general.--For each fiscal year, the Commissioner 
     and the Director of the National Institute on Disability and 
     Rehabilitation Research (referred to in this subsection as 
     the `Director') shall reserve 1 percent of the funds 
     appropriated for the fiscal year for programs authorized 
     under titles II, III, VI, and VII to carry out this 
     subsection. The Commissioner and the Director shall use the 
     reserved funds to carry out 1 or more of the activities 
     described in paragraph (2) through a grant, contract, or 
     cooperative agreement.
       ``(2) Activities.--The activities carried out by the 
     Commissioner and the Director shall include 1 or more of the 
     following:
       ``(A) Making awards to minority entities and Indian tribes 
     to carry out activities under the programs authorized under 
     titles II, III, VI, and VII.
       ``(B) Making awards to minority entities and Indian tribes 
     to conduct research, training, technical assistance, or a 
     related activity, to improve services provided under this 
     Act, especially services provided to individuals from 
     minority backgrounds.
       ``(C) Making awards to entities described in paragraph (3) 
     to provide outreach and technical assistance to minority 
     entities and Indian tribes to promote their participation in 
     activities funded under this Act, including assistance to 
     enhance their capacity to carry out such activities.
       ``(3) Eligibility.--To be eligible to receive an award 
     under paragraph (2)(C), an entity shall be a State or a 
     public or private nonprofit agency or organization, such as 
     an institution of higher education or an Indian tribe.
       ``(4) Report.--In each fiscal year, the Commissioner and 
     the Director shall prepare and submit to Congress a report 
     that describes the activities funded under this subsection 
     for the preceding fiscal year.
       ``(5) Definitions.--In this subsection:
       ``(A) Historically black college or university.--The term 
     `historically Black college or university' means a part B 
     institution, as defined in section 322(2) of the Higher 
     Education Act of 1965 (20 U.S.C. 1061(2)).
       ``(B) Minority entity.--The term `minority entity' means an 
     entity that is a historically Black college or university, a 
     Hispanic-serving institution of higher education, an American 
     Indian tribal college or university, or another institution 
     of higher education whose minority student enrollment is at 
     least 50 percent.
       ``(c) Demonstration.--In awarding grants, or entering into 
     contracts or cooperative agreements under titles I, II, III, 
     VI, and VII, and section 509, the Commissioner and the 
     Director, in appropriate cases, shall require applicants to 
     demonstrate how the applicants will address, in whole or in 
     part, the needs of individuals with disabilities from 
     minority backgrounds.''.

     SEC. 604. VOCATIONAL REHABILITATION SERVICES.

       Title I of the Rehabilitation Act of 1973 (29 U.S.C. 720 et 
     seq.) is amended to read as follows:
             ``TITLE I--VOCATIONAL REHABILITATION SERVICES

                      ``PART A--GENERAL PROVISIONS

     ``SEC. 100. DECLARATION OF POLICY; AUTHORIZATION OF 
                   APPROPRIATIONS.

       ``(a) Findings; Purpose; Policy.--
       ``(1) Findings.--Congress finds that--
       ``(A) work--
       ``(i) is a valued activity, both for individuals and 
     society; and
       ``(ii) fulfills the need of an individual to be productive, 
     promotes independence, enhances self-esteem, and allows for 
     participation in the mainstream of life in the United States;
       ``(B) as a group, individuals with disabilities experience 
     staggering levels of unemployment and poverty;
       ``(C) individuals with disabilities, including individuals 
     with the most significant disabilities, have demonstrated 
     their ability to achieve gainful employment in integrated 
     settings if appropriate services and supports are provided;
       ``(D) reasons for significant numbers of individuals with 
     disabilities not working, or working at levels not 
     commensurate with their abilities and capabilities, include--
       ``(i) discrimination;
       ``(ii) lack of accessible and available transportation;
       ``(iii) fear of losing health coverage under the medicare 
     and medicaid programs carried out under titles XVIII and XIX 
     of the Social Security Act (42 U.S.C. 1395 et seq. and 1396 
     et seq.) or fear of losing private health insurance; and
       ``(iv) lack of education, training, and supports to meet 
     job qualification standards necessary to secure, retain, 
     regain, or advance in employment;
       ``(E) enforcement of title V and of the Americans with 
     Disabilities Act of 1990 (42

[[Page S4094]]

     U.S.C. 12101 et seq.) holds the promise of ending 
     discrimination for individuals with disabilities;
       ``(F) the provision of workforce investment activities and 
     vocational rehabilitation services can enable individuals 
     with disabilities, including individuals with the most 
     significant disabilities, to pursue meaningful careers by 
     securing gainful employment commensurate with their abilities 
     and capabilities; and
       ``(G) linkages between the vocational rehabilitation 
     programs established under this title and other components of 
     the statewide workforce investment system are critical to 
     ensure effective and meaningful participation by individuals 
     with disabilities in workforce investment activities.
       ``(2) Purpose.--The purpose of this title is to assist 
     States in operating statewide comprehensive, coordinated, 
     effective, efficient, and accountable programs of vocational 
     rehabilitation, each of which is--
       ``(A) an integral part of a statewide workforce investment 
     system; and
       ``(B) designed to assess, plan, develop, and provide 
     vocational rehabilitation services for individuals with 
     disabilities, consistent with their strengths, resources, 
     priorities, concerns, abilities, capabilities, interests, and 
     informed choice, so that such individuals may prepare for and 
     engage in gainful employment.
       ``(3) Policy.--It is the policy of the United States that 
     such a program shall be carried out in a manner consistent 
     with the following principles:
       ``(A) Individuals with disabilities, including individuals 
     with the most significant disabilities, are generally 
     presumed to be capable of engaging in gainful employment and 
     the provision of individualized vocational rehabilitation 
     services can improve their ability to become gainfully 
     employed.
       ``(B) Individuals with disabilities must be provided the 
     opportunities to obtain gainful employment in integrated 
     settings.
       ``(C) Individuals who are applicants for such programs or 
     eligible to participate in such programs must be active and 
     full partners, in collaboration with qualified vocational 
     rehabilitation professionals, in the vocational 
     rehabilitation process, making meaningful and informed 
     choices--
       ``(i) during assessments for determining eligibility and 
     vocational rehabilitation needs; and
       ``(ii) in the selection of employment outcomes for the 
     individuals, services needed to achieve the outcomes, 
     entities providing such services, and the methods used to 
     secure such services.
       ``(D) Families and other natural supports can play 
     important roles in the success of a vocational rehabilitation 
     program, if the individual with a disability involved 
     requests, desires, or needs such supports.
       ``(E) Vocational rehabilitation counselors that are trained 
     and prepared in accordance with State policies and procedures 
     as described in section 101(a)(7)(A)(iii) (referred to 
     individually in this title as a `qualified vocational 
     rehabilitation counselor'), other qualified rehabilitation 
     personnel, and other qualified personnel facilitate the 
     accomplishment of the employment outcomes and objectives of 
     an individual.
       ``(F) Individuals with disabilities and the individuals' 
     representatives are full partners in a vocational 
     rehabilitation program and must be involved on a regular 
     basis and in a meaningful manner with respect to policy 
     development and implementation.
       ``(G) Accountability measures must facilitate the 
     accomplishment of the goals and objectives of the program, 
     including providing vocational rehabilitation services to, 
     among others, individuals with the most significant 
     disabilities.
       ``(b) Authorization of Appropriations.--
       ``(1) In general.--For the purpose of making grants to 
     States under part B to assist States in meeting the costs of 
     vocational rehabilitation services provided in accordance 
     with State plans under section 101, there are authorized to 
     be appropriated such sums as may be necessary for fiscal 
     years 1998 through 2004, except that the amount to be 
     appropriated for a fiscal year shall not be less than the 
     amount of the appropriation under this paragraph for the 
     immediately preceding fiscal year, increased by the 
     percentage change in the Consumer Price Index determined 
     under subsection (c) for the immediately preceding fiscal 
     year.
       ``(2) Reference.--The reference in paragraph (1) to grants 
     to States under part B shall not be considered to refer to 
     grants under section 112.
       ``(c) Consumer Price Index.--
       ``(1) Percentage change.--No later than November 15 of each 
     fiscal year (beginning with fiscal year 1979), the Secretary 
     of Labor shall publish in the Federal Register the percentage 
     change in the Consumer Price Index published for October of 
     the preceding fiscal year and October of the fiscal year in 
     which such publication is made.
       ``(2) Application.--
       ``(A) Increase.--If in any fiscal year the percentage 
     change published under paragraph (1) indicates an increase in 
     the Consumer Price Index, then the amount to be appropriated 
     under subsection (b)(1) for the subsequent fiscal year shall 
     be at least the amount appropriated under subsection (b)(1) 
     for the fiscal year in which the publication is made under 
     paragraph (1) increased by such percentage change.
       ``(B) No increase or decrease.--If in any fiscal year the 
     percentage change published under paragraph (1) does not 
     indicate an increase in the Consumer Price Index, then the 
     amount to be appropriated under subsection (b)(1) for the 
     subsequent fiscal year shall be at least the amount 
     appropriated under subsection (b)(1) for the fiscal year in 
     which the publication is made under paragraph (1).
       ``(3) Definition.--For purposes of this section, the term 
     `Consumer Price Index' means the Consumer Price Index for All 
     Urban Consumers, published monthly by the Bureau of Labor 
     Statistics.
       ``(d) Extension.--
       ``(1) In general.--
       ``(A) Authorization or duration of program.--Unless the 
     Congress in the regular session which ends prior to the 
     beginning of the terminal fiscal year--
       ``(i) of the authorization of appropriations for the 
     program authorized by the State grant program under part B of 
     this title; or
       ``(ii) of the duration of the program authorized by the 
     State grant program under part B of this title;

     has passed legislation which would have the effect of 
     extending the authorization or duration (as the case may be) 
     of such program, such authorization or duration is 
     automatically extended for 1 additional year for the program 
     authorized by this title.
       ``(B) Calculation.--The amount authorized to be 
     appropriated for the additional fiscal year described in 
     subparagraph (A) shall be an amount equal to the amount 
     appropriated for such program for fiscal year 2004, increased 
     by the percentage change in the Consumer Price Index 
     determined under subsection (c) for the immediately preceding 
     fiscal year, if the percentage change indicates an increase.
       ``(2) Construction.--
       ``(A) Passage of legislation.--For the purposes of 
     paragraph (1)(A), Congress shall not be deemed to have passed 
     legislation unless such legislation becomes law.
       ``(B) Acts or determinations of commissioner.--In any case 
     where the Commissioner is required under an applicable 
     statute to carry out certain acts or make certain 
     determinations which are necessary for the continuation of 
     the program authorized by this title, if such acts or 
     determinations are required during the terminal year of such 
     program, such acts and determinations shall be required 
     during any fiscal year in which the extension described in 
     that part of paragraph (1) that follows clause (ii) of 
     paragraph (1)(A) is in effect.

     ``SEC. 101. STATE PLANS.

       ``(a) Plan Requirements.--
       ``(1) In general.--
       ``(A) Submission.--To be eligible to participate in 
     programs under this title, a State shall submit to the 
     Commissioner a State plan for vocational rehabilitation 
     services that meets the requirements of this section, on the 
     same date that the State submits a State plan under section 
     304 of the Workforce Investment Partnership Act of 1998.
       ``(B) Nonduplication.--The State shall not be required to 
     submit, in the State plan for vocational rehabilitation 
     services, policies, procedures, or descriptions required 
     under this title that have been previously submitted to the 
     Commissioner and that demonstrate that such State meets the 
     requirements of this title, including any policies, 
     procedures, or descriptions submitted under this title as in 
     effect on the day before the effective date of the 
     Rehabilitation Act Amendments of 1998.
       ``(C) Duration.--The State plan shall remain in effect 
     subject to the submission of such modifications as the State 
     determines to be necessary or as the Commissioner may require 
     based on a change in State policy, a change in Federal law 
     (including regulations), an interpretation of this Act by a 
     Federal court or the highest court of the State, or a finding 
     by the Commissioner of State noncompliance with the 
     requirements of this Act, until the State submits and 
     receives approval of a new State plan.
       ``(2) Designated state agency; designated state unit.--
       ``(A) Designated state agency.--The State plan shall 
     designate a State agency as the sole State agency to 
     administer the plan, or to supervise the administration of 
     the plan by a local agency, except that--
       ``(i) where, under State law, the State agency for 
     individuals who are blind or another agency that provides 
     assistance or services to adults who are blind is authorized 
     to provide vocational rehabilitation services to individuals 
     who are blind, that agency may be designated as the sole 
     State agency to administer the part of the plan under which 
     vocational rehabilitation services are provided for 
     individuals who are blind (or to supervise the administration 
     of such part by a local agency) and a separate State agency 
     may be designated as the sole State agency to administer or 
     supervise the administration of the rest of the State plan;
       ``(ii) the Commissioner, on the request of a State, may 
     authorize the designated State agency to share funding and 
     administrative responsibility with another agency of the 
     State or with a local agency in order to permit the agencies 
     to carry out a joint program to provide services to 
     individuals with disabilities, and may waive compliance, with 
     respect to vocational rehabilitation services furnished under 
     the joint program, with the requirement of paragraph (4) that 
     the plan be in effect in all political subdivisions of the 
     State; and
       ``(iii) in the case of American Samoa, the appropriate 
     State agency shall be the Governor of American Samoa.

[[Page S4095]]

       ``(B) Designated state unit.--The State agency designated 
     under subparagraph (A) shall be--
       ``(i) a State agency primarily concerned with vocational 
     rehabilitation, or vocational and other rehabilitation, of 
     individuals with disabilities; or
       ``(ii) if not such an agency, the State agency (or each 
     State agency if 2 are so designated) shall include a 
     vocational rehabilitation bureau, division, or other 
     organizational unit that--

       ``(I) is primarily concerned with vocational 
     rehabilitation, or vocational and other rehabilitation, of 
     individuals with disabilities, and is responsible for the 
     vocational rehabilitation program of the designated State 
     agency;
       ``(II) has a full-time director;
       ``(III) has a staff employed on the rehabilitation work of 
     the organizational unit all or substantially all of whom are 
     employed full time on such work; and
       ``(IV) is located at an organizational level and has an 
     organizational status within the designated State agency 
     comparable to that of other major organizational units of the 
     designated State agency.

       ``(C) Responsibility for services for the blind.--If the 
     State has designated only 1 State agency pursuant to 
     subparagraph (A), the State may assign responsibility for the 
     part of the plan under which vocational rehabilitation 
     services are provided for individuals who are blind to an 
     organizational unit of the designated State agency and assign 
     responsibility for the rest of the plan to another 
     organizational unit of the designated State agency, with the 
     provisions of subparagraph (B) applying separately to each of 
     the designated State units.
       ``(3) Non-federal share.--The State plan shall provide for 
     financial participation by the State, or if the State so 
     elects, by the State and local agencies, to provide the 
     amount of the non-Federal share of the cost of carrying out 
     part B.
       ``(4) Statewideness.--The State plan shall provide that the 
     plan shall be in effect in all political subdivisions of the 
     State, except that in the case of any activity that, in the 
     judgment of the Commissioner, is likely to assist in 
     promoting the vocational rehabilitation of substantially 
     larger numbers of individuals with disabilities or groups of 
     individuals with disabilities, the Commissioner may waive 
     compliance with the requirement that the plan be in effect in 
     all political subdivisions of the State to the extent and for 
     such period as may be provided in accordance with regulations 
     prescribed by the Commissioner. The Commissioner may waive 
     compliance with the requirement only if the non-Federal share 
     of the cost of the vocational rehabilitation services is 
     provided from funds made available by a local agency 
     (including, to the extent permitted by such regulations, 
     funds contributed to such agency by a private agency, 
     organization, or individual).
       ``(5) Order of selection for vocational rehabilitation 
     services.--In the event that vocational rehabilitation 
     services cannot be provided to all eligible individuals with 
     disabilities in the State who apply for the services, the 
     State plan shall--
       ``(A) show the order to be followed in selecting eligible 
     individuals to be provided vocational rehabilitation 
     services;
       ``(B) provide the justification for the order of selection;
       ``(C) include an assurance that, in accordance with 
     criteria established by the State for the order of selection, 
     individuals with the most significant disabilities will be 
     selected first for the provision of vocational rehabilitation 
     services; and
       ``(D) provide that eligible individuals, who do not meet 
     the order of selection criteria, shall have access to 
     services provided through the information and referral system 
     implemented under paragraph (20).
       ``(6) Methods for administration.--
       ``(A) In general.--The State plan shall provide for such 
     methods of administration as are found by the Commissioner to 
     be necessary for the proper and efficient administration of 
     the plan.
       ``(B) Employment of individuals with disabilities.--The 
     State plan shall provide that the designated State agency, 
     and entities carrying out community rehabilitation programs 
     in the State, who are in receipt of assistance under this 
     title shall take affirmative action to employ and advance in 
     employment qualified individuals with disabilities covered 
     under, and on the same terms and conditions as set forth in, 
     section 503.
       ``(C) Personnel and program standards for community 
     rehabilitation programs.--The State plan shall provide that 
     the designated State unit shall establish, maintain, and 
     implement minimum standards for community rehabilitation 
     programs providing services to individuals under this title, 
     including--
       ``(i) standards--

       ``(I) governing community rehabilitation programs and 
     qualified personnel utilized for the provision of vocational 
     rehabilitation services through such programs; and
       ``(II) providing, to the extent that providers of 
     vocational rehabilitation services utilize personnel who do 
     not meet the highest requirements in the State applicable to 
     a particular profession or discipline, that the providers 
     shall take steps to ensure the retraining or hiring of 
     personnel so that such personnel meet appropriate 
     professional standards in the State; and

       ``(ii) minimum standards to ensure the availability of 
     personnel, to the maximum extent feasible, trained to 
     communicate in the native language or mode of communication 
     of an individual receiving services through such programs.
       ``(D) Facilities.--The State plan shall provide that 
     facilities used in connection with the delivery of services 
     assisted under the State plan shall comply with the Act 
     entitled `An Act to insure that certain buildings financed 
     with Federal funds are so designed and constructed as to be 
     accessible to the physically handicapped', approved on August 
     12, 1968 (commonly known as the `Architectural Barriers Act 
     of 1968'), with section 504, and with the Americans with 
     Disabilities Act of 1990.
       ``(7) Comprehensive system of personnel development.--The 
     State plan shall include--
       ``(A) a description, consistent with the purposes of this 
     Act, of a comprehensive system of personnel development for 
     personnel employed by the designated State unit and involved 
     in carrying out this title, which, at a minimum, shall 
     consist of--
       ``(i) a description of the procedures and activities the 
     designated State agency will implement and undertake to 
     address the current and projected needs for personnel, and 
     training needs of such personnel, in the designated State 
     unit to ensure that the personnel are adequately trained and 
     prepared;
       ``(ii) a plan to coordinate and facilitate efforts between 
     the designated State unit and institutions of higher 
     education and professional associations to recruit, prepare, 
     and retain qualified personnel, including personnel from 
     culturally or linguistically diverse backgrounds, and 
     personnel that include individuals with disabilities;
       ``(iii) a description of policies and procedures on the 
     establishment and maintenance of reasonable standards to 
     ensure that personnel, including professionals and 
     paraprofessionals, are adequately trained and prepared, 
     including--

       ``(I) standards that are consistent with any national or 
     State approved or recognized certification, licensing, 
     registration, or other comparable requirements that apply to 
     the area in which such personnel are providing vocational 
     rehabilitation services; and
       ``(II) to the extent that such standards are not based on 
     the highest requirements in the State applicable to a 
     particular profession or discipline, the steps the State will 
     take to ensure the retraining or hiring of personnel within 
     the designated State unit so that such personnel meet 
     appropriate professional standards in the State;

       ``(iv) a description of a system for evaluating the 
     performance of vocational rehabilitation counselors, 
     coordinators, and other personnel used in the State, 
     including a description of how the system facilitates the 
     accomplishment of the purpose and policy of this title, 
     including the policy of serving individuals with the most 
     significant disabilities;
       ``(v) a description of standards to ensure the availability 
     of personnel within the designated State unit who are, to the 
     maximum extent feasible, trained to communicate in the native 
     language or mode of communication of an applicant or eligible 
     individual; and
       ``(vi) a detailed description, including a budget, of how 
     the funds reserved under subparagraph (B) will be expended to 
     carry out the comprehensive system for personnel development, 
     including the provision of in-service training for personnel 
     of the designated State unit;
       ``(B) assurances that--
       ``(i) at a minimum, the State will reserve from the 
     allotment made to the State under section 110 an amount to 
     carry out the comprehensive system of personnel development, 
     including the provision of in-service training for personnel 
     of the designated State unit;
       ``(ii) for fiscal year 1999, the amount reserved will be 
     equal to the amount of the funds the State received for 
     fiscal year 1998 to provide in-service training under section 
     302, or for any State that did not receive those funds for 
     fiscal year 1998, an amount determined by the Commissioner; 
     and
       ``(iii) for each subsequent year, the amount reserved under 
     this subparagraph will be equal to the amount reserved under 
     this subparagraph for the previous fiscal year, increased by 
     the percentage change in the Consumer Price Index published 
     under section 100(c) in such previous fiscal year, if the 
     percentage change indicates an increase; and
       ``(C) an assurance that the standards adopted by a State in 
     accordance with subparagraph (A)(iii) shall not permit 
     discrimination on the basis of disability with regard to 
     training and hiring.
       ``(8) Comparable services and benefits.--
       ``(A) Determination of availability.--
       ``(i) In general.--The State plan shall include an 
     assurance that, prior to providing any vocational 
     rehabilitation service to an eligible individual, except 
     those services specified in paragraph (5)(D) and in 
     paragraphs (1) through (4) and (14) of section 103(a), the 
     designated State unit will determine whether comparable 
     services and benefits are available under any other program 
     (other than a program carried out under this title) unless 
     such a determination would interrupt or delay--

       ``(I) the progress of the individual toward achieving the 
     employment outcome identified in the individualized 
     rehabilitation employment plan of the individual in 
     accordance with section 102(b); or
       ``(II) the provision of such service to any individual at 
     extreme medical risk.

[[Page S4096]]

       ``(ii) Awards and scholarships.--For purposes of clause 
     (i), comparable benefits do not include awards and 
     scholarships based on merit.
       ``(B) Interagency agreement.--The State plan shall include 
     an assurance that the Governor of the State or the designee 
     of the Governor will ensure that an interagency agreement or 
     other mechanism for interagency coordination takes effect 
     between any appropriate public entity, including a component 
     of the statewide workforce investment system, and the 
     designated State unit, in order to ensure the provision of 
     vocational rehabilitation services described in subparagraph 
     (A) (other than those services specified in paragraph (5)(D), 
     and in paragraphs (1) through (4) and (14) of section 
     103(a)), that are included in the individualized 
     rehabilitation employment plan of an eligible individual, 
     including the provision of such vocational rehabilitation 
     services during the pendency of any dispute described in 
     clause (iii). Such agreement or mechanism shall include the 
     following:
       ``(i) Agency financial responsibility.--An identification 
     of, or a description of a method for defining, the financial 
     responsibility of such public entity for providing such 
     services, and a provision stating that the financial 
     responsibility of such public entity for providing such 
     services, including the financial responsibility of the State 
     agency responsible for administering the medicaid program 
     under title XIX of the Social Security Act (42 U.S.C. 1396 et 
     seq.), other public agencies, and public institutions of 
     higher education, shall precede the financial responsibility 
     of the designated State unit especially with regard to the 
     provision of auxiliary aids and services to the maximum 
     extent allowed by law.
       ``(ii) Conditions, terms, and procedures of 
     reimbursement.--Information specifying the conditions, terms, 
     and procedures under which a designated State unit shall 
     pursue and obtain reimbursement by other public agencies for 
     providing such services.
       ``(iii) Interagency disputes.--Information specifying 
     procedures for resolving interagency disputes under the 
     agreement or other mechanism (including procedures under 
     which the designated State unit may initiate proceedings to 
     secure reimbursement from other agencies or otherwise 
     implement the provisions of the agreement or mechanism).
       ``(iv) Coordination of services procedures.--Information 
     specifying policies and procedures for agencies to determine 
     and identify the interagency coordination responsibilities of 
     each agency to promote the coordination and timely delivery 
     of vocational rehabilitation services (except those services 
     specified in paragraph (5)(D) and in paragraphs (1) through 
     (4) and (14) of section 103(a)).
       ``(C) Responsibilities of other agencies.--
       ``(i) Responsibilities under other law.--Notwithstanding 
     subparagraph (B), if any public agency other than a 
     designated State unit is obligated under Federal or State 
     law, or assigned responsibility under State policy or under 
     this paragraph, to provide or pay for any services that are 
     also considered to be vocational rehabilitation services 
     (other than those specified in paragraph (5)(D) and in 
     paragraphs (1) through (4) and (14) of section 103(a)), such 
     public agency shall fulfill that obligation or 
     responsibility, either directly or by contract or other 
     arrangement.
       ``(ii) Reimbursement.--In a case in which a public agency 
     other than the designated State unit fails to fulfill the 
     financial responsibility of the agency described in this 
     paragraph to provide services described in clause (i), the 
     designated State unit may claim reimbursement from such 
     public agency for such services. Such public agency shall 
     reimburse the designated State unit pursuant to the terms of 
     the interagency agreement or other mechanism in effect under 
     this paragraph according to the procedures established 
     pursuant to subparagraph (B)(ii).
       ``(D) Methods.--The Governor of a State may meet the 
     requirements of subparagraph (B) through--
       ``(i) a State statute or regulation;
       ``(ii) a signed agreement between the respective agency 
     officials that clearly identifies the responsibilities of 
     each agency relating to the provision of services; or
       ``(iii) another appropriate method, as determined by the 
     designated State unit.
       ``(9) Individualized rehabilitation employment plan.--
       ``(A) Development and implementation.--The State plan shall 
     include an assurance that an individualized rehabilitation 
     employment plan meeting the requirements of section 102(b) 
     will be developed and implemented in a timely manner for an 
     individual subsequent to the determination of the eligibility 
     of the individual for services under this title, except that 
     in a State operating under an order of selection described in 
     paragraph (5), the plan will be developed and implemented 
     only for individuals meeting the order of selection criteria 
     of the State.
       ``(B) Provision of services.--The State plan shall include 
     an assurance that such services will be provided in 
     accordance with the provisions of the individualized 
     rehabilitation employment plan.
       ``(10) Reporting requirements.--
       ``(A) In general.--The State plan shall include an 
     assurance that the designated State agency will submit 
     reports in the form and level of detail and at the time 
     required by the Commissioner regarding applicants for, and 
     eligible individuals receiving, services under this title.
       ``(B) Annual reporting.--In specifying the information to 
     be submitted in the reports, the Commissioner shall require 
     annual reporting on the eligible individuals receiving the 
     services, on those specific data elements described in 
     section 321(d)(2) of the Workforce Investment Partnership Act 
     of 1998 that are determined by the Secretary to be relevant 
     in assessing the performance of designated State units in 
     carrying out the vocational rehabilitation program 
     established under this title.
       ``(C) Additional data.--In specifying the information 
     required to be submitted in the reports, the Commissioner 
     shall require additional data with regard to applicants and 
     eligible individuals related to--
       ``(i) the number of applicants and the number of 
     individuals determined to be eligible or ineligible for the 
     program carried out under this title, including--

       ``(I) the number of individuals determined to be ineligible 
     because they did not require vocational rehabilitation 
     services, as provided in section 102(a); and
       ``(II) the number of individuals determined, on the basis 
     of clear and convincing evidence, to be too severely disabled 
     to benefit in terms of an employment outcome from vocational 
     rehabilitation services;

       ``(ii) the number of individuals who received vocational 
     rehabilitation services through the program, including--

       ``(I) the number who received services under paragraph 
     (5)(D), but not assistance under an individualized 
     rehabilitation employment plan; and
       ``(II) the number who received assistance under an 
     individualized rehabilitation employment plan consistent with 
     section 102(b);

       ``(iii) the number of individuals receiving public 
     assistance and the amount of the public assistance on the 
     date of application and on the last date of participation in 
     the program carried out under this title;
       ``(iv) the number of individuals with disabilities who 
     ended their participation in the program and the number who 
     achieved employment outcomes after receiving vocational 
     rehabilitation services; and
       ``(v) the number of individuals who ended their 
     participation in the program and who were employed 6 months 
     and 12 months after securing or regaining employment, or, in 
     the case of individuals whose employment outcome was to 
     retain or advance in employment, who were employed 6 months 
     and 12 months after achieving their employment outcome, 
     including--

       ``(I) the number of such individuals who earned the minimum 
     wage rate specified in section 6(a)(1) of the Fair Labor 
     Standards Act of 1938 (29 U.S.C. 206(a)(1)) or another wage 
     level set by the Commissioner, during such employment;
       ``(II) the number of such individuals who received 
     employment benefits from an employer during such employment; 
     and
       ``(III) the number of such individuals whose public 
     assistance was terminated or reduced after such 
     participation.

       ``(D) Costs and results.--The Commissioner shall also 
     require that the designated State agency include in the 
     reports information on--
       ``(i) the costs under this title of conducting 
     administration, providing assessment services, counseling and 
     guidance, and other direct services provided by designated 
     State agency staff, providing services purchased under 
     individualized rehabilitation employment plans, supporting 
     small business enterprises, establishing, developing, and 
     improving community rehabilitation programs, and providing 
     other services to groups; and
       ``(ii) the results of annual evaluation by the State of 
     program effectiveness under paragraph (15)(E).
       ``(E) Additional information.--The Commissioner shall 
     require that each designated State unit include in the 
     reports additional information related to the applicants and 
     eligible individuals, obtained either through a complete 
     count or sampling, including--
       ``(i) information on--

       ``(I) age, gender, race, ethnicity, education, type of 
     impairment, severity of disability, and whether the 
     individuals are students described in clause (i) or (ii)(II) 
     of paragraph (11)(D);
       ``(II) dates of application, determination of eligibility 
     or ineligibility, initiation of the individualized 
     rehabilitation employment plan, and termination of 
     participation in the program;
       ``(III) earnings at the time of application for the program 
     and termination of participation in the program;
       ``(IV) work status and occupation;
       ``(V) types of services, including assistive technology 
     services and assistive technology devices, provided under the 
     program;
       ``(VI) types of public or private programs or agencies that 
     furnished services under the program; and
       ``(VII) the reasons for individuals terminating 
     participation in the program without achieving an employment 
     outcome; and

       ``(ii) information necessary to determine the success of 
     the State in meeting--

       ``(I) the State performance measures established under 
     section 321(b) of the Workforce Investment Partnership Act of 
     1998 to the extent the measures are applicable to individuals 
     with disabilities; and
       ``(II) the standards and indicators established pursuant to 
     section 106.

       ``(F) Completeness and confidentiality.--The State plan 
     shall include an assurance that the information submitted in 
     the

[[Page S4097]]

     reports will include a complete count, except as provided in 
     subparagraph (E), of the applicants and eligible individuals, 
     in a manner permitting the greatest possible cross-
     classification of data and that the identity of each 
     individual for which information is supplied under this 
     paragraph will be kept confidential.
       ``(11) Cooperation, collaboration, and coordination.--
       ``(A) Cooperative agreements with other components of 
     statewide workforce investment systems.--The State plan shall 
     provide that the designated State unit or designated State 
     agency shall enter into a cooperative agreement with other 
     entities that are components of the statewide workforce 
     investment system of the State, regarding the system, which 
     agreement may provide for--
       ``(i) provision of intercomponent staff training and 
     technical assistance with regard to--

       ``(I) the availability and benefits of, and information on 
     eligibility standards for, vocational rehabilitation 
     services; and
       ``(II) the promotion of equal, effective, and meaningful 
     participation by individuals with disabilities in workforce 
     investment activities in the State through the promotion of 
     program accessibility, the use of nondiscriminatory policies 
     and procedures, and the provision of reasonable 
     accommodations, auxiliary aids and services, and 
     rehabilitation technology, for individuals with disabilities;

       ``(ii) use of information and financial management systems 
     that link all components of the statewide workforce 
     investment system, that link the components to other 
     electronic networks, including nonvisual electronic networks, 
     and that relate to such subjects as labor market information, 
     and information on job vacancies, career planning, and 
     workforce investment activities;
       ``(iii) use of customer service features such as common 
     intake and referral procedures, customer databases, resource 
     information, and human services hotlines;
       ``(iv) establishment of cooperative efforts with employers 
     to--

       ``(I) facilitate job placement; and
       ``(II) carry out any other activities that the designated 
     State unit and the employers determine to be appropriate;

       ``(v) identification of staff roles, responsibilities, and 
     available resources, and specification of the financial 
     responsibility of each component of the statewide workforce 
     investment system with regard to paying for necessary 
     services (consistent with State law and Federal 
     requirements); and
       ``(vi) specification of procedures for resolving disputes 
     among such components.
       ``(B) Replication of cooperative agreements.--The State 
     plan shall provide for the replication of such cooperative 
     agreements at the local level between individual offices of 
     the designated State unit and local entities carrying out 
     activities through the statewide workforce investment system.
       ``(C) Interagency cooperation with other agencies.--The 
     State plan shall include descriptions of interagency 
     cooperation with, and utilization of the services and 
     facilities of, the Federal, State, and local agencies and 
     programs that are not carrying out activities through the 
     statewide workforce investment system.
       ``(D) Coordination with education officials.--The State 
     plan shall contain plans, policies, and procedures for 
     coordination between the designated State agency and 
     education officials that are designed to facilitate the 
     transition of students who are individuals with disabilities 
     described in section 7(20)(B) from the receipt of educational 
     services in school to the receipt of vocational 
     rehabilitation services under this title, including 
     information on a formal interagency agreement with the State 
     educational agency that, at a minimum, provides for--
       ``(i) consultation and technical assistance to assist 
     educational agencies in planning for the transition of 
     students who are individuals with disabilities described in 
     section 7(20)(B) from school to post-school activities, 
     including vocational rehabilitation services;
       ``(ii)(I) transition planning by personnel of the 
     designated State agency and educational agency personnel for 
     students with disabilities described in clause (i) that 
     facilitates the development and completion of their 
     individualized education programs under section 614(d) of the 
     Individuals with Disabilities Education Act (as added by 
     section 101 of Public Law 105-17); and
       ``(II) transition planning and services for students who 
     are eligible to receive services under this title and who 
     will be exiting school in the school year in which the 
     planning and services are provided;
       ``(iii) the roles and responsibilities, including financial 
     responsibilities, of each agency, including provisions for 
     determining State lead agencies and qualified personnel 
     responsible for the transition services described in clause 
     (ii)(II); and
       ``(iv) procedures for outreach to and identification of 
     students with disabilities described in clause (ii)(II) who 
     need the transition services.
       ``(E) Coordination with statewide independent living 
     councils and independent living centers.--The State plan 
     shall include an assurance that the designated State unit, 
     the Statewide Independent Living Council established under 
     section 705, and the independent living centers described in 
     part C of title VII within the State have developed working 
     relationships and coordinate their activities.
       ``(F) Cooperative agreement with recipients of grants for 
     services to american indians.--In applicable cases, the State 
     plan shall include an assurance that the State has entered 
     into a formal cooperative agreement with each grant recipient 
     in the State that receives funds under part C. The agreement 
     shall describe strategies for collaboration and coordination 
     in providing vocational rehabilitation services to American 
     Indians who are individuals with disabilities, including--
       ``(i) strategies for interagency referral and information 
     sharing that will assist in eligibility determinations and 
     the development of individualized rehabilitation employment 
     plans;
       ``(ii) procedures for ensuring that American Indians who 
     are individuals with disabilities and are living near a 
     reservation or tribal service area are provided vocational 
     rehabilitation services; and
       ``(iii) provisions for sharing resources in cooperative 
     studies and assessments, joint training activities, and other 
     collaborative activities designed to improve the provision of 
     services to American Indians who are individuals with 
     disabilities.
       ``(12) Residency.--The State plan shall include an 
     assurance that the State will not impose a residence 
     requirement that excludes from services provided under the 
     plan any individual who is present in the State.
       ``(13) Services to american indians.--The State plan shall 
     include an assurance that, except as otherwise provided in 
     part C, the designated State agency will provide vocational 
     rehabilitation services to American Indians who are 
     individuals with disabilities residing in the State to the 
     same extent as the designated State agency provides such 
     services to other significant populations of individuals with 
     disabilities residing in the State.
       ``(14) Annual review of individuals in extended employment 
     or other employment under special certificate provisions of 
     the fair labor standards act of 1938.--The State plan shall 
     provide for--
       ``(A) an annual review and reevaluation of the status of 
     each individual with a disability served under this title who 
     has achieved an employment outcome either in an extended 
     employment setting in a community rehabilitation program or 
     any other employment under section 14(c) of the Fair Labor 
     Standards Act (29 U.S.C. 214(c)) for 2 years after the 
     achievement of the outcome (and annually thereafter if 
     requested by the individual or, if appropriate, the 
     individual's representative), to determine the interests, 
     priorities, and needs of the individual with respect to 
     competitive employment or training for competitive 
     employment;
       ``(B) input into the review and reevaluation, and a signed 
     acknowledgment that such review and reevaluation have been 
     conducted, by the individual with a disability, or, if 
     appropriate, the individual's representative; and
       ``(C) maximum efforts, including the identification and 
     provision of vocational rehabilitation services, reasonable 
     accommodations, and other necessary support services, to 
     assist the individuals described in subparagraph (A) in 
     engaging in competitive employment.
       ``(15) Annual state goals and reports of progress.--
       ``(A) Assessments and estimates.--The State plan shall--
       ``(i) include the results of a comprehensive, statewide 
     assessment, jointly conducted by the designated State unit 
     and the State Rehabilitation Council (if the State has such a 
     Council) every 3 years, describing the rehabilitation needs 
     of individuals with disabilities residing within the State, 
     particularly the vocational rehabilitation services needs 
     of--

       ``(I) individuals with the most significant disabilities, 
     including their need for supported employment services;
       ``(II) individuals with disabilities who are minorities and 
     individuals with disabilities who have been unserved or 
     underserved by the vocational rehabilitation program carried 
     out under this title; and
       ``(III) individuals with disabilities served through other 
     components of the statewide workforce investment system 
     (other than the vocational rehabilitation program), as 
     identified by such individuals and personnel assisting such 
     individuals through the components;

       ``(ii) include an assessment of the need to establish, 
     develop, or improve community rehabilitation programs within 
     the State; and
       ``(iii) provide that the State shall submit to the 
     Commissioner a report containing information regarding 
     updates to the assessments, for any year in which the State 
     updates the assessments.
       ``(B) Annual estimates.--The State plan shall include, and 
     shall provide that the State shall annually submit a report 
     to the Commissioner that includes, State estimates of--
       ``(i) the number of individuals in the State who are 
     eligible for services under this title;
       ``(ii) the number of such individuals who will receive 
     services provided with funds provided under part B and under 
     part C of title VI, including, if the designated State agency 
     uses an order of selection in accordance with paragraph (5), 
     estimates of the number of individuals to be served under 
     each priority category within the order; and
       ``(iii) the costs of the services described in clause (i), 
     including, if the designated State

[[Page S4098]]

     agency uses an order of selection in accordance with 
     paragraph (5), the service costs for each priority category 
     within the order.
       ``(C) Goals and priorities.--
       ``(i) In general.--The State plan shall identify the goals 
     and priorities of the State in carrying out the program. The 
     goals and priorities shall be jointly developed, agreed to, 
     and reviewed annually by the designated State unit and the 
     State Rehabilitation Council, if the State has such a 
     Council. Any revisions to the goals and priorities shall be 
     jointly agreed to by the designated State unit and the State 
     Rehabilitation Council, if the State has such a Council. The 
     State plan shall provide that the State shall submit to the 
     Commissioner a report containing information regarding 
     revisions in the goals and priorities, for any year in which 
     the State revises the goals and priorities.
       ``(ii) Basis.--The State goals and priorities shall be 
     based on an analysis of--

       ``(I) the comprehensive assessment described in 
     subparagraph (A), including any updates to the assessment;
       ``(II) the performance of the State on the standards and 
     indicators established under section 106; and
       ``(III) other available information on the operation and 
     the effectiveness of the vocational rehabilitation program 
     carried out in the State, including any reports received from 
     the State Rehabilitation Council, under section 105(c) and 
     the findings and recommendations from monitoring activities 
     conducted under section 107.

