[Congressional Record (Bound Edition), Volume 149 (2003), Part 8]
[House]
[Pages 10899-10944]
[From the U.S. Government Publishing Office, www.gpo.gov]




         WORKFORCE REINVESTMENT AND ADULT EDUCATION ACT OF 2003

  The SPEAKER pro tempore. Pursuant to House Resolution 221 and rule 
XVIII, the Chair declares the House in the Committee of the Whole House 
on the State of the Union for the consideration of the bill, H.R. 1261.

                              {time}  1208


                     In the Committee of the Whole

  Accordingly, the House resolved itself into the Committee of the 
Whole House on the State of the Union for the consideration of the bill 
(H.R. 1261) to enhance the workforce investment system of the Nation by 
strengthening one-stop career centers, providing for more effective 
governance arrangements, promoting access to a more comprehensive array 
of employment, training, and related services, establishing a targeted 
approach to serving youth, and improving performance accountability, 
and for other purposes, with Mr. LaHood in the chair.
  The Clerk read the title of the bill.
  The CHAIRMAN. Pursuant to the rule, the bill is considered as having 
been read the first time.
  Under the rule, the gentleman from Ohio (Mr. Boehner) and the 
gentleman from California (Mr. George Miller) each will control 30 
minutes.
  The Chair recognizes the gentleman from Ohio (Mr. Boehner).
  Mr. BOEHNER. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, as we stand here today, hundreds of thousands of 
Americans are searching for good, stable new jobs. The unemployment 
rate in April rose to 6 percent. As the economy works toward recovery, 
hundreds of thousands of Americans are searching for jobs and careers 
that can help them ensure security and safety for their families. The 
President has made it clear that we need more jobs and we need a 
stronger economy. The backbone of economic growth is a strong 
workforce. As we move towards enacting the President's jobs and growth 
initiative this week, we also have a

[[Page 10900]]

chance to strengthen job training opportunities for American workers.
  The legislation before us is H.R. 1261, the Workforce Reinvestment 
and Adult Education Act. I want to commend the gentleman from 
California (Mr. McKeon), the subcommittee chairman, for his leadership 
in bringing this bill to the floor. The bill would reauthorize and 
strengthen the Workforce Investment Act, or WIA, major legislation 
passed 5 years ago that provided important reforms to Federal job 
training programs. Prior to 1998, the Nation's job training system was 
a mess. It was fragmented, contained overlapping programs, and did not 
serve anyone very well, job seekers or employers. WIA consolidated 
employment and training services at the local level and produced a more 
unified workforce development system.
  WIA provides funding for States and local communities to establish 
one-stop shops for workers seeking new jobs and new careers. Through 
the WIA system, job seekers now have access to labor market 
information, job counseling and job training to help them get back on 
their feet. WIA has generally worked well, but it could work even 
better. Duplication and confusion are keeping the WIA system from 
reaching its true potential for American workers. Duplication of 
services under the current law results in significant resources being 
squandered, resources that could be used to help those in need at a 
time when they need the help most. Overlap in training programs under 
the current WIA law has contributed to the growth of a confusing 
patchwork at the State and local level. Governors and State and local 
officials need the flexibility to target these resources toward the 
unique needs of the men and women in their communities.
  The legislation before us would give our Nation's Governors and 
communities new tools to meet the unique needs of these people that 
they serve. It would streamline the bureaucracy to give workers better 
access to WIA benefits. Congress has an obligation this year to improve 
worker access to these WIA benefits and provide Americans with an even 
stronger job training system at a time when it is needed most.
  State and local communities should be given greater flexibility to 
tailor their WIA systems to their own unique needs. Currently, the WIA 
adult, WIA dislocated worker, and Wagner-Peyser funding streams serve 
very similar populations. Combining these funding streams into a single 
grant, as proposed in this bill, would result in more effectiveness at 
the State and local level and significantly greater efficiency for 
workers searching for new jobs and new careers. It would also give 
States and local authorities greater flexibility to integrate WIA with 
their welfare-to-work programs. The bill also strengthens adult 
education by focusing on core skills such as reading and math. Workers 
need these building blocks to thrive in a knowledge-driven economy.
  Lastly, I would note that the bill allows faith-based institutions to 
be included in the Federal worker relief system.

                              {time}  1215

  Faith-based institutions have a proven track record of helping people 
find jobs, but they are essentially barred from the current WIA system 
simply because they have religious identities, and this is unfortunate 
and unnecessary because under the Civil Rights Act of 1964 and as 
amended in 1972, faith-based organizations are already explicitly 
allowed to hire on a religious basis. These outdated barriers should be 
removed to ensure that every available resource is being committed in 
the effort to help Americans find jobs.
  The bill before us simply reiterates the existing exemption that 
religious organizations have had for more than three decades under the 
civil rights laws. Title VII of the Civil Rights Act of 1964 and as 
amended in 1972 reads as follows: ``(These requirements) shall not 
apply . . . to a religious corporation, association, educational 
institution, or society with respect to the employment of individuals 
of a particular religion to perform work connected with the carrying on 
by such corporation, association, educational institution, or society 
of its activities.''
  This portion of the Civil Rights Act, which has been upheld by the 
U.S. Supreme Court, explicitly allows faith-based organizations to hire 
on a religious basis and any Federal legislation governing Federal 
social service funds should continue to protect the rights of religious 
organizations to do so. The measure before us simply applies the same 
standard to the Workforce Investment Act so that every available 
resource is being tapped to help Americans find jobs. If we do not make 
this change, we are essentially telling out-of-work Americans that they 
deserve something less than 100 percent of our support.
  I think that would be a horrible message to send. Workers and 
families are the backbone of our economy. The backbone of economic 
growth is a strong workforce. Congress has an obligation to improve 
worker access to the benefits that the Workforce Investment Act offers 
and to provide Americans with an even stronger job-training system 
again when it is needed most.
  Passing this bill will send another clear message to the American 
people that we are taking action on jobs and the economy. And again I 
want to commend the gentleman from California (Mr. McKeon) for his 
excellent work in bringing this bill to the floor.
  Mr. Chairman, I reserve the balance of my time.
  Mr. GEORGE MILLER of California. Mr. Chairman, I yield such time as 
she may consume to the gentlewoman from California (Ms. Watson).
  Ms. WATSON. Mr. Chairman, I rise in strong opposition to H.R. 1261.
  I rise in strong opposition to H.R. 1261. Mr. Chairman, similar to 
the IDEA Reauthorization last week, we are again presented with a 
subpar rule and a subpar bill. The Committee did not allow us to vote 
on and discuss key amendments which would have greatly improved this 
measure.
  I offered an amendment that was rejected by the Rules Committee 
yesterday that would have specified that local WIA boards may use funds 
to carry out training programs for displaced homemakers and 
nontraditional training for women. These are two existing programs that 
have been crucial to low-income women's economic independence and self-
sufficiency. Since more than 60 percent of WIA recipients are women, 
the use of WIA funds for these programs would have provided necessary 
training opportunities, counseling, and services for WIA recipients to 
learn the necessary skills in obtaining and keeping jobs.
  Mr. Chairman, this bill fails workers, attacks our Veterans and 
erodes our civil rights laws. An amendment offered to extend Federal 
unemployment benefits for newly unemployed workers and for those 
workers who have previously exhausted their unemployment benefits was 
not allowed. Also defeated was an amendment which would have restored 
current law prohibiting the use of Federal funds to discriminate in 
hiring based on religion, as well as an amendment to strike the 
language in the bill that allows governors to take money from Veterans 
and dislocated worker programs to pay for infrastructure costs for one-
stop centers.
  The Workforce Reinvestment and Adult Education Act is supposed to 
provide job opportunities for our nation's youth and extend educational 
opportunities for adults. The bill we have before us does not uphold 
this commitment. H.R. 1261 cuts job opportunities for youth, shifts 
critical resources away from career preparation and summer jobs, 
eliminates the successful Youth Opportunity Grants and reduces 
targeting of resources to poor communities.
  In a time of economic downturn and a rising unemployment rate, it is 
our duty to provide the necessary funds to boost our economy and 
safeguard our future. We can increase the effectiveness and outreach of 
boards by increasing funding to local boards. We must give local 
leaders the opportunity to shape best use of resources to their 
communities.
  Mr. Chairman, H.R. 1261 does not cut it. I urge my fellow colleagues 
to vote no on this bill.
  Mr. GEORGE MILLER of California. Mr. Chairman, I yield myself 4 
minutes.
  I rise in opposition to H.R. 1261. This is the wrong bill being 
considered at the wrong time for the wrong reasons. This bill fails to 
extend unemployment benefits, it fails to create jobs, and it fails to 
stimulate the economy.
  This economy is in the grips of a devastating economic stagnation, 
and it is

[[Page 10901]]

now clear to everyone that the President's economic policies have 
utterly failed to date to create new jobs, they fail to stimulate new 
business growth, and they have richly succeeded in turning historic 
Federal surpluses into staggering deficits.
  Unemployment is at 6 percent. That means that almost 9 million 
Americans are officially unemployed and another 9 million are either 
working part time because they cannot find full-time work or they are 
so completely discouraged that they have stopped looking for work. The 
Department of Labor's own data shows that there are three job seekers 
for every job available today. And yet this legislation comes forth and 
begins to unravel what has been a carefully constructed job-training 
program over the last 20 years on a bipartisan basis. It does so by 
undermining the ability of workers who are dislocated and others to get 
the services that they need to go back into the job market. But it also 
does it because of the insensitivity of this administration, because in 
this year, in this last year, as hundreds and hundreds of thousands of 
Americans join the ranks of the unemployed, this administration and 
this Congress cut $650 million of the programs under WIA. The 
President's budget this year suggests another $200 million in cuts.
  So while they talk about the block grant and they talk about 
efficiencies, let us understand what they are doing. As the ranks of 
the unemployed grow in staggering numbers, there will be fewer 
resources available to help those individuals get back into the job 
market. There will be fewer resources available to help the 6 percent 
of Americans who are unemployed, to the 4 million Americans who are 
underemployed and are looking for longer hours.
  Payroll employment has not been this depressed since the Great 
Depression of the 1930s, and why is that? Because there is not enough 
demand in the economy. But unfortunately tomorrow the Republicans will 
give us an economic program based upon tax cuts for the wealthy that 
most economists in the country have already said while they may agree 
with the tax cuts, it will not stimulate the economy. It is still 
questionable whether or not the Democrats will be able to put forth 
their program which economists tell us will create 1 million new jobs 
this year.
  This legislation, because it is within the jurisdiction of the 
committee and our ability, could have also extended unemployment 
benefits for those who are about to run out on May 31. But 
unfortunately the Republican leadership of the committee would not 
support that amendment and the Republican Committee on Rules would not 
make it in order.
  So as we stand here in these dark times for unemployed American 
families who do not know yet whether or not unemployment benefits are 
going to be extended at the end of this month, where they will be 
playing with whether or not we will extend them, we know that within 
the Republican part the last time there was a huge amount of opposition 
to the extension of the unemployed benefits, that many people were lost 
because of the gap in that coverage. But this legislation is silent on 
that issue.
  This legislation is like a narcotic. It wants to say we are moving 
around the structure of WIA, we are cutting the funding of WIA, but 
things are going to get better for the unemployed in this country. It 
is just simply not so because the Bush economy has been so terribly 
devastating to so many segments of the economy, whether it is in 
manufacturing, whether it is in high tech, whether it is in services, 
whether it is in transportation, whether it is in accommodations, and 
this President has yet to take a single step. Yes, he got his tax cut 
his first months in office. He has lost 2.5 million jobs since then, 
since then. That did not work. What he is suggesting is that we do more 
of the same. That is not an answer for these desperate families who are 
trying to hold themselves together through these dark economic times.
  Mr. BOEHNER. Mr. Chairman, I yield 2 minutes to the gentlewoman from 
Tennessee (Mrs. Blackburn), a member of the committee.
  Mrs. BLACKBURN. Mr. Chairman, I rise today to express my support for 
H.R. 1261, the Workforce Reinvestment and Adult Education Act of 2003. 
This bill has a directed focus: Strengthening local participation and 
streamlining the current WIA funding process. The primary purpose is to 
achieve more efficient and results-oriented services for the program's 
participants. This is important because in the past the WIA system has 
been hampered by duplicative and redundant bureaucracy, preventing it 
from being as effective as it should be for retraining workers.
  WIA provides workforce services in programs through One-Stop Career 
centers. These centers have several important goals. They offer 
information on jobs, provide education and training resources, and aid 
employee retention. Further, they train workers in occupational skills 
needed to get a job, or for those already employed the centers help 
workers acquire the skills necessary to move upward and on to higher 
paying jobs.
  Last year alone over 30,000 Tennesseans enrolled for workforce 
investment services through 14 One-Stop Career Centers and the 55 
affiliate sites located throughout the State. This bill strengthens the 
mission of these centers by playing a critical role in helping people 
who seek to improve their skills, their jobs, their careers and their 
incomes. It provides them with the tools and training necessary to be 
competitive in the 21st century workforce.
  Further, it strengthens education programs by providing a way to 
enhance and refresh competency skills. It is my firm belief that with 
the employment services the centers provide, Tennessee workers will 
have access to the training needed to thrive in an ever-increasing 
technology-driven economy.
  Mr. GEORGE MILLER of California. Mr. Chairman, I yield 3 minutes to 
the gentleman from Michigan (Mr. Kildee), a member of the Committee on 
Education and the Workforce.
  Mr. KILDEE. Mr. Chairman, I thank the gentleman for yielding me this 
time.
  I rise in strong opposition to this bill. In 1998 the gentleman from 
California (Mr. McKeon) and I brought a bipartisan WIA bill to this 
House. Unfortunately, this is not the case today. The key failure of 
this legislation is that it does not respond to the economic realities 
that American families are facing today. We have 8.8 million 
individuals who are out of work. These are real people with names. We 
have growing budget deficits projected to top a half trillion dollars 
this fiscal year. Most alarming is the fact that three unemployed 
individuals are competing for every job.
  In light of these dire economic conditions, I have grave concerns 
about the bill before us today. This bill unravels the very fabric of 
our Federal job training system. First, the proposal would eliminate 
the employment service, the program which matches those looking for 
work with jobs. The bill also block grants our job training programs. 
As our economy continues its downturn, it is extremely shortsighted to 
eliminate the function that matches jobs and individuals looking for 
work.
  I must stress how disappointed I am that the Committee on Rules did 
not make either of my amendments in order to extend unemployment 
benefits. The House is not responding to the needs of the American 
workers by denying the debate on these amendments. The families of 
unemployed workers are struggling to ensure that they can afford their 
rent and put food on the table. We should not ignore the needs of these 
families. Where is the compassion of this Congress? I certainly can see 
the conservatism, but I do not see the compassion.
  This bill also allows governors to take funding from veterans 
programs, programs serving individuals with disabilities, and other 
partner programs to fund one-stop infrastructure costs by also 
eliminating their seat on local workforce boards.
  I am aware that an amendment may be offered today to cap the amount 
of funds that can be taken, but this amendment is deficient. This 
amendment is inadequate and will still place

[[Page 10902]]

these programs and the services they provide at risk.
  Lastly, Mr. Chairman, this legislation repeals existing civil rights 
protections. Under current law faith-based organizations do receive 
Federal funds and do an admirable job providing job training services. 
Unfortunately, the Republican bill would allow for these organizations 
to refuse to hire individuals due to their faith for positions paid for 
with Federal dollars.
  Mr. Chairman, this bill does not respond to the needs of unemployed 
individuals and individuals with disabilities seeking to return to the 
workplace. In fact, it undermines the progress we have made under WIA 
thus far. I regret that the Committee on Rules has prevented us from 
responding to the real needs of American workers.
  I urge opposition to final passage of this legislation.
  Mr. BOEHNER. Mr. Chairman, I yield 6 minutes to the gentleman from 
California (Mr. McKeon), the father of the Workforce Investment Act of 
1998.
  Mr. McKEON. Mr. Chairman, I rise in strong support of H.R. 1261, and 
I want to thank the gentleman from Ohio (Mr. Boehner), chairman, for 
his support and his leadership on this bill, and the committee in 
general.
  Simply put, H.R. 1261 will help strengthen America's economy. For 
example, this important bill includes amendments to Title I of the 
Workforce Investment Act of 1998, which provides for the Nation's one-
stop workforce development system. The bill also contains the Adult 
Basic Education Skills Act, which reauthorizes State programs for adult 
education. It also would reauthorize the Rehabilitation Act of 1973, 
which provides services to help individuals with disabilities become 
employable and achieve full integration into society.
  Last week the Department of Labor released updated economic figures 
showing that the Nation's unemployment rate for April rose to 6 
percent, its highest level since the 2001 recession, matching the rate 
that occurred this past December. With the April decline of 48,000 
jobs, the fall in payroll employment over the past 3 months reached 
525,000 jobs. Payroll employment has declined by 2.1 million jobs since 
the beginning of the recession.

                              {time}  1230

  With hundreds of thousands of Americans searching for new jobs, we 
must take action to strengthen the job training opportunities for 
American workers.
  The Workforce Reinvestment and Adult Education Act of 2003 builds 
upon and improves systems created in the Workforce Investment Act of 
1998, which consolidated and integrated employment and training 
services at the local level in a more unified workforce development 
system. One of the hallmarks of the new system is that, in order to 
encourage the development of comprehensive systems that improve 
services to both employers and job seekers, local services are provided 
through a one-stop delivery system. At the one-stop centers, assistance 
ranges from core services, such as job search and placement assistance, 
access to job listings, and an initial assessment of skills and needs, 
intensive services such as comprehensive assessments and case 
management, and, if needed, occupational skills training.
  Even though States and local areas have created comprehensive 
services and effected one-stop delivery systems, there have been 
challenges with the system. H.R. 1261, the Workforce Reinvestment and 
Adult Education Act of 2003, goes even further and addresses some of 
the challenges of the current system. For example, the bill streamlines 
unnecessary bureaucracy, increases effective cooperation among 
workforce development partners and places an increased emphasis on 
basic skills and adult education programs.
  This bill aims to streamline current WIA funding in order to provide 
more efficient and results-oriented services and programs by combining 
the adult, dislocated and employment service funding streams into one 
funding stream. This will eliminate administrative duplication that 
remains in the system, improving services for individuals.
  There is a need to increase the financial contribution of the 
mandatory partners in the one-stop career centers while at the same 
time increasing the service integration among the partner programs. 
This includes serving special populations, like individuals with 
disabilities who have unique needs, through the one-stop system.
  There is also a need to simplify the local and State governance 
processes and to strengthen the private sector's role by ensuring 
greater responsiveness to local area needs. We accomplish this by 
removing the requirement that one-stop partner programs have a seat on 
the local boards. This will provide for greater representation and 
influence by local business representatives who currently are 
frequently frustrated that they are not able to connect with, or 
access, resources from the local boards.
  We are also strengthening the membership requirements and role of the 
State board to increase support for partner usage in an effort to 
create a more coordinated approach to addressing the workforce needs of 
each community.
  Additionally, we need to increase training opportunities by providing 
for greater flexibility in the delivery of core, intensive, and 
training service. Individuals will have the opportunity to receive the 
services that are most appropriate for their needs.
  In short, this bill aims to empower individuals in improving their 
careers by strengthening the infrastructure of the one-stop delivery 
system, improving accountability, enhancing the role of employers, and 
increasing State and local flexibility.
  The bill also includes the Adult Basic Skills Act to reauthorize 
State programs for adult education. This bill places more of a focus on 
the delivery of the basic skills of reading, writing, speaking, and 
math. Additionally, we have sought to ensure that instructional 
practices are based on scientific research. Provisions have been 
included to increase accountability for States and local providers to 
have measurable improvement in basic skills and GED graduates and those 
entering higher education.
  The bill also makes improvements to the Rehabilitation Act of 1973, 
which provides services to help persons with disabilities become 
employable and achieve full integration into society. The Vocational 
Rehabilitation title of this bill enhances and improves transition 
services, which promote the movement of a student served under the 
Individuals With Disabilities Education Act from school to post-school 
activities, which we passed last week.
  H.R. 1261 will strengthen our workforce development system to aid 
those Americans most in need of help getting back to work.
  I am pleased to support this legislation and urge my colleagues to do 
the same.
  Mr. GEORGE MILLER of California. Mr. Chairman, I yield 2 minutes to 
the gentleman from New York (Mr. Owens), a member of the committee.
  Mr. OWENS. Mr. Chairman, our Nation is faced with a few simple facts 
that are awesome indeed. Unemployment has risen to a high of 6 percent 
nationally. In New York it is 9 percent. States throughout the Nation 
are faced with large deficits. States and cities are being forced to 
lay off government workers. Since the year 2000, more than 600,000 
youths have lost their jobs. The economic downturn appears unlikely to 
end any time in the near future, according to the majority of the 
expert economists.
  Added to this is the fact that 90 percent of the troops on the 
frontline in Iraq and Afghanistan are members of working families. They 
come from working families. They are out there on the front lines. But 
nevertheless, here in America the Republican majority wages a 
relentless war against working families.
  I call on the Republican majority to call a truce. Stop your war 
against working families. You started this administration with a repeal 
of the ergonomics laws. That was a slap in the face of all working 
people. You have continued by ignoring the question of raising the 
minimum wage. You

[[Page 10903]]

have launched a new assault on cash payments for overtime. You have 
launched a new assault against OSHA.
  Please, call a truce. These are working families who are as important 
in America as anybody, probably more important. Those are the people 
who supply the troops out there on the front lines.
  We are totally insensitive to the fact that the Nation is diminished 
by the way the workers are treated. We have very serious problems that 
are not being addressed by the Workforce Investment Act. More money 
should be invested in training the workforce needed to make homeland 
security more than a joke. There are lots and lots of types of 
expertise needed that we do not have that we ought to be training for.
  Let us, please, call a truce. Stop the war, stop the hostilities, 
against working families in America.
  The CHAIRMAN. Without objection, the gentleman from California (Mr. 
McKeon) will control the time of the gentleman from Ohio (Mr. Boehner).
  There was no objection.
  Mr. McKEON. Mr. Chairman, I yield 2\1/2\ minutes to the gentlewoman 
from Colorado (Mrs. Musgrave), one of our outstanding new freshmen.
  Mrs. MUSGRAVE. Mr. Chairman, I would like to address my comments 
specifically to those who would prevent religious organizations, faith-
based organizations, from receiving Federal funds to help unemployed 
Americans.
  Religious organizations have often been denied Federal funding simply 
because they have a religious name or an identity or they hire on a 
religious basis. Our President has called on his administration and 
Congress to remove these barriers, and I wholeheartedly support that.
  I would remind my colleagues that during the 1990s President Clinton 
supported four laws that allowed religious organizations to retain 
their right to hire on a religious basis while they were receiving 
Federal funds, just as Republicans are doing today, to ensure that 
faith-based organizations can be part of the Federal job training and 
worker relief system under the Workforce Investment Act. The four laws 
that were passed during the Clinton administration were the Substance 
Abuse and Mental Health Services Act, the Community Services Block 
Grant of 1998, welfare reform of 1996, and the Community Renewal Tax 
Relief Act of 2000.
  Faith-based organizations cannot be expected to sustain their 
religious mission without the ability to employ individuals who share 
in their tenets and practices. It is that very faith that motivates 
these people to help Americans that are in trouble.
  Members of faith-based organizations should enjoy the same right to 
associate with those that share their unique vision, just as other 
known-religious groups do. For example, Planned Parenthood may refuse 
to hire those who do not share its views about abortion. Planned 
Parenthood Federation of America received over $100 million in Federal 
funds to support the things that they offer in fiscal years 1997, 1998, 
and 1999. Equal treatment requires that religious organizations, faith-
based organizations, have the same right to hire on idealogical 
grounds.
  Let us allow faith-based organizations to retain their unique 
character and help and assist Americans who need a job.
  Mr. GEORGE MILLER of California. Mr. Chairman, I yield 2 minutes to 
the gentleman from Illinois (Mr. Davis), a Member of the committee.
  Mr. DAVIS of Illinois. Mr. Chairman, I rise in strong opposition to 
H.R. 1261. However, I want to first thank the gentleman from Ohio 
(Chairman Boehner) and the ranking member, the gentleman from 
California (Mr. George Miller), for accepting one of my amendments in 
committee that would include ex-offenders as part of the hard-to-serve 
population who are seeking employment.
  However, I am disappointed that the amendment that my colleague, the 
gentleman from Louisiana (Mr. Baker), and I submitted to the Committee 
on Rules was not accepted. This amendment would strike sections 402 and 
403, which would change the current status of the Commissioner of 
Rehabilitation Services Administration. Currently the commissioner is 
appointed by the President with the advice and consent of the Senate. 
This bill would change the current structure of the position from a 
Presidential appointee to a director appointed by the Secretary of 
Education. The disability community is opposed to this change because 
it puts additional distance between the President and the commissioner.
  We are still talking about cuts; and we all know that when there are 
cuts, there are serious social consequences that occur when young 
people are not in school and not employed. We will see crime rates 
increase, arrests increase, drug abuse increase and gang activity 
increase. Young people, if they are not employed, will find something 
to do with their time; and I am afraid that it is not going to be 
productive, and, perhaps in some instances, even illegal.
  One of the shocking provisions, though, of this resolution is that 
H.R. 1261 allows employers to discriminate based on religion when 
hiring for government-funded positions in job training. Our country 
cannot go backwards. Children learn in school about NINA laws, that is 
``No Irish Need Apply,'' and now we are going back to another period. 
Perhaps soon we will see ``No Jews Need Apply,'' ``No Christians Need 
Apply,'' ``No Blacks Need Apply.'' Well, I think that that is shameful. 
And, yes, faith-based organizations should be allowed to do their work, 
but they should not be promoted to discriminate at the same time.
  Mr. McKEON. Mr. Chairman, I reserve the balance of my time.
  Mr. GEORGE MILLER of California. Mr. Chairman, I yield 3\1/2\ minutes 
to the gentleman from Massachusetts (Mr. Tierney).
  Mr. TIERNEY. I thank the gentleman for yielding me time.
  Mr. Chairman, I am disappointed in the legislation that we are 
debating today, because this could have been much better. We are only 
days after depressing job reports, the most depressing reports in 
decades, released by the Department of Labor showing we lost half a 
million jobs in the last 3 months. Instead, what the majority brings to 
this floor is an eviscerated, underfunded job training and workforce 
development bill.
  Tomorrow, the majority will bring to the floor a bloated tax bill, 
overwhelmingly weighted to the wealthiest Americans; and combined, this 
is what you are going to call a jobs program.
  Since January 2001, when the current President took office, this 
economy has lost 2.7 million jobs that are private sector jobs. It is a 
net loss of more than 74,000 jobs a month. The President is on track to 
have the worst job creation record for any President since World War 
II. Workers desperately need relief, the economy desperately needs a 
boost, and this bill does not provide it.
  The House majority missed a tremendous opportunity to continue the 
30-year record that we have had of bipartisan cooperation on the 
workforce investment program. But even before the House began to 
authorize this process, the administration and this Congress had a 
terrible record on job training.
  Despite the rising unemployment numbers under this administration, 
the programs under the Workforce Investment Act have been dramatically 
underfunded. In fiscal year 2002, the Republican majority adopted a 
$300 million rescission of WIA funds; in fiscal year 2003, they cut WIA 
by $440 million; and they project 2004 to cut it by $265 million. This 
warrants concern that the rhetoric of support for these programs is not 
matched by the conduct.

                              {time}  1245

  This legislation does nothing to restore those cuts in critically 
needed training dollars, and it does nothing to restore working 
families as a priority.
  There are at least 5 problems with this bill as it is reauthorized. 
Instead of restoring needed funding, it actually block grants the 
money, including the adult dislocated worker and employment services 
programs. Make no mistake, block granting these programs is nothing 
more than a precursor to further reducing funding for job training

[[Page 10904]]

in the future. Combined with the history of the cuts that I just 
discussed, the history of block grant programs tried elsewhere that 
result in cuts and the history of the administration putting no money 
in for extension of unemployment benefits, we start to see the attitude 
of the majority and of this administration towards unemployed Americans 
and people that need to get back to work.
  The block grants ignore important differences between the various 
types of jobs and job seekers that are currently served by the WIA 
programs, and they pit one group of underemployed against the 
unemployed trying to receive assistance.
  Second, the bill will also largely replace the unemployment service 
program whose central mission is to facilitate the match between job 
seekers and employers and the Federal-State partnership that consists 
of more than 1,800 local offices. This approach will undermine the 
principle of an unbiased, nonpartisan agency to administer job 
referrals and assist in the payment of unemployment insurance benefits.
  Thirdly, the bill denies services to in-school youth under the Youth 
programs title of WIA. The bill has been changed to allow 30 percent of 
local funding for in-school youth. I strongly support the concept that 
young people who leave school before finishing should be given a second 
chance, but I also believe it makes sense to catch as many as we can 
before they leave the classroom. This legislation restricts the ability 
of local communities to respond to their needs and it flies in the face 
of the kinds of effective programs that are currently being 
implemented.
  Fourth, State governors will be allowed to take unspecified amounts 
of funding presently used to provide critical veterans employment, 
adult education, vocational rehabilitation, and other services and 
instead use that money for administrative costs in the one-stop 
centers. Federal organizations projected a $61.3 million shortfall in 
their outreach and job counseling and placement programs already. 
Vocational organizations can only service 5 percent of those who need 
their services already.
  Finally, the bill rolls back the critical civil rights protections.
  Mr. Chairman, we have again missed an opportunity to come together in 
a bipartisan fashion. This legislation is the worse for it, and I urge 
its rejection.
  Mr. McKEON. Mr. Chairman, I yield 3 minutes to the gentleman from 
Georgia (Mr. Isakson), the vice chairman of the subcommittee and one of 
the great leaders on the committee.
  Mr. ISAKSON. Mr. Chairman, I thank the gentleman from California 
(Chairman McKeon) for introducing me, but also in particular for his 
leadership and work on this legislation, as well as the gentleman from 
Ohio (Chairman Boehner).
  I am particularly pleased to rise in support of H.R. 1261 because of 
the great additional support it gives to the youth of America. This 
bill provides a targeted approach to serving America's youth. 
Specifically, it emphasizes the need to provide WIA youth funds for 
out-of-school young adults. Under current law, funds for the WIA youth 
program are spread too thinly. Out-of-school youth are currently 
underserved and face significant challenges to successful employment 
and careers. This bill addresses the problem and provides adequate 
funding to alleviate the problem.
  Furthermore, this bill provides that youth eligible for services 
under State and local programs must be of the ages between 16 and 21. A 
focus on this age group will provide States with the flexibility to 
address both in- and out-of-school youth, as well as promote dropout 
prevention for our Nation's youth. However, services for in-school 
youth must be provided during nonschool hours, which may include before 
and after school programs. This bill promotes more productive 
development programs, while ensuring these training and employment 
programs are not substituted for school curriculum. The purpose is to 
enhance and supplement education, in addition to traditional schooling, 
to better prepare them for the jobs of the future.
  Additionally, the bill makes Youth Councils optional rather than 
mandatory. In many areas, local Youth Councils have proven to be 
inefficient or ineffective in enhancing the local system's efforts to 
provide programs and services that successfully address youth issues. 
However, local boards retain the authority to create such councils if 
they are needed and prove effective in this area.
  Finally, this important legislation provides challenge grants to 
cities and rural areas that have effective partnerships with education, 
business, and community organizations in providing youth programs and 
services. These areas will have the ability to compete for challenge 
grant targeted funding, which will further result in greater and more 
effective services for our youth population.
  Mr. Chairman, H.R. 1261, the Workforce Reinvestment Act and Adult 
Education Act of 2003, is crucial to a successful and productive 
workforce and especially crucial to the youth of America. I am pleased 
to rise in support, and I encourage this House to adopt the 
legislation.
  Mr. GEORGE MILLER of California. Mr. Chairman, I yield 3 minutes to 
the gentleman from New York (Mr. Nadler).
  Mr. NADLER. Mr. Chairman, I rise today in opposition to this 
legislation which will enshrine the principle of religious 
discrimination in our laws. I can recall no greater betrayal of our 
Nation's family principles in my 10 years in Congress.
  Supporters of this bill have held up the nonexistent problem that 
religious organizations allegedly cannot participate in federally 
funded programs. That is not true. Religious organizations have every 
right to participate in publicly funded programs and they have done so 
for many years.
  This bill is also not about protecting religious freedom. Current law 
protects the right of institutions to select their own clergy and 
practice their religions free from government interference. No one is 
questioning that, and this bill has nothing to do with it. The question 
is whether you can discriminate in taxpayer-funded, nonreligious 
employment. Current law says you cannot. This bill says you can.
  This is not equality, and it is certainly not compassion. It is 
simply wrong to tell those taxpayers that programs they fund can be 
closed to them simply because of their religious faith.
  Mr. Chairman, the people I represent understand religious 
discrimination. Many of them came to this country because Jews or 
Catholics faced the evils of religious bigotry in Europe. They should 
not have to face it here.
  This bill is also a slander against religious people across this 
Nation. They do not want to engage in employment discrimination; they 
want to help people. They are guided by their faith to make the world a 
better place.
  Not only does this bill bring shame on our Nation and its tradition 
of religious tolerance, the Republican leadership has decreed that we 
cannot even vote on this momentous question of repealing the law 
against religious discrimination. They have abused their power by 
forbidding a discussion and a vote on this fundamental question.
  What are they afraid of? Are they afraid that some of their Members 
might have to answer to their neighbors for casting a vote in favor of 
religious discrimination with taxpayers' money? I cannot blame them 
from hiding behind the Iron Curtain of the Committee on Rules.
  Mr. Chairman, we have heard all of this before from the Republican 
leadership. In the Committee on the Judiciary, we were told that people 
should be able to discriminate against janitors and the people who 
serve soup to the poor simply on the basis of religion. The President 
has made the right to discriminate on the basis of religion the heart 
of his so-called ``compassionate conservatism.''
  Mr. Chairman, that is not what America is about. It is not the spirit 
of religious charity, it is not the spirit of religious liberty. I 
cannot imagine voting yes on a bill to say that for the first time 
since the Civil Rights Act of 1964 we are going to repeal a bill, a law

[[Page 10905]]

against religious liberty, a law that Ronald Reagan signed, a law that 
said you cannot discriminate with Federal taxpayer funds on the basis 
of religion. This bill says you can. For shame, Mr. Chairman.
  Mr. Chairman, I rise today in opposition to this legislation which 
will enshrine the principle of religious discrimination in our laws. I 
can recall no greater betrayal of our nation's founding principles in 
my 10 years in Congress.
  Proponents of this bill have held up the non-existent problem that 
religious organizations cannot participate in federally funded programs 
that is not true. Religious organizations have every right to 
participate in publicly funded programs, and they have done so for many 
years. I have helped many of these religiously affiliated charities 
obtain Federal and State funding to do their good work as have most 
other members of this House.
  This bill is also about protecting religious freedom. Current law 
protects the right of religious institutions to select their own clergy 
and practice their religions free from governmental interference. No 
one is questioning that, and this bill has nothing to do with it. The 
question is whether you can discriminate in taxpayer funded non-
religious employment. Current law says you can't. This bill says you 
can.
  This is not equality, and it is certainly not compassion. All 
Americans pay their taxes and, therefore, pay for these programs. It is 
simply wrong to tell those taxpayers that programs they fund can be 
closed to them simply beause of their religious faith.
  Mr. Chairman, the people I represent understand religious 
discrimination. Many of them came to this country because Jews or 
Catholics faced the evils of religious bigotry in Europe. They should 
not have to face it here.
  This bill is also a slander against religious people across this 
nation. They do not want to engage in employment discrimination; they 
want to help people. They are guided by their faith to make the world a 
better place.
  Not only does this bill bring shame on our nation and its tradition 
of religious tolerance, the Republican leadership has decreed that we 
cannot even vote on the momentous question of repealing the law against 
religious discrimination. They have abused their power by forbidding a 
discussion and a vote on this fundamental question.
  What are they afraid of? Are they afraid that some of their members 
might have to answer to their neighbors for casting a vote in favor of 
religious discrimination? I can't blame them for hiding behind the Iron 
Curtain of the Rules Committee. I wouldn't want to have to answer for 
that either.
  Mr. Chairman, we have heard this all before from the Republican 
Leadership. In the Judiciary Committee we were told that people should 
be able to discriminate against janitors and the people who serve soup 
to the poor simply on the basis of religion. The President has made the 
right to discriminate over the heart of his ``compassionate 
conservative''.
  Mr. Chairman, that's not what America is about. This is certainly not 
the spirit of religious charity. I urge a no vote on this bill so we 
can come back and do it right.
  Mr. McKEON. Mr. Chairman, I yield 2 minutes to the gentleman from 
South Carolina (Mr. Wilson), another new member of our committee.
  Mr. WILSON of South Carolina. Mr. Chairman, I want to thank the 
gentleman from Ohio (Chairman Boehner) who has worked diligently to 
strengthen workforce development and job training programs by 
eliminating wasteful duplication and refocusing services to ensure job 
seekers have access to the most effective job training resources 
available.
  The unemployment rate reached 6 percent last month. It is clear we 
must join together to provide out-of-work Americans with the tools and 
resources they need to get back to work.
  Mr. Chairman, H.R. 1261 will strengthen and renew the programs at the 
one-stops by providing more effective and efficient services and by 
using resources more appropriately for Americans striving to get back 
to work. The one-stops I have visited are making a difference and this 
bill will allow them to provide even better services.
  H.R. 1261 combines the three funding streams into one, which provides 
for streamlined program administration and more efficient service 
delivery at the State and local level, resulting in additional funds 
available for the provision of services. However, funds continue to be 
targeted for those needing the most critical reemployment services.
  H.R. 1261 continues to require States to provide rapid response 
services in case of mass layoffs, plant closings, disasters, or other 
events that lead to substantial increases in the number of unemployed 
individuals.
  Employment services will continue to be provided as core services at 
the one-stop career centers.
  In addition, the bill provides an equitable distribution of funds 
between States and local workforce investment areas. The bill ensures 
that funds currently supporting the delivery of local reemployment and 
training services will continue.
  In conclusion, the one-stop operators will no longer have to track 
multiple streams of funds. States and local areas will have the 
flexibility to tailor services to the needs of their labor market.
  Mr. Chairman, I urge my colleagues to support H.R. 1261, and God 
bless our troops.
  Mr. GEORGE MILLER of California. Mr. Chairman, I yield 2 minutes to 
the gentleman from Texas (Mr. Green), an alumni of the committee.
  Mr. GREEN of Texas. Mr. Chairman, I thank our ranking member for 
yielding me this time, and I appreciate the recognition as alumni of 
the Committee on Education and the Workforce.
  I rise in opposition to the legislation which hurts our unemployment 
assistance programs at the worst possible time. In my hometown in 
Texas, the unemployment rate is 6.7 percent as of March 2003, and 
probably is getting worse. Across the country, there are almost 10 
million Americans who are officially unemployed and many who are not 
counted because they have dropped off the rolls. Our unemployment 
system needs to be stronger, not weaker. We need extended unemployment 
assistance in low income areas and we need stronger employment and 
retraining services.
  The bill here today, H.R. 1261, actually reduces vital services 
through the old ``block grant and privatize'' game. I heard from my 
constituents working in the employment services field, and they report 
that privatization means unresponsive low bid contractors, overworked 
staff, and cutting corners.
  Another concern I have is with the requirement that State vocational 
rehabilitation plants must describe how these services are better 
coordinated with services under IDEA. I do not mind coordination, but 
not if it is a cover for funding cuts, and that is what I am concerned 
about.
  Under this bill, one-stop centers, which have been a success across 
the country and also in Houston would have to use more of their Federal 
funds to pay for infrastructure, not for services. That is a funding 
cut.
  With over 3 million workers projected to lose their temporary 
unemployment assistance from now until the end of the year, without a 
new job, this bill makes no sense.
  In my opposition, I would also point out that this reauthorization is 
opposed by major Hispanic groups, including the National Council of La 
Raza and the Hispanic Education Coalition, because it fails to help 
unemployed Hispanics in America to improve their English skills and job 
prospects. Again, from Texas and the Southwest we have a lot of skilled 
workers, but if our unemployment services provide English assistance, 
those people could get work and even better employment. If we want 
Hispanic folks in the labor market, we need to make a commitment that 
teaching English as a second language is important. This bill allows 
States to teach English, but makes no real commitment of resources.
  Let me just touch on the religious concern I have. We had a job fair 
in our district last Monday that was coordinated in a Baptist church. 
We already have religious institutions involved if they want to be. We 
had many employers, and we had our workforce commission in Texas there 
that organized it. It was a great example of a religious community 
coming out and using their facilities, and that is happening right now, 
and they do not have to have discrimination. It happened to be a 
Baptist church, but they did not say we would only hire Baptists or let 
only Baptists come in here and apply for these jobs.

[[Page 10906]]

  Mr. Chairman, I am concerned this bill goes in the wrong direction, 
and that is why I stand in opposition.
  The CHAIRMAN. Without objection, the gentleman from Ohio (Mr. 
Boehner) assumes control of the time.
  There was no objection.
  Mr. BOEHNER. Mr. Chairman, how much time do we have remaining on each 
side?
  The CHAIRMAN. The gentleman from Ohio (Mr. Boehner) has 8\1/2\ 
minutes remaining, and the gentleman from California (Mr. George 
Miller) has 10\1/2\ minutes remaining.
  Mr. BOEHNER. Mr. Chairman, I reserve the balance of my time.
  The CHAIRMAN. Without objection, the gentleman from Michigan (Mr. 
Kildee) assumes control of the time.
  There was no objection.
  Mr. KILDEE. Mr. Chairman, I yield 2 minutes to the gentleman from New 
Jersey (Mr. Holt).
  Mr. HOLT. Mr. Chairman, I thank the gentleman from Michigan for 
yielding me this time.
  I rise with some real concerns about this bill. The Workforce 
Investment Act and the one-stop delivery system that it created 
represent the Nation's primary investment in workforce development.

                              {time}  1300

  It has been successful. The one-stop centers in my district do 
tremendous work, but they desperately need more money to keep serving 
the rising, I am sorry to say, rapidly rising number of unemployed. I 
offered an amendment in the Committee on Rules to reverse the $650 
million in cuts to the WIA programs applied over the past 2 years, over 
the time that the needs of unemployed people were increasing; and these 
cuts have been enormously harmful. Unfortunately, the Committee on 
Rules would not allow my amendment to come to the floor so we could 
debate what is an appropriate authorization here.
  The bill has been rushed to the floor in a partisan fashion and, 
worse, fails to adequately respond to the needs of our workers. It sets 
the stage for reducing job training programs by taking money away from 
participating partners in the Workforce Investment Act such as the 
Veterans Employment programs, Perkins Vocational Education program, and 
the Vocational Rehabilitation program. And in addition, it consolidates 
adult employment and training programs into one block grant. And that 
removes many of the Federal performance and accountability measurements 
and standards that help make WIA a high-quality workforce program. And 
if that is not bad enough, the bill, as you have heard, eliminates 
current civil rights protections for employees of job training 
organizations.
  For all of these reasons, I cannot support the bill. I urge my 
colleagues to oppose the bill so we can return it to the committee 
where I sit with the gentleman from California (Mr. George Miller) and 
the gentleman from Ohio (Mr. Boehner) so that we can bring it back to 
the House in a bipartisan fashion as a bill that will help job seekers 
find jobs.
  Mr. BOEHNER. Mr. Chairman, I yield 4 minutes to the gentleman from 
Indiana (Mr. Souder), another alumni of our committee.
  Mr. SOUDER. Mr. Chairman, first I want to thank the chairman, the 
gentleman from Ohio (Mr. Boehner), and the chairman of the 
subcommittee, the gentleman from California (Mr. McKeon), for their 
work with this bill.
  It is very important that we have these job training programs updated 
on a regular basis; that we have the flexibility to implement, 
particularly when we are struggling in the Midwest and many other parts 
of the country.
  This legislation is historic and very important. I especially want to 
address some misstatements that have been on the floor this afternoon 
regarding the faith-based provision; and it really troubles me as a 
committed Christian, but really anybody of devoted faith, whether you 
are Muslim or Jewish or whatever your background, of what seems to be a 
rise of antireligious bigotry in America right now. It is basically 
saying you are not welcome to practice your faith here.
  The fact is, people of devoted faith have been involved in both the 
public and private arena for many years. We started this morning with a 
prayer. Of all the lawgivers above us, there is Moses, the only one of 
the lawgivers that is faced this direction on the House floor who is 
looking straight down, and In God We Trust. We have passed multiple 
times on this floor legislation that has included and allowed faith-
based organizations to permit, to participate in welfare reform 
initiatives, in multiple other initiatives, drug treatment, where 
people can participate with their faith, without having to give up 
basic tenets of their faith, in helping the poor and practicing 
compassion. In fact, the courts have upheld allowing buses and 
computers being given to private schools. We have charitable 
contributions which are indirect, allowing people to keep money and 
exempt Tax Codes. We allow students to choose to go to a college and 
get a student loan which is, once again, indirect funding.
  The question is, are you forcing anybody directly or indirectly into 
a specific program? In job training there are many choices. This bill 
has programs where there are many choices. Why can any of those choices 
not include a faith-based component? There is simply not enough money 
to cover all the needs in this society. When people are willing to 
leverage their own private dollars, to give of their own time and to 
work with individuals and individuals, particularly when we are 
targeting the poor many of these people are in urban areas. Many of the 
churches that are talked about are churches in my district of Ft. Wayne 
that are African American churches or Hispanic churches that want to 
get involved. They are the most trusted parts of their communities in 
most cases. They want to be involved in the literacy. They want to be 
involved in the job training. They want to be involved in the after-
school programs. And nobody is saying that they are not going to be 
covered in this. Other people have a choice of where they want to go.
  What we are saying is if a church wants to be involved, you cannot 
tell them who they have to have in their pulpit. You can tell them that 
if somebody is practicing pornography and their religion does not 
believe in pornography that they cannot remove that person. Under the 
governmental laws, you cannot remove a person for watching legal 
pornography. But if you are a Christian like I am and you believe the 
church and church organizations are supposed to reflect the glory of 
your Savior or in another religion that faith, to ask that faith to 
change their hiring practices, to change the basic tenets of their 
faith so that they can help the poor is to ask them to do something 
inconsistent.
  Nobody is forcing anybody into any religion. What we are saying in 
the public arena where people are getting job training and so on, can 
one of their choices be to go to a faith of their choice where they can 
get the training along with the character development and with groups 
that are leveraging the funding.
  I commend the chairmen for their initiative with this. I commend our 
President, and I am appalled at the religious bigotry that I hear that 
is really challenging far more than this bill. It is challenging our 
Tax Code. It is challenging other Court-upheld decisions because they 
in effect would force the faith-based community, those who have deeply 
held beliefs that we may disagree about, out of the public arena; and 
that is wrong.
  Mr. KILDEE. Mr. Chairman, I yield 2 minutes to the gentleman from 
Ohio (Mr. Ryan), a member of the committee.
  Mr. RYAN of Ohio. Mr. Chairman, I thank the gentleman for yielding me 
time, and I would also like to thank the gentleman from California (Mr. 
George Miller) for his leadership, as well, on this committee.
  Mr. Chairman, 2.6 million job losses, and $1.2 billion trade deficit 
a day, $1.2 billion trade deficit a day; 2.2 million of the 2.6 million 
jobs that we have lost are manufacturing jobs, good-high wage, high-
paying jobs with health care benefits and pensions.
  This is another missed opportunity. We had an opportunity here in the

[[Page 10907]]

committee to try to stimulate this economy, to try to make 
advancements; and we had an amendment on the Democratic side, $3.7 
billion investment for 100,000 first responders, directly bumped into 
our local communities that are struggling. We are laying off police. We 
are laying off firefighters. We are laying off first responders; and 
those same first responders have also been called to serve in the war, 
leaving a major hole in our local communities.
  In my district alone, 6.9 percent unemployment. In Ohio, 85,000 
workers have exhausted their benefits, 42,000 have exhausted their 
benefits and are still looking for work; and the answer in this Chamber 
and the answer in Washington, DC is a tax cut.
  In my district there is 1 percent of the taxpayers that have an 
income above $200,000, and 50 percent of the workers in my district 
will get a hundred bucks. That is not helping average people in this 
country. And we spew out statistics here left and right, but I am 
afraid that again all the faces and the names have turned into numbers 
in this society. And it is time to give a shot in the arm to this 
economy. We can address local issues. We can invest in our local 
community. We can employ our first responders and at the same time 
address the homeland securities issue. This bill is not doing it, and I 
urge we reject it.
  Mr. KILDEE. Mr. Chairman, I yield 2 minutes to the gentleman from 
Ohio (Mr. Kucinich).
  Mr. KUCINICH. Mr. Chairman, I rise today to speak out against H.R. 
1261, a bill that represent an enormous missed opportunity for this 
Congress to help the growing millions of Americans looking for work or 
needing additional training.
  The dismal job situation in this Nation could not be more clear. The 
unemployment rate moved back up to 6 percent in April as the private 
sector lost another 80,000 jobs, adding to the over 400,000 jobs lost 
in February and March. In all, 2.7 million private sector jobs have 
vanished from the economy since January of 2001. And of the 8.8 million 
unemployed workers in this Nation, almost 2 million are long-term 
unemployed and 4.4 million have been looking for work for so long that 
they have simply given up looking. The plight of the long-term 
unemployed is so bad that the New York Times has reported that in some 
cities support groups for unemployed workers have started holding two 
separate sessions: one for those who have recently lost jobs, and the 
other to offer special counseling needed to support those unemployed 
for 27 weeks or longer.
  And yet in astonishing fashion, rather than invest in new jobs or 
extend benefits for the estimated 3.9 million out of work Americans who 
will be directly effected when the extended unemployment program ends 
this month, this bill unravels our Nation's job training system.
  At a time when efforts should be made to match unemployed workers 
with jobs, H.R. 1261 would eliminate the Employment Service which 
provides these services. The bill also eliminates dedicated funding for 
job training assistance to dislocated and unemployed workers. Instead, 
H.R. 1261 block grants this funding, diluting services for millions of 
workers who need help to find new jobs or retrain to support their 
families.
  As our country remains in the midst of stagnant economic growth with 
few jobs being created, we need a job assistance and training system 
that meets the needs of America's unemployed workers. H.R. 1261 is not 
the bill. America's workers deserve much better. I urge my colleagues 
to vote against final passage, so that as we understand that 
unemployment continues to persist that we challenge these cuts, that we 
challenge the reduction in job training programs, and that we move to 
protect those who have worked for this Nation and now deserve our help, 
not our contempt.
  Mr. BOEHNER. Mr. Chairman, I yield 1 minute to the gentleman from 
California (Mr. McKeon).
  Mr. McKEON. Mr. Chairman, in 1998 we joined together in a bipartisan 
fashion to pass the Workforce Investment Act. We had 150 Federal job 
training programs, and that did not work. We cut it down to 60. We took 
those 60 Federal programs and block granted them out to the States and 
in that legislation set up the one-stop shops. The regulations were 
finally written in about 2000. The one-stops have been set up. They are 
starting to do their job. This bill now gives us a chance to take the 
final three programs we were not able to consolidate last time, 
consolidates them, gives more money to the local areas, gives more 
authority and responsibility to the local areas.
  The one-stops that I visited with the local governments boards are 
doing a great job. We need to give them additional help. That is what 
we do in this bill. It is unfortunate, as we can see from this debate, 
that we were unable to do this bipartisan. It was not our choice. We 
had the committee. We gave everybody the opportunity. We had full 
debates on a lot of the things that they are complaining about now, and 
we won on committee votes. It is important now that we really think 
about the workers and how we can help them and get this bill passed.
  Mr. KILDEE. Mr. Chairman, I yield such time as he may consume to the 
gentleman from Texas (Mr. Hinojosa).
  Mr. HINOJOSA. Mr. Chairman, I rise in opposition to H.R. 1261.
  The programs authorized under the Workforce Investment Act provide 
the key supports to economic self-sufficiency for many in our 
communities. They deserve a more serious and substantive discussion 
than the rushed, partisan effort that we have before us today. H.R. 
1261 does not address the needs of the most significant source of 
growth in America's workforce--immigrants.
  Consider the following: new immigrants accounted for more than 50 
percent of the civilian labor force growth between 1990 and 2001. More 
than 40 percent of non-citizens have less than a high school education 
and approximately 17.8 million adults in the U.S. are limited English 
proficient (LEP). Many states in the south and midwest have experienced 
large increases in the number of LEP individuals over the past ten 
years. Some of these states have little experience providing services 
to LEP adults.
  Evidence has clearly shown that investment in vocationally linked 
English as a second language provides excellent returns. Immigrants who 
are fluent in oral and written English earn approximately 24 percent 
more than those who lack fluency, regardless of their qualifications. 
Yet despite this, H.R. 1261 fails to provide these states with the 
assistance they need to improve their English as a Second Language 
(ESL) and other services to this growing population.
  While many of these new Americans seek to become active participants 
in civic life, few have access to ESL and civics education programs 
that can help them understand their roles as community members. H.R. 
1261 misses an opportunity to help these immigrants learn English and 
better understand their responsibilities as new Americans. Instead, 
H.R. 1261 offers divisive provisions on so-called ``charitable 
choice'', which would sanction discrimination in hiring and weaken our 
civil rights. This is not an investment in our workforce. It is a 
diversion from what our workers need. I urge my colleagues to oppose 
H.R. 1261.
  Mr. KILDEE. Mr. Chairman, I yield 2 minutes to the gentlewoman from 
California (Ms. Waters).
  Ms. WATERS. Mr. Chairman, I rise today to oppose this bill. It is an 
important piece of legislation that should be passed, but not in its 
current form.
  Mr. Chairman, our country is in trouble. On this President's watch 
more than 2.3 million jobs have been lost. Many workers have exhausted 
their unemployment benefits, and this administration is doing nothing 
to stimulate this economy or create jobs. Congress, over the objections 
of many Democrats, has stripped away job assistance programs intended 
to help these workers gain skills and find employment. Unfortunately, 
this bill keeps with this appalling record.
  The bill undermines apprentice programs on which thousands of people 
depend for training and guidance as they begin their careers. In 
addition, this bill allows funding for job training programs and 
unemployment services to be funded in block grants rather than its 
current form, resulting in far less funding for these programs.
  But what I am most concerned about is under this bill any religious 
organization that receives Federal funding

[[Page 10908]]

for job training or other job assistance programs will be allowed to 
turn people away simply because of their religious beliefs. This is 
discrimination in its most obvious form. It should not be allowed. By 
passing this bill, Congress will be rolling back decades of civil 
rights protections. We should be ashamed that this is even being 
considered. And while I am at it, I too am a Christian, and I oppose 
this bill and any effort to weaken civil rights laws.
  Mr. KILDEE. Mr. Chairman, I yield 2 minutes to the gentleman from 
Illinois (Mr. Emanuel).
  Mr. EMANUEL. Mr. Chairman, I thank the gentleman from Michigan (Mr. 
Kildee) for yielding me time.
  Mr. Chairman, I rise today in opposition to H.R. 1261, the Workforce 
Reinvestment and Adult Education Act.

                              {time}  1315

  We are in the middle of a jobs recession where 2\1/2\ million 
Americans have lost their jobs in the last 2 years, 2 million in the 
manufacturing sector alone. It is more important now than ever that we 
ensure that those workers who want to train up and participate in the 
new economy get a chance to participate in the new economy, and this 
job training bill and a job training program is so essential.
  I want to pick up on what my colleague from California said because 
in 1998 we did work together in a bipartisan fashion. We put aside 
politics. We zoned off the area of job training and ensured that we put 
people first and not politics first, and that is why we got a 
bipartisan agreement. We should not roll back on the principle that we 
did in 1998. We should press forward in doing what we did in 1998 by 
coming together, putting people first and not exactly politics.
  My view here is that tomorrow we are going to be voting on a tax cut. 
This bill focuses on the job market. We should not focus on the stock 
market at the exclusion of a job market. It needs the same attention, 
the same interests and the same investment that we are about to do in 
just the stock market alone. The job market has as much priority as the 
stock market.
  On the budget that we passed 2, 3 weeks ago, there were about $700 
million in cuts over 2 years in the President's budget in the job 
training area. That is not the type of investment, that is not the type 
of values that both parties share. People are hurting out there. My 
colleagues have seen them when they have gone in the one-stop shop and 
talked them, as I have, in this time of recession and unemployment 
where 2 million Americans in the manufacturing sector have lost their 
jobs. It is a time that we in both parties need to come together and 
ensure that they have the opportunity to participate in the new 
economy, to participate and have a future whether they are unemployed 
or they want to ensure they have a chance at the American dream for 
them and their family.
  Mr. KILDEE. Mr. Chairman, I yield myself the remaining time.
  Again, I regret we do not have a bipartisan bill. I regret that we 
did not get in the Committee on Rules the ability to offer the 
extension of unemployment benefits which are so sorely needed in this 
country. I regret the fact that we have chipped away at civil rights 
protections which are so precious in this country.
  I would hope that somewhere along the line, before this bill is 
finally finished, that we get a bill that we can have support for on 
both sides of the aisle, but we cannot do that today.
  Mr. BOEHNER. Mr. Chairman, I yield myself the balance of our time.
  Let me again thank the gentleman from California (Mr. McKeon) and all 
the Members who have helped to work to put this bill together.
  I want to congratulate the members of our staff, Sally Lovejoy, 
Krisann Pearce, Stephanie Milburn, Melanie Looney, Travis McCoy, 
Elisabeth Wheel, and James Bergeron of the gentleman from California's 
(Mr. McKeon) staff. They have done a great job in helping us bring this 
bill here today.
  Though the legislation is important for us as legislators, we have a 
chance today to provide out of work Americans with more than just a 
temporary fix. We can provide them with the tools they need to get and 
keep a job.
  Some of my colleagues have talked about the need to extend 
unemployment insurance. Indeed, providing unemployed workers with 
assistance while they are out of a job is critically important, and 
that is why we supported and continue to support appropriate extensions 
of unemployment insurance.
  However, the legislation before us today is an opportunity to provide 
job seekers with what they really need to get back on their feet. We 
can provide them with the tools, the training and the resources that 
will help them find meaningful and permanent employment. As the old 
cliche goes, if you give a man a fish, he eats for a day. You teach a 
man to fish, he will eat for a lifetime. The reason that we all know 
this cliche is because it happens to be true.
  We have an opportunity to provide unemployed Americans with access to 
job training and skills that they need to provide permanent security 
for themselves and their families. H.R. 1261 addresses the real 
hardships that unemployed Americans are facing by strengthening 
programs and targeting most of the needed help by expanding the number 
of providers that can serve job seekers.
  The legislation before us today happens to receive strong support 
from the States that are administering the programs, the local 
workforce boards who are directly providing these services to job 
seekers and the businesses who actually hire the workers. As the U.S. 
Chamber of Commerce has pointed out, ``As economic growth accelerates, 
the need for skilled workers will only increase. The Workforce 
Reinvestment and Adult Education Act provides increased flexibility and 
strives to create programs that are responsive to businesses' needs now 
and in the future.''
  The backbone of a strong economy is a well-developed workforce, and 
providing job seekers with the skills and training they need to thrive 
will strengthen our economy and they are also needed to help us spur 
economic growth.
  So I urge my colleagues to support this important bill, and we look 
forward to entertaining the number of amendments that have been made in 
order.
  Mr. PAYNE. Mr. Chairman, I rise in my opposition to H.R. the 
Workforce Investment Act.
  Our Nation is facing the worst unemployment since the Great 
Depression. The 6 percent unemployment rate that was announced the 
beginning of the month equals to nearly nine million American out of 
work.
  2.7 million private-sector jobs have vanished since the 
Administration took office a little over 2 years ago. Over the last 3 
months alone, the economy has shed 538,000 private-sector jobs.
  What is the Majority's solution? To severely undermine the very Act 
that is designed to create opportunities for our unemployed workers.
  The other side of the aisle uses words such as efficiency, steam-
lining, reforms and improvements in this bill. If this bill becomes law 
in its present form, efficiency will result in more lost jobs, 
streamlining will result in fewer resources for workers, and reforms 
and improvements will result in privatization.
  Congress has traditionally responded to the employment, training and 
education needs of workers by constructing bipartisan legislation to 
provide unemployment compensation and strengthen the job training 
system when needed. Instead, the bill we have on the floor today falls 
short of securing needed training and employment programs and fails to 
assist our Nation's unemployed and disadvantaged workers.
  This bill does not extend unemployment benefits; it would repeal a 
21-year-old civil rights standard that prohibits federally funded job 
training organizations from using religion as a qualification in hiring 
decisions.
  This bill would block grants the current dislocated workers programs, 
adult training programs with the Employment Service. By eliminating the 
funding focus for the Employment Service program, it will essentially 
terminate the very service which connects people to jobs, a critical 
job assistance to the unemployed workers hardest hit by the current 
recession.
  Participation for in school youth would be capped at 30 percent. 
These are the very youth that are most likely to drop out if they don't 
receive services such as summer employment opportunities, mentoring, 
and job counseling.

[[Page 10909]]

  H.R. 1261 allows Governors to use adult education funds to pay for 
One Stop Center's administrative costs, thus taking critical funds from 
programs such as the Perkins vocational education and Vocational 
rehabilitation programs.
  Secretary of Labor Elaine Chao has described our Nation's job 
training and workforce development system as ``world class''. We cannot 
consider our system to be world class if we allow this bill to move 
forward. Ladies and gentlemen, are hurting our Nation's workers by 
offering this bill as a solution and that is why I urge my colleagues 
to vote against this bill.
  Mr. BACA. Mr. Chairman, I rise in opposition to H.R. 1261.
  H.R. 1261 is a flawed proposal that cannot be fixed. There are too 
many unemployed Americans today that need services and support for 
their families to pass this bill.
  With a suffering economy and rising unemployment, the workers under 
this proposal would be called upon to work harder than ever before, yet 
receive fewer benefits and support when they are down than ever before.
  The administration and GOP have adopted the reckless policy of 
kicking American working families when they are down. The GOP seems to 
think that during this time of high unemployment, we should cut back on 
employment assistance and training.
  This bill eliminates the Adult and Dislocated Worker Programs and the 
Employment Service State Grants and substitutes them with a block 
grant.
  While the total amount for the block grant would be the same as the 
sum of the individual programs, the administrative changes will 
actually result in a net loss for beneficiaries.
  Our national unemployment rate is 6 percent, but these numbers don't 
account for the millions that have been forced off the labor force or 
are not considered ``active'' enough in their job search.
  Also, Republicans would have us believe that when a person's 
unemployment benefits expire, they are then magically employed because 
they are not counted as unemployed!
  All of you here know how bad it is out there. We all have 
constituents who need work, need resources to take care of their 
families, and who need a helping hand.
  I call on my colleagues that remember the legacy of Cesar Chavez to 
oppose this bill that eliminates the Migrant and Seasonal Farmworker 
Programs.
  I call on my colleagues that care about our children to oppose this 
bill that starves the Youth Opportunity Grant program to death.
  I call on my colleagues to oppose this reckless $700 million dollar 
cut to Title I programs.
  This is about people! This is about the economy! This is about our 
children!
  This is about American working families, families that have to eat 
and take care of their children, but that barely earn enough to pay for 
food, shelter, and clothing.
  This piece of legislation is not an acceptable or responsible 
proposal to provide needed services to our Nation's unemployed. Please 
join me in voting no on final passage.
  Ms. PELOSI. Mr. Chairman, I rise in opposition to H.R. 1261, the 
Workforce Reinvestment and Adult Education Act.
  Today, in the middle of a recession, we should be voting for an 
economic plan to create jobs. My colleagues and I have proposed the 
Democratic Jobs and Economic Growth Plan, which would create more than 
one million jobs this year. Instead, tomorrow the Republican leadership 
will bring up a bill that gives tax cuts to the wealthy and does not 
create jobs.
  Today, with the unemployment rate at 6 percent, we should be voting 
to extend unemployment benefits. Unemployment compensation immediately 
puts dollars in the pockets unemployed workers and helps boost the 
economy. Instead, today we are voting on a bill that will weaken our 
job training programs.
  H.R. 1261 has many serious flaws. First, it would consolidate funding 
for services for adults, disclosed workers, and employment services 
into a single block grant, forcing these groups to compete against each 
other for assistance and likely leading to reduced funding. It would 
eliminate the U.S. Employment Service, which maintains a free, 
nationwide labor exchange that matches job seekers and employers.
  This bill would allow governors to take funds from programs such as 
Adult Education, Veterans' Reemployment, and job training for disabled 
individuals to spend on infrastructure expenses at one-stop centers, 
The result would be reduced funding for jobs and training programs at a 
time when more Americans are seeking employment assistance and job 
training.
  H.R. 1261 would also reduce accountability of training providers by 
eliminating federal performance standards. Furthermore, the bill would 
cut back services to youth, who have been among the hardest hit by the 
current economic downturn.
  Finally, H.R. 1261 would overturn a federal anti-discrimination 
policy established more than 60 years ago. At that time, President 
Franklin D. Roosevelt decided to forbid federal contracts from 
discrimination based on religion, as well as race with national origin. 
Following in the same tradition, the current job training law prohibits 
religious discrimination.
  Breaking with this long commitment to civil liberties, H.R. 1261 
would allow religious groups to discriminate on the basis of religion 
when hiring or firing staff for federally-funded social programs. It is 
profoundly unwise to allow the federal government to fund religious 
discrimination. It is bad for our churches, bad for our workforce, and 
bad for our society. I urge my colleagues to vote against H.R. 1261.
  Mr. ACEVEDO-VILA. Mr. Chairman, I rise to commend Chairman John 
Boehner and Subcommittee Chairman Buck McKeon for including certain 
language in their manager's amendment to H.R. 1261, the Workforce 
Reinvestment and Adult Education Act of 2003, and also Ranking Member 
George Miller and Congressman Kildee for their support in this matter. 
These adjustments will remove definitions from the bill that would have 
created ambiguity with regards to providing workforce investment 
funding to Puerto Rico for high school dropouts and jobless-out-of-
school youth, and would likely have resulted in reduced funding.
  As reported from Committee, H.R. 1261 required certain data points to 
be included in the allocation formula to be taken from the Current 
Population Survey--a survey that DOL does not conduct in the 
Commonwealth of Puerto Rico. The effect of this requirement would be 
that funding for important, youth-focused workforce training and 
education programs in Puerto Rico would likely be cut to these programs 
in Puerto Rico. While a hold harmless provision in H.R. 1261 would 
limit the size of any cut to these programs in Puerto Rico, the high 
unemployment rate of the Commonwealth emphasizes the need to obtain all 
intended, formulated and available funds for workforce investment.
  The Workforce Investment Act (WIA) is an important program for 
unemployed and underemployed people in Puerto Rico and all the United 
States. Many people, youth and adult alike, find greater opportunity 
through the training, education and other benefits provided through 
WIA, and our economy will improve only by making such investments in 
our workforce.
  Again, I greatly appreciate the consideration of Chairmen Boehner and 
McKeon in making this correction to the Workforce Reinvestment and 
Adult Education Act. I know that their intent in passing this bill 
through the House is to improve the delivery of workforce investment, 
training and education, and to affect positive impacts on our economic 
situation. Certainly, the manager's amendment will improve the 
reauthorized Workforce Investment Act's application in Puerto Rico, and 
will enable more funding and workforce services to benefit high school 
dropouts and jobless-out-of-school youth.
  Ms. LEE. Mr. Chairman, I thank my good friend from California George 
Miller, a tireless advocate for working families in the Bay Area of 
California and all across this nation, for yield me time today.
  Mr. Chairman, I rise today in strong opposition to this bill which 
will only exacerbate the jobs crisis in American and would repeal 
precious civil rights protections.
  Mr. Chairman, we are in the midst of a jobs crisis--an unemployment 
crisis. Nine million men and women are out of work--a third of these 
men and women lost their livelihood since President Bush took office.
  What's the Republican response to this crisis? First, denial, then 
waging war while ignoring the declining economy; now they offer us a 
one-two combination jobs loss program: first this so called Workforce 
Reinvestment and Adult Education Act today, followed by the 
irresponsible tax cut bill scheduled for consideration tomorrow.
  Mr. Chairman, we need a jobs creation program, we need to extend 
unemployment benefits. This bill does nothing to create American jobs, 
does nothing to help in the short-term.
  In fact, it does exactly the opposite: it ensures that workers will 
continue to struggle to find jobs in the long term because this bill 
sacrifices so many of our tired-and-true training resources. It 
collapses adult and dislocated training programs into one funding 
stream and cuts then by over $600 million from FY 02 levels. It 
eliminates substantial amounts for youth training programs, which is 
something desperately needed in my 9th Congressional District of 
California. And it does not go far enough to help veterans find jobs.

[[Page 10910]]

  An unemployment crisis requires a real solution--the Republicans have 
offered us a jobs loss program instead. On those grounds alone I oppose 
this bill. But, Mr. Chairman, there is yet another reason to oppose 
this bill--yet another fatal flaw: it removes civil-rights protections 
that ban employment discrimination based on religious affiliation. It 
is wrong and unconstitutional for taxpayer funding to go to 
organizations that can hire and fire based solely on someone's 
religious beliefs and for this reason too, that I urge my colleagues to 
vote no on the underlying bill.
  Mr. STARK. Mr. Chairman, I rise today in opposition to H.R. 1261, the 
Workforce Reinvestment and Adult Education Act.
  Today's bill has nothing to do with improving or ``reinvesting'' in 
our workforce--far from it. Instead, the Republicans are using it to 
weaken worker protections and open the door to hiring discrimination 
while dismantling the employment service program that helps people out 
of work find jobs. Apparently the Republicans haven't read the latest 
unemployment numbers. How else can you explain being so cruel and 
unfair as to pull the rug out on the nation's unemployed?
  Let me remind my Republican colleagues that the number of jobs in 
this country is at the lowest point in 41 months. April was the third 
straight month the economy lost jobs as the nation's unemployment 
jumped to 6 percent. There are now 10 million workers in America out of 
work. Of those, two million have been unemployed for 27 weeks or more. 
In fact, the average length of unemployment has risen to 20 weeks--
that's the highest since 1984.
  You would think that with such staggering statistics, this 
Republican-led Congress would be doing everything it could to bolster 
workforce investment. Yet, this House Republican bill cuts employment 
and re-employment services at the time they are needed most. It 
underfunds the Employment Service, Adult, and Dislocated Worker 
programs by consolidating them into a single block grant. This puts the 
burden directly on the states, exacerbating their fiscal crises and 
triggering layoffs among the very state employees who administer these 
programs that help people find work. Yet, much worse, it forces 
unemployed workers and welfare recipients to fight it out for a share 
of these limited funds.
  To add insult to injury, the Republicans give states the right to 
waive basic worker protections that allow employees to seek redress 
when they've been treated unfairly. They even allow religious 
organizations to engage in hiring discrimination in an unholy attempt 
to turn back a half-century of progress in preventing workplace 
discrimination.
  Current law prohibits employers participating in federal job training 
programs from discriminating based on race, color, religion, sex, 
national origin, age, disability, or political affiliation or belief. 
The Republican bill would allow the taxpayer dollars that pay for these 
job-training programs to go to religious organizations that blatantly 
discriminate in hiring based on religious beliefs. What next? Will the 
next Bush initiative include allowing discrimination based on race, 
sexual orientation or political affiliation?
  The vital civil rights provision barring federally funded religious 
discrimination has never been controversial and has never been a 
partisan issue. In fact, the provision was first included in the 
federal job training legislation that Senator Dan Quayle sponsored. It 
passed through a committee chaired by Senator Orrin Hatch and was 
signed by President Ronald Reagan.
  Throughout its 21-year history, this civil rights provision has not 
been an obstacle to the participation of religiously affiliated 
organizations in federal job training programs. Currently, many 
religious organizations participate in the federal programs and comply 
with the same civil rights protections that apply to other employers.
  But suddenly, under the leadership of the White House, we are being 
asked to forget the principle of equal opportunity on which our country 
was founded.
  I'm not surprised that an amendment to restore the anti-
discrimination language was defeated in committee on a party-line vote. 
Yesterday, Republicans refused to allow Democrats the chance to offer 
the same amendment on the House floor today. It seems that Republicans 
are not only trampling on every American's civil rights, they're 
preventing a fair and open democratic process.
  Now is not the time to be rolling back civil rights protections and 
it certainly isn't the time to be short-changing the unemployed. 
Congress ought to be creating solutions to make it easier for folks to 
find jobs, not more difficult. This Republican bill is clearly not a 
solution. It will only create more problems for those looking for 
work--problems they simply don't deserve.
  I urge my colleagues to vote no on H.R. 1261.
  Mr. REYES. Mr. Chairman, I rise today in strong opposition to the 
Workforce Reinvestment and Adult Education Act of 2003.
  Of particular concern to me is the devastating effect this bill would 
have on funding for dislocated worker programs, which are so important 
to workers in my district of El Paso, Texas.
  El Paso has the unfortunate distinction of having the greatest number 
of NAFTA-related job losses in the nation, with over 20,000 workers 
losing their jobs since the implementation of NAFTA almost a decade 
ago.
  Once, El Pasoans could find employment at the textile, plastics, and 
electronics assembly plants in their community. For many of my 
constituents who have limited English proficiency and education, these 
jobs provided a good, living wage for workers and their families. But 
in the wake of NAFTA, a great number of the factories have closed, and 
the jobs have disappeared.
  In their place, there are new employment opportunities in the 
service, healthcare, and high-tech industries. However, most dislocated 
workers are not prepared to fill these jobs without the education and 
training that federal dislocated worker programs provide.
  Incredibly, at a time when the economy has stagnated and unemployment 
is on the rise, at a time when we should be doing everything we 
possibly can to help America's workers, the bill before us today 
eliminates continued dedicated federal funding for dislocated worker 
programs.
  Mr. Chairman, this is simply the wrong bill at the wrong time. I urge 
my colleagues to vote no on H.R. 1261.
  Mr. MORAN of Virginia. Mr. Chairman, I rise in strong opposition to 
the Workforce Reinvestment and Education Act.
  This legislation fails to recognize what we all know: that there are 
over 8.3 million Americans who are out of work in this country. This is 
the longest stretch of job loss since the Great Depression.
  With the unemployment rate now at 6 percent, it is reprehensible that 
this legislation, which some have said is a ``reinvestment in our 
nation's workforce,'' does not include an extension of federal 
employment benefits, especially as they are set to expire at the end of 
this month.
  When we extended the program last January, the rate of unemployment 
was even lower than the rate today, and now we have reached near crisis 
point.
  It has been estimated that more than 43 percent of unemployed workers 
are exhausting their state benefits without finding work, and this 
number will continue to climb if Congress does not address this issue 
soon.
  This bill also does a disservice to our veterans. Many of our troops 
that are currently serving in the war in Iraq, will soon be returning 
home to an economy where jobs are disappearing at a fast rate.
  Under the current bill, funds targeted toward veteran employment 
services would be pooled with other Workforce Investment funds and 
those services previously targeted to serve our troops become 
discretionary depending on how the individual state workforce 
investment board decides.
  As we all know, these programs are already critically underfunded. 
They strive to meet the increasing demands placed upon them in an 
environment of increasingly inadequate resources. To be effective, 
these programs cannot sustain these devastating cuts.
  Finally, the Workforce Reinvestment and Adult Education Act would 
eliminate the civil rights protections of Americans, by exempting 
religious organizations from anti-discrimination requirements.
  The message that we are sending to the millions of Americans who are 
unemployed, who are veterans and those who are in need of economic 
assistance is that we do not care about keeping them from falling 
further into an economic crisis.
  This bill is not a reinvestment in our workforce and fails to aid the 
millions of jobless Americans who need it the most.
  I urge all my colleagues to vote against H.R. 1261.
  Mr. HONDA. Mr. Chairman, I rise today to oppose H.R. 1261, the 
Workforce Reinvestment and Adult Education Act. Let us not be fooled by 
the title of the bill. A more accurate title would be the Workforce 
Divestment Act, because the legislation guts the program and removes 
critical civil rights protections. In a time of skyrocketing 
unemployment, it is shameful that the House Republicans would prefer to 
ignore workers who are in need of retraining and unemployment 
compensation and instead champion tax cuts for the most well-to-do 
segments of our society.
  At its core, this legislation is flawed. The bill, for example, would 
block grant the current dislocated worker programs with adult training 
programs and the state employment service.

[[Page 10911]]

As a result, the states would no longer be required to assure that 
adequate resources are earmarked to assist laid-off workers. Instead, 
unemployed workers would be pitted against low-income workers and 
welfare recipients in a competition for limited resources.
  Equally troubling, H.R. 1261 explicitly authorizes religious 
organizations receiving federal funds from WIA's job training programs 
to discriminate against employees and job applicants based on religion. 
Current law prohibits participants in federal job training programs 
from discriminating based on race, color, religion, sex, national 
origin, age, disability, or political affiliation or belief. Allowing 
this kind of discrimination is not only wrong it is unconstitutional.
  Rather than making these detrimental and indefensible changes to WIA, 
we should be taking up legislation that actually helps those workers 
impacted most in this recession--a recession the Bush administration 
has failed to reverse. We should be working on legislation to extend 
the Temporary Extended Unemployment Compensation (TEUC) program, which 
is currently scheduled to expire at the end of this month. We should 
not only extend TEUC, we should expand the program to provide a total 
of 26 weeks of federal extended unemployment insurance benefits to all 
laid-off workers, including those who have already exhausted their 
federal extended benefits, as well as newly laid-off individuals. If we 
do this, we would actually be investing in our workforce.
  Mrs. CHRISTENSEN. Mr. Chairman, the reauthorization of the 
``Workforce Reinvestment and Adult Education Act'' is critical to 
solving our nation's economic slump. The unemployment rate rose to 6.0 
percent in April and the number of unemployed persons increased to 8.8 
million in April. Jobless rates for adult women, teenagers, whites, 
African-Americans and Hispanics showed little or no change. During this 
time of economic recession, investing in the workforce benefits both 
employees and employers and strengthens our economy. Access to job 
training is critical for our nation's unemployed. But, H.R. 1261 is not 
a ``simple'' reauthorization of the Workforce Investment Act. Rather, 
H.R. 1261 is the beginning of dismantling the federal unemployment 
safety net that has served our nation for over 70 years.
  There are several provisions of H.R. 1261 that are particularly 
troubling. The Republican bill removes nondiscrimination language from 
the existing law--thereby allowing organizations receiving funds under 
WIA to discriminate in hiring based on religion. I have received 
constituent letters urging a vote against H.R. 1261 because this 
legislation jeopardizes civil rights and religious freedoms by rolling 
back protection against discrimination or misuse of government funds by 
religious organizations.
  Block granting is a bad strategy and one that we have seen often used 
by the Republicans. By block granting the current dislocated worker 
program with the adult training program and the state unemployment 
benefits program, welfare recipients and at-risk populations will have 
to compete not only with one another for much needed services, but 
competition would increase among programs for limited dollars. This 
approach weakens the individual job training programs instead of 
strengthening them. Restructuring WIA is not the answer to reduce our 
unemployment rate. Creating more jobs is the answer.
  Instead of bringing up this damaging bill, the Republicans should 
also be bringing a bill to extend Unemployment Benefits. At the end of 
this month, the current Temporary Extended Unemployment Compensation 
program will terminate, and jobless workers who have extended their 
regular unemployment benefits will not be able to obtain assistance. 
This bill does nothing to address this issue.
  The local WIA agency in my district, the U.S. Virgin Islands, has 
voiced concerns about the change in funding ration for youth programs 
under WIA. The current bill would cap participation for in-school youth 
at 30 percent. Under current law, both in-school and out-of-school 
youth are served. Services that would be dropped as a result of the 
Republican plan include summer employment opportunities, mentoring, and 
job counseling.
  The reauthorization of WIA is an opportunity for Congress to address 
the unemployment issue in this country. Unfortunately, H.R. 1261 does 
not address the needs of this growing population. I urge my colleagues 
to vote ``No'' on the passage of H.R. 1261.
  Mr. RENZI. Mr. Chairman, our nation's faith-based institutions have 
significant track records in meeting the training and counseling needs 
of citizens seeking employment.
  The services provided by faith-based institutions will be a vital 
component to help our nation's workforce, increasing the ability of job 
seekers to get needed training, counseling, and prevocational services.
  Unfortunately, liberal special interest groups have joined forces 
behind an effort to bar religious and faith-based organizations from 
being involved with efforts to help workers find jobs and job training. 
This is disgraceful.
  Congress should actively encourage any effort to provide unemployed 
men and women with new jobs, and not look for excuses as to why 
qualified and proven job counseling advisors should be excluded from 
helping our nation.
  During the 1990s, President Bill Clinton supported four laws that 
explicitly allow religious organizations to retain their right to staff 
on a religious basis when they receive federal funds--just as 
Republicans are proposing today. I ask my colleagues on the other side 
of the aisle, why are you standing now? When you sat silently in 
support of your past president.
  This bill simply reiterates the existing exemption religious 
organizations have had for more than three decades under civil rights 
law, applying it to the Workforce Investment Act so that every 
available resource is being tapped to help Americans find jobs.
  Faith-based organizations need to be part of the Federal job training 
and worker relief system under the Workforce Investment Act, and if 
they are excluded, that would qualify as discrimination of a criminal 
level.
  Ms. WATSON. Mr. Chairman, I rise in strong opposition to H.R. 1261. 
Mr. Speaker, similar to the IDEA Reauthorization last week, we are 
again presented with a subpar rule and a subpar bill. The Committee did 
not allow us to vote on and discuss key amendments which would have 
greatly improved this measure.
  I offered an amendment that was rejected by the Rules Committee 
yesterday that would have specified that local WIA boards may use funds 
to carry out training programs for displaced homemakers and 
nontraditional training for women. These are two existing programs that 
have been crucial to low-income women's economic independence and self-
sufficiency. Since more than 60 percent of WIA recipients are women, 
the use of WIA funds for these programs would have provided necessary 
training opportunities, counseling, and services for WIA recipients to 
learn the necessary skills in obtaining and keeping jobs.
  Mr. Chairman, this bill fails workers, attacks our Veterans and 
erodes our civil rights laws. An amendment offered to extend Federal 
unemployment benefits for newly unemployed workers and for those 
workers who have previously exhausted their unemployment benefits was 
not allowed. Also defeated was an amendment which would have restored 
current law prohibiting the use of Federal funds to discriminate in 
hiring based on religion, as well as an amendment to strike the 
language in the bill that allows governors to take money from Veterans 
and dislocated worker programs to pay for infrastructure costs for one-
stop centers.
  The Workforce Reinvestment and Adult Education Act is supposed to 
provide job opportunities for our Nation's youth and extend educational 
opportunities for adults. The bill we have before us does not hold this 
commitment. H.R. 1261 cuts job opportunities for youth, shifts critical 
resources away from career preparation and summer jobs, eliminates the 
successful Youth Opportunity Grants and reduces targeting of resources 
to poor communities.
  In a time of economic downturn and a rising unemployment rate, it is 
our duty to provide for the necessary funds to boost our economy and 
safeguard our future. We can increase the effectiveness and outreach of 
boards by increasing funding to local boards. We must give local 
leaders the opportunity to shape best use of resources to their 
communities.
  Mr. Chairman, H.R. 1261 does not cut it. I urge my fellow colleagues 
to vote no on this bill.
  Ms. JACKSON-LEE of Texas. Mr. Chairman, I rise in opposition to H.R. 
1261, the Workforce Reinvestment & Adult Education Act of 2003.
  The supposed purpose of H.R. 1261 is to authorize and allocate funds 
for employment, training, literacy, and vocational rehabilitation 
programs for adults and dislocated workers. H.R. 1261 also funds 
activities for low-income youth, such as tutoring and study skills 
training, alternative high school services, and summer youth job 
opportunities.
  Despite these seemingly good intentions, H.R. 1261 does not 
adequately respond to the needs of Americans today or in the future. 
Rather than immediately addressing the needs of the unemployed by 
extending benefits or including a jobs creation package, H.R. 1261 
repeals funding for vulnerable workers. H.R. 1261 puts vulnerable and 
unemployed Americans at risk by permitting Governors to take 
unspecified dollars from the pool of funds available for adult 
education, disability and veteran's services. Under this bill, 
Governors

[[Page 10912]]

are permitted to divert unlimited funds from already depleted adult 
education, vocational rehabilitation, and veteran's services resources 
to fund infrastructure and administrative costs.
  I also oppose H.R. 1261 because its provisions permit overt 
discrimination. Under current law, faith-based organizations are 
eligible to receive Federal funds on the condition that they do not 
discriminate. Under H.R. 1261, the nondiscriminatory requirement is 
removed. H.R. 1261 would permit faith-based organizations that receive 
Federal funds under this act to hire or fire employees based on their 
religion.
  H.R. 1261 is also a bad bill because it compounds the problems 
wrought by our struggling economy. H.R. 1261 eliminates funding for 
dislocated workers and other vulnerable Americans. Under this bill, 
funding for services to dislocated workers and employment services 
would be consolidated into a block grant. This is very poorly timed 
legislation.
  President Bush is calling for more than $700 million in cuts to job 
training programs for fiscal years 2003 and 2004. More than 2 million 
jobs have been lost in the last two years, more than 500,000 have been 
lost in the last 3 months. In Houston, where I am proud to call home, 
the unemployment rate is currently over 6 percent, a full percentage 
point higher than last year.
  H.R. 1261 also caps funding for in-school youths and threatens to 
diminish valuable services that help these students overcome obstacles, 
complete high school, and succeed in the workforce. Under the current 
funding system, various at-risk youths received financial 
accommodation. The funding of those youth programs would be severely 
altered by the restrictive 30 percent cap.
  Mr. Chairman, I oppose H.R. 1261. I want to stress that I am not 
alone in my opposition to this bill. H.R. 1261 is also opposed by the 
Paralyzed Veteran's of America, the AFL-CIO, the Communication's 
Workers of America, the National Rehabilitation Coalition, the Baptist 
Joint Committee on Public Affairs, and the American Jewish Committee. 
This bill cuts funding to valuable programs and allocates Federal funds 
to organizations given license to discriminate. I oppose this H.R. 1261 
and I urge my colleagues to do the same.
  Mr. BOEHNER. Mr. Chairman, I yield back the balance of my time.
  The CHAIRMAN. All time for general debate has expired.
  Pursuant to the rule, the committee amendment in the nature of a 
substitute printed in the bill shall be considered as the original bill 
for the purpose of amendment under the 5-minute rule and shall be 
considered read.
  The text of the committee amendment in the nature of a substitute is 
as follows:

                               H.R. 1261

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Workforce Reinvestment and 
     Adult Education Act of 2003''.

     SEC. 2. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. References.

 TITLE I--AMENDMENTS TO TITLE I OF THE WORKFORCE INVESTMENT ACT OF 1998

Sec. 101. Definitions.
Sec. 102. Purpose.
Sec. 103. State workforce investment boards.
Sec. 104. State plan.
Sec. 105. Local workforce investment areas.
Sec. 106. Local workforce investment boards.
Sec. 107. Local plan.
Sec. 108. Establishment of one-stop delivery systems.
Sec. 109. Eligible providers of training services.
Sec. 110. Eligible providers of youth activities.
Sec. 111. Youth activities.
Sec. 112. Comprehensive program for adults.
Sec. 113. Performance accountability system.
Sec. 114. Authorization of appropriations.
Sec. 115. Job Corps.
Sec. 116. Native American programs.
Sec. 117. Youth challenge grants.
Sec. 118. Technical assistance.
Sec. 119. Demonstration, pilot, multiservice, research and multistate 
              projects.
Sec. 120. Evaluations.
Sec. 121. Authorization of appropriations for national activities.
Sec. 122. Requirements and restrictions.
Sec. 123. Nondiscrimination.
Sec. 124. Administrative provisions.
Sec. 125. General program requirements.

                       Title II--ADULT EDUCATION

        Part A--Adult Basic Skills and Family Literacy Education

Sec. 201. Table of contents.
Sec. 202. Amendment.

                Part B--National Institute for Literacy

Sec. 211. Short title; purpose.
Sec. 212. Establishment.
Sec. 213. Administration.
Sec. 214. Duties.
Sec. 215. Leadership in scientifically based reading instruction.
Sec. 216. National Institute for Literacy Advisory Board.
Sec. 217. Gifts, bequests, and devises.
Sec. 218. Mails.
Sec. 219. Applicability of certain civil service laws.
Sec. 220. Experts and consultants.
Sec. 221. Report.
Sec. 222. Definitions.
Sec. 223. Authorization of appropriations.
Sec. 224. Reservation.
Sec. 225. Authority to publish.

             Title III--AMENDMENTS TO THE WAGNER-PEYSER ACT

Sec. 301. Amendments to the Wagner-Peyser Act.

         Title IV--AMENDMENTS TO THE REHABILITATION ACT OF 1973

Sec. 401. Chairperson.
Sec. 402. Rehabilitation Services Administration.
Sec. 403. Director.
Sec. 404. State goals.
Sec. 405. Authorizations of appropriations.
Sec. 406. Helen Keller National Center Act.

                 Title V--TRANSITION AND EFFECTIVE DATE

Sec. 501. Transition provisions.
Sec. 502. Effective date.

     SEC. 3. REFERENCES.

       Except as otherwise expressly provided, wherever in this 
     Act an amendment or repeal is expressed in terms of an 
     amendment to, or repeal of, a section or other provision, the 
     amendment or repeal shall be considered to be made to a 
     section or other provision of the Workforce Investment Act of 
     1998 (20 U.S.C. 9201 et seq.).

 TITLE I--AMENDMENTS TO TITLE I OF THE WORKFORCE INVESTMENT ACT OF 1998

     SEC. 101. DEFINITIONS.

       Section 101 (29 U.S.C. 2801) is amended--
       (1) in paragraph (8)(C), by striking ``not less than 50 
     percent of the cost of the training'' and inserting ``a 
     significant portion of the cost of training, as determined by 
     the local board'';
       (2) by striking paragraph (13) and redesignating paragraphs 
     (1) through (12) as paragraphs (2) through (13) respectively;
       (3) by inserting the following new paragraph after ``In 
     this title:'':
       ``(1) Accrued expenditures.--The term `accrued 
     expenditures' includes the sum of actual cash disbursements 
     for direct charges for goods and services, the net increase 
     or decrease in the amounts owed by recipients, goods and 
     other property received for services performed by employees, 
     contractors, subgrantees, or other payees, and other amounts 
     becoming owned for which no current service or performance is 
     required.'';
       (4) by striking paragraph (24) and redesignating paragraphs 
     (25) through (32) as paragraphs (24) through (31), 
     respectively;
       (5) in paragraph (24) (as so redesignated)--
       (A) in subparagraph (B), by striking ``higher of--'' and 
     all that follows through such subparagraph and inserting 
     ``poverty line for an equivalent period;''; and
       (B) by redesignating subparagraphs (D) through (F) as 
     subparagraph (E) through (G), respectively, and inserting 
     after subparagraph (C) the following:
       ``(D) receives or is eligible to receive free or reduced 
     price lunch;''; and
       (6) by striking paragraph (33) and redesignating paragraphs 
     (34) through (53) as paragraphs (32) through (51), 
     respectively.

     SEC. 102. PURPOSE.

       Section 106 (29 U.S.C. 2811) is amended by inserting at the 
     end the following: ``It is also the purpose of this subtitle 
     to provide workforce investment activities in a manner that 
     promotes the informed choice of participants and actively 
     involves participants in decisions affecting their 
     participation in such activities.''.

     SEC. 103. STATE WORKFORCE INVESTMENT BOARDS.

       (a) Membership.--
       (1) In general.--Section 111(b) (29 U.S.C. 2821(b)) is 
     amended--
       (A) by amending paragraph (1)(C) to read as follows:
       ``(C) representatives appointed by the Governor, who are--
       ``(i)(I) the lead State agency officials with 
     responsibility for the programs and activities that are 
     described in section 121(b) and carried out by one-stop 
     partners;
       ``(II) in any case in which no lead State agency official 
     has responsibility for such a program or activity, a 
     representative in the State with expertise relating to such 
     program or activity; and
       ``(III) if not included under subclause (I), the director 
     of the designated State entity responsible for carrying out 
     title I of the Rehabilitation Act (29 U.S.C. 701 et seq.);
       ``(ii) the State agency officials responsible for economic 
     development;
       ``(iii) representatives of business in the State who--

       ``(I) are owners of businesses, chief executive or 
     operating officers of businesses, and other business 
     executives or employers with optimum policy making or hiring 
     authority, including members of local boards described in 
     section 117(b)(2)(A)(i);
       ``(II) represent businesses with employment opportunities 
     that reflect employment opportunities in the State; and
       ``(III) are appointed from among individuals nominated by 
     State business organizations and business trade associations;

[[Page 10913]]

       ``(iv) chief elected officials (representing both cities 
     and counties, where appropriate);
       ``(v) representatives of labor organizations, who have been 
     nominated by State labor federations; and
       ``(vi) such other representatives and State agency 
     officials as the Governor may designate.''; and
       (B) in paragraph (3), by striking ``paragraph (1)(C)(i)'' 
     and inserting ``paragraph (1)(C)(iii)''.
       (2) Conforming amendment.--Section 111(c) (29 U.S.C 
     2811(c)) is amended by striking ``subsection (b)(1)(C)(i)'' 
     and inserting ``subsection (b)(1)(C)(iii)''.
       (b) Functions.--Section 111(d) (29 U.S.C. 2811(d)) is 
     amended--
       (1) by amending paragraph (3) to read as follows:
       ``(3) development and review of statewide policies 
     affecting the integrated provision of services through the 
     one-stop delivery system described in section 121, 
     including--
       ``(A) the development of criteria for, and the issuance of, 
     certifications of one-stop centers;
       ``(B) the criteria for the allocation of one-stop center 
     infrastructure funding under section 121(h), and oversight of 
     the use of such funds;
       ``(C) approaches to facilitating equitable and efficient 
     cost allocation in one-stop delivery systems; and
       ``(D) such other matters that may promote statewide 
     objectives for, and enhance the performance of, one-stop 
     delivery systems within the State;'';
       (2) in paragraph (4), by inserting ``and the development of 
     State criteria relating to the appointment and certification 
     of local boards under section 117'' after ``section 116'';
       (3) in paragraph (5), by striking ``sections 128(b)(3)(B) 
     and 133(b)(3)(B)'' and inserting ``sections 128(b)(3) and 
     133(b)(3)''; and
       (4) in paragraph (9), by striking ``section 503'' and 
     inserting ``section 136(i)''.
       (c) Elimination of Alternative Entity and Provision of 
     Authority to Hire Staff.--Section 111(e) (29 U.S.C. 2821(e)) 
     is amended to read as follows:
       ``(e) Authority to Hire Staff.--The State board may hire 
     staff to assist in carrying out the functions described in 
     subsection (d).''.

     SEC. 104. STATE PLAN.

       (a) Planning Cycle.--Section 112(a) (29 U.S.C. 2822(a)) is 
     amended by striking ``5-year strategy'' and inserting ``2-
     year strategy''.
       (b) Contents.--Section 112(b)(17)(A) (29 U.S.C. 
     2822(b)(17)(A)) is amended--
       (1) in clause (iii) by striking ``and'';
       (2) by amending clause (iv) to read as follows:
       ``(iv) how the State will serve the employment and training 
     needs of dislocated workers (including displaced homemakers 
     and formerly self-employed and transitioning farmers, 
     ranchers, and fisherman) low income individuals (including 
     recipients of public assistance), homeless individuals, ex-
     offenders, individuals training for nontraditional 
     employment, and other individuals with multiple barriers to 
     employment (including older individuals);''; and
       (3) by adding the following new clause after clause (iv):
       ``(v) how the State will serve the employment and training 
     needs of individuals with disabilities, consistent with 
     section 188 and Executive Order 13217 (relating to community-
     based alternatives for individuals with disabilities) 
     including the provision of outreach, intake, assessments, and 
     service delivery, the development of performance measures, 
     and the training of staff; and''.
       (c) Modification to Plan.--Section 112(d) (29 U.S.C. 
     2822(d)) is amended by striking ``5-year period'' and 
     inserting ``2-year period''.

     SEC. 105. LOCAL WORKFORCE INVESTMENT AREAS.

       (a) Designation of Areas.--
       (1) Considerations.--Section 116(a)(1)(B) (29 U.S.C. 
     2831(a)(1)(B)) is amended by adding at the end the following 
     clause:
       ``(vi) The extent to which such local areas will promote 
     efficiency in the administration and provision of 
     services.''.
       (2) Automatic designation.--Section 116(a)(2) (29 U.S.C. 
     2831(a)(2)) is amended to read as follows:
       ``(2) Automatic designation.--
       ``(A) In general.--Except as provided in subparagraph (B) 
     of this paragraph and subsection (b), the Governor shall 
     approve a request for designation as a local area from--
       ``(i) any unit of general local government with a 
     population of 500,000 or more; and
       ``(ii) an area served by a rural concentrated employment 
     program grant recipient that served as a service delivery 
     area or substate area under the Job training Partnership Act 
     (29 U.S.C. 1501 et seq.),

     for the 2-year period covered by a State plan under section 
     112 if such request is made not later than the date of the 
     submission of the State plan.
       ``(B) Continued designation based on performance.--The 
     Governor may deny a request for designation submitted 
     pursuant to subparagraph (A) if such unit of government was 
     designated as a local area for the preceding 2-year period 
     covered by a State plan and the Governor determines that such 
     local area did not perform successfully during such 
     period.''.
       (b) Regional Planning.--Section 116(c)(1) (29 U.S.C. 
     2831(c)(1)) is amended by adding at the end the following: 
     ``The State may require the local boards for the designated 
     region to prepare a single regional plan that incorporates 
     the elements of the local plan under section 118 and that is 
     submitted and approved in lieu of separate local plans under 
     such section.''.

     SEC. 106. LOCAL WORKFORCE INVESTMENT BOARDS.

       (a) Composition.--Section 117(b)(2)(A) (29 U.S.C. 
     2832(b)(2)(A)) is amended--
       (1) in clause (i)(II), by inserting ``, businesses that are 
     in the leading industries in the local area, and large and 
     small businesses in the local area'' after ``local area'';
       (2) by amending clause (ii) to read as follows:
       ``(ii) superintendents of the local secondary school 
     systems and the presidents or chief executive officers of 
     postsecondary educational institutions (including community 
     colleges, where such entities exist);'';
       (3) in clause (iv), by striking the semicolon and inserting 
     ``and faith-based organizations; and''; and
       (4) by striking clause (vi).
       (b) Authority of Board Members.--Section 117(b)(3) (29 
     U.S.C. 2832(b) is amended--
       (1) in the heading, by inserting ``and representation'' 
     after ``members''; and
       (2) by adding at the end the following: ``The members of 
     the board shall represent diverse geographic sections within 
     the local area.''.
       (c) Functions.--Section 117(d) (29 U.S.C. 2832(d)) is 
     amended--
       (1) in paragraph (2)(B), by striking ``local area'' and all 
     that follows and inserting ``local area.''; and
       (2) in paragraph (4) by inserting ``and ensure the 
     appropriate use and management of the funds provided under 
     this title for such programs, activities, and system'' after 
     ``area''.
       (d) Authority to Establish Councils and Elimination of 
     Requirement for Youth Councils.--Section 117(h) (29 U.S.C. 
     2832(h)) is amended to read as follows:
       ``(h) Establishment of Councils.--The local board may 
     establish councils to provide information and advice to 
     assist the local board in carrying out activities under this 
     title. Such councils may include a council composed of one-
     stop partners to advise the local board on the operation of 
     the one-stop delivery system, a youth council composed of 
     experts and stakeholders in youth programs to advise the 
     local board on activities for youth, and such other councils 
     as the local board determines are appropriate.''.
       (e) Repeal of Alternative Entity Provision.--Section 117 
     (29 U.S.C. 2832) is further amended by striking subsection 
     (i).

     SEC. 107. LOCAL PLAN.

       (a) Planning Cycle.--Section 118(a) (29 U.S.C. 2833(a)) is 
     amended by striking ``5-year'' and inserting ``2-year''.
       (b) Contents.--Section 118(b) (29 U.S.C. 2833(b)) is 
     amended--
       (1) by amending paragraph (2) to read as follows:
       ``(2) a description of the one-stop delivery system to be 
     established or designated in the local area, including a 
     description of how the local board will ensure the continuous 
     improvement of eligible providers of services through the 
     system and ensure that such providers meets the employment 
     needs of local employers and participants.''; and
       (2) in paragraph (4), by striking ``and dislocated 
     worker''.

     SEC. 108. ESTABLISHMENT OF ONE-STOP DELIVERY SYSTEMS.

       (a) One-Stop Partners.--Section 121(b)(2)(B) (29 U.S.C. 
     2841(b)(2)(B)) is amended--
       (1) in clause (iv) by striking ``and'' at the end;
       (2) in clause (v) by striking the period and inserting a 
     semicolon; and
       (3) by adding at the end the following new clauses:
       ``(vi) employment and training programs administered by the 
     Social Security Administration, including the Ticket to Work 
     program (established by Public Law 106-170);
       ``(vii) programs under part D of title IV of the Social 
     Security Act (42 U.S.C. 451 et seq.) (relating to child 
     support enforcement); and
       ``(viii) programs carried out in the local area for 
     individuals with disabilities, including programs carried out 
     by State agencies relating to mental health, mental 
     retardation, and developmental disabilities, State Medicaid 
     agencies, State Independent Living Councils, and Independent 
     Living Centers.''.
       (b) Provision of Services.--Subtitle B of title I is 
     amended--
       (1) by striking subsection (e) of section 121;
       (2) by moving subsection (c) of section 134 from section 
     134, redesignating such subsection as subsection (e), and 
     inserting such subsection (as so redesignated) after 
     subsection (d) of section 121; and
       (3) by amending subsection (e) (as moved and redesignated 
     by paragraph (2))--
       (A) in paragraph (1)(A), by striking ``subsection (d)(2)'' 
     and inserting ``section 134(c)(2)'';
       (B) in paragraph (1)(B)--
       (i) by striking ``subsection (d)'' and inserting ``section 
     134(c)''; and
       (ii) by striking ``subsection (d)(4)(G)'' and inserting 
     ``section 134(c)(4)(G)'';
       (C) in paragraph (1)(C), by striking ``subsection (e)'' and 
     inserting ``section 134(d)'';
       (D) in paragraph (1)(D)--
       (i) by striking ``section 121(b)'' and inserting 
     ``subsection (b)''; and
       (ii) by striking ``and'' at the end; and
       (E) by amending paragraph (1)(E) to read as follows:
       ``(E) shall provide access to the information described in 
     section 15(e) of the Wagner-Peyser Act (29 U.S.C. 49l-
     2(e)).''.
       (c) Certification and Funding of One-Stop Centers.--Section 
     121 (as amended by subsection (b)) is further amended by 
     adding at the end the following new subsections:
       ``(g) Certification of One-Stop Centers.--
       ``(1) In general.--The State board shall establish 
     procedures and criteria for periodically

[[Page 10914]]

     certifying one-stop center for the purpose of awarding the 
     one-stop infrastructure funding described in subsection (h).
       ``(2) Criteria.--The criteria for certification under this 
     subsection shall include minimum standards relating to the 
     scope and degree of service integration achieved by the 
     centers involving the programs provided by the one-stop 
     partners.
       ``(3) Effect of certification.--One-stop centers certified 
     under this subsection shall be eligible to receive the 
     infrastructure grants authorized under subsection (h).
       ``(h) One-Stop Infrastructure Funding.--
       ``(1) Partner contributions.--
       ``(A) Provision of funds.--Notwithstanding any other 
     provision of law, as determined under subparagraph (B), a 
     portion of the Federal funds provided to the State and areas 
     within the State under the Federal laws authorizing the one-
     stop partner programs described in subsection (b) for a 
     fiscal year shall be provided to the Governor by such 
     programs to carry out this subsection.
       ``(B) Determination.--The portion of funds to be provided 
     under subparagraph (A) by each one-stop partner shall be 
     determined by the Governor, after consultation with the State 
     board.
       ``(2) Allocation by governor.--From the funds provided 
     under paragraph (1), the Governor shall allocate funds to 
     local areas for the purposes of assisting in paying the costs 
     of the infrastructure of One-Stop centers certified under 
     subsection (g).
       ``(3) Allocation formula.--The State board shall develop a 
     formula to be used by the Governor to allocate the funds 
     described in paragraph (1). The formula shall include such 
     factors as the State board determines are appropriate, which 
     may include factors such as the number of centers in the 
     local area that have been certified, the population served by 
     such centers, and the performance of such centers.
       ``(4) Costs of infrastructure.--For purposes of this 
     subsection, the term `costs of infrastructure' means the 
     nonpersonnel costs that are necessary for the general 
     operation of a one-stop center, including the rental costs of 
     the facilities, the costs of utilities and maintenance, 
     equipment (including adaptive technology for individuals with 
     disabilities), strategic planning activities for the center, 
     and common outreach activities.
       ``(i) Other Funds.--
       ``(1) In general.--In addition to the funds provided to 
     carry out subsection (h), a portion of funds made available 
     under Federal law authorizing the one-stop partner programs 
     described in subsection (b) shall be used to pay the costs 
     relating to the operation of the one-stop delivery system 
     that are not paid for from the funds provided under 
     subsection (h), to the extent not inconsistent with the 
     Federal law involved including--
       ``(A) infrastructure costs that are in excess of the funds 
     provided under subsection (h);
       ``(B) common costs that are in addition to the costs of 
     infrastructure; and
       ``(C) the costs of the provision of core services 
     applicable to each program.
       ``(2) Determination and guidance.--The method for 
     determining the appropriate portion of funds to be provided 
     by each program under paragraph (1) shall be determined as 
     part of the memorandum of understanding under subsection (c). 
     The State board shall provide guidance to facilitate the 
     determination of appropriate funding allocation in local 
     areas.''.

     SEC. 109. ELIGIBLE PROVIDERS OF TRAINING SERVICES.

       Section 122 (29 U.S.C. 2842) is amended to read as follows:

     ``SEC. 122. IDENTIFICATION OF ELIGIBLE PROVIDERS OF TRAINING 
                   SERVICES.

       ``(a) In General.--The Governor shall establish criteria 
     and procedures regarding the eligibility of providers of 
     training services described in section 134(c)(4) to receive 
     funds provided under section 133(b) for the provision of such 
     training services.
       ``(b) Criteria.--
       ``(1) In general.--The criteria established pursuant to 
     subsection (a) shall take into account the performance of 
     providers of training services with respect to the indicators 
     described in section 136 or other appropriate indicators 
     (taking into consideration the characteristics of the 
     population served and relevant economic conditions), and such 
     other factors as the Governor determines are appropriate to 
     ensure the quality of services, the accountability of 
     providers, and the informed choice of participants under 
     chapter 5. Such criteria shall require that the provider 
     submit appropriate, accurate and timely information to the 
     State for purposes of carrying out subsection (d). The 
     criteria shall also provide for periodic review and renewal 
     of eligibility under this section for providers of training 
     services. The Governor may authorize local areas in the State 
     to establish additional criteria or to modify the criteria 
     established by the Governor under this section for purposes 
     of determining the eligibility of providers of training 
     services to provide such services in the local area.
       ``(2) Limitation.--In carrying out the requirements of this 
     subsection, no personally identifiable information regarding 
     a student, including Social Security number, student 
     identification number, or other identifier, may be disclosed 
     without the prior written consent of the parent or eligible 
     student in compliance with section 444 of the General 
     Education Provisions Act (20 U.S.C. 1232g).
       ``(c) Procedures.--The procedures established under 
     subsection (a) shall identify the application process for a 
     provider of training services to become eligible to receive 
     funds under section 133(b), and identify the respective roles 
     of the State and local areas in receiving and reviewing 
     applications and in making determinations of eligibility 
     based on the criteria established under this section. The 
     procedures shall also establish a process for a provider of 
     training services to appeal a denial or termination of 
     eligibility under this section that includes an opportunity 
     for a hearing and prescribes appropriate time limits to 
     ensure prompt resolution of the appeal.
       ``(d) Information to Assist Participants in Choosing 
     Providers.--In order to facilitate and assist participants 
     under chapter 5 in choosing providers of training services, 
     the Governor shall ensure that an appropriate list or lists 
     of providers determined eligible under this section in the 
     State, accompanied by such information as the Governor 
     determines is appropriate, is provided to the local boards in 
     the State to be made available to such participants and to 
     members of the public through the one-stop delivery system in 
     the State.
       ``(e) Agreements With Other States.--States may enter into 
     agreements, on a reciprocal basis, to permit eligible 
     providers of training services to accept individual training 
     accounts provided in another State.
       ``(f) Recommendations.--In developing the criteria, 
     procedures, and information required under this section, the 
     Governor shall solicit and take into consideration the 
     recommendations of local boards and providers of training 
     services within the State.
       ``(g) Opportunity to Submit Comments.--During the 
     development of the criteria, procedures, and information 
     required under this section, the Governor shall provide an 
     opportunity for interested members of the public, including 
     representatives of business and labor organizations, to 
     submit comments regarding such criteria, procedures, and 
     information.''.

     SEC. 110. ELIGIBLE PROVIDERS OF YOUTH ACTIVITIES.

       Section 123 (29 U.S.C. 2843) and the item relating to such 
     section in the table of contents are repealed.

     SEC. 111. YOUTH ACTIVITIES.

       (a) State Allotments.--
       (1) In general.--Section 127(a) (29 U.S.C. 2852(a)) is 
     amended to read as follows:
       ``(a) Allotment Among States.--
       ``(1) Youth activities.--
       ``(A) Youth challenge grants.--
       ``(i) Reservation of funds.--Of the amount appropriated 
     under section 137(a) for each fiscal year, the Secretary 
     shall reserve 25 percent to provide youth challenge grants 
     under section 169.
       ``(ii) Limitation.--Notwithstanding clause (i), if the 
     amount appropriated under section 137(a) for a fiscal year 
     exceeds $1,000,000,000, the Secretary shall reserve 
     $250,000,000 to provide youth challenge grants under section 
     169.
       ``(B) Outlying areas and native americans.--After 
     determining the amount to be reserved under subparagraph (A), 
     of the remainder of the amount appropriated under section 
     137(a) for each fiscal year the Secretary shall--
       ``(i) reserve not more than \1/4\ of one percent of such 
     amount to provide assistance to the outlying areas to carry 
     out youth activities and statewide workforce investment 
     activities; and
       ``(ii) reserve not more than 1 and \1/2\ percent of such 
     amount to provide youth activities under section 166 
     (relating to Native Americans).
       ``(C) States.--
       ``(i) In general.--After determining the amounts to be 
     reserved under subparagraphs (A) and (B), the Secretary shall 
     allot the remainder of the amount appropriated under section 
     137(a) for each fiscal year to the States pursuant to clause 
     (ii) for youth activities and statewide workforce investment 
     activities.
       ``(ii) Formula.--Subject to clauses (iii) and (iv), of the 
     remainder--

       ``(I) 33 and \1/3\ percent shall be allotted on the basis 
     of the relative number of high school dropouts who are ages 
     16 through 21 in the State, compared to the total number of 
     high school dropouts who are ages 16 through 21 in all 
     States;
       ``(II) 33 and \1/3\ percent shall be allotted on the basis 
     of the relative number of jobless out-of-school youth who are 
     ages 16 through 21 in the State, compared to the total number 
     of jobless out-of-school youth who are ages 16 through 21 in 
     all States; and
       ``(III) 33 and \1/3\ percent shall be allotted on the basis 
     of the relative number of disadvantaged youth who are ages 16 
     through 21 in the State, compared to the total number of 
     disadvantaged youth who are ages 16 through 21 in all States.

       ``(iii) Minimum and maximum percentages.--The Secretary 
     shall ensure that no State shall receive an allotment for a 
     fiscal year that is less than 90 percent or greater than 130 
     percent of the allotment percentage of that State for the 
     preceding fiscal year.
       ``(iv) Small state minimum allotment.--Subject to clause 
     (iii), the Secretary shall ensure that no State shall receive 
     an allotment under this paragraph that is less than \3/10\ of 
     1 percent of the amount available under subparagraph (A).
       ``(2) Definitions.--For the purposes of paragraph (1), the 
     following definitions apply:
       ``(A) Allotment percentage.--The term `allotment 
     percentage', used with respect to fiscal year 2004 or a 
     subsequent fiscal year, means a percentage of the remainder 
     described in paragraph (1)(C)(i) that is received through an 
     allotment made under this subsection for the fiscal

[[Page 10915]]

     year. The term, with respect to fiscal year 2003, means the 
     percentage of the amounts allotted to States under this 
     chapter (as in effect on the day before the date of enactment 
     of the Workforce Reinvestment and Adult Education Act of 
     2003) that is received by the State involved for fiscal year 
     2003.
       ``(B) Disadvantaged youth.--The term `disadvantaged youth' 
     means an individual who is age 16 through 21 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 poverty line.
       ``(C) Number of high school dropouts.--The term `number of 
     high school dropouts' means the number of high school 
     dropouts as is determined by the Secretary based on the 
     Current Population Survey.
       ``(D) Number of jobless out-of-school youth.--The term 
     `number of jobless out-of-school youth' means the number of 
     jobless out-of-school youth as is determined by the Secretary 
     based on the Current Population Survey.
       ``(3) Special rule.--For purposes of the formula specified 
     in paragraph (1)(C), the Secretary shall, as appropriate and 
     to the extent practicable, exclude college students and 
     members of the Armed Forces from the determination of the 
     number of disadvantaged youth.
       ``(4) Minimum allotment.--Notwithstanding any other 
     provision of this section, no State shall receive an 
     allotment under this section that is less than the amount 
     received by such State for fiscal year 2003.''.
       (2) Reallotment.--Section 127 (29 U.S.C. 2552) is further 
     amended--
       (A) by striking subsection (b);
       (B) by redesignating subsection (c) as subsection (b);
       (C) in subsection (b) (as so redesignated)
       (i) by amending paragraph (2) to read as follows:
       ``(2) Amount.--The amount available for reallotment for a 
     program year is equal to the amount by which the unexpended 
     balance, excluding accrued expenditures, at the end of such 
     program year of the total amount of funds available to the 
     State under this section during such program year (including 
     amounts allotted to the State in prior program years that 
     remain available during the program year for which the 
     determination is made) exceeds 30 percent of such total 
     amount.'';
       (ii) in paragraph (3)--

       (I) by striking ``for the prior program year'' and 
     inserting ``for the program year in which the determination 
     is made''; and
       (II) by striking ``such prior program year'' and inserting 
     ``such program year'';

       (iii) by amending paragraph (4) to read as follows:
       ``(4) Eligibility.--For purposes of this subsection, an 
     eligible State means a State which does not have an amount 
     available for reallotment under paragraph (2) for the program 
     year for which the determination under paragraph (2) is 
     made.''.
       (b) Within State Allocations.--
       (1) Reservation for statewide activities.--Section 128(a) 
     is amended to read as follows:
       ``(a) Reservation for Statewide Activities.--
       ``(1) In general.--The Governor of a State shall reserve 
     not more than 10 percent of the amount allotted to the State 
     under section 127(a)(1)(C) for a fiscal year for statewide 
     activities.
       ``(2) Use of funds.--Regardless of whether the amounts are 
     allotted under section 127(a)(1)(C) and reserved under 
     paragraph (1) or allotted under section 132 and reserved 
     under section 133(a), the Governor may use the reserved 
     amounts to carry out statewide youth activities under section 
     129(b) or statewide employment and training activities under 
     section 133.''.
       (2) Within state allocation.--Section 128(b) is amended to 
     read as follows:
       ``(b) Within State Allocation.--
       ``(1) In general.--Of the amounts allotted to the State 
     under section 127(a)(1)(C) and not reserved under subsection 
     (a)(1)--
       ``(A) 80 percent of such amounts shall be allocated by the 
     Governor to local areas in accordance with paragraph (2); and
       ``(B) 20 percent of such amounts shall be allocated by the 
     Governor to local areas in accordance with paragraph (3).
       ``(2) Established formula.--
       ``(A) In general.--Of the amounts described in paragraph 
     (1)(A), the Governor shall allocate--
       ``(i) 33 and \1/3\ percent on the basis of the relative 
     number of high school dropouts who are ages 16 through 21 in 
     each local area, compared to the total number of high school 
     dropouts who are ages 16 through 21 in all local areas in the 
     State;
       ``(ii) 33 and \1/3\ percent on the basis of the relative 
     number of jobless out-of-school youth who are ages 16 through 
     21 in each local area, compared to the total number of 
     jobless out-of-school youth who are ages 16 through 21 in all 
     local areas in the State; and
       ``(iii) 33 and \1/3\ percent on the basis of the relative 
     number of disadvantaged youth who are ages 16 through 21 in 
     each local area, compared to the total number of 
     disadvantaged youth who are ages 16 through 21 in all local 
     areas in the State.
       ``(B) Minimum and maximum percentages.--The Governor shall 
     ensure that no local area shall receive an allocation for a 
     fiscal year under this paragraph that is less than 90 percent 
     or greater than 130 percent of the allocation percentage of 
     the local area for the preceding fiscal year.
       ``(C) Definitions.--
       ``(i) Allocation percentage.--For purposes of this 
     paragraph, the term `allocation percentage', used with 
     respect to fiscal year 2004 or a subsequent fiscal year, 
     means a percentage of amount described in paragraph(1)(A) 
     that is received through an allocation made under this 
     paragraph for the fiscal year. The term, with respect to 
     fiscal year 2003, means the percentage of the amounts 
     allocated to local areas under this chapter (as in effect on 
     the day before the date of enactment of the Workforce 
     Investment Act Amendments of 2003) that is received by the 
     local area involved for fiscal year 2003.
       ``(ii) Other terms.--For purposes of this paragraph, all 
     other terms shall have the meaning given such terms in 
     section 127(a)(2).
       ``(3) Youth discretionary allocation.--The Governor shall 
     allocate to local areas the amounts described in paragraph 
     (1)(B) in accordance with such demographic and economic 
     factors as the Governor, after consultation with the State 
     board and local boards, determines are appropriate.
       ``(4) Local administrative cost limit.--
       ``(A) In general.--Of the amounts allocated to a local area 
     under this subsection and section 133(b) for a fiscal year, 
     not more than 10 percent of the amount may be used by the 
     local boards for the administrative costs of carrying out 
     local workforce investment activities under this chapter or 
     chapter 5.
       ``(B) Use of funds.--Funds made available for 
     administrative costs under subparagraph (A) may be used for 
     the administrative costs of any of the local workforce 
     investment activities described in this chapter or chapter 5, 
     regardless of whether the funds were allocated under this 
     subsection or section 133(b).''.
       (3) Reallocation.--Section 128(c) (29 U.S.C. 2853(c)) is 
     amended--
       (A) in paragraph (1), by striking ``paragraph (2)(A) or (3) 
     of'';
       (B) by amending paragraph (2) to read as follows:
       ``(2) Amount.--The amount available for reallocation for a 
     program year is equal to the amount by which the unexpended 
     balance, excluding accrued expenditures, at the end of such 
     program year of the total amount of funds available to the 
     local area under this section during such program year 
     (including amounts allotted to the local area in prior 
     program years that remain available during the program year 
     for which the determination is made) exceeds 30 percent of 
     such total amount.'';
       (C) by amending paragraph (3)--
       (i) by striking ``subsection (b)(3)'' each place it appears 
     and inserting ``subsection (b)'';
       (ii) by striking ``the prior program year'' and inserting 
     ``the program year in which the determination is made'';
       (iii) by striking ``such prior program year'' and inserting 
     ``such program year''; and
       (iv) by striking the last sentence; and
       (D) by amending paragraph (4) to read as follows:
       ``(4) Eligibility.--For purposes of this subsection, an 
     eligible local area means a local area which does not have an 
     amount available for reallocation under paragraph (2) for the 
     program year for which the determination under paragraph (2) 
     is made.''.
       (c) Youth Participant Eligibility.--Section 129(a) (29 
     U.S.C. 2854(a)) is amended to read as follows:
       ``(a) Youth Participant Eligibility.--
       ``(1) In general.--The individuals participating in 
     activities carried out under this chapter by a local area 
     during any program year shall be individuals who, at the time 
     the eligibility determination is made, are--
       ``(A) not younger than age 16 or older than age 21; and
       ``(B) one or more of the following:
       ``(i) school dropouts;
       ``(ii) recipients of a secondary school diploma or the 
     General Equivalency Diploma (GED) (including recognized 
     alternative standards for individuals with disabilities);
       ``(iii) court-involved youth attending an alternative 
     school;
       ``(iv) youth in foster care or who have been in foster 
     care; or
       ``(v) in school youth who are low-income individuals and 
     one or more of the following:

       ``(I) Deficient in literacy skills.
       ``(II) Homeless, runaway, or foster children.
       ``(III) Pregnant or parents.
       ``(IV) Offenders.
       ``(V) Individuals who require additional assistance to 
     complete an educational program, or to secure and hold 
     employment.

       ``(2) Priority for school dropouts.--A priority in the 
     provision of services under this chapter shall be given to 
     individuals who are school dropouts.
       ``(3) Limitations on activities for in-school youth.--
       ``(A) Percentage of funds.--For any program year, not more 
     than 30 percent of the funds available for statewide 
     activities under subsection (b), and not more than 30 percent 
     of funds available to local areas under subsection (c), may 
     be used to provide activities for in-school youth meeting the 
     requirements of paragraph (1)(B)(v).
       ``(B) Non-school hours required.--Activities carried out 
     under this chapter for in-school youth meeting the 
     requirements of paragraph (1)(B)(v) shall only be carried out 
     in non-school hours or periods when school is not in session 
     (such as before and after school or during summer recess.''.
       (d) Statewide Youth Activities.--Section 129(b) (29 U.S.C. 
     2854(b)) is amended to read as follows:

[[Page 10916]]

       ``(b) Statewide Activities.--
       ``(1) In general.--Funds reserved by a Governor for a State 
     as described in sections 128(a) and 133(a)(1) may be used for 
     statewide activities including--
       ``(A) additional assistance to local areas that have high 
     concentrations of eligible youth;
       ``(B) supporting the provision of core services described 
     in section 134(c)(2) in the one-stop delivery system;
       ``(C) conducting evaluations under section 136(e) of 
     activities authorized under this chapter and chapter 5 in 
     coordination with evaluations carried out by the Secretary 
     under section 172, research, and demonstration projects;
       ``(D) providing incentive grants to local areas for 
     regional cooperation among local boards (including local 
     boards in a designated region as described in section 
     116(c)), for local coordination of activities carried out 
     under this Act, and for exemplary performance by local areas 
     on the local performance measures;
       ``(E) providing technical assistance and capacity building 
     to local areas, one-stop operators, one-stop partners, and 
     eligible providers, including the development and training of 
     staff, the development of exemplary program activities, and 
     the provision of technical assistance to local areas that 
     fail to meet local performance measures;
       ``(F) operating a fiscal and management accountability 
     system under section 136(f); and
       ``(G) carrying out monitoring and oversight of activities 
     under this chapter and chapter 5.
       ``(2) Limitation.--Not more than 5 percent of the funds 
     allotted under section 127(b) shall be used by the State for 
     administrative activities carried out under this subsection 
     and section 133(a).
       ``(3) Prohibition.--No funds described in this subsection 
     or in section 134(a) may be used to develop or implement 
     education curricula for school systems in the State.''.
       (e) Local Elements and Requirements.--
       (1) Program design.--Section 129(c)(1) (29 U.S.C. 2854(c) 
     (1)) is amended--
       (A) in the matter preceding subparagraph (A), by striking 
     ``paragraph (2)(A) or (3), as appropriate, of'';
       (B) in subparagraph (B), by inserting ``are directly linked 
     to one or more of the performance outcomes relating to this 
     chapter under section 136, and that'' after ``for each 
     participant that''; and
       (C) in subparagraph (C)--
       (i) by redesignating clauses (i) through (iv) as clauses 
     (ii) through (v), respectively;
       (ii) by inserting before clause (ii) (as so redesignated) 
     the following:
       ``(i) activities leading to the attainment of a secondary 
     school diploma or the General Equivalency Diploma (GED) 
     (including recognized alternative standards for individuals 
     with disabilities);'';
       (iii) in clause (ii) (as redesignated by this 
     subparagraph), by inserting ``and advanced training'' after 
     ``opportunities'';
       (iv) in clause (iii) (as redesignated by this 
     subparagraph), by inserting ``that lead to the attainment of 
     recognized credentials'' after ``learning''; and
       (v) by amending clause (v) (as redesignated by this 
     subparagraph) to read as follows:
       ``(v) effective connections to employers in sectors of the 
     local labor market experiencing high growth in employment 
     opportunities.''.
       (2) Program elements.--Section 129(c)(2) (29 U.S.C. 
     2854(c)(2)) is amended--
       (A) in subparagraph (A), by striking ``secondary school, 
     including dropout prevention strategies'' and inserting 
     ``secondary school diploma or the General Equivalency Diploma 
     (GED) (including recognized alternative standards for 
     individuals with disabilities), including dropout prevention 
     strategies'';
       (B) in subparagraph (I), by striking ``and'' at the end;
       (C) in subparagraph (J), by striking the period at the end 
     and inserting a semicolon; and
       (D) by adding at the end the following:
       ``(K) on-the-job training opportunities; and
       ``(L) financial literacy skills.''.
       (3) Additional requirements.--Section 129(c)(3)(A) (29 
     U.S.C. 2854(c)(3)(A)) is amended in the matter preceding 
     clause (i) by striking ``or applicant who meets the minimum 
     income criteria to be considered an eligible youth'';
       (4) Priority and exceptions.--Section 129(c) (29 U.S.C. 
     2854(c)) is further amended--
       (A) by striking paragraphs (4) and (5);
       (B) by redesignating paragraph (6) as paragraph (4);
       (C) by redesignating paragraph (7) as paragraph (5), and in 
     such redesignated paragraph (5) by striking ``youth 
     councils'' and inserting ``local boards''; and
       (D) by redesignating paragraph (8) as paragraph (6).

     SEC. 112. COMPREHENSIVE PROGRAM FOR ADULTS.

       (a) Title of Chapter 5.--
       (1) The title heading of chapter 5 is amended to read as 
     follows:

   ``CHAPTER 5--COMPREHENSIVE EMPLOYMENT AND TRAINING ACTIVITIES FOR 
                               ADULTS''.

       (2) Conforming amendment.--Table of contents in section 
     1(b) is amended by amending the item related to the heading 
     for chapter 5 to read as follows:

   ``Chapter 5--Comprehensive Employment and Training Activities for 
                               Adults''.

       (b) General Authorization.--Section 131 (29 U.S.C. 2861) is 
     amended--
       (1) by striking ``paragraphs (1)(B) and (2)(B)
     of''; and
       (2) by striking ``, and dislocated workers,''.
       (c) State Allotments.--
       (1) In general.--Section 132(a) (29 U.S.C. 2862(a)) is 
     amended to read as follows:
       ``(a) In General.--The Secretary shall--
       ``(1) reserve 10 percent of the amount appropriated under 
     section 137(b) for a fiscal year, of which--
       ``(A) not less than 75 percent shall be used for national 
     dislocated worker grants under section 173;
       ``(B) not more than 20 percent may be used for 
     demonstration projects under section 171; and
       ``(C) not more than 5 percent may be used to provide 
     technical assistance under section 170; and
       ``(2) make allotments from 90 percent of the amount 
     appropriated under section 137(b) for a fiscal year in 
     accordance with subsection (b).''.
       (2) Allotment among states.--Section 132(b) (29 U.S.C. 
     2862(b)) is amended to read as follows:
       ``(b) Allotment Among States for Adult Employment and 
     Training Activities.--
       ``(1) Reservation for outlying areas.--From the amount made 
     available under subsection (a)(2) for a fiscal year, the 
     Secretary shall reserve not more than \1/4\ of 1 percent to 
     provide assistance to outlying areas to carry out employment 
     and training activities for adults and statewide workforce 
     investment activities.
       ``(2) States.--
       ``(A) In general.--After determining the amount to be 
     reserved under paragraph (1), the Secretary shall allot the 
     remainder of the amount referred to under subsection (a)(2) 
     for a fiscal year to the States pursuant to subparagraph (B) 
     for employment and training activities for adults and 
     statewide workforce investment activities.
       ``(B) Formula.--Subject to subparagraphs (C) and (D), of 
     the remainder--
       ``(i) 60 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) 15 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;
       ``(iii) 15 percent shall be allotted on the basis of the 
     relative number of individuals in the civilian labor force in 
     each State, compared to the total number of individuals in 
     the civilian labor force in all States; and
       ``(iv) 10 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.
       ``(C) Minimum and maximum percentages.--The Secretary shall 
     ensure that no State shall receive an allotment for a fiscal 
     year that is less than 90 percent or greater than 130 percent 
     of the allotment percentage of the State for the preceding 
     fiscal year.
       ``(D) Minimum allotment.--Notwithstanding any other 
     provision of this section, no State shall receive an 
     allotment under this section that is less than the amount 
     received by such State for fiscal year 2003.
       ``(E) Small state minimum allotment.--Subject to 
     subparagraph (C), the Secretary shall ensure that no State 
     shall receive an allotment under this paragraph that is less 
     than \3/10\ of 1 percent of the amount available under 
     subparagraph (A).
       ``(F) Definitions.--For the purposes of this paragraph, the 
     following definitions apply:
       ``(i) Allotment percentage.--The term `allotment 
     percentage', used with respect to fiscal year 2004 or a 
     subsequent fiscal year, means a percentage of the remainder 
     described in subparagraph (A) that is received through an 
     allotment made under this paragraph for the fiscal year. The 
     term, with respect to fiscal year 2003, means the percentage 
     of the amounts allotted to States under this chapter (as in 
     effect on the day before the date of enactment of the 
     Workforce Reinvestment and Adult Education Act of 2003) and 
     under section 6 of the Wagner-Peyser Act that is received by 
     the State involved for fiscal year 2003.
       ``(ii) Disadvantaged adult.--The term `disadvantaged adult' 
     means an individual who is age 22 through 72 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 poverty line.
       ``(iii) Excess number.--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) Reallotment.--Section 132(c) (29 U.S.C. 2862(c)) is 
     amended--
       (A) by amending paragraph (2) to read as follows:
       ``(2) Amount.--The amount available for reallotment for a 
     program year is equal to the amount by which the unexpended 
     balance, excluding accrued expenditures, at the end of such 
     program year of the total amount of funds available to the 
     State under this section during such program year (including 
     amounts allotted to the State in prior program years that 
     remain available during the program year for which the 
     determination is made) exceeds 30 percent of such total 
     amount.'';
       (B) in paragraph (3)--
       (i) by striking ``for the prior program year'' and 
     inserting ``for the program year in which the determination 
     is made''; and
       (ii) by striking ``such prior program year'' and inserting 
     ``such program year''; and

[[Page 10917]]

       (C) by amending paragraph (4) to read as follows:
       ``(4) Eligibility.--For purposes of this subsection, an 
     eligible State means a State that does not have an amount 
     available for reallotment under paragraph (2) for the program 
     year for which the determination under paragraph (2) is 
     made.''.
       (d) Within State Allocations.--
       (1) Reservation for state activities.--Section 133(a) (29 
     U.S.C. 2863(a)) is amended to read as follows:
       ``(a) Reservation for Statewide Activities.--The Governor 
     of a State may reserve up to 50 percent of the total amount 
     allotted to the State under section 132 for a fiscal year to 
     carry out the statewide activities described in section 
     134(a).''.
       (2) Allocations to local areas.--Section 133(b) (29 U.S.C. 
     2863(b)) is amended to read as follows:
       ``(b) Allocations to Local Areas.--
       ``(1) In general.--Of the amounts allotted to the State 
     under section 132(b)(2) and not reserved under subsection 
     (a)--
       ``(A) 80 percent of such amounts shall be allocated by the 
     Governor to local areas in accordance with paragraph (2); and
       ``(B) 20 percent of such amounts shall be allocated by the 
     Governor to local areas in accordance with paragraph (3).
       ``(2) Established formula.--
       ``(A) In general.--Of the amounts described in paragraph 
     (1)(A), the Governor shall allocate--
       ``(i) 60 percent on the basis of the relative number of 
     unemployed individuals in each local area, compared to the 
     total number of unemployed individuals in all local areas in 
     the State;
       ``(ii) 15 percent on the basis of the relative excess 
     number of unemployed individuals in each local area, compared 
     to the total excess number of unemployed individuals in all 
     local areas in the State;
       ``(iii) 15 percent on the basis of the relative number of 
     individuals in the civilian labor force in each local area, 
     compared to the total number of individuals in the civilian 
     labor force in all local areas in the State; and
       ``(iv) 10 percent shall be allotted on the basis of the 
     relative number of disadvantaged adults in each local area, 
     compared to the total number of disadvantaged adults in all 
     local areas in the State.
       ``(B) Minimum and maximum percentages.--The Governor shall 
     ensure that no local area shall receive an allocation for a 
     fiscal year under this paragraph that is less than 90 percent 
     or greater than 130 percent of the allocation percentage of 
     the local area for the preceding fiscal year.
       ``(C) Definitions.--
       ``(i) Allocation percentage.--The term `allocation 
     percentage', used with respect to fiscal year 2004 or a 
     subsequent fiscal year, means a percentage of amount 
     described in paragraph (1)(A) that is received through an 
     allocation made under this paragraph for the fiscal year. The 
     term, with respect to fiscal year 2003, means the percentage 
     of the amounts allocated to local areas under this chapter 
     (as in effect on the day before the date of enactment of the 
     Workforce Reinvestment and Adult Education Act of 2003) that 
     is received by the local area involved for fiscal year 2003.
       ``(ii) Disadvantaged adult.--The term `disadvantaged adult' 
     means an individual who is age 22 through 72 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 poverty line.
       ``(iii) Excess number.--The term `excess number' means, 
     used with respect to the excess number of unemployed 
     individuals within a local area, the number that represents 
     the number of unemployed individuals in excess of 4.5 percent 
     of the civilian labor force in the local area.
       ``(3) Discretionary allocation.--The Governor shall 
     allocate to local areas the amounts described in paragraph 
     (1)(B) based on a formula developed in consultation with the 
     State board and local boards. Such formula shall be objective 
     and geographically equitable and may include such demographic 
     and economic factors as the Governor, after consultation with 
     the State board and local boards, determines are appropriate.
       ``(4) Local administrative cost limit.--
       ``(A) In general.--Of the amounts allocated to a local area 
     under this subsection and section 128(b) for a fiscal year, 
     not more than 10 percent of the amount may be used by the 
     local boards for the administrative costs of carrying out 
     local workforce investment activities under this chapter or 
     chapter 4.
       ``(B) Use of funds.--Funds made available for 
     administrative costs under subparagraph (A) may be used for 
     the administrative costs of any of the local workforce 
     investment activities described in this chapter or chapter 4, 
     regardless of whether the funds were allocated under this 
     subsection or section 128(b).''.
       (3) Reallocation among local areas.--Section 133(c) (29 
     U.S.C. 2863(c)) is amended--
       (A) in paragraph (1), by striking ``paragraph (2)(A) or (3) 
     of'';
       (B) by amending paragraph (2) to read as follows:
       ``(2) Amount.--The amount available for reallocation for a 
     program year is equal to the amount by which the unexpended 
     balance, excluding accrued expenditures, at the end of such 
     program year of the total amount of funds available to the 
     local area under this section during such program year 
     (including amounts allotted to the local area in prior 
     program years that remain available during the program year 
     for which the determination is made) exceeds 30 percent of 
     such total amount.'';
       (C) by amending paragraph (3)--
       (i) by striking ``subsection (b)(3)'' each place it appears 
     and inserting ``subsection (b)'';
       (ii) by striking ``the prior program year'' and inserting 
     ``the program year in which the determination is made'';
       (iii) by striking ``such prior program year'' and inserting 
     ``such program year''; and
       (iv) by striking the last sentence; and
       (D) by amending paragraph (4) to read as follows:
       ``(4) Eligibility.--For purposes of this subsection, an 
     eligible local area means a local area which does not have an 
     amount available for reallocation under paragraph (2) for the 
     program year for which the determination under paragraph (2) 
     is made.''.
       (e) Use of Funds for Employment and Training Activities.--
       (1) Statewide employment and training activities.--
       (A) In general.--Section 134(a)(1) (29 U.S.C. 2864(a)(1) is 
     amended to read as follows:
       ``(1) In general.--
       ``(A) Required use of funds.--Not less than 50 percent of 
     the funds reserved by a Governor under section 133(a) shall 
     be used to support the provision of core services in local 
     areas, consistent with the local plan, through one-stop 
     delivery systems by distributing funds to local areas in 
     accordance with subparagraph (B). Such funds may be used by 
     States to employ State personnel to provide such services in 
     designated local areas in consultation with local boards.
       ``(B) Method of distributing funds.--The method of 
     distributing funds under this paragraph shall be developed in 
     consultation with the State board and local boards. Such 
     method of distribution, which may include the formula 
     established under section 121(h)(3), shall be objective and 
     geographically equitable, and may include factors such as the 
     number of centers in the local area that have been certified, 
     the population served by such centers, and the performance of 
     such centers.
       ``(C) Other use of funds.--Funds reserved by a Governor for 
     a State--
       ``(i) under section 133(a) and not used under subparagraph 
     (A), may be used for statewide activities described in 
     paragraph (2); and
       ``(ii) under section 133(a) and not used under subparagraph 
     (A), and under section 128(a) may be used to carry out any of 
     the statewide employment and training activities described in 
     paragraph (3).''.
       (B) Statewide rapid response activities.--Section 134(a)(2) 
     (29 U.S.C. 2864(a)(2)) is amended to read as follows:
       ``(2) Statewide rapid response activities.--A State shall 
     carry out statewide rapid response activities using funds 
     reserved as described in section 133(a). Such activities 
     shall include--
       ``(A) provision of rapid response activities, carried out 
     in local areas by the State or by an entity designated by the 
     State, working in conjunction with the local boards and the 
     chief elected officials in the local areas; 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 local areas 
     by the State, working in conjunction with the local boards 
     and the chief elected officials in the local areas.''.
       (C) Statewide employment and training activities.--Section 
     134(a)(3) (29 U.S.C. 2864(a)(3)) is amended to read as 
     follows:
       ``(3) Statewide activities.--Funds reserved by a Governor 
     for a State as described in sections 133(a) and 128(a) may be 
     used for statewide activities including--
       ``(A) supporting the provision of core services described 
     in section 134(c)(2) in the one-stop delivery system;
       ``(B) conducting evaluations under section 136(e) of 
     activities authorized under this chapter and chapter 4 in 
     coordination with evaluations carried out by the Secretary 
     under section 172, research, and demonstration projects;
       ``(C) providing incentive grants to local areas for 
     regional cooperation among local boards (including local 
     boards in a designated region as described in section 
     116(c)), for local coordination of activities carried out 
     under this Act, and for exemplary performance by local areas 
     on the local performance measures;
       ``(D) providing technical assistance and capacity building 
     to local areas, one-stop operators, one-stop partners, and 
     eligible providers, including the development and training of 
     staff, the development of exemplary program activities, and 
     the provision of technical assistance to local areas that 
     fail to meet local performance measures;
       ``(E) operating a fiscal and management accountability 
     system under section 136(f);
       ``(F) carrying out monitoring and oversight of activities 
     carried out under this chapter and chapter 4;
       ``(G) implementing innovative programs, such as incumbent 
     worker training programs, programs serving individuals with 
     disabilities consistent with section 188;
       ``(H) developing strategies for effectively serving hard-
     to-serve populations and for integrating programs and 
     services among one-stop partners;
       ``(I) implementing innovative programs for displaced 
     homemakers, which for purposes of this subparagraph may 
     include an individual

[[Page 10918]]

     who is receiving public assistance and is within 2 years of 
     exhausting lifetime eligibility under Part A of title IV of 
     the Social Security Act (42 U.S.C. 601 et seq.); and
       ``(J) implementing programs to increase the number of 
     individuals training for and placed in nontraditional 
     employment.''.
       (D) Limitation on state administrative expenditures.--
     Section 134(a) is further amended by adding the following new 
     paragraph:
       ``(4) Limitation.--Not more than 5 percent of the funds 
     allotted under section 132(b) shall be used by the State for 
     administrative activities carried out under this subsection 
     and section 128(a).''.
       (2) Local employment and training activities.-- Section 
     134(b) (29 U.S.C. 2864(b)) is amended--
       (A) by striking ``under paragraph (2)(A)'' and all that 
     follows through ``section 133(b)(2)(B)'' and inserting 
     ``under section 133(b)'';
       (B) in paragraphs (1) and (2), by striking ``or dislocated 
     workers, respectively'' both places it appears; and
       (C) by redesignating subsections (d) and (e) as subsections 
     (c) and (d), respectively.
       (3) Required local employment and training activities.--
       (A) Allocated funds.--Section 134(c)(1) (29 U.S.C. 
     2864(c)(1)) (as redesignated by paragraph (2)) is amended to 
     read as follows:
       ``(1) In general.--Funds allocated to a local area for 
     adults under section 133(b) shall be used--
       ``(A) to establish a one-stop delivery system as described 
     in section 121(e);
       ``(B) to provide the core services described in paragraph 
     (2) through the one-stop delivery system in accordance with 
     such paragraph;
       ``(C) to provide the intensive services described in 
     paragraph (3) to adults described in such paragraph; and
       ``(D) to provide training services described in paragraph 
     (4) to adults described in such paragraph.''.
       (B) Core services.--Section 134(c)(2) (29 U.S.C. 
     2864(c)(2)) (as redesignated by paragraph (2)) is amended--
       (i) by striking ``who are adults or dislocated workers'';
       (ii) in subparagraph (A), by striking ``under this 
     subtitle'' and inserting ``under the one-stop partner 
     programs described in section 121(b)'';
       (iii) by amending subparagraph (D) to read as follows:
       ``(D) labor exchange services, including--
       ``(i) job search and placement assistance, and where 
     appropriate career counseling; and
       ``(ii) appropriate recruitment services for employers;'';
       (iv) in subparagraph (I), by inserting ``and the 
     administration of the work test for the unemployment 
     compensation system'' after ``compensation''; and
       (v) by amending subparagraph (J) to read as follows:
       ``(J) assistance in establishing eligibility for 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''.
       (C) Intensive services.--Section 134(c)(3) (29 U.S.C. 
     2864(c)(3) (as redesignated by paragraph (2) of this 
     subsection) is amended--
       (i) by amending subparagraph (A) to read as follows:
       ``(A) In general.--
       ``(i) Eligibility.--Funds allocated to a local area under 
     section 133(b) shall be used to provide intensive services 
     for adults who--

       ``(I) are unemployed and who have been determined by the 
     one-stop operator to be--

       ``(aa) unlikely or unable to obtain suitable employment 
     through core services; and
       ``(bb) in need of intensive services in order to obtain 
     suitable employment; or

       ``(II) are employed, but who are determined by a one-stop 
     operator to be in need of intensive services to obtain or 
     retain suitable employment.

       ``(ii) Definition.--The Governor shall define the term 
     `suitable employment' for purposes of this subparagraph.''; 
     and
       (ii) in subparagraph (C)--

       (I) in clause (v), by striking ``for participants seeking 
     training services under paragraph (4)''; and
       (II) by adding the following clauses after clause (vi):

       ``(vii) Internships and work experience.
       ``(viii) Literacy activities relating to basic work 
     readiness, and financial literacy activities.
       ``(ix) Out-of-area job search assistance and relocation 
     assistance.''.
       (D) Training services.--Section 134(c)(4) (as redesignated 
     by paragraph (2) of this subsection) is amended--
       (i) by amending subparagraph (A) to read as follows:
       ``(A) In general.--
       ``(i) Eligibility.--Funds allocated to a local area under 
     section 133(b) shall be used to provide training services to 
     adults who--

       ``(I) after an interview, evaluation, or assessment, and 
     case management, have been determined by a one-stop operator 
     or one-stop partner, as appropriate, to--

       ``(aa) be unlikely or unable to obtain or retain suitable 
     employment through intensive services under paragraph (3)(A);
       ``(bb) be in need of training services to obtain or retain 
     suitable employment; and
       ``(cc) have the skills and qualifications to successfully 
     participate in the selected program of training services;

       ``(II) 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 commute or relocate;
       ``(III) who meet the requirements of subparagraph (B); and
       ``(IV) who are determined eligible in accordance with the 
     priority system in effect under subparagraph (E).

       ``(ii) The Governor shall define the term `suitable 
     employment' for purposes of this subparagraph.'';
       (ii) in subparagraph (B)(i), by striking ``Except'' and 
     inserting ``Notwithstanding section 479B of the Higher 
     Education Act of 1965 (20 U.S.C. 1087uu) and except'';
       (iii) by amending subparagraph (E) to read as follows:
       ``(E) Priority.--
       ``(i) In general.--A priority shall be given to unemployed 
     individuals for the provision of intensive and training 
     services under this subsection.
       ``(ii) Additional priority.--If the funds in the local 
     area, including the funds allocated under section 133(b), for 
     serving recipients of public assistance and other low-income 
     individuals is limited, the priority for the provision of 
     intensive and training services under this subsection shall 
     include such recipients and individuals.
       ``(iii) Determinations.--The Governor and the appropriate 
     local board shall direct the one-stop operators in the local 
     area with regard to making determinations with respect to the 
     priority of service under this subparagraph.'';
       (iv) in subparagraph (F), by adding the following clause 
     after clause (iii):
       ``(iv) Enhanced individual training accounts.--Each local 
     board may, through one-stop centers, assist individuals 
     receiving individual training accounts through the 
     establishment of such accounts that include, in addition to 
     the funds provided under this paragraph, funds from other 
     programs and sources that will assist the individual in 
     obtaining training services.''; and
       (v) in subparagraph (G)(iv), by redesignating subclause 
     (IV) as subclause (V) and inserting after subclause (III) the 
     following:

       ``(IV) Individuals with disabilities.''.

       (4) Permissible activities.--Section 134(d) (as 
     redesignated by paragraph (2)) is amended--
       (A) by amending paragraph (1) to read as follows:
       ``(1) Discretionary one-stop delivery activities.--
       ``(A) In general.--Funds allocated to a local area under 
     section 133(b) may be used to provide, through the one-stop 
     delivery system--
       ``(i) customized screening and referral of qualified 
     participants in training services to employers;
       ``(ii) customized employment-related services to employers 
     on a fee-for-service basis;
       ``(iii) customer support to navigate among multiple 
     services and activities for special participant populations 
     that face multiple barriers to employment, including 
     individuals with disabilities; and
       ``(iv) employment and training assistance provided in 
     coordination with child support enforcement activities of the 
     State agency carrying out subtitle D of title IV of the 
     Social Security Act.
       ``(B) Work support activities for low-wage workers.--
       ``(i) In general.-- Funds allocated to a local area under 
     133(b) may be used to provide, through the one-stop delivery 
     system and in collaboration with the appropriate programs and 
     resources of the one-stop partners, work support activities 
     designed to assist low-wage workers in retaining and 
     enhancing employment.
       ``(ii) Activities.--The activities described in clause (i) 
     may include assistance in accessing financial supports for 
     which such workers may be eligible and the provision of 
     activities available through the one-stop delivery system in 
     a manner that enhances the opportunities of such workers to 
     participate, such as the provision of employment and training 
     activities during nontraditional hours and the provision of 
     on-site child care while such activities are being 
     provided.''; and
       (B) by adding after paragraph (3) the following new 
     paragraph:
       ``(4) Incumbent worker training programs.--
       ``(A) In general.--The local board may use up to 10 percent 
     of the funds allocated to a local area under section 133(b) 
     to carry out incumbent worker training programs in accordance 
     with this paragraph.
       ``(B) Training activities.--The training programs for 
     incumbent workers under this paragraph shall be carried out 
     by the local area in conjunction with the employers of such 
     workers for the purpose of assisting such workers in 
     obtaining the skills necessary to retain employment and avert 
     layoffs.
       ``(C) Employer match required.--
       ``(i) In general.--Employers participating in programs 
     under this paragraph shall be required to pay a proportion of 
     the costs of providing the training to the incumbent workers. 
     The Governor shall establish, or may authorize the local 
     board to establish, the required portion of such costs, which 
     shall not be less than--

       ``(I) 10 percent of the costs, for employers with 50 or 
     fewer employees;
       ``(II) 25 percent of the costs, for employers with more 
     than 50 employees but fewer than 100 employees; and
       ``(III) 50 percent of the costs, for employers with 100 or 
     more employees.

       ``(ii) Calculation of match.--The wages paid by an employer 
     to a worker while they are

[[Page 10919]]

     attending training may be included as part of the requirement 
     payment of the employer.''.

     SEC. 113. PERFORMANCE ACCOUNTABILITY SYSTEM.

       (a) State Performance Measures.--
       (1) In general.--Section 136(b)(1) (29 U.S.C. 2871(b)(1)) 
     is amended--
       (A) in subparagraph (A)(i), by striking ``and the customer 
     satisfaction indicator of performance described in paragraph 
     (2)(B)''; and
       (B) in subparagraph (A)(ii), by striking ``paragraph 
     (2)(C)'' and inserting ``paragraph (2)(B)''.
       (2) Indicators of performance.--Section 136(b)(2) (29 
     U.S.C. 2871(b)(2)) is amended--
       (A) in subparagraph (A)(i), by striking ``(except for self-
     service and information activities) and (for participants who 
     are eligible youth age 19 through 21) for youth activities 
     authorized under section 129'';
       (B) by amending subparagraph (A)(i)(IV) to read as follows:

       ``(IV) the efficiency of the program in obtaining the 
     outcomes described in subclauses (I) through (III).'';

       (C) by amending subparagraph (A)(ii) to read as follows:
       ``(ii) Core indicators for eligible youth.--The core 
     indicators of performance for youth activities authorized 
     under section 129 shall consist of--

       ``(I) entry into employment, education or advanced 
     training, or military service;
       ``(II) attainment of secondary school diplomas or the 
     General Equivalency Diploma (GED) (including recognized 
     alternative standards for individuals with disabilities);
       ``(III) attainment of literacy or numeracy skills; and
       ``(IV) the efficiency of the program in obtaining the 
     outcomes described in subclauses (I) through (III).'';

       (D) by striking subparagraph (B);
       (E) by redesignating subparagraph (C) as subparagraph (B), 
     and by adding at the end of such subparagraph (as so 
     redesignated) the following new sentence: ``Such indicators 
     may include customer satisfaction of employers and 
     participants with services received from the workforce 
     investment activities authorized under this subtitle.''.
       (3) Levels of performance.--Section 136(b)(3)(A) (29 U.S.C. 
     2871(b)(3)(A)) is amended--
       (A) in clause (i), by striking ``and the customer 
     satisfaction indicator described in paragraph (2)(B)'';
       (B) in clause (ii), by striking ``and the customer 
     satisfaction indicator of performance, for the first 3'' and 
     inserting ``for the 2'';
       (C) in clause (iii)--
       (i) in the heading, by striking ``for first 3 years''; and
       (ii) by striking ``and the customer satisfaction indicator 
     of performance, for the first 3'' and inserting ``for the 
     2'';
       (D) in clause (iv)--
       (i) by striking subclause (I);
       (ii) by redesignating subclauses (II) and (III) as 
     subclauses (I) and (II), respectively; and
       (iii) in subclause (I) (as so redesignated)--

       (I) by striking ``taking into account'' and inserting 
     ``which shall be adjusted based on'';
       (II) by inserting ``such as unemployment rates and job 
     losses or gains in particular industries'' after ``economic 
     conditions''; and
       (III) by inserting ``such as indicators of poor work 
     history, lack of work experience, low levels of literacy or 
     English proficiency, disability status, and welfare 
     dependency'' after ``program'';

       (E) by striking clause (v); and
       (F) by redesignating clause (vi) as clause (v).
       (4) Additional indicators.--Section 136(b)(3)(B) is amended 
     by striking ``paragraph (2)(C)'' and inserting ``paragraph 
     (2)(B)''.
       (b) Local Performance Measures.--Section 136(c) (29 U.S.C 
     2871(c)) is amended--
       (1) in paragraph (1)(A)(i), by striking ``, and the 
     customer satisfaction indicator of performance described in 
     subsection (b)(2)(B),'';
       (2) in paragraph (1)(A)(ii), by striking ``subsection 
     (b)(2)(C)'' and inserting ``subsection (b)(2)(B)''; and
       (3) by amending paragraph (3) to read as follows:
       ``(3) Determinations.--In determining such local levels of 
     performance, the local board, the chief elected official, and 
     the Governor shall ensure such levels are adjusted based on 
     the specific economic characteristics (such as unemployment 
     rates and job losses or gains in particular industries), 
     demographic characteristics, or other characteristics of the 
     population to be served in the local area, such as poor work 
     history, lack of work experience, low levels of literacy or 
     English proficiency, disability status, and welfare 
     dependency.''.
       (c) Report.--Section 136(d) (29 U.S.C. 2871(d)) is 
     amended--
       (1) in paragraph (1), by striking ``and the customer 
     satisfaction indicator'' in both places that it appears;
       (2) in paragraph (2)(E), by striking ``(excluding 
     participants who received only self-service and informational 
     activities)''; and
       (3) by adding at the end the following:
       ``(4) Data validation.--In preparing the reports described 
     in this subsection, the States shall establish procedures, 
     consistent with guidelines issued by the Secretary, to ensure 
     the information contained in the report is valid and 
     reliable.''.
       (d) Sanctions for State.--Section 136(g) (29 U.S.C. 
     2871(g)) is amended--
       (1) in paragraph (1)(A), by striking ``or (B)''; and
       (2) in paragraph (2), by striking ``section 503'' and 
     inserting ``section 136(i)''.
       (e) Sanctions for Local Areas.--Section 136(h) (29 U.S.C. 
     2871(h)) is amended--
       (1) in paragraph (1), by striking ``or (B)''; and
       (2) by amending paragraph (2)(B) to read as follows:
       ``(B) Appeal to governor.--A local area that is subject to 
     a reorganization plan under subparagraph (A) may, not later 
     than 30 days after receiving notice of the reorganization 
     plan, appeal to the Governor to rescind or revise such plan. 
     In such case, the Governor shall make a final decision not 
     later than 30 days after the receipt of the appeal.''.
       (f) Incentive Grants.--Section 136(i) (29 U.S.C. 2871(i)) 
     is amended to read as follows:
       ``(i) Incentive Grants for States and Local Areas.--
       ``(1) Incentive grants for states.--
       ``(A) In general.--From funds appropriated under section 
     174, the Secretary may award grants to States for exemplary 
     performance in carrying programs under this chapters 4 and 5 
     of this title. Such awards may be based on States meeting or 
     exceeding the performance measures established under this 
     section, on the performance of the State in serving special 
     populations, including the levels of service provided and the 
     performance outcomes, and such other factors relating to the 
     performance of the State under this title as the Secretary 
     determines is appropriate.
       ``(B) Use of funds.--The funds awarded to a State under 
     this paragraph may be used to carry out any activities 
     authorized under chapters 4 and 5 of this title, including 
     demonstrations and innovative programs for special 
     populations.
       ``(2) Incentive grants for local areas.--
       ``(A) In general.--From funds reserved under sections 
     128(a) and 133(a), the Governor may award incentive grants to 
     local areas for exemplary performance with respect to the 
     measures established under this section and with the 
     performance of the local area in serving special populations, 
     including the levels of service and the performance outcomes.
       ``(B) Use of funds.--The funds awarded to a local area may 
     be used to carry out activities authorized for local areas 
     under chapters 4 and 5 of this title, and such demonstration 
     or other innovative programs to serve special populations as 
     may be approved by the Governor.''.
       (g) Repeal of Definitions.--Sections 502 and 503 (and the 
     items related to such sections in the table of contents) are 
     repealed.

     SEC. 114. AUTHORIZATION OF APPROPRIATIONS.

       (a) Youth Activities.--Section 137(a) (29 U.S.C. 2872(a)) 
     is amended by striking ``such sums as may be necessary for 
     each of fiscal years 1999 through 2003'' and inserting 
     ``$1,001,000,000 for fiscal year 2004 and such sums as may be 
     necessary for each of fiscal years 2005 through 2009''.
       (b) Adult Employment and Training Activities.--Section 
     137(b) (29 U.S.C. 2872(b)) is amended by striking ``section 
     132(a)(1), such sums as may be necessary for each of fiscal 
     years 1999 through 2003'' and inserting ``132(a), 
     $3,079,800,000 for fiscal year 2004 and such sums as may be 
     necessary for each of fiscal years 2005 through 2009''.
       (c) Dislocated Worker Employment and Training Activities.--
     Section 137 is further amended by striking subsection (c).

     SEC. 115. JOB CORPS.

       (a) Community Participation.--Section 153 (29 U.S.C. 2893) 
     is amended--
       (1) by amending subsection (a) to read as follows:
       ``(a) Business and Community Participation.--The director 
     of each Job Corps center shall ensure the establishment and 
     development of the business and community relationships and 
     networks described in subsection (b) in order to enhance the 
     effectiveness of such center.'';
       (2) in subsection (b)--
       (A) in the heading, by striking ``Responsibilities'' and 
     inserting ``Networks''; and
       (B) by striking ``The responsibilities of the Liaison'' and 
     inserting ``The activities carried out by each Job Corps 
     center under this section''; and
       (3) in subsection (c), by striking ``The Liaison for'' and 
     inserting ``The director of''.
       (b) Industry Councils.--Section 154(b) (29 U.S.C. 2894(b)) 
     is amended--
       (1) in paragraph (1)(A), by striking ``local and distant''; 
     and
       (2) by adding after paragraph (2) the following:
       ``(3) Employers outside of local areas.--The industry 
     council may include, or otherwise provide for consultation 
     with, employers from outside the local area who are likely to 
     hire a significant number of enrollees from the Job Corps 
     center.''.
       (c) Indicators of Performance and Additional Information.--
     Section 159(c) (29 U.S.C. 2893(c)) is amended--
       (1) by amending paragraph (1) to read as follows:
       ``(1) Core indicators.--The Secretary shall annually 
     establish expected levels of performance for Job Corps 
     centers and the Job Corps program relating to each of the 
     core indicators for youth identified in section 
     136(b)(2)(A)(ii).''; and
       (2) in paragraph (2), by striking ``measures'' each place 
     it appears and inserting ``indicators''.

     SEC. 116. NATIVE AMERICAN PROGRAMS.

       (a) Authorized Activities.--Section 166(d)(2) (29 U.S.C. 
     2911(d)(2)) is amended to read as follows:

[[Page 10920]]

       ``(2) Workforce investment activities and supplemental 
     services.--Funds made available under subsection (c) shall be 
     used for--
       ``(A) comprehensive workforce investment activities for 
     Indians or Native Hawaiians; or
       ``(B) supplemental services for Indian or Native Hawaiian 
     youth on or near Indian reservations and in Oklahoma, Alaska, 
     or Hawaii.''.
       (b) Advisory Council.--Section 166(h)(4)(C) (29 U.S.C. 
     2911(h)(4)(C)) is amended to read as follows:
       ``(C) Duties.--The Council shall advise the Secretary on 
     the operation and administration of the programs assisted 
     under this section.''.
       (c) Assistance to American Samoans in Hawaii.--Section 166 
     (29 U.S.C. 2911) is further amended by striking subsection 
     (j).

     SEC. 117. YOUTH CHALLENGE GRANTS.

       Section 169 (29 U.S.C. 2914) is amended to read as follows:

     ``SEC. 169. YOUTH CHALLENGE GRANTS.

       ``(a) In General.--Of the amounts reserved by the Secretary 
     under section 127(a)(1)(A) for a fiscal year--
       ``(1) the Secretary shall use not less than 80 percent to 
     award competitive grants under subsection (b); and
       ``(2) the Secretary may use not more than 20 percent to 
     award discretionary grants under subsection (c).
       ``(b) Competitive Grants to States and Local Areas.--
       ``(1) Establishment.--From the funds described in 
     subsection (a)(1), the Secretary shall award competitive 
     grants to eligible entities to carry out activities 
     authorized under this section to assist eligible youth in 
     acquiring the skills, credentials and employment experience 
     necessary to succeed in the labor market.
       ``(2) Eligible entities.--Grants under this subsection may 
     be awarded to States, local boards, recipients of grants 
     under section 166 (relating to Native American programs), and 
     public or private entities (including consortia of such 
     entities) applying in conjunction with local boards.
       ``(3) Grant period.--The Secretary may make a grant under 
     this section for a period of 1 year and may renew the grants 
     for each of the 4 succeeding years.
       ``(4) Authority to require match.--The Secretary may 
     require that grantees under this subsection provide a non-
     Federal share of the cost of activities carried out under a 
     grant awarded under this subsection.
       ``(5) Participant eligibility.--Youth ages 14 through 19 as 
     of the time the eligibility determination is made may be 
     eligible to participate in activities provided under this 
     subsection.
       ``(6) Use of funds.--Funds under this subsection may be 
     used for activities that are designed to assist youth in 
     acquiring the skills, credentials and employment experience 
     that are necessary to succeed in the labor market, including 
     the activities identified in section 129. The activities may 
     include activities such as--
       ``(A) training and internships for out-of-school youth in 
     sectors of economy experiencing or projected to experience 
     high growth;
       ``(B) after-school dropout prevention activities for in-
     school youth;
       ``(C) activities designed to assist special youth 
     populations, such as court-involved youth and youth with 
     disabilities; and
       ``(D) activities combining remediation of academic skills, 
     work readiness training, and work experience, and including 
     linkages to postsecondary education, apprenticeships, and 
     career-ladder employment.
       ``(7) Applications.--To be eligible to receive a grant 
     under this subsection, an eligible entity shall submit an 
     application to the Secretary at such time, in such manner, 
     and containing such information as the Secretary may require, 
     including--
       ``(A) a description of the activities the eligible entity 
     will provide to eligible youth under this subsection;
       ``(B) a description of the programs of demonstrated 
     effectiveness on which the provision of the activities under 
     subparagraph (A) are based, and a description of how such 
     activities will expand the base of knowledge relating to the 
     provision of activities for youth;
       ``(C) a description of the private and public, and local 
     and State resources that will be leveraged to provide the 
     activities described under subparagraph (A) in addition the 
     funds provided under this subsection; and
       ``(D) the levels of performance the eligible entity expects 
     to achieve with respect to the indicators of performance for 
     youth specified in section 136(b)(2)(A)(ii).
       ``(8) Factors for award.--In awarding grants under this 
     subsection the Secretary may consider the quality of the 
     proposed project, the goals to be achieved, the likelihood of 
     successful implementation, the extent to which the project is 
     based on proven strategies or the extent to which the project 
     will expand the knowledge base on activities for youth, and 
     the additional State, local or private resources that will be 
     provided.
       ``(9) Evaluation.--The Secretary may reserve up to 5 
     percent of the funds described in subsection (a)(1) to 
     provide technical assistance to, and conduct evaluations of 
     the projects funded under this subsection (using appropriate 
     techniques as described in section 172(c)).
       ``(c) Discretionary Grants for Youth Activities.--
       ``(1) In general.--From the funds described in subsection 
     (a)(2), the Secretary may award grants to eligible entities 
     to provide activities that will assist youth in preparing 
     for, and entering and retaining, employment.
       ``(2) Eligible entities.--Grants under this subsection may 
     be awarded to public or private entities that the Secretary 
     determines would effectively carry out activities relating to 
     youth under this subsection.
       ``(3) Participant eligibility.--Youth ages 14 through 19 at 
     the time the eligibility determination is made may be 
     eligible to participate in activities under this subsection.
       ``(4) Use of funds.--Funds provided under this subsection 
     may be used for activities that will assist youth in 
     preparing for, and entering and retaining, employment, 
     including the activities described in section 129 for out-of-
     school youth, activities designed to assist in-school youth 
     to stay in school and gain work experience, and such other 
     activities that the Secretary determines are appropriate.
       ``(5) Applications.--To be eligible to receive a grant 
     under this subsection, an eligible entity shall submit an 
     application to the Secretary at such time, in such manner, 
     and containing such information as the Secretary may require.
       ``(6) Additional requirements.--The Secretary may require 
     the provision of a non-Federal share for projects funded 
     under this subsection and may require participation of 
     grantees in evaluations of such projects, including 
     evaluations using the techniques as described in section 
     172(c).''.

     SEC. 118. TECHNICAL ASSISTANCE.

       Section 170 (29 U.S.C. 2915) is amended--
       (1) by striking subsection (b);
       (2) by striking ``(a) General Technical Assistance.--'';
       (3) by redesignating paragraphs (1), (2), and (3) as 
     subsections (a), (b), and (c) respectively, and moving such 
     subsections 2 ems to the left; and
       (4) in subsection (a) (as redesignated by paragraph (3))--
       (A) by inserting ``the training of staff providing rapid 
     response services, the training of other staff of recipients 
     of funds under this title, peer review activities under this 
     title,'' after ``localities,''; and
       (B) by striking ``from carrying out activities'' and all 
     that follows up to the period and inserting ``to implement 
     the amendments made by the Workforce Reinvestment and Adult 
     Education Act of 2003''.

     SEC. 119. DEMONSTRATION, PILOT, MULTISERVICE, RESEARCH AND 
                   MULTISTATE PROJECTS.

       (a) Demonstration and Pilot Projects.--Section 171(b) (29 
     U.S.C. 2916(b)) is amended--
       (1) in paragraph (1)--
       (A) by striking ``Under a'' and inserting ``Consistent with 
     the priorities specified in the'';
       (B) by amending subparagraphs (A) through (D) to read as 
     follows:
       ``(A) projects that assist national employers in connecting 
     with the workforce investment system established under this 
     title in order to facilitate the recruitment and employment 
     of needed workers and to provide information to such system 
     on skills and occupations in demand;
       ``(B) projects that promote the development of systems that 
     will improve the effectiveness and efficiency of programs 
     carried out under this title;
       ``(C) projects that focus on opportunities for employment 
     in industries and sectors of industries that are experiencing 
     or are likely to experience high rates of growth;
       ``(D) projects carried out by States and local areas to 
     test innovative approaches to delivering employment-related 
     services;'';
       (C) by striking subparagraph (E);
       (D) by redesignating subparagraphs (F) and (G) as 
     subparagraphs (E) and (F), respectively;
       (E) by inserting after subparagraph (F) (as so 
     redesignated) the following:
       ``(G) projects that provide retention grants to qualified 
     job training programs upon placement or retention of a low-
     income individual trained by that program in employment with 
     a single employer for a period of 1 year, provided that such 
     employment is providing to the low-income individual an 
     income not less than twice the poverty line for that 
     individual.''; and
       (F) by striking subparagraph (H); and
       (2) in paragraph (2)--
       (A) by striking subparagraph (B); and
       (B) by redesignating subparagraph (C) as subparagraph (B).
       (b) Multiservice Projects.--Section 171(c)(2)(B) (29 U.S.C. 
     2916(c)(2)(B)) is amended to read as follows:
       ``(B) Net impact studies and reports.--The Secretary shall 
     conduct studies to determine the net impacts of programs, 
     services, and activities carried out under this title. The 
     Secretary shall prepare and disseminate to the public reports 
     containing the results of such studies.''.
       (c) Waiver Authority To Carry Out Demonstrations and 
     Evaluations.--Section 171 (29 U.S.C. 2916(d)) is further 
     amended by striking subsection (d).

     SEC. 120. EVALUATIONS.

       (a) In General.--Section 173 (29 U.S.C. 2916) is amended--
       (1) by amending the designation and heading to read as 
     follows:

     ``SEC. 173. NATIONAL DISLOCATED WORKER GRANTS.'';

     and
       (2) in subsection (a)--
       (A) by striking ``national emergency grants'' in the matter 
     preceding paragraph (1) and inserting ``national dislocated 
     worker grants''; and
       (B) in paragraph (1), by striking ``subsection (c)'' and 
     inserting ``subsection (b)''.
       (b) Administration.--Section 173 (29 U.S.C. 2918) is 
     further amended--
       (1) by striking subsection (b) and redesignating 
     subsections (c) and (d) as subsections (b) and (c), 
     respectively; and

[[Page 10921]]

       (2) by striking subsection (e) and redesignating 
     subsections (f) and (g) as subsection (d) and (e), 
     respectively.
       (c) Eligible Entities.--Section 173(b)(1)(B) (29 U.S.C. 
     2918(b)(1)(B)) (as redesignated by subsection (b) of this 
     section) is amended by striking ``, and other entities'' and 
     all that follows and inserting a period.
       (d) Conforming Amendment.--The table of contents in section 
     1(b) is amended by amending the item related to section 173 
     to read as follows:

``Sec. 173. National dislocated worker grants.''.

     SEC. 121. AUTHORIZATION OF APPROPRIATIONS FOR NATIONAL 
                   ACTIVITIES.

       (a) In General.--Section 174(a)(1) (29 U.S.C. 2919(a)(1)) 
     is amended by striking ``1999 through 2003'' and inserting 
     ``2004 through 2009''.
       (b) Reservations.--Section 174(b) is amended to read as 
     follows:
       ``(b) Technical Assistance; Demonstration and Pilot 
     Projects; Evaluations; Incentive Grants.--There are 
     authorized to be appropriated to carry out sections 170 
     through 172 and section 136 such sums as may be necessary for 
     each of fiscal years 2004 through 2009.''.

     SEC. 122. REQUIREMENTS AND RESTRICTIONS.

       (a) In General.--Section 181(c)(2)(A) (29 U.S.C. 
     2931(c)(2)(A)) is amended in the matter preceding clause (i) 
     by striking ``shall'' and inserting ``may''.
       (b) Limitations.--Section 181(e) is amended by striking the 
     first sentence.

     SEC. 123. NONDISCRIMINATION.

       Section 188(a)(2) (29 U.S.C. 2931(a)(2)) is amended--
       (1) by striking ``employment.--No'' and inserting 
     ``employment.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     no''; and
       (2) by adding at the end the following subparagraph:
       ``(B) Exemption for religious organizations.--Subparagraph 
     (A) shall not apply to recipients of financial assistance 
     under this title that is a religious corporation, 
     association, educational institution, or society, with 
     respect to the employment of individuals of a particular 
     religion to perform work connected with the carrying on by 
     such corporation, association, educational institution, or 
     society of its activities Such recipients shall comply with 
     the other requirements contained in subparagraph (A).''.

     SEC. 124. ADMINISTRATIVE PROVISIONS.

       (a) Program Year.--Section 189(g)(1) (29 U.S.C. 2939(g)(1)) 
     is amended to read as follows:
       ``(1) In general.--Appropriations for any fiscal year for 
     programs and activities carried out under this title shall be 
     available for obligation only on the basis of a program year. 
     The program year shall begin on July 1 in the fiscal year for 
     which the appropriation is made.''.
       (b) Availability.--Section 189(g)(2) (29 U.S.C. 2939(g)(2)) 
     is amended by striking ``each State'' and inserting ``each 
     recipient''.
       (c) General Waivers.--Section 189(i)(4) (29 U.S.C. 
     2939(i)(4)) is amended--
       (1) in subparagraph (A), in the matter preceding clause 
     (i), by inserting ``, or in accordance with subparagraph 
     (D),'' after ``subparagraph (B)''; and
       (2) by adding the following subparagraph:
       ``(D) Expedited process for extending approved waivers to 
     additional states.--In lieu of the requirements of 
     subparagraphs (B) and (C), the Secretary may establish an 
     expedited procedure for the purpose of extending to 
     additional States the waiver of statutory or regulatory 
     requirements that have been approved for a State pursuant to 
     a request under subparagraph (B). Such procedure shall ensure 
     that the extension of such waivers to additional States are 
     accompanied by appropriate conditions relating the 
     implementation of such waivers.''.

     SEC. 125. GENERAL PROGRAM REQUIREMENTS.

       Section 195 (29 U.S.C. 2945) is amended by adding at the 
     end the following new paragraph:
       ``(14) Funds provided under this title shall not be used to 
     establish or operate stand-alone fee-for-service enterprises 
     that compete with private sector employment agencies within 
     the meaning of section 701(c) of the Civil Rights Act of 1964 
     (42 U.S.C. 2000e(c)). For purposes of this paragraph, such an 
     enterprise does not include one-stop centers.''.

                       TITLE II--ADULT EDUCATION

        PART A--ADULT BASIC SKILLS AND FAMILY LITERACY EDUCATION

     SEC. 201. TABLE OF CONTENTS.

       The table of contents in section 1(b) is amended by 
     amending the items relating to title II to read as follows:

      ``TITLE II--ADULT BASIC SKILLS AND FAMILY LITERACY EDUCATION

``Sec. 201. Short title.
``Sec. 202. Purpose.
``Sec. 203. Definitions.
``Sec. 204. Home schools.
``Sec. 205. Authorization of appropriations.

                    ``Chapter 1--Federal Provisions

``Sec. 211. Reservation of funds; grants to eligible agencies; 
              allotments.
``Sec. 212. Performance accountability system.
``Sec. 213. Incentive grants for states.

                     ``Chapter 2--State Provisions

``Sec. 221. State administration.
``Sec. 222. State distribution of funds; matching requirement.
``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. National leadership activities.''.

     SEC. 202. AMENDMENT.

       Title II is amended to read as follows:

      ``TITLE II--ADULT BASIC SKILLS AND FAMILY LITERACY EDUCATION

     ``SEC. 201. SHORT TITLE.

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

     ``SEC. 202. PURPOSE.

       ``It is the purpose of this title to provide instructional 
     opportunities for adults seeking to improve their basic 
     reading, writing, speaking, and math skills, and support 
     States and local communities in providing, on a voluntary 
     basis, adult basic skills and family literacy programs, in 
     order to--
       ``(1) increase the basic reading, writing, speaking, and 
     math skills necessary for adults to obtain employment and 
     self-sufficiency and to successfully advance in the 
     workforce;
       ``(2) assist adults in the completion of a secondary school 
     education (or its equivalent) and the transition to a 
     postsecondary educational institution;
       ``(3) increase the basic reading, writing, speaking, and 
     math skills of parents to enable them to support the 
     educational development of their children and make informed 
     choices regarding their children's education; and
       ``(4) assist immigrants who are not proficient in English 
     in improving their reading, writing, speaking, and math 
     skills and acquiring an understanding of the American free 
     enterprise system, individual freedom, and the 
     responsibilities of citizenship.

     ``SEC. 203. DEFINITIONS.

       ``In this title:
       ``(1) Adult basic skills and family literacy education 
     programs.--The term `adult basic skills and family literacy 
     education programs' means a sequence of academic instruction 
     and educational services below the postsecondary level that 
     increase an individual's ability to read, write, and speak in 
     English and perform mathematical computations leading to a 
     level of proficiency equivalent to secondary school 
     completion that is provided for individuals--
       ``(A) who are at least 16 years of age;
       ``(B) who are not enrolled or required to be enrolled in 
     secondary school under State law; and
       ``(C) who--
       ``(i) lack sufficient mastery of basic reading, writing, 
     speaking, and math skills to enable the individuals to 
     function effectively in society;
       ``(ii) do not have a secondary school diploma or the 
     General Equivalency Diploma (GED) (including recognized 
     alternative standards for individuals with disabilities), and 
     have not achieved an equivalent level of education; or
       ``(iii) are unable to read, write, or speak the English 
     language.
       ``(2) Eligible agency.--The term `eligible agency'--
       ``(A) means the sole entity or agency in a State or an 
     outlying area responsible for administering or supervising 
     policy for adult basic skills and family literacy education 
     programs in the State or outlying area, respectively, 
     consistent with the law of the State or outlying area, 
     respectively; and
       ``(B) may be the State educational agency, the State agency 
     responsible for administering workforce investment 
     activities, or the State agency responsible for administering 
     community or technical colleges.
       ``(3) Eligible provider.--The term `eligible provider' 
     means--
       ``(A) a local educational agency;
       ``(B) a community-based or faith-based organization of 
     demonstrated effectiveness;
       ``(C) a volunteer literacy organization of demonstrated 
     effectiveness;
       ``(D) an institution of higher education;
       ``(E) a public or private educational agency;
       ``(F) a library;
       ``(G) a public housing authority;
       ``(H) an institution that is not described in any of 
     subparagraphs (A) through (G) and has the ability to provide 
     adult basic skills and family literacy education programs to 
     adults and families; or
       ``(I) a consortium of the agencies, organizations, 
     institutions, libraries, or authorities described in any of 
     subparagraphs (A) through (H).
       ``(4) English language acquisition program.--The term 
     `English language acquisition program' means a program of 
     instruction designed to help individuals with limited English 
     proficiency achieve competence in reading, writing, and 
     speaking the English language.
       ``(5) Essential components of reading instruction.--The 
     term `essential components of reading instruction' has the 
     meaning given to that term in section 1208 of the Elementary 
     and Secondary Education Act of 1965 (20 U.S.C. 6368).
       ``(6) Family literacy education programs.--The term `family 
     literacy education programs' means educational programs 
     that--
       ``(A) assist parents and students, on a voluntary basis, in 
     achieving the purposes of this title as described in section 
     202; and
       ``(B) are of sufficient intensity in terms of hours and of 
     sufficient duration to make sustainable changes in a family, 
     are based upon

[[Page 10922]]

     scientific research-based principles, and for the purpose of 
     substantially increasing the ability of parents and children 
     to read, write, and speak English integrate--
       ``(i) interactive literacy activities between parents and 
     their children;
       ``(ii) training for parents regarding how to be the primary 
     teacher for their children and full partners in the education 
     of their children;
       ``(iii) parent literacy training that leads to economic 
     self-sufficiency; and
       ``(iv) an age-appropriate education to prepare children for 
     success in school and life experiences.
       ``(7) Governor.--The term `Governor' means the chief 
     executive officer of a State or outlying area.
       ``(8) 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 one individual with a 
     disability.
       ``(9) Individual with limited english proficiency.--The 
     term `individual with limited English proficiency' means an 
     adult or out-of-school youth who has limited ability in 
     reading, writing, speaking, 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.
       ``(10) Institution of higher education.--The term 
     `institution of higher education' has the meaning given to 
     that term in section 101 of the Higher Education Act of 1965 
     (20 U.S.C. 1001).
       ``(11) Literacy.--The term `literacy' means the ability to 
     read, write, and speak the English language with competence, 
     knowledge, and comprehension.
       ``(12) Local educational agency.--The term `local 
     educational agency' has the meaning given to that term in 
     section 9101 of the Elementary and Secondary Education Act of 
     1965 (20 U.S.C. 7801).
       ``(13) Outlying area.--The term `outlying area' has the 
     meaning given to that term in section 101 of this Act.
       ``(14) 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.
       ``(15) Reading.--The term `reading' has the meaning given 
     to that term in section 1208 of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 6368).
       ``(16) Scientifically based reading research.--The term 
     `scientifically based reading research' has the meaning given 
     to that term in section 1208 of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 6368).
       ``(17) Secretary.--The term `Secretary' means the Secretary 
     of Education.
       ``(18) State.--The term `State' means each of the several 
     States of the United States, the District of Columbia, and 
     the Commonwealth of Puerto Rico.
       ``(19) State educational agency.--The term `State 
     educational agency' has the meaning given to that term in 
     section 9101 of the Elementary and Secondary Education Act of 
     1965 (20 U.S.C. 7801).
       ``(20) Workplace literacy program.--The term `workplace 
     literacy program' means an educational program that is 
     offered in collaboration between eligible providers and 
     employers or employee organizations for the purpose of 
     improving the productivity of the workforce through the 
     improvement of reading, writing, speaking, and math skills.

     ``SEC. 204. HOME SCHOOLS.

       ``Nothing in this title shall be construed to affect home 
     schools, whether or not a home school is treated as a home 
     school or a private school under State law, or to compel a 
     parent engaged in home schooling to participate in an English 
     language acquisition program, a family literacy education 
     program, or an adult basic skills and family literacy 
     education program.

     ``SEC. 205. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     title $584,300,000 for fiscal year 2004 and such sums as may 
     be necessary for fiscal years 2005 through 2009.

                    ``CHAPTER 1--FEDERAL PROVISIONS

     ``SEC. 211. RESERVATION OF FUNDS; GRANTS TO ELIGIBLE 
                   AGENCIES; ALLOTMENTS.

       ``(a) Reservation of Funds.--From the sums appropriated 
     under section 205 for a fiscal year, the Secretary--
       ``(1) shall reserve 1.75 percent to carry out the National 
     Institute for Literacy Establishment Act;
       ``(2) shall reserve up to 1.72 percent for incentive grants 
     under section 213; and
       ``(3) shall reserve up to 1.55 percent to carry out section 
     242.
       ``(b) Grants to Eligible Agencies.--
       ``(1) In general.--From the sums appropriated under section 
     205 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, subject to 
     subsections (f) and (g).
       ``(2) Purpose of grants.--The Secretary may award a grant 
     under paragraph (1) only if the eligible agency involved 
     agrees to expend the grant in accordance with the provisions 
     of this title.
       ``(c) Allotments.--
       ``(1) Initial allotments.--From the sums appropriated under 
     section 205 and not reserved under subsection (a) for a 
     fiscal year, the Secretary shall allot to each eligible 
     agency having a State plan approved under section 224--
       ``(A) $100,000, in the case of an eligible agency serving 
     an outlying area; and
       ``(B) $250,000, in the case of any other eligible agency.
       ``(2) Additional allotments.--From the sums appropriated 
     under section 205, not reserved under subsection (a), and not 
     allotted under paragraph (1), for a fiscal year, the 
     Secretary shall allot to each eligible agency that receives 
     an initial allotment under paragraph (1) an additional amount 
     that bears the same relationship to such sums 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 purpose of subsection 
     (c)(2), 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 have a secondary school diploma or the 
     General Equivalency Diploma (GED) (including recognized 
     alternative standards for individuals with disabilities); and
       ``(4) is not enrolled in secondary school.
       ``(e) Special Rule.--
       ``(1) In general.--From amounts made available under 
     subsection (c) for the Republic of the Marshall Islands, the 
     Federated States of Micronesia, and the Republic of Palau, 
     the Secretary shall award grants to Guam, American Samoa, the 
     Commonwealth of the Northern Mariana Islands, the Republic of 
     the Marshall Islands, the Federated States of Micronesia, or 
     the Republic of Palau to carry out activities described in 
     this title in accordance with the provisions of this title as 
     determined by the Secretary.
       ``(2) 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 be eligible to receive a grant under this title until 
     an agreement for the extension of United States education 
     assistance under the Compact of Free Association for each of 
     the Freely Associated States becomes effective.
       ``(3) 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) Hold-Harmless Provisions.--
       ``(1) In general.--Notwithstanding subsection (c), and 
     subject to paragraphs (2) and (3), for fiscal year 2004 and 
     each succeeding fiscal year, no eligible agency shall receive 
     an allotment under this title that is less than 90 percent of 
     the allotment the eligible agency received for the preceding 
     fiscal year under this title.
       ``(2) Exception.--An eligible agency that receives for the 
     preceding fiscal year only an initial allotment under 
     subsection 211(c)(1) (and no additional allotment under 
     211(c)(2)) shall receive an allotment equal to 100 percent of 
     the initial allotment.
       ``(3) Ratable reduction.--If for any fiscal year the amount 
     available for allotment under this title is insufficient to 
     satisfy the provisions of paragraph (1), the Secretary shall 
     ratably reduce the payments to all eligible agencies, as 
     necessary.
       ``(g) Reallotment.--The portion of any eligible agency's 
     allotment under this title for a fiscal year that the 
     Secretary determines will not be required for the period such 
     allotment is available for carrying out activities under this 
     title, shall be available for reallotment from time to time, 
     on such dates during such period as the Secretary shall fix, 
     to other eligible agencies in proportion to the original 
     allotments to such agencies under this title for such year.

     ``SEC. 212. PERFORMANCE ACCOUNTABILITY SYSTEM.

       ``(a) Purpose.--The purpose of this section is to establish 
     a comprehensive performance accountability system, composed 
     of the activities described in this section, to assess the 
     effectiveness of eligible agencies in achieving continuous 
     improvement of adult basic skills and family literacy 
     education programs funded under this title, in order to 
     optimize the return on investment of Federal funds in adult 
     basic skills and family literacy education programs.
       ``(b) Eligible Agency Performance Measures.--
       ``(1) In general.--For each eligible agency, the eligible 
     agency performance measures shall consist of--
       ``(A)(i) the core indicators of performance described in 
     paragraph (2)(A); and
       ``(ii) employment performance indicators identified by the 
     eligible agency under paragraph (2)(B); and
       ``(B) an eligible agency adjusted level of performance for 
     each indicator described in subparagraph (A).
       ``(2) Indicators of performance.--

[[Page 10923]]

       ``(A) Core indicators of performance.--The core indicators 
     of performance shall include the following:
       ``(i) Measurable improvements in basic skill levels in 
     reading, writing, and speaking the English language and math, 
     and English language acquisition leading to proficiency in 
     each skill.
       ``(ii) Receipt of a secondary school diploma or the General 
     Equivalency Diploma (GED) (including recognized alternative 
     standards for individuals with disabilities).
       ``(iii) Placement in postsecondary education or other 
     training programs.
       ``(B) Employment performance indicators.--Consistent with 
     applicable Federal and State privacy laws, an eligible agency 
     shall identify in the State plan the following individual 
     participant employment performance indicators--
       ``(i) entry into employment;
       ``(ii) retention in employment; and
       ``(iii) increase in earnings.
       ``(3) Levels of performance.--
       ``(A) Eligible agency adjusted levels of performance for 
     core indicators.--
       ``(i) In general.--For each eligible agency submitting a 
     State plan, there shall be established, in accordance with 
     this subparagraph, levels of performance for each of the core 
     indicators of performance described in paragraph (2)(A) for 
     adult basic skills and family literacy education programs 
     authorized under this title. The levels of performance 
     established under this subparagraph shall, at a minimum--

       ``(I) be expressed in an objective, quantifiable, and 
     measurable form; and
       ``(II) show the progress of the eligible agency toward 
     continuously and significantly improving the agency's 
     performance outcomes in an objective, quantifiable, and 
     measurable form.

       ``(ii) Identification in state plan.--Each eligible agency 
     shall identify, in the State plan submitted under section 
     224, expected levels of performance for each of the core 
     indicators of performance for the first 3 program years 
     covered by the State plan.
       ``(iii) Agreement on eligible agency adjusted levels of 
     performance for first 3 years.--In order to ensure an optimal 
     return on the investment of Federal funds in adult basic 
     skills and family literacy education programs authorized 
     under this title, the Secretary and each eligible agency 
     shall reach agreement on levels of student proficiency for 
     each of the core indicators of performance, for the first 3 
     program years covered by the State plan, taking into account 
     the levels identified in the State plan under clause (ii) and 
     the factors described in clause (iv). The levels agreed to 
     under this clause shall be considered to be the eligible 
     agency adjusted levels of performance for the eligible agency 
     for such years and shall be incorporated into the State plan 
     prior to the approval of such plan.
       ``(iv) Factors.--The agreement described in clause (iii) or 
     (v) shall take into account--

       ``(I) how the levels involved compare with the eligible 
     agency's adjusted levels of performance, taking into account 
     factors including the characteristics of participants when 
     the participants entered the program; and
       ``(II) the extent to which such levels promote continuous 
     and significant improvement in performance on the student 
     proficiency measures used by such eligible agency and ensure 
     optimal return on the investment of Federal funds.

       ``(v) Agreement on eligible agency adjusted levels of 
     performance for second 3 years.--Prior to the fourth program 
     year covered by the State plan, the Secretary and each 
     eligible agency shall reach agreement on levels of student 
     proficiency for each of the core indicators of performance 
     for the fourth, fifth, and sixth program years covered by the 
     State plan, taking into account the factors described in 
     clause (iv). The levels agreed to under this clause shall be 
     considered to be the eligible agency adjusted levels of 
     performance for the eligible agency for such years and shall 
     be incorporated into the State plan.
       ``(vi) Revisions.--If unanticipated circumstances arise in 
     a State resulting in a significant change in the factors 
     described in clause (iv)(I), the eligible agency may request 
     that the eligible agency adjusted levels of performance 
     agreed to under clause (iii) or (v) be revised.
       ``(B) Levels of employment performance.--The eligible 
     agency shall identify, in the State plan, eligible agency 
     levels of performance for each of the employment performance 
     indicators described in paragraph (2)(B). Such levels shall 
     be considered to be eligible agency adjusted levels of 
     performance for purposes of this title.
       ``(c) Report.--
       ``(1) In general.--Each eligible agency that receives a 
     grant under section 211(b) shall annually prepare and submit 
     to the Secretary, the Governor, the State legislature, 
     eligible providers, and the general public within the State, 
     a report on the progress of the eligible agency in achieving 
     eligible agency performance measures, including the 
     following:
       ``(A) Information on the levels of performance achieved by 
     the eligible agency with respect to the core indicators of 
     performance and employment performance indicators.
       ``(B) The number and type of each eligible provider that 
     receives funding under such grant.
       ``(2) Information dissemination.--The Secretary--
       ``(A) shall make the information contained in such reports 
     available to the general public through publication and other 
     appropriate methods;
       ``(B) shall disseminate State-by-State comparisons of the 
     information; and
       ``(C) shall provide the appropriate committees of the 
     Congress with copies of such reports.

     ``SEC. 213. INCENTIVE GRANTS FOR STATES.

       ``(a) In General.--From funds appropriated under section 
     211(a)(2), the Secretary may award grants to States for 
     exemplary performance in carrying out programs under this 
     title. Such awards shall be based on States meeting or 
     exceeding the core indicators of performance established 
     under section 212(b)(2)(A) and may be based on the 
     performance of the State in serving populations, such as 
     those described in section 224(b)(10), including the levels 
     of service provided and the performance outcomes, and such 
     other factors relating to the performance of the State under 
     this title as the Secretary determines appropriate.
       ``(b) Use of Funds.--The funds awarded to a State under 
     this paragraph may be used to carry out any activities 
     authorized under this title, including demonstrations and 
     innovative programs for hard-to-serve populations.

                     ``CHAPTER 2--STATE PROVISIONS

     ``SEC. 221. STATE ADMINISTRATION.

       ``Each eligible agency shall be responsible for the 
     following activities under this title:
       ``(1) The development, submission, implementation, and 
     monitoring 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 title.
       ``(3) Coordination and avoidance of duplication with other 
     Federal and State education, training, corrections, public 
     housing, and social service programs.

     ``SEC. 222. STATE DISTRIBUTION OF FUNDS; MATCHING 
                   REQUIREMENT.

       ``(a) State Distribution of Funds.--Each eligible agency 
     receiving a grant under this title for a fiscal year--
       ``(1) shall use an amount not less than 82.5 percent of the 
     grant funds to award grants and contracts under section 231 
     and to carry out section 225, of which not more than 10 
     percent of such amount shall be available to carry out 
     section 225;
       ``(2) shall use not more than 12.5 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 $75,000, whichever is greater, for the administrative 
     expenses of the eligible agency.
       ``(b) Matching Requirement.--
       ``(1) In general.--In order to receive a grant from the 
     Secretary under section 211(b), each eligible agency shall 
     provide, for the costs to be incurred by the eligible agency 
     in carrying out the adult basic skills and family literacy 
     education programs for which the grant is awarded, a non-
     Federal contribution in an amount at least equal to--
       ``(A) in the case of an eligible agency serving an outlying 
     area, 12 percent of the total amount of funds expended for 
     adult basic skills and family literacy education programs in 
     the outlying area, except that the Secretary may decrease the 
     amount of funds required under this subparagraph for an 
     eligible agency; and
       ``(B) in the case of an eligible agency serving a State, 25 
     percent of the total amount of funds expended for adult basic 
     skills and family literacy education programs in the State.
       ``(2) Non-federal contribution.--An eligible agency's non-
     Federal contribution required under paragraph (1) may be 
     provided in cash or in kind, fairly evaluated, and shall 
     include only non-Federal funds that are used for adult basic 
     skills and family literacy education programs in a manner 
     that is consistent with the purpose of this title.

     ``SEC. 223. STATE LEADERSHIP ACTIVITIES.

       ``(a) In General.--Each eligible agency may use funds made 
     available under section 222(a)(2) for any of the following 
     adult basic skills and family literacy education programs:
       ``(1) The establishment or operation of professional 
     development programs to improve the quality of instruction 
     provided pursuant to local activities required under section 
     231(b), including instruction incorporating the essential 
     components of reading instruction and instruction provided by 
     volunteers or by personnel of a State or outlying area.
       ``(2) The provision of technical assistance to eligible 
     providers of adult basic skills and family literacy education 
     programs for development and dissemination of scientific 
     research-based instructional practices in reading, writing, 
     speaking, math, and English language acquisition programs.
       ``(3) The provision of assistance to eligible providers in 
     developing, implementing, and reporting measurable progress 
     in achieving the objectives of this title.
       ``(4) The provision of technology assistance, including 
     staff training, to eligible providers of adult basic skills 
     and family literacy education programs, including distance 
     learning activities, to enable the eligible providers to 
     improve the quality of such activities.
       ``(5) The development and implementation of technology 
     applications or distance learning, including professional 
     development to support the use of instructional technology.
       ``(6) Coordination with other public programs, including 
     welfare-to-work, workforce development, and job training 
     programs.
       ``(7) Coordination with existing support services, such as 
     transportation, child care, and

[[Page 10924]]

     other assistance designed to increase rates of enrollment in, 
     and successful completion of, adult basic skills and family 
     literacy education programs, for adults enrolled in such 
     activities.
       ``(8) The development and implementation of a system to 
     assist in the transition from adult basic education to 
     postsecondary education.
       ``(9) Activities to promote workplace literacy programs.
       ``(10) Activities to promote and complement local outreach 
     initiatives described in section 242(7).
       ``(11) Other activities of statewide significance, 
     including assisting eligible agencies in achieving progress 
     in improving the skill levels of adults who participate in 
     programs under this title.
       ``(b) Coordination.--In carrying out this section, eligible 
     agencies shall coordinate where possible, and avoid 
     duplicating efforts, in order to maximize the impact of the 
     activities described in subsection (a).
       ``(c) State-Imposed Requirements.--Whenever a State or 
     outlying area implements any rule or policy relating to the 
     administration or operation of a program authorized under 
     this title that has the effect of imposing a requirement that 
     is not imposed under Federal law (including any rule or 
     policy based on a State or outlying area interpretation of a 
     Federal statute, regulation, or guideline), the State or 
     outlying area shall identify, to eligible providers, the rule 
     or policy as being imposed by the State or outlying area.

     ``SEC. 224. STATE PLAN.

       ``(a) 6-Year Plans.--
       ``(1) In general.--Each eligible agency desiring a grant 
     under this title for any fiscal year shall submit to, or have 
     on file with, the Secretary a 6-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.--The eligible agency shall include in 
     the State plan or any revisions to the State plan--
       ``(1) an objective assessment of the needs of individuals 
     in the State or outlying area for adult basic skills and 
     family literacy education programs, including individuals 
     most in need or hardest to serve;
       ``(2) a description of the adult basic skills and family 
     literacy education programs that will be carried out with 
     funds received under this title;
       ``(3) a description of how the eligible agency will 
     evaluate and measure annually the effectiveness and 
     improvement of the adult basic skills and family literacy 
     education programs based on the performance measures 
     described in section 212 including--
       ``(A) how the eligible agency will evaluate and measure 
     annually such effectiveness on a grant-by-grant basis; and
       ``(B) how the eligible agency--
       ``(i) will hold eligible providers accountable regarding 
     the progress of such providers in improving the academic 
     achievement of participants in adult education programs under 
     this title and regarding the core indicators of performance 
     described in section 212(b)(2)(A); and
       ``(ii) will use technical assistance, sanctions, and 
     rewards (including allocation of grant funds based on 
     performance and termination of grant funds based on 
     nonperformance);
       ``(4) a description of the performance measures described 
     in section 212 and how such performance measures have 
     significantly improved adult basic skills and family literacy 
     education programs in the State or outlying area;
       ``(5) an assurance that the eligible agency will, in 
     addition to meeting all of the other requirements of this 
     title, award not less than one grant under this title to an 
     eligible provider that--
       ``(A) offers flexible schedules and necessary support 
     services (such as child care and transportation) to enable 
     individuals, including individuals with disabilities, or 
     individuals with other special needs, to participate in adult 
     basic skills and family literacy education programs; and
       ``(B) attempts to coordinate with support services that are 
     not provided under this title prior to using funds for adult 
     basic skills and family literacy education programs provided 
     under this title for support services;
       ``(6) an assurance that the funds received under this title 
     will not be expended for any purpose other than for 
     activities under this title;
       ``(7) a description of how the eligible agency will fund 
     local activities in accordance with the measurable goals 
     described in section 231(d);
       ``(8) an assurance that the eligible agency will expend the 
     funds under this title only in a manner consistent with 
     fiscal requirements in section 241;
       ``(9) a description of the process that will be used for 
     public participation and comment with respect to the State 
     plan, which process--
       ``(A) shall include consultation with the State workforce 
     investment board, the State board responsible for 
     administering community or technical colleges, the Governor, 
     the State educational agency, the State board or agency 
     responsible for administering block grants for temporary 
     assistance to needy families under title IV of the Social 
     Security Act, the State council on disabilities, the State 
     vocational rehabilitation agency, other State agencies that 
     promote the improvement of adult basic skills and family 
     literacy education programs, and direct providers of such 
     programs; and
       ``(B) may include consultation with the State agency on 
     higher education, institutions responsible for professional 
     development of adult basic skills and family literacy 
     education programs instructors, representatives of business 
     and industry, refugee assistance programs, and faith-based 
     organizations;
       ``(10) a description of the eligible agency's strategies 
     for serving populations that include, at a minimum--
       ``(A) low-income individuals;
       ``(B) individuals with disabilities;
       ``(C) the unemployed;
       ``(D) the underemployed; and
       ``(E) individuals with multiple barriers to educational 
     enhancement, including individuals with limited English 
     proficiency;
       ``(11) a description of how the adult basic skills and 
     family literacy education programs that will be carried out 
     with any funds received under this title will be integrated 
     with other adult education, career development, and 
     employment and training activities in the State or outlying 
     area served by the eligible agency;
       ``(12) a description of the steps the eligible agency will 
     take to ensure direct and equitable access, as required in 
     section 231(c)(1), including--
       ``(A) how the State will build the capacity of community-
     based and faith-based organizations to provide adult basic 
     skills and family literacy education programs; and
       ``(B) how the State will increase the participation of 
     business and industry in adult basic skills and family 
     literacy education programs; and
       ``(13) a description of how the eligible agency will 
     consult with any State agency responsible for postsecondary 
     education to develop adult education that prepares students 
     to enter postsecondary education without the need for 
     remediation upon completion of secondary school equivalency 
     programs.
       ``(c) Plan Revisions.--When changes in conditions or other 
     factors require substantial revisions to an approved State 
     plan, the eligible agency shall submit the revisions of 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, the chief State school officer, or the 
     State officer responsible for administering community or 
     technical colleges, or outlying area for review and comment; 
     and
       ``(2) ensure that any comments regarding the State plan by 
     the Governor, the chief State school officer, or the State 
     officer responsible for administering community or technical 
     colleges, and any revision to the State plan, are submitted 
     to the Secretary.
       ``(e) Plan Approval.--A State plan submitted to the 
     Secretary shall be approved by the Secretary only if the plan 
     is consistent with the specific provisions of this title.

     ``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 and 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 correctional institutions and for other 
     institutionalized individuals, including academic programs 
     for--
       ``(1) basic skills education;
       ``(2) special education programs as determined by the 
     eligible agency;
       ``(3) reading, writing, speaking, and math programs; and
       ``(4) secondary school credit or diploma programs or their 
     recognized equivalent.
       ``(c) Priority.--Each eligible agency that is using 
     assistance provided under this section to carry out a program 
     for criminal offenders within a correctional institution 
     shall give priority to serving individuals who are likely to 
     leave the correctional institution within 5 years of 
     participation in the program.
       ``(d) Definition of Criminal Offender.--For purposes of 
     this section:
       ``(1) 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.
       ``(2) Criminal offender.--The term `criminal offender' 
     means any individual who is charged with, or convicted of, 
     any criminal offense.

                     ``CHAPTER 3--LOCAL PROVISIONS

     ``SEC. 231. GRANTS AND CONTRACTS FOR ELIGIBLE PROVIDERS.

       ``(a) Grants and Contracts.--From grant funds made 
     available under section 211(b), each eligible agency shall 
     award multiyear grants or contracts, on a competitive basis, 
     to eligible providers within the State or outlying area that 
     meet the conditions and requirements of this title to enable 
     the eligible providers to develop, implement, and improve 
     adult basic skills and family literacy education programs 
     within the State.
       ``(b) Local Activities.--The eligible agency shall require 
     eligible providers receiving a grant or contract under 
     subsection (a) to establish or operate one or more programs 
     of instruction that provide services or instruction in one or 
     more of the following categories:
       ``(1) Adult basic skills and family literacy education 
     programs, including essential workplace

[[Page 10925]]

     skills (including proficiency in reading, writing, speaking, 
     and math).
       ``(2) Workplace literacy programs.
       ``(3) English language acquisition programs.
       ``(4) family literacy education programs.
       ``(c) Direct and Equitable Access; Same Process.--Each 
     eligible agency receiving funds under this title shall ensure 
     that--
       ``(1) all eligible providers have direct and equitable 
     access to apply for grants or contracts under this section; 
     and
       ``(2) the same grant or contract announcement process and 
     application process is used for all eligible providers in the 
     State or outlying area.
       ``(d) Measurable Goals.--The eligible agency shall require 
     eligible providers receiving a grant or contract under 
     subsection (a) to demonstrate--
       ``(1) the eligible provider's measurable goals for 
     participant outcomes to be achieved annually on the core 
     indicators of performance and employment performance 
     indicators described in section 212(b)(2);
       ``(2) the past effectiveness of the eligible provider in 
     improving the basic academic skills of adults and, for 
     eligible providers receiving grants in the prior year, the 
     success of the eligible provider receiving funding under this 
     title in meeting or exceeding its performance goals in the 
     prior year;
       ``(3) the commitment of the eligible provider to serve 
     individuals in the community who are the most in need of 
     basic academic skills instruction services, including 
     individuals who are low-income or have minimal reading, 
     writing, speaking, and math skills, or limited English 
     proficiency.
       ``(4) whether or not the program--
       ``(A) is of sufficient intensity and duration for 
     participants to achieve substantial learning gains; and
       ``(B) uses instructional practices that include the 
     essential components of reading instruction;
       ``(5) whether educational practices are based on 
     scientifically based research;
       ``(6) whether the activities of the eligible provider 
     effectively employ advances in technology, as appropriate, 
     including the use of computers;
       ``(7) whether the activities provide instruction in real-
     life contexts, to ensure that an individual has the skills 
     needed to compete in the workplace and exercise the rights 
     and responsibilities of citizenship;
       ``(8) whether the activities are staffed by well-trained 
     instructors, counselors, and administrators;
       ``(9) whether the activities are coordinated with other 
     available resources in the community, such as through strong 
     links with elementary schools and secondary schools, 
     postsecondary educational institutions, one-stop centers, job 
     training programs, community-based and faith-based 
     organizations, and social service agencies;
       ``(10) whether the activities 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;
       ``(11) whether the activities include a high-quality 
     information management system that has the capacity to report 
     measurable participant outcomes and to monitor program 
     performance against the performance measures established by 
     the eligible agency;
       ``(12) whether the local communities have a demonstrated 
     need for additional English language acquisition programs;
       ``(13) the capacity of the eligible provider to produce 
     valid information on performance results, including 
     enrollments and measurable participant outcomes;
       ``(14) whether adult basic skills and family literacy 
     education programs offer rigorous reading, writing, speaking, 
     and math content that are based on scientific research; and
       ``(15) whether applications of technology, and services to 
     be provided by the eligible providers, is of sufficient 
     intensity and duration to increase the amount and quality of 
     learning and lead to measurable learning gains within 
     specified time periods.

     ``SEC. 232. LOCAL APPLICATION.

       ``Each eligible provider desiring a grant or contract under 
     this title 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 title 
     will be spent consistent with the requirements of this title;
       ``(2) a description of any cooperative arrangements the 
     eligible provider has with other agencies, institutions, or 
     organizations for the delivery of adult basic skills and 
     family literacy education programs; and
       ``(3) each of the demonstrations required by section 
     231(d).

     ``SEC. 233. LOCAL ADMINISTRATIVE COST LIMITS.

       ``(a) In General.--Subject to subsection (b), of the amount 
     that is made available under this title to an eligible 
     provider--
       ``(1) at least 95 percent shall be expended for carrying 
     out adult basic skills and family literacy education 
     programs; and
       ``(2) the remaining amount shall be used for planning, 
     administration, personnel and professional development, 
     development of measurable goals in reading, writing, 
     speaking, and math, 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 may 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 basic skills and family literacy education programs 
     under this title shall supplement and not supplant other 
     State or local public funds expended for adult basic skills 
     and family literacy education programs.
       ``(b) Maintenance of Effort.--
       ``(1) In general.--
       ``(A) Determination.--An eligible agency may receive funds 
     under this title for any fiscal year if the Secretary finds 
     that the fiscal effort per student or the aggregate 
     expenditures of such eligible agency for activities under 
     this title, in the second preceding fiscal year, were not 
     less than 90 percent of the fiscal effort per student or the 
     aggregate expenditures of such eligible agency for adult 
     basic skills and family literacy education programs, in the 
     third preceding fiscal year.
       ``(B) Proportionate reduction.--Subject to paragraphs (2), 
     (3), and (4), for any fiscal year with respect to which the 
     Secretary determines under subparagraph (A) that the fiscal 
     effort or the aggregate expenditures of an eligible agency 
     for the preceding program year were less than such effort or 
     expenditures for the second preceding program year, the 
     Secretary--
       ``(i) shall determine the percentage decreases in such 
     effort or in such expenditures; and
       ``(ii) shall decrease the payment made under this title for 
     such program year to the agency for adult basic skills and 
     family literacy education programs by the lesser of such 
     percentages.
       ``(2) Computation.--In computing the fiscal effort and 
     aggregate expenditures under paragraph (1), the Secretary 
     shall exclude capital expenditures and special one-time 
     project costs.
       ``(3) Decrease in federal support.--If the amount made 
     available for adult basic skills and family literacy 
     education programs under this title for a fiscal year is less 
     than the amount made available for adult basic skills and 
     family literacy education programs under this title for the 
     preceding fiscal year, then the fiscal effort per student and 
     the aggregate expenditures of an eligible agency required in 
     order to avoid a reduction under paragraph (1)(B) shall be 
     decreased by the same percentage as the percentage decrease 
     in the amount so made available.
       ``(4) Waiver.--The Secretary may waive the requirements of 
     this subsection for not more than 1 fiscal year, if the 
     Secretary determines that a waiver would be equitable due to 
     exceptional or uncontrollable circumstances, such as a 
     natural disaster or an unforeseen and precipitous decline in 
     the financial resources of the State or outlying area of the 
     eligible agency. If the Secretary grants a waiver under the 
     preceding sentence for a fiscal year, the level of effort 
     required under paragraph (1) shall not be reduced in the 
     subsequent fiscal year because of the waiver.

     ``SEC. 242. NATIONAL LEADERSHIP ACTIVITIES.

       ``The Secretary shall establish and carry out a program of 
     national leadership activities that may include the 
     following:
       ``(1) Technical assistance, on request, including 
     assistance--
       ``(A) on requests to volunteer community- and faith-based 
     organizations, including but not limited to, improving their 
     fiscal management, research-based instruction, and reporting 
     requirements, and the development of measurable objectives to 
     carry out the requirements of this title;
       ``(B) in developing valid, measurable, and reliable 
     performance data, and using performance information for the 
     improvement of adult basic skills and family literacy 
     education programs;
       ``(C) on adult education professional development; and
       ``(D) in using distance learning and improving the 
     application of technology in the classroom.
       ``(2) Providing for the conduct of research on national 
     literacy basic skill acquisition levels among adults, 
     including the number of adults functioning at different 
     levels of reading proficiency.
       ``(3) Improving the coordination, efficiency, and 
     effectiveness of adult education and workforce development 
     services at the national, State, and local levels.
       ``(4) Determining how participation in adult basic skills 
     and family literacy education programs prepares individuals 
     for entry into and success in postsecondary education and 
     employment, and in the case of prison-based services, the 
     effect on recidivism.
       ``(5) Evaluating how different types of providers, 
     including community and faith-based organizations or private 
     for-profit agencies measurably improve the skills of 
     participants in adult basic skills and family literacy 
     education programs.
       ``(6) Identifying model integrated basic and workplace 
     skills education programs, coordinated literacy and 
     employment services, and effective strategies for serving 
     adults with disabilities.
       ``(7) Supporting the development of an entity that would 
     produce and distribute technology-based programs and 
     materials for adult basic skills and family literacy 
     education programs using an intercommunication system, as 
     that term is defined in section 397 of the Communications Act 
     of 1934 (47 U.S.C. 397), and expand the effective outreach 
     and use of such programs and materials to adult education 
     eligible providers.
       ``(8) Initiating other activities designed to improve the 
     measurable quality and effectiveness of adult basic skills 
     and family literacy education programs nationwide.''.

[[Page 10926]]



                PART B--NATIONAL INSTITUTE FOR LITERACY

     SEC. 211. SHORT TITLE; PURPOSE.

       (a) Short Title.--This part may be cited as the ``National 
     Institute for Literacy Establishment Act''.
       (b) Purpose.--The purpose of this part is to establish a 
     National Institute for Literacy to provide national 
     leadership in promoting reading research, reading 
     instruction, and professional development in reading based on 
     scientifically based research by--
       (1) disseminating widely information on scientifically 
     based reading research to improve academic achievement for 
     children, youth, and adults;
       (2) identifying and disseminating information about 
     schools, local educational agencies, and State educational 
     agencies that have effectively developed and implemented 
     classroom reading programs that meet the requirements of 
     subpart 1 of part B of title I of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 6361 et seq.), 
     including those State educational agencies, local educational 
     agencies, and schools that are identified as effective 
     through the External Evaluation of Reading First under 
     section 1205 of the Elementary and Secondary Education Act of 
     1965 (20 U.S.C. 6365);
       (3) serving as a national resource for information on 
     reading instruction programs that contain the essential 
     components of reading instruction as supported by 
     scientifically based reading research, and that can lead to 
     improved reading outcomes for children, youth, and adults;
       (4) developing print and electronic materials that describe 
     and model the application of scientifically based reading 
     research;
       (5) providing national and regional reading leadership for 
     State and local personnel for the application and 
     implementation of scientifically based reading research;
       (6) coordinating efforts among Federal agencies, especially 
     the Department of Labor, the Department of Health and Human 
     Services, and the National Institute of Child Health and 
     Human Development, that provide reading programs, conduct 
     research, and provide services to recipients of Federal 
     financial assistance under titles I and III of the Elementary 
     and Secondary Education Act of 1965, the Head Start Act, the 
     Individuals with Disabilities Education Act, and the Adult 
     Basic Skills and Family Literacy Education Act, and each 
     Bureau funded school (as defined in title XI of the Education 
     Amendments of 1978 (25 U.S.C. 2001 et seq.)); and
       (7) informing the Congress, Federal departments and 
     agencies, schools of education, and the public of successful 
     local, State, and Federal program activities in reading 
     instruction that are determined to be effective based on the 
     findings of scientifically based reading research.

     SEC. 212. ESTABLISHMENT.

       (a) In General.--There is established within the executive 
     branch an independent establishment (as defined in title 104 
     of title 5, United States Code) to be known as the ``National 
     Institute for Literacy''. The Institute shall be 
     administered, in accordance with this part, under the 
     supervision and direction of a Director in consultation with 
     the Board, and subject to all fiscal and ethical requirements 
     of an executive branch agency.
       (b) Director.--
       (1) Appointment.--The Board (established under section 216 
     of this part), in consultation with the Secretary of 
     Education, shall appoint a Director of the Institute, who has 
     an understanding of, supports, and is familiar with 
     scientifically based reading research, instruction, and 
     professional development applicable to children, youth, and 
     adults.
       (2) Pay.--The Director of the Institute shall receive the 
     rate of basic pay for level IV of the Executive Schedule.
       (3) Term.--The Director of the Institute shall be appointed 
     for an initial term of 3 years and, if approved by the Board, 
     may serve not more than 1 additional term of 3 years.

     SEC. 213. ADMINISTRATION.

       (a) In General.--The Institute shall be administered by the 
     Director of the Institute in consultation with the Board.
       (b) Authority.--Subject to the general policies, decisions, 
     findings, and determinations of the Board, the Director of 
     the Institute shall be responsible for administering the 
     Institute. The Director may delegate the powers granted under 
     this paragraph to an officer, employee, or office of the 
     Institute. The Director shall--
       (1) provide leadership for the Institute, consistent with 
     the purposes defined in section 211;
       (2) appoint and supervise all employees in the Institute, 
     including attorneys, to provide legal aid and service to the 
     Board and the Institute, and to represent the Board and the 
     Institute in any case in court;
       (3) appoint the heads of offices in the Institute with the 
     approval of the Board;
       (4) assign responsibility to carry out the duties of the 
     Institute among officers and employees, and offices of the 
     Institute;
       (5) prepare requests for appropriations for the Institute 
     and submit those requests to the President and the Congress 
     with the prior approval of the Board;
       (6) oversee the expenditure of all funds allocated for the 
     Institute to carry out the purposes under section 211; and
       (7) confer regularly with the Board on matters of policy, 
     personnel, and progress in carrying out the mission of the 
     Institute.
       (c) Agency Designation.--For purposes of section 552b of 
     title 5, United States Code, the Institute is deemed to be an 
     agency.
       (d) Budget Requests.--In each annual request for 
     appropriations by the President, the Director of the 
     Institute, in consultation with the Board, shall submit a 
     budget to carry out the mission of the Institute including--
       (1) the amount requested by the Institute in its budgetary 
     presentation to the Office of Management and Budget; and
       (2) an assessment of the budgetary needs of the Institute.
       (e) Budget Transmittal to Congress.--The Institute shall 
     transmit to the Congress copies of budget estimates, 
     requests, and information (including personnel needs), 
     legislative recommendations, prepared testimony for 
     congressional hearings, and comments on legislation.
       (f) Offices.--The Institute shall have offices separate 
     from the offices of the Department of Education.
       (g) Administrative Support.--
       (1) In general.--The Secretary of Education shall provide 
     administrative support for the Institute, including the 
     administration of grants, contracts and cooperative 
     agreements, personnel, legal counsel, and payroll after the 
     Office of Management and Budget has approved the Institute's 
     budget.
       (2) Other departments and agencies.--In addition to any 
     support obtained under paragraph (1) from the Secretary of 
     Education, the Institute may obtain administrative support 
     services from other departments and agencies within the 
     executive branch if determined by the Director of the 
     Institute, in consultation with the Board, to be in the best 
     interest of the Institute.

     SEC. 214. DUTIES.

       (a) In General.--In order to provide leadership for the 
     improvement and expansion of the system for delivery of 
     scientifically based reading instructional practices, the 
     Institute shall--
       (1) establish a national electronic database of effective 
     reading programs for children, youth, and adults that include 
     the essential components of reading instruction, and 
     disseminate such information to parents, teachers, State and 
     Federal elected officials, and the public;
       (2) develop print and electronic materials for professional 
     development that provide applications of scientifically based 
     reading research, and instructional practices in reading for 
     children, youth, and adults;
       (3) provide, when requested, policy and technical 
     assistance to the Congress, school Boards, Federal agencies, 
     State departments of education, adult education programs, 
     local school districts, local public and private schools, and 
     schools of education, on scientifically based reading 
     instructional practices including diagnostic and assessment 
     instruments and instructional materials;
       (4) collaborate and support Federal research programs in 
     reading instruction, including, where appropriate, those 
     areas of study addressed by the National Institute of Child 
     Health and Human Development, the Institute for Education 
     Sciences, the National Science Foundation, the Department of 
     Labor, and the National Research Council;
       (5) coordinate with the Department of Education, the 
     Department of Labor, the Department of Health and Human 
     Services, and the National Institute of Child Health and 
     Human Development on all programs that include improving 
     reading instructional practices for children, youth, and 
     adults, and teacher training in reading instructional 
     practices;
       (6) use and support the collection of the best possible 
     information in carrying out this section, and where 
     appropriate, including reviews of research on instruction 
     using the criteria for quality identified by the Institute 
     for Education Sciences; and
       (7) conduct reviews of research, including randomized field 
     trials, on reading programs, and conduct reviews of Federal 
     reading policies and reading program implementation using a 
     board of visitors as described in subchapter 300 of the 
     National Science Foundation Administrative Manual.
       (b) 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 other legal 
     entities to carry out the activities of the Institute.
       (c) Relation to Other Laws.--The duties and powers of the 
     Institute under this part are in addition to the duties and 
     powers of the Institute under subparts 1, 2, and 3 of part B 
     of the Elementary and Secondary Education Act of 1965 (20 
     U.S.C. 1201 et seq.) (commonly referred to as Reading First, 
     Early Reading First, and the William F. Goodling Even Start 
     Family Literacy Programs, respectively).

     SEC. 215. LEADERSHIP IN SCIENTIFICALLY BASED READING 
                   INSTRUCTION.

       (a) In General.--The Institute, in consultation with the 
     Board, may award fellowships, with such stipends and 
     allowances as the Director of the Institute considers 
     necessary, to outstanding individuals who are pursuing 
     careers in scientifically based research in reading 
     instruction or pre-service or in-service training in reading 
     instruction, including teaching children and adults to read.
       (b) 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 scientifically based 
     reading instruction for children, youth, and adults, 
     including the training of volunteers in such reading skills 
     instruction.

[[Page 10927]]

       (c) Interns and Volunteers.--The Institute, in consultation 
     with the Board, may award paid and unpaid internships to 
     individuals seeking to assist the Institute in carrying out 
     its mission. Notwithstanding section 1342 of title 31, United 
     States Code, the Institute may accept and use voluntary and 
     uncompensated services as the Institute deems necessary.

     SEC. 216. NATIONAL INSTITUTE FOR LITERACY ADVISORY BOARD.

       (a) Establishment.--
       (1) 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.
       (2) Composition.--The Board shall be comprised of 
     individuals who are not otherwise officers or employees of 
     the Federal Government and who are knowledgeable about 
     scientifically based reading instruction, and the findings of 
     scientifically based reading research. The members of the 
     Board may include--
       (A) representatives from teacher training institutions 
     where scientifically based reading instruction is a major 
     component of pre-service training;
       (B) teachers who have been successful in teaching children 
     to read proficiently;
       (C) members of the business community who have developed 
     successful employee reading instruction programs;
       (D) volunteer tutors in reading who are using 
     scientifically based reading instruction;
       (E) reading researchers who have conducted scientifically 
     based research; and
       (F) other qualified individuals knowledgeable about 
     scientifically based reading instruction, including adult 
     education.
       (b) Duties.--The Board shall--
       (1) work closely with the Director of the Institute to 
     ensure that the purposes of the Institute under section 211 
     are carried out effectively;
       (2) approve the annual report to the Congress;
       (3) provide policy guidance and advice to the Director of 
     the Institute in the administration of the Institute; and
       (4) appoint the Director of the Institute, in consultation 
     with the Secretary.
       (c) Federal Advisory Committee Act.--Except as otherwise 
     provided in this part, the Board established by this section 
     shall be subject to the provisions of the Federal Advisory 
     Committee Act (5 U.S.C. App.).
       (d) Appointments.--
       (1) In general.--Each member of the Board shall be 
     appointed for a term of 3 years, except that the initial 
     terms for members may be 1, 2, or 3 years in order to 
     establish a rotation, in which \1/3\ of the members are 
     selected each year. Any such member may be appointed for not 
     more than 2 consecutive terms.
       (2) 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.
       (e) Quorum.--A majority of the members of the Board shall 
     constitute a quorum, but a lesser number may hold hearings. 
     Any recommendation of the Board may be passed only by a 
     majority of the Board members present.
       (f) Election of Officers.--The Chairperson and Vice 
     Chairperson of the Board shall be elected by the members of 
     the Board. The term of office of the Chairperson and Vice 
     Chairperson shall be 2 years.
       (g) Meetings.--The Board shall meet at the call of the 
     Chairperson, or a majority of the members of the Board, but 
     not less than quarterly.

     SEC. 217. GIFTS, BEQUESTS, AND DEVISES.

       (a) In General.--The Institute may accept, administer, and 
     use gifts or donations of services, money, or property, 
     whether real or personal, tangible or intangible.
       (b) Rules.--The Board, in consultation with the Director of 
     the Institute, 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 the responsibilities of the 
     Institute or employee, or official duties, in a fair and 
     objective manner, or would compromise the integrity or the 
     appearance of the integrity of the Institute's programs or 
     any official involved in those programs.

     SEC. 218. 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.

     SEC. 219. APPLICABILITY OF CERTAIN CIVIL SERVICE LAWS.

       The Director of the Institute and the 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.

     SEC. 220. EXPERTS AND CONSULTANTS.

       The Institute may procure temporary and intermittent 
     services under section 3109(b) of title 5, United States 
     Code.

     SEC. 221. REPORT.

       (a) In General.--The Institute shall submit a biennial 
     report to the Committee on Education and the Workforce of the 
     House of Representatives and the Committee on Labor and Human 
     Resources of the Senate. Each report submitted under this 
     section shall include--
       (1) a comprehensive and detailed description of the 
     Institute's operations, activities, financial condition, and 
     accomplishments in carrying out the purposes of the Institute 
     as specified in section 211, for the period covered by the 
     report; and
       (2) a summary description of how the Institute will advance 
     the purposes of the Institute for the next biennium.
       (b) First Report.--The Institute shall submit a report 
     under this section not later than 1 year after the date of 
     enactment of this part.

     SEC. 222. DEFINITIONS.

       For purposes of this part--
       (1) the term ``Board'' means the National Institute for 
     Literacy Advisory Board;
       (2) the term ``Institute'' means the National Institute for 
     Literacy; and
       (3) the terms ``reading'', ``scientifically based reading 
     research'', and ``essential components of reading 
     instruction'' have the meanings given those terms in section 
     1208 of part B of title I of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 6368).

     SEC. 223. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to administer and 
     carry out this part $6,700,000 for fiscal year 2004 and such 
     sums as may be necessary for each of the 5 succeeding fiscal 
     years.

     SEC. 224. RESERVATION.

       From amounts appropriated to the Institute, the Director of 
     the Institute may use not more than 5 percent of such amounts 
     for information dissemination under section 1207 of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6367).

     SEC. 225. AUTHORITY TO PUBLISH.

       The Institute, including the Board, may prepare, publish, 
     and present (including through oral presentations) such 
     research-based information and research reports as needed to 
     carry out the purposes and mission of the Institute.

             TITLE III--AMENDMENTS TO THE WAGNER-PEYSER ACT

     SEC. 301. AMENDMENTS TO THE WAGNER-PEYSER ACT.

       The Wagner-Peyser Act (29 U.S.C. 49 et. seq.) is amended--
       (1) by striking sections 1 through 13;
       (2) in section 14 by inserting ``of Labor'' after 
     ``Secretary''; and
       (3) by amending section 15 to read as follows:

     ``SEC. 15. WORKFORCE AND LABOR MARKET INFORMATION SYSTEM.

       ``(a) System Content.--
       ``(1) In general.--The Secretary of Labor, in accordance 
     with the provisions of this section, shall oversee the 
     development, maintenance, and continuous improvement of a 
     nationwide workforce and labor market information system 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 employment opportunities and conditions at 
     national, State, and local levels in a timely manner, 
     including statistics on--
       ``(i) employment and unemployment status of national, 
     State, and local populations, including self-employed, part-
     time, and seasonal workers;
       ``(ii) industrial distribution of occupations, as well as 
     current and projected employment opportunities, wages, 
     benefits (where data is available), and skill trends by 
     occupation and industry, with particular attention paid to 
     State and local conditions;
       ``(iii) the incidence of, industrial and geographical 
     location of, and number of workers displaced by, permanent 
     layoffs and plant closings; and
       ``(iv) employment and earnings information maintained in a 
     longitudinal manner to be used for research and program 
     evaluation;
       ``(B) information on State and local employment 
     opportunities, and other appropriate statistical data related 
     to labor market dynamics, which--
       ``(i) shall be current and comprehensive;
       ``(ii) shall meet the needs identified through the 
     consultations described in subparagraