[Congressional Record Volume 144, Number 54 (Tuesday, May 5, 1998)]
[Senate]
[Pages S4252-S4349]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
WORKFORCE INVESTMENT PARTNERSHIP ACT OF 1997
The PRESIDING OFFICER. Under the previous order, the Senate will now
proceed to the consideration of H.R. 1385, which the clerk will report.
The legislative clerk read as follows:
A bill (H.R. 1385) to consolidate, coordinate, and improve
employment, training, literacy, and vocational rehabilitation
programs in the United States, and for other purposes.
The Senate resumed consideration of the bill.
The PRESIDING OFFICER. Under the previous order, there will now be 60
minutes of debate equally divided in the usual form for closing remarks
prior to final passage.
Mr. JEFFORDS. Mr. President, first I yield to the Senator from
Minnesota for a unanimous consent request.
The PRESIDING OFFICER. The Senator from Minnesota.
Privilege of the Floor
Mr. WELLSTONE. Mr. President, I ask unanimous consent that Jana
O'Leary, who is an intern in my office,
[[Page S4253]]
be allowed to be in the Chamber for the duration of this debate.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. WELLSTONE. I thank the Chair.
Mr. JEFFORDS. Mr. President, the Senate is resuming consideration of
the Workforce Investment Partnership Act, S. 1186. This legislation
incorporates job training, vocational education, and adult education.
Last Friday, the Senate began debate on S. 1186. Amendments by
Senators DeWine, Domenici, Lautenberg, and Ashcroft were adopted and
made a part of this substitute. We have only today to have the final
vote on the legislation, and we have 1 hour equally divided for that
purpose.
The legislation before this body today is one of the most important
proposals we will consider this year. S. 1186 proposes a streamlined,
practical, business-oriented approach to job training which empowers
States with the ability to transform the current patchwork of programs
into a comprehensive system. The purpose of this bill is to better
coordinate and to consolidate in certain circumstances 90 federally
funded programs and promote joint partnerships between education
leaders in the business community in developing a workforce development
system that is first rate.
Perhaps the best illustration of why we need to revamp our workforce
system can be clearly seen on a weekly basis in the want-ad sections of
the newspapers throughout the Nation. There are presently 190,000
unfilled positions in the technology field. The reason for the
difficulty in filling these positions is not because of low
unemployment numbers but because of the lack of skilled workers. Many
of these jobs do not require 4 years plus postsecondary education. In
fact, if we had the proper high school vocational education system,
these could be filled by students graduating from high school. They
require an excellent vocational education system and the ability to
pursue technical education following high school graduation or receive
this education as high school students.
One of the most fascinating facts to come out of the Senate Labor
Committee's hearings on the workforce is that Malaysia has replicated
our tech-prep model. In other words, we have presently a model system
with a few schools using it which, if duplicated throughout this
country, could provide us with what we need today. The unusual thing is
that in this country it takes us a long time to replicate anything
through our school systems. Malaysia came over here, studied our Tech-
Prep Program, and went back to Malaysia and implemented it overnight--
again, moving them into a position to improve their competitiveness and
perhaps exceed our own competitiveness.
That is the kind of challenge we have now had delivered to us by our
competitors in the international markets. It is up to us to take the
steps necessary to ensure that we can meet the international
competition which we are facing and not have 190,000 jobs out there
begging because we cannot provide the skilled workforce.
Fifteen years ago, ``A Nation At Risk'' was published and warned us
about this problem. This report posed the question as to whether the
United States would have an adequately trained workforce to meet the
global challenges of the 21st century. Fifteen years later, here is
what we have. According to the latest census information, 22 percent of
the population in the United States aged 25 and over have completed
less than 12 years of schooling. These are the kinds of problems with
which we are faced. A most recent national adult literacy survey
indicated that 44 million adults have literacy difficulty. This means
that over 20 percent of adults in this country have trouble using
reading, writing, and computation skills to say nothing of qualifying
for jobs that are available, for which we should have the workforce.
The same is true in my State of Vermont. All States have this very
serious problem.
With the statistics I just mentioned, the United States is still the
most productive country in the world, but we are losing our edge to
other industrialized nations such as Japan and Germany as well as other
rapidly developing countries such as Taiwan, Korea, and China. Recent
international exams have demonstrated that notwithstanding this warning
we had 15 years ago, we have not made significant headway in being able
to meet the challenge of that competition and to provide the workforce
for those 190,000 jobs that are going begging right now.
Over the past 25 years, the standard of living for those Americans
without a 4-year postsecondary degree has plunged. In the next decade,
we are in danger of being surpassed as the world's foremost economic
power if we do not begin to redefine our priorities at the national,
State, and local levels.
This is an excellent bill, Mr. President. Senator DeWine, my good
friend from Ohio, who was in charge of the subcommittee that developed
this bill, along with Senator Wellstone, has produced a wonderful bill.
It is going to do a great deal to bring us forward as we face the
problems of the Nation and the problems of our national
competitiveness.
Mr. President, at this point I will be happy to yield the floor.
Senator Wellstone, I believe, desires to be heard.
The PRESIDING OFFICER. The Senator from Minnesota.
Mr. WELLSTONE. Mr. President, I yield 5 minutes to my colleague,
Senator Kerrey, from Nebraska.
The PRESIDING OFFICER. The Senator from Nebraska.
Mr. KERREY. I thank the Senator from Minnesota.
Mr. President, I rise in support of S. 1186, the Workforce Investment
Partnership Act. This is an initiative that I have been involved with
since my days as Governor of Nebraska from 1983 to 1987, and it is
something I am proud to see come to fruition in the Senate.
All of us understand that in today's global economy, this kind of
legislation represents an important step in helping individual
Americans achieve their shot at the American dream.
One of the most satisfying efforts for me is to help, as a public
official, some individual acquire the skills they need to earn a good
wage so that they can support themselves and their families.
Investments such as vocational education, job training, and adult
education play a major role in this effort. But in order to be more
effective, these programs need to be streamlined and coordinated in
such a way that they work together to provide individuals the
information and resources they need to be successful in a job market
that demands an increasingly higher skill level.
In 1994, along with Senator Nancy Kassebaum of Kansas, I introduced
legislation to consolidate 91 job training programs into a single
authorization called the Workforce Development Act. The bill also
sought to reconnect job training, training-related education, and
actual jobs. It also provided States greater flexibility in designing
job training systems.
Mr. President, I take great pleasure and am pleased that these
concepts represented in this legislation are also incorporated into S.
1186. S. 1186 also encourages statewide partnerships consisting of the
business community, the education community, the Governor, and local
and State elected officials. A key responsibility in this partnership
is the development of a State plan. The legislation also encourages
one-stop customer service centers which will provide a central point of
entry to job training programs.
In the last few years in my State of Nebraska, Congress has increased
its commitment to preparing individuals for the workforce. We have seen
in our State an increase in Federal funding for job training of
approximately $1.5 million since 1996; for vocational education, we
have seen an increase of about $700,000; and for adult education, about
$460,000.
Mr. President, I would like to call this to the attention of my
colleagues. I suspect, if they are like me, sometimes these program
names get confusing, and I wonder whether or not they have any impact.
In Nebraska, the $6.276 million allocation of Federal job training
funds in 1997 provided 4,000 of my citizens with the skills they need
to become more productive and to earn a higher living and satisfy the
market demand, as the Senator from Vermont identified. There are many
jobs out there that are unfilled simply because we cannot find people
with skills. Mr. President, 4,000 of those jobs were filled; 4,000 of
those people are happier.
[[Page S4254]]
In addition, vocational and applied technology education grants
assisted 70,000 secondary students and 47,800 post-secondary students
who now have higher skills, a technical education they otherwise would
not have had. They are going to get a shot at the American dream. They
are going to be happier. They are going to be healthier. As I said,
there are very few things that are more gratifying than having an
individual say to you, ``Thank you for helping me get a shot at the
American dream,'' and 17,340 adults in a single year were assisted in
my State as a consequence of the $1.7 million in addition education.
This is an investment with an excellent return. The legislation will
not only help more individuals achieve the American dream but will also
help our Nation become the best educated, most productive country in
the world as we enter the 21st century. The Workforce Investment
Partnership Act represents a good bipartisan effort to increase
opportunities for American citizens. I look forward to seeing it move
through Congress, and I congratulate and thank sincerely the
distinguished chairman of the committee, Senator Jeffords of Vermont,
and the ranking Democrat on the subcommittee, Senator Wellstone, as
well as the chairman of the subcommittee, Senator DeWine. On behalf of
the tens of thousands of Nebraskans who will receive the benefits of
this program, I thank you.
Mr. WELLSTONE addressed the Chair.
The PRESIDING OFFICER. The Senator from Minnesota.
Mr. WELLSTONE. Mr. President, I ask if, after 10 minutes, I might be
so notified?
The PRESIDING OFFICER. The Senator will be notified.
Mr. WELLSTONE. Mr. President, first of all, let me thank Chairman
Jeffords for his leadership. He had a lot to do with this piece of
legislation. We did a lot of work on the Subcommittee on Employment and
Training, but Senator Jeffords and Senator Kennedy were absolutely
critical to bringing this piece of legislation finally to the floor and
keeping all of us together. Senator DeWine--it was really a labor of
love working with him. He has just put all of himself into this piece
of legislation. He has done a great job.
I would also like to thank a couple of other people: On Senator
Kennedy's staff, Jeff Teitz, who is out on the floor with me today, for
his work, and Brian Ahlberg who works with me and has put hundreds of
hours into this, as have a number of other very talented people.
I am not going to go into all of the specific provisions. I really
want to take some time to thank some people who helped out. But let me
just say, S. 1186, the Workforce Investment Partnership Act, is an
important piece of legislation. The President correctly observed that
the bill is ``essential to widening the circle of opportunity for more
Americans and keeping our economy growing steady and strong.''
My concern all along has been that over the past couple of years
there has been some discussion about cutting funding for job training
programs. That would be the worst thing in the world for us to do. I
think what we have now done, in a bipartisan way, is we brought people
together around to job training that really takes root at the community
level. We are talking about a program that is more streamlined. We
decentralize it. There are accountable job performance measures, as
there should be. The Governors have a key role to play, but they are in
partnership with local communities. And at local levels of government,
whether they be county or city, you have key decisionmakers as well.
The private sector is an essential part of this, as should be the
case, because a lot of these jobs that will be created will be in the
private sector. We are talking about, you know, that goal that I think
is the most important goal for most families in our country, which is
to earn a decent living and to be able to raise your children
successfully. This is all about doing that.
In addition, we have kept separate funding for adults and youth and
dislocated workers. We don't have a straight block grant program; we
keep our priorities at the national level. I think we should do that.
The out-of-school youth initiative is extremely important, targeting
funds to youth in high-poverty areas, both urban and rural. Please
colleagues--and I don't think too many colleagues make this mistake,
but quite often when we talk about ``youth'' or ``lack of jobs'' or
``young people dropping out of schools'' or ``inadequate housing'' or
``inadequate education'' or ``affordable child care'' or ``affordable
health care,'' we think about these issues as urban issues. These
issues are every bit as important to rural America. The problems are
more hidden but they are no less real. The nice thing about the out-of-
school initiative is that it is already paid for. Congress has already
provided $250 million in an advance appropriation.
I want to take special note of the contribution of Hennepin County
Commissioner Peter McLaughlin, who testified at one of our subcommittee
hearings.
I want to also take note of our important national job training
programs that we have renewed. The Job Corps Program, we have the
Hubert H. Humphrey Job Corps Center in Saint Paul, which is one of the
best performing centers in the country. Last year, we had Ralph
DiBattista and Dave McKenzie, the current director--Ralph was a former
director--at a hearing on youth training. They were joined by Susan
Lees, who is an impressive young trainee at the center, on her way to
becoming an auto technician at the Ford dealership.
The bill also renews current Native American programs and migrant and
seasonal farm worker programs.
And finally the veterans program--I want to say to the veterans
community, we heard from you loud and clear. You wanted to have a
separate focus on veterans programs, a separate funding stream. We have
some additional provisions by way of eligibility to make sure that gulf
war veterans, some of whom are really struggling, will be well served;
as well as homeless veterans.
We have also built into this bill the continuation of Concentrated
Employment Programs, rural CEPs. That is to say, in rural areas where
there is high concentration of unemployment and poverty, we have a
special focus to make sure the job training is out there.
I think--and many colleagues have worked on this but I get to say it
on the floor of the Senate, with some pride--this is a very Minnesota-
like program. The one-stop centers, we have been doing that in our
State. The idea of decentralization, of trying to build good
partnerships between the Governor and the local community, trying to
build good partnerships between the public and private sector with a
focus on good job training, good skills development, and job
opportunities for people. Job opportunities for people--I can't really
think of anything more important for us to be focusing our attention
on.
So, I want to make it very clear that I am very, very proud of this
piece of legislation. I thank my colleagues again--Senator DeWine,
Senator Jeffords, and Senator Kennedy as well.
Mr. President, how much time do I have left?
The PRESIDING OFFICER. There are 18 minutes remaining to the Senator
from Minnesota, 23 minutes to the Senator from Vermont.
Mr. WELLSTONE. Mr. President, I don't see other Senators on the floor
right now. I might just highlight some amendments to this piece of
legislation, to make maximum use of time.
There are five amendments to the bill which we have agreed to accept.
The first is one by Mr. DeWine. It is the vocational rehabilitation
bill. It is extremely important. I think what Senator DeWine has done
is basically provided a set of improvements to this piece of
legislation. It is an amendment that I strongly support.
There is an amendment by Senator Lautenberg which gives units of
local government which are currently service delivery areas under the
Job Training Partnership Act, and which have a population of 200,000 or
more, an automatic right to appeal to the Secretary of Labor a decision
by a Governor not to continue that area as an SDA. That also is an
amendment which I support.
There are two other amendments by Senator Ashcroft which I will my
colleague, the chairman, Senator Jeffords, to speak to if he chooses.
Mr. JEFFORDS. On my time, I will.
Mr. WELLSTONE. I won't use anymore time. I yield the floor.
[[Page S4255]]
The PRESIDING OFFICER. Who yields time?
Mr. JEFFORDS addressed the Chair.
The PRESIDING OFFICER. The Senator from Vermont.
Mr. JEFFORDS. Mr. President, I yield myself such time as I may
consume.
Mr. President, let me just make a few more comments. I believe
Senator DeWine will be here shortly. As was pointed out, there are
three bills which are combined in this bill, and I want to talk a
little bit about vocational rehabilitation.
It is extremely important that as we move forward, we do more and
more for our disabled community to give them every possible opportunity
to compete for jobs and to demonstrate their capacity to help our
Nation's workforce. We place these programs together, although we
maintain separate streams of funding to ensure that each of these
programs in adult education, vocational education, job training, and
vocational rehabilitation will not feel at all threatened that money
will be taken from them.
It is important at the same time that we recognize the great capacity
of people with disabilities to come into the workforce if they are
given the opportunity. By placing them in the same bill, it is
important to demonstrate that they are ready and willing to take
advantage of the opportunities in the workforce in many places which
they have been denied.
Also, as I mentioned earlier in my statement, the problems we have
with the adult workforce is literacy, to a large extent. As the demands
become higher and greater on our workforce, we are recognizing that we
need more people to move into the workforce to take the jobs that are
available. Thus, it is incredibly important that we coordinate adult
education along with vocational education.
That is the purpose of this bill, to get everybody to work together
to improve the workforce of this Nation to meet the competition of
nations overseas. While I am pleased with the progress we have made, I
believe that we have moved forward on this bill to do everything
possible we can to make ourselves more competitive.
I will now talk a little bit about a report released by the National
Center for Research and Vocational Education which gave a good overview
of training in European nations. I think it is important that my
colleagues understand the kind of competition we are getting in Europe,
and I will say the same is true and maybe even more so in Asia.
This report highlights the importance of a cohesive partnership
between educators and employers. Employers in Europe are active
participants in the governance of work-related education and training
in Australia, Great Britain, France and Germany.
Another significant finding of the report is that European nations,
such as the Netherlands and Denmark, are attempting to develop a
technical education system which can survive as either a bridge to
additional vocational training or pursuing college-level courses.
Although we are not Europe, we are beginning to make some progress.
With the passage of S. 1186, that progress will only continue to grow.
I am also hopeful that passage of the Workforce Investment
Partnership Act will eliminate many of the misconceptions that exist
regarding vocational education, adult education and training. Some
perceive vocational education as a second-rate education for students
who cannot otherwise succeed in the so-called traditional academic
path. Nothing--and I say nothing--could be further from the truth. In
fact, the opposite in many cases is the situation now.
Vocational education courses hold appeal for all students. In my home
State of Vermont, over 4,500 students participate in vocational
education courses of which 12 percent are adults. A strong technical
education system is the best kind of training. As has been pointed out,
as we move forward in our lives, the need for vocational education or
skills training is going to increase. We are going to change jobs five,
six, seven times during our lives as we move into the next century, and
we are going to need training continuously.
The same is true now with our society. However, we just do not have
the appropriate training available. We need to coordinate, we need to
get together and figure out how we can provide the skills that are
necessary.
If employment and training programs are to succeed, a simple,
integrated workforce development system must be established that gives
States, local communities, employers and students both the assistance
and the incentives to participate in our global economy. S. 1186 is a
good step in responding to this need. I urge my colleagues to support
the passage of the Workforce Investment Partnership Act.
Before turning to others who may want to speak on this legislation, I
again thank my colleagues and coauthors of the bill, in particular
Senators Kennedy, DeWine and Wellstone. In particular, I thank the
Employment and Training Subcommittee chaired by Senator DeWine, who has
done an outstanding job in putting together this bill. Senator
Wellstone, the Employment and Training Subcommittee ranking member, has
also done a tremendous job in drafting key provisions of this bill.
Senator Kennedy and I have been working for many years on this effort,
and we are pleased to have Senators DeWine and Wellstone as our
partners.
I also thank the staff of Senators Wellstone, Kennedy and DeWine, and
the staff of the Congressional Research Service and legislative counsel
have worked tirelessly on this bill.
In addition, I also thank the administration for their hard work. The
business community led by the National Alliance for Business, the
Chamber of Commerce, the National Association of Manufacturers are also
to be commended for their efforts and for their support.
I express my appreciation to the Chief State School Officers and
other educational organizations who offered constructive comments
during the drafting of S. 1186.
Most of all, I thank my home State of Vermont for serving as an
inspiration for this legislation. Almost 1 year ago, I held a hearing
in Vermont on workforce development. Over 100 Vermonters attended and
offered various perspectives which have been incorporated in this bill.
Also, I thank the State of Mississippi. I went down to the State of
Mississippi and found that they had one of the most innovative
vocational education systems that I have had the chance to observe.
They are dedicated there and doing a fine job.
In fact, I noted that their unemployment rate was going down, even
though they were losing hundreds of jobs to Mexico. Why? Because of the
business community seeing the state of their vocational training and
their ability to train for the skills necessary for the jobs that are
locating in Mississippi. Thus, they are losing low-wage jobs and
replacing them with high-wage jobs. We have, therefore, taken a close
look at the Mississippi system and have made sure our bill models their
initiative. So I commend those in other States and certainly my own
State of Vermont which I mentioned, who have tried to make efforts but
they have been hindered to a certain extent by the problems with our
present system, the inability to coordinate.
This bill is designed to try and provide that coordination, to ensure
that all of this country can move now to make sure that we are ready
for the future. We established the goals to make sure by the next
century we would have moved past our educational difficulties to the
greatest extent possible, to make sure that our young people would be
ready to enter the workforce, to make sure we provided them the skills
not after high school but in high school, as well as to make sure this
Nation would be competitive in the year ahead.
I yield to my good friend, Senator DeWine, who deserves maximum
credit from our side for his productive work in giving us a bill today
which we can be proud of, which we can vote for with great confidence.
We will improve this Nation's workforce.
I yield to Senator DeWine.
Mr. DeWINE. Mr. President, I thank Chairman Jeffords for the work he
has done on this bill. It is a real bipartisan bill, as we have pointed
out many times on this floor; Senator Wellstone, Senator Kennedy,
Senator Jeffords, myself. It is a bill that will truly change the
status quo, a bill that will really make a difference.
[[Page S4256]]
We will be voting on this bill in about half an hour. This
legislation, S. 1186, will fundamentally reform our Nation's currently
fragmented, duplicative and many times ineffective job training
programs. I believe this bill will transform them into a coordinated,
accountable, and flexible workforce investment system.
Before the Senate votes, I want to spend a few minutes discussing the
reasons why the Workforce Investment Partnership Act does enjoy such
bipartisan support. One of the most historic, if not the most historic
accomplishments of the 105th Congress was the legislation that
revolutionized the American welfare system. In passing a bill to end
welfare as we knew it, we were empowering the States and local
communities to seek a better way to make work, not welfare, the way of
life for millions of disadvantaged Americans.
The bill we are considering this evening, S. 1186, is a very
important extension of that basic welfare reform, continuing the
devolution of Federal power to where it rightfully belongs--States,
localities--and most importantly, the individuals who are voluntarily
seeking training assistance.
This bill, S. 1186, recognizes the leadership of States and
localities which have show innovation and initiative over the last few
years, even in the midst of many times onerous Federal barriers and
obstacles. By eradicating outdated rules and regulations, we can remove
the barriers that have stymied people in the past. We can empower
States and local communities by giving them the tools, the tools and
the flexibility that they need to implement real reform, reform that
will allow them to provide truly comprehensive training services.
This bill, S. 1186, also promotes free market competition. The
Workforce Investment Partnership Act establishes an effective and
accountable workforce development system, ensuring that training leads
to meaningful, long-term employment.
Under this bill, training services will be held accountable to high
standards. This means they will have to prove training leads ultimately
to meaningful, unsubsidized employment, showing how many people were
placed, at what cost, and how many people remained employed 6 months, a
year or 18 months later. That is true accountability. That is the true
measure of whether job training works or does not work. Does the person
have a job 6 months or 12 months later, and what kind of a job is it.
S. 1186 also has bipartisan support because it eliminates government
bureaucracy and promotes personal responsibility. The Workforce
Investment Partnership Act would provide training assistance through
individual training accounts or vouchers in order to allow the
individual seeking assistance to have a say themselves about where, how
and what training they will receive. These programs should be tailored
to individual needs, not to Washington bureaucrats and what Washington
bureaucrats think is best.
This bill provides program coordination and simplification. The
Workforce Investment Partnership Act incorporates nearly 70 categorical
programs, eliminating numerous Federal requirements and mandatory set-
asides. This bill authorizes and expands a modified work-flex program
which allows States to approve requests for waivers of Federal
statutory and regulatory requirements submitted by their local
communities. The bill provides States with the option to submit a
unified plan or a single-State plan for the numerous programs
incorporated into the legislation.
Further, this bill removes income eligibility requirements. States
will be allowed to provide all adults who voluntarily seek assistance
the comprehensive services available through the one-stop customer
service system--services such as job search, placement assistance,
skill assessment, and case management.
Just like welfare reform, job training reform depends on
participation of the business community, the local business community.
This bill not only allows for business community involvement, but
business community leadership, as well. The private sector must outline
its employment needs and assist in the design of training programs so
that individuals that receive training assistance obtain long-term,
meaningful employment.
To summarize, job training reform is needed. It is needed because we
can no longer afford the Washington-knows-best attitude that created
the current maze of training and related programs. With a few notable
exceptions, the evidence on the one-size-fits-all approach reveals far
more failures than successes. However, because of Congress' inability
to enact reform in the past, States and localities have begun the task
of creating their own comprehensive systems which meet the unique needs
of their States and local communities.
Frankly, they have been frustrated. They have been frustrated by the
Federal laws and regulations which prevent them from developing more
responsive and more effective workforce investment systems. This bill,
the Workforce Investment Partnership act, is designed to reform the
Federal Government's role in providing job training assistance to
Americans. For too long, that role has been to foster confusion,
frustration, and complication. With this bipartisan bill, we offer a
new foundation and a positive framework for success. Instead of rules
that tie the hands of States and localities, this bill provides the
tools, the tools to empower them to develop comprehensive work force
investment systems that address the needs of job seekers and employers
alike.
This morning's Cleveland Plain Dealer, in an editorial, I think, gets
it exactly right. ``A Bill That Works. Consolidation could produce job-
training programs that do their own jobs better.'' ``A Bill That
Works.''
This bill is a road map, a road map to a better system. If we are to
achieve the goals we have set--stronger economy, a better trained
workforce, true and meaningful welfare reform--we need to begin that
journey today.
I want to thank all my colleagues who have worked so hard to pass
this important bill. I also want to thank all the concerned individuals
and groups who have offered their support, including the National
Alliance of Business, City of New York, U.S. Chamber of Commerce, the
Council of Chief State School Officers, Society for Human Resource
Management, the National Conference of State Legislatures, the
Cleveland Growth Association, the National Association of
Manufacturers, the National Association of Private Industry Councils,
the National Association of Counties, the American Vocational
Association and the National Association of State Directors of
Vocational Education Consortium. All of these groups have worked to put
this bill together. We have a comprehensive bill that brings about the
reform that we all need.
In summary, we will be voting in a little over 20 minutes on a bill
that will fundamentally reform job training in this country. This
reform is long overdue. It is a reform that will bring about more
accountability. We will be able to measure success and failure better.
It is a bill that will give more authority to the local communities. It
will be a bill that will empower the recipients to have more choices in
regard to the job training that fits their needs. And it will work. It
will work because we are incorporating, as never before, the local
business community--not just in the implementation of the plan, but
rather in the design of the plan. The one thing that we have seen as we
have held hearings across this country, time and time and time again,
is how important it is to include the local business community because,
ultimately, they are the consumers, along with the people who need the
jobs and the people who need the job training. They are all the
consumers. It doesn't do any good to design a job training program and
train someone for a job and that job does not exist in the local
community. That is why the enclosure and inclusion of the business
community, making them a part of this process from the very beginning,
is such an essential part of this bill.
Let me again thank Chairman Jeffords for his work on the bill, along
with Senator Kennedy, Senator Wellstone, and the other members of the
committee. This bill was passed out of our committee by a unanimous
vote. Several of my colleagues have already noted on the floor that
this is a committee that has a very wide divergence of points of view.
This committee has many members that have opinions that many times do
not always
[[Page S4257]]
agree. But the fact that we were able to pass this bill unanimously out
of the committee, I think, shows its bipartisan support and also shows
that the status quo was not acceptable, and this bill makes a
significant change and improvement in that status quo.
I yield the floor.
PRE-VOCATIONAL TRAINING
Mr. SPECTER. Mr. President, I have sought recognition to discuss the
issue of pre-vocational training in the context of this legislation. In
March, I introduced S. 1709, the Job Preparation and Retention Training
Act of 1998, which would have authorized a new Labor Department program
providing grants to community-based organizations which would provide
essential pre-vocational training to individuals who have not
successfully entered the workforce.
In my floor remarks on March 4 upon introduction of S. 1709, I noted
that one such community-based organization, Opportunities
Industrialization Centers of America, Inc., has found that the average
hourly wage of trainees prior to pre-vocational training was $3.70, but
after such training, these same participants started earning an average
of $8.00 an hour, with a placement rate of 85 percent into gainful
employment.
After consultation with Chairman Jeffords, I have decided not to
offer my bill as an amendment to the comprehensive job training bill
before us, based on assurances that in Conference, he and Chairman
DeWine will work with me to ensure that pre-vocational training is more
accessible to individuals who are not prepared to fully benefit from
the training and skills development provided in S. 1186.
Mr. JEFFORDS. I thank my colleague from Pennsylvania for his work on
job training and educational issues, both in this context, and as
Chairman of the appropriations subcommittee with jurisdiction over such
programs. I will endeavor to work with him on enhancing the issue of
pre-vocational training in conference with the House and welcome his
input on this critical issue.
Mrs. MURRAY. Mr. President, I rise today to speak about S. 1186--the
Workforce Investment Partnership Act and to applaud the Labor and Human
Resources Committee for the bipartisan manner in which the legislation
was developed.
In the last Congress the opportunity for reform of employment and
training programs was lost due to partisan bickering and the insistence
on a reform structure which I believe jeopardized the investment in
skills training--and in particular the investment in the retraining of
dislocated workers.
This bill builds on the success of the dislocated worker program and
adds other elements which will improve the program. These include
establishing One-Stop centers as the framework of the new workforce
development system which will improve dislocated worker access to
quality information and services, and the proposed skill grants--or
Individual Training Account system--which will enable them to make
informed choices about training opportunities with qualified vendors.
Despite our improving economy, there are always workers who will lose
jobs because of economic change. We owe these workers the tools to get
back on their feet, through rapid response to plant closings and mass
layoffs, job search assistance and retraining for new jobs. I am
particularly pleased that this bill includes rapid response and labor-
management committees which have been important tools under the current
dislocated worker program. This program, where formula grants to states
and localities are supplemented by National Reserve Account to allow
the Secretary of Labor to respond to emergencies, has been successful
in helping hundreds of thousands of workers each year to make mid-
career changes.
The current dislocated worker program served approximately 540,000
dislocated workers nationwide in the most recent year. Of those who
completed the program during that year, 71 percent were employed when
they left the program, earning on average 93 percent of their previous
wages, and for workers who had received retraining, the wage
replacement was 95 percent.
The Office of the Inspector General of the U.S. Department of Labor
conducted an audit of JTPA Title III retraining services to determine
how successful retraining was in helping dislocated workers to return
to work. The conclusion of the April 1995 report was: ``The purpose of
Title III is to return dislocated workers to productive employment. In
this context, the program was successful. Program participants were
reemployed, remained in the workforce, and regained their prior earning
power.''
In my own state of Washington, we have experienced layoffs in the
timber and aerospace industries and the assistance provided by Title
III of JTPA has been essential to meeting the needs of affected
workers.
The success of the program is illustrated by the experience of one
dislocated worker, Mr. David Hamilton of Valley, Washington. He had a
steady income working in the logging industry, but only for six to
eight months each year. This created a difficult financial situation
when employment was not available. In July 1995, he was laid off from
Accord Logging.
He decided to investigate career options in the cross-country truck
driving field. He learned of the opportunities available through JTPA
and began actively seeking financial assistance for training. With only
a tenth grade education, his employment opportunities were limited. He
knew that he needed a GED, but his assessment test also indicated a
deficiency in basic math skills. With his unemployment benefits nearly
exhausted, he held steadfastly to his hope of entering the truck
driving industry. He pursued his education and training through the
Colville Job Service JTPA Title III program. His determination to
obtain a Commercial Drivers License increased as he passed his physical
and Wonderlic tests (in lieu of a GED). He met the program
qualifications for Title III funding and completed his training on
February 23, 1997, with excellent grades. He was immediately placed
with G & G Trucking and was driving cross-country the following Monday.
G & G agreed to assist him with the financing needed to purchase a
tractor. Within six months he became an owner-operator. As an owner-
operator, he will earn between $12 and $18 per hour. He now has a
reliable source of income and greater financial security.
The success of Mr. Hamilton and other dislocated worker program
participants is why I am so pleased that S. 1186 is designed to assure
that funding for dislocated workers will be maintained. This is an
important improvement over last year's bill and I thank the authors of
S. 1186 for their attention to this critical item.
Mr. President, I also ask unanimous consent to have printed in the
Record a letter from Mr. Rick Bender, President of Washington State's
Labor Council. I have been working with Chairman Jeffords to address
Title III in the bill which provided training funds only after labor
consultations have been performed. I am hopeful that the Department
will work with respective labor organizations to continue this
successful communication. Washington State has developed a Community
Based Rapid Response policy that quickly meets the various needs and
concerns of dislocated workers. Mr. Bender has been at the forefront of
this effort and provides a compelling argument to continue this
consultation.
There being no objection, the letter was ordered to be printed in the
Record, as follows:
Washington State
Labor Council, AFL-CIO,
Seattle, WA, March 25, 1998.
Hon. Patty Murray,
U.S. Senate,
Washington, DC.
Dear Senator Murray: The Workforce Investment Partnership
Act (S. 1186) is ready to come to the floor of the US Senate
for action. The Act, as written, is missing a crucial
provision of benefit to Union members.
The current JTPA Act provides that, ``. . . any program
conducted with funds made available under Title III which
will provide services to a substantial number of members of a
labor organization will be established only after full
consultation with such labor organization.'' (Sec.
311(b)(7)). This provision is ominously absent from the new
bill.
The new legislation will cause irreparable harm to our
Union members who suffer layoff through plant closure due to
the failure to require labor consultation when planning
services for them.
The language quoted above has enabled the Washington State
Labor Council, AFL-CIO, to assist its affiliates in demanding
appropriate levels of service for their members who are
facing long term layoff. The ability to demand that funding
be pulled from bad
[[Page S4258]]
retraining programs has been key to the success of Labor's
active participation in workforce employment and training
programs in Washington State.
The Washington State Labor Council presently operates a
contract with Washington State Employment Security to provide
Rapid Response services to our union members whose plant(s)
may be closing or downsizing. By actively invoking this
language, we make the workforce development system move
towards a customized approach toward service and training
design, which takes the needs of working men and women and
their families into account. Without this language in the
bill service and training design will take the convenience of
service agencies into account, not our members' needs.
Any assistance you can provide to insert this crucial
provision into S. 1186, the Workforce Investment Partnership
Act, will be greatly appreciated.
Sincerely,
Rick S. Bender,
President.
Mr. KOHL. Mr. President, I rise today to add my voice to the
bipartisan chorus in support of the Workforce Investment Partnership
Act. I commend the sponsors for their excellent work. Senators
Jeffords, DeWine, Kennedy, and Wellstone have done an outstanding job
of crafting legislation that is long overdue. For too long American
workers have had to struggle through a complex system of dozens of
different job training and educational programs to get the skills they
needed to enter, or reenter the job market. Today, the Senate takes
concrete steps to streamline the current system so that getting the
help they need will be easier for the workers of America.
The Workforce Investment Partnership Act simplifies the search for a
job by encouraging communities to establish a ``one stop shopping''
location. Localities will have one location where an individual can go
to get help finding a job or search out skill training opportunities.
At this location all of the options will be laid out, and the choice
will be up to the worker.
Inherent in this idea is that there will be no wrong door. No longer
will a person be told, ``We can't help you here because you don't
qualify for these programs. Maybe they can help you down the hall.''
That sort of bureaucratic run around results in inefficiency and
frustrates the very people we are trying to help.
This job training reform bill focuses on shifting power back to the
states and local communities. Government, business, labor, and
community groups will collaborate on strategies that fit the economic
situation of the individual state and locality. The Senate version of
this bill also takes the important step of allowing states to keep
reforms they have made that are working. Wisconsin has made many
changes to its job training system on its own initiative that have been
ground- breaking and very successful. I am pleased the Committee
recognizes that there is no need to replace programs that are already
doing the job and meeting the goals set forth in this legislation.
I am also pleased we maintain our commitment to helping at risk
youth. This bill ensures that providing opportunities for kids on the
edge will continue, and that the funds will move quickly to those who
need it most. I hope that the Conference Committee can quickly complete
its work so that the $250 million set aside in last year's budget for
Out-of-School Youth will become available before the July 1 deadline.
These kids need our help to become productive citizens and contribute
to society. If Congress fails to complete action before July 1, these
young people will be forced to wait even longer for our support.
In today's global economy, our people are our greatest resource. With
the rise in information and technology, the nations that are the most
creative, most innovative, and most inventive will have the edge. The
United States currently has the lead in these sectors and this bill
will help our people maintain their advantage through continuing their
education and updating their skills. Our nation's continued prosperity,
and the prosperity of our workers, hinges on a well-trained workforce.
This bill helps ensure that our current economic growth will continue
into the future and be shared by all Americans.
Mr. HARKIN. Mr. President, I rise in support of S. 1579, the
Rehabilitation Act Amendments of 1998, of which I am proud to be an
original co-sponsor. I would like to commend Senators Jeffords, DeWine,
Kennedy, and Wellstone, for making reauthorization of the
Rehabilitation Act a priority, and for including this legislation as an
amendment to the Workforce legislation.
The State Vocational Rehabilitation Services Program provides $2.2
billion in formula grant assistance to States to help individuals with
disabilities prepare for and engage in gainful employment. Since
established by the Smith-Fess act 75 years ago, state vocational
rehabilitation programs have served some nine million people. This
program promotes economic independence for people with disabilities,
and the numbers reflect that.
In 1992, Congress made major changes to the Act, namely, increasing
consumer participation, streamlining processes, and reducing
unnecessary paperwork. In the bill before us today, we have built on
the '92 amendments. The bill preserves and strengthens the themes of
the '92 amendments, while fine-tuning and aligning the Act with other
workforce reforms.
The Rehabilitation Act Amendments of 1998 strengthen the role of the
consumer throughout the vocational rehabilitation process, particularly
in the development of the individual's employment plan. This
reauthorization reduces unnecessary burdens on State VR agencies by
streamlining the State plan; indeed, the bill reduces the 36 State plan
requirements in current law to 24. The bill also refocuses the State
plan on improving outcomes for individuals with disabilities by
requiring States to develop, jointly with the State Rehabilitation
Council, annual goals and strategies for improving results.
Access of Social Security beneficiaries to VR services is
facilitated, and unnecessary gatekeeping is eliminated, by making SSI
and SSDI beneficiaries presumptively eligible for services under the VR
States Grants program. This change will eliminate the need for the VR
agency to determine on a case-by-case basis whether individuals
``require'' VR services in order to gain employment. Under this bill,
if a person receiving SSI or SSDI walks through the door of a VR
agency, that person will be presumed eligible for VR services. As the
Administrator of the Iowa VR agency explained to me, ``now we don't
have to spend time and money determining whether an individual on SSI
or SSDI is eligible for services. Instead, we can focus our resources
where they should be focused--on assisting our consumers in obtaining
employment.''
Of particular interest to me and to Senator Dodd are the changes to
Section 508 of the Act, which pertain to electronic and information
technology accessibility. This section will make it easier for
individuals with disabilities who are federal employees to obtain the
assistive technology they need in order to do their jobs.
Finally, this bill widens employment opportunities for people with
disabilities by establishing linkages with larger statewide workforce
systems. I would like to point out, however, as Senators Jeffords,
DeWine, and Kennedy already have, that vocational rehabilitation
agencies will not be required to spend any of their federal allotment
on activities other than those that help provide jobs for people with
disabilities.
In sum, the Rehabilitation Act Amendments of 1998 bring us closer to
the goal of fostering independence for people with disabilities by
providing them with the services they need in order to enter the
workforce. I would like to thank Senators DeWine, Jeffords, Kennedy,
Wellstone, and Dodd, and the Clinton Administration, for their
leadership in developing this bill in a bipartisan manner. I also would
like to commend all the staff members who worked on this bill. Without
their tireless efforts, we would never have been able to bring this
important reauthorization to the floor.
Mr. JOHNSON. Mr. President, I share the widespread support for this
important legislation. This bill would consolidate and reauthorize job
training and vocational education programs. This bill enables states to
create a unified plan for all social services related to job training
and vocational and adult education.
Job training and vocational education are vital programs which
prepare individuals to compete in today's changing global economy. An
estimated 346,000 high-tech jobs are going
[[Page S4259]]
unfilled nationwide. The increasing shortage of highly trained workers
threatens our nation's economic growth and our productivity. This
measure will help address these short-comings and prepare more of
America's workers, and thus America's businesses, for the Twenty-first
century.
We live in a capitalist society with a free market economy. Employers
seek to hire the best qualified job candidates. S. 1186 simply provides
a means to help individuals acquire the skills necessary to compete.
The acquisition of these skills will best help individuals thrive as
our economy continues to grow. Too many of our citizens have been left
behind the growing economy of the past years, and this measure will
help them keep up with the new economy.
I believe that S. 1186 also supports our commitment to move
individuals from welfare to work. Job training prepares individuals to
compete in the marketplace, and remain free from government assistance.
For all of the foregoing reasons, I support this bill.
One important part of this legislation is the reauthorization of the
programs under the Carl D. Perkins Vocation and Applied Technology
Education Act. I have heard from constituents across my state that
these programs are a very critical component of our vocational and
technical education system.
As we in the Congress work to help our nation prepare for the Twenty-
first century, there are few challenges more fundamental to our success
than ensuring that our work force has the education and training
necessary to compete in the global economy. More and more jobs require
technical skills, training that is not offered in our traditional four-
year colleges. Our vocational and technical schools, accordingly, are
absolutely essential for the students and workers of today. Technical
skills lead to higher wages for workers and more competitive
businesses. That is why the federal-state-local partnership for
vocational and technical education, which has been very successful to
date, must be continued.
The highest priority for the moment is to get the reauthorization of
the Perkins Act programs through the Senate and into conference. The
legislative session this year is very short, and we cannot afford to
delay passage of this bill any further. That said, however, there are a
number of provisions of this bill which need improvement.
Foremost among the needed changes, in my view, is that the Senate
should accept what the House has proposed in terms of a separate bill
for vocational-technical education. This difference is very crucial,
for it is essential to preserve the independent mission and funding
stream for vocational education.
For some time, it appeared that the Senate bill was headed in the
wrong direction, removing the separate designation for vocational and
technical education and placing these programs into the mix of the
overhaul of our job training and retraining programs. That would have
been a serious mistake, and I am pleased with the improvements that the
managers of this bill have agreed to offer to this legislation.
Among the expected changes is an assurance that funding appropriated
for vocational-technical education programs will be directed to school-
based programs and not diverted to other areas. Additionally, the
amendment is expected to ensure that governance for vocational
education will remain at the state and local level, and that a strong
focus will remain on professional development for teachers and
administrators.
The House, on the other hand, has proposed a separate legislative
authorization for the Perkins Act programs. Despite the forthcoming
changes to the Senate bill, I urge the Senate conferees to accept the
position of the House with respect to reauthorization.
Today, however, I believe that we should send this bill to the
conference committee, where I hope that the remaining issues can be
resolved, and I urge my colleagues to join me in passing this bill as
expeditiously as possible.
Workforce Investment Partnership Act
Mr. DASCHLE. Mr. President, the time has come for the Senate to take
appropriate steps to ensure that our work force is equipped to meet the
challenges we will face in the next century. Today, high-skill, high-
wage jobs are being created faster than they can be filled. This is not
because of a labor shortage. Instead we are suffering from a ``skill
shortage.'' Not enough workers in this country possess the skills
necessary to fill these jobs. In order to keep our economy strong and
growing, our people must receive the education and training they need
to become productive employees in the 21st century.
The Workforce Investment Partnership Act of 1997 (WIPA) is the first
step in providing the education and training job seekers need to
compete for high-wage jobs. This bill would consolidate many narrowly-
focused federal vocational education, adult education and job training
programs that currently provide a disjointed approach to job training
and job placement. Through the establishment of ``one-stop'' customer
service centers, job seekers will have a central point of entry to job
training programs. These one-stop centers will also offer ``individual
training accounts'' allowing job seekers to choose their preferred type
of education and job training programs to better accommodate their
individual skills or interests. Finally, one-stop centers will provide
applicants and employers alike with a centralized source of information
about training and employment opportunities available in the area.
WIPA's goal of streamlining our many training programs bears great
similarity to legislation I introduced in January, 1997, called the
Working Americans Opportunity Act. Reforming and improving our nation's
job training system has long been a Democratic priority. I am glad to
see strong, bipartisan support for WIPA and look forward to working
with my colleagues on the other side of the aisle to enact this
important legislation.
The passage of this legislation is of particular importance to the
people of South Dakota, where we have recently experienced large scale
layoffs in Huron with the closing of the Dakota Pork processing plant,
and in Lead with cutbacks at the Homestake Gold mine. People in my home
state have been drastically affected by these layoffs. It is my hope
that these programs will enable them to receive the training they need
to compete for the high-wage jobs of tomorrow.
I believe it is very important that any investment we make in
education and training produces positive, measurable results. That's
why I am pleased this bill ensures that each training provider and
agency administering state and local programs is held to a higher level
of accountability than in the past. These agencies will be responsible
for monitoring and reporting job placement, job retention and average
earnings for program graduates. If a program is not performing up to
acceptable standards, it will no longer be eligible to receive public
funding.
It is of particular importance that we act quickly on this bill.
Unless it is signed into law by June 1, the Department of Labor will
not be able to implement Youth Opportunity Grants. This grant program
invests money in poverty-stricken areas to help youth who have left
school to get year-round jobs. Appropriations for these grants are
contingent on the authorization of the Workforce Investment Partnership
Act. This worthwhile program deserves a chance to be implemented as it
was intended.
By working in a bipartisan way to reform vocational education and job
training programs, I believe that we can, during this Congress, create
opportunities for American workers that will help to keep our economy
strong for the next century.
Mr. McCAIN. Mr. President, I rise to offer my support for HR 1385,
the Workforce Investment Partnership Act. This bill is the result of
several years of hard work and bipartisan cooperation by Congress on
behalf of our nation's workforce and employers.
Our present job training system has become overly bureaucratic,
fragmented and duplicative without adequate accountability or
assessment measures. Currently, the federal government administers 163
separate programs, scattered across 15 agencies, at a cost of more than
$20 billion a year. The Workforce Investment Partnership Act addresses
these problems by consolidating and reforming the nation's federal
vocational education, job training, and adult literacy programs.
[[Page S4260]]
Bluntly, this bill reduces Federal bureaucracy and unnecessary
requirements.
This legislation builds upon the monumental welfare reform bill of
1996 by giving our states and communities the appropriate tools for
providing individuals with the education, skills and training necessary
to obtain meaningful, long term employment. This is something which our
current system has been unable to consistently and effectively provide
for our workforce. The Workforce Investment Partnership Act will
provide individuals with an opportunity to increase their skills while
obtaining a job. This will help millions of Americans attempting to
move themselves out of the welfare system. If the historic welfare
reforms made in 1996 are to work we must have an effective system of
job training and vocational and adult education.
Over and over again, I hear from employers in my home state of
Arizona who are concerned about the lack of individuals qualified to
fill their rapidly growing high-tech and high-paying positions. And I
know this isn't just a problem in Arizona. This is a problem throughout
our entire country. Nationally, the number of unfilled high-tech jobs
is about 350,000. We cannot allow this trend to continue. If we do
allow this trend to continue, we will be killing our ability to compete
in the global market and remain ahead of our international competitors.
An important aspect of this legislation is the flexibility and
freedom it provides to the individual states for developing and
designing their own tailored-made workforce development systems. Under
this bill, states and local communities, can tailor their programs to
best suit their unique populations and employment needs.
Another important aspect of this legislation is that it contains
reauthorization of the Rehabilitation Act for seven years. The
Rehabilitation Act is the country's only Federally supported program
which provides job training and placement services for people with
disabilities. Too many disabled individuals are falling between the
gaps in the existing vocational systems which is why the Workforce
Investment Partnership Act links the vocational rehabilitation system
to the new workforce systems of each state. This will result in
providing better jobs for more of our nation's disabled individuals.
The success of our nation in this increasingly globalized,
competitive economy depends upon a highly skilled workforce, and a
comprehensive, sophisticated system of work preparation, training, and
retraining. The Workforce Investment Partnership Act is a positive step
toward accommodating these needs. Again, I am pleased to support this
bill which will create a more efficient and effective job training
system for our country.
Mr. LIEBERMAN. Mr. President, I would like to say a few words about
the Workforce Investment Partnership Act of 1997 that we are voting on
today in the Senate. The Workforce Investment Partnership Act will
reform vocational education, adult education and job training programs,
provide more accountability within these programs, and improve delivery
to our citizens. Education and training are two of the most important
investments a government can make in its citizens. It is as important
as ensuring the physical health of its citizens because education and
training, and the robustness of a nation's industry, are primary
determinants of the economic health of the country. Education and
training also determine individuals' ability to reach personal goals.
Providing people with quality education and training moves people off
the welfare rolls, increases upward mobility, increases incomes, and
provides our industry with a more skilled workforce.
We are in the enviable situation now of having only 4.7 percent
unemployment in the United States. The high-tech industry tells us it
has as many as 190,000 unfilled jobs. There are jobs available. The
challenge is to match the worker's skill with industry needs. There are
two challenges to providing workers with the necessary skills. The
first is to make sure our children coming out of school have the basic
skills they need for today's workforce, and then, to realize that
learning, education and training are lifelong pursuits and do not stop
once you join the workforce.
It is clear we need to do more in both these areas. A good education
should be our long term goal. But, as my esteemed colleague Mr. Kennedy
mentioned last week, right now we have over three million young men and
women between the ages of 16 and 24 in this country who did not
complete high school and are not enrolled in school.
After interviewing a diverse group of employers and college
professors, Public Agenda found profound dissatisfaction with the way
public schools are preparing students. More than 60% of employers and
three quarters of professors said they believe that a high school
diploma is no guarantee a student has learned the basics, and nearly 7
out of 10 employers said the high school graduates they see are not
ready to succeed in the workplace. These young people will need
remedial education and training in order to join the workforce.
But young people are not the only ones who need help. The program in
S. 1186 focus on the unemployed, dislocated, disadvantaged and
seriously underemployed whose industry may be downsizing, whose
employer may be moving offshore, who lack a sufficient education, who
are coming off of welfare, or who haven't kept pace with technological
skills needed for today's rapidly changing workplace. To remain
competitive in today's workforce, workers must be more flexible in
terms of changing careers and upgrading their skills. S. 1186
recognizes the importance of lifelong learning and enables people to
receive the education and training they need at any point in their
life.
This bill provides the ties between education and job readiness. It
does this by consolidating dozens of narrowly focused programs and
replacing the present fragmented system with an integrated workforce
system. It integrates adult education and literacy instruction with
occupational skill training and professional development. It integrates
vocational and academic studies. Importantly, this legislation brings
the business community into the process by creating industry-led policy
making boards that develop strategies for a comprehensive workforce
investment system in each State. Involving business is essential to
ensuring that training programs are based on local employment needs and
conditions.
Another innovation of The Workforce Investment Partnership Act is
that it establishes ``individual training accounts'' to give job-
seekers more choice in selecting the type of education and training
programs they want. The bill also encourages the creation of ``One-Stop
Customer Service'' centers which provide a central resource for all job
seekers, not just those that qualify for Labor Department programs, to
get information on training and employment opportunities available in
the local area.
In Connecticut, we have already seen the benefits of implementing
some of these changes. We are starting to implement the One-Stop
Customer Service centers. We have streamlined JTPA and TANF, the
welfare-to-work program. We have moved the job component of TANF from
the Department of Social Services to the Labor Department where the
jobs are--where it belongs.
The Workforce Investment Partnership Act is one piece of the solution
to improving our nation's workforce. We still need to improve our
educational system, attract more students into the maths and sciences,
and make lifelong learning and skill upgrades a part of everyone's
life. America is beginning to move in this direction. President Clinton
introduced the Hope Scholarship that will encourage lifelong learning.
Some states and industries are beginning to cooperate to create worker
training programs that serve regional industry clusters; Senator
Sarbanes introduced, and I am proud to be cosponsoring, S. 2021 to
stimulate this cooperation among companies to develop regional skills
alliances that provide training for jobs that are waiting in the
participating companies. More companies are working closely with local
community colleges and universities to match academic programs with
workforce needs. We need to support all these different pieces because
they fit together to provide our citizens with the tools they need to
not just keep up but to move ahead and realize their goals.
[[Page S4261]]
I applaud the work of Senator DeWine, Senator Jeffords, Senator
Kennedy, Senator Wellstone, and their staffs in drafting the Workforce
Investment Partnership Act and I appreciate all the hard work that went
into it. I support this worthy legislation.
Mr. ENZI. Mr. President, I rise in support of the Workforce
Investment Partnership Act, offered by Senator DeWine, Senator Jeffords
and other members of the Subcommittee on Employment and Training on
which I serve. I would like to take a minute here to express my reasons
for supporting the bill and explain why this is a good piece of
legislation.
Our mission in this area was most clearly put before us by the
General Accounting Office. In their testimony to the Senate Labor
Committee they showed that our current system for delivery of job
training and vocational education is broken. The 163 programs across 15
agencies result in a disjointed and uncoordinated system that is a very
inefficient use of the taxpayers' money. I have said that we probably
need an education program just to teach people how to figure out how to
find federal job training assistance. We need to simplify the process
and this bill fixes many of the problems that the GAO outlined.
This legislation is built around the idea that we need more
flexibility for state education and labor programs to work. It builds
on local needs and interests, ensuring a fair partnership between
business and educators. Importantly, it maintains strong program
objectives while at the same time, allowing individuals to make
decisions about their own training programs through a voucher system.
The goals of the vocational education program are clear--to prepare
kids for what happens after high school. Not all kids are college-
bound. Not all kids should be college-bound. Those who are not, should
have an opportunity to follow educational programs that are relevant to
their interests. This bill gives States greater flexibility to design
programs that will target the unique needs of their students.
The goals of the job training programs are also clear--to prepare
people for their jobs in a rapidly changing workplace. Business
cooperation and input is critical for that. Flexibility for state and
local partnerships is also important so they can tailor programs to
meet local needs. This bill accomplishes that flexibility and increases
local empowerment.
My home State of Wyoming has made a lot of progress in this area. Our
Governor, Jim Geringer, has taken a strong interest in developing a
coordinated system of education and employment, with an emphasis on
individual responsibility. Two years ago, he called for a state-wide
conference on the issue. The focus was how to help Wyoming's people
meet ever-changing workplace needs and how we could help not only our
kids, but our adults, find and keep valuable jobs without having to
leave the State.
One of the biggest problems we identified in Wyoming was that the
federal system was fragmented, had too many narrow categories of
eligibility, duplicated effort and had confusing accountability
requirements. The bill before us today will resolve these problems. It
will improve delivery by enabling states to develop coordinated
education and training programs. It gives States the program
objectives, but allows them to design their own measurement systems.
Most importantly, this bill lets the people in my State focus federal
dollars where Wyomingites think they should go.
One part of the bill that I strongly support are changes that have
been made to the Labor Market Information system. Here we have been
able to move towards a state-based data system and ensure that state
needs get a priority with the Department of Labor's Bureau of Labor
Statistics. In the past, the Bureau has paid little attention to state
statistics agencies. This is another issue of local control where
people in our states know more about what labor information is
important to local needs.
I want to take a minute to address a few of the specific concerns
that have been raised about this bill. First is the difficulty raised
by the National Governors Association about coordination with local
workforce boards. This does not pose a problem in my state because we
do not have any population centers that would qualify for separate
local grants. Our State Workforce Board will serve the entire state. On
this issue, however, I would say that it is important for State
Government to be able to coordinate these activities. I also believe
that local government knows best when it comes to the needs of local
communities. This bill strikes a sound balance between these two
efforts.
The second concern I have heard is that ``unified plans'' will allow
governors to transfer education money into training. Again, it is my
position that local and state government is most responsive to and
knowledgeable about local needs. If educators are unable to justify
certain spending in the face of greater needs in training areas, then
local government should be able to make that decision. That works both
ways. Training advocates will have to show the importance and relative
value of their programs. This bill provides a great opportunity for
state and local governments in Title 5, which provides an option for
unified plans. Not surprisingly, this part has caused the most
difficulty for ``big government'' types at the Departments of Labor and
Education.
A third concern I have heard is that this bill will give the
Secretary of Education increased powers over the content of state
education plans. I want to point out that I am very sensitive to that
question. It is one of the first tests I apply in my review of any
proposal that affects K-12 education. Local and state control must be
preserved. With that in mind, it is important to note that the concerns
are not unfounded.
This legislation directs the Department of Education to consult with
states in developing performance measures to evaluate state programs.
The measures relate to student mastery of academic and vocational
skills, as well as placement and retention in education and later in
job situations. States will then negotiate with the Department to
determine expected levels of performance--tailored to meet State
differences--but according to the index developed by the Department.
The question is--Is it more intrusive than current performance
requirements under the Carl Perkins Act?
Under the Perkins law, States must submit plans that include
descriptions of how they will meet certain federal objectives. But
there is one big difference. Carl Perkins empowered state boards to
develop the performance measures. States only had to show they were
making progress according to their own defined measurements. I am very
concerned about allowing the Department of Education into the
development of these measurements. I do not believe the federal
government is genuinely capable of setting standards for mastery of
academic and vocational skills for our kids. That role belongs to
elected school boards and state government--not to appointed federal
officials.
The good Senator from Missouri, Senator John Ashcroft, has expressed
real concerns about this part of Title 1 of the bill. While I strongly
support the majority of this legislation, I would prefer to see the
performance provisions that were included in the House bill, end up in
the final version. I do intend to push for the House version in
conference.
In closing, Mr. President, I want to say that this is a good bill. As
with any legislation, though, it is not perfect. There are some parts I
would prefer to see removed or changed. But on the whole, this bill is
a remarkable improvement over the chaotic maze of existing job
training, vocational education and adult education programs. It is a
step forward for local and state control of these efforts. It is a step
forward in simplifying delivery of these services and making them more
responsive to changing needs. And it is a step forward for personal
choice and for accountability.
Ms. MIKULSKI. Mr. President, I rise today in support of the Workforce
Investment Partnership Act of 1997. As a member of the Committee on
Labor and Human Resources, I am very proud that we have produced this
bipartisan legislation. As a United States Senator, one of my
priorities for Maryland is to work hard to keep our economy strong.
This bill represents a real step
[[Page S4262]]
forward in maintaining a robust economy for America.
I support this bill for three reasons. First, it represents a
comprehensive reform of vocational, adult education and job training
programs. Second, it provides for the essential element of
accountability. Finally, it streamlines the delivery service system
into ``One Stop Customer Service.''
This legislation consolidates many of the narrowly focused programs
which exist for job training and adult education. In the past, these
programs have really represented no system at all. The patchwork of
rules, requirements and bureaucracy did nothing but confuse the people
these programs were designed to help. The Workforce Investment
Partnership Act incorporates nearly 70 of these programs into a
simplified plan. Allowing states the option to submit a ``Unified
Plan'' makes the most sense for streamlining and simplifying the
system.
I believe, Mr. President, that accountability in training is
essential. Programs must deliver what they promise. In exchange for
giving States the flexibility they need to design and achieve
strategies for reform, it is reasonable to retain some Federal control.
Taxpayers deserve a dollar's worth of service for a dollar's worth of
taxes. The standards for measuring state performance provide that
accountability.
In my state of Maryland, we currently have forty-one One-Stop career
centers with more on the way. These ``user-friendly'' services are
critical to helping people entering into employment training and
placement. Providing core functions in one, easy customer service
system is truly the focal point of the legislation we are voting on
here today. One Stop centers have been proven effective both in
Maryland and nationwide. I am very pleased to see the progress these
centers have made and that they are the cornerstone of the Workforce
Act.
This legislation, Mr. President helps our citizens who are ready,
willing and able to work. By giving the States and business communities
more flexibility in designing their training programs, we are giving
our citizens an opportunity for a new beginning. It gives them a new
beginning to become more productive members of our workforce. It gives
them a new beginning to get off the welfare rolls and earn the self-
respect they deserve by earning their own money and taking care of
themselves.
The future of our country means making sure that our workforce is
trained and ready to face the challenges of the 21st century. This
means the federal government taking responsibility for getting our
people off welfare and providing real solutions for getting them
trained and helping them find work. By empowering our citizens with
real life tools for success in the workforce we can achieve real reform
of the current system. I am proud to serve on the committee that
stepped up to the plate and showed the American public that we are
ready to fight for our workforce.
High Schools at Community Colleges
Mr. DOMENICI. Mr. President, I rise today to say a few words about my
amendment to the Workforce Investment Partnership Act of 1998 and to
make a few comments about the overall bill.
Simply put, my amendment allows consortia applying for a Tech-Prep
the additional option of using the money to locate high schools at
Community Colleges. The Tech-Prep section already seeks to create
consortia of local schools, post-secondary schools, and employers to
form a cohesive link between the entities.
My amendment merely goes one step further and simplifies the process
by allowing grants to be used for the placement of high schools at
community colleges. The idea is not without precedence, in fact the
Middle College Consortium is a national network of twenty two high
schools located on college campuses.
Mr. President, I think the fundamental question becomes what is
education? I believe education is far more than books, classrooms, and
teachers, it is about learning and preparing for life. I want to
mention several points I have heard from students and employers that
reinforce my belief.
A high school student stated to me that often he and his classmates
are simply bored in class and that creative learning concepts must be
put forth. Amazingly, an employer stated that only one in forty
applicants were qualified for even an entry level position. All of us,
businesses and individuals are paying taxes and I think it is only fair
that we expect some kind of return in terms of our schools producing
qualified graduates.
Is there a one size fits all solution? Of course not, because not
everyone wants to pursue the same career path. However, my amendment
enables those desiring to pursue a vocationally based career yet
another option and tool to help ensure their success.
I am very pleased that an integral part of a Tech-Prep Program is a
focus on math, science, reading, writing, communications, economics,
and work-place skills. Also Tech-Prep Programs integrate the academic
and vocational instruction with work-based learning.
My amendment ensures this by requiring a consortium to contain a
business partner. Industry will have the opportunity to take an active
role in ensuring graduating students possess the tools and knowledge
that they will need to succeed in the local workforce. The business
partner will also act as a gateway for student and teacher internships
and also provide students a head start in obtaining a job.
Mr. President, there is one point I want to make absolutely clear:
student attendance at a high school at a Community College will be
voluntary. However, many high school students have already decided to
pursue a vocationally based career and are even now taking those kind
of classes. My amendment is aimed at those students in an effort to
ensure they will succeed.
Community Colleges often have more resources, like vocational
facilities and business partnerships, than a traditional high school.
Students choosing to participate will become acquainted with the
instructors, facilities, and application process for admission, and a
natural path to at least a two year degree will be created.
Mr. President, my amendment is about creating yet another option so
our children will be empowered with every available resource to
succeed.
Now I would like to make a few remarks about the Workforce Investment
Partnership Act of 1998. First, I would like to compliment Senators
Jeffords, DeWine, Kennedy, and Wellstone for all of their work on this
bill. Second, I am very pleased the Senate will shortly vote on this
very important piece of legislation to reform the Federal job training
and education related programs.
Like many Federal programs, current job training and education
related programs are a maze of overlapping and duplicative programs.
The bill incorporates close to 70 programs under three titles: Adult
Education, Vocational Education, and Job Training.
The streamlining of the current voc-ed programs into a manageable
system will allow for the delivery services in the most effective
manner possible. By delivering services in the most effective manner we
can accomplish two important things: a prepared workforce and a
business community that is confident in the workforce.
I believe one of the keys to the bill is the transfer of power from
Washington to the individual states. States will have the flexibility,
authority, and means to design a vocational educational system that
best meets the needs of the state because decisions will be made by
state officials and not Washington. By eliminating multiple Federal
requirements and mandatory set-asides, states obtain that flexibility.
States will also have the option to submit a unified plan or a single
State plan for all of the education and training programs incorporated
in the bill. Again, this is another example of providing states with
the ability to design programs that best meet their needs.
The Bill also greatly simplifies the process for individuals seeking
to obtain voc-ed services through a ``no wrong door'' approach. This
``one-stop customer service system'' will allow individuals to receive
comprehensive information about the availability, eligibility, and
quality of the programs at one location or via a computer network.
Mr. President, I also want to say how pleased I am that Senator
DeWine's amendment will reauthorize the Rehabilitation Act of 1973. As
my colleagues
[[Page S4263]]
are aware, the Rehabilitation Act is our country's primary Federally
funded job training program for disabled individuals. I believe the
reauthorization takes on even greater importance since the
authorization for the act expired in September of 1997.
Among other things the reauthorization will: link the Rehabilitation
Act and the Workforce Investment Partnership Act of 1998; streamline
current vocational rehabilitation systems to increase efficiency and
access; and improve the delivery of services to individuals with
disabilities by providing more choice and a greater number of quality
jobs.
Again Mr. President, the changes I have just mentioned create more
options and allow for the best possible delivery of services.
And that is exactly what my amendment and the overall bill are all
about: creating more options and providing for the best possible
delivery of services.
Mr. JEFFORDS. Mr. President, how much time do I have remaining?
The PRESIDING OFFICER. Two minutes 38 seconds.
Mr. JEFFORDS. I yield to the Senator from South Carolina 2 minutes.
Mr. KENNEDY. Mr. President, I would be glad to yield 3 minutes of our
time to the Senator.
Mr. THURMOND. I thank the Senator. I just need about 7 minutes.
Mr. President, I rise today to express my views on S. 1186, the
Workforce Investment Partnership Act of 1998. This bill will
consolidate vocational education, adult education and Federal
employment training programs. I generally support this effort. However,
I do have some concerns regarding the treatment of current veterans'
employment and training programs.
This Nation has a long history of providing assistance to our
veterans, dating from colonial days. Since World War I, several laws
have been enacted to address veterans' employment problems. Such
legislation has reaffirmed and strengthened the federal government's
role in promoting wider employment and training opportunities for
veterans. The Federal government has a legitimate role in veterans'
employment issues since it is the action of the Federal government that
gives an individual the status of ``veteran.''
Currently, the primary programs to assist veterans are those
administered by the Department of Labor, through the Veterans'
Employment and Training Service (VETS). These include the Disabled
Veterans' Outreach Program (DVOP) and the Local Veterans' Employment
Representative (LVER), which are grant programs to the States, and will
continue in their present form.
The current provisions of Title 38 of the United States Code were
designed to address services provided to veterans in a traditional Job
Service delivery system. However, this system is changing. We now see a
wide variance in delivery system design, configuration, and service
delivery providers. Some states are contracting with private business,
community agencies, or other units of government. Other states are
focusing on electronic services.
This changing environment makes it difficult to guarantee that
government is providing maximum employment and training opportunities,
with priority of service for veterans.
To maximize these opportunities and to protect that priority, the
Veterans Employment and Training Service is required by Federal law to
promote and monitor participation of veterans in federally funded
employment and training programs.
Because of the national interest in veterans' programs, I supported
language in this bill that (1) authorized a veteran representative to
the Statewide Partnership; (2) required the State plan to assure
coordination with veterans programs; (3) provided assurances in the
State plan that veterans will be afforded services under the employment
and training subtitle ``to the maximum extent practicable''; (4)
required performance reporting on workforce investment activities
provided for veterans; and (5) included dislocated Department of
Defense civilians, contractor personnel, and members of the Armed
Forces as eligible participants in National emergency grants.
While these provisions help provide visibility of veterans programs
at the national and state level, I am concerned that veterans
employment and training programs are not represented at the local
level. The bill does not provide for a veterans representative on the
local workforce investment partnership. This partnership has the
responsibility of setting policy for the local area and ensuring that
local performance measures are met, that needs of employers and job
seekers are met, and is responsible for continuous improvement of the
system. Furthermore, the local partnership develops and implements the
operating agreements for the one-stop customer service centers.
I can support this arrangement in principle, where local business,
labor and government leaders develop and oversee a plan to meet local
community needs. However, where veterans programs are included in the
one-stop center, veterans should have representation. This will ensure,
if it becomes apparent that veterans are being underserved in any given
local workforce investment area, that steps will be taken to address
and correct the disparity.
I encourage those Senators who are conferees to consider carefully
the commitment our veterans made to the Nation, and the commitment this
Nation has made to its veterans. I urge the conference to adopt
language that will (1) ensure that maximum employment and training
services are made available and provided to veterans; (2) require State
and local plans to include information to track services to veterans;
(3) include veteran representatives on local partnerships; and (4)
provide that nothing in this Act shall be construed to repeal or modify
any special rights or privileges for veterans including priority of
service.
Mr. President, I believe these modifications to the bill will
strengthen this measure and protect the interests of our veterans. I
look forward to working with the bill managers and with other
conferees.
Mr. JEFFORDS. Mr. President, I ask unanimous consent that a letter of
support from the Business Roundtable be printed in the Record.
There being no objection, the letter was ordered to be printed in the
Record, as follows:
The Business Roundtable,
Washington, DC, March 18, 1998.
Hon. James M. Jeffords,
Chairman, Labor & Human Resources Committee, U.S. Senate,
Washington, DC.
Dear Mr. Chairman: The Business Roundtable commends you and
Senators DeWine, Kennedy and Wellstone for your leadership in
developing S. 1186, the Workforce Investment Partnership Act.
We hope the Senate will act promptly to approve this
important bipartisan legislation to reform America's
workforce programs.
S. 1186 is, in most respects, in accord with the principles
for reform of job training programs we submitted to the Labor
and Human Resources Committee late last year. The bill
promises to transform the present fragmented approach into a
comprehensive workforce development system to meet the needs
of employers and job seekers.
Specifically, the bill would create a basis for program
consolidation through joint planning; establish business-led
partnerships at the state and local levels; and, most
importantly, strengthen accountability by using performance
standards to measure the effectiveness of programs in
achieving continuous improvement. It would commit states and
local areas to maximize the return on investment of federal
funds in workforce activities.
Employers have an important stake in the reengineering of
federal workforce programs. US competitiveness rests on the
skills of American workers. We look forward to working with
you and other members of the Committee to ensure that the
final compromise reached with the House of Representatives
continues to reflect business community principles for
reform.
Sincerely,
George M.C. Fisher,
Chairman & CEO, Eastman Kodak Co.; Chairman, Human
Resources Task Force, The Business Roundtable.
Lawrence Perlman,
Chairman & CEO, Ceridian Corp.; Chairman, The Working Group
on Workforce Development, The Business Roundtable.
Ms. SNOWE. Mr. President, as we approach a new century with a
globally competitive economy that increasingly puts pressure on many
domestic industries, I believe it is critical that Congress recognize
and address a serious
[[Page S4264]]
need in our nation's workforce: the need to provide increased access to
training for incumbent workers at small businesses.
As the distinguished Chairman and Ranking Member of the Senate
Committee on Labor and Human Resources are aware, many states have seen
workers displaced as long-standing local businesses have been downsized
or closed. In Maine, we have endured dramatic shifts in our labor force
as footwear manufacturers, textile manufacturers, and paper mills have
been closed, and workers have been forced out of long-standing jobs
that had been the cornerstone of their communities. This shift in long-
standing industries is occurring not only in Maine, but across the
nation as cities, towns, and communities attempt to stay one step ahead
of the changing demands of the global job market.
These displacements have demonstrated time and time again that the
only certainty in the workforce is uncertainty--and the most important
attribute that any worker can have when a job is in jeopardy is to have
a broad base of training and skills. For only with a wide array of
skills can any worker be truly confident that they have the knowledge
and abilities necessary to rapidly adapt to today's changing work
environment on-the-job--and the changing business environment that is
driven by global competition. Therefore, I believe it is critical that
we increase access to training for American workers and bring them some
peace of mind that they will be ready for the changing skills demand--
and the changing job market--that tomorrow will bring.
In light of this need for increased training and skill development, I
am particularly concerned about the plight of individuals who work at
small businesses because--among all workers--these individuals are the
least likely to receive training. I have had the opportunity to view
this problem firsthand, and discuss it with individuals who have
studied the problem extensively, as co-chair of the bipartisan Senate
Manufacturing Task Force and as a member of the Senate Small Business
Committee.
Over and over again I have heard of the inability of workers at small
businesses to have access to training--and the reason for this lack of
access is clear: many small businesses simply do not have the financial
resources necessary to provide training to their workers.
Therefore, in response to the gaping training needs of workers at
small businesses, I have offered legislation that is designed to
directly address the inability of small businesses to afford training.
Specifically, my legislation--S. 1170, the Working American Training
Voucher Act--would provide $1,000 training vouchers to one million
working men and women at small businesses across the United States.
The legislation was crafted from the premise that we should not wait
until a worker has been laid-off from their job, or a company shuts its
doors and shutters its windows, to take steps to help the American
worker receive adequate training. Rather, we should take steps to
ensure that our nation's workforce is confident of their future and
feels prepared to address the rapid changes that are occurring both in
the global economy and on-the-job--especially as new technologies are
introduced in the workplace that require an ever-expanding base of
skills.
Increasing access to training for incumbent workers at small business
will not only address this need, but I think we would all agree that
the best way to reduce the impact and cost of unemployment is to take
steps to keep those who are already employed on-the-job.
Mr. JEFFORDS. Mr. President, the Senator from Maine has properly
recognized a serious need in the American workforce, and one that I
hope will be strongly addressed by the Congress. Incumbent workers
nationwide--and particularly those at small businesses--must be
provided with increased access to training, and I commend her for
raising this issue at this time, and for offering legislation that is
intended to address this tangible need.
Mr. KENNEDY. Mr. President, I join my colleagues in recognizing the
need for increased access to training for incumbent workers, and
appreciate the efforts of my colleague, Senator Snowe, for heightening
awareness on this issue.
Ms. SNOWE. Thank you, Mr. Chairman and Ranking Member Kennedy. Mr.
President, while my legislation has not yet been acted on, I believe
the legislation now before the Senate--S. 1186, the Workforce
Investment Partnership Act (WIPA) provides us with an excellent
opportunity to address the training needs of incumbent workers at small
businesses.
Mr. President, as has been outlined on the floor of the Senate today,
the WIPA restructures and streamlines federal job training programs to
improve the delivery of these services to millions of Americans in
need, including disadvantaged adults and dislocated workers. For
crafting a bill that improves the delivery of job training services
nationwide, I would like to commend the authors of this legislation:
the Chairman of the Labor and Employment Subcommittee, Senator DeWine;
the distinguished Chairman of the Labor Committee, Senator Jeffords;
the Ranking Member of the Labor Committee, Senator Kennedy; and the
Ranking Member of the Employment and Training Subcommittee, Senator
Wellstone.
While I am very supportive of this legislation, I urge that
provisions be added and modifications made during the upcoming House-
Senate conference on the bill to improve access to training for
incumbent workers at small businesses. Specifically, I urge that the
Senate conferees look for opportunities to improve such access during
the consideration of the newly-created training vouchers in Section
315; the transfer authority of job training monies by local
partnerships in Section 306; the demonstration and pilot projects in
Section 367; and any other section in which increased flexibility of
job training monies would lead to improved access to training for
incumbent workers at small businesses.
Mr. JEFFORDS. Mr. President, because of my shared interest in
providing increased access to training for incumbent workers, I look
forward to working with my colleague, Senator Snowe, to address the
training needs of incumbent workers, particularly those in industries
that are vulnerable to the ups-and-downs of our economy.
Mr. KENNEDY. Mr. President, I strongly support efforts to improve
training opportunities for incumbent workers, but would emphasize that
it must not be done at the expense of individuals who have already been
displaced from their jobs. Therefore, I look forward to working with
the Senator from Maine on this issue.
Ms. SNOWE. Thank you, Mr. Chairman and Senator Kennedy, for your
interest in this important issue. I look forward to working with you as
S. 1186 moves through the legislative process, as well as on S. 1170,
the Working American Training Voucher Act.
Mr. KENNEDY. How much time do I have?
The PRESIDING OFFICER. The Senator has 12 minutes.
Mr. KENNEDY. I yield 3 minutes to the Senator from Hawaii.
The PRESIDING OFFICER. The Senator from Hawaii is recognized.
Mr. AKAKA. Mr. President, I rise in support of H.R. 1385, the
Workforce Investment Partnership Act. I really believe this bill would
provide the infrastructure necessary to reform our Federal job training
system. Currently, Federal job training programs are a hodgepodge of
rules, regulations and requirements, which reflect duplicative agency
responsibilities. This unfortunate situation deters employees with good
intentions from seeking assistance for those in need. For the past 8
months, my colleagues in the Senate Labor and Human Resources Committee
have been working diligently to reform this ineffective system.
H.R. 1385 is an ideal bill, a bipartisan bill that will consolidate
dozens of programs within the Federal system of vocational and adult
education, vocational rehabilitation, and job training programs.
It will give states and local governments the flexibility to design
training programs that best meet the needs of their communities. It
encourages ``One-Stop Customer Service'' centers where applicants and
employers may go to inquire about different training and employment
opportunities that are available.
In the State of Hawaii, efforts are already underway to streamline
various workforce-related organizations and
[[Page S4265]]
programs into a comprehensive system that encompasses economic
development, workforce, and education priorities. The Hawaii State
Legislature recently consolidated five Hawaii Department of Labor and
Industrial Relations advisory policy bodies into a single agency, the
Hawaii Workforce Development Council.
This council is similar to entities in 30 other states.
Many of our states have begun the process of consolidation, and it is
time that the Federal government provide them with the direction and
the resources necessary to complete this process.
I thank my colleagues, Senator DeWine, Jeffords, Kennedy, and
Wellstone for their efforts in bringing forward this bipartisan
compromise for Senate consideration. H.R. 1385 will target Federal
funds to those individuals who need it most and to those programs that
are proven to be effective. I believe this bill will provide the
infrastructure necessary to reform our Federal job training system.
The time is now to reform this system, and I am pleased to express my
support for this bill.
Mr. KENNEDY. Mr. President, I would be glad to yield 15 seconds to
the Senator from Minnesota.
Mr. WELLSTONE. Mr. President, I mentioned to staff and other Senators
but I didn't share the comments on the floor, and I didn't mention the
really fine work of Mark Powden and Dwayne Sattler. I appreciate their
work. I mentioned some people who I had a chance to work with. I forgot
to mention others. I was feeling guilty.
I thank the Senator for the 15 seconds.
Mr. KENNEDY. Mr. President, how much time do I have remaining?
The PRESIDING OFFICER. Eight minutes 30 seconds.
Mr. KENNEDY. Mr. President, I yield myself 7\1/2\ minutes.
Mr. President, as was stated by the Senators from Ohio, Vermont, and
Minnesota, in just a few moments we are going to vote on this
legislation, which will make such a very, very important difference for
millions of Americans.
I want to express my very deep sense of appreciation for the really
excellent work that has been done by the chairman of the subcommittee,
Senator DeWine, and our friend and colleague, Senator Wellstone, and
the chairman of the full committee, Senator Jeffords.
These are complex issues and involve a variety of different interests
and various constituency groups. But we all have a common purpose and a
common goal; that is, to try to make sure that America has the best
trained workforce we could possibly have as we move into the 21st
century.
The process has not been easy. It has been an issue which our
committee has over a very considerable period of time wrestled with. In
1970s, we attempted improving the CETA job training program. There were
many, many problems in that program. In the early 1980s, we moved in a
different direction. That direction was the Job Training Partnership
Act, which attempted to refashion and shape our job programs with
greater emphasis on private sector employment. It was the only domestic
program that passed between 1980 and 1984. In many respects, it has
worked well. But, the enormous technological changes we have seen in
the workplace require new training initiatives. Since the early 1990s,
we have been working to develop the most effective approach.
Now I am very, very hopeful that those hours and days of hearings,
and the very solid work that has been done by the Committee will result
in passage of this landmark legislation. I hope it will now not only
receive the overwhelming support of the Members of this body, but also
that we can move ahead into the conference and reach an agreement
worthy of all our support. 1998 should be the year that workforce
legislation is enacted into law. It would mean so much for millions of
Americans in need of educational and career training opportunities.
We have had a fairly contentious Congress so far. But this, I think,
has been an extraordinary example of the legislative process working. I
think it is a real tribute overall to our chairman, Senator Jeffords,
with his leadership.
We are designing legislation for a workforce that will have probably
seven or eight different jobs during their careers. Thirty years ago,
if a person worked in the Fall River Shipyard in Massachusetts, his
father worked there and his grandfather worked there before him, and he
spent his entire career there. But now we know that for new entries
into that workforce, they are going to have seven different jobs.
With the global economy, we are going to find there are going to be
new industries that are highly successful. There will be other
industries that will be facing consolidation. We will have downsizing.
We will have expansion. New skills that will be necessary. Individual
workers will need access to training to update their skills throughout
their working lives.
This legislation will provide the opportunity to get that training.
It is really a very, very important new concept and new idea, and one
that I think can really ensure that our workforce is going to be the
best in the world.
We are talking about included in this legislation programs for
individuals who are dislocated workers and others who are disadvantaged
adults and youth. We are talking about individuals with disabilities
who want to be able to work and pull their fair share. We are talking
about at-risk youth. We are also dealing with adult literacy, and
vocational education programs. Together, these programs will prepare
the workforce of tomorrow.
Mr. President, this is really, I think, a major achievement. I am
enormously grateful to my staff: to Jeffrey Teitz, who has done an
outstanding job on the workforce and education issues; and to Connie
Gardner, who has done an extraordinary job on vocational
rehabilitation. Jeffrey Teitz, along with Sherry Kaiman of Senator
Jeffords' staff, Dwayne Sattler of Senator DeWine's staff, and Brian
Ahlberg of Senator Wellstone's staff, worked for over a year to fashion
the consensus legislation which we are considering today. I am proud of
their work. I also want to recognize Patricia Morrissey of Senator
Jeffords' staff on vocational rehabilitation.
All of us who are in support of this legislation believe it will make
America have the best educated and the best trained workforce in the
world; and that those families who participate in these programs will
have the great opportunities open to them. It will enable them to
realize their own American dreams. I hope my colleagues will support it
overwhelmingly.
Mr. President, while employment training legislation has not received
the same level of public attention as some other issues on this year's
agenda, very few bills will have a greater impact on more Americans
than the Workforce Investment Partnership Act.
The importance of highly developed employment skills has never been
greater. The gap in earnings between skilled and unskilled workers is
steadily widening. For those who enter the workforce with good academic
training and well-developed career skills, this new economy offers
almost unlimited potential. However, for those who lack basic
proficiency in language, math and science and who have no career
skills, the new economy presents an increasingly hostile environment.
An educated workforce has become the most valuable resource in the
modern economy. Our nation's long term economic vitality depends on the
creation of an effective, accessible, and accountable system of job
training and career development which is open to all our citizens.
Schools must assume more responsibility for preparing their students to
meet the challenges of the 21st century workplace. Disadvantaged adults
and out of school youth need the opportunity to develop job skills
which will make them productive members of the community. Dislocated
workers who have been displaced by the rapid pace of technological
change deserve the chance to pursue new careers. Individuals with
disabilities need the opportunity to fully develop their career
potential. The way in which we respond to these challenges today will
determine how prosperous a nation we are in the next century.
The Workforce Investment Partnership Act, unanimously approved by the
Labor and Human Resources Committee will provide employment training
opportunities for millions of Americans. It responds to the challenge
of
[[Page S4266]]
the changing workplace by enabling men and women to acquire the skills
required to enter the workforce and to upgrade their skills throughout
their careers. It will provide them with access to the educational
tools that will enable them not only to keep up, but to get ahead.
The legislation is the product of a true bipartisan collaboration. I
want to publicly commend Senators Jeffords and DeWine for the genuine
spirit of bipartisanship which has made this effort possible. Senator
Wellstone and I appreciate it. The resulting legislation will, I
believe, truly expand career options, encourage greater program
innovation, and facilitate cooperative efforts amongst business, labor,
education and state and local government.
The Workforce Investment Partnership Act is designed to provide easy
access to state of the art employment training programs which are
geared to real job opportunities in the community through a single,
customer-friendly system of One Stop Career Centers. The cornerstones
of this new system are individual choice and quality labor market
information.
No training system can function effectively without accurate and
timely information. The frequent unavailability of quality labor market
information is one of the most serious flaws in the current system.
This legislation places a strong emphasis on providing accurate and
timely information about what area industries are growing, what skills
those jobs require, and what earning potential they have. Extensive
business community and organized labor participation are encouraged in
developing a regional plan based on this information. Once a career
choice is made, the individual must still select a training provider.
At present, many applicants make that choice with a little or no
reliable information. Under this bill, each training provider will have
to publicly report graduation rates, job placement and retention rates,
and average earnings of graduates.
Because of the extensive information which will be available to each
applicant, real consumer choice in the selection of a career and of a
training provider will be possible. The legislation establishes
individual training accounts for financially eligible participants,
which they can use to access career education and skill training
programs. Men and women seeking training assistance will no longer be
limited to a few predetermined options. As long as there are real job
opportunities in the field selected and the training provider meets
established performance standards, the individual will be free to
choose which option best suits his or her needs.
There is no challenge facing America today which is tougher or more
important than providing at-risk, often out-of-school, youth with
meaningful education and employment opportunities. Far too many of our
teenagers are being left behind without the skills needed to survive in
the 21st century economy. I am particularly pleased with the commitment
which the Workforce Investment Partnership Act makes to these young men
and women. This legislation authorizes a new initiative focused on
teenagers living in poverty in communities offering them few
constructive employment opportunities. Each year, the Secretary of
Labor will award grants from a $250 million fund to innovative programs
designed to provide opportunities to youth living in these areas. The
programs will emphasize mentoring, strong links between academic and
worksite learning, and job placement and retention. It will encourage
broad based community participation from local service agencies and
area employers. These model programs will, we believe, identify the
techniques which are most effective in reaching those youth at greatest
risk.
This legislation also provides for the continuation of JobCorps and
the Summer Jobs Program as essential elements of a comprehensive effort
to help disadvantaged youth gain valuable training and work experience.
The Workforce Investment Partnership Act includes titles
reauthorizing major vocational education and adult literacy programs.
Both programs will continue to be separately funded and independently
administered. We have incorporated them in the Workforce Act because
they must be integral components of any comprehensive strategy to
prepare people to meet the demands of the 21st century workplace.
Students who participate in vocational education must be provided
with both strong academic preparation and advanced employment skills
training. Recognizing this core principle, the legislation supports
broad-based career preparation education which meets both high academic
standards and teaches state-of-the-art technological skills.
Adult literacy programs are essential for the 27% of the adult
population who have not earned a high school diploma or its equivalent.
Learning to read and communicate effectively are the first steps to
career advancement. A leading authority on this issue, Professor
Richard Wade of the City University Graduate Center in New York, has
called adult literacy ``America's Silent Scandal'', and he's right.
This legislation will increase access to educational opportunities for
those people most in need of assistance and enhance the quality of
services provided.
The Workforce Investment Partnership Act will make it possible for
millions of Americans to gain the skills needed to compete in a global
economy. I urge all of my colleagues to support it.
I yield the remainder of the time.
I ask for the yeas and nays.
The PRESIDING OFFICER. Is there a sufficient second?
There is a sufficient second.
The yeas and nays were ordered.
Mr. JEFFORDS. Mr. President, I urge my colleagues to vote for this
bill. It is a tremendous step forward in helping this Nation meet
international competition. I praise the staff on both sides for making
it possible for us to come here in this great love fest that we have
had in the Chamber. Having voted it out of the committee unanimously, I
hope that this body would see fit to do the same.
I yield back the remainder of my time.
The PRESIDING OFFICER. The question is, Shall the bill pass? The yeas
and nays have been ordered. The clerk will call the roll.
The assistant legislative clerk called the roll.
Mr. NICKLES. I announce that the Senator from North Carolina (Mr.
Faircloth) and the Senator from North Carolina (Mr. Helms) are
necessarily absent.
The PRESIDING OFFICER. Are there any other Senators in the Chamber
who desire to vote?
The result was announced--yeas 91, nays 7, as follows:
[Rollcall Vote No. 119 Leg.]
YEAS--91
Abraham
Akaka
Baucus
Bennett
Biden
Bingaman
Boxer
Breaux
Bryan
Bumpers
Burns
Byrd
Campbell
Chafee
Cleland
Coats
Cochran
Collins
Conrad
Coverdell
Craig
D'Amato
Daschle
DeWine
Dodd
Domenici
Dorgan
Durbin
Enzi
Feingold
Feinstein
Ford
Frist
Glenn
Gorton
Graham
Gramm
Grams
Grassley
Gregg
Hagel
Harkin
Hatch
Hollings
Hutchinson
Hutchison
Inouye
Jeffords
Johnson
Kempthorne
Kennedy
Kerrey
Kerry
Kohl
Kyl
Landrieu
Lautenberg
Leahy
Levin
Lieberman
Lott
Lugar
Mack
McCain
McConnell
Mikulski
Moseley-Braun
Moynihan
Murkowski
Murray
Nickles
Reed
Reid
Robb
Roberts
Rockefeller
Roth
Santorum
Sarbanes
Sessions
Smith (OR)
Snowe
Specter
Stevens
Thomas
Thompson
Thurmond
Torricelli
Warner
Wellstone
Wyden
NAYS--7
Allard
Ashcroft
Bond
Brownback
Inhofe
Shelby
Smith (NH)
NOT VOTING--2
Faircloth
Helms
The bill (H.R. 1385), as amended, was passed, as follows:
Resolved, That the bill from the House of Representatives
(H.R. 1385) entitled ``An Act to consolidate, coordinate, and
improve employment, training, literacy, and vocational
rehabilitation programs in the United States, and for other
purposes.'', do pass with the following amendment:
Strike out all after the enacting clause and insert:
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:
[[Page S4267]]
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.
Sec. 158. Demonstration program.
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.
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. Limitation.
Sec. 506. Effective date.
TITLE VI--REHABILITATION ACT AMENDMENTS OF 1998
Sec. 601. Short title.
Sec. 602. Title.
Sec. 603. General provisions.
Sec. 604. Vocational rehabilitation services.
Sec. 605. Research and training.
Sec. 606. Professional development and special projects and
demonstrations.
Sec. 607. National Council on Disability.
Sec. 608. Rights and advocacy.
Sec. 609. Employment opportunities for individuals with disabilities.
Sec. 610. Independent living services and centers for independent
living.
Sec. 611. Helen Keller National Center Act.
Sec. 612. President's Committee on Employment of People With
Disabilities.
Sec. 613. Conforming amendments.
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.
[[Page S4268]]
(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 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.);
[[Page S4269]]
(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 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
[[Page S4270]]
(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--
(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
[[Page S4271]]
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).
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
[[Page S4272]]
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 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
[[Page S4273]]
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 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;
(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;
[[Page S4274]]
(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--
(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
[[Page S4275]]
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;
(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
[[Page S4276]]
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.
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 sequences 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.
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 preceding the fiscal year for
which the determination is made, equaled or exceeded such
effort or expenditures for vocational education for the
second fiscal
[[Page S4277]]
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 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
[[Page S4278]]
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 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
[[Page S4279]]
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 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);
[[Page S4280]]
(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 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.
[[Page S4281]]
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, 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.
[[Page S4282]]
(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 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--
[[Page S4283]]
(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 (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.
[[Page S4284]]
(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;
(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--
[[Page S4285]]
(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--
(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
[[Page S4286]]
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--
(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.--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).
(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.--
[[Page S4287]]
(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
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
[[Page S4288]]
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.
(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
[[Page S4289]]
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 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
[[Page S4290]]
(2) under section 306(a)(1)--
(A) shall be used to carry out the statewide workforce
investment activities described in subsection (b)(2); and
(B) may be used to carry out any of the statewide workforce
investment activities described in subsection (c),
regardless of whether the funds were allotted to the State
under paragraph (1), (2), or (3) of section 302(b).
(b) Required Statewide Workforce Investment Activities.--
(1) Statewide rapid response activities.--A State shall use
funds reserved under section 306(a)(2) to carry out statewide
rapid response activities, which shall include--
(A) provision of rapid response activities, carried out in
local areas by the State, working in conjunction with the
local partnership and the chief elected official in the local
area; and
(B) provision of additional assistance to local areas that
experience disasters, mass layoffs or plant closings, or
other events that precipitate substantial increases in the
number of unemployed individuals, carried out in the local
areas by the State, working in conjunction with the local
partnership and the chief elected official in the local
areas.
(2) Other required statewide workforce investment
activities.--A State shall use funds reserved under section
306(a)(1) to carry out other statewide workforce investment
activities, which shall include--
(A) disseminating the list of eligible providers of
training services, including eligible providers of
nontraditional training services, and the performance
information as described in subsections (b) and (c) of
section 312, and a list of eligible providers of youth
activities described in section 313;
(B) conducting evaluations, under section 321(e), of
activities authorized in this section, section 315, and
section 316, in coordination with the activities carried out
under section 368;
(C) providing incentive grants to local areas for regional
cooperation among local partnerships, for local coordination
and nonduplication 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;
[[Page S4291]]
(v) who select programs of training services that are
directly linked to the employment opportunities in the local
area involved or in another area in which the adults
receiving such services are willing to relocate;
(vi) who meet the requirements of subparagraph (B); and
(vii) who are determined to be eligible in accordance with
the priority system, if any, in effect under subparagraph
(D).
(B) Qualification.--
(i) Requirement.--Except as provided in clause (ii),
provision of such training services shall be limited to
individuals who--
(I) are unable to obtain other grant assistance for such
services, including Federal Pell Grants established under
title IV of the Higher Education Act of 1965 (20 U.S.C. 1070
et seq.); or
(II) require assistance beyond the assistance made
available under other grant assistance programs, including
Federal Pell Grants.
(ii) Reimbursements.--Training services may be provided
under this paragraph to an individual who otherwise meets the
requirements of this paragraph while an application for a
Federal Pell Grant is pending, except that if such individual
is subsequently awarded a Federal Pell Grant, appropriate
reimbursement shall be made to the local area from such
Federal Pell Grant.
(C) Training services.--Training services may include--
(i) employment skill training;
(ii) on-the-job training;
(iii) job readiness training; and
(iv) adult education services when provided in combination
with services described in clause (i), (ii), or (iii).
(D) Priority.--In the event that funds are limited within a
local area for adult employment and training activities,
priority shall be given to disadvantaged adults for receipt
of training services provided under this paragraph. The
appropriate local partnership and the Governor shall direct
the one-stop customer service center operator in the local
area with regard to making determinations related to such
priority.
(E) Delivery of services.--Training services provided under
this paragraph shall be provided--
(i) except as provided in section 312(e), through eligible
providers of such services identified in accordance with
section 312; and
(ii) in accordance with subparagraph (F).
(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).
[[Page S4292]]
(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;
(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).
(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.
[[Page S4293]]
(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 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.
[[Page S4294]]
(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 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
[[Page S4295]]
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.--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
[[Page S4296]]
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 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
[[Page S4297]]
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 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
[[Page S4298]]
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 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
[[Page S4299]]
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 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.
[[Page S4300]]
(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--
(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.
[[Page S4301]]
(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
(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.
(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
[[Page S4302]]
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 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).
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
[[Page S4303]]
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.
(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
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
[[Page S4304]]
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.
(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--
[[Page S4305]]
(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 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--
[[Page S4306]]
(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.
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;
[[Page S4307]]
(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 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.
[[Page S4308]]
``(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), 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.
[[Page S4309]]
(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 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.
[[Page S4310]]
(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. 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.
(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.
TITLE VI--REHABILITATION ACT AMENDMENTS OF 1998
SEC. 601. SHORT TITLE.
This title may be cited as the ``Rehabilitation Act
Amendments of 1998''.
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.
[[Page S4311]]
``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 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;
[[Page S4312]]
``(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, 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.--
[[Page S4313]]
``(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;
``(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;
[[Page S4314]]
``(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 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
[[Page S4315]]
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
``(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.
[[Page S4316]]
``(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 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--
[[Page S4317]]
``(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 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.
``(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
[[Page S4318]]
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.
``(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:
[[Page S4319]]
``(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 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,
[[Page S4320]]
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 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
[[Page S4321]]
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 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
[[Page S4322]]
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 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
[[Page S4323]]
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 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
[[Page S4324]]
(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 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
[[Page S4325]]
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;
``(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
[[Page S4326]]
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 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.
[[Page S4327]]
``(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 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.
[[Page S4328]]
``(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:
``(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
[[Page S4329]]
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 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
[[Page S4330]]
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
``(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
``(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
[[Page S4331]]
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.
``(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
[[Page S4332]]
``(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 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
[[Page S4333]]
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
programming.
``(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.
``(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.''.
[[Page S4334]]
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
``(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
[[Page S4335]]
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 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
[[Page S4336]]
(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 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
[[Page S4337]]
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 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
[[Page S4338]]
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:
``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
[[Page S4339]]
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.
``(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--
[[Page S4340]]
``(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
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
[[Page S4341]]
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.
``(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
[[Page S4342]]
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.
``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
[[Page S4343]]
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 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--
``(A) other representatives from centers for independent
living;
[[Page S4344]]
``(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 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
[[Page S4345]]
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 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.
[[Page S4346]]
``(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 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;
[[Page S4347]]
``(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.
``(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
[[Page S4348]]
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 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
[[Page S4349]]
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).
The PRESIDING OFFICER. Under the previous order, the Senate insists
on its amendment and requests a conference with the House, and the
Chair is authorized to appoint conferees on the part of the Senate.
The Presiding Officer (Mr. Brownback) appointed Mr. Jeffords, Mr.
Coats, Mr. Gregg, Mr. Frist, Mr. DeWine, Mr. Enzi, Mr. Hutchinson, Ms.
Collins, Mr. Warner, Mr. McConnell, Mr. Kennedy, Mr. Dodd, Mr. Harkin,
Ms. Mikulski, Mr. Bingaman, Mr. Wellstone, Mrs. Murray and Mr. Reed
conferees on the part of the Senate.
Mr. JEFFORDS. Mr. President, I want to thank all my colleagues for
their support on this bill. It is an excellent bill. I appreciate
Senators having the confidence in us. We hope to move expeditiously in
getting to conference.
I yield to Senator DeWine.
The PRESIDING OFFICER (Mr. Brownback). The Senator from Ohio.
Mr. DeWINE. I thank the Chair. Let me again thank the chairman of the
committee, Senator Jeffords, for the great work he has done on this
bill, as well as Senator Wellstone and Senator Kennedy.
I also thank the staff who worked on this bill. They spent a
tremendous amount of time. It was a great effort.
Mr. President, the Workforce Investment Partnership Act represents
our commitment to the American people to recreate.
Through State and especially local partnerships with business and
industry, the nation's job training system will be able to identify the
jobs that exist and the skills needed to fill them.
Through consolidation and reform we establish a truly comprehensive
workforce development system that brings together nearly 70 categorical
programs and redefines the federal Job Corps program.
By adding The Rehabilitation Act Amendments of 1998, we reauthorize
the Rehabilitation Act, link the vocational rehabilitation system to
States' workforce development systems and increase and simplify access
for individuals with disabilities to job training services.
Mr. President, this legislation is a milestone, and will no doubt
prove to be one of our country's economy's greatest assets.
In closing, Mr. President, I would particularly like to thank my
colleagues Senators Jeffords, Kennedy, Wellstone, Frist, Collins,
Harkin, and Dodd as well as the individual members of their staffs who
have worked many long hours to make this bill possible: Patricia
Morrissey, Sherry Kaiman, Jeff Teitz, Connie Garner, Brian Alhberg,
Dave Larsen, Katie Braden, Julian Haynes, Sharon Masling, Jim Fenton,
Jenny Saunders, Chas Phillips, Rick Murphy, Robin Bowen, Chad Calvert,
Angie Stewart, a special thanks to Ann Lordeman and Rick Apling, from
the Congressional Research Service and Liz Aldrige and Mark Sigurski,
and finally my own staff--Dwayne Sattler, Aaron Grau, and Yolanda
Rogers for their tireless efforts.
I am confident that this bill will provide needed change and
opportunities for the millions of Americans, both employers and job
seekers, who need this improved job training system to help make our
country more prosperous and more prepared for the next century. And I
look forward to working with my friends in the House of Representatives
in conference.
____________________