       ``(iii) Service and outcome goals for categories in order 
     of selection.--If the designated State agency uses an order 
     of selection in accordance with paragraph (5), the State 
     shall also identify in the State plan service and outcome 
     goals and the time within which these goals may be achieved 
     for individuals in each priority category within the order.
       ``(D) Strategies.--The State plan shall contain a 
     description of the strategies the State will use to address 
     the needs identified in the assessment conducted under 
     subparagraph (A) and achieve the goals and priorities 
     identified in subparagraph (C), including--
       ``(i) the methods to be used to expand and improve services 
     to individuals with disabilities, including how a broad range 
     of assistive technology services and assistive technology 
     devices will be provided to such individuals at each stage of 
     the rehabilitation process and how such services and devices 
     will be provided to such individuals on a statewide basis;
       ``(ii) outreach procedures to identify and serve 
     individuals with disabilities who are minorities and 
     individuals with disabilities who have been unserved or 
     underserved by the vocational rehabilitation program;
       ``(iii) where necessary, the plan of the State for 
     establishing, developing, or improving community 
     rehabilitation programs;
       ``(iv) strategies to improve the performance of the State 
     with respect to the evaluation standards and performance 
     indicators established pursuant to section 106; and
       ``(v) strategies for assisting entities carrying out other 
     components of the statewide workforce investment system 
     (other than the vocational rehabilitation program) in 
     assisting individuals with disabilities.
       ``(E) Evaluation and reports of progress.--The State plan 
     shall--
       ``(i) include the results of an evaluation of the 
     effectiveness of the vocational rehabilitation program, and a 
     joint report by the designated State unit and the State 
     Rehabilitation Council, if the State has such a Council, to 
     the Commissioner on the progress made in improving the 
     effectiveness from the previous year, which evaluation and 
     report shall include--

       ``(I) an evaluation of the extent to which the goals 
     identified in subparagraph (C) were achieved;
       ``(II) a description of strategies that contributed to 
     achieving the goals;

       ``(III) to the extent to which the goals were not achieved, 
     a description of the factors that impeded that achievement; 
     and
       ``(IV) an assessment of the performance of the State on the 
     standards and indicators established pursuant to section 106; 
     and

       ``(ii) provide that the designated State unit and the State 
     Rehabilitation Council, if the State has such a Council, 
     shall jointly submit to the Commissioner an annual report 
     that contains the information described in clause (i).
       ``(16) Public comment.--The State plan shall--
       ``(A) provide that the designated State agency, prior to 
     the adoption of any policies or procedures governing the 
     provision of vocational rehabilitation services under the 
     State plan (including making any amendment to such policies 
     and procedures), shall conduct public meetings throughout the 
     State, after providing adequate notice of the meetings, to 
     provide the public, including individuals with disabilities, 
     an opportunity to comment on the policies or procedures, and 
     actively consult with the Director of the client assistance 
     program carried out under section 112, and, as appropriate, 
     Indian tribes, tribal organizations, and Native Hawaiian 
     organizations on the policies or procedures; and
       ``(B) provide that the designated State agency (or each 
     designated State agency if 2 agencies are designated) and any 
     sole agency administering the plan in a political subdivision 
     of the State, shall take into account, in connection with 
     matters of general policy arising in the administration of 
     the plan, the views of--
       ``(i) individuals and groups of individuals who are 
     recipients of vocational rehabilitation services, or in 
     appropriate cases, the individuals' representatives;
       ``(ii) personnel working in programs that provide 
     vocational rehabilitation services to individuals with 
     disabilities;
       ``(iii) providers of vocational rehabilitation services to 
     individuals with disabilities;
       ``(iv) the director of the client assistance program; and
       ``(v) the State Rehabilitation Council, if the State has 
     such a Council.
       ``(17) Prohibition on use of funds for construction of 
     facilities.--The State plan shall contain an assurance that 
     the State will not use any funds made available under this 
     title for the construction of facilities.
       ``(18) Innovation and expansion activities.--The State plan 
     shall--
       ``(A) include an assurance that the State will reserve and 
     use a portion of the funds allotted to the State under 
     section 110--
       ``(i) for the development and implementation of innovative 
     approaches to expand and improve the provision of vocational 
     rehabilitation services to individuals with disabilities 
     under this title, particularly individuals with the most 
     significant disabilities, consistent with the findings of the 
     statewide assessment and goals and priorities of the State as 
     described in paragraph (15); and
       ``(ii) to support the funding of--

       ``(I) the State Rehabilitation Council, if the State has 
     such a Council, consistent with the plan prepared under 
     section 105(d)(1); and
       ``(II) the Statewide Independent Living Council, consistent 
     with the plan prepared under section 705(e)(1);

       ``(B) include a description of how the reserved funds will 
     be utilized; and
       ``(C) provide that the State shall submit to the 
     Commissioner an annual report containing a description of how 
     the reserved funds will be utilized.
       ``(19) Choice.--The State plan shall include an assurance 
     that applicants and eligible individuals or, as appropriate, 
     the applicants' representatives or individuals' 
     representatives, will be provided information and support 
     services to assist the applicants and individuals in 
     exercising informed choice throughout the rehabilitation 
     process, consistent with the provisions of section 102(d).
       ``(20) Information and referral services.--
       ``(A) In general.--The State plan shall include an 
     assurance that the designated State agency will implement an 
     information and referral system adequate to ensure that 
     individuals with disabilities will be provided accurate 
     vocational rehabilitation information, using appropriate 
     modes of communication, to assist such individuals in 
     preparing for, securing, retaining, or regaining employment, 
     and will be appropriately referred to Federal and State 
     programs (other than the vocational rehabilitation program 
     carried out under this title), including other components of 
     the statewide workforce investment system in the State.
       ``(B) Services.--In providing activities through the system 
     established under subparagraph (A), the State may include 
     services consisting of the provision of individualized 
     counseling and guidance, individualized vocational 
     exploration, supervised job placement referrals, and 
     assistance in securing reasonable accommodations for eligible 
     individuals who do not meet the order of selection criteria 
     used by the State, to the extent that such services are not 
     purchased by the designated State unit.
       ``(21) State independent consumer-controlled commission; 
     state rehabilitation council.--
       ``(A) Commission or council.--The State plan shall provide 
     that either--
       ``(i) the designated State agency is an independent 
     commission that--

       ``(I) is responsible under State law for operating, or 
     overseeing the operation of, the vocational rehabilitation 
     program in the State;
       ``(II) is consumer-controlled by persons who--

       ``(aa) are individuals with physical or mental impairments 
     that substantially limit major life activities; and
       ``(bb) represent individuals with a broad range of 
     disabilities, unless the designated State unit under the 
     direction of the commission is the State agency for 
     individuals who are blind;

       ``(III) includes family members, advocates, or other 
     representatives, of individuals with mental impairments; and
       ``(IV) undertakes the functions set forth in section 
     105(c)(4); or

       ``(ii) the State has established a State Rehabilitation 
     Council that meets the criteria set forth in section 105 and 
     the designated State unit--

       ``(I) in accordance with paragraph (15), jointly develops, 
     agrees to, and reviews annually State goals and priorities, 
     and jointly submits annual reports of progress with the 
     Council;
       ``(II) regularly consults with the Council regarding the 
     development, implementation, and revision of State policies 
     and procedures of general applicability pertaining to the 
     provision of vocational rehabilitation services;
       ``(III) includes in the State plan and in any revision to 
     the State plan, a summary of input provided by the Council, 
     including recommendations from the annual report of the 
     Council described in section 105(c)(5), the review and 
     analysis of consumer satisfaction

[[Page S4099]]

     described in section 105(c)(4), and other reports prepared by 
     the Council, and the response of the designated State unit to 
     such input and recommendations, including explanations for 
     rejecting any input or recommendation; and
       ``(IV) transmits to the Council--

       ``(aa) all plans, reports, and other information required 
     under this title to be submitted to the Secretary;
       ``(bb) all policies, and information on all practices and 
     procedures, of general applicability provided to or used by 
     rehabilitation personnel in carrying out this title; and
       ``(cc) copies of due process hearing decisions issued under 
     this title, which shall be transmitted in such a manner as to 
     ensure that the identity of the participants in the hearings 
     is kept confidential.
       ``(B) More than 1 designated state agency.--In the case of 
     a State that, under section 101(a)(2), designates a State 
     agency to administer the part of the State plan under which 
     vocational rehabilitation services are provided for 
     individuals who are blind (or to supervise the administration 
     of such part by a local agency) and designates a separate 
     State agency to administer the rest of the State plan, the 
     State shall either establish a State Rehabilitation Council 
     for each of the 2 agencies that does not meet the 
     requirements in subparagraph (A)(i), or establish 1 State 
     Rehabilitation Council for both agencies if neither agency 
     meets the requirements of subparagraph (A)(i).
       ``(22) Supported employment state plan supplement.--The 
     State plan shall include an assurance that the State has an 
     acceptable plan for carrying out part C of title VI, 
     including the use of funds under that part to supplement 
     funds made available under part B of this title to pay for 
     the cost of services leading to supported employment.
       ``(23) Electronic and information technology regulations.--
     The State plan shall include an assurance that the State, and 
     any recipient or subrecipient of funds made available to the 
     State under this title--
       ``(A) will comply with the requirements of section 508, 
     including the regulations established under that section; and
       ``(B) will designate an employee to coordinate efforts to 
     comply with section 508 and will adopt grievance procedures 
     that incorporate due process standards and provide for the 
     prompt and equitable resolution of complaints concerning such 
     requirements.
       ``(24) Annual updates.--The plan shall include an assurance 
     that the State will submit to the Commissioner reports 
     containing annual updates of the information required under 
     paragraph (7) (relating to a comprehensive system of 
     personnel development) and any other updates of the 
     information required under this section that are requested by 
     the Commissioner, and annual reports as provided in 
     paragraphs (15) (relating to assessments, estimates, goals 
     and priorities, and reports of progress) and (18) (relating 
     to innovation and expansion), at such time and in such manner 
     as the Secretary may determine to be appropriate.
       ``(b) Approval; Disapproval of the State Plan.--
       ``(1) Approval.--The Commissioner shall approve any plan 
     that the Commissioner finds fulfills the conditions specified 
     in this section, and shall disapprove any plan that does not 
     fulfill such conditions.
       ``(2) Disapproval.--Prior to disapproval of the State plan, 
     the Commissioner shall notify the State of the intention to 
     disapprove the plan and shall afford the State reasonable 
     notice and opportunity for a hearing.

     ``SEC. 102. ELIGIBILITY AND INDIVIDUALIZED REHABILITATION 
                   EMPLOYMENT PLAN.

       ``(a) Eligibility.--
       ``(1) Criterion for eligibility.--An individual is eligible 
     for assistance under this title if the individual--
       ``(A) is an individual with a disability under section 
     7(20)(A); and
       ``(B) requires vocational rehabilitation services to 
     prepare for, secure, retain, or regain employment.
       ``(2) Presumption of benefit.--
       ``(A) Demonstration.--For purposes of this section, an 
     individual shall be presumed to be an individual that can 
     benefit in terms of an employment outcome from vocational 
     rehabilitation services under section 7(20)(A), unless the 
     designated State unit involved can demonstrate by clear and 
     convincing evidence that such individual is incapable of 
     benefiting in terms of an employment outcome from vocational 
     rehabilitation services due to the severity of the disability 
     of the individual.
       ``(B) Methods.--In making the demonstration required under 
     subparagraph (A), the designated State unit shall explore the 
     individual's abilities, capabilities, and capacity to perform 
     in work situations, through the use of trial work 
     experiences, as described in section 7(2)(D), with 
     appropriate supports provided through the designated State 
     unit, except under limited circumstances when an individual 
     can not take advantage of such experiences. Such experiences 
     shall be of sufficient variety and over a sufficient period 
     of time to determine the eligibility of the individual or to 
     determine the existence of clear and convincing evidence that 
     the individual is incapable of benefiting in terms of an 
     employment outcome from vocational rehabilitation services 
     due to the severity of the disability of the individual.
       ``(3) Presumption of eligibility.--For purposes of this 
     section, an individual who has a disability or is blind as 
     determined pursuant to title II or title XVI of the Social 
     Security Act (42 U.S.C. 401 et seq. and 1381 et seq.) shall 
     be--
       ``(A) considered to be an individual with a significant 
     disability under section 7(21)(A); and
       ``(B) presumed to be eligible for vocational rehabilitation 
     services under this title (provided that the individual 
     intends to achieve an employment outcome consistent with the 
     unique strengths, resources, priorities, concerns, abilities, 
     capabilities, interests, and informed choice of the 
     individual) unless the designated State unit involved can 
     demonstrate by clear and convincing evidence that such 
     individual is incapable of benefiting in terms of an 
     employment outcome from vocational rehabilitation services 
     due to the severity of the disability of the individual in 
     accordance with paragraph (2).
       ``(4) Use of existing information.--
       ``(A) In general.--To the maximum extent appropriate and 
     consistent with the requirements of this part, for purposes 
     of determining the eligibility of an individual for 
     vocational rehabilitation services under this title and 
     developing the individualized rehabilitation employment plan 
     described in subsection (b) for the individual, the 
     designated State unit shall use information that is existing 
     and current (as of the date of the determination of 
     eligibility or of the development of the individualized 
     rehabilitation employment plan), including information 
     available from other programs and providers, particularly 
     information used by education officials and the Social 
     Security Administration, information provided by the 
     individual and the family of the individual, and information 
     obtained under the assessment for determining eligibility and 
     vocational rehabilitation needs.
       ``(B) Determinations by officials of other agencies.--
     Determinations made by officials of other agencies, 
     particularly education officials described in section 
     101(a)(11)(D), regarding whether an individual satisfies 1 or 
     more factors relating to whether an individual is an 
     individual with a disability under section 7(20)(A) or an 
     individual with a significant disability under section 
     7(21)(A) shall be used, to the extent appropriate and 
     consistent with the requirements of this part, in assisting 
     the designated State unit in making such determinations.
       ``(C) Basis.--The determination of eligibility for 
     vocational rehabilitation services shall be based on--
       ``(i) the review of existing data described in section 
     7(2)(A)(i); and
       ``(ii) to the extent that such data is unavailable or 
     insufficient for determining eligibility, the provision of 
     assessment activities described in section 7(2)(A)(ii).
       ``(5) Determination of ineligibility.--If an individual who 
     applies for services under this title is determined, based on 
     the review of existing data and, to the extent necessary, the 
     assessment activities described in section 7(2)(A)(ii), not 
     to be eligible for the services, or if an eligible individual 
     receiving services under an individualized rehabilitation 
     employment plan is determined to be no longer eligible for 
     the services--
       ``(A) the ineligibility determination involved shall be 
     made only after providing an opportunity for full 
     consultation with the individual or, as appropriate, the 
     individual's representative;
       ``(B) the individual or, as appropriate, the individual's 
     representative, shall be informed in writing (supplemented as 
     necessary by other appropriate modes of communication 
     consistent with the informed choice of the individual) of the 
     ineligibility determination, including--
       ``(i) the reasons for the determination; and
       ``(ii) a description of the means by which the individual 
     may express, and seek a remedy for, any dissatisfaction with 
     the determination, including the procedures for review by an 
     impartial hearing officer under subsection (c);
       ``(C) the individual shall be provided with a description 
     of services available from the client assistance program 
     under section 112 and information on how to contact that 
     program; and
       ``(D) any ineligibility determination that is based on a 
     finding that the individual is incapable of benefiting in 
     terms of an employment outcome shall be reviewed--
       ``(i) within 12 months; and
       ``(ii) annually thereafter, if such a review is requested 
     by the individual or, if appropriate, by the individual's 
     representative.
       ``(6) Timeframe for making an eligibility determination.--
     The designated State unit shall determine whether an 
     individual is eligible for vocational rehabilitation services 
     under this title within a reasonable period of time, not to 
     exceed 60 days, after the individual has submitted an 
     application for the services unless--
       ``(A) exceptional and unforeseen circumstances beyond the 
     control of the designated State unit preclude making an 
     eligibility determination within 60 days and the designated 
     State unit and the individual agree to a specific extension 
     of time; or
       ``(B) the designated State unit is exploring an 
     individual's abilities, capabilities, and capacity to perform 
     in work situations under paragraph (2)(B).
       ``(b) Development of an Individualized Rehabilitation 
     Employment Plan.--
       ``(1) Options for developing an individualized 
     rehabilitation employment plan.--If an individual is 
     determined to be eligible for vocational rehabilitation 
     services as described in subsection (a), the designated State 
     unit shall complete the assessment for

[[Page S4100]]

     determining eligibility and vocational rehabilitation needs, 
     as appropriate, and shall provide the eligible individual or 
     the individual's representative, in writing and in an 
     appropriate mode of communication, with information on the 
     individual's options for developing an individualized 
     rehabilitation employment plan, including--
       ``(A) information on the availability of assistance, to the 
     extent determined to be appropriate by the eligible 
     individual, from a qualified vocational rehabilitation 
     counselor in developing all or part of the individualized 
     rehabilitation employment plan for the individual, and the 
     availability of technical assistance in developing all or 
     part of the individualized rehabilitation employment plan for 
     the individual;
       ``(B) a description of the full range of components that 
     shall be included in an individualized rehabilitation 
     employment plan;
       ``(C) as appropriate--
       ``(i) an explanation of agency guidelines and criteria 
     associated with financial commitments concerning an 
     individualized rehabilitation employment plan;
       ``(ii) additional information the eligible individual 
     requests or the designated State unit determines to be 
     necessary; and
       ``(iii) information on the availability of assistance in 
     completing designated State agency forms required in 
     developing an individualized rehabilitation employment plan; 
     and
       ``(D)(i) a description of the rights and remedies available 
     to such an individual including, if appropriate, recourse to 
     the processes set forth in subsection (c); and
       ``(ii) a description of the availability of a client 
     assistance program established pursuant to section 112 and 
     information about how to contact the client assistance 
     program.
       ``(2) Mandatory procedures.--
       ``(A) Written document.--An individualized rehabilitation 
     employment plan shall be a written document prepared on forms 
     provided by the designated State unit.
       ``(B) Informed choice.--An individualized rehabilitation 
     employment plan shall be developed and implemented in a 
     manner that affords eligible individuals the opportunity to 
     exercise informed choice in selecting an employment outcome, 
     the specific vocational rehabilitation services to be 
     provided under the plan, the entity that will provide the 
     vocational rehabilitation services, and the methods used to 
     procure the services, consistent with subsection (d).
       ``(C) Signatories.--An individualized rehabilitation 
     employment plan shall be--
       ``(i) agreed to, and signed by, such eligible individual 
     or, as appropriate, the individual's representative; and
       ``(ii) approved and signed by a qualified vocational 
     rehabilitation counselor employed by the designated State 
     unit.
       ``(D) Copy.--A copy of the individualized rehabilitation 
     employment plan for an eligible individual shall be provided 
     to the individual or, as appropriate, to the individual's 
     representative, in writing and, if appropriate, in the native 
     language or mode of communication of the individual or, as 
     appropriate, of the individual's representative.
       ``(E) Review and amendment.--The individualized 
     rehabilitation employment plan shall be--
       ``(i) reviewed at least annually by--

       ``(I) a qualified vocational rehabilitation counselor; and
       ``(II) the eligible individual or, as appropriate, the 
     individual's representative; and

       ``(ii) amended, as necessary, by the individual or, as 
     appropriate, the individual's representative, in 
     collaboration with a representative of the designated State 
     agency or a qualified vocational rehabilitation counselor 
     employed by the designated State unit, if there are 
     substantive changes in the employment outcome, the vocational 
     rehabilitation services to be provided, or the service 
     providers of the services (which amendments shall not take 
     effect until agreed to and signed by the eligible individual 
     or, as appropriate, the individual's representative, and by a 
     qualified vocational rehabilitation counselor employed by the 
     designated State unit).
       ``(3) Mandatory components of an individualized 
     rehabilitation employment plan.--Regardless of the approach 
     selected by an eligible individual to develop an 
     individualized rehabilitation employment plan, an 
     individualized rehabilitation employment plan shall, at a 
     minimum, contain mandatory components consisting of--
       ``(A) a description of the specific employment outcome that 
     is chosen by the eligible individual, consistent with the 
     unique strengths, resources, priorities, concerns, abilities, 
     capabilities, interests, and informed choice of the eligible 
     individual, and, to the maximum extent appropriate, results 
     in employment in an integrated setting;
       ``(B)(i) a description of the specific vocational 
     rehabilitation services that are--
       ``(I) needed to achieve the employment outcome, including, 
     as appropriate, the provision of assistive technology devices 
     and assistive technology services, and personal assistance 
     services, including training in the management of such 
     services; and
       ``(II) provided in the most integrated setting that is 
     appropriate for the service involved and is consistent with 
     the informed choice of the eligible individual; and
       ``(ii) timelines for the achievement of the employment 
     outcome and for the initiation of the services;
       ``(C) a description of the entity chosen by the eligible 
     individual or, as appropriate, the individual's 
     representative, that will provide the vocational 
     rehabilitation services, and the methods used to procure such 
     services;
       ``(D) a description of criteria to evaluate progress toward 
     achievement of the employment outcome;
       ``(E) the terms and conditions of the individualized 
     rehabilitation employment plan, including, as appropriate, 
     information describing--
       ``(i) the responsibilities of the designated State unit;
       ``(ii) the responsibilities of the eligible individual, 
     including--

       ``(I) the responsibilities the eligible individual will 
     assume in relation to the employment outcome of the 
     individual;
       ``(II) if applicable, the participation of the eligible 
     individual in paying for the costs of the plan; and
       ``(III) the responsibility of the eligible individual with 
     regard to applying for and securing comparable benefits as 
     described in section 101(a)(8); and

       ``(iii) the responsibilities of other entities as the 
     result of arrangements made pursuant to comparable services 
     or benefits requirements as described in section 101(a)(8);
       ``(F) for an eligible individual with the most significant 
     disabilities for whom an employment outcome in a supported 
     employment setting has been determined to be appropriate, 
     information identifying--
       ``(i) the extended services needed by the eligible 
     individual; and
       ``(ii) the source of extended services or, to the extent 
     that the source of the extended services cannot be identified 
     at the time of the development of the individualized 
     rehabilitation employment plan, a description of the basis 
     for concluding that there is a reasonable expectation that 
     such source will become available; and
       ``(G) as determined to be necessary, a statement of 
     projected need for post-employment services.
       ``(c) Procedures.--
       ``(1) In general.--Each State shall establish procedures 
     for mediation of, and procedures for review through an 
     impartial due process hearing of, determinations made by 
     personnel of the designated State unit that affect the 
     provision of vocational rehabilitation services to applicants 
     or eligible individuals.
       ``(2) Notification.--
       ``(A) Rights and assistance.--The procedures shall provide 
     that an applicant or an eligible individual or, as 
     appropriate, the applicant's representative or individual's 
     representative shall be notified of--
       ``(i) the right to obtain review of determinations 
     described in paragraph (1) in an impartial due process 
     hearing under paragraph (5);
       ``(ii) the right to pursue mediation with respect to the 
     determinations under paragraph (4); and
       ``(iii) the availability of assistance from the client 
     assistance program under section 112.
       ``(B) Timing.--Such notification shall be provided in 
     writing--
       ``(i) at the time an individual applies for vocational 
     rehabilitation services provided under this title;
       ``(ii) at the time the individualized rehabilitation 
     employment plan for the individual is developed; and
       ``(iii) upon reduction, suspension, or cessation of 
     vocational rehabilitation services for the individual.
       ``(3) Evidence and representation.--The procedures required 
     under this subsection shall, at a minimum--
       ``(A) provide an opportunity for an applicant or an 
     eligible individual, or, as appropriate, the applicant's 
     representative or individual's representative, to submit at 
     the mediation session or hearing evidence and information to 
     support the position of the applicant or eligible individual; 
     and
       ``(B) include provisions to allow an applicant or an 
     eligible individual to be represented in the mediation 
     session or hearing by a person selected by the applicant or 
     eligible individual.
       ``(4) Mediation.--
       ``(A) Procedures.--Each State shall ensure that procedures 
     are established and implemented under this subsection to 
     allow parties described in paragraph (1) to disputes 
     involving any determination described in paragraph (1) to 
     resolve such disputes through a mediation process that, at a 
     minimum, shall be available whenever a hearing is requested 
     under this subsection.
       ``(B) Requirements.--Such procedures shall ensure that the 
     mediation process--
       ``(i) is voluntary on the part of the parties;
       ``(ii) is not used to deny or delay the right of an 
     individual to a hearing under this subsection, or to deny any 
     other right afforded under this title; and
       ``(iii) is conducted by a qualified and impartial mediator 
     who is trained in effective mediation techniques.
       ``(C) List of mediators.--The State shall maintain a list 
     of individuals who are qualified mediators and knowledgeable 
     in laws (including regulations) relating to the provision of 
     vocational rehabilitation services under this title, from 
     which the mediators described in subparagraph (B) shall be 
     selected.
       ``(D) Cost.--The State shall bear the cost of the mediation 
     process.
       ``(E) Scheduling.--Each session in the mediation process 
     shall be scheduled in a timely manner and shall be held in a 
     location

[[Page S4101]]

     that is convenient to the parties to the dispute.
       ``(F) Agreement.--An agreement reached by the parties to 
     the dispute in the mediation process shall be set forth in a 
     written mediation agreement.
       ``(G) Confidentiality.--Discussions that occur during the 
     mediation process shall be confidential and may not be used 
     as evidence in any subsequent due process hearing or civil 
     proceeding. The parties to the mediation process may be 
     required to sign a confidentiality pledge prior to the 
     commencement of such process.
       ``(H) Construction.--Nothing in this subsection shall be 
     construed to preclude the parties to such a dispute from 
     informally resolving the dispute prior to proceedings under 
     this paragraph or paragraph (5), if the informal process used 
     is not used to deny or delay the right of the applicant or 
     eligible individual to a hearing under this subsection or to 
     deny any other right afforded under this title.
       ``(5) Hearings.--
       ``(A) Officer.--A due process hearing described in 
     paragraph (2) shall be conducted by an impartial hearing 
     officer who shall issue a decision based on the provisions of 
     the approved State plan, this Act (including regulations 
     implementing this Act), and State regulations and policies 
     that are consistent with the Federal requirements specified 
     in this title. The officer shall provide the decision in 
     writing to the applicant or eligible individual, or, as 
     appropriate, the applicant's representative or individual's 
     representative, and to the designated State unit.
       ``(B) List.--The designated State unit shall maintain a 
     list of qualified impartial hearing officers who are 
     knowledgeable in laws (including regulations) relating to the 
     provision of vocational rehabilitation services under this 
     title from which the officer described in subparagraph (A) 
     shall be selected. For the purposes of maintaining such list, 
     impartial hearing officers shall be identified jointly by--
       ``(i) the designated State unit; and
       ``(ii) members of the Council or commission, as 
     appropriate, described in section 101(a)(21).
       ``(C) Selection.--Such an impartial hearing officer shall 
     be selected to hear a particular case relating to a 
     determination--
       ``(i) on a random basis; or
       ``(ii) by agreement between--

       ``(I) the Director of the designated State unit and the 
     individual with a disability; or
       ``(II) in appropriate cases, the Director and the 
     individual's representative.

       ``(D) Procedures for seeking review.--A State may establish 
     procedures to enable a party involved in a hearing under this 
     paragraph to seek an impartial review of the decision of the 
     hearing officer under subparagraph (A) by--
       ``(i) the chief official of the designated State agency if 
     the State has established both a designated State agency and 
     a designated State unit under section 101(a)(2); or
       ``(ii) an official from the office of the Governor.
       ``(E) Review request.--If the State establishes impartial 
     review procedures under subparagraph (D), either party may 
     request the review of the decision of the hearing officer 
     within 20 days after the decision.
       ``(F) Reviewing official.--The reviewing official described 
     in subparagraph (D) shall--
       ``(i) in conducting the review, provide an opportunity for 
     the submission of additional evidence and information 
     relevant to a final decision concerning the matter under 
     review;
       ``(ii) not overturn or modify the decision of the hearing 
     officer, or part of the decision, that supports the position 
     of the applicant or eligible individual unless the reviewing 
     official concludes, based on clear and convincing evidence, 
     that the decision of the impartial hearing officer is clearly 
     erroneous on the basis of being contrary to the approved 
     State plan, this Act (including regulations implementing this 
     Act) or any State regulation or policy that is consistent 
     with the Federal requirements specified in this title; and
       ``(iii) make a final decision with respect to the matter in 
     a timely manner and provide such decision in writing to the 
     applicant or eligible individual, or, as appropriate, the 
     applicant's representative or individual's representative, 
     and to the designated State unit, including a full report of 
     the findings and the grounds for such decision.
       ``(G) Finality of hearing decision.--A decision made after 
     a hearing under subparagraph (A) shall be final, except that 
     a party may request an impartial review if the State has 
     established procedures for such review under subparagraph (D) 
     and a party involved in a hearing may bring a civil action 
     under subparagraph (J).
       ``(H) Finality of review.--A decision made under 
     subparagraph (F) shall be final unless such a party brings a 
     civil action under subparagraph (J).
       ``(I) Implementation.--If a party brings a civil action 
     under subparagraph (J) to challenge a final decision of a 
     hearing officer under subparagraph (A) or to challenge a 
     final decision of a State reviewing official under 
     subparagraph (F), the final decision involved shall be 
     implemented pending review by the court.
       ``(J) Civil action.--
       ``(i) In general.--Any party aggrieved by a final decision 
     described in subparagraph (I), may bring a civil action for 
     review of such decision. The action may be brought in any 
     State court of competent jurisdiction or in a district court 
     of the United States of competent jurisdiction without regard 
     to the amount in controversy.
       ``(ii) Procedure.--In any action brought under this 
     subparagraph, the court--

       ``(I) shall receive the records relating to the hearing 
     under subparagraph (A) and the records relating to the State 
     review under subparagraphs (D) through (F), if applicable;
       ``(II) shall hear additional evidence at the request of a 
     party to the action; and
       ``(III) basing the decision of the court on the 
     preponderance of the evidence, shall grant such relief as the 
     court determines to be appropriate.

       ``(6) Hearing board.--
       ``(A) In general.--A fair hearing board, established by a 
     State before January 1, 1985, and authorized under State law 
     to review determinations or decisions under this Act, is 
     authorized to carry out the responsibilities of the impartial 
     hearing officer under this subsection.
       ``(B) Application.--The provisions of paragraphs (1), (2), 
     and (3) that relate to due process hearings do not apply, and 
     paragraph (5) (other than subparagraph (J)) does not apply, 
     to any State to which subparagraph (A) applies.
       ``(7) Impact on provision of services.--Unless the 
     individual with a disability so requests, or, in an 
     appropriate case, the individual's representative, so 
     requests, pending a decision by a mediator, hearing officer, 
     or reviewing officer under this subsection, the designated 
     State unit shall not institute a suspension, reduction, or 
     termination of services being provided for the individual, 
     including evaluation and assessment services and plan 
     development, unless such services have been obtained through 
     misrepresentation, fraud, collusion, or criminal conduct on 
     the part of the individual, or the individual's 
     representative.
       ``(8) Information collection and report.--
       ``(A) In general.--The Director of the designated State 
     unit shall collect information described in subparagraph (B) 
     and prepare and submit to the Commissioner a report 
     containing such information. The Commissioner shall prepare a 
     summary of the information furnished under this paragraph and 
     include the summary in the annual report submitted under 
     section 13. The Commissioner shall also collect copies of the 
     final decisions of impartial hearing officers conducting 
     hearings under this subsection and State officials conducting 
     reviews under this subsection.
       ``(B) Information.--The information required to be 
     collected under this subsection includes--
       ``(i) a copy of the standards used by State reviewing 
     officials for reviewing decisions made by impartial hearing 
     officers under this subsection;
       ``(ii) information on the number of hearings and reviews 
     sought from the impartial hearing officers and the State 
     reviewing officials, including the type of complaints and the 
     issues involved;
       ``(iii) information on the number of hearing decisions made 
     under this subsection that were not reviewed by the State 
     reviewing officials; and
       ``(iv) information on the number of the hearing decisions 
     that were reviewed by the State reviewing officials, and, 
     based on such reviews, the number of hearing decisions that 
     were--

       ``(I) sustained in favor of an applicant or eligible 
     individual;
       ``(II) sustained in favor of the designated State unit;
       ``(III) reversed in whole or in part in favor of the 
     applicant or eligible individual; and
       ``(IV) reversed in whole or in part in favor of the 
     designated State unit.

       ``(C) Confidentiality.--The confidentiality of records of 
     applicants and eligible individuals maintained by the 
     designated State unit shall not preclude the access of the 
     Commissioner to those records for the purposes described in 
     subparagraph (A).
       ``(d) Policies and Procedures.--Each designated State 
     agency, in consultation with the State Rehabilitation 
     Council, if the State has such a council, shall, consistent 
     with section 100(a)(3)(C), develop and implement written 
     policies and procedures that enable each individual who is an 
     applicant for or eligible to receive vocational 
     rehabilitation services under this title to exercise informed 
     choice throughout the vocational rehabilitation process 
     carried out under this title, including policies and 
     procedures that require the designated State agency--
       ``(1) to inform each such applicant and eligible individual 
     (including students with disabilities described in section 
     101(a)(11)(D)(ii)(II) who are making the transition from 
     programs under the responsibility of an educational agency to 
     programs under the responsibility of the designated State 
     unit), through appropriate modes of communication, about the 
     availability of, and opportunities to exercise, informed 
     choice, including the availability of support services for 
     individuals with cognitive or other disabilities who require 
     assistance in exercising informed choice, throughout the 
     vocational rehabilitation process;
       ``(2) to assist applicants and eligible individuals in 
     exercising informed choice in decisions related to the 
     provision of assessment services under this title;
       ``(3) to develop and implement flexible procurement 
     policies and methods that facilitate the provision of 
     services, and that afford eligible individuals meaningful 
     choices

[[Page S4102]]

     among the methods used to procure services, under this title;
       ``(4) to provide or assist eligible individuals in 
     acquiring information that enables those individuals to 
     exercise informed choice under this title in the selection 
     of--
       ``(A) the employment outcome;
       ``(B) the specific vocational rehabilitation services 
     needed to achieve the employment outcome;
       ``(C) the entity that will provide the services;
       ``(D) the employment setting and the settings in which the 
     services will be provided; and
       ``(E) the methods available for procuring the services; and
       ``(5) to ensure that the availability and scope of informed 
     choice provided under this section is consistent with the 
     obligations of the designated State agency under this title.

     ``SEC. 103. VOCATIONAL REHABILITATION SERVICES.

       ``(a) Vocational Rehabilitation Services for Individuals.--
     Vocational rehabilitation services provided under this title 
     are any services described in an individualized 
     rehabilitation employment plan necessary to assist an 
     individual with a disability in preparing for, securing, 
     retaining, or regaining an employment outcome that is 
     consistent with the strengths, resources, priorities, 
     concerns, abilities, capabilities, interests, and informed 
     choice of the individual, including--
       ``(1) an assessment for determining eligibility and 
     vocational rehabilitation needs by qualified personnel, 
     including, if appropriate, an assessment by personnel skilled 
     in rehabilitation technology;
       ``(2) counseling and guidance, including information and 
     support services to assist an individual in exercising 
     informed choice consistent with the provisions of section 
     102(d);
       ``(3) referral and other services to secure needed services 
     from other agencies through agreements developed under 
     section 101(b)(11), if such services are not available under 
     this title;
       ``(4) job-related services, including job search and 
     placement assistance, job retention services, followup 
     services, and follow-along services;
       ``(5) vocational and other training services, including the 
     provision of personal and vocational adjustment services, 
     books, tools, and other training materials, except that no 
     training services provided at an institution of higher 
     education shall be paid for with funds under this title 
     unless maximum efforts have been made by the designated State 
     unit and the individual to secure grant assistance, in whole 
     or in part, from other sources to pay for such training;
       ``(6) to the extent that financial support is not readily 
     available from a source (such as through health insurance of 
     the individual or through comparable services and benefits 
     consistent with section 101(a)(8)(A)), other than the 
     designated State unit, diagnosis and treatment of physical 
     and mental impairments, including--
       ``(A) corrective surgery or therapeutic treatment necessary 
     to correct or substantially modify a physical or mental 
     condition that constitutes a substantial impediment to 
     employment, but is of such a nature that such correction or 
     modification may reasonably be expected to eliminate or 
     reduce such impediment to employment within a reasonable 
     length of time;
       ``(B) necessary hospitalization in connection with surgery 
     or treatment;
       ``(C) prosthetic and orthotic devices;
       ``(D) eyeglasses and visual services as prescribed by 
     qualified personnel who meet State licensure laws and who are 
     selected by the individual;
       ``(E) special services (including transplantation and 
     dialysis), artificial kidneys, and supplies necessary for the 
     treatment of individuals with end-stage renal disease; and
       ``(F) diagnosis and treatment for mental and emotional 
     disorders by qualified personnel who meet State licensure 
     laws;
       ``(7) maintenance for additional costs incurred while 
     participating in an assessment for determining eligibility 
     and vocational rehabilitation needs or while receiving 
     services under an individualized rehabilitation employment 
     plan;
       ``(8) transportation, including adequate training in the 
     use of public transportation vehicles and systems, that is 
     provided in connection with the provision of any other 
     service described in this section and needed by the 
     individual to achieve an employment outcome;
       ``(9) on-the-job or other related personal assistance 
     services provided while an individual is receiving other 
     services described in this section;
       ``(10) interpreter services provided by qualified personnel 
     for individuals who are deaf or hard of hearing, and reader 
     services for individuals who are determined to be blind, 
     after an examination by qualified personnel who meet State 
     licensure laws;
       ``(11) rehabilitation teaching services, and orientation 
     and mobility services, for individuals who are blind;
       ``(12) occupational licenses, tools, equipment, and initial 
     stocks and supplies;
       ``(13) technical assistance and other consultation services 
     to conduct market analyses, develop business plans, and 
     otherwise provide resources, to the extent such resources are 
     authorized to be provided under the statewide workforce 
     investment system, to eligible individuals who are pursuing 
     self-employment or establishing a small business operation as 
     an employment outcome;
       ``(14) rehabilitation technology, including 
     telecommunications, sensory, and other technological aids and 
     devices;
       ``(15) transition services for students with disabilities 
     described in section 101(a)(11)(D)(ii)(II), that facilitate 
     the achievement of the employment outcome identified in the 
     individualized rehabilitation employment plan;
       ``(16) supported employment services;
       ``(17) services to the family of an individual with a 
     disability necessary to assist the individual to achieve an 
     employment outcome; and
       ``(18) specific post-employment services necessary to 
     assist an individual with a disability to, retain, regain, or 
     advance in employment.
       ``(b) Vocational Rehabilitation Services for Groups of 
     Individuals.--Vocational rehabilitation services provided for 
     the benefit of groups of individuals with disabilities may 
     also include the following:
       ``(1) In the case of any type of small business operated by 
     individuals with significant disabilities the operation of 
     which can be improved by management services and supervision 
     provided by the designated State agency, the provision of 
     such services and supervision, along or together with the 
     acquisition by the designated State agency of vending 
     facilities or other equipment and initial stocks and 
     supplies.
       ``(2) The establishment, development, or improvement of 
     community rehabilitation programs, that promise to contribute 
     substantially to the rehabilitation of a group of individuals 
     but that are not related directly to the individualized 
     rehabilitation employment plan of any 1 individual with a 
     disability. Such programs shall be used to provide services 
     that promote integration and competitive employment.
       ``(3) The use of telecommunications systems (including 
     telephone, television, satellite, radio, and other similar 
     systems) that have the potential for substantially improving 
     delivery methods of activities described in this section and 
     developing appropriate programming to meet the particular 
     needs of individuals with disabilities.
       ``(4)(A) Special services to provide nonvisual access to 
     information for individuals who are blind, including the use 
     of telecommunications, Braille, sound recordings, or other 
     appropriate media.
       ``(B) Captioned television, films, or video cassettes for 
     individuals who are deaf or hard of hearing.
       ``(C) Tactile materials for individuals who are deaf-blind.
       ``(D) Other special services that provide information 
     through tactile, vibratory, auditory, and visual media.
       ``(5) Technical assistance and support services to 
     businesses that are not subject to title I of the Americans 
     with Disabilities Act of 1990 (42 U.S.C. 12111 et seq.) and 
     that are seeking to employ individuals with disabilities.
       ``(6) Consultative and technical assistance services to 
     assist educational agencies in planning for the transition of 
     students with disabilities described in section 
     101(a)(11)(D)(i) from school to post-school activities, 
     including employment.

     ``SEC. 104. NON-FEDERAL SHARE FOR ESTABLISHMENT OF PROGRAM.

       ``For the purpose of determining the amount of payments to 
     States for carrying out part B of this title (or to an Indian 
     tribe under part C), the non-Federal share, subject to such 
     limitations and conditions as may be prescribed in 
     regulations by the Commissioner, shall include contributions 
     of funds made by any private agency, organization, or 
     individual to a State or local agency to assist in meeting 
     the costs of establishment of a community rehabilitation 
     program, which would be regarded as State or local funds 
     except for the condition, imposed by the contributor, 
     limiting use of such funds to establishment of such a 
     program.

     ``SEC. 105. STATE REHABILITATION COUNCIL.

       ``(a) Establishment.--
       ``(1) In general.--Except as provided in section 
     101(a)(21)(A)(i), to be eligible to receive financial 
     assistance under this title a State shall establish a State 
     Rehabilitation Council (referred to in this section as the 
     `Council') in accordance with this section.
       ``(2) Separate agency for individuals who are blind.--A 
     State that designates a State agency to administer the part 
     of the State plan under which vocational rehabilitation 
     services are provided for individuals who are blind under 
     section 101(a)(2)(A)(i) may establish a separate Council in 
     accordance with this section to perform the duties of such a 
     Council with respect to such State agency.
       ``(b) Composition and Appointment.--
       ``(1) Composition.--
       ``(A) In general.--Except in the case of a separate Council 
     established under subsection (a)(2), the Council shall be 
     composed of--
       ``(i) at least one representative of the Statewide 
     Independent Living Council established under section 705, 
     which representative may be the chairperson or other designee 
     of the Council;
       ``(ii) at least one representative of a parent training and 
     information center established pursuant to section 682(a) of 
     the Individuals with Disabilities Education Act (as added by 
     section 101 of the Individuals with Disabilities Education 
     Act Amendments of 1997; Public Law 105-17);
       ``(iii) at least one representative of the client 
     assistance program established under section 112;

[[Page S4103]]

       ``(iv) at least one vocational rehabilitation counselor, 
     with knowledge of and experience with vocational 
     rehabilitation programs, who shall serve as an ex officio, 
     nonvoting member of the Council if the counselor is an 
     employee of the designated State agency;
       ``(v) at least one representative of community 
     rehabilitation program service providers;
       ``(vi) four representatives of business, industry, and 
     labor;
       ``(vii) representatives of disability advocacy groups 
     representing a cross section of--

       ``(I) individuals with physical, cognitive, sensory, and 
     mental disabilities; and
       ``(II) individuals' representatives of individuals with 
     disabilities who have difficulty in representing themselves 
     or are unable due to their disabilities to represent 
     themselves;

       ``(viii) current or former applicants for, or recipients 
     of, vocational rehabilitation services;
       ``(ix) in a State in which one or more projects are carried 
     out under section 121, at least one representative of the 
     directors of the projects;
       ``(x) at least one representative of the State educational 
     agency responsible for the public education of students with 
     disabilities who are eligible to receive services under this 
     title and part B of the Individuals with Disabilities 
     Education Act; and
       ``(xi) at least one representative of the statewide 
     workforce investment partnership.
       ``(B) Separate council.--In the case of a separate Council 
     established under subsection (a)(2), the Council shall be 
     composed of--
       ``(i) at least one representative described in subparagraph 
     (A)(i);
       ``(ii) at least one representative described in 
     subparagraph (A)(ii);
       ``(iii) at least one representative described in 
     subparagraph (A)(iii);
       ``(iv) at least one vocational rehabilitation counselor 
     described in subparagraph (A)(iv), who shall serve as 
     described in such subparagraph;
       ``(v) at least one representative described in subparagraph 
     (A)(v);
       ``(vi) four representatives described in subparagraph 
     (A)(vi);
       ``(vii) at least one representative of a disability 
     advocacy group representing individuals who are blind;
       ``(viii) at least one individual's representative, of an 
     individual who--

       ``(I) is an individual who is blind and has multiple 
     disabilities; and
       ``(II) has difficulty in representing himself or herself or 
     is unable due to disabilities to represent himself or 
     herself;

       ``(ix) applicants or recipients described in subparagraph 
     (A)(viii);
       ``(x) in a State described in subparagraph (A)(ix), at 
     least one representative described in such subparagraph;
       ``(xi) at least one representative described in 
     subparagraph (A)(x); and
       ``(xii) at least one representative described in 
     subparagraph (A)(xi).
       ``(C) Exception.--In the case of a separate Council 
     established under subsection (a)(2), any Council that is 
     required by State law, as in effect on the date of enactment 
     of the Rehabilitation Act Amendments of 1992, to have fewer 
     than 15 members shall be deemed to be in compliance with 
     subparagraph (B) if the Council--
       ``(i) meets the requirements of subparagraph (B), other 
     than the requirements of clauses (vi) and (ix) of such 
     subparagraph; and
       ``(ii) includes at least--

       ``(I) one representative described in subparagraph (B)(vi); 
     and
       ``(II) one applicant or recipient described in subparagraph 
     (B)(ix).

       ``(2) Ex officio member.--The Director of the designated 
     State unit shall be an ex officio, nonvoting member of the 
     Council.
       ``(3) Appointment.--Members of the Council shall be 
     appointed by the Governor. The Governor shall select members 
     after soliciting recommendations from representatives of 
     organizations representing a broad range of individuals with 
     disabilities and organizations interested in individuals with 
     disabilities. In selecting members, the Governor shall 
     consider, to the greatest extent practicable, the extent to 
     which minority populations are represented on the Council.
       ``(4) Qualifications.--A majority of Council members shall 
     be persons who are--
       ``(A) individuals with disabilities described in section 
     7(20)(A); and
       ``(B) not employed by the designated State unit.
       ``(5) Chairperson.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the Council shall select a chairperson from among the 
     membership of the Council.
       ``(B) Designation by governor.--In States in which the 
     chief executive officer does not have veto power pursuant to 
     State law, the Governor shall designate a member of the 
     Council to serve as the chairperson of the Council or shall 
     require the Council to so designate such a member.
       ``(6) Terms of appointment.--
       ``(A) Length of term.--Each member of the Council shall 
     serve for a term of not more than 3 years, except that--
       ``(i) a member appointed to fill a vacancy occurring prior 
     to the expiration of the term for which a predecessor was 
     appointed, shall be appointed for the remainder of such term; 
     and
       ``(ii) the terms of service of the members initially 
     appointed shall be (as specified by the Governor) for such 
     fewer number of years as will provide for the expiration of 
     terms on a staggered basis.
       ``(B) Number of terms.--No member of the Council, other 
     than a representative described in clause (iii) or (ix) of 
     paragraph (1)(A), or clause (iii) or (x) of paragraph (1)(B), 
     may serve more than two consecutive full terms.
       ``(7) Vacancies.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     any vacancy occurring in the membership of the Council shall 
     be filled in the same manner as the original appointment. The 
     vacancy shall not affect the power of the remaining members 
     to execute the duties of the Council.
       ``(B) Delegation.--The Governor may delegate the authority 
     to fill such a vacancy to the remaining members of the 
     Council after making the original appointment.
       ``(c) Functions of Council.--The Council shall, after 
     consulting with the statewide workforce investment 
     partnership--
       ``(1) review, analyze, and advise the designated State unit 
     regarding the performance of the responsibilities of the unit 
     under this title, particularly responsibilities relating to--
       ``(A) eligibility (including order of selection);
       ``(B) the extent, scope, and effectiveness of services 
     provided; and
       ``(C) functions performed by State agencies that affect or 
     that potentially affect the ability of individuals with 
     disabilities in achieving employment outcomes under this 
     title;
       ``(2) in partnership with the designated State unit--
       ``(A) develop, agree to, and review State goals and 
     priorities in accordance with section 101(a)(15)(C); and
       ``(B) evaluate the effectiveness of the vocational 
     rehabilitation program and submit reports of progress to the 
     Commissioner in accordance with section 101(a)(15)(E);
       ``(3) advise the designated State agency and the designated 
     State unit regarding activities authorized to be carried out 
     under this title, and assist in the preparation of the State 
     plan and amendments to the plan, applications, reports, needs 
     assessments, and evaluations required by this title;
       ``(4) to the extent feasible, conduct a review and analysis 
     of the effectiveness of, and consumer satisfaction with--
       ``(A) the functions performed by the designated State 
     agency;
       ``(B) vocational rehabilitation services provided by State 
     agencies and other public and private entities responsible 
     for providing vocational rehabilitation services to 
     individuals with disabilities under this Act; and
       ``(C) employment outcomes achieved by eligible individuals 
     receiving services under this title, including the 
     availability of health and other employment benefits in 
     connection with such employment outcomes;
       ``(5) prepare and submit an annual report to the Governor 
     and the Commissioner on the status of vocational 
     rehabilitation programs operated within the State, and make 
     the report available to the public;
       ``(6) to avoid duplication of efforts and enhance the 
     number of individuals served, coordinate activities with the 
     activities of other councils within the State, including the 
     Statewide Independent Living Council established under 
     section 705, the advisory panel established under section 
     612(a)(21) of the Individual with Disabilities Education Act 
     (as amended by section 101 of the Individuals with 
     Disabilities Education Act Amendments of 1997; Public Law 
     105-17), the State Developmental Disabilities Council 
     described in section 124 of the Developmental Disabilities 
     Assistance and Bill of Rights Act (42 U.S.C. 6024), the State 
     mental health planning council established under section 
     1914(a) of the Public Health Service Act (42 U.S.C. 300x-
     4(a)), and the statewide workforce investment partnership;
       ``(7) provide for coordination and the establishment of 
     working relationships between the designated State agency and 
     the Statewide Independent Living Council and centers for 
     independent living within the State; and
       ``(8) perform such other functions, consistent with the 
     purpose of this title, as the State Rehabilitation Council 
     determines to be appropriate, that are comparable to the 
     other functions performed by the Council.
       ``(d) Resources.--
       ``(1) Plan.--The Council shall prepare, in conjunction with 
     the designated State unit, a plan for the provision of such 
     resources, including such staff and other personnel, as may 
     be necessary and sufficient to carry out the functions of the 
     Council under this section. The resource plan shall, to the 
     maximum extent possible, rely on the use of resources in 
     existence during the period of implementation of the plan.
       ``(2) Resolution of disagreements.--To the extent that 
     there is a disagreement between the Council and the 
     designated State unit in regard to the resources necessary to 
     carry out the functions of the Council as set forth in this 
     section, the disagreement shall be resolved by the Governor 
     consistent with paragraph (1).
       ``(3) Supervision and evaluation.--Each Council shall, 
     consistent with State law, supervise and evaluate such staff 
     and other personnel as may be necessary to carry out its 
     functions under this section.
       ``(4) Personnel conflict of interest.--While assisting the 
     Council in carrying out its duties, staff and other personnel 
     shall not be assigned duties by the designated State unit or 
     any other agency or office of the

[[Page S4104]]

     State, that would create a conflict of interest.
       ``(e) Conflict of Interest.--No member of the Council shall 
     cast a vote on any matter that would provide direct financial 
     benefit to the member or otherwise give the appearance of a 
     conflict of interest under State law.
       ``(f) Meetings.--The Council shall convene at least 4 
     meetings a year in such places as it determines to be 
     necessary to conduct Council business and conduct such forums 
     or hearings as the Council considers appropriate. The 
     meetings, hearings, and forums shall be publicly announced. 
     The meetings shall be open and accessible to the general 
     public unless there is a valid reason for an executive 
     session.
       ``(g) Compensation and Expenses.--The Council may use funds 
     allocated to the Council by the designated State unit under 
     this title (except for funds appropriated to carry out the 
     client assistance program under section 112 and funds 
     reserved pursuant to section 110(c) to carry out part C) to 
     reimburse members of the Council for reasonable and necessary 
     expenses of attending Council meetings and performing Council 
     duties (including child care and personal assistance 
     services), and to pay compensation to a member of the 
     Council, if such member is not employed or must forfeit wages 
     from other employment, for each day the member is engaged in 
     performing the duties of the Council.
       ``(h) Hearings and Forums.--The Council is authorized to 
     hold such hearings and forums as the Council may determine to 
     be necessary to carry out the duties of the Council.

     ``SEC. 106. EVALUATION STANDARDS AND PERFORMANCE INDICATORS.

       ``(a) Establishment.--
       ``(1) In general.--
       ``(A) Establishment of standards and indicators.--The 
     Commissioner shall, not later than September 30, 1998, 
     establish and publish evaluation standards and performance 
     indicators for the vocational rehabilitation program carried 
     out under this title.
       ``(B) Review and revision.--Effective September 30, 1998, 
     the Commissioner shall review and, if necessary, revise the 
     evaluation standards and performance indicators every 3 
     years. Any revisions of the standards and indicators shall be 
     developed with input from State vocational rehabilitation 
     agencies, related professional and consumer organizations, 
     recipients of vocational rehabilitation services, and other 
     interested parties. Any revisions of the standards and 
     indicators shall be subject to the publication, review, and 
     comment provisions of paragraph (3).
       ``(C) Bases.--Effective July 1, 1999, to the maximum extent 
     practicable, the standards and indicators shall be consistent 
     with the core indicators of performance established under 
     section 321(b) of the Workforce Investment Partnership Act of 
     1998.
       ``(2) Measures.--The standards and indicators shall include 
     outcome and related measures of program performance that 
     facilitate the accomplishment of the purpose and policy of 
     this title.
       ``(3) Comment.--The standards and indicators shall be 
     developed with input from State vocational rehabilitation 
     agencies, related professional and consumer organizations, 
     recipients of vocational rehabilitation services, and other 
     interested parties. The Commissioner shall publish in the 
     Federal Register a notice of intent to regulate regarding the 
     development of proposed standards and indicators. Proposed 
     standards and indicators shall be published in the Federal 
     Register for review and comment. Final standards and 
     indicators shall be published in the Federal Register.
       ``(b) Compliance.--
       ``(1) State reports.--In accordance with regulations 
     established by the Secretary, each State shall report to the 
     Commissioner after the end of each fiscal year the extent to 
     which the State is in compliance with the standards and 
     indicators.
       ``(2) Program improvement.--
       ``(A) Plan.--If the Commissioner determines that the 
     performance of any State is below established standards, the 
     Commissioner shall provide technical assistance to the State, 
     and the State and the Commissioner shall jointly develop a 
     program improvement plan outlining the specific actions to be 
     taken by the State to improve program performance.
       ``(B) Review.--The Commissioner shall--
       ``(i) review the program improvement efforts of the State 
     on a biannual basis and, if necessary, request the State to 
     make further revisions to the plan to improve performance; 
     and
       ``(ii) continue to conduct such reviews and request such 
     revisions until the State sustains satisfactory performance 
     over a period of more than 1 year.
       ``(c) Withholding.--If the Commissioner determines that a 
     State whose performance falls below the established standards 
     has failed to enter into a program improvement plan, or is 
     not complying substantially with the terms and conditions of 
     such a program improvement plan, the Commissioner shall, 
     consistent with subsections (c) and (d) of section 107, 
     reduce or make no further payments to the State under this 
     program, until the State has entered into an approved program 
     improvement plan, or satisfies the Commissioner that the 
     State is complying substantially with the terms and 
     conditions of such a program improvement plan, as 
     appropriate.
       ``(d) Report to Congress.--Beginning in fiscal year 1999, 
     the Commissioner shall include in each annual report to the 
     Congress under section 13 an analysis of program performance, 
     including relative State performance, based on the standards 
     and indicators.

     ``SEC. 107. MONITORING AND REVIEW.

       ``(a) In General.--
       ``(1) Duties.--In carrying out the duties of the 
     Commissioner under this title, the Commissioner shall--
       ``(A) provide for the annual review and periodic onsite 
     monitoring of programs under this title; and
       ``(B) determine whether, in the administration of the State 
     plan, a State is complying substantially with the provisions 
     of such plan and with evaluation standards and performance 
     indicators established under section 106.
       ``(2) Procedures for reviews.--In conducting reviews under 
     this section the Commissioner shall consider, at a minimum--
       ``(A) State policies and procedures;
       ``(B) guidance materials;
       ``(C) decisions resulting from hearings conducted in 
     accordance with due process;
       ``(D) State goals established under section 101(a)(15) and 
     the extent to which the State has achieved such goals;
       ``(E) plans and reports prepared under section 106(b);
       ``(F) consumer satisfaction reviews and analyses described 
     in section 105(c)(4);
       ``(G) information provided by the State Rehabilitation 
     Council established under section 105, if the State has such 
     a Council, or by the commission described in section 
     101(a)(21)(A)(i), if the State has such a commission;
       ``(H) reports; and
       ``(I) budget and financial management data.
       ``(3) Procedures for monitoring.--In conducting monitoring 
     under this section the Commissioner shall conduct--
       ``(A) onsite visits, including onsite reviews of records to 
     verify that the State is following requirements regarding the 
     order of selection set forth in section 101(a)(5)(A);
       ``(B) public hearings and other strategies for collecting 
     information from the public;
       ``(C) meetings with the State Rehabilitation Council, if 
     the State has such a Council or with the commission described 
     in section 101(a)(21)(A)(i), if the State has such a 
     commission;
       ``(D) reviews of individual case files, including 
     individualized rehabilitation employment plans and 
     ineligibility determinations; and
       ``(E) meetings with rehabilitation counselors and other 
     personnel.
       ``(4) Areas of inquiry.--In conducting the review and 
     monitoring, the Commissioner shall examine--
       ``(A) the eligibility process;
       ``(B) the provision of services, including, if applicable, 
     the order of selection;
       ``(C) whether the personnel evaluation system described in 
     section 101(a)(7)(A)(iv) facilitates the accomplishments of 
     the program;
       ``(D) such other areas as may be identified by the public 
     or through meetings with the State Rehabilitation Council, if 
     the State has such a Council or with the commission described 
     in section 101(a)(21)(A)(i), if the State has such a 
     commission; and
       ``(E) such other areas of inquiry as the Commissioner may 
     consider appropriate.
       ``(5) Reports.--If the Commissioner issues a report 
     detailing the findings of an annual review or onsite 
     monitoring conducted under this section, the report shall be 
     made available to the State Rehabilitation Council, if the 
     State has such a Council.
       ``(b) Technical Assistance.--The Commissioner shall--
       ``(1) provide technical assistance to programs under this 
     title regarding improving the quality of vocational 
     rehabilitation services provided; and
       ``(2) provide technical assistance and establish a 
     corrective action plan for a program under this title if the 
     Commissioner finds that the program fails to comply 
     substantially with the provisions of the State plan, or with 
     evaluation standards or performance indicators established 
     under section 106, in order to ensure that such failure is 
     corrected as soon as practicable.
       ``(c) Failure To Comply With Plan.--
       ``(1) Withholding payments.--Whenever the Commissioner, 
     after providing reasonable notice and an opportunity for a 
     hearing to the State agency administering or supervising the 
     administration of the State plan approved under section 101, 
     finds that--
       ``(A) the plan has been so changed that it no longer 
     complies with the requirements of section 101(a); or
       ``(B) in the administration of the plan there is a failure 
     to comply substantially with any provision of such plan or 
     with an evaluation standard or performance indicator 
     established under section 106,

     the Commissioner shall notify such State agency that no 
     further payments will be made to the State under this title 
     (or, in the discretion of the Commissioner, that such further 
     payments will be reduced, in accordance with regulations the 
     Commissioner shall prescribe, or that further payments will 
     not be made to the State only for the projects under the 
     parts of the State plan affected by such failure), until the 
     Commissioner is satisfied there is no longer any such 
     failure.
       ``(2) Period.--Until the Commissioner is so satisfied, the 
     Commissioner shall make no

[[Page S4105]]

     further payments to such State under this title (or shall 
     reduce payments or limit payments to projects under those 
     parts of the State plan in which there is no such failure).
       ``(3) Disbursal of withheld funds.--The Commissioner may, 
     in accordance with regulations the Secretary shall prescribe, 
     disburse any funds withheld from a State under paragraph (1) 
     to any public or nonprofit private organization or agency 
     within such State or to any political subdivision of such 
     State submitting a plan meeting the requirements of section 
     101(a). The Commissioner may not make any payment under this 
     paragraph unless the entity to which such payment is made has 
     provided assurances to the Commissioner that such entity will 
     contribute, for purposes of carrying out such plan, the same 
     amount as the State would have been obligated to contribute 
     if the State received such payment.
       ``(d) Review.--
       ``(1) Petition.--Any State that is dissatisfied with a 
     final determination of the Commissioner under section 101(b) 
     or subsection (c) may file a petition for judicial review of 
     such determination in the United States Court of Appeals for 
     the circuit in which the State is located. Such a petition 
     may be filed only within the 30-day period beginning on the 
     date that notice of such final determination was received by 
     the State. The clerk of the court shall transmit a copy of 
     the petition to the Commissioner or to any officer designated 
     by the Commissioner for that purpose. In accordance with 
     section 2112 of title 28, United States Code, the 
     Commissioner shall file with the court a record of the 
     proceeding on which the Commissioner based the determination 
     being appealed by the State. Until a record is so filed, the 
     Commissioner may modify or set aside any determination made 
     under such proceedings.
       ``(2) Submissions and determinations.--If, in an action 
     under this subsection to review a final determination of the 
     Commissioner under section 101(b) or subsection (c), the 
     petitioner or the Commissioner applies to the court for leave 
     to have additional oral submissions or written presentations 
     made respecting such determination, the court may, for good 
     cause shown, order the Commissioner to provide within 30 days 
     an additional opportunity to make such submissions and 
     presentations. Within such period, the Commissioner may 
     revise any findings of fact, modify or set aside the 
     determination being reviewed, or make a new determination by 
     reason of the additional submissions and presentations, and 
     shall file such modified or new determination, and any 
     revised findings of fact, with the return of such submissions 
     and presentations. The court shall thereafter review such new 
     or modified determination.
       ``(3) Standards of review.--
       ``(A) In general.--Upon the filing of a petition under 
     paragraph (1) for judicial review of a determination, the 
     court shall have jurisdiction--
       ``(i) to grant appropriate relief as provided in chapter 7 
     of title 5, United States Code, except for interim relief 
     with respect to a determination under subsection (c); and
       ``(ii) except as otherwise provided in subparagraph (B), to 
     review such determination in accordance with chapter 7 of 
     title 5, United States Code.
       ``(B) Substantial evidence.--Section 706 of title 5, United 
     States Code, shall apply to the review of any determination 
     under this subsection, except that the standard for review 
     prescribed by paragraph (2)(E) of such section 706 shall not 
     apply and the court shall hold unlawful and set aside such 
     determination if the court finds that the determination is 
     not supported by substantial evidence in the record of the 
     proceeding submitted pursuant to paragraph (1), as 
     supplemented by any additional submissions and presentations 
     filed under paragraph (2).

     ``SEC. 108. EXPENDITURE OF CERTAIN AMOUNTS.

       ``(a) Expenditure.--Amounts described in subsection (b) may 
     not be expended by a State for any purpose other than 
     carrying out programs for which the State receives financial 
     assistance under this title, under part C of title VI, or 
     under title VII.
       ``(b) Amounts.--The amounts referred to in subsection (a) 
     are amounts provided to a State under the Social Security Act 
     (42 U.S.C. 301 et seq.) as reimbursement for the expenditure 
     of payments received by the State from allotments under 
     section 110 of this Act.

     ``SEC. 109. TRAINING OF EMPLOYERS WITH RESPECT TO AMERICANS 
                   WITH DISABILITIES ACT OF 1990.

       ``A State may expend payments received under section 111--
       ``(1) to carry out a program to train employers with 
     respect to compliance with the requirements of title I of the 
     Americans with Disabilities Act of 1990 (42 U.S.C. 12111 et 
     seq.); and
       ``(2) to inform employers of the existence of the program 
     and the availability of the services of the program.

           ``Part B--Basic Vocational Rehabilitation Services


                           ``state allotments

       ``Sec. 110. (a)(1) Subject to the provisions of subsection 
     (c), for each fiscal year beginning before October 1, 1978, 
     each State shall be entitled to an allotment of an amount 
     bearing the same ratio to the amount authorized to be 
     appropriated under section 100(b)(1) for allotment under this 
     section as the product of--
       ``(A) the population of the State; and
       ``(B) the square of its allotment percentage,

     bears to the sum of the corresponding products for all the 
     States.
       ``(2)(A) For each fiscal year beginning on or after October 
     1, 1978, each State shall be entitled to an allotment in an 
     amount equal to the amount such State received under 
     paragraph (1) for the fiscal year ending September 30, 1978, 
     and an additional amount determined pursuant to subparagraph 
     (B) of this paragraph.
       ``(B) For each fiscal year beginning on or after October 1, 
     1978, each State shall be entitled to an allotment, from any 
     amount authorized to be appropriated for such fiscal year 
     under section 100(b)(1) for allotment under this section in 
     excess of the amount appropriated under section 100(b)(1)(A) 
     for the fiscal year ending September 30, 1978, in an amount 
     equal to the sum of--
       ``(i) an amount bearing the same ratio to 50 percent of 
     such excess amount as the product of the population of the 
     State and the square of its allotment percentage bears to the 
     sum of the corresponding products for all the States; and
       ``(ii) an amount bearing the same ratio to 50 percent of 
     such excess amount as the product of the population of the 
     State and its allotment percentage bears to the sum of the 
     corresponding products for all the States.
       ``(3) The sum of the payment to any State (other than Guam, 
     American Samoa, the Virgin Islands, and the Commonwealth of 
     the Northern Mariana Islands) under this subsection for any 
     fiscal year which is less than one-third of 1 percent of the 
     amount appropriated under section 100(b)(1), or $3,000,000, 
     whichever is greater, shall be increased to that amount, the 
     total of the increases thereby required being derived by 
     proportionately reducing the allotment to each of the 
     remaining such States under this subsection, but with such 
     adjustments as may be necessary to prevent the sum of the 
     allotments made under this subsection to any such remaining 
     State from being thereby reduced to less than that amount.
       ``(b)(1) Not later than forty-five days prior to the end of 
     the fiscal year, the Commissioner shall determine, after 
     reasonable opportunity for the submission to the Commissioner 
     of comments by the State agency administering or supervising 
     the program established under this title, that any payment of 
     an allotment to a State under section 111(a) for any fiscal 
     year will not be utilized by such State in carrying out the 
     purposes of this title.
       ``(2) As soon as practicable but not later than the end of 
     the fiscal year, the Commissioner shall make such amount 
     available for carrying out the purposes of this title to one 
     or more other States to the extent the Commissioner 
     determines such other State will be able to use such 
     additional amount during that fiscal year or the subsequent 
     fiscal year for carrying out such purposes. The Commissioner 
     shall make such amount available only if such other State 
     will be able to make sufficient payments from non-Federal 
     sources to pay for the non-Federal share of the cost of 
     vocational rehabilitation services under the State plan for 
     the fiscal year for which the amount was appropriated.
       ``(3) For the purposes of this part, any amount made 
     available to a State for any fiscal year pursuant to this 
     subsection shall be regarded as an increase of such State's 
     allotment (as determined under the preceding provisions of 
     this section) for such year.
       ``(c)(1) For fiscal year 1987 and for each subsequent 
     fiscal year, the Commissioner shall reserve from the amount 
     appropriated under section 100(b)(1) for allotment under this 
     section a sum, determined under paragraph (2), to carry out 
     the purposes of part C.
       ``(2) The sum referred to in paragraph (1) shall be, as 
     determined by the Secretary--
       ``(A) not less than three-quarters of 1 percent and not 
     more than 1.5 percent of the amount referred to in paragraph 
     (1), for fiscal year 1998; and
       ``(B) not less than 1 percent and not more than 1.5 percent 
     of the amount referred to in paragraph (1), for each of 
     fiscal years 1999 through 2004.


                          ``payments to states

       ``Sec. 111. (a)(1) Except as provided in paragraph (2), 
     from each State's allotment under this part for any fiscal 
     year, the Commissioner shall pay to a State an amount equal 
     to the Federal share of the cost of vocational rehabilitation 
     services under the plan for that State approved under section 
     101, including expenditures for the administration of the 
     State plan.
       ``(2)(A) The total of payments under paragraph (1) to a 
     State for a fiscal year may not exceed its allotment under 
     subsection (a) of section 110 for such year.
       ``(B) For fiscal year 1994 and each fiscal year thereafter, 
     the amount otherwise payable to a State for a fiscal year 
     under this section shall be reduced by the amount by which 
     expenditures from non-Federal sources under the State plan 
     under this title for the previous fiscal year are less than 
     the total of such expenditures for the second fiscal year 
     preceding the previous fiscal year.
       ``(C) The Commissioner may waive or modify any requirement 
     or limitation under paragraphs (A) and (B) if the 
     Commissioner determines that a waiver or modification is an 
     equitable response to exceptional or uncontrollable 
     circumstances affecting the State.
       ``(b) The method of computing and paying amounts pursuant 
     to subsection (a) shall be as follows:

[[Page S4106]]

       ``(1) The Commissioner shall, prior to the beginning of 
     each calendar quarter or other period prescribed by the 
     Commissioner, estimate the amount to be paid to each State 
     under the provisions of such subsection for such period, such 
     estimate to be based on such records of the State and 
     information furnished by it, and such other investigation as 
     the Commissioner may find necessary.
       ``(2) The Commissioner shall pay, from the allotment 
     available therefor, the amount so estimated by the 
     Commissioner for such period, reduced or increased, as the 
     case may be, by any sum (not previously adjusted under this 
     paragraph) by which the Commissioner finds that the estimate 
     of the amount to be paid the State for any prior period under 
     such subsection was greater or less than the amount which 
     should have been paid to the State for such prior period 
     under such subsection. Such payment shall be made prior to 
     audit or settlement by the General Accounting Office, shall 
     be made through the disbursing facilities of the Treasury 
     Department, and shall be made in such installments as the 
     Commissioner may determine.


                      ``client assistance program

       ``Sec. 112. (a) From funds appropriated under subsection 
     (h), the Secretary shall, in accordance with this section, 
     make grants to States to establish and carry out client 
     assistance programs to provide assistance in informing and 
     advising all clients and client applicants of all available 
     benefits under this Act, and, upon request of such clients or 
     client applicants, to assist and advocate for such clients or 
     applicants in their relationships with projects, programs, 
     and services provided under this Act, including assistance 
     and advocacy in pursuing legal, administrative, or other 
     appropriate remedies to ensure the protection of the rights 
     of such individuals under this Act and to facilitate access 
     to the services funded under this Act through individual and 
     systemic advocacy. The client assistance program shall 
     provide information on the available services and benefits 
     under this Act and title I of the Americans with Disabilities 
     Act of 1990 (42 U.S.C. 12111 et seq.) to individuals with 
     disabilities in the State, especially with regard to 
     individuals with disabilities who have traditionally been 
     unserved or underserved by vocational rehabilitation 
     programs. In providing assistance and advocacy under this 
     subsection with respect to services under this title, a 
     client assistance program may provide the assistance and 
     advocacy with respect to services that are directly related 
     to facilitating the employment of the individual.
       ``(b) No State may receive payments from its allotment 
     under this Act in any fiscal year unless the State has in 
     effect not later than October 1, 1984, a client assistance 
     program which--
       ``(1) has the authority to pursue legal, administrative, 
     and other appropriate remedies to ensure the protection of 
     rights of individuals with disabilities who are receiving 
     treatments, services, or rehabilitation under this Act within 
     the State; and
       ``(2) meets the requirements of designation under 
     subsection (c).
       ``(c)(1)(A) The Governor shall designate a public or 
     private agency to conduct the client assistance program under 
     this section. Except as provided in the last sentence of this 
     subparagraph, the Governor shall designate an agency which is 
     independent of any agency which provides treatment, services, 
     or rehabilitation to individuals under this Act. If there is 
     an agency in the State which has, or had, prior to the date 
     of enactment of the Rehabilitation Amendments of 1984, served 
     as a client assistance agency under this section and which 
     received Federal financial assistance under this Act, the 
     Governor may, in the initial designation, designate an agency 
     which provides treatment, services, or rehabilitation to 
     individuals with disabilities under this Act.
       ``(B)(i) The Governor may not redesignate the agency 
     designated under subparagraph (A) without good cause and 
     unless--
       ``(I) the Governor has given the agency 30 days notice of 
     the intention to make such redesignation, including 
     specification of the good cause for such redesignation and an 
     opportunity to respond to the assertion that good cause has 
     been shown;
       ``(II) individuals with disabilities or the individuals' 
     representatives have timely notice of the redesignation and 
     opportunity for public comment; and
       ``(III) the agency has the opportunity to appeal to the 
     Commissioner on the basis that the redesignation was not for 
     good cause.
       ``(ii) If, after the date of enactment of the 
     Rehabilitation Act Amendments of 1998--
       ``(I) a designated State agency undergoes any change in the 
     organizational structure of the agency that results in the 
     creation of 1 or more new State agencies or departments or 
     results in the merger of the designated State agency with 1 
     or more other State agencies or departments; and
       ``(II) an agency (including an office or other unit) within 
     the designated State agency was conducting a client 
     assistance program before the change under the last sentence 
     of subparagraph (A),

     the Governor shall redesignate the agency conducting the 
     program. In conducting the redesignation, the Governor shall 
     designate to conduct the program an agency that is 
     independent of any agency that provides treatment, services, 
     or rehabilitation to individuals with disabilities under this 
     Act.
       ``(2) In carrying out the provisions of this section, the 
     Governor shall consult with the director of the State 
     vocational rehabilitation agency, the head of the 
     developmental disability protection and advocacy agency, and 
     with representatives of professional and consumer 
     organizations serving individuals with disabilities in the 
     State.
       ``(3) The agency designated under this subsection shall be 
     accountable for the proper use of funds made available to the 
     agency.
       ``(d) The agency designated under subsection (c) of this 
     section may not bring any class action in carrying out its 
     responsibilities under this section.
       ``(e)(1)(A) The Secretary shall allot the sums appropriated 
     for each fiscal year under this section among the States on 
     the basis of relative population of each State, except that 
     no State shall receive less than $50,000.
       ``(B) The Secretary shall allot $30,000 each to American 
     Samoa, Guam, the Virgin Islands, and the Commonwealth of the 
     Northern Mariana Islands.
       ``(C) For the purpose of this paragraph, the term `State' 
     does not include American Samoa, Guam, the Virgin Islands, 
     and the Commonwealth of the Northern Mariana Islands.
       ``(D)(i) In any fiscal year that the funds appropriated for 
     such fiscal year exceed $7,500,000, the minimum allotment 
     shall be $100,000 for States and $45,000 for territories.
       ``(ii) For any fiscal year in which the total amount 
     appropriated under subsection (h) exceeds the total amount 
     appropriated under such subsection for the preceding fiscal 
     year, the Secretary shall increase each of the minimum 
     allotments under clause (i) by a percentage that shall not 
     exceed the percentage increase in the total amount 
     appropriated under such subsection between the preceding 
     fiscal year and the fiscal year involved.
       ``(2) The amount of an allotment to a State for a fiscal 
     year which the Secretary determines will not be required by 
     the State during the period for which it is available for the 
     purpose for which allotted shall be available for reallotment 
     by the Secretary at appropriate times to other States with 
     respect to which such a determination has not been made, in 
     proportion to the original allotments of such States for such 
     fiscal year, but with such proportionate amount for any of 
     such other States being reduced to the extent it exceeds the 
     sum the Secretary estimates such State needs and will be able 
     to use during such period, and the total of such reduction 
     shall be similarly reallotted among the States whose 
     proportionate amounts were not so reduced. Any such amount so 
     reallotted to a State for a fiscal year shall be deemed to be 
     a part of its allotment for such fiscal year.
       ``(3) Except as specifically prohibited by or as otherwise 
     provided in State law, the Secretary shall pay to the agency 
     designated under subsection (c) the amount specified in the 
     application approved under subsection (f).
       ``(f) No grant may be made under this section unless the 
     State submits an application to the Secretary at such time, 
     in such manner, and containing or accompanied by such 
     information as the Secretary deems necessary to meet the 
     requirements of this section.
       ``(g) The Secretary shall prescribe regulations applicable 
     to the client assistance program which shall include the 
     following requirements:
       ``(1) No employees of such programs shall, while so 
     employed, serve as staff or consultants of any rehabilitation 
     project, program, or facility receiving assistance under this 
     Act in the State.
       ``(2) Each program shall be afforded reasonable access to 
     policymaking and administrative personnel in the State and 
     local rehabilitation programs, projects, or facilities.
       ``(3)(A) Each program shall contain provisions designed to 
     assure that to the maximum extent possible alternative means 
     of dispute resolution are available for use at the discretion 
     of an applicant or client of the program prior to resorting 
     to litigation or formal adjudication to resolve a dispute 
     arising under this section.
       ``(B) In subparagraph (A), the term `alternative means of 
     dispute resolution' means any procedure, including good faith 
     negotiation, conciliation, facilitation, mediation, 
     factfinding, and arbitration, and any combination of 
     procedures, that is used in lieu of litigation in a court or 
     formal adjudication in an administrative forum, to resolve a 
     dispute arising under this section.
       ``(4) For purposes of any periodic audit, report, or 
     evaluation of the performance of a client assistance program 
     under this section, the Secretary shall not require such a 
     program to disclose the identity of, or any other personally 
     identifiable information related to, any individual 
     requesting assistance under such program.
       ``(h) There are authorized to be appropriated such sums as 
     may be necessary for fiscal years 1998 through 2004 to carry 
     out the provisions of this section.

      ``Part C--American Indian Vocational Rehabilitation Services


              ``vocational rehabilitation services grants

       ``Sec. 121. (a) The Commissioner, in accordance with the 
     provisions of this part, may make grants to the governing 
     bodies of Indian tribes located on Federal and State 
     reservations (and consortia of such governing bodies) to pay 
     90 percent of the costs of vocational rehabilitation services 
     for American Indians who are individuals with disabilities 
     residing on such reservations. The non-Federal share of such 
     costs may be in cash or in

[[Page S4107]]

     kind, fairly valued, and the Commissioner may waive such non-
     Federal share requirement in order to carry out the purposes 
     of this Act.
       ``(b)(1) No grant may be made under this part for any 
     fiscal year unless an application therefor has been submitted 
     to and approved by the Commissioner. The Commissioner may not 
     approve an application unless the application--
       ``(A) is made at such time, in such manner, and contains 
     such information as the Commissioner may require;
       ``(B) contains assurances that the rehabilitation services 
     provided under this part to American Indians who are 
     individuals with disabilities residing on a reservation in a 
     State shall be, to the maximum extent feasible, comparable to 
     rehabilitation services provided under this title to other 
     individuals with disabilities residing in the State and that, 
     where appropriate, may include services traditionally used by 
     Indian tribes; and
       ``(C) contains assurances that the application was 
     developed in consultation with the designated State unit of 
     the State.
       ``(2) The provisions of sections 5, 6, 7, and 102(a) of the 
     Indian Self-Determination and Education Assistance Act shall 
     be applicable to any application submitted under this part. 
     For purposes of this paragraph, any reference in any such 
     provision to the Secretary of Education or to the Secretary 
     of the Interior shall be considered to be a reference to the 
     Commissioner.
       ``(3) Any application approved under this part shall be 
     effective for not more than 60 months, except as determined 
     otherwise by the Commissioner pursuant to prescribed 
     regulations. The State shall continue to provide vocational 
     rehabilitation services under its State plan to American 
     Indians residing on a reservation whenever such State 
     includes any such American Indians in its State population 
     under section 110(a)(1).
       ``(4) In making grants under this part, the Secretary shall 
     give priority consideration to applications for the 
     continuation of programs which have been funded under this 
     part.
       ``(5) Nothing in this section may be construed to authorize 
     a separate service delivery system for Indian residents of a 
     State who reside in non-reservation areas.
       ``(c) The term `reservation' includes Indian reservations, 
     public domain Indian allotments, former Indian reservations 
     in Oklahoma, and land held by incorporated Native groups, 
     regional corporations, and village corporations under the 
     provisions of the Alaska Native Claims Settlement Act.

    ``Part D--Vocational Rehabilitation Services Client Information

     ``SEC. 131. DATA SHARING.

       ``(a) In General.--
       ``(1) Memorandum of understanding.--The Secretary of 
     Education and the Secretary of Health and Human Services 
     shall enter into a memorandum of understanding for the 
     purposes of exchanging data of mutual importance--
       ``(A) that concern clients of designated State agencies; 
     and
       ``(B) that are data maintained either by--
       ``(i) the Rehabilitation Services Administration, as 
     required by section 13; or
       ``(ii) the Social Security Administration, from its Summary 
     Earnings and Records and Master Beneficiary Records.
       ``(2) Labor market information.--The Secretary of Labor 
     shall provide the Commissioner with labor market information 
     that facilitates evaluation by the Commissioner of the 
     program carried out under part B, and allows the Commissioner 
     to compare the progress of individuals with disabilities who 
     are assisted under the program in securing, retaining, 
     regaining, and advancing in employment with the progress made 
     by individuals who are assisted under title III of the 
     Workforce Investment Partnership Act of 1998.
       ``(b) Treatment of Information.--For purposes of the 
     exchange described in subsection (a)(1), the data described 
     in subsection (a)(1)(B)(ii) shall not be considered return 
     information (as defined in section 6103(b)(2) of the Internal 
     Revenue Code of 1986) and, as appropriate, the 
     confidentiality of all client information shall be maintained 
     by the Rehabilitation Services Administration and the Social 
     Security Administration.''.

     SEC. 605. RESEARCH AND TRAINING.

       Title II of the Rehabilitation Act of 1973 (29 U.S.C. 760 
     et seq.) is amended to read as follows:

                   ``TITLE II--RESEARCH AND TRAINING


                        ``declaration of purpose

       ``Sec. 200. The purpose of this title is to--
       ``(1) provide for research, demonstration projects, 
     training, and related activities to maximize the full 
     inclusion and integration into society, employment, 
     independent living, family support, and economic and social 
     self-sufficiency of individuals with disabilities of all 
     ages, with particular emphasis on improving the effectiveness 
     of services authorized under this Act;
       ``(2) provide for a comprehensive and coordinated approach 
     to the support and conduct of such research, demonstration 
     projects, training, and related activities and to ensure that 
     the approach is in accordance with the 5-year plan developed 
     under section 202(h);
       ``(3) promote the transfer of rehabilitation technology to 
     individuals with disabilities through research and 
     demonstration projects relating to--
       ``(A) the procurement process for the purchase of 
     rehabilitation technology;
       ``(B) the utilization of rehabilitation technology on a 
     national basis;
       ``(C) specific adaptations or customizations of products to 
     enable individuals with disabilities to live more 
     independently; and
       ``(D) the development or transfer of assistive technology;
       ``(4) ensure the widespread distribution, in usable 
     formats, of practical scientific and technological 
     information--
       ``(A) generated by research, demonstration projects, 
     training, and related activities; and
       ``(B) regarding state-of-the-art practices, improvements in 
     the services authorized under this Act, rehabilitation 
     technology, and new knowledge regarding disabilities,
     to rehabilitation professionals, individuals with 
     disabilities, and other interested parties, including the 
     general public;
       ``(5) identify effective strategies that enhance the 
     opportunities of individuals with disabilities to engage in 
     employment, including employment involving telecommuting and 
     self-employment; and
       ``(6) increase opportunities for researchers who are 
     members of traditionally underserved populations, including 
     researchers who are members of minority groups and 
     researchers who are individuals with disabilities.


                   ``authorization of appropriations

       ``Sec. 201. (a) There are authorized to be appropriated--
       ``(1) for the purpose of providing for the expenses of the 
     National Institute on Disability and Rehabilitation Research 
     under section 202, which shall include the expenses of the 
     Rehabilitation Research Advisory Council under section 205, 
     and shall not include the expenses of such Institute to carry 
     out section 204, such sums as may be necessary for each of 
     fiscal years 1998 through 2004; and
       ``(2) to carry out section 204, such sums as may be 
     necessary for each of fiscal years 1998 through 2004.
       ``(b) Funds appropriated under this title shall remain 
     available until expended.


     ``national institute on disability and rehabilitation research

       ``Sec. 202. (a)(1) There is established within the 
     Department of Education a National Institute on Disability 
     and Rehabilitation Research (hereinafter in this title 
     referred to as the `Institute'), which shall be headed by a 
     Director (hereinafter in this title referred to as the 
     `Director'), in order to--
       ``(A) promote, coordinate, and provide for--
       ``(i) research;
       ``(ii) demonstration projects and training; and
       ``(iii) related activities,

     with respect to individuals with disabilities;
       ``(B) more effectively carry out activities through the 
     programs under section 204 and activities under this section;
       ``(C) widely disseminate information from the activities 
     described in subparagraphs (A) and (B); and
       ``(D) provide leadership in advancing the quality of life 
     of individuals with disabilities.
       ``(2) In the performance of the functions of the office, 
     the Director shall be directly responsible to the Secretary 
     or to the same Under Secretary or Assistant Secretary of the 
     Department of Education to whom the Commissioner is 
     responsible under section 3(a).
       ``(b) The Director, through the Institute, shall be 
     responsible for--
       ``(1) administering the programs described in section 204 
     and activities under this section;
       ``(2) widely disseminating findings, conclusions, and 
     recommendations, resulting from research, demonstration 
     projects, training, and related activities (referred to in 
     this title as `covered activities') funded by the Institute, 
     to--
       ``(A) other Federal, State, tribal, and local public 
     agencies;
       ``(B) private organizations engaged in research relating to 
     rehabilitation or providing rehabilitation services;
       ``(C) rehabilitation practitioners; and
       ``(D) individuals with disabilities and the individuals' 
     representatives;
       ``(3) coordinating, through the Interagency Committee 
     established by section 203 of this Act, all Federal programs 
     and policies relating to research in rehabilitation;
       ``(4) widely disseminating educational materials and 
     research results, concerning ways to maximize the full 
     inclusion and integration into society, employment, 
     independent living, family support, and economic and social 
     self-sufficiency of individuals with disabilities, to--
       ``(A) public and private entities, including--
       ``(i) elementary and secondary schools (as defined in 
     section 14101 of the Elementary and Secondary Education Act 
     of 1965; and
       ``(ii) institutions of higher education;
       ``(B) rehabilitation practitioners;
       ``(C) individuals with disabilities (especially such 
     individuals who are members of minority groups or of 
     populations that are unserved or underserved by programs 
     under this Act); and
       ``(D) the individuals' representatives for the individuals 
     described in subparagraph (C);
       ``(5)(A) conducting an education program to inform the 
     public about ways of providing for the rehabilitation of 
     individuals with disabilities, including information relating 
     to--
       ``(i) family care;
       ``(ii) self-care; and

[[Page S4108]]

       ``(iii) assistive technology devices and assistive 
     technology services; and
       ``(B) as part of the program, disseminating engineering 
     information about assistive technology devices;
       ``(6) conducting conferences, seminars, and workshops 
     (including in-service training programs and programs for 
     individuals with disabilities) concerning advances in 
     rehabilitation research and rehabilitation technology 
     (including advances concerning the selection and use of 
     assistive technology devices and assistive technology 
     services), pertinent to the full inclusion and integration 
     into society, employment, independent living, family support, 
     and economic and social self-sufficiency of individuals with 
     disabilities;
       ``(7) taking whatever action is necessary to keep the 
     Congress fully and currently informed with respect to the 
     implementation and conduct of programs and activities carried 
     out under this title, including dissemination activities;
       ``(8) producing, in conjunction with the Department of 
     Labor, the National Center for Health Statistics, the Bureau 
     of the Census, the Health Care Financing Administration, the 
     Social Security Administration, the Bureau of Indian Affairs, 
     the Indian Health Service, and other Federal departments and 
     agencies, as may be appropriate, statistical reports and 
     studies on the employment, health, income, and other 
     demographic characteristics of individuals with disabilities, 
     including information on individuals with disabilities who 
     live in rural or inner-city settings, with particular 
     attention given to underserved populations, and widely 
     disseminating such reports and studies to rehabilitation 
     professionals, individuals with disabilities, the 
     individuals' representatives, and others to assist in the 
     planning, assessment, and evaluation of vocational and other 
     rehabilitation services for individuals with disabilities;
       ``(9) conducting research on consumer satisfaction with 
     vocational rehabilitation services for the purpose of 
     identifying effective rehabilitation programs and policies 
     that promote the independence of individuals with 
     disabilities and achievement of long-term vocational goals;
       ``(10) conducting research to examine the relationship 
     between the provision of specific services and successful, 
     sustained employment outcomes, including employment outcomes 
     involving self-employment; and
       ``(11) coordinating activities with the Attorney General 
     regarding the provision of information, training, or 
     technical assistance regarding the Americans with 
     Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) to ensure 
     consistency with the plan for technical assistance required 
     under section 506 of such Act (42 U.S.C. 12206).
       ``(c)(1) The Director, acting through the Institute or 1 or 
     more entities funded by the Institute, shall provide for the 
     development and dissemination of models to address consumer-
     driven information needs related to assistive technology 
     devices and assistive technology services.
       ``(2) The development and dissemination of models may 
     include--
       ``(A) convening groups of individuals with disabilities, 
     family members and advocates of such individuals, commercial 
     producers of assistive technology, and entities funded by the 
     Institute to develop, assess, and disseminate knowledge about 
     information needs related to assistive technology;
       ``(B) identifying the types of information regarding 
     assistive technology devices and assistive technology 
     services that individuals with disabilities find especially 
     useful;
       ``(C) evaluating current models, and developing new models, 
     for transmitting the information described in subparagraph 
     (B) to consumers and to commercial producers of assistive 
     technology; and
       ``(D) disseminating through 1 or more entities funded by 
     the Institute, the models described in subparagraph (C) and 
     findings regarding the information described in subparagraph 
     (B) to consumers and commercial producers of assistive 
     technology.
       ``(d)(1) The Director of the Institute shall be appointed 
     by the Secretary. The Director shall be an individual with 
     substantial experience in rehabilitation and in research 
     administration. The Director shall be compensated at the rate 
     payable for level V of the Executive Schedule under section 
     5316 of title 5, United States Code. The Director shall not 
     delegate any of his functions to any officer who is not 
     directly responsible to the Director.
       ``(2) There shall be a Deputy Director of the Institute 
     (referred to in this section as the `Deputy Director') who 
     shall be appointed by the Secretary. The Deputy Director 
     shall be an individual with substantial experience in 
     rehabilitation and in research administration. The Deputy 
     Director shall be compensated at the rate of pay for level 4 
     of the Senior Executive Service Schedule under section 5382 
     of title 5, United States Code, and shall act for the 
     Director during the absence of the Director or the inability 
     of the Director to perform the essential functions of the 
     job, exercising such powers as the Director may prescribe. In 
     the case of any vacancy in the office of the Director, the 
     Deputy Director shall serve as Director until a Director is 
     appointed under paragraph (1). The position created by this 
     paragraph shall be a Senior Executive Service position, as 
     defined in section 3132 of title 5, United States Code.
       ``(3) The Director, subject to the approval of the 
     President, may appoint, for terms not to exceed three years, 
     without regard to the provisions of title 5, United States 
     Code, governing appointment in the competitive service, and 
     may compensate, without regard to the provisions of chapter 
     51 and subchapter III of chapter 53 of such title relating to 
     classification and General Schedule pay rates, such technical 
     and professional employees of the Institute as the Director 
     determines to be necessary to accomplish the functions of the 
     Institute and also appoint and compensate without regard to 
     such provisions, in a number not to exceed one-fifth of the 
     number of full-time, regular technical and professional 
     employees of the Institute.
       ``(4) The Director may obtain the services of consultants, 
     without regard to the provisions of title 5, United States 
     Code, governing appointments in the competitive service.
       ``(e) The Director, pursuant to regulations which the 
     Secretary shall prescribe, may establish and maintain 
     fellowships with such stipends and allowances, including 
     travel and subsistence expenses provided for under title 5, 
     United States Code, as the Director considers necessary to 
     procure the assistance of highly qualified research fellows, 
     including individuals with disabilities, from the United 
     States and foreign countries.
       ``(f)(1) The Director shall, pursuant to regulations that 
     the Secretary shall prescribe, provide for scientific peer 
     review of all applications for financial assistance for 
     research, training, and demonstration projects over which the 
     Director has authority. The Director shall provide for the 
     review by utilizing, to the maximum extent possible, 
     appropriate peer review panels established within the 
     Institute. The panels shall be standing panels if the grant 
     period involved or the duration of the program involved is 
     not more than 3 years. The panels shall be composed of 
     individuals who are not Federal employees, who are scientists 
     or other experts in the rehabilitation field (including the 
     independent living field), including knowledgeable 
     individuals with disabilities, and the individuals' 
     representatives, and who are competent to review applications 
     for the financial assistance.
       ``(2) The Federal Advisory Committee Act (5 U.S.C. App.) 
     shall not apply to the panels.
       ``(3) The Director shall solicit nominations for such 
     panels from the public and shall publish the names of the 
     individuals selected. Individuals comprising each panel shall 
     be selected from a pool of qualified individuals to 
     facilitate knowledgeable, cost-effective review.
       ``(4) In providing for such scientific peer review, the 
     Secretary shall provide for training, as necessary and 
     appropriate, to facilitate the effective participation of 
     those individuals selected to participate in such review.
       ``(g) Not less than 90 percent of the funds appropriated 
     under this title for any fiscal year shall be expended by the 
     Director to carry out activities under this title through 
     grants, contracts, or cooperative agreements. Up to 10 
     percent of the funds appropriated under this title for any 
     fiscal year may be expended directly for the purpose of 
     carrying out the functions of the Director under this 
     section.
       ``(h)(1) The Director shall--
       ``(A) by October 1, 1998 and every fifth October 1 
     thereafter, prepare and publish in the Federal Register for 
     public comment a draft of a 5-year plan that outlines 
     priorities for rehabilitation research, demonstration 
     projects, training, and related activities and explains the 
     basis for such priorities;
       ``(B) by June 1, 1999, and every fifth June 1 thereafter, 
     after considering public comments, submit the plan in final 
     form to the appropriate committees of Congress;
       ``(C) at appropriate intervals, prepare and submit 
     revisions in the plan to the appropriate committees of 
     Congress; and
       ``(D) annually prepare and submit progress reports on the 
     plan to the appropriate committees of Congress.
       ``(2) Such plan shall--
       ``(A) identify any covered activity that should be 
     conducted under this section and section 204 respecting the 
     full inclusion and integration into society of individuals 
     with disabilities, especially in the area of employment;
       ``(B) determine the funding priorities for covered 
     activities to be conducted under this section and section 
     204;
       ``(C) specify appropriate goals and timetables for covered 
     activities to be conducted under this section and section 
     204;
       ``(D) be developed by the Director--
       ``(i) after consultation with the Rehabilitation Research 
     Advisory Council established under section 205;
       ``(ii) in coordination with the Commissioner;
       ``(iii) after consultation with the National Council on 
     Disability established under title IV, the Secretary of 
     Education, officials responsible for the administration of 
     the Developmental Disabilities Assistance and Bill of Rights 
     Act (42 U.S.C. 6000 et seq.), and the Interagency Committee 
     on Disability Research established under section 203; and
       ``(iv) after full consideration of the input of individuals 
     with disabilities and the individuals' representatives, 
     organizations representing individuals with disabilities, 
     providers of services furnished under this Act, researchers 
     in the rehabilitation field, and any other persons or 
     entities the Director considers to be appropriate;
       ``(E) specify plans for widespread dissemination of the 
     results of covered activities, in accessible formats, to 
     rehabilitation practitioners, individuals with disabilities, 
     and the individuals' representatives; and

[[Page S4109]]

       ``(F) specify plans for widespread dissemination of the 
     results of covered activities that concern individuals with 
     disabilities who are members of minority groups or of 
     populations that are unserved or underserved by programs 
     carried out under this Act.
       ``(i) In order to promote cooperation among Federal 
     departments and agencies conducting research programs, the 
     Director shall consult with the administrators of such 
     programs, and with the Interagency Committee established by 
     section 203, regarding the design of research projects 
     conducted by such entities and the results and applications 
     of such research.
       ``(j)(1) The Director shall take appropriate actions to 
     provide for a comprehensive and coordinated research program 
     under this title. In providing such a program, the Director 
     may undertake joint activities with other Federal entities 
     engaged in research and with appropriate private entities. 
     Any Federal entity proposing to establish any research 
     project related to the purposes of this Act shall consult, 
     through the Interagency Committee established by section 203, 
     with the Director as Chairperson of such Committee and 
     provide the Director with sufficient prior opportunity to 
     comment on such project.
       ``(2) Any person responsible for administering any program 
     of the National Institutes of Health, the Department of 
     Veterans Affairs, the National Science Foundation, the 
     National Aeronautics and Space Administration, the Office of 
     Special Education and Rehabilitative Services, or of any 
     other Federal entity, shall, through the Interagency 
     Committee established by section 203, consult and cooperate 
     with the Director in carrying out such program if the program 
     is related to the purposes of this title.
       ``(k) The Director shall make grants to institutions of 
     higher education for the training of rehabilitation 
     researchers, including individuals with disabilities, with 
     particular attention to research areas that support the 
     implementation and objectives of this Act and that improve 
     the effectiveness of services authorized under this Act.


                        ``interagency committee

       ``Sec. 203. (a)(1) In order to promote coordination and 
     cooperation among Federal departments and agencies conducting 
     rehabilitation research programs, there is established within 
     the Federal Government an Interagency Committee on Disability 
     Research (hereinafter in this section referred to as the 
     `Committee'), chaired by the Director and comprised of such 
     members as the President may designate, including the 
     following (or their designees): the Director, the 
     Commissioner of the Rehabilitation Services Administration, 
     the Assistant Secretary for Special Education and 
     Rehabilitative Services, the Secretary of Education, the 
     Secretary of Veterans Affairs, the Director of the National 
     Institutes of Health, the Director of the National Institute 
     of Mental Health, the Administrator of the National 
     Aeronautics and Space Administration, the Secretary of 
     Transportation, the Assistant Secretary of the Interior for 
     Indian Affairs, the Director of the Indian Health Service, 
     and the Director of the National Science Foundation.
       ``(2) The Committee shall meet not less than four times 
     each year.
       ``(b) After receiving input from individuals with 
     disabilities and the individuals' representatives, the 
     Committee shall identify, assess, and seek to coordinate all 
     Federal programs, activities, and projects, and plans for 
     such programs, activities, and projects with respect to the 
     conduct of research related to rehabilitation of individuals 
     with disabilities.
       ``(c) The Committee shall annually submit to the President 
     and to the appropriate committees of the Congress a report 
     making such recommendations as the Committee deems 
     appropriate with respect to coordination of policy and 
     development of objectives and priorities for all Federal 
     programs relating to the conduct of research related to 
     rehabilitation of individuals with disabilities.


                ``research and other covered activities

       ``Sec. 204. (a)(1) To the extent consistent with priorities 
     established in the 5-year plan described in section 202(h), 
     the Director may make grants to and contracts with States and 
     public or private agencies and organizations, including 
     institutions of higher education, Indian tribes, and tribal 
     organizations, to pay part of the cost of projects for the 
     purpose of planning and conducting research, demonstration 
     projects, training, and related activities, the purposes of 
     which are to develop methods, procedures, and rehabilitation 
     technology, that maximize the full inclusion and integration 
     into society, employment, independent living, family support, 
     and economic and social self-sufficiency of individuals with 
     disabilities, especially individuals with the most 
     significant disabilities, and improve the effectiveness of 
     services authorized under this Act.
       ``(2)(A) In carrying out this section, the Director shall 
     emphasize projects that support the implementation of titles 
     I, III, V, VI, and VII, including projects addressing the 
     needs described in the State plans submitted under section 
     101 or 704 by State agencies.
       ``(B) Such projects, as described in the State plans 
     submitted by State agencies, may include--
       ``(i) medical and other scientific, technical, 
     methodological, and other investigations into the nature of 
     disability, methods of analyzing it, and restorative 
     techniques, including basic research where related to 
     rehabilitation techniques or services;
       ``(ii) studies and analysis of industrial, vocational, 
     social, recreational, psychiatric, psychological, economic, 
     and other factors affecting rehabilitation of individuals 
     with disabilities;
       ``(iii) studies and analysis of special problems of 
     individuals who are homebound and individuals who are 
     institutionalized;
       ``(iv) studies, analyses, and demonstrations of 
     architectural and engineering design adapted to meet the 
     special needs of individuals with disabilities;
       ``(v) studies, analyses, and other activities related to 
     supported employment;
       ``(vi) related activities which hold promise of increasing 
     knowledge and improving methods in the rehabilitation of 
     individuals with disabilities and individuals with the most 
     significant disabilities, particularly individuals with 
     disabilities, and individuals with the most significant 
     disabilities, who are members of populations that are 
     unserved or underserved by programs under this Act; and
       ``(vii) studies, analyses, and other activities related to 
     job accommodations, including the use of rehabilitation 
     engineering and assistive technology.
       ``(b)(1) In addition to carrying out projects under 
     subsection (a), the Director may make grants under this 
     subsection (referred to in this subsection as `research 
     grants') to pay part or all of the cost of the research or 
     other specialized covered activities described in paragraphs 
     (2) through (18). A research grant made under any of 
     paragraphs (2) through (18) may only be used in a manner 
     consistent with priorities established in the 5-year plan 
     described in section 202(h).
       ``(2)(A) Research grants may be used for the establishment 
     and support of Rehabilitation Research and Training Centers, 
     for the purpose of providing an integrated program of 
     research, which Centers shall--
       ``(i) be operated in collaboration with institutions of 
     higher education or providers of rehabilitation services or 
     other appropriate services; and
       ``(ii) serve as centers of national excellence and national 
     or regional resources for providers and individuals with 
     disabilities and the individuals' representatives.
       ``(B) The Centers shall conduct research and training 
     activities by--
       ``(i) conducting coordinated and advanced programs of 
     research in rehabilitation targeted toward the production of 
     new knowledge that will improve rehabilitation methodology 
     and service delivery systems, alleviate or stabilize 
     disabling conditions, and promote maximum social and economic 
     independence of individuals with disabilities, especially 
     promoting the ability of the individuals to prepare for, 
     secure, retain, regain, or advance in employment;
       ``(ii) providing training (including graduate, pre-service, 
     and in-service training) to assist individuals to more 
     effectively provide rehabilitation services;
       ``(iii) providing training (including graduate, pre-
     service, and in-service training) for rehabilitation research 
     personnel and other rehabilitation personnel; and
       ``(iv) serving as an informational and technical assistance 
     resource to providers, individuals with disabilities, and the 
     individuals' representatives, through conferences, workshops, 
     public education programs, in-service training programs, and 
     similar activities.
       ``(C) The research to be carried out at each such Center 
     may include--
       ``(i) basic or applied medical rehabilitation research;
       ``(ii) research regarding the psychological and social 
     aspects of rehabilitation, including disability policy;
       ``(iii) research related to vocational rehabilitation;
       ``(iv) continuation of research that promotes the 
     emotional, social, educational, and functional growth of 
     children who are individuals with disabilities;
       ``(v) continuation of research to develop and evaluate 
     interventions, policies, and services that support families 
     of those children and adults who are individuals with 
     disabilities; and
       ``(vi) continuation of research that will improve services 
     and policies that foster the productivity, independence, and 
     social integration of individuals with disabilities, and 
     enable individuals with disabilities, including individuals 
     with mental retardation and other developmental disabilities, 
     to live in their communities.
       ``(D) Training of students preparing to be rehabilitation 
     personnel shall be an important priority for such a Center.
       ``(E) The Director shall make grants under this paragraph 
     to establish and support both comprehensive centers dealing 
     with multiple disabilities and centers primarily focused on 
     particular disabilities.
       ``(F) Grants made under this paragraph may be used to 
     provide funds for services rendered by such a Center to 
     individuals with disabilities in connection with the research 
     and training activities.
       ``(G) Grants made under this paragraph may be used to 
     provide faculty support for teaching--
       ``(i) rehabilitation-related courses of study for credit; 
     and
       ``(ii) other courses offered by the Centers, either 
     directly or through another entity.
       ``(H) The research and training activities conducted by 
     such a Center shall be conducted in a manner that is 
     accessible to and usable by individuals with disabilities.

[[Page S4110]]

       ``(I) The Director shall encourage the Centers to develop 
     practical applications for the findings of the research of 
     the Centers.
       ``(J) In awarding grants under this paragraph, the Director 
     shall take into consideration the location of any proposed 
     Center and the appropriate geographic and regional allocation 
     of such Centers.
       ``(K) To be eligible to receive a grant under this 
     paragraph, each such institution or provider described in 
     subparagraph (A) shall--
       ``(i) be of sufficient size, scope, and quality to 
     effectively carry out the activities in an efficient manner 
     consistent with appropriate State and Federal law; and
       ``(ii) demonstrate the ability to carry out the training 
     activities either directly or through another entity that can 
     provide such training.
       ``(L) The Director shall make grants under this paragraph 
     for periods of 5 years, except that the Director may make a 
     grant for a period of less than 5 years if--
       ``(i) the grant is made to a new recipient; or
       ``(ii) the grant supports new or innovative research.
       ``(M) Grants made under this paragraph shall be made on a 
     competitive basis. To be eligible to receive a grant under 
     this paragraph, a prospective grant recipient shall submit an 
     application to the Director at such time, in such manner, and 
     containing such information as the Director may require.
       ``(N) In conducting scientific peer review under section 
     202(f) of an application for the renewal of a grant made 
     under this paragraph, the peer review panel shall take into 
     account the past performance of the applicant in carrying out 
     the grant and input from individuals with disabilities and 
     the individuals' representatives.
       ``(O) An institution or provider that receives a grant 
     under this paragraph to establish such a Center may not 
     collect more than 15 percent of the amount of the grant 
     received by the Center in indirect cost charges.
       ``(3)(A) Research grants may be used for the establishment 
     and support of Rehabilitation Engineering Research Centers, 
     operated by or in collaboration with institutions of higher 
     education or nonprofit organizations, to conduct research or 
     demonstration activities, and training activities, regarding 
     rehabilitation technology, including rehabilitation 
     engineering, assistive technology devices, and assistive 
     technology services, for the purposes of enhancing 
     opportunities for better meeting the needs of, and addressing 
     the barriers confronted by, individuals with disabilities in 
     all aspects of their lives.
       ``(B) In order to carry out the purposes set forth in 
     subparagraph (A), such a Center shall carry out the research 
     or demonstration activities by--
       ``(i) developing and disseminating innovative methods of 
     applying advanced technology, scientific achievement, and 
     psychological and social knowledge to--
       ``(I) solve rehabilitation problems and remove 
     environmental barriers through planning and conducting 
     research, including cooperative research with public or 
     private agencies and organizations, designed to produce new 
     scientific knowledge, and new or improved methods, equipment, 
     and devices; and
       ``(II) study new or emerging technologies, products, or 
     environments, and the effectiveness and benefits of such 
     technologies, products, or environments;
       ``(ii) demonstrating and disseminating--
       ``(I) innovative models for the delivery, to rural and 
     urban areas, of cost-effective rehabilitation technology 
     services that promote utilization of assistive technology 
     devices; and
       ``(II) other scientific research to assist in meeting the 
     employment and independent living needs of individuals with 
     significant disabilities; or
       ``(iii) conducting research or demonstration activities 
     that facilitate service delivery systems change by 
     demonstrating, evaluating, documenting, and disseminating--
       ``(I) consumer responsive and individual and family-
     centered innovative models for the delivery to both rural and 
     urban areas, of innovative cost-effective rehabilitation 
     technology services that promote utilization of 
     rehabilitation technology; and
       ``(II) other scientific research to assist in meeting the 
     employment and independent living needs of, and addressing 
     the barriers confronted by, individuals with disabilities, 
     including individuals with significant disabilities.
       ``(C) To the extent consistent with the nature and type of 
     research or demonstration activities described in 
     subparagraph (B), each Center established or supported 
     through a grant made available under this paragraph shall--
       ``(i) cooperate with programs established under the 
     Technology-Related Assistance for Individuals With 
     Disabilities Act of 1988 (29 U.S.C. 2201 et seq.) and other 
     regional and local programs to provide information to 
     individuals with disabilities and the individuals' 
     representatives to--
       ``(I) increase awareness and understanding of how 
     rehabilitation technology can address their needs; and
       ``(II) increase awareness and understanding of the range of 
     options, programs, services, and resources available, 
     including financing options for the technology and services 
     covered by the area of focus of the Center;
       ``(ii) provide training opportunities to individuals, 
     including individuals with disabilities, to become 
     researchers of rehabilitation technology and practitioners of 
     rehabilitation technology in conjunction with institutions of 
     higher education and nonprofit organizations; and
       ``(iii) respond, through research or demonstration 
     activities, to the needs of individuals with all types of 
     disabilities who may benefit from the application of 
     technology within the area of focus of the Center.
       ``(D)(i) In establishing Centers to conduct the research or 
     demonstration activities described in subparagraph (B)(iii), 
     the Director may establish one Center in each of the 
     following areas of focus:
       ``(I) Early childhood services, including early 
     intervention and family support.
       ``(II) Education at the elementary and secondary levels, 
     including transition from school to postschool activities.
       ``(III) Employment, including supported employment, and 
     reasonable accommodations and the reduction of environmental 
     barriers as required by the Americans with Disabilities Act 
     of 1990 (42 U.S.C. 12101 et seq.) and title V.
       ``(IV) Independent living, including transition from 
     institutional to community living, maintenance of community 
     living on leaving the work force, self-help skills, and 
     activities of daily living.
       ``(ii) Each Center conducting the research or demonstration 
     activities described in subparagraph (B)(iii) shall have an 
     advisory committee, of which the majority of members are 
     individuals with disabilities who are users of rehabilitation 
     technology, and the individuals' representatives.
       ``(E) Grants made under this paragraph shall be made on a 
     competitive basis and shall be for a period of 5 years, 
     except that the Director may make a grant for a period of 
     less than 5 years if--
       ``(i) the grant is made to a new recipient; or
       ``(ii) the grant supports new or innovative research.
       ``(F) To be eligible to receive a grant under this 
     paragraph, a prospective grant recipient shall submit an 
     application to the Director at such time, in such manner, and 
     containing such information as the Director may require.
       ``(G) Each Center established or supported through a grant 
     made available under this paragraph shall--
       ``(i) cooperate with State agencies and other local, State, 
     regional, and national programs and organizations developing 
     or delivering rehabilitation technology, including State 
     programs funded under the Technology-Related Assistance for 
     Individuals With Disabilities Act of 1988 (29 U.S.C. 2201 et 
     seq.); and
       ``(ii) prepare and submit to the Director as part of an 
     application for continuation of a grant, or as a final 
     report, a report that documents the outcomes of the program 
     of the Center in terms of both short- and long-term impact on 
     the lives of individuals with disabilities, and such other 
     information as may be requested by the Director.
       ``(4)(A) Research grants may be used to conduct a program 
     for spinal cord injury research, including conducting such a 
     program by making grants to public or private agencies and 
     organizations to pay part or all of the costs of special 
     projects and demonstration projects for spinal cord injuries, 
     that will--
       ``(i) ensure widespread dissemination of research findings 
     among all Spinal Cord Injury Centers, to rehabilitation 
     practitioners, individuals with spinal cord injury, the 
     individuals' representatives, and organizations receiving 
     financial assistance under this paragraph;
       ``(ii) provide encouragement and support for initiatives 
     and new approaches by individual and institutional 
     investigators; and
       ``(iii) establish and maintain close working relationships 
     with other governmental and voluntary institutions and 
     organizations engaged in similar efforts in order to unify 
     and coordinate scientific efforts, encourage joint planning, 
     and promote the interchange of data and reports among spinal 
     cord injury investigations.
       ``(B) Any agency or organization carrying out a project or 
     demonstration project assisted by a grant under this 
     paragraph that provides services to individuals with spinal 
     cord injuries shall--
       ``(i) establish, on an appropriate regional basis, a 
     multidisciplinary system of providing vocational and other 
     rehabilitation services, specifically designed to meet the 
     special needs of individuals with spinal cord injuries, 
     including acute care as well as periodic inpatient or 
     outpatient followup and services;
       ``(ii) demonstrate and evaluate the benefits to individuals 
     with spinal cord injuries served in, and the degree of cost-
     effectiveness of, such a regional system;
       ``(iii) demonstrate and evaluate existing, new, and 
     improved methods and rehabilitation technology essential to 
     the care, management, and rehabilitation of individuals with 
     spinal cord injuries; and
       ``(iv) demonstrate and evaluate methods of community 
     outreach for individuals with spinal cord injuries and 
     community education in connection with the problems of such 
     individuals in areas such as housing, transportation, 
     recreation, employment, and community activities.
       ``(C) In awarding grants under this paragraph, the Director 
     shall take into account the location of any proposed Spinal 
     Cord Injury Center and the appropriate geographic and 
     regional allocation of such Centers.
       ``(5) Research grants may be used to conduct a program for 
     end-stage renal disease

[[Page S4111]]

     research, to include support of projects and demonstrations 
     for providing special services (including transplantation and 
     dialysis), artificial kidneys, and supplies necessary for the 
     rehabilitation of individuals with such disease and which 
     will--
       ``(A) ensure dissemination of research findings;
       ``(B) provide encouragement and support for initiatives and 
     new approaches by individuals and institutional 
     investigators; and
       ``(C) establish and maintain close working relationships 
     with other governmental and voluntary institutions and 
     organizations engaged in similar efforts,
     in order to unify and coordinate scientific efforts, 
     encourage joint planning, and promote the interchange of data 
     and reports among investigators in the field of end-stage 
     renal disease. No person shall be selected to participate in 
     such program who is eligible for services for such disease 
     under any other provision of law.
       ``(6) Research grants may be used to conduct a program for 
     international rehabilitation research, demonstration, and 
     training for the purpose of developing new knowledge and 
     methods in the rehabilitation of individuals with 
     disabilities in the United States, cooperating with and 
     assisting in developing and sharing information found useful 
     in other nations in the rehabilitation of individuals with 
     disabilities, and initiating a program to exchange experts 
     and technical assistance in the field of rehabilitation of 
     individuals with disabilities with other nations as a means 
     of increasing the levels of skill of rehabilitation 
     personnel.
       ``(7) Research grants may be used to conduct a research 
     program concerning the use of existing telecommunications 
     systems (including telephone, television, satellite, radio, 
     and other similar systems) which have the potential for 
     substantially improving service delivery methods, and the 
     development of appropriate programming to meet the particular 
     needs of individuals with disabilities.
       ``(8) Research grants may be used to conduct a program of 
     joint projects with the National Institutes of Health, the 
     National Institute of Mental Health, the Health Services 
     Administration, the Administration on Aging, the National 
     Science Foundation, the Veterans' Administration, the 
     Department of Health and Human Services, the National 
     Aeronautics and Space Administration, other Federal agencies, 
     and private industry in areas of joint interest involving 
     rehabilitation.
       ``(9) Research grants may be used to conduct a program of 
     research related to the rehabilitation of children, or older 
     individuals, who are individuals with disabilities, including 
     older American Indians who are individuals with disabilities. 
     Such research program may include projects designed to assist 
     the adjustment of, or maintain as residents in the community, 
     older workers who are individuals with disabilities on 
     leaving the work force.
       ``(10) Research grants may be used to conduct a research 
     program to develop and demonstrate innovative methods to 
     attract and retain professionals to serve in rural areas in 
     the rehabilitation of individuals with disabilities, 
     including individuals with significant disabilities.
       ``(11) Research grants may be used to conduct a model 
     research and demonstration project designed to assess the 
     feasibility of establishing a center for producing and 
     distributing to individuals who are deaf or hard of hearing 
     captioned video cassettes providing a broad range of 
     educational, cultural, scientific, and vocational programing.
       ``(12) Research grants may be used to conduct a model 
     research and demonstration program to develop innovative 
     methods of providing services for preschool age children who 
     are individuals with disabilities, including--
       ``(A) early intervention, assessment, parent counseling, 
     infant stimulation, early identification, diagnosis, and 
     evaluation of children who are individuals with significant 
     disabilities up to the age of five, with a special emphasis 
     on children who are individuals with significant disabilities 
     up to the age of three;
       ``(B) such physical therapy, language development, 
     pediatric, nursing, psychological, and psychiatric services 
     as are necessary for such children; and
       ``(C) appropriate services for the parents of such 
     children, including psychological and psychiatric services, 
     parent counseling, and training.
       ``(13) Research grants may be used to conduct a model 
     research and training program under which model training 
     centers shall be established to develop and use more advanced 
     and effective methods of evaluating and addressing the 
     employment needs of individuals with disabilities, including 
     programs that--
       ``(A) provide training and continuing education for 
     personnel involved with the employment of individuals with 
     disabilities;
       ``(B) develop model procedures for testing and evaluating 
     the employment needs of individuals with disabilities;
       ``(C) develop model training programs to teach individuals 
     with disabilities skills which will lead to appropriate 
     employment;
       ``(D) develop new approaches for job placement of 
     individuals with disabilities, including new followup 
     procedures relating to such placement;
       ``(E) provide information services regarding education, 
     training, employment, and job placement for individuals with 
     disabilities; and
       ``(F) develop new approaches and provide information 
     regarding job accommodations, including the use of 
     rehabilitation engineering and assistive technology.
       ``(14) Research grants may be used to conduct a 
     rehabilitation research program under which financial 
     assistance is provided in order to--
       ``(A) test new concepts and innovative ideas;
       ``(B) demonstrate research results of high potential 
     benefits;
       ``(C) purchase prototype aids and devices for evaluation;
       ``(D) develop unique rehabilitation training curricula; and
       ``(E) be responsive to special initiatives of the Director.

     No single grant under this paragraph may exceed $50,000 in 
     any fiscal year and all payments made under this paragraph in 
     any fiscal year may not exceed 5 percent of the amount 
     available for this section to the National Institute on 
     Disability and Rehabilitation Research in any fiscal year. 
     Regulations and administrative procedures with respect to 
     financial assistance under this paragraph shall, to the 
     maximum extent possible, be expedited.
       ``(15) Research grants may be used to conduct studies of 
     the rehabilitation needs of American Indian populations and 
     of effective mechanisms for the delivery of rehabilitation 
     services to Indians residing on and off reservations.
       ``(16) Research grants may be used to conduct a 
     demonstration program under which one or more projects 
     national in scope shall be established to develop procedures 
     to provide incentives for the development, manufacturing, and 
     marketing of orphan technological devices, including 
     technology transfer concerning such devices, designed to 
     enable individuals with disabilities to achieve independence 
     and access to gainful employment.
       ``(17)(A) Research grants may be used to conduct a research 
     program related to quality assurance in the area of 
     rehabilitation technology.
       ``(B) Activities carried out under the research program may 
     include--
       ``(i) the development of methodologies to evaluate 
     rehabilitation technology products and services and the 
     dissemination of the methodologies to consumers and other 
     interested parties;
       ``(ii) identification of models for service provider 
     training and evaluation and certification of the 
     effectiveness of the models;
       ``(iii) identification and dissemination of outcome 
     measurement models for the assessment of rehabilitation 
     technology products and services; and
       ``(iv) development and testing of research-based tools to 
     enhance consumer decisionmaking about rehabilitation 
     technology products and services.
       ``(C) The Director shall develop the quality assurance 
     research program after consultation with representatives of 
     all types of organizations interested in rehabilitation 
     technology quality assurance.
       ``(18) Research grants may be used to provide for research 
     and demonstration projects and related activities that 
     explore the use and effectiveness of specific alternative or 
     complementary medical practices for individuals with 
     disabilities. Such projects and activities may include 
     projects and activities designed to--
       ``(A) determine the use of specific alternative or 
     complementary medical practices among individuals with 
     disabilities and the perceived effectiveness of the 
     practices;
       ``(B) determine the specific information sources, 
     decisionmaking methods, and methods of payment used by 
     individuals with disabilities who access alternative or 
     complementary medical services;
       ``(C) develop criteria to screen and assess the validity of 
     research studies of such practices for individuals with 
     disabilities; and
       ``(D) determine the effectiveness of specific alternative 
     or complementary medical practices that show promise for 
     promoting increased functioning, prevention of secondary 
     disabilities, or other positive outcomes for individuals with 
     certain types of disabilities, by conducting controlled 
     research studies.
       ``(c)(1) In carrying out evaluations of covered activities 
     under this section, the Director is authorized to make 
     arrangements for site visits to obtain information on the 
     accomplishments of the projects.
       ``(2) The Director shall not make a grant under this 
     section that exceeds $499,999 unless the peer review of the 
     grant application has included a site visit.


               ``rehabilitation research advisory council

       ``Sec. 205. (a) Establishment.--Subject to the availability 
     of appropriations, the Secretary shall establish in the 
     Department of Education a Rehabilitation Research Advisory 
     Council (referred to in this section as the `Council') 
     composed of 12 members appointed by the Secretary.
       ``(b) Duties.--The Council shall advise the Director with 
     respect to research priorities and the development and 
     revision of the 5-year plan required by section 202(h).
       ``(c) Qualifications.--Members of the Council shall be 
     generally representative of the community of rehabilitation 
     professionals, the community of rehabilitation researchers, 
     the community of individuals with disabilities, and the 
     individuals' representatives. At least one-half of the 
     members shall be individuals with disabilities or the 
     individuals' representatives.

[[Page S4112]]

       ``(d) Terms of Appointment.--
       ``(1) Length of term.--Each member of the Council shall 
     serve for a term of up to 3 years, determined by the 
     Secretary, except that--
       ``(A) a member appointed to fill a vacancy occurring prior 
     to the expiration of the term for which a predecessor was 
     appointed, shall be appointed for the remainder of such term; 
     and
       ``(B) the terms of service of the members initially 
     appointed shall be (as specified by the Secretary) for such 
     fewer number of years as will provide for the expiration of 
     terms on a staggered basis.
       ``(2) Number of terms.--No member of the Council may serve 
     more than two consecutive full terms. Members may serve after 
     the expiration of their terms until their successors have 
     taken office.
       ``(e)  Vacancies.--Any vacancy occurring in the membership 
     of the Council shall be filled in the same manner as the 
     original appointment for the position being vacated. The 
     vacancy shall not affect the power of the remaining members 
     to execute the duties of the Council.
       ``(f) Payment and Expenses.--
       ``(1) Payment.--Each member of the Council who is not an 
     officer or full-time employee of the Federal Government shall 
     receive a payment of $150 for each day (including travel 
     time) during which the member is engaged in the performance 
     of duties for the Council. All members of the Council who are 
     officers or full-time employees of the United States shall 
     serve without compensation in addition to compensation 
     received for their services as officers or employees of the 
     United States.
       ``(2) Travel expenses.--Each member of the Council may 
     receive travel expenses, including per diem in lieu of 
     subsistence, as authorized by section 5703 of title 5, United 
     States Code, for employees serving intermittently in the 
     Government service, for each day the member is engaged in the 
     performance of duties away from the home or regular place of 
     business of the member.
       ``(g) Detail of Federal Employees.--On the request of the 
     Council, the Secretary may detail, with or without 
     reimbursement, any of the personnel of the Department of 
     Education to the Council to assist the Council in carrying 
     out its duties. Any detail shall not interrupt or otherwise 
     affect the civil service status or privileges of the Federal 
     employee.
       ``(h) Technical Assistance.--On the request of the Council, 
     the Secretary shall provide such technical assistance to the 
     Council as the Council determines to be necessary to carry 
     out its duties.
       ``(i) Termination.--Section 14 of the Federal Advisory 
     Committee Act (5 U.S.C. App.) shall not apply with respect to 
     the Council.''.

     SEC. 606. PROFESSIONAL DEVELOPMENT AND SPECIAL PROJECTS AND 
                   DEMONSTRATIONS.

       Title III of the Rehabilitation Act of 1973 (29 U.S.C. 770 
     et seq.) is amended to read as follows:
    ``TITLE III--PROFESSIONAL DEVELOPMENT AND SPECIAL PROJECTS AND 
                             DEMONSTRATIONS

     ``SEC. 301. DECLARATION OF PURPOSE AND COMPETITIVE BASIS OF 
                   GRANTS AND CONTRACTS.

       ``(a) Purpose.--It is the purpose of this title to 
     authorize grants and contracts to--
       ``(1)(A) provide academic training to ensure that skilled 
     personnel are available to provide rehabilitation services to 
     individuals with disabilities through vocational, medical, 
     social, and psychological rehabilitation programs (including 
     supported employment programs), through independent living 
     services programs, and through client assistance programs; 
     and
       ``(B) provide training to maintain and upgrade basic skills 
     and knowledge of personnel employed to provide state-of-the-
     art service delivery and rehabilitation technology services;
       ``(2) conduct special projects and demonstrations that 
     expand and improve the provision of rehabilitation and other 
     services authorized under this Act, or that otherwise further 
     the purposes of this Act, including related research and 
     evaluation;
       ``(3) provide vocational rehabilitation services to 
     individuals with disabilities who are migrant or seasonal 
     farmworkers;
       ``(4) initiate recreational programs to provide 
     recreational activities and related experiences for 
     individuals with disabilities to aid such individuals in 
     employment, mobility, socialization, independence, and 
     community integration; and
       ``(5) provide training and information to individuals with 
     disabilities and the individuals' representatives, and other 
     appropriate parties to develop the skills necessary for 
     individuals with disabilities to gain access to the 
     rehabilitation system and workforce investment system and to 
     become active decisionmakers in the rehabilitation process.
       ``(b) Competitive Basis of Grants and Contracts.--The 
     Secretary shall ensure that all grants and contracts are 
     awarded under this title on a competitive basis.

     ``SEC. 302. TRAINING.

       ``(a) Grants and Contracts for Personnel Training.--
       ``(1) Authority.--The Commissioner shall make grants to, 
     and enter into contracts with, States and public or nonprofit 
     agencies and organizations (including institutions of higher 
     education) to pay part of the cost of projects to provide 
     training, traineeships, and related activities, including the 
     provision of technical assistance, that are designed to 
     assist in increasing the numbers of, and upgrading the skills 
     of, qualified personnel (especially rehabilitation 
     counselors) who are trained in providing vocational, medical, 
     social, and psychological rehabilitation services, who are 
     trained to assist individuals with communication and related 
     disorders, who are trained to provide other services provided 
     under this Act, to individuals with disabilities, and who may 
     include--
       ``(A) personnel specifically trained in providing 
     employment assistance to individuals with disabilities 
     through job development and job placement services;
       ``(B) personnel specifically trained to identify, assess, 
     and meet the individual rehabilitation needs of individuals 
     with disabilities, including needs for rehabilitation 
     technology;
       ``(C) personnel specifically trained to deliver services to 
     individuals who may benefit from receiving independent living 
     services;
       ``(D) personnel specifically trained to deliver services in 
     the client assistance programs;
       ``(E) personnel specifically trained to deliver services, 
     through supported employment programs, to individuals with a 
     most significant disability;
       ``(F) personnel providing vocational rehabilitation 
     services specifically trained in the use of braille, the 
     importance of braille literacy, and in methods of teaching 
     braille; and
       ``(G) personnel trained in performing other functions 
     necessary to the provision of vocational, medical, social, 
     and psychological rehabilitation services, and other services 
     provided under this Act.
       ``(2) Authority to provide scholarships.--Grants and 
     contracts under paragraph (1) may be expended for 
     scholarships and may include necessary stipends and 
     allowances.
       ``(3) Related federal statutes.--In carrying out this 
     subsection, the Commissioner may make grants to and enter 
     into contracts with States and public or nonprofit agencies 
     and organizations, including institutions of higher 
     education, to furnish training regarding related Federal 
     statutes (other than this Act).
       ``(4) Training for statewide workforce systems personnel.--
     The Commissioner may make grants to and enter into contracts 
     under this subsection with States and public or nonprofit 
     agencies and organizations, including institutions of higher 
     education, to furnish training to personnel providing 
     services to individuals with disabilities under the Workforce 
     Investment Partnership Act of 1998. Under this paragraph, 
     personnel may be trained--
       ``(A) in evaluative skills to determine whether an 
     individual with a disability may be served by the State 
     vocational rehabilitation program or another component of the 
     statewide workforce investment system; or
       ``(B) to assist individuals with disabilities seeking 
     assistance through one-stop customer service centers 
     established under section 315 of the Workforce Investment 
     Partnership Act of 1998.
       ``(5) Joint funding.--Training and other activities 
     provided under paragraph (4) for personnel may be jointly 
     funded with the Department of Labor, using funds made 
     available under title III of the Workforce Investment 
     Partnership Act of 1998.
       ``(b) Grants and Contracts for Academic Degrees and 
     Academic Certificate Granting Training Projects.--
       ``(1) Authority.--
       ``(A) In general.--The Commissioner may make grants to, and 
     enter into contracts with, States and public or nonprofit 
     agencies and organizations (including institutions of higher 
     education) to pay part of the costs of academic training 
     projects to provide training that leads to an academic degree 
     or academic certificate. In making such grants or entering 
     into such contracts, the Commissioner shall target funds to 
     areas determined under subsection (e) to have shortages of 
     qualified personnel.
       ``(B) Types of projects.--Academic training projects 
     described in this subsection may include--
       ``(i) projects to train personnel in the areas of 
     vocational rehabilitation counseling, rehabilitation 
     technology, rehabilitation medicine, rehabilitation nursing, 
     rehabilitation social work, rehabilitation psychiatry, 
     rehabilitation psychology, rehabilitation dentistry, physical 
     therapy, occupational therapy, speech pathology and 
     audiology, physical education, therapeutic recreation, 
     community rehabilitation programs, or prosthetics and 
     orthotics;
       ``(ii) projects to train personnel to provide--

       ``(I) services to individuals with specific disabilities or 
     individuals with disabilities who have specific impediments 
     to rehabilitation, including individuals who are members of 
     populations that are unserved or underserved by programs 
     under this Act;
       ``(II) job development and job placement services to 
     individuals with disabilities;
       ``(III) supported employment services, including services 
     of employment specialists for individuals with disabilities;
       ``(IV) specialized services for individuals with 
     significant disabilities; or
       ``(V) recreation for individuals with disabilities;

       ``(iii) projects to train personnel in other fields 
     contributing to the rehabilitation of individuals with 
     disabilities; and

[[Page S4113]]

       ``(iv) projects to train personnel in the use, 
     applications, and benefits of rehabilitation technology.
       ``(2) Application.--No grant shall be awarded or contract 
     entered into under this subsection unless the applicant has 
     submitted to the Commissioner an application at such time, in 
     such form, in accordance with such procedures, and including 
     such information as the Secretary may require, including--
       ``(A) a description of how the designated State unit or 
     units will participate in the project to be funded under the 
     grant or contract, including, as appropriate, participation 
     on advisory committees, as practicum sites, in curriculum 
     development, and in other ways so as to build closer 
     relationships between the applicant and the designated State 
     unit and to encourage students to pursue careers in public 
     vocational rehabilitation programs;
       ``(B) the identification of potential employers that would 
     meet the requirements of paragraph (4)(A)(i); and
       ``(C) an assurance that data on the employment of graduates 
     or trainees who participate in the project is accurate.
       ``(3) Limitation.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     no grant or contract under this subsection may be used to 
     provide any one course of study to an individual for a period 
     of more than 4 years.
       ``(B) Exception.--If a grant or contract recipient under 
     this subsection determines that an individual has a 
     disability which seriously affects the completion of training 
     under this subsection, the grant or contract recipient may 
     extend the period referred to in subparagraph (A).
       ``(4) Required agreements.--
       ``(A) In general.--A recipient of a grant or contract under 
     this subsection shall provide assurances to the Commissioner 
     that each individual who receives a scholarship, for the 
     first academic year after the date of enactment of the 
     Rehabilitation Act Amendments of 1998, utilizing funds 
     provided under such grant or contract shall enter into an 
     agreement with the recipient under which the individual 
     shall--
       ``(i) maintain employment--

       ``(I) with an employer that is a State rehabilitation or 
     other agency or organization (including a professional 
     corporation or practice group) that provides services to 
     individuals with disabilities under this Act, or with an 
     institution of higher education or other organization that 
     conducts rehabilitation education, training, or research 
     under this Act;
       ``(II) on a full- or part-time basis; and
       ``(III) for a period of not less than the full-time 
     equivalent of 2 years for each year for which assistance 
     under this subsection was received by the individual, within 
     a period, beginning after the recipient completes the 
     training for which the scholarship was awarded, of not more 
     than the sum of the number of years in the period described 
     in this subclause and 2 additional years;

       ``(ii) directly provide or administer services, conduct 
     research, or furnish training, funded under this Act; and
       ``(iii) repay all or part of the amount of any scholarship 
     received under the grant or contract, plus interest, if the 
     individual does not fulfill the requirements of clauses (i) 
     and (ii), except that the Commissioner may by regulation 
     provide for repayment exceptions and deferrals.
       ``(B) Enforcement.--The Commissioner shall be responsible 
     for the enforcement of each agreement entered into under 
     subparagraph (A) upon the completion of the training involved 
     with respect to such agreement.
       ``(c) Grants to Historically Black Colleges and 
     Universities.--The Commissioner, in carrying out this 
     section, shall make grants to historically Black colleges and 
     universities and other institutions of higher education whose 
     minority student enrollment is at least 50 percent of the 
     total enrollment of the institution.
       ``(d) Application.--A grant may not be awarded to a State 
     or other organization under this section unless the State or 
     organization has submitted an application to the Commissioner 
     at such time, in such form, in accordance with such 
     procedures, and containing such information as the 
     Commissioner may require, including a detailed description of 
     strategies that will be utilized to recruit and train 
     individuals so as to reflect the diverse populations of the 
     United States as part of the effort to increase the number of 
     individuals with disabilities, and individuals who are from 
     linguistically and culturally diverse backgrounds, who are 
     available to provide rehabilitation services.
       ``(e) Evaluation and Collection of Data.--The Commissioner 
     shall evaluate the impact of the training programs conducted 
     under this section, and collect information on the training 
     needs of, and data on shortages of qualified personnel 
     necessary to provide services to individuals with 
     disabilities.
       ``(f) Grants for the Training of Interpreters.--
       ``(1) Authority.--
       ``(A) In general.--For the purpose of training a sufficient 
     number of qualified interpreters to meet the communications 
     needs of individuals who are deaf or hard of hearing, and 
     individuals who are deaf-blind, the Commissioner, acting 
     through a Federal office responsible for deafness and 
     communicative disorders, may award grants to public or 
     private nonprofit agencies or organizations to pay part of 
     the costs--
       ``(i) for the establishment of interpreter training 
     programs; or
       ``(ii) to enable such agencies or organizations to provide 
     financial assistance for ongoing interpreter training 
     programs.
       ``(B) Geographic areas.--The Commissioner shall award 
     grants under this subsection for programs in geographic areas 
     throughout the United States that the Commissioner considers 
     appropriate to best carry out the objectives of this section.
       ``(C) Priority.--In awarding grants under this subsection, 
     the Commissioner shall give priority to public or private 
     nonprofit agencies or organizations with existing programs 
     that have a demonstrated capacity for providing interpreter 
     training services.
       ``(D) Funding.--The Commissioner may award grants under 
     this subsection through the use of--
       ``(i) amounts appropriated to carry out this section; or
       ``(ii) pursuant to an agreement with the Director of the 
     Office of the Special Education Program (established under 
     section 603 of the Individuals with Disabilities Education 
     Act (as amended by section 101 of the Individuals with 
     Disabilities Education Act Amendments of 1997 (Public Law 
     105-17))), amounts appropriated under section 686 of the 
     Individuals with Disabilities Education Act.
       ``(2) Application.--A grant may not be awarded to an agency 
     or organization under paragraph (1) unless the agency or 
     organization has submitted an application to the Commissioner 
     at such time, in such form, in accordance with such 
     procedures, and containing such information as the 
     Commissioner may require, including--
       ``(A) a description of the manner in which an interpreter 
     training program will be developed and operated during the 5-
     year period following the date on which a grant is received 
     by the applicant under this subsection;
       ``(B) a demonstration of the applicant's capacity or 
     potential for providing training for interpreters for 
     individuals who are deaf or hard of hearing, and individuals 
     who are deaf-blind;
       ``(C) assurances that any interpreter trained or retrained 
     under a program funded under the grant will meet such minimum 
     standards of competency as the Commissioner may establish for 
     purposes of this subsection; and
       ``(D) such other information as the Commissioner may 
     require.
       ``(g) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary for each of the fiscal years 1998 
     through 2004.
       ``(h) Provision of Information.--The Commissioner, subject 
     to the provisions of section 306, may require that recipients 
     of grants or contracts under this section provide 
     information, including data, with regard to the impact of 
     activities funded under this section.

     ``SEC. 303. SPECIAL DEMONSTRATION PROGRAM.

       ``(a) Authority.--The Commissioner, subject to the 
     provisions of section 306, may award grants or contracts to 
     eligible entities to pay all or part of the cost of programs 
     that expand and improve the provision of rehabilitation and 
     other services authorized under this Act or that further the 
     purposes of the Act, including related research and 
     evaluation activities.
       ``(b) Eligible Entities and Terms and Conditions.--
       ``(1) Eligible entities.--To be eligible to receive a grant 
     or contract under subsection (a), an entity shall be a State 
     vocational rehabilitation agency, community rehabilitation 
     program, Indian tribe or tribal organization, or other public 
     or nonprofit agency or organization, or as the Commissioner 
     determines appropriate, a for-profit organization. The 
     Commissioner may limit competitions to 1 or more types of 
     organizations described in this paragraph.
       ``(2) Terms and conditions.--Awards under this section 
     shall contain such terms and conditions as the Commissioner 
     may require.
       ``(c) Application.--An eligible entity that desires to 
     receive an award under this section shall submit an 
     application to the Secretary at such time, in such form, and 
     containing such information and assurances as the 
     Commissioner may require, including, if the Commissioner 
     determines appropriate, a description of how the proposed 
     project or demonstration program--
       ``(1) is based on current research findings, which may 
     include research conducted by the National Institute on 
     Disability and Rehabilitation Research, the National 
     Institutes of Health, and other public or private 
     organizations; and
       ``(2) is of national significance.
       ``(d) Types of Projects.--The programs that may be funded 
     under this section include--
       ``(1) special projects and demonstrations of service 
     delivery;
       ``(2) model demonstration projects;
       ``(3) technical assistance projects;
       ``(4) systems change projects;
       ``(5) special studies and evaluations; and
       ``(6) dissemination and utilization activities.
       ``(e) Priority for Competitions.--
       ``(1) In general.--In announcing competitions for grants 
     and contracts under this section, the Commissioner shall give 
     priority consideration to--
       ``(A) projects to provide training, information, and 
     technical assistance that will enable individuals with 
     disabilities and the individuals' representatives, to 
     participate

[[Page S4114]]

     more effectively in meeting the vocational, independent 
     living, and rehabilitation needs of the individuals with 
     disabilities;
       ``(B) special projects and demonstration programs of 
     service delivery for adults who are either low-functioning 
     and deaf or low-functioning and hard of hearing;
       ``(C) innovative methods of promoting consumer choice in 
     the rehabilitation process;
       ``(D) supported employment, including community-based 
     supported employment programs to meet the needs of 
     individuals with the most significant disabilities or to 
     provide technical assistance to States and community 
     organizations to improve and expand the provision of 
     supported employment services; and
       ``(E) model transitional planning services for youths with 
     disabilities.
       ``(2) Eligibility and coordination.--
       ``(A) Eligibility.--Eligible applicants for grants and 
     contracts under this section for projects described in 
     paragraph (1)(A) include--
       ``(i) Parent Training and Information Centers funded under 
     section 682 of the Individuals with Disabilities Education 
     Act (as amended by section 101 of the Individuals with 
     Disabilities Education Act Amendments of 1997 (Public Law 
     105-17));
       ``(ii) organizations that meet the definition of a parent 
     organization in section 682 of such Act; and
       ``(iii) private nonprofit organizations assisting parent 
     training and information centers.
       ``(B) Coordination.--Recipients of grants and contracts 
     under this section for projects described in paragraph (1)(A) 
     shall, to the extent practicable, coordinate training and 
     information activities with Centers for Independent Living.
       ``(3) Additional competitions.--In announcing competitions 
     for grants and contracts under this section, the Commissioner 
     may require that applicants address 1 or more of the 
     following:
       ``(A) Age ranges.
       ``(B) Types of disabilities.
       ``(C) Types of services.
       ``(D) Models of service delivery.
       ``(E) Stage of the rehabilitation process.
       ``(F) The needs of--
       ``(i) underserved populations;
       ``(ii) unserved and underserved areas;
       ``(iii) individuals with significant disabilities;
       ``(iv) low-incidence disability populations; and
       ``(v) individuals residing in federally designated 
     empowerment zones and enterprise communities.
       ``(G) Expansion of employment opportunities for individuals 
     with disabilities.
       ``(H) Systems change projects to promote meaningful access 
     of individuals with disabilities to employment-related 
     services under the Workforce Investment Partnership Act of 
     1998 and under other Federal laws.
       ``(I) Innovative methods of promoting the achievement of 
     high-quality employment outcomes.
       ``(J) The demonstration of the effectiveness of early 
     intervention activities in improving employment outcomes.
       ``(K) Alternative methods of providing affordable 
     transportation services to individuals with disabilities who 
     are employed, seeking employment, or receiving vocational 
     rehabilitation services from public or private organizations 
     and who reside in geographic areas in which public 
     transportation or paratransit service is not available.
       ``(f) Use of Funds for Continuation Awards.--The 
     Commissioner may use funds made available to carry out this 
     section for continuation awards for projects that were funded 
     under sections 12 and 311 (as such sections were in effect on 
     the day prior to the date of the enactment of the 
     Rehabilitation Act Amendments of 1998).
       ``(g) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary for each of the fiscal years 1998 
     through 2004.

     ``SEC. 304. MIGRANT AND SEASONAL FARMWORKERS.

       ``(a) Grants.--
       ``(1) Authority.--The Commissioner, subject to the 
     provisions of section 306, may make grants to eligible 
     entities to pay up to 90 percent of the cost of projects or 
     demonstration programs for the provision of vocational 
     rehabilitation services to individuals with disabilities who 
     are migrant or seasonal farmworkers, as determined in 
     accordance with rules prescribed by the Secretary of Labor, 
     and to the family members who are residing with such 
     individuals (whether or not such family members are 
     individuals with disabilities).
       ``(2) Eligible entities.--To be eligible to receive a grant 
     under paragraph (1), an entity shall be--
       ``(A) a State designated agency;
       ``(B) a nonprofit agency working in collaboration with a 
     State agency described in subparagraph (A); or
       ``(C) a local agency working in collaboration with a State 
     agency described in subparagraph (A).
       ``(3) Maintenance and transportation.--
       ``(A) In general.--Amounts provided under a grant under 
     this section may be used to provide for the maintenance of 
     and transportation for individuals and family members 
     described in paragraph (1) as necessary for the 
     rehabilitation of such individuals.
       ``(B) Requirement.--Maintenance payments under this 
     paragraph shall be provided in a manner consistent with any 
     maintenance payments provided to other individuals with 
     disabilities in the State under this Act.
       ``(4) Assurance of cooperation.--To be eligible to receive 
     a grant under this section an entity shall provide assurances 
     (satisfactory to the Commissioner) that in the provision of 
     services under the grant there will be appropriate 
     cooperation between the grantee and other public or nonprofit 
     agencies and organizations having special skills and 
     experience in the provision of services to migrant or 
     seasonal farmworkers or their families.
       ``(5) Coordination with other programs.--The Commissioner 
     shall administer this section in coordination with other 
     programs serving migrant and seasonal farmworkers, including 
     programs under title I of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 6301 et seq.), section 330 
     of the Public Health Service Act (42 U.S.C. 254b), the 
     Migrant and Seasonal Agricultural Worker Protection Act (29 
     U.S.C. 1801 et seq.), and the Workforce Investment 
     Partnership Act of 1998.
       ``(b) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as may be necessary 
     to carry out this section, for each of the fiscal years 1998 
     through 2004.

     ``SEC. 305. RECREATIONAL PROGRAMS.

       ``(a) Grants.--
       ``(1) Authority.--
       ``(A) In general.--The Commissioner, subject to the 
     provisions of section 306, shall make grants to States, 
     public agencies, and nonprofit private organizations to pay 
     the Federal share of the cost of the establishment and 
     operation of recreation programs to provide individuals with 
     disabilities with recreational activities and related 
     experiences to aid in the employment, mobility, 
     socialization, independence, and community integration of 
     such individuals.
       ``(B) Recreation programs.--The recreation programs that 
     may be funded using assistance provided under a grant under 
     this section may include vocational skills development, 
     leisure education, leisure networking, leisure resource 
     development, physical education and sports, scouting and 
     camping, 4-H activities, music, dancing, handicrafts, art, 
     and homemaking. When possible and appropriate, such programs 
     and activities should be provided in settings with peers who 
     are not individuals with disabilities.
       ``(C) Design of program.--Programs and activities carried 
     out under this section shall be designed to demonstrate ways 
     in which such programs assist in maximizing the independence 
     and integration of individuals with disabilities.
       ``(2) Maximum term of grant.--A grant under this section 
     shall be made for a period of not more than 3 years.
       ``(3) Availability of nongrant resources.--
       ``(A) In general.--A grant may not be made to an applicant 
     under this section unless the applicant provides assurances 
     that, with respect to costs of the recreation program to be 
     carried out under the grant, the applicant, to the maximum 
     extent practicable, will make available non-Federal resources 
     (in cash or in-kind) to pay the non-Federal share of such 
     costs.
       ``(B) Federal share.--The Federal share of the costs of the 
     recreation programs carried out under this section shall be--
       ``(i) with respect to the first year in which assistance is 
     provided under a grant under this section, 100 percent;
       ``(ii) with respect to the second year in which assistance 
     is provided under a grant under this section, 75 percent; and
       ``(iii) with respect to the third year in which assistance 
     is provided under a grant under this section, 50 percent.
       ``(4) Application.--To be eligible to receive a grant under 
     this section, a State, agency, or organization shall submit 
     an application to the Commissioner at such time, in such 
     manner, and containing such information as the Commissioner 
     may require, including a description of--
       ``(A) the manner in which the findings and results of the 
     project to be funded under the grant, particularly 
     information that facilitates the replication of the results 
     of such projects, will be made generally available; and
       ``(B) the manner in which the service program funded under 
     the grant will be continued after Federal assistance ends.
       ``(5) Level of services.--Recreation programs funded under 
     this section shall maintain, at a minimum, the same level of 
     services over a 3-year project period.
       ``(6) Reports by grantees.--
       ``(A) Requirement.--The Commissioner shall require that 
     each recipient of a grant under this section annually prepare 
     and submit to the Commissioner a report concerning the 
     results of the activities funded under the grant.
       ``(B) Limitation.--The Commissioner may not make financial 
     assistance available to a grant recipient for a subsequent 
     year until the Commissioner has received and evaluated the 
     annual report of the recipient under subparagraph (A) for the 
     current year.
       ``(b) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section, such 
     sums as may be necessary for each of the fiscal years 1998 
     through 2004.

     ``SEC. 306. MEASURING OF PROJECT OUTCOMES AND PERFORMANCE.

       ``The Commissioner may require that recipients of grants 
     under this title submit information, including data, as 
     determined by

[[Page S4115]]

     the Commissioner to be necessary to measure project outcomes 
     and performance, including any data needed to comply with the 
     Government Performance and Results Act.''.

     SEC. 607. NATIONAL COUNCIL ON DISABILITY.

       Title IV of the Rehabilitation Act of 1973 (29 U.S.C. 780 
     et seq.) is amended to read as follows:

               ``TITLE IV--NATIONAL COUNCIL ON DISABILITY


           ``establishment of national council on disability

       ``Sec. 400. (a)(1)(A) There is established within the 
     Federal Government a National Council on Disability 
     (hereinafter in this title referred to as the `National 
     Council'), which shall be composed of fifteen members 
     appointed by the President, by and with the advice and 
     consent of the Senate.
       ``(B) The President shall select members of the National 
     Council after soliciting recommendations from representatives 
     of--
       ``(i) organizations representing a broad range of 
     individuals with disabilities; and
       ``(ii) organizations interested in individuals with 
     disabilities.
       ``(C) The members of the National Council shall be 
     individuals with disabilities, parents or guardians of 
     individuals with disabilities, or other individuals who have 
     substantial knowledge or experience relating to disability 
     policy or programs. The members of the National Council shall 
     be appointed so as to be representative of individuals with 
     disabilities, national organizations concerned with 
     individuals with disabilities, providers and administrators 
     of services to individuals with disabilities, individuals 
     engaged in conducting medical or scientific research relating 
     to individuals with disabilities, business concerns, and 
     labor organizations. A majority of the members of the 
     National Council shall be individuals with disabilities. The 
     members of the National Council shall be broadly 
     representative of minority and other individuals and groups.
       ``(2) The purpose of the National Council is to promote 
     policies, programs, practices, and procedures that--
       ``(A) guarantee equal opportunity for all individuals with 
     disabilities, regardless of the nature or severity of the 
     disability; and
       ``(B) empower individuals with disabilities to achieve 
     economic self-sufficiency, independent living, and inclusion 
     and integration into all aspects of society.
       ``(b)(1) Each member of the National Council shall serve 
     for a term of 3 years, except that the terms of service of 
     the members initially appointed after the date of enactment 
     of the Rehabilitation, Comprehensive Services, and 
     Developmental Disabilities Amendments of 1978 shall be (as 
     specified by the President) for such fewer number of years as 
     will provide for the expiration of terms on a staggered 
     basis.
       ``(2)(A) No member of the National Council may serve more 
     than two consecutive full terms beginning on the date of 
     commencement of the first full term on the Council. Members 
     may serve after the expiration of their terms until their 
     successors have taken office.
       ``(B) As used in this paragraph, the term `full term' means 
     a term of 3 years.
       ``(3) Any member appointed to fill a vacancy occurring 
     before the expiration of the term for which such member's 
     predecessor was appointed shall be appointed only for the 
     remainder of such term.
       ``(c) The President shall designate the Chairperson from 
     among the members appointed to the National Council. The 
     National Council shall meet at the call of the Chairperson, 
     but not less often than four times each year.
       ``(d) Eight members of the National Council shall 
     constitute a quorum and any vacancy in the National Council 
     shall not affect its power to function.


                      ``duties of national council

       ``Sec. 401. (a) The National Council shall--
       ``(1) provide advice to the Director with respect to the 
     policies and conduct of the National Institute on Disability 
     and Rehabilitation Research, including ways to improve 
     research concerning individuals with disabilities and the 
     methods of collecting and disseminating findings of such 
     research;
       ``(2) provide advice to the Commissioner with respect to 
     the policies of and conduct of the Rehabilitation Services 
     Administration;
       ``(3) advise the President, the Congress, the Commissioner, 
     the appropriate Assistant Secretary of the Department of 
     Education, and the Director of the National Institute on 
     Disability and Rehabilitation Research on the development of 
     the programs to be carried out under this Act;
       ``(4) provide advice regarding priorities for the 
     activities of the Interagency Disability Coordinating Council 
     and review the recommendations of such Council for 
     legislative and administrative changes to ensure that such 
     recommendations are consistent with the purposes of the 
     Council to promote the full integration, independence, and 
     productivity of individuals with disabilities;
       ``(5) review and evaluate on a continuing basis--
       ``(A) policies, programs, practices, and procedures 
     concerning individuals with disabilities conducted or 
     assisted by Federal departments and agencies, including 
     programs established or assisted under this Act or under the 
     Developmental Disabilities Assistance and Bill of Rights Act; 
     and
       ``(B) all statutes and regulations pertaining to Federal 
     programs which assist such individuals with disabilities;

     in order to assess the effectiveness of such policies, 
     programs, practices, procedures, statutes, and regulations in 
     meeting the needs of individuals with disabilities;
       ``(6) assess the extent to which such policies, programs, 
     practices, and procedures facilitate or impede the promotion 
     of the policies set forth in subparagraphs (A) and (B) of 
     section 400(a)(2);
       ``(7) gather information about the implementation, 
     effectiveness, and impact of the Americans with Disabilities 
     Act of 1990 (42 U.S.C. 12101 et seq.);
       ``(8) make recommendations to the President, the Congress, 
     the Secretary, the Director of the National Institute on 
     Disability and Rehabilitation Research, and other officials 
     of Federal agencies or other Federal entities, respecting 
     ways to better promote the policies set forth in section 
     400(a)(2);
       ``(9) provide to the Congress on a continuing basis advice, 
     recommendations, legislative proposals, and any additional 
     information that the National Council or the Congress deems 
     appropriate; and
       ``(10) review and evaluate on a continuing basis new and 
     emerging disability policy issues affecting individuals with 
     disabilities at the international, Federal, State, and local 
     levels, and in the private sector, including the need for and 
     coordination of adult services, access to personal assistance 
     services, school reform efforts and the impact of such 
     efforts on individuals with disabilities, access to health 
     care, and policies that operate as disincentives for the 
     individuals to seek and retain employment.
       ``(b)(1) Not later than July 26, 1998, and annually 
     thereafter, the National Council shall prepare and submit to 
     the President and the appropriate committees of the Congress 
     a report entitled `National Disability Policy: A Progress 
     Report'.
       ``(2) The report shall assess the status of the Nation in 
     achieving the policies set forth in section 400(a)(2), with 
     particular focus on the new and emerging issues impacting on 
     the lives of individuals with disabilities. The report shall 
     present, as appropriate, available data on health, housing, 
     employment, insurance, transportation, recreation, training, 
     prevention, early intervention, and education. The report 
     shall include recommendations for policy change.
       ``(3) In determining the issues to focus on and the 
     findings, conclusions, and recommendations to include in the 
     report, the National Council shall seek input from the 
     public, particularly individuals with disabilities, 
     representatives of organizations representing a broad range 
     of individuals with disabilities, and organizations and 
     agencies interested in individuals with disabilities.


               ``compensation of national council members

       ``Sec. 402. (a) Members of the National Council shall be 
     entitled to receive compensation at a rate equal to the rate 
     of pay for level 4 of the Senior Executive Service Schedule 
     under section 5382 of title 5, United States Code, including 
     travel time, for each day they are engaged in the performance 
     of their duties as members of the National Council.
       ``(b) Members of the National Council who are full-time 
     officers or employees of the United States shall receive no 
     additional pay on account of their service on the National 
     Council except for compensation for travel expenses as 
     provided under subsection (c) of this section.
       ``(c) While away from their homes or regular places of 
     business in the performance of services for the National 
     Council, members of the National Council shall be allowed 
     travel expenses, including per diem in lieu of subsistence, 
     in the same manner as persons employed intermittently in the 
     Government service are allowed expenses under section 5703 of 
     title 5, United States Code.


                      ``staff of national council

       ``Sec. 403. (a)(1) The Chairperson of the National Council 
     may appoint and remove, without regard to the provisions of 
     title 5, United States Code, governing appointments, the 
     provisions of chapter 75 of such title (relating to adverse 
     actions), the provisions of chapter 77 of such title 
     (relating to appeals), or the provisions of chapter 51 and 
     subchapter III of chapter 53 of such title (relating to 
     classification and General Schedule pay rates), an Executive 
     Director to assist the National Council to carry out its 
     duties. The Executive Director shall be appointed from among 
     individuals who are experienced in the planning or operation 
     of programs for individuals with disabilities.
       ``(2) The Executive Director is authorized to hire 
     technical and professional employees to assist the National 
     Council to carry out its duties.
       ``(b)(1) The National Council may procure temporary and 
     intermittent services to the same extent as is authorized by 
     section 3109(b) of title 5, United States Code (but at rates 
     for individuals not to exceed the daily equivalent of the 
     rate of pay for level 4 of the Senior Executive Service 
     Schedule under section 5382 of title 5, United States Code).
       ``(2) The National Council may--
       ``(A) accept voluntary and uncompensated services, 
     notwithstanding the provisions of section 1342 of title 31, 
     United States Code;
       ``(B) in the name of the Council, solicit, accept, employ, 
     and dispose of, in furtherance of this Act, any money or 
     property, real or personal, or mixed, tangible or 
     nontangible, received by gift, devise, bequest, or otherwise; 
     and
       ``(C) enter into contracts and cooperative agreements with 
     Federal and State agencies, private firms, institutions, and 
     individuals

[[Page S4116]]

     for the conduct of research and surveys, preparation of 
     reports and other activities necessary to the discharge of 
     the Council's duties and responsibilities.
       ``(3) Not more than 10 per centum of the total amounts 
     available to the National Council in each fiscal year may be 
     used for official representation and reception.
       ``(c) The Administrator of General Services shall provide 
     to the National Council on a reimbursable basis such 
     administrative support services as the Council may request.
       ``(d)(1) It shall be the duty of the Secretary of the 
     Treasury to invest such portion of the amounts made available 
     under subsection (a)(2)(B) as is not, in the Secretary's 
     judgment, required to meet current withdrawals. Such 
     investments may be made only in interest-bearing obligations 
     of the United States or in obligations guaranteed as to both 
     principal and interest by the United States.
       ``(2) The amounts described in paragraph (1), and the 
     interest on, and the proceeds from the sale or redemption of, 
     the obligations described in paragraph (1) shall be available 
     to the National Council to carry out this title.


              ``administrative powers of national council

       ``Sec. 404. (a) The National Council may prescribe such 
     bylaws and rules as may be necessary to carry out its duties 
     under this title.
       ``(b) The National Council may hold such hearings, sit and 
     act at such times and places, take such testimony, and 
     receive such evidence as it deems advisable.
       ``(c) The National Council may appoint advisory committees 
     to assist the National Council in carrying out its duties. 
     The members thereof shall serve without compensation.
       ``(d) The National Council may use the United States mails 
     in the same manner and upon the same conditions as other 
     departments and agencies of the United States.
       ``(e) The National Council may use, with the consent of the 
     agencies represented on the Interagency Disability 
     Coordinating Council, and as authorized in title V, such 
     services, personnel, information, and facilities as may be 
     needed to carry out its duties under this title, with or 
     without reimbursement to such agencies.


                   ``authorization of appropriations

       ``Sec. 405. There are authorized to be appropriated to 
     carry out this title such sums as may be necessary for each 
     of the fiscal years 1998 through 2004.''.

     SEC. 608. RIGHTS AND ADVOCACY.

       (a) Conforming Amendments to Rights and Advocacy 
     Provisions.--
       (1) Employment.--Section 501 (29 U.S.C. 791) is amended--
       (A) in the third sentence of subsection (a), by striking 
     ``President's Committees on Employment of the Handicapped'' 
     and inserting ``President's Committees on Employment of 
     People With Disabilities''; and
       (B) in subsection (e), by striking ``individualized written 
     rehabilitation program'' and inserting ``individualized 
     rehabilitation employment plan''.
       (2) Access board.--Section 502 (29 U.S.C. 792) is amended--
       (A) in subsection (a)(1), in the sentence following 
     subparagraph (B), by striking ``Chairperson'' and inserting 
     ``chairperson'';
       (B) in subsection (b)--
       (i) in paragraph (9), by striking ``; and'' and inserting a 
     semicolon;
       (ii) in paragraph (10), by striking the period and 
     inserting ``; and''; and
       (iii) by adding at the end the following:
       ``(11) carry out the responsibilities specified for the 
     Access Board in section 508'';
       (C) in subsection (d)(2)(A), by inserting before the 
     semicolon the following: ``and section 508(d)(2)(C)'';
       (D) in subsection (g)(2), by striking ``Committee on 
     Education and Labor'' and inserting ``Committee on Education 
     and the Workforce''; and
       (E) in subsection (i), by striking ``fiscal years 1993 
     through 1997'' and inserting ``fiscal years 1998 through 
     2004''.
       (3) Federal grants and contracts.--Section 504(a) (29 
     U.S.C. 794(a)) is amended in the first sentence by striking 
     ``section 7(8)'' and inserting ``section 7(20)''.
       (4) Secretarial responsibilities.--Section 506(a) (29 
     U.S.C. 794b(a)) is amended--
       (A) by striking the second sentence and inserting the 
     following: ``Any concurrence of the Access Board under 
     paragraph (2) shall reflect its consideration of cost studies 
     carried out by States.''; and
       (B) in the second sentence of subsection (c), by striking 
     ``provided under this paragraph'' and inserting ``provided 
     under this subsection''.
       (b) Electronic and Information Technology Regulations.--
     Section 508 (29 U.S.C. 794d) is amended to read as follows:

     ``SEC. 508. ELECTRONIC AND INFORMATION TECHNOLOGY.

       ``(a) Requirements for Federal Departments and Agencies.--
       ``(1) Accessibility.--Each Federal department or agency 
     shall procure, maintain, and use (unless such procurement, 
     maintenance, or use is not practicable) electronic and 
     information technology that allows, regardless of the type of 
     medium of the technology, individuals with disabilities to 
     have access to and use information and data that is 
     comparable to the information and data that is accessible to 
     and used by individuals who are not individuals with 
     disabilities.
       ``(2) Electronic and information technology standards.--
       ``(A) In general.--Not later than 18 months after the date 
     of enactment of the Rehabilitation Act Amendments of 1998, 
     the Architectural and Transportation Barriers Compliance 
     Board (referred to in this section as the `Access Board'), 
     after consultation with the Secretary of Education, the 
     Administrator of General Services, the Director of the Office 
     of Management and Budget, the Secretary of Commerce, the 
     Chairman of the Federal Communications Commission, and the 
     head of any other Federal department or agency that the 
     Access Board determines to be appropriate, including 
     consultation on relevant research findings, and after 
     consultation with the electronic and information technology 
     industry and appropriate public or nonprofit agencies or 
     organizations, shall issue and publish standards setting 
     forth--
       ``(i) for purposes of this section, a definition of 
     electronic and information technology that is consistent with 
     the definition of information technology in section 5002 of 
     the Clinger-Cohen Act of 1996 (Public Law 104-106; 110 Stat. 
     679); and
       ``(ii) the technical and functional performance criteria 
     necessary to implement the requirements set forth in 
     paragraph (1).
       ``(B) Review and amendment.--The Access Board shall 
     periodically review and, as appropriate, amend the standards 
     required under subparagraph (A) to reflect technological 
     advances or changes in electronic and information technology.
       ``(3) Incorporation of standards.--Not later than 6 months 
     after the Access Board publishes the standards required under 
     paragraph (2), the Federal Acquisition Regulatory Council 
     shall revise the Federal Acquisition Regulation and each 
     Federal department or agency shall revise the Federal 
     procurement policies and directives under the control of the 
     department or agency to incorporate those standards.
       ``(b) Technical Assistance.--The Administrator of General 
     Services and the Access Board shall provide technical 
     assistance to individuals and Federal departments and 
     agencies concerning the requirements of this section.
       ``(c) Agency Evaluations.--Not later than 6 months after 
     the date of enactment of the Rehabilitation Act Amendments of 
     1998, the head of each Federal department or agency shall 
     evaluate the extent to which the electronic and information 
     technology of the department or agency is accessible to 
     individuals with disabilities, and submit a report containing 
     the evaluation to the Attorney General.
       ``(d) Reports.--
       ``(1) Interim report.--Not later than 18 months after the 
     date of enactment of the Rehabilitation Act Amendments of 
     1998, the Attorney General shall prepare and submit to the 
     President a report containing information on and 
     recommendations regarding the state of electronic and 
     information technology accessibility in the Federal 
     Government for individuals with disabilities.
       ``(2) Biennial reports.--Not later than 3 years after the 
     date of enactment of the Rehabilitation Act Amendments of 
     1998, and every 2 years thereafter, the Attorney General 
     shall prepare and submit to the President and Congress a 
     report containing information on and recommendations 
     regarding the state of Federal department and agency 
     compliance with the requirements of this section, including 
     actions regarding individual complaints under subsection (f).
       ``(e) Cooperation.--Each head of a Federal department or 
     agency (including the Access Board, the Equal Employment 
     Opportunity Commission, and the General Services 
     Administration) shall provide the Attorney General with such 
     information as the Attorney General determines is necessary 
     to conduct the evaluations under subsection (c) and prepare 
     the reports under subsection (d).
       ``(f) Enforcement.--
       ``(1) General.--Any individual with a disability, including 
     a Federal employee or a person served by a Federal agency, 
     may file a complaint alleging that a procurement action 
     initiated after the date described in paragraph (4) fails to 
     comply with subsection (a)(1).
       ``(2) Administrative complaints.--Complaints filed under 
     paragraph (1) shall be filed with the Federal department or 
     agency alleged to be in noncompliance. The Federal department 
     or agency receiving the complaint shall apply the complaint 
     procedures established to implement section 504 for resolving 
     allegations of discrimination in a federally conducted 
     program or activity.
       ``(3) Civil actions.--The remedies, procedures, and rights 
     set forth in sections 505(a)(2) and 505(b) shall be the 
     remedies, procedures, and rights available to any individual 
     alleging that a procurement action initiated after the date 
     described in paragraph (4) fails to comply with subsection 
     (a)(1).
       ``(4) Application.--This subsection shall apply to Federal 
     departments and agencies on the date of publication of the 
     standards issued pursuant to subsection (a)(2)(A).
       ``(g) Relationship to Other Federal Laws.--This section 
     shall not be construed to limit any right, remedy, or 
     procedure otherwise available under any provision of Federal 
     law (including sections 501 through 505) that provides 
     greater or equal protection for the rights of individuals 
     with disabilities than this section.''.
       (c) Protection and Advocacy of Individual Rights.--Section 
     509 (29 U.S.C. 794e) is amended to read as follows:

[[Page S4117]]

     ``SEC. 509. PROTECTION AND ADVOCACY OF INDIVIDUAL RIGHTS.

       ``(a) Purpose.--The purpose of this section is to support a 
     system in each State to protect the legal and human rights of 
     individuals with disabilities who--
       ``(1) need services that are beyond the scope of services 
     authorized to be provided by the client assistance program 
     under section 112; and
       ``(2) are ineligible for protection and advocacy programs 
     under part C of the Developmental Disabilities Assistance and 
     Bill of Rights Act (42 U.S.C. 6041 et seq.) because the 
     individuals do not have a developmental disability, as 
     defined in section 102 of such Act (42 U.S.C. 6002) and the 
     Protection and Advocacy for Mentally Ill Individuals Act of 
     1986 (42 U.S.C. 10801 et seq.) because the individuals are 
     not individuals with mental illness, as defined in section 
     102 of such Act (42 U.S.C. 10802).
       ``(b) Appropriations Less Than $5,500,000.--For any fiscal 
     year in which the amount appropriated to carry out this 
     section is less than $5,500,000, the Commissioner may make 
     grants from such amount to eligible systems within States to 
     plan for, develop outreach strategies for, and carry out 
     protection and advocacy programs authorized under this 
     section for individuals with disabilities who meet the 
     requirements of paragraphs (1) and (2) of subsection (a).
       ``(c) Appropriations of $5,500,000 or More.--
       ``(1) Reservations.--
       ``(A) Technical assistance.--For any fiscal year in which 
     the amount appropriated to carry out this section equals or 
     exceeds $5,500,000, the Commissioner shall set aside not less 
     than 1.8 percent and not more than 2.2 percent of the amount 
     to provide training and technical assistance to the systems 
     established under this section.
       ``(B) Grant for the eligible system serving the american 
     indian consortium.--For any fiscal year in which the amount 
     appropriated to carry out this section equals or exceeds 
     $10,500,000, the Commissioner shall reserve a portion, and 
     use the portion to make a grant for the eligible system 
     serving the American Indian consortium. The Commission shall 
     make the grant in an amount of not less than $50,000 for the 
     fiscal year.
       ``(2) Allotments.--For any such fiscal year, after the 
     reservations required by paragraph (1) have been made, the 
     Commissioner shall make allotments from the remainder of such 
     amount in accordance with paragraph (3) to eligible systems 
     within States to enable such systems to carry out protection 
     and advocacy programs authorized under this section for such 
     individuals.
       ``(3) Systems within states.--
       ``(A) Population basis.--Except as provided in subparagraph 
     (B), from such remainder for each such fiscal year, the 
     Commissioner shall make an allotment to the eligible system 
     within a State of an amount bearing the same ratio to such 
     remainder as the population of the State bears to the 
     population of all States.
       ``(B) Minimums.--Subject to the availability of 
     appropriations to carry out this section, and except as 
     provided in paragraph (4), the allotment to any system under 
     subparagraph (A) shall be not less than $100,000 or one-third 
     of one percent of the remainder for the fiscal year for which 
     the allotment is made, whichever is greater, and the 
     allotment to any system under this section for any fiscal 
     year that is less than $100,000 or one-third of one percent 
     of such remainder shall be increased to the greater of the 
     two amounts.
       ``(4) Systems within other jurisdictions.--
       ``(A) In general.--For the purposes of paragraph (3)(B), 
     Guam, American Samoa, the United States Virgin Islands, and 
     the Commonwealth of the Northern Mariana Islands shall not be 
     considered to be States.
       ``(B) Allotment.--The eligible system within a jurisdiction 
     described in subparagraph (A) shall be allotted under 
     paragraph (3)(A) not less than $50,000 for the fiscal year 
     for which the allotment is made.
       ``(5) Adjustment for inflation.--For any fiscal year, 
     beginning in fiscal year 1999, in which the total amount 
     appropriated to carry out this section exceeds the total 
     amount appropriated to carry out this section for the 
     preceding fiscal year, the Commissioner shall increase each 
     of the minimum grants or allotments under paragraphs (1)(B), 
     (3)(B), and (4)(B) by a percentage that shall not exceed the 
     percentage increase in the total amount appropriated to carry 
     out this section between the preceding fiscal year and the 
     fiscal year involved.
       ``(d) Proportional Reduction.--To provide minimum 
     allotments to systems within States (as increased under 
     subsection (c)(5)) under subsection (c)(3)(B), or to provide 
     minimum allotments to systems within States (as increased 
     under subsection (c)(5)) under subsection (c)(4)(B), the 
     Commissioner shall proportionately reduce the allotments of 
     the remaining systems within States under subsection (c)(3), 
     with such adjustments as may be necessary to prevent the 
     allotment of any such remaining system within a State from 
     being reduced to less than the minimum allotment for a system 
     within a State (as increased under subsection (c)(5)) under 
     subsection (c)(3)(B), or the minimum allotment for a State 
     (as increased under subsection (c)(5)) under subsection 
     (c)(4)(B), as appropriate.
       ``(e) Reallotment.--Whenever the Commissioner determines 
     that any amount of an allotment to a system within a State 
     for any fiscal year described in subsection (c)(1) will not 
     be expended by such system in carrying out the provisions of 
     this section, the Commissioner shall make such amount 
     available for carrying out the provisions of this section to 
     one or more of the systems that the Commissioner determines 
     will be able to use additional amounts during such year for 
     carrying out such provisions. Any amount made available to a 
     system for any fiscal year pursuant to the preceding sentence 
     shall, for the purposes of this section, be regarded as an 
     increase in the allotment of the system (as determined under 
     the preceding provisions of this section) for such year.
       ``(f) Application.--In order to receive assistance under 
     this section, an eligible system shall submit an application 
     to the Commissioner, at such time, in such form and manner, 
     and containing such information and assurances as the 
     Commissioner determines necessary to meet the requirements of 
     this section, including assurances that the eligible system 
     will--
       ``(1) have in effect a system to protect and advocate the 
     rights of individuals with disabilities;
       ``(2) have the same general authorities, including access 
     to records and program income, as are set forth in part C of 
     the Developmental Disabilities Assistance and Bill of Rights 
     Act (42 U.S.C. 6041 et seq.);
       ``(3) have the authority to pursue legal, administrative, 
     and other appropriate remedies or approaches to ensure the 
     protection of, and advocacy for, the rights of such 
     individuals within the State or the American Indian 
     consortium who are individuals described in subsection (a);
       ``(4) provide information on and make referrals to programs 
     and services addressing the needs of individuals with 
     disabilities in the State or the American Indian consortium;
       ``(5) develop a statement of objectives and priorities on 
     an annual basis, and provide to the public, including 
     individuals with disabilities and, as appropriate, the 
     individuals' representatives, an opportunity to comment on 
     the objectives and priorities established by, and activities 
     of, the system including--
       ``(A) the objectives and priorities for the activities of 
     the system for each year and the rationale for the 
     establishment of such objectives and priorities; and
       ``(B) the coordination of programs provided through the 
     system under this section with the advocacy programs of the 
     client assistance program under section 112, the State long-
     term care ombudsman program established under the Older 
     Americans Act of 1965 (42 U.S.C. 3001 et seq.), the 
     Developmental Disabilities Assistance and Bill of Rights Act 
     (42 U.S.C. 6000 et seq.), and the Protection and Advocacy for 
     Mentally Ill Individuals Act of 1986 (42 U.S.C. 10801 et 
     seq.);
       ``(6) establish a grievance procedure for clients or 
     prospective clients of the system to ensure that individuals 
     with disabilities are afforded equal opportunity to access 
     the services of the system;
       ``(7) provide assurances to the Commissioner that funds 
     made available under this section will be used to supplement 
     and not supplant the non-Federal funds that would otherwise 
     be made available for the purpose for which Federal funds are 
     provided; and
       ``(8) not use allotments or grants provided under this 
     section in a manner inconsistent with section 5 of the 
     Assisted Suicide Funding Restriction Act of 1997.
       ``(g) Carryover and Direct Payment.--
       ``(1) Direct payment.--Notwithstanding any other provision 
     of law, the Commissioner shall pay directly to any system 
     that complies with the provisions of this section, the amount 
     of the allotment of the State or the grant for the eligible 
     system that serves the American Indian consortium involved 
     under this section, unless the State or American Indian 
     consortium provides otherwise.
       ``(2) Carryover.--Any amount paid to an eligible system 
     that serves a State or American Indian consortium for a 
     fiscal year that remains unobligated at the end of such year 
     shall remain available to such system that serves the State 
     or American Indian consortium for obligation during the next 
     fiscal year for the purposes for which such amount was paid.
       ``(h) Limitation on Disclosure Requirements.--For purposes 
     of any audit, report, or evaluation of the performance of the 
     program established under this section, the Commissioner 
     shall not require such a program to disclose the identity of, 
     or any other personally identifiable information related to, 
     any individual requesting assistance under such program.
       ``(i) Administrative Cost.--In any State in which an 
     eligible system is located within a State agency, a State may 
     use a portion of any allotment under subsection (c) for the 
     cost of the administration of the system required by this 
     section. Such portion may not exceed 5 percent of the 
     allotment.
       ``(j) Delegation.--The Commissioner may delegate the 
     administration of this program to the Commissioner of the 
     Administration on Developmental Disabilities within the 
     Department of Health and Human Services.
       ``(k) Report.--The Commissioner shall annually prepare and 
     submit to the Committee on Education and the Workforce of the 
     House of Representatives and the Committee on Labor and Human 
     Resources of the Senate a report describing the types of 
     services and activities being undertaken by programs funded 
     under this section, the total number of individuals served 
     under this section, the types of disabilities represented by 
     such individuals, and the types of issues being addressed on 
     behalf of such individuals.

[[Page S4118]]

       ``(l) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary for each of the fiscal years 1998 
     through 2004.
       ``(m) Definitions.--As used in this section:
       ``(1) Eligible system.--The term `eligible system' means a 
     protection and advocacy system that is established under part 
     C of the Developmental Disabilities Assistance and Bill of 
     Rights Act (42 U.S.C. 6041 et seq.) and that meets the 
     requirements of subsection (f).
       ``(2) American indian consortium.--The term `American 
     Indian consortium' means a consortium established as 
     described in section 142 of the Developmental Disabilities 
     Assistance and Bill of Rights Act (42 U.S.C. 6042).''.

     SEC. 609. EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS WITH 
                   DISABILITIES.

       Title VI of the Rehabilitation Act of 1973 (29 U.S.C. 795 
     et seq.) is amended to read as follows:
 ``TITLE VI--EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS WITH DISABILITIES

     ``SEC. 601. SHORT TITLE.

       ``This title may be cited as the `Employment Opportunities 
     for Individuals With Disabilities Act'.

``PART A--PROJECTS IN TELECOMMUTING AND SELF-EMPLOYMENT FOR INDIVIDUALS 
                           WITH DISABILITIES

     ``SEC. 611. FINDINGS, POLICIES, AND PURPOSES.

       ``(a) Findings.--Congress makes the following findings:
       ``(1) It is in the best interest of the United States to 
     identify and promote increased employment opportunities for 
     individuals with disabilities.
       ``(2) Telecommuting is one of the most rapidly expanding 
     forms of employment. In 1990 there were 4,000,000 
     telecommuters and that number has risen to 11,100,000 in 
     1997.
       ``(3) It is in the best interest of the United States to 
     ensure that individuals with disabilities have access to 
     telecommuting employment opportunities. It has been estimated 
     that 10 percent of individuals with disabilities, who are 
     unemployed, could benefit from telecommuting opportunities.
       ``(4) It is in the interest of employers to recognize that 
     individuals with disabilities are excellent candidates for 
     telecommuting employment opportunities.
       ``(5) Individuals with disabilities, especially those 
     living in rural areas, often do not have access to accessible 
     transportation, and in such cases telecommuting presents an 
     excellent opportunity for the employment of such individuals.
       ``(6) It is in the best interests of economic development 
     agencies, venture capitalists, and financial institutions for 
     the Federal Government to demonstrate that individuals with 
     disabilities, who wish to become or who are self-employed, 
     can meet the criteria for assistance, investment of capital, 
     and business that other entrepreneurs meet.
       ``(b) Policies.--It is the policy of the United States to--
       ``(1) promote opportunities for individuals with 
     disabilities to--
       ``(A) secure, retain, regain, or advance in employment 
     involving telecommuting;
       ``(B) gain access to employment opportunities; and
       ``(C) demonstrate their abilities, capabilities, interests, 
     and preferences regarding employment in positions that are 
     increasingly being offered to individuals in the workplace; 
     and
       ``(2) promote opportunities for individuals with 
     disabilities to engage in self-employment enterprises that 
     permit these individuals to achieve significant levels of 
     independence, participate in and contribute to the life of 
     their communities, and offer employment opportunities to 
     others.
       ``(c) Purposes.--It is the purpose of this part to--
       ``(1) through the awarding of 1-time, time-limited grants, 
     contracts, or cooperative agreements to public and private 
     entities--
       ``(A) provide funds, in accordance with section 612, to 
     enable individuals with disabilities to identify and secure 
     employment opportunities involving telecommuting; and
       ``(B) encourage employers to become partners in providing 
     telecommuting placements for individuals with disabilities 
     through the involvement of such employers in telecommuting 
     projects that continue and expand opportunities for the 
     provision of telecommuting placements to individuals with 
     disabilities beyond those opportunities that are currently 
     facilitated by the telecommuting projects; and
       ``(2) through the awarding of 1-time, time-limited grants, 
     contracts, cooperative agreements, or other appropriate 
     mechanisms of providing assistance to public or private 
     entities--
       ``(A) assist individuals with disabilities to engage in 
     self-employment enterprises in accordance with section 613; 
     and
       ``(B) encourage entities to assist more individuals with 
     disabilities to engage in self-employment enterprises.

     ``SEC. 612. PROJECTS IN TELECOMMUTING FOR INDIVIDUALS WITH 
                   DISABILITIES.

       ``(a) In General.--The Commissioner shall, on a competitive 
     basis, award 1-time, time-limited grants, contracts, or 
     cooperative agreements to eligible entities for the 
     establishment and operation of projects in telecommuting for 
     individuals with disabilities.
       ``(b) Eligible Entities.--To be eligible to receive a 
     grant, contract, or cooperative agreement under subsection 
     (a) an entity shall--
       ``(1) be--
       ``(A) an entity carrying out a Project With Industry 
     described in part B;
       ``(B) a designated State agency;
       ``(C) a statewide workforce investment partnership or local 
     workforce investment partnership;
       ``(D) a public educational agency;
       ``(E) a training institution, which may include an 
     institution of higher education;
       ``(F) a private organization, with priority given to 
     organizations of or for individuals with disabilities;
       ``(G) a public or private employer;
       ``(H) any other entity that the Commissioner determines to 
     be appropriate; or
       ``(I) a combination or consortium of the entities described 
     in subparagraphs (A) through (H);
       ``(2) have 3 or more years of experience in assisting 
     individuals with disabilities in securing, retaining, 
     regaining, or advancing in employment;
       ``(3) demonstrate that such entity has the capacity to 
     secure full- and part-time employment involving telecommuting 
     for individuals with disabilities; and
       ``(4) submit an application that meets the requirements of 
     subsection (c).
       ``(c) Application Requirements.--To be eligible to receive 
     a grant, contract, or cooperative agreement under subsection 
     (a), an entity shall submit to the Commissioner at such time, 
     in such manner, and containing such information concerning 
     the telecommuting project to be funded under the grant, 
     contract, or agreement as the Commissioner may require, 
     including--
       ``(1) a description of how and the extent to which the 
     applicant meets the requirement of subsection (b)(2);
       ``(2) with respect to any partners who will participate in 
     the implementation of activities under the telecommuting 
     project, a description of--
       ``(A) the identity of such partners; and
       ``(B) the roles and responsibilities of each partner in 
     preparing the application, and if funded, the roles and 
     responsibility of each partner during the telecommuting 
     project;
       ``(3) a description of the geographic region that will be 
     the focus of activity under the telecommuting project;
       ``(4) a projection for each year of a 3-year period of the 
     grant, contract, or agreement, of the number of individuals 
     with disabilities who will be employed as the result of the 
     assistance provided by the telecommuting project;
       ``(5) with respect to any employers that have indicated an 
     interest in offering telecommuting employment opportunities 
     to individuals with disabilities, a description of--
       ``(A) the identity of such employers; and
       ``(B) the manner in which additional employers would be 
     recruited under the telecommuting project;
       ``(6) a description of the manner in which individuals with 
     disabilities will be identified and selected to participate 
     in the telecommuting project;
       ``(7) a description of the jobs that will be targeted by 
     the telecommuting project;
       ``(8) a description of the process by which individuals 
     with disabilities will be matched with employers for 
     telecommuting placements;
       ``(9) a description of the manner in which the project will 
     become self-sustaining in the third year of the telecommuting 
     project; and
       ``(10) a description of the nature and amount of funding, 
     including in-kind support, other than funds received under 
     this part, that will be available to be used by the 
     telecommuting project.
       ``(d) Use of Funds.--Amounts received under a grant, 
     contract, or cooperative agreement under subsection (a) shall 
     be used for--
       ``(1) the recruitment of individuals with disabilities for 
     telecommuting placements;
       ``(2) the conduct of marketing activities with respect to 
     employers;
       ``(3) the purchase of training services for an individual 
     with a disability who is going to assume a telecommuting 
     placement;
       ``(4) the purchase of equipment, materials, telephone 
     lines, auxiliary aids, and services related to telecommuting 
     placements;
       ``(5) the provision of orientation services and training to 
     the supervisors of employers participating in the project and 
     to co-workers of individuals with disabilities who are 
     selected for telecommuting placements;
       ``(6) the provision of technical assistance to employers, 
     including technical assistance regarding reasonable 
     accommodations with regard to individuals with disabilities 
     participating in telecommuting placements; and
       ``(7) other uses determined appropriate by the 
     Commissioner.
       ``(e) Project Requirements.--Telecommuting projects funded 
     under this section shall--
       ``(1) establish criteria for safety with regard to the 
     telecommuting work space, which at a minimum meet guidelines 
     established by the Occupational Safety and Health 
     Administration for a work space of comparable size and 
     function;
       ``(2) on an annual basis, enter into agreements with the 
     Commissioner that contain goals concerning the number of 
     individuals with disabilities that the project will place in 
     telecommuting positions;
       ``(3) establish procedures for ensuring that prospective 
     employers and individuals with disabilities, who are to 
     assume telecommuting placements, have a clear understanding

[[Page S4119]]

     of how the individual's work performance will be monitored 
     and evaluated by the employer;
       ``(4) identify and make available support services for 
     individuals with disabilities in telecommuting placements;
       ``(5) develop procedures that allow the telecommuting 
     project, the employer, and the individual with a disability 
     to reach agreement on their respective responsibilities with 
     regard to establishing and maintaining the telecommuting 
     placement; and
       ``(6) for each year of a telecommuting project, submit an 
     annual report to the Commissioner concerning--
       ``(A) the number of individuals with disabilities placed in 
     telecommuting positions and whether the goal described in the 
     agreement entered into under paragraph (2) was met;
       ``(B) the number of individuals with disabilities employed 
     as salaried employees and their annual salaries;
       ``(C) the number of individuals with disabilities employed 
     as independent contractors and their annual incomes;
       ``(D) the number of individuals with disabilities that 
     received benefits from their employers;
       ``(E) the number of individuals with disabilities in 
     telecommuting placements still working after--
       ``(i) 6 months; and
       ``(ii) 12 months; and
       ``(F) any reports filed with the Occupational Safety and 
     Health Administration.
       ``(f) Limitations.--
       ``(1) Period of award.--A grant, contract, or cooperative 
     agreement under subsection (a) shall be for a 3-year period.
       ``(2) Amount.--The amount of a grant, contract, or 
     cooperative agreement under subsection (a) shall not be less 
     than $250,000 nor more than $1,000,000.

     ``SEC. 613. PROJECTS IN SELF-EMPLOYMENT FOR INDIVIDUALS WITH 
                   DISABILITIES.

       ``(a) In General.--The Commissioner shall, on a competitive 
     basis, award 1-time, time-limited grants, contracts, or 
     cooperative agreements to eligible entities for the 
     establishment and operation of projects in self-employment 
     for individuals with disabilities.
       ``(b) Eligible Entities.--To be eligible to receive a 
     grant, contract, or cooperative agreement under subsection 
     (a) an entity shall--
       ``(1) be--
       ``(A) a financial institution;
       ``(B) an economic development agency;
       ``(C) a venture capitalist;
       ``(D) an entity carrying out a Project With Industry 
     described in part B;
       ``(E) a designated State agency, or other public entity;
       ``(F) a private organization, including employers and 
     organizations related to individuals with disabilities;
       ``(G) any other entity that the Commissioner determines to 
     be appropriate; or
       ``(H) a combination or consortium of the entities described 
     in subparagraphs (A) through (G);
       ``(2) demonstrate that such entity has the capacity to 
     assist clients, including clients with disabilities, to 
     successfully engage in self-employment enterprises; and
       ``(3) submit an application that meets the requirements of 
     subsection (c).
       ``(c) Application Requirements.--To be eligible to receive 
     a grant, contract, or cooperative agreement under subsection 
     (a), an entity shall submit to the Commissioner at such time, 
     in such manner, and containing such information concerning 
     the self-employment project to be funded under the grant, 
     contract, or agreement as the Commissioner may require, 
     including--
       ``(1) a description of how and the extent to which the 
     applicant has assisted individuals, including individuals 
     with disabilities, if appropriate, to successfully engage in 
     self-employment enterprises;
       ``(2) with respect to any partners who will participate in 
     the implementation of activities under the self-employment 
     project, a description of--
       ``(A) the identity of such partners; and
       ``(B) the roles and responsibilities of each partner in 
     preparing the application, and if funded, the roles and 
     responsibility of each partner during the self-employment 
     project;
       ``(3) a description of the geographic region that will be 
     the focus of activity in the self-employment project;
       ``(4) a projection for each year of a 3-year period of the 
     grant, contract, or agreement, of the number of clients who 
     will be assisted to engage in self-employment enterprises 
     through the self-employment project;
       ``(5) a description of the manner in which potential 
     clients will be identified and selected to be assisted by the 
     self-employment project;
       ``(6) a description of the manner in which self-employment 
     enterprises (or market niches) will be identified for the 
     geographic areas to be targeted in the self-employment 
     project;
       ``(7) a description of the process by which prospective 
     clients will be matched with self-employment opportunities;
       ``(8) a description of the manner in which the project will 
     become self-sustaining in the third year of the self-
     employment project; and
       ``(9) a description of the nature and amount of funding, 
     including in-kind support, other than funds received under 
     this part, that will be available to be used during the self-
     employment project.
       ``(d) Use of Funds.--Amounts received under a grant, 
     contract, or cooperative agreement under subsection (a) shall 
     be used--
       ``(1) for the preparation of marketing analyses to identify 
     self-employment opportunities;
       ``(2) for the conduct of marketing activities with respect 
     to financial institutions or venture capitalists concerning 
     the benefits of investing in individuals with disabilities 
     who are engaged in self-employment enterprises;
       ``(3) for the conduct of marketing activities with respect 
     to potential clients who engage in or might engage in self-
     employment enterprises;
       ``(4) for the provision of training for clients to be 
     assisted through the project who seek to engage or are 
     engaging in self-employment enterprises;
       ``(5) to cover the costs of business expenses specifically 
     related to an individual's disability;
       ``(6) to provide assistance for clients in developing 
     business plans for capital investment;
       ``(7) to provide assistance for clients in securing capital 
     to engage in a self-employment enterprise;
       ``(8) to provide technical assistance to clients engaged in 
     self-employment enterprises who seek such assistance in order 
     to sustain or expand their enterprises; and
       ``(9) for other uses as determined appropriate by the 
     Commissioner.
       ``(e) Project Requirements.--Self-employment projects 
     funded under this section shall--
       ``(1) establish criteria for and apply such criteria in 
     selecting clients to be assisted through the project;
       ``(2) on an annual basis, enter into agreements with the 
     Commissioner that contain goals concerning the number of 
     individuals with disabilities that the project will assist in 
     starting and sustaining self-employment enterprises;
       ``(3) establish and apply criteria to determine whether an 
     enterprise is a viable option in which to invest project 
     funds;
       ``(4) establish and apply criteria to determine when and if 
     the project would provide assistance in sustaining an ongoing 
     enterprise engaged in by a client or potential client;
       ``(5) establish and apply criteria to determine when and if 
     the project would provide assistance in expanding an ongoing 
     enterprise engaged in by a client or potential client;
       ``(6) establish and apply procedures to ensure that a 
     potential client has a clear understanding of the scope and 
     limits of assistance from the project that will be applicable 
     in such client's case;
       ``(7) develop procedures, which include a written 
     agreement, that provide for the documentation of the 
     respective responsibilities of the self-employment project 
     and any client with regard to the creation, maintenance, or 
     expansion of the client's self-employment enterprise; and
       ``(8) with respect to the project, submit a report to the 
     Commissioner--
       ``(A) for each project year, concerning the number of 
     clients assisted by the project who are engaging in self-
     employment enterprises and whether the goal described in the 
     agreement entered into under paragraph (2) was met; and
       ``(B) concerning the number of clients assisted by the 
     project who are still engaged in such an enterprise on the 
     date that is--
       ``(i) 6 months after the date on which assistance provided 
     by the project was terminated; and
       ``(ii) 12 months after the date on which assistance 
     provided by the project was terminated.
       ``(f) Duration of Awards.--A grant, contract, or 
     cooperative agreement under subsection (a) shall be for a 3-
     year period.
       ``(g) Definition.--For the purpose of this section, the 
     term `client' means 1 or more individuals with disabilities 
     who engage in or seek to engage in a self-employment 
     enterprise.

     ``SEC. 614. DISCRETIONARY AUTHORITY FOR DUAL-PURPOSE 
                   APPLICATIONS.

       ``(a) In General.--The Commissioner may establish 
     procedures to permit applicants for grants, contracts, or 
     cooperative agreements under this part to submit applications 
     that serve dual purposes, so long as such applications meet 
     the requirements of sections 612 and 613.
       ``(b) Amount of Assistance.--In a case described in 
     subsection (a), the minimum amount of a grant, contract, or 
     cooperative agreement awarded under a dual-purpose 
     application may, at the discretion of the Commissioner, 
     exceed the limitations described in section 612(f)(2).

     ``SEC. 615. AUTHORIZATION OF APPROPRIATIONS.

       ``There is authorized to be appropriated to carry out this 
     part, $10,000,000 for fiscal year 1998, and such sums as may 
     be necessary for each of the fiscal years 1999 through 2004.

                    ``Part B--Projects With Industry


                        ``projects with industry

       ``Sec. 621. (a)(1) The purpose of this part is to create 
     and expand job and career opportunities for individuals with 
     disabilities in the competitive labor market by engaging the 
     talent and leadership of private industry as partners in the 
     rehabilitation process, to identify competitive job and 
     career opportunities and the skills needed to perform such 
     jobs, to create practical job and career readiness and 
     training programs, and to provide job placements and career 
     advancement.

[[Page S4120]]

       ``(2) The Commissioner, in consultation with the Secretary 
     of Labor and with designated State units, may award grants to 
     individual employers, community rehabilitation program 
     providers, labor unions, trade associations, Indian tribes, 
     tribal organizations, designated State units, and other 
     entities to establish jointly financed Projects With Industry 
     to create and expand job and career opportunities for 
     individuals with disabilities, which projects shall--
       ``(A) provide for the establishment of business advisory 
     councils, that shall--
       ``(i) be comprised of--
       ``(I) representatives of private industry, business 
     concerns, and organized labor;
       ``(II) individuals with disabilities and representatives of 
     individuals with disabilities; and
       ``(III) a representative of the appropriate designated 
     State unit;
       ``(ii) identify job and career availability within the 
     community, consistent with the current and projected local 
     employment opportunities identified by the local workforce 
     investment partnership for the community under section 
     308(e)(6) of the Workforce Investment Partnership Act of 
     1998;
       ``(iii) identify the skills necessary to perform the jobs 
     and careers identified; and
       ``(iv) prescribe training programs designed to develop 
     appropriate job and career skills, or job placement programs 
     designed to identify and develop job placement and career 
     advancement opportunities, for individuals with disabilities 
     in fields related to the job and career availability 
     identified under clause (ii);
       ``(B) provide job development, job placement, and career 
     advancement services;
       ``(C) to the extent appropriate, provide for--
       ``(i) training in realistic work settings in order to 
     prepare individuals with disabilities for employment and 
     career advancement in the competitive market; and
       ``(ii) the modification of any facilities or equipment of 
     the employer involved that are used primarily by individuals 
     with disabilities, except that a project shall not be 
     required to provide for such modification if the modification 
     is required as a reasonable accommodation under the Americans 
     with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.); and
       ``(D) provide individuals with disabilities with such 
     support services as may be required in order to maintain the 
     employment and career advancement for which the individuals 
     have received training under this part.
       ``(3)(A) An individual shall be eligible for services 
     described in paragraph (2) if the individual is determined to 
     be an individual described in section 102(a)(1), and if the 
     determination is made in a manner consistent with section 
     102(a).
       ``(B) Such a determination may be made by the recipient of 
     a grant under this part, to the extent the determination is 
     appropriate and available and consistent with the 
     requirements of section 102(a).
       ``(4) The Commissioner shall enter into an agreement with 
     the grant recipient regarding the establishment of the 
     project. Any agreement shall be jointly developed by the 
     Commissioner, the grant recipient, and, to the extent 
     practicable, the appropriate designated State unit and the 
     individuals with disabilities (or the individuals' 
     representatives) involved. Such agreements shall specify the 
     terms of training and employment under the project, provide 
     for the payment by the Commissioner of part of the costs of 
     the project (in accordance with subsection (c)), and contain 
     the items required under subsection (b) and such other 
     provisions as the parties to the agreement consider to be 
     appropriate.
       ``(5) Any agreement shall include a description of a plan 
     to annually conduct a review and evaluation of the operation 
     of the project in accordance with standards developed by the 
     Commissioner under subsection (d), and, in conducting the 
     review and evaluation, to collect data and information of the 
     type described in subparagraphs (A) through (C) of section 
     101(a)(10), as determined to be appropriate by the 
     Commissioner.
       ``(6) The Commissioner may include, as part of agreements 
     with grant recipients, authority for such grant recipients to 
     provide technical assistance to--
       ``(A) assist employers in hiring individuals with 
     disabilities; or
       ``(B) improve or develop relationships between--
       ``(i) grant recipients or prospective grant recipients; and
       ``(ii) employers or organized labor; or
       ``(C) assist employers in understanding and meeting the 
     requirements of the Americans with Disabilities Act of 1990 
     (42 U.S.C. 12101 et seq.) as the Act relates to employment of 
     individuals with disabilities.
       ``(b) No payment shall be made by the Commissioner under 
     any agreement with a grant recipient entered into under 
     subsection (a) unless such agreement--
       ``(1) provides an assurance that individuals with 
     disabilities placed under such agreement shall receive at 
     least the applicable minimum wage;
       ``(2) provides an assurance that any individual with a 
     disability placed under this part shall be afforded terms and 
     benefits of employment equal to terms and benefits that are 
     afforded to the similarly situated nondisabled co-workers of 
     the individual, and that such individuals with disabilities 
     shall not be segregated from their co-workers; and
       ``(3) provides an assurance that an annual evaluation 
     report containing information specified under subsection 
     (a)(5) shall be submitted as determined to be appropriate by 
     the Commissioner.
       ``(c) Payments under this section with respect to any 
     project may not exceed 80 per centum of the costs of the 
     project.
       ``(d)(1) The Commissioner shall develop standards for the 
     evaluation described in subsection (a)(5) and shall review 
     and revise the evaluation standards as necessary, subject to 
     paragraphs (2) and (3).
       ``(2) In revising the standards for evaluation to be used 
     by the grant recipients, the Commissioner shall obtain and 
     consider recommendations for such standards from State 
     vocational rehabilitation agencies, current and former grant 
     recipients, professional organizations representing business 
     and industry, organizations representing individuals with 
     disabilities, individuals served by grant recipients, 
     organizations representing community rehabilitation program 
     providers, and labor organizations.
       ``(3) No standards may be established under this subsection 
     unless the standards are approved by the National Council on 
     Disability. The Council shall be afforded adequate time to 
     review and approve the standards.
       ``(e)(1)(A) A grant may be awarded under this section for a 
     period of up to 5 years and such grant may be renewed.
       ``(B) Grants under this section shall be awarded on a 
     competitive basis. To be eligible to receive such a grant, a 
     prospective grant recipient shall submit an application to 
     the Commissioner at such time, in such manner, and containing 
     such information as the Commissioner may require.
       ``(2) The Commissioner shall, to the extent practicable, 
     ensure an equitable distribution of payments made under this 
     section among the States. To the extent funds are available, 
     the Commissioner shall award grants under this section to new 
     projects that will serve individuals with disabilities in 
     States, portions of States, Indian tribes, or tribal 
     organizations, that are currently unserved or underserved by 
     projects.
       ``(f)(1) The Commissioner shall, as necessary, develop and 
     publish in the Federal Register, in final form, indicators of 
     what constitutes minimum compliance consistent with the 
     evaluation standards under subsection (d)(1).
       ``(2) Each grant recipient shall report to the Commissioner 
     at the end of each project year the extent to which the grant 
     recipient is in compliance with the evaluation standards.
       ``(3)(A) The Commissioner shall annually conduct on-site 
     compliance reviews of at least 15 percent of grant 
     recipients. The Commissioner shall select grant recipients 
     for review on a random basis.
       ``(B) The Commissioner shall use the indicators in 
     determining compliance with the evaluation standards.
       ``(C) The Commissioner shall ensure that at least one 
     member of a team conducting such a review shall be an 
     individual who--
       ``(i) is not an employee of the Federal Government; and
       ``(ii) has experience or expertise in conducting projects.
       ``(D) The Commissioner shall ensure that--
       ``(i) a representative of the appropriate designated State 
     unit shall participate in the review; and
       ``(ii) no person shall participate in the review of a grant 
     recipient if--
       ``(I) the grant recipient provides any direct financial 
     benefit to the reviewer; or
       ``(II) participation in the review would give the 
     appearance of a conflict of interest.
       ``(4) In making a determination concerning any subsequent 
     grant under this section, the Commissioner shall consider the 
     past performance of the applicant, if applicable. The 
     Commissioner shall use compliance indicators developed under 
     this subsection that are consistent with program evaluation 
     standards developed under subsection (d) to assess minimum 
     project performance for purposes of making continuation 
     awards in the third, fourth, and fifth years.
       ``(5) Each fiscal year the Commissioner shall include in 
     the annual report to Congress required by section 13 an 
     analysis of the extent to which grant recipients have 
     complied with the evaluation standards. The Commissioner may 
     identify individual grant recipients in the analysis. In 
     addition, the Commissioner shall report the results of onsite 
     compliance reviews, identifying individual grant recipients.
       ``(g) The Commissioner may provide, directly or by way of 
     grant, contract, or cooperative agreement, technical 
     assistance to--
       ``(1) entities conducting projects for the purpose of 
     assisting such entities in--
       ``(A) the improvement of or the development of 
     relationships with private industry or labor; or
       ``(B) the improvement of relationships with State 
     vocational rehabilitation agencies; and
       ``(2) entities planning the development of new projects.
       ``(h) As used in this section:
       ``(1) The term `agreement' means an agreement described in 
     subsection (a)(4).
       ``(2) The term `project' means a Project With Industry 
     established under subsection (a)(2).
       ``(3) The term `grant recipient' means a recipient of a 
     grant under subsection (a)(2).

                   ``authorization of appropriations

       ``Sec. 622. There are authorized to be appropriated to 
     carry out the provisions of this part, such sums as may be 
     necessary for each of fiscal years 1998 through 2004.


[[Page S4121]]



 ``Part C--Supported Employment Services for Individuals With the Most 
                        Significant Disabilities

     ``SEC. 631. PURPOSE.

       ``It is the purpose of this part to authorize allotments, 
     in addition to grants for vocational rehabilitation services 
     under title I, to assist States in developing collaborative 
     programs with appropriate entities to provide supported 
     employment services for individuals with the most significant 
     disabilities to enable such individuals to achieve the 
     employment outcome of supported employment.

     ``SEC. 632. ALLOTMENTS.

       ``(a) In General.--
       ``(1) States.--The Secretary shall allot the sums 
     appropriated for each fiscal year to carry out this part 
     among the States on the basis of relative population of each 
     State, except that--
       ``(A) no State shall receive less than $250,000, or one-
     third of one percent of the sums appropriated for the fiscal 
     year for which the allotment is made, whichever is greater; 
     and
       ``(B) if the sums appropriated to carry out this part for 
     the fiscal year exceed by $1,000,000 or more the sums 
     appropriated to carry out this part in fiscal year 1992, no 
     State shall receive less than $300,000, or one-third of one 
     percent of the sums appropriated for the fiscal year for 
     which the allotment is made, whichever is greater.
       ``(2) Certain territories.--
       ``(A) In general.--For the purposes of this subsection, 
     Guam, American Samoa, the United States Virgin Islands, and 
     the Commonwealth of the Northern Mariana Islands shall not be 
     considered to be States.
       ``(B) Allotment.--Each jurisdiction described in 
     subparagraph (A) shall be allotted not less than one-eighth 
     of one percent of the amounts appropriated for the fiscal 
     year for which the allotment is made.
       ``(b) Reallotment.--Whenever the Commissioner determines 
     that any amount of an allotment to a State for any fiscal 
     year will not be expended by such State for carrying out the 
     provisions of this part, the Commissioner shall make such 
     amount available for carrying out the provisions of this part 
     to one or more of the States that the Commissioner determines 
     will be able to use additional amounts during such year for 
     carrying out such provisions. Any amount made available to a 
     State for any fiscal year pursuant to the preceding sentence 
     shall, for the purposes of this section, be regarded as an 
     increase in the allotment of the State (as determined under 
     the preceding provisions of this section) for such year.

     ``SEC. 633. AVAILABILITY OF SERVICES.

       ``Funds provided under this part may be used to provide 
     supported employment services to individuals who are eligible 
     under this part. Funds provided under this part, or title I, 
     may not be used to provide extended services to individuals 
     who are eligible under this part or title I.

     ``SEC. 634. ELIGIBILITY.

       ``An individual shall be eligible under this part to 
     receive supported employment services authorized under this 
     Act if--
       ``(1) the individual is eligible for vocational 
     rehabilitation services;
       ``(2) the individual is determined to be an individual with 
     a most significant disability; and
       ``(3) a comprehensive assessment of rehabilitation needs of 
     the individual described in section 7(2)(B), including an 
     evaluation of rehabilitation, career, and job needs, 
     identifies supported employment as the appropriate employment 
     outcome for the individual.

     ``SEC. 635. STATE PLAN.

       ``(a) State Plan Supplements.--To be eligible for an 
     allotment under this part, a State shall submit to the 
     Commissioner, as part of the State plan under section 101, a 
     State plan supplement for providing supported employment 
     services authorized under this Act to individuals who are 
     eligible under this Act to receive the services. Each State 
     shall make such annual revisions in the plan supplement as 
     may be necessary.
       ``(b) Contents.--Each such plan supplement shall--
       ``(1) designate each designated State agency as the agency 
     to administer the program assisted under this part;
       ``(2) summarize the results of the comprehensive, statewide 
     assessment conducted under section 101(a)(15)(A)(i), with 
     respect to the rehabilitation needs of individuals with 
     significant disabilities and the need for supported 
     employment services, including needs related to coordination;
       ``(3) describe the quality, scope, and extent of supported 
     employment services authorized under this Act to be provided 
     to individuals who are eligible under this Act to receive the 
     services and specify the goals and plans of the State with 
     respect to the distribution of funds received under section 
     632;
       ``(4) demonstrate evidence of the efforts of the designated 
     State agency to identify and make arrangements (including 
     entering into cooperative agreements) with other State 
     agencies and other appropriate entities to assist in the 
     provision of supported employment services;
       ``(5) demonstrate evidence of the efforts of the designated 
     State agency to identify and make arrangements (including 
     entering into cooperative agreements) with other public or 
     nonprofit agencies or organizations within the State, 
     employers, natural supports, and other entities with respect 
     to the provision of extended services;
       ``(6) provide assurances that--
       ``(A) funds made available under this part will only be 
     used to provide supported employment services authorized 
     under this Act to individuals who are eligible under this 
     part to receive the services;
       ``(B) the comprehensive assessments of individuals with 
     significant disabilities conducted under section 102(b)(1) 
     and funded under title I will include consideration of 
     supported employment as an appropriate employment outcome;
       ``(C) an individualized rehabilitation employment plan, as 
     required by section 102, will be developed and updated using 
     funds under title I in order to--
       ``(i) specify the supported employment services to be 
     provided;
       ``(ii) specify the expected extended services needed; and
       ``(iii) identify the source of extended services, which may 
     include natural supports, or to the extent that it is not 
     possible to identify the source of extended services at the 
     time the individualized rehabilitation employment plan is 
     developed, a statement describing the basis for concluding 
     that there is a reasonable expectation that such sources will 
     become available;
       ``(D) the State will use funds provided under this part 
     only to supplement, and not supplant, the funds provided 
     under title I, in providing supported employment services 
     specified in the individualized rehabilitation employment 
     plan;
       ``(E) services provided under an individualized 
     rehabilitation employment plan will be coordinated with 
     services provided under other individualized plans 
     established under other Federal or State programs;
       ``(F) to the extent jobs skills training is provided, the 
     training will be provided onsite; and
       ``(G) supported employment services will include placement 
     in an integrated setting for the maximum number of hours 
     possible based on the unique strengths, resources, 
     priorities, concerns, abilities, capabilities, interests, and 
     informed choice of individuals with the most significant 
     disabilities;
       ``(7) provide assurances that the State agencies designated 
     under paragraph (1) will expend not more than 5 percent of 
     the allotment of the State under this part for administrative 
     costs of carrying out this part; and
       ``(8) contain such other information and be submitted in 
     such manner as the Commissioner may require.

     ``SEC. 636. RESTRICTION.

       ``Each State agency designated under section 635(b)(1) 
     shall collect the information required by section 101(a)(10) 
     separately for eligible individuals receiving supported 
     employment services under this part and for eligible 
     individuals receiving supported employment services under 
     title I.

     ``SEC. 637. SAVINGS PROVISION.

       ``(a) Supported Employment Services.--Nothing in this Act 
     shall be construed to prohibit a State from providing 
     supported employment services in accordance with the State 
     plan submitted under section 101 by using funds made 
     available through a State allotment under section 110.
       ``(b) Postemployment Services.--Nothing in this part shall 
     be construed to prohibit a State from providing discrete 
     postemployment services in accordance with the State plan 
     submitted under section 101 by using funds made available 
     through a State allotment under section 110 to an individual 
     who is eligible under this part.

     ``SEC. 638. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     part such sums as may be necessary for each of fiscal years 
     1998 through 2004.''.

     SEC. 610. INDEPENDENT LIVING SERVICES AND CENTERS FOR 
                   INDEPENDENT LIVING.

       Title VII of the Rehabilitation Act of 1973 (29 U.S.C. 796 
     et seq.) is amended to read as follows:
 ``TITLE VII--INDEPENDENT LIVING SERVICES AND CENTERS FOR INDEPENDENT 
                                 LIVING

         ``CHAPTER 1--INDIVIDUALS WITH SIGNIFICANT DISABILITIES

                      ``PART A--GENERAL PROVISIONS

     ``SEC. 701. PURPOSE.

       ``The purpose of this chapter is to promote a philosophy of 
     independent living, including a philosophy of consumer 
     control, peer support, self-help, self-determination, equal 
     access, and individual and system advocacy, in order to 
     maximize the leadership, empowerment, independence, and 
     productivity of individuals with disabilities, and the 
     integration and full inclusion of individuals with 
     disabilities into the mainstream of American society, by--
       ``(1) providing financial assistance to States for 
     providing, expanding, and improving the provision of 
     independent living services;
       ``(2) providing financial assistance to develop and support 
     statewide networks of centers for independent living; and
       ``(3) providing financial assistance to States for 
     improving working relationships among State independent 
     living rehabilitation service programs, centers for 
     independent living, Statewide Independent Living Councils 
     established under section 705, State vocational 
     rehabilitation programs receiving assistance under title I, 
     State programs of supported employment services receiving 
     assistance under part C of title VI, client assistance 
     programs receiving assistance under

[[Page S4122]]

     section 112, programs funded under other titles of this Act, 
     programs funded under other Federal law, and programs funded 
     through non-Federal sources.

     ``SEC. 702. DEFINITIONS.

       ``As used in this chapter:
       ``(1) Center for independent living.--The term `center for 
     independent living' means a consumer-controlled, community-
     based, cross-disability, nonresidential private nonprofit 
     agency that--
       ``(A) is designed and operated within a local community by 
     individuals with disabilities; and
       ``(B) provides an array of independent living services.
       ``(2) Consumer control.--The term `consumer control' means, 
     with respect to a center for independent living, that the 
     center vests power and authority in individuals with 
     disabilities.

     ``SEC. 703. ELIGIBILITY FOR RECEIPT OF SERVICES.

       ``Services may be provided under this chapter to any 
     individual with a significant disability, as defined in 
     section 7(21)(B).

     ``SEC. 704. STATE PLAN.

       ``(a) In General.--
       ``(1) Requirement.--To be eligible to receive financial 
     assistance under this chapter, a State shall submit to the 
     Commissioner, and obtain approval of, a State plan containing 
     such provisions as the Commissioner may require, including, 
     at a minimum, the provisions required in this section.
       ``(2) Joint development.--The plan under paragraph (1) 
     shall be jointly developed and signed by--
       ``(A) the director of the designated State unit; and
       ``(B) the chairperson of the Statewide Independent Living 
     Council, acting on behalf of and at the direction of the 
     Council.
       ``(3) Periodic review and revision.--The plan shall provide 
     for the review and revision of the plan, not less than once 
     every 3 years, to ensure the existence of appropriate 
     planning, financial support and coordination, and other 
     assistance to appropriately address, on a statewide and 
     comprehensive basis, needs in the State for--
       ``(A) the provision of State independent living services;
       ``(B) the development and support of a statewide network of 
     centers for independent living; and
       ``(C) working relationships between--
       ``(i) programs providing independent living services and 
     independent living centers; and
       ``(ii) the vocational rehabilitation program established 
     under title I, and other programs providing services for 
     individuals with disabilities.
       ``(4) Date of submission.--The State shall submit the plan 
     to the Commissioner 90 days before the completion date of the 
     preceding plan. If a State fails to submit such a plan that 
     complies with the requirements of this section, the 
     Commissioner may withhold financial assistance under this 
     chapter until such time as the State submits such a plan.
       ``(b) Statewide Independent Living Council.--The plan shall 
     provide for the establishment of a Statewide Independent 
     Living Council in accordance with section 705.
       ``(c) Designation of State Unit.--The plan shall designate 
     the designated State unit of such State as the agency that, 
     on behalf of the State, shall--
       ``(1) receive, account for, and disburse funds received by 
     the State under this chapter based on the plan;
       ``(2) provide administrative support services for a program 
     under part B, and a program under part C in a case in which 
     the program is administered by the State under section 723;
       ``(3) keep such records and afford such access to such 
     records as the Commissioner finds to be necessary with 
     respect to the programs; and
       ``(4) submit such additional information or provide such 
     assurances as the Commissioner may require with respect to 
     the programs.
       ``(d) Objectives.--The plan shall--
       ``(1) specify the objectives to be achieved under the plan 
     and establish timelines for the achievement of the 
     objectives; and
       ``(2) explain how such objectives are consistent with and 
     further the purpose of this chapter.
       ``(e) Independent Living Services.--The plan shall provide 
     that the State will provide independent living services under 
     this chapter to individuals with significant disabilities, 
     and will provide the services to such an individual in 
     accordance with an independent living plan mutually agreed 
     upon by an appropriate staff member of the service provider 
     and the individual, unless the individual signs a waiver 
     stating that such a plan is unnecessary.
       ``(f) Scope and Arrangements.--The plan shall describe the 
     extent and scope of independent living services to be 
     provided under this chapter to meet such objectives. If the 
     State makes arrangements, by grant or contract, for providing 
     such services, such arrangements shall be described in the 
     plan.
       ``(g) Network.--The plan shall set forth a design for the 
     establishment of a statewide network of centers for 
     independent living that comply with the standards and 
     assurances set forth in section 725.
       ``(h) Centers.--In States in which State funding for 
     centers for independent living equals or exceeds the amount 
     of funds allotted to the State under part C, as provided in 
     section 723, the plan shall include policies, practices, and 
     procedures governing the awarding of grants to centers for 
     independent living and oversight of such centers consistent 
     with section 723.
       ``(i) Cooperation, Coordination, and Working Relationships 
     Among Various Entities.--The plan shall set forth the steps 
     that will be taken to maximize the cooperation, coordination, 
     and working relationships among--
       ``(1) the independent living rehabilitation service 
     program, the Statewide Independent Living Council, and 
     centers for independent living; and
       ``(2) the designated State unit, other State agencies 
     represented on such Council, other councils that address the 
     needs of specific disability populations and issues, and 
     other public and private entities determined to be 
     appropriate by the Council.
       ``(j) Coordination of Services.--The plan shall describe 
     how services funded under this chapter will be coordinated 
     with, and complement, other services, in order to avoid 
     unnecessary duplication with other Federal, State, and local 
     programs.
       ``(k) Coordination Between Federal and State Sources.--The 
     plan shall describe efforts to coordinate Federal and State 
     funding for centers for independent living and independent 
     living services.
       ``(l) Outreach.--With respect to services and centers 
     funded under this chapter, the plan shall set forth steps to 
     be taken regarding outreach to populations that are unserved 
     or underserved by programs under this title, including 
     minority groups and urban and rural populations.
       ``(m) Requirements.--The plan shall provide satisfactory 
     assurances that all recipients of financial assistance under 
     this chapter will--
       ``(1) notify all individuals seeking or receiving services 
     under this chapter about the availability of the client 
     assistance program under section 112, the purposes of the 
     services provided under such program, and how to contact such 
     program;
       ``(2) take affirmative action to employ and advance in 
     employment qualified individuals with disabilities on the 
     same terms and conditions required with respect to the 
     employment of such individuals under the provisions of 
     section 503;
       ``(3) adopt such fiscal control and fund accounting 
     procedures as may be necessary to ensure the proper 
     disbursement of and accounting for funds paid to the State 
     under this chapter;
       ``(4)(A) maintain records that fully disclose--
       ``(i) the amount and disposition by such recipient of the 
     proceeds of such financial assistance;
       ``(ii) the total cost of the project or undertaking in 
     connection with which such financial assistance is given or 
     used; and
       ``(iii) the amount of that portion of the cost of the 
     project or undertaking supplied by other sources;
       ``(B) maintain such other records as the Commissioner 
     determines to be appropriate to facilitate an effective 
     audit;
       ``(C) afford such access to records maintained under 
     subparagraphs (A) and (B) as the Commissioner determines to 
     be appropriate; and
       ``(D) submit such reports with respect to such records as 
     the Commissioner determines to be appropriate;
       ``(5) provide access to the Commissioner and the 
     Comptroller General or any of their duly authorized 
     representatives, for the purpose of conducting audits and 
     examinations, of any books, documents, papers, and records of 
     the recipients that are pertinent to the financial assistance 
     received under this chapter; and
       ``(6) provide for public hearings regarding the contents of 
     the plan during both the formulation and review of the plan.
       ``(n) Evaluation.--The plan shall establish a method for 
     the periodic evaluation of the effectiveness of the plan in 
     meeting the objectives established in subsection (d), 
     including evaluation of satisfaction by individuals with 
     disabilities.

     ``SEC. 705. STATEWIDE INDEPENDENT LIVING COUNCIL.

       ``(a) Establishment.--To be eligible to receive financial 
     assistance under this chapter, each State shall establish a 
     Statewide Independent Living Council (referred to in this 
     section as the `Council'). The Council shall not be 
     established as an entity within a State agency.
       ``(b) Composition and Appointment.--
       ``(1) Appointment.--Members of the Council shall be 
     appointed by the Governor. The Governor shall select members 
     after soliciting recommendations from representatives of 
     organizations representing a broad range of individuals with 
     disabilities and organizations interested in individuals with 
     disabilities.
       ``(2) Composition.--The Council shall include--
       ``(A) at least one director of a center for independent 
     living chosen by the directors of centers for independent 
     living within the State;
       ``(B) as ex officio, nonvoting members--
       ``(i) a representative from the designated State unit; and
       ``(ii) representatives from other State agencies that 
     provide services for individuals with disabilities; and
       ``(C) in a State in which 1 or more projects are carried 
     out under section 121, at least 1 representative of the 
     directors of the projects.
       ``(3) Additional members.--The Council may include--

[[Page S4123]]

       ``(A) other representatives from centers for independent 
     living;
       ``(B) parents and guardians of individuals with 
     disabilities;
       ``(C) advocates of and for individuals with disabilities;
       ``(D) representatives from private businesses;
       ``(E) representatives from organizations that provide 
     services for individuals with disabilities; and
       ``(F) other appropriate individuals.
       ``(4) Qualifications.--
       ``(A) In general.--The Council shall be composed of 
     members--
       ``(i) who provide statewide representation;
       ``(ii) who represent a broad range of individuals with 
     disabilities from diverse backgrounds;
       ``(iii) who are knowledgeable about centers for independent 
     living and independent living services; and
       ``(iv) a majority of whom are persons who are--

       ``(I) individuals with disabilities described in section 
     7(20)(B); and
       ``(II) not employed by any State agency or center for 
     independent living.

       ``(B) Voting members.--A majority of the voting members of 
     the Council shall be--
       ``(i) individuals with disabilities described in section 
     7(20)(B); and
       ``(ii) not employed by any State agency or center for 
     independent living.
       ``(5) Chairperson.--The Council shall select a chairperson 
     from among the voting membership of the Council.
       ``(6) Terms of appointment.--
       ``(A) Length of term.--Each member of the Council shall 
     serve for a term of 3 years, except that--
       ``(i) a member appointed to fill a vacancy occurring prior 
     to the expiration of the term for which a predecessor was 
     appointed, shall be appointed for the remainder of such term; 
     and
       ``(ii) the terms of service of the members initially 
     appointed shall be (as specified by the Governor) for such 
     fewer number of years as will provide for the expiration of 
     terms on a staggered basis.
       ``(B) Number of terms.--No member of the Council may serve 
     more than two consecutive full terms.
       ``(7) Vacancies.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     any vacancy occurring in the membership of the Council shall 
     be filled in the same manner as the original appointment. The 
     vacancy shall not affect the power of the remaining members 
     to execute the duties of the Council.
       ``(B) Delegation.--The Governor may delegate the authority 
     to fill such a vacancy to the remaining voting members of the 
     Council after making the original appointment.
       ``(c) Duties.--The Council shall--
       ``(1) jointly develop and sign (in conjunction with the 
     designated State unit) the State plan required in section 
     704;
       ``(2) monitor, review, and evaluate the implementation of 
     the State plan;
       ``(3) coordinate activities with the State Rehabilitation 
     Council established under section 105, if the State has such 
     a Council, or the commission described in section 
     101(a)(21)(A), if the State has such a commission, and 
     councils that address the needs of specific disability 
     populations and issues under other Federal law;
       ``(4) ensure that all regularly scheduled meetings of the 
     Statewide Independent Living Council are open to the public 
     and sufficient advance notice is provided; and
       ``(5) submit to the Commissioner such periodic reports as 
     the Commissioner may reasonably request, and keep such 
     records, and afford such access to such records, as the 
     Commissioner finds necessary to verify such reports.
       ``(d) Hearings and Forums.--The Council is authorized to 
     hold such hearings and forums as the Council may determine to 
     be necessary to carry out the duties of the Council.
       ``(e) Plan.--
       ``(1) In general.--The Council shall prepare, in 
     conjunction with the designated State unit, a plan for the 
     provision of such resources, including such staff and 
     personnel, as may be necessary and sufficient to carry out 
     the functions of the Council under this section, with funds 
     made available under this chapter, and under section 110 
     (consistent with section 101(a)(18)), and from other public 
     and private sources. The resource plan shall, to the maximum 
     extent possible, rely on the use of resources in existence 
     during the period of implementation of the plan.
       ``(2) Supervision and evaluation.--Each Council shall, 
     consistent with State law, supervise and evaluate such staff 
     and other personnel as may be necessary to carry out the 
     functions of the Council under this section.
       ``(3) Conflict of interest.--While assisting the Council in 
     carrying out its duties, staff and other personnel shall not 
     be assigned duties by the designated State agency or any 
     other agency or office of the State, that would create a 
     conflict of interest.
       ``(f) Compensation and Expenses.--The Council may use such 
     resources to reimburse members of the Council for reasonable 
     and necessary expenses of attending Council meetings and 
     performing Council duties (including child care and personal 
     assistance services), and to pay compensation to a member of 
     the Council, if such member is not employed or must forfeit 
     wages from other employment, for each day the member is 
     engaged in performing Council duties.

     ``SEC. 706. RESPONSIBILITIES OF THE COMMISSIONER.

       ``(a) Approval of State Plans.--
       ``(1) In general.--The Commissioner shall approve any State 
     plan submitted under section 704 that the Commissioner 
     determines meets the requirements of section 704, and shall 
     disapprove any such plan that does not meet such 
     requirements, as soon as practicable after receiving the 
     plan. Prior to such disapproval, the Commissioner shall 
     notify the State of the intention to disapprove the plan, and 
     shall afford such State reasonable notice and opportunity for 
     a hearing.
       ``(2) Procedures.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the provisions of subsections (c) and (d) of section 107 
     shall apply to any State plan submitted to the Commissioner 
     under section 704.
       ``(B) Application.--For purposes of the application 
     described in subparagraph (A), all references in such 
     provisions--
       ``(i) to the Secretary shall be deemed to be references to 
     the Commissioner; and
       ``(ii) to section 101 shall be deemed to be references to 
     section 704.
       ``(b) Indicators.--Not later than October 1, 1993, the 
     Commissioner shall develop and publish in the Federal 
     Register indicators of minimum compliance consistent with the 
     standards set forth in section 725.
       ``(c) Onsite Compliance Reviews.--
       ``(1) Reviews.--The Commissioner shall annually conduct 
     onsite compliance reviews of at least 15 percent of the 
     centers for independent living that receive funds under 
     section 722 and shall periodically conduct such a review of 
     each such center. The Commissioner shall annually conduct 
     onsite compliance reviews of at least one-third of the 
     designated State units that receive funding under section 
     723, and, to the extent necessary to determine the compliance 
     of such a State unit with subsections (f) and (g) of section 
     723, centers that receive funding under section 723 in such 
     State. The Commissioner shall select the centers and State 
     units described in this paragraph for review on a random 
     basis.
       ``(2) Qualifications of employees conducting reviews.--The 
     Commissioner shall--
       ``(A) to the maximum extent practicable, carry out such a 
     review by using employees of the Department who are 
     knowledgeable about the provision of independent living 
     services;
       ``(B) ensure that the employee of the Department with 
     responsibility for supervising such a review shall have such 
     knowledge; and
       ``(C) ensure that at least one member of a team conducting 
     such a review shall be an individual who--
       ``(i) is not a government employee; and
       ``(ii) has experience in the operation of centers for 
     independent living.
       ``(d) Reports.--The Commissioner shall include, in the 
     annual report required under section 13, information on the 
     extent to which centers for independent living receiving 
     funds under part C have complied with the standards and 
     assurances set forth in section 725. The Commissioner may 
     identify individual centers for independent living in the 
     analysis. The Commissioner shall report the results of onsite 
     compliance reviews, identifying individual centers for 
     independent living and other recipients of assistance under 
     this chapter.

                 ``PART B--INDEPENDENT LIVING SERVICES

     ``SEC. 711. ALLOTMENTS.

       ``(a) In General.--
       ``(1) States.--
       ``(A) Population basis.--Except as provided in 
     subparagraphs (B) and (C), from sums appropriated for each 
     fiscal year to carry out this part, the Commissioner shall 
     make an allotment to each State whose State plan has been 
     approved under section 706 of an amount bearing the same 
     ratio to such sums as the population of the State bears to 
     the population of all States.
       ``(B) Maintenance of 1992 amounts.--Subject to the 
     availability of appropriations to carry out this part, the 
     amount of any allotment made under subparagraph (A) to a 
     State for a fiscal year shall not be less than the amount of 
     an allotment made to the State for fiscal year 1992 under 
     part A of this title, as in effect on the day before the date 
     of enactment of the Rehabilitation Act Amendments of 1992.
       ``(C) Minimums.--Subject to the availability of 
     appropriations to carry out this part, and except as provided 
     in subparagraph (B), the allotment to any State under 
     subparagraph (A) shall be not less than $275,000 or one-third 
     of one percent of the sums made available for the fiscal year 
     for which the allotment is made, whichever is greater, and 
     the allotment of any State under this section for any fiscal 
     year that is less than $275,000 or one-third of one percent 
     of such sums shall be increased to the greater of the two 
     amounts.
       ``(2) Certain territories.--
       ``(A) In general.--For the purposes of paragraph (1)(C), 
     Guam, American Samoa, the United States Virgin Islands, and 
     the Commonwealth of the Northern Mariana Islands shall not be 
     considered to be States.
       ``(B) Allotment.--Each jurisdiction described in 
     subparagraph (A) shall be allotted under paragraph (1)(A) not 
     less than one-eighth of one percent of the amounts made 
     available for purposes of this part for the fiscal year for 
     which the allotment is made.
       ``(3) Adjustment for inflation.--For any fiscal year, 
     beginning in fiscal year 1999, in

[[Page S4124]]

     which the total amount appropriated to carry out this part 
     exceeds the total amount appropriated to carry out this part 
     for the preceding fiscal year, the Commissioner shall 
     increase the minimum allotment under paragraph (1)(C) by a 
     percentage that shall not exceed the percentage increase in 
     the total amount appropriated to carry out this part between 
     the preceding fiscal year and the fiscal year involved.
       ``(b) Proportional Reduction.--To provide allotments to 
     States in accordance with subsection (a)(1)(B), to provide 
     minimum allotments to States (as increased under subsection 
     (a)(3)) under subsection (a)(1)(C), or to provide minimum 
     allotments to States under subsection (a)(2)(B), the 
     Commissioner shall proportionately reduce the allotments of 
     the remaining States under subsection (a)(1)(A), with such 
     adjustments as may be necessary to prevent the allotment of 
     any such remaining State from being reduced to less than the 
     amount required by subsection (a)(1)(B).
       ``(c) Reallotment.--Whenever the Commissioner determines 
     that any amount of an allotment to a State for any fiscal 
     year will not be expended by such State in carrying out the 
     provisions of this part, the Commissioner shall make such 
     amount available for carrying out the provisions of this part 
     to one or more of the States that the Commissioner determines 
     will be able to use additional amounts during such year for 
     carrying out such provisions. Any amount made available to a 
     State for any fiscal year pursuant to the preceding sentence 
     shall, for the purposes of this section, be regarded as an 
     increase in the allotment of the State (as determined under 
     the preceding provisions of this section) for such year.

     ``SEC. 712. PAYMENTS TO STATES FROM ALLOTMENTS.

       ``(a) Payments.--From the allotment of each State for a 
     fiscal year under section 711, the State shall be paid the 
     Federal share of the expenditures incurred during such year 
     under its State plan approved under section 706. Such 
     payments may be made (after necessary adjustments on account 
     of previously made overpayments or underpayments) in advance 
     or by way of reimbursement, and in such installments and on 
     such conditions as the Commissioner may determine.
       ``(b) Federal Share.--
       ``(1) In general.--The Federal share with respect to any 
     State for any fiscal year shall be 90 percent of the 
     expenditures incurred by the State during such year under its 
     State plan approved under section 706.
       ``(2) Non-federal share.--The non-Federal share of the cost 
     of any project that receives assistance through an allotment 
     under this part may be provided in cash or in kind, fairly 
     evaluated, including plant, equipment, or services.

     ``SEC. 713. AUTHORIZED USES OF FUNDS.

       ``The State may use funds received under this part to 
     provide the resources described in section 705(e), relating 
     to the Statewide Independent Living Council, and may use 
     funds received under this part--
       ``(1) to provide independent living services to individuals 
     with significant disabilities;
       ``(2) to demonstrate ways to expand and improve independent 
     living services;
       ``(3) to support the operation of centers for independent 
     living that are in compliance with the standards and 
     assurances set forth in subsections (b) and (c) of section 
     725;
       ``(4) to support activities to increase the capacities of 
     public or nonprofit agencies and organizations and other 
     entities to develop comprehensive approaches or systems for 
     providing independent living services;
       ``(5) to conduct studies and analyses, gather information, 
     develop model policies and procedures, and present 
     information, approaches, strategies, findings, conclusions, 
     and recommendations to Federal, State, and local policymakers 
     in order to enhance independent living services for 
     individuals with disabilities;
       ``(6) to train individuals with disabilities and 
     individuals providing services to individuals with 
     disabilities and other persons regarding the independent 
     living philosophy; and
       ``(7) to provide outreach to populations that are unserved 
     or underserved by programs under this title, including 
     minority groups and urban and rural populations.

     ``SEC. 714. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     part such sums as may be necessary for each of the fiscal 
     years 1998 through 2004.

                ``PART C--CENTERS FOR INDEPENDENT LIVING

     ``SEC. 721. PROGRAM AUTHORIZATION.

       ``(a) In General.--From the funds appropriated for fiscal 
     year 1998 and for each subsequent fiscal year to carry out 
     this part, the Commissioner shall allot such sums as may be 
     necessary to States and other entities in accordance with 
     subsections (b) through (d).
       ``(b) Training.--
       ``(1) Grants; contracts; other arrangements.--For any 
     fiscal year in which the funds appropriated to carry out this 
     part exceed the funds appropriated to carry out this part for 
     fiscal year 1993, the Commissioner shall first reserve from 
     such excess, to provide training and technical assistance to 
     eligible agencies, centers for independent living, and 
     Statewide Independent Living Councils for such fiscal year, 
     not less than 1.8 percent, and not more than 2 percent, of 
     the funds appropriated to carry out this part for the fiscal 
     year involved.
       ``(2) Allocation.--From the funds reserved under paragraph 
     (1), the Commissioner shall make grants to, and enter into 
     contracts and other arrangements with, entities that have 
     experience in the operation of centers for independent living 
     to provide such training and technical assistance with 
     respect to planning, developing, conducting, administering, 
     and evaluating centers for independent living.
       ``(3) Funding priorities.--The Commissioner shall conduct a 
     survey of Statewide Independent Living Councils and centers 
     for independent living regarding training and technical 
     assistance needs in order to determine funding priorities for 
     such grants, contracts, and other arrangements.
       ``(4) Review.--To be eligible to receive a grant or enter 
     into a contract or other arrangement under this subsection, 
     such an entity shall submit an application to the 
     Commissioner at such time, in such manner, and containing a 
     proposal to provide such training and technical assistance, 
     and containing such additional information as the 
     Commissioner may require. The Commissioner shall provide for 
     peer review of grant applications by panels that include 
     persons who are not government employees and who have 
     experience in the operation of centers for independent 
     living.
       ``(5) Prohibition on combined funds.--No funds reserved by 
     the Commissioner under this subsection may be combined with 
     funds appropriated under any other Act or part of this Act if 
     the purpose of combining funds is to make a single 
     discretionary grant or a single discretionary payment, unless 
     such funds appropriated under this chapter are separately 
     identified in such grant or payment and are used for the 
     purposes of this chapter.
       ``(c) In General.--
       ``(1) States.--
       ``(A) Population basis.--After the reservation required by 
     subsection (b) has been made, and except as provided in 
     subparagraphs (B) and (C), from the remainder of the amounts 
     appropriated for each such fiscal year to carry out this 
     part, the Commissioner shall make an allotment to each State 
     whose State plan has been approved under section 706 of an 
     amount bearing the same ratio to such remainder as the 
     population of the State bears to the population of all 
     States.
       ``(B) Maintenance of 1992 amounts.--Subject to the 
     availability of appropriations to carry out this part, the 
     amount of any allotment made under subparagraph (A) to a 
     State for a fiscal year shall not be less than the amount of 
     financial assistance received by centers for independent 
     living in the State for fiscal year 1992 under part B of this 
     title, as in effect on the day before the date of enactment 
     of the Rehabilitation Act Amendments of 1992.
       ``(C) Minimums.--Subject to the availability of 
     appropriations to carry out this part and except as provided 
     in subparagraph (B), for a fiscal year in which the amounts 
     appropriated to carry out this part exceed the amounts 
     appropriated for fiscal year 1992 to carry out part B of this 
     title, as in effect on the day before the date of enactment 
     of the Rehabilitation Act Amendments of 1992--
       ``(i) if such excess is not less than $8,000,000, the 
     allotment to any State under subparagraph (A) shall be not 
     less than $450,000 or one-third of one percent of the sums 
     made available for the fiscal year for which the allotment is 
     made, whichever is greater, and the allotment of any State 
     under this section for any fiscal year that is less than 
     $450,000 or one-third of one percent of such sums shall be 
     increased to the greater of the two amounts;
       ``(ii) if such excess is not less than $4,000,000 and is 
     less than $8,000,000, the allotment to any State under 
     subparagraph (A) shall be not less than $400,000 or one-third 
     of one percent of the sums made available for the fiscal year 
     for which the allotment is made, whichever is greater, and 
     the allotment of any State under this section for any fiscal 
     year that is less than $400,000 or one-third of one percent 
     of such sums shall be increased to the greater of the two 
     amounts; and
       ``(iii) if such excess is less than $4,000,000, the 
     allotment to any State under subparagraph (A) shall approach, 
     as nearly as possible, the greater of the two amounts 
     described in clause (ii).
       ``(2) Certain territories.--
       ``(A) In general.--For the purposes of paragraph (1)(C), 
     Guam, American Samoa, the United States Virgin Islands, and 
     the Commonwealth of the Northern Mariana Islands shall not be 
     considered to be States.
       ``(B) Allotment.--Each jurisdiction described in 
     subparagraph (A) shall be allotted under paragraph (1)(A) not 
     less than one-eighth of one percent of the remainder for the 
     fiscal year for which the allotment is made.
       ``(3) Adjustment for inflation.--For any fiscal year, 
     beginning in fiscal year 1999, in which the total amount 
     appropriated to carry out this part exceeds the total amount 
     appropriated to carry out this part for the preceding fiscal 
     year, the Commissioner shall increase the minimum allotment 
     under paragraph (1)(C) by a percentage that shall not exceed 
     the percentage increase in the total amount appropriated to 
     carry out this part between the preceding fiscal year and the 
     fiscal year involved.
       ``(4) Proportional reduction.--To provide allotments to 
     States in accordance with

[[Page S4125]]

     paragraph (1)(B), to provide minimum allotments to States (as 
     increased under paragraph (3)) under paragraph (1)(C), or to 
     provide minimum allotments to States under paragraph (2)(B), 
     the Commissioner shall proportionately reduce the allotments 
     of the remaining States under paragraph (1)(A), with such 
     adjustments as may be necessary to prevent the allotment of 
     any such remaining State from being reduced to less than the 
     amount required by paragraph (1)(B).
       ``(d) Reallotment.--Whenever the Commissioner determines 
     that any amount of an allotment to a State for any fiscal 
     year will not be expended by such State for carrying out the 
     provisions of this part, the Commissioner shall make such 
     amount available for carrying out the provisions of this part 
     to one or more of the States that the Commissioner determines 
     will be able to use additional amounts during such year for 
     carrying out such provisions. Any amount made available to a 
     State for any fiscal year pursuant to the preceding sentence 
     shall, for the purposes of this section, be regarded as an 
     increase in the allotment of the State (as determined under 
     the preceding provisions of this section) for such year.

     ``SEC. 722. GRANTS TO CENTERS FOR INDEPENDENT LIVING IN 
                   STATES IN WHICH FEDERAL FUNDING EXCEEDS STATE 
                   FUNDING.

       ``(a) Establishment.--
       ``(1) In general.--Unless the director of a designated 
     State unit awards grants under section 723 to eligible 
     agencies in a State for a fiscal year, the Commissioner shall 
     award grants under this section to such eligible agencies for 
     such fiscal year from the amount of funds allotted to the 
     State under subsection (c) or (d) of section 721 for such 
     year.
       ``(2) Grants.--The Commissioner shall award such grants, 
     from the amount of funds so allotted, to such eligible 
     agencies for the planning, conduct, administration, and 
     evaluation of centers for independent living that comply with 
     the standards and assurances set forth in section 725.
       ``(b) Eligible Agencies.--In any State in which the 
     Commissioner has approved the State plan required by section 
     704, the Commissioner may make a grant under this section to 
     any eligible agency that--
       ``(1) has the power and authority to carry out the purpose 
     of this part and perform the functions set forth in section 
     725 within a community and to receive and administer funds 
     under this part, funds and contributions from private or 
     public sources that may be used in support of a center for 
     independent living, and funds from other public and private 
     programs;
       ``(2) is determined by the Commissioner to be able to plan, 
     conduct, administer, and evaluate a center for independent 
     living consistent with the standards and assurances set forth 
     in section 725; and
       ``(3) submits an application to the Commissioner at such 
     time, in such manner, and containing such information as the 
     Commissioner may require.
       ``(c) Existing Eligible Agencies.--In the administration of 
     the provisions of this section, the Commissioner shall award 
     grants to any eligible agency that has been awarded a grant 
     under this part by September 30, 1997, unless the 
     Commissioner makes a finding that the agency involved fails 
     to meet program and fiscal standards and assurances set forth 
     in section 725.
       ``(d) New Centers for Independent Living.--
       ``(1) In general.--If there is no center for independent 
     living serving a region of the State or a region is 
     underserved, and the increase in the allotment of the State 
     is sufficient to support an additional center for independent 
     living in the State, the Commissioner may award a grant under 
     this section to the most qualified applicant proposing to 
     serve such region, consistent with the provisions in the 
     State plan setting forth the design of the State for 
     establishing a statewide network of centers for independent 
     living.
       ``(2) Selection.--In selecting from among applicants for a 
     grant under this section for a new center for independent 
     living, the Commissioner--
       ``(A) shall consider comments regarding the application, if 
     any, by the Statewide Independent Living Council in the State 
     in which the applicant is located;
       ``(B) shall consider the ability of each such applicant to 
     operate a center for independent living based on--
       ``(i) evidence of the need for such a center;
       ``(ii) any past performance of such applicant in providing 
     services comparable to independent living services;
       ``(iii) the plan for satisfying or demonstrated success in 
     satisfying the standards and the assurances set forth in 
     section 725;
       ``(iv) the quality of key personnel and the involvement of 
     individuals with significant disabilities;
       ``(v) budgets and cost-effectiveness;
       ``(vi) an evaluation plan; and
       ``(vii) the ability of such applicant to carry out the 
     plans; and
       ``(C) shall give priority to applications from applicants 
     proposing to serve geographic areas within each State that 
     are currently unserved or underserved by independent living 
     programs, consistent with the provisions of the State plan 
     submitted under section 704 regarding establishment of a 
     statewide network of centers for independent living.
       ``(3) Current centers.--Notwithstanding paragraphs (1) and 
     (2), a center for independent living that receives assistance 
     under part B for a fiscal year shall be eligible for a grant 
     for the subsequent fiscal year under this subsection.
       ``(e) Order of Priorities.--The Commissioner shall be 
     guided by the following order of priorities in allocating 
     funds among centers for independent living within a State, to 
     the extent funds are available:
       ``(1) The Commissioner shall support existing centers for 
     independent living, as described in subsection (c), that 
     comply with the standards and assurances set forth in section 
     725, at the level of funding for the previous year.
       ``(2) The Commissioner shall provide for a cost-of-living 
     increase for such existing centers for independent living.
       ``(3) The Commissioner shall fund new centers for 
     independent living, as described in subsection (d), that 
     comply with the standards and assurances set forth in section 
     725.
       ``(f) Nonresidential Agencies.--A center that provides or 
     manages residential housing after October 1, 1994, shall not 
     be considered to be an eligible agency under this section.
       ``(g) Review.--
       ``(1) In general.--The Commissioner shall periodically 
     review each center receiving funds under this section to 
     determine whether such center is in compliance with the 
     standards and assurances set forth in section 725. If the 
     Commissioner determines that any center receiving funds under 
     this section is not in compliance with the standards and 
     assurances set forth in section 725, the Commissioner shall 
     immediately notify such center that it is out of compliance.
       ``(2) Enforcement.--The Commissioner shall terminate all 
     funds under this section to such center 90 days after the 
     date of such notification unless the center submits a plan to 
     achieve compliance within 90 days of such notification and 
     such plan is approved by the Commissioner.

     ``SEC. 723. GRANTS TO CENTERS FOR INDEPENDENT LIVING IN 
                   STATES IN WHICH STATE FUNDING EQUALS OR EXCEEDS 
                   FEDERAL FUNDING.

       ``(a) Establishment.--
       ``(1) In general.--
       ``(A) Initial year.--
       ``(i) Determination.--The director of a designated State 
     unit, as provided in paragraph (2), or the Commissioner, as 
     provided in paragraph (3), shall award grants under this 
     section for an initial fiscal year if the Commissioner 
     determines that the amount of State funds that were earmarked 
     by a State for a preceding fiscal year to support the general 
     operation of centers for independent living meeting the 
     requirements of this part equaled or exceeded the amount of 
     funds allotted to the State under subsection (c) or (d) of 
     section 721 for such year.
       ``(ii) Grants.--The director or the Commissioner, as 
     appropriate, shall award such grants, from the amount of 
     funds so allotted for the initial fiscal year, to eligible 
     agencies in the State for the planning, conduct, 
     administration, and evaluation of centers for independent 
     living that comply with the standards and assurances set 
     forth in section 725.
       ``(iii) Regulation.--The Commissioner shall by regulation 
     specify the preceding fiscal year with respect to which the 
     Commissioner will make the determinations described in clause 
     (i) and subparagraph (B), making such adjustments as may be 
     necessary to accommodate State funding cycles such as 2-year 
     funding cycles or State fiscal years that do not coincide 
     with the Federal fiscal year.
       ``(B) Subsequent years.--For each year subsequent to the 
     initial fiscal year described in subparagraph (A), the 
     director of the designated State unit shall continue to have 
     the authority to award such grants under this section if the 
     Commissioner determines that the State continues to earmark 
     the amount of State funds described in subparagraph (A)(i). 
     If the State does not continue to earmark such an amount for 
     a fiscal year, the State shall be ineligible to make grants 
     under this section after a final year following such fiscal 
     year, as defined in accordance with regulations established 
     by the Commissioner, and for each subsequent fiscal year.
       ``(2) Grants by designated state units.--In order for the 
     designated State unit to be eligible to award the grants 
     described in paragraph (1) and carry out this section for a 
     fiscal year with respect to a State, the designated State 
     agency shall submit an application to the Commissioner at 
     such time, and in such manner as the Commissioner may 
     require, including information about the amount of State 
     funds described in paragraph (1) for the preceding fiscal 
     year. If the Commissioner makes a determination described in 
     subparagraph (A)(i) or (B), as appropriate, of paragraph (1), 
     the Commissioner shall approve the application and designate 
     the director of the designated State unit to award the grant 
     and carry out this section.
       ``(3) Grants by commissioner.--If the designated State 
     agency of a State described in paragraph (1) does not submit 
     and obtain approval of an application under paragraph (2), 
     the Commissioner shall award the grant described in paragraph 
     (1) to eligible agencies in the State in accordance with 
     section 722.
       ``(b) Eligible Agencies.--In any State in which the 
     Commissioner has approved the State plan required by section 
     704, the director of the designated State unit may award a 
     grant under this section to any eligible agency that--
       ``(1) has the power and authority to carry out the purpose 
     of this part and perform the

[[Page S4126]]

     functions set forth in section 725 within a community and to 
     receive and administer funds under this part, funds and 
     contributions from private or public sources that may be used 
     in support of a center for independent living, and funds from 
     other public and private programs;
       ``(2) is determined by the director to be able to plan, 
     conduct, administer, and evaluate a center for independent 
     living, consistent with the standards and assurances set 
     forth in section 725; and
       ``(3) submits an application to the director at such time, 
     in such manner, and containing such information as the head 
     of the designated State unit may require.
       ``(c) Existing Eligible Agencies.--In the administration of 
     the provisions of this section, the director of the 
     designated State unit shall award grants under this section 
     to any eligible agency that has been awarded a grant under 
     this part by September 30, 1997, unless the director makes a 
     finding that the agency involved fails to comply with the 
     standards and assurances set forth in section 725.
       ``(d) New Centers for Independent Living.--
       ``(1) In general.--If there is no center for independent 
     living serving a region of the State or the region is 
     unserved or underserved, and the increase in the allotment of 
     the State is sufficient to support an additional center for 
     independent living in the State, the director of the 
     designated State unit may award a grant under this section 
     from among eligible agencies, consistent with the provisions 
     of the State plan under section 704 setting forth the design 
     of the State for establishing a statewide network of centers 
     for independent living.
       ``(2) Selection.--In selecting from among eligible agencies 
     in awarding a grant under this part for a new center for 
     independent living--
       ``(A) the director of the designated State unit and the 
     chairperson of, or other individual designated by, the 
     Statewide Independent Living Council acting on behalf of and 
     at the direction of the Council, shall jointly appoint a peer 
     review committee that shall rank applications in accordance 
     with the standards and assurances set forth in section 725 
     and criteria jointly established by such director and such 
     chairperson or individual;
       ``(B) the peer review committee shall consider the ability 
     of each such applicant to operate a center for independent 
     living, and shall recommend an applicant to receive a grant 
     under this section, based on--
       ``(i) evidence of the need for a center for independent 
     living, consistent with the State plan;
       ``(ii) any past performance of such applicant in providing 
     services comparable to independent living services;
       ``(iii) the plan for complying with, or demonstrated 
     success in complying with, the standards and the assurances 
     set forth in section 725;
       ``(iv) the quality of key personnel of the applicant and 
     the involvement of individuals with significant disabilities 
     by the applicant;
       ``(v) the budgets and cost-effectiveness of the applicant;
       ``(vi) the evaluation plan of the applicant; and
       ``(vii) the ability of such applicant to carry out the 
     plans; and
       ``(C) the director of the designated State unit shall award 
     the grant on the basis of the recommendations of the peer 
     review committee if the actions of the committee are 
     consistent with Federal and State law.
       ``(3) Current centers.--Notwithstanding paragraphs (1) and 
     (2), a center for independent living that receives assistance 
     under part B for a fiscal year shall be eligible for a grant 
     for the subsequent fiscal year under this subsection.
       ``(e) Order of Priorities.--Unless the director of the 
     designated State unit and the chairperson of the Council or 
     other individual designated by the Council acting on behalf 
     of and at the direction of the Council jointly agree on 
     another order of priority, the director shall be guided by 
     the following order of priorities in allocating funds among 
     centers for independent living within a State, to the extent 
     funds are available:
       ``(1) The director of the designated State unit shall 
     support existing centers for independent living, as described 
     in subsection (c), that comply with the standards and 
     assurances set forth in section 725, at the level of funding 
     for the previous year.
       ``(2) The director of the designated State unit shall 
     provide for a cost-of-living increase for such existing 
     centers for independent living.
       ``(3) The director of the designated State unit shall fund 
     new centers for independent living, as described in 
     subsection (d), that comply with the standards and assurances 
     set forth in section 725.
       ``(f) Nonresidential Agencies.--A center that provides or 
     manages residential housing after October 1, 1994, shall not 
     be considered to be an eligible agency under this section.
       ``(g) Review.--
       ``(1) In general.--The director of the designated State 
     unit shall periodically review each center receiving funds 
     under this section to determine whether such center is in 
     compliance with the standards and assurances set forth in 
     section 725. If the director of the designated State unit 
     determines that any center receiving funds under this section 
     is not in compliance with the standards and assurances set 
     forth in section 725, the director of the designated State 
     unit shall immediately notify such center that it is out of 
     compliance.
       ``(2) Enforcement.--The director of the designated State 
     unit shall terminate all funds under this section to such 
     center 90 days after--
       ``(A) the date of such notification; or
       ``(B) in the case of a center that requests an appeal under 
     subsection (i), the date of any final decision under 
     subsection (i),

     unless the center submits a plan to achieve compliance within 
     90 days and such plan is approved by the director, or if 
     appealed, by the Commissioner.
       ``(h)  Onsite Compliance Review.--The director of the 
     designated State unit shall annually conduct onsite 
     compliance reviews of at least 15 percent of the centers for 
     independent living that receive funding under this section in 
     the State. Each team that conducts onsite compliance review 
     of centers for independent living shall include at least one 
     person who is not an employee of the designated State agency, 
     who has experience in the operation of centers for 
     independent living, and who is jointly selected by the 
     director of the designated State unit and the chairperson of 
     or other individual designated by the Council acting on 
     behalf of and at the direction of the Council. A copy of this 
     review shall be provided to the Commissioner.
       ``(i) Adverse Actions.--If the director of the designated 
     State unit proposes to take a significant adverse action 
     against a center for independent living, the center may seek 
     mediation and conciliation to be provided by an individual or 
     individuals who are free of conflicts of interest identified 
     by the chairperson of or other individual designated by the 
     Council. If the issue is not resolved through the mediation 
     and conciliation, the center may appeal the proposed adverse 
     action to the Commissioner for a final decision.

     ``SEC. 724. CENTERS OPERATED BY STATE AGENCIES.

       ``A State that receives assistance for fiscal year 1993 
     with respect to a center in accordance with subsection (a) of 
     this section (as in effect on the day before the date of 
     enactment of the Rehabilitation Act Amendments of 1998) may 
     continue to receive assistance under this part for fiscal 
     year 1994 or a succeeding fiscal year if, for such fiscal 
     year--
       ``(1) no nonprofit private agency--
       ``(A) submits an acceptable application to operate a center 
     for independent living for the fiscal year before a date 
     specified by the Commissioner; and
       ``(B) obtains approval of the application under section 722 
     or 723; or
       ``(2) after funding all applications so submitted and 
     approved, the Commissioner determines that funds remain 
     available to provide such assistance.

     ``SEC. 725. STANDARDS AND ASSURANCES FOR CENTERS FOR 
                   INDEPENDENT LIVING.

       ``(a) In General.--Each center for independent living that 
     receives assistance under this part shall comply with the 
     standards set out in subsection (b) and provide and comply 
     with the assurances set out in subsection (c) in order to 
     ensure that all programs and activities under this part are 
     planned, conducted, administered, and evaluated in a manner 
     consistent with the purposes of this chapter and the 
     objective of providing assistance effectively and 
     efficiently.
       ``(b) Standards.--
       ``(1) Philosophy.--The center shall promote and practice 
     the independent living philosophy of--
       ``(A) consumer control of the center regarding 
     decisionmaking, service delivery, management, and 
     establishment of the policy and direction of the center;
       ``(B) self-help and self-advocacy;
       ``(C) development of peer relationships and peer role 
     models; and
       ``(D) equal access of individuals with significant 
     disabilities to society and to all services, programs, 
     activities, resources, and facilities, whether public or 
     private and regardless of the funding source.
       ``(2) Provision of services.--The center shall provide 
     services to individuals with a range of significant 
     disabilities. The center shall provide services on a cross-
     disability basis (for individuals with all different types of 
     significant disabilities, including individuals with 
     significant disabilities who are members of populations that 
     are unserved or underserved by programs under this title). 
     Eligibility for services at any center for independent living 
     shall be determined by the center, and shall not be based on 
     the presence of any one or more specific significant 
     disabilities.
       ``(3) Independent living goals.--The center shall 
     facilitate the development and achievement of independent 
     living goals selected by individuals with significant 
     disabilities who seek such assistance by the center.
       ``(4) Community options.--The center shall work to increase 
     the availability and improve the quality of community options 
     for independent living in order to facilitate the development 
     and achievement of independent living goals by individuals 
     with significant disabilities.
       ``(5) Independent living core services.--The center shall 
     provide independent living core services and, as appropriate, 
     a combination of any other independent living services.
       ``(6) Activities to increase community capacity.--The 
     center shall conduct activities to increase the capacity of 
     communities within the service area of the center to meet the 
     needs of individuals with significant disabilities.

[[Page S4127]]

       ``(7) Resource development activities.--The center shall 
     conduct resource development activities to obtain funding 
     from sources other than this chapter.
       ``(c) Assurances.--The eligible agency shall provide at 
     such time and in such manner as the Commissioner may require, 
     such satisfactory assurances as the Commissioner may require, 
     including satisfactory assurances that--
       ``(1) the applicant is an eligible agency;
       ``(2) the center will be designed and operated within local 
     communities by individuals with disabilities, including an 
     assurance that the center will have a Board that is the 
     principal governing body of the center and a majority of 
     which shall be composed of individuals with significant 
     disabilities;
       ``(3) the applicant will comply with the standards set 
     forth in subsection (b);
       ``(4) the applicant will establish clear priorities through 
     annual and 3-year program and financial planning objectives 
     for the center, including overall goals or a mission for the 
     center, a work plan for achieving the goals or mission, 
     specific objectives, service priorities, and types of 
     services to be provided, and a description that shall 
     demonstrate how the proposed activities of the applicant are 
     consistent with the most recent 3-year State plan under 
     section 704;
       ``(5) the applicant will use sound organizational and 
     personnel assignment practices, including taking affirmative 
     action to employ and advance in employment qualified 
     individuals with significant disabilities on the same terms 
     and conditions required with respect to the employment of 
     individuals with disabilities under section 503;
       ``(6) the applicant will ensure that the majority of the 
     staff, and individuals in decisionmaking positions, of the 
     applicant are individuals with disabilities;
       ``(7) the applicant will practice sound fiscal management, 
     including making arrangements for an annual independent 
     fiscal audit, notwithstanding section 7502(a)(2)(A) of title 
     31, United States Code;
       ``(8) the applicant will conduct annual self-evaluations, 
     prepare an annual report, and maintain records adequate to 
     measure performance with respect to the standards, containing 
     information regarding, at a minimum--
       ``(A) the extent to which the center is in compliance with 
     the standards;
       ``(B) the number and types of individuals with significant 
     disabilities receiving services through the center;
       ``(C) the types of services provided through the center and 
     the number of individuals with significant disabilities 
     receiving each type of service;
       ``(D) the sources and amounts of funding for the operation 
     of the center;
       ``(E) the number of individuals with significant 
     disabilities who are employed by, and the number who are in 
     management and decisionmaking positions in, the center; and
       ``(F) a comparison, when appropriate, of the activities of 
     the center in prior years with the activities of the center 
     in the most recent year;
       ``(9) individuals with significant disabilities who are 
     seeking or receiving services at the center will be notified 
     by the center of the existence of, the availability of, and 
     how to contact, the client assistance program;
       ``(10) aggressive outreach regarding services provided 
     through the center will be conducted in an effort to reach 
     populations of individuals with significant disabilities that 
     are unserved or underserved by programs under this title, 
     especially minority groups and urban and rural populations;
       ``(11) staff at centers for independent living will receive 
     training on how to serve such unserved and underserved 
     populations, including minority groups and urban and rural 
     populations;
       ``(12) the center will submit to the Statewide Independent 
     Living Council a copy of its approved grant application and 
     the annual report required under paragraph (8);
       ``(13) the center will prepare and submit a report to the 
     designated State unit or the Commissioner, as the case may 
     be, at the end of each fiscal year that contains the 
     information described in paragraph (8) and information 
     regarding the extent to which the center is in compliance 
     with the standards set forth in subsection (b); and
       ``(14) an independent living plan described in section 
     704(e) will be developed unless the individual who would 
     receive services under the plan signs a waiver stating that 
     such a plan is unnecessary.

     ``SEC. 726. DEFINITIONS.

       ``As used in this part, the term `eligible agency' means a 
     consumer-controlled, community-based, cross-disability, 
     nonresidential private nonprofit agency.

     ``SEC. 727. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     part such sums as may be necessary for each of the fiscal 
     years 1998 through 2004.

``CHAPTER 2--INDEPENDENT LIVING SERVICES FOR OLDER INDIVIDUALS WHO ARE 
                                 BLIND

     ``SEC. 751. DEFINITION.

       ``For purposes of this chapter, the term `older individual 
     who is blind' means an individual age 55 or older whose 
     significant visual impairment makes competitive employment 
     extremely difficult to attain but for whom independent living 
     goals are feasible.

     ``SEC. 752. PROGRAM OF GRANTS.

       ``(a) In General.--
       ``(1) Authority for grants.--Subject to subsections (b) and 
     (c), the Commissioner may make grants to States for the 
     purpose of providing the services described in subsection (d) 
     to older individuals who are blind.
       ``(2) Designated state agency.--The Commissioner may not 
     make a grant under subsection (a) unless the State involved 
     agrees that the grant will be administered solely by the 
     agency described in section 101(a)(2)(A)(i).
       ``(b) Contingent Competitive Grants.--Beginning with fiscal 
     year 1993, in the case of any fiscal year for which the 
     amount appropriated under section 753 is less than 
     $13,000,000, grants made under subsection (a) shall be--
       ``(1) discretionary grants made on a competitive basis to 
     States; or
       ``(2) grants made on a noncompetitive basis to pay for the 
     continuation costs of activities for which a grant was 
     awarded--
       ``(A) under this chapter; or
       ``(B) under part C, as in effect on the day before the date 
     of enactment of the Rehabilitation Act Amendments of 1992.
       ``(c) Contingent Formula Grants.--
       ``(1) In general.--In the case of any fiscal year for which 
     the amount appropriated under section 753 is equal to or 
     greater than $13,000,000, grants under subsection (a) shall 
     be made only to States and shall be made only from allotments 
     under paragraph (2).
       ``(2) Allotments.--For grants under subsection (a) for a 
     fiscal year described in paragraph (1), the Commissioner 
     shall make an allotment to each State in an amount determined 
     in accordance with subsection (j), and shall make a grant to 
     the State of the allotment made for the State if the State 
     submits to the Commissioner an application in accordance with 
     subsection (i).
       ``(d) Services Generally.--The Commissioner may not make a 
     grant under subsection (a) unless the State involved agrees 
     that the grant will be expended only for purposes of--
       ``(1) providing independent living services to older 
     individuals who are blind;
       ``(2) conducting activities that will improve or expand 
     services for such individuals; and
       ``(3) conducting activities to help improve public 
     understanding of the problems of such individuals.
       ``(e) Independent Living Services.--Independent living 
     services for purposes of subsection (d)(1) include--
       ``(1) services to help correct blindness, such as--
       ``(A) outreach services;
       ``(B) visual screening;
       ``(C) surgical or therapeutic treatment to prevent, 
     correct, or modify disabling eye conditions; and
       ``(D) hospitalization related to such services;
       ``(2) the provision of eyeglasses and other visual aids;
       ``(3) the provision of services and equipment to assist an 
     older individual who is blind to become more mobile and more 
     self-sufficient;
       ``(4) mobility training, braille instruction, and other 
     services and equipment to help an older individual who is 
     blind adjust to blindness;
       ``(5) guide services, reader services, and transportation;
       ``(6) any other appropriate service designed to assist an 
     older individual who is blind in coping with daily living 
     activities, including supportive services and rehabilitation 
     teaching services;
       ``(7) independent living skills training, information and 
     referral services, peer counseling, and individual advocacy 
     training; and
       ``(8) other independent living services.
       ``(f) Matching Funds.--
       ``(1) In general.--The Commissioner may not make a grant 
     under subsection (a) unless the State involved agrees, with 
     respect to the costs of the program to be carried out by the 
     State pursuant to such subsection, to make available 
     (directly or through donations from public or private 
     entities) non-Federal contributions toward such costs in an 
     amount that is not less than $1 for each $9 of Federal funds 
     provided in the grant.
       ``(2) Determination of amount contributed.--Non-Federal 
     contributions required in paragraph (1) may be in cash or in 
     kind, fairly evaluated, including plant, equipment, or 
     services. Amounts provided by the Federal Government, or 
     services assisted or subsidized to any significant extent by 
     the Federal Government, may not be included in determining 
     the amount of such non-Federal contributions.
       ``(g) Certain Expenditures of Grants.--A State may expend a 
     grant under subsection (a) to carry out the purposes 
     specified in subsection (d) through grants to public and 
     nonprofit private agencies or organizations.
       ``(h) Requirement Regarding State Plan.--The Commissioner 
     may not make a grant under subsection (a) unless the State 
     involved agrees that, in carrying out subsection (d)(1), the 
     State will seek to incorporate into the State plan under 
     section 704 any new methods and approaches relating to 
     independent living services for older individuals who are 
     blind.
       ``(i) Application for Grant.--
       ``(1) In general.--The Commissioner may not make a grant 
     under subsection (a) unless an application for the grant is 
     submitted to the Commissioner and the application is in such 
     form, is made in such manner, and contains such agreements, 
     assurances, and information as the Commissioner determines

[[Page S4128]]

     to be necessary to carry out this section (including 
     agreements, assurances, and information with respect to any 
     grants under subsection (j)(4)).
       ``(2) Contents.--An application for a grant under this 
     section shall contain--
       ``(A) an assurance that the agency described in subsection 
     (a)(2) will prepare and submit to the Commissioner a report, 
     at the end of each fiscal year, with respect to each project 
     or program the agency operates or administers under this 
     section, whether directly or through a grant or contract, 
     which report shall contain, at a minimum, information on--
       ``(i) the number and types of older individuals who are 
     blind and are receiving services;
       ``(ii) the types of services provided and the number of 
     older individuals who are blind and are receiving each type 
     of service;
       ``(iii) the sources and amounts of funding for the 
     operation of each project or program;
       ``(iv) the amounts and percentages of resources committed 
     to each type of service provided;
       ``(v) data on actions taken to employ, and advance in 
     employment, qualified individuals with significant 
     disabilities, including older individuals who are blind; and
       ``(vi) a comparison, if appropriate, of prior year 
     activities with the activities of the most recent year;
       ``(B) an assurance that the agency will--
       ``(i) provide services that contribute to the maintenance 
     of, or the increased independence of, older individuals who 
     are blind; and
       ``(ii) engage in--

       ``(I) capacity-building activities, including collaboration 
     with other agencies and organizations;
       ``(II) activities to promote community awareness, 
     involvement, and assistance; and
       ``(III) outreach efforts; and

       ``(C) an assurance that the application is consistent with 
     the State plan for providing independent living services 
     required by section 704.
       ``(j) Amount of Formula Grant.--
       ``(1) In general.--Subject to the availability of 
     appropriations, the amount of an allotment under subsection 
     (a) for a State for a fiscal year shall be the greater of--
       ``(A) the amount determined under paragraph (2); or
       ``(B) the amount determined under paragraph (3).
       ``(2) Minimum allotment.--
       ``(A) States.--In the case of the several States, the 
     District of Columbia, and the Commonwealth of Puerto Rico, 
     the amount referred to in subparagraph (A) of paragraph (1) 
     for a fiscal year is the greater of--
       ``(i) $225,000; or
       ``(ii) an amount equal to one-third of one percent of the 
     amount appropriated under section 753 for the fiscal year and 
     available for allotments under subsection (a).
       ``(B) Certain territories.--In the case of Guam, American 
     Samoa, the United States Virgin Islands, and the Commonwealth 
     of the Northern Mariana Islands, the amount referred to in 
     subparagraph (A) of paragraph (1) for a fiscal year is 
     $40,000.
       ``(3) Formula.--The amount referred to in subparagraph (B) 
     of paragraph (1) for a State for a fiscal year is the product 
     of--
       ``(A) the amount appropriated under section 753 and 
     available for allotments under subsection (a); and
       ``(B) a percentage equal to the quotient of--
       ``(i) an amount equal to the number of individuals residing 
     in the State who are not less than 55 years of age; divided 
     by
       ``(ii) an amount equal to the number of individuals 
     residing in the United States who are not less than 55 years 
     of age.
       ``(4) Disposition of certain amounts.--
       ``(A) Grants.--From the amounts specified in subparagraph 
     (B), the Commissioner may make grants to States whose 
     population of older individuals who are blind has a 
     substantial need for the services specified in subsection (d) 
     relative to the populations in other States of older 
     individuals who are blind.
       ``(B) Amounts.--The amounts referred to in subparagraph (A) 
     are any amounts that are not paid to States under subsection 
     (a) as a result of--
       ``(i) the failure of any State to submit an application 
     under subsection (i);
       ``(ii) the failure of any State to prepare within a 
     reasonable period of time such application in compliance with 
     such subsection; or
       ``(iii) any State informing the Commissioner that the State 
     does not intend to expend the full amount of the allotment 
     made for the State under subsection (a).
       ``(C) Conditions.--The Commissioner may not make a grant 
     under subparagraph (A) unless the State involved agrees that 
     the grant is subject to the same conditions as grants made 
     under subsection (a).

     ``SEC. 753. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     chapter such sums as may be necessary for each of the fiscal 
     years 1998 through 2004.''.

     SEC. 611. HELEN KELLER NATIONAL CENTER ACT.

       (a) General Authorization of Appropriations.--The first 
     sentence of section 205(a) of the Helen Keller National 
     Center Act (29 U.S.C. 1904(a)) is amended by striking ``1993 
     through 1997'' and inserting ``1998 through 2004''.
       (b) Helen Keller National Center Federal Endowment Fund.--
     The first sentence of section 208(h) of such Act (29 U.S.C. 
     1907(h)) is amended by striking ``1993 through 1997'' and 
     inserting ``1998 through 2004''.
       (c) Registry.--Such Act (29 U.S.C. 1901 et seq.) is amended 
     by adding at the end the following:

     ``SEC. 209. NATIONAL REGISTRY AND AUTHORIZATION OF 
                   APPROPRIATIONS.

       ``(a) Registry.--The Center shall establish and maintain a 
     national registry of individuals who are deaf-blind, using 
     funds made available under subsection (b).
       ``(b) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out subsection (a) 
     such sums as may be necessary for each of fiscal years 1998 
     through 2004.''.

     SEC. 612. PRESIDENT'S COMMITTEE ON EMPLOYMENT OF PEOPLE WITH 
                   DISABILITIES.

       Section 2(2) of the joint resolution approved July 11, 1949 
     (63 Stat. 409, chapter 302; 36 U.S.C. 155b(2)) is amended by 
     inserting ``solicit,'' before ``accept,''.

     SEC. 613. CONFORMING AMENDMENTS.

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

                   ASHCROFT AMENDMENTS NOS. 2331-2332

  Mr. ASHCROFT proposed two amendments to the bill, S. 1186, supra; as 
follows:

                           Amendment No. 2331

       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.
                                  ____


                           Amendment No. 2332

       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 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

[[Page S4129]]

     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).
                                 ______
                                 

                     LAUTENBERG AMENDMENT NO. 2333

  Mr. JEFFORDS (for Mr. Lautenberg) proposed an amendment to the bill, 
S. 1186, supra; 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 a 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).
                                 ______
                                 

                      DOMENICI AMENDMENT NO. 2334

  Mr. JEFFORDS (for Mr. Domenici) proposed an amendment to the bill, S. 
1186, supra; 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--
       (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.

                          ____________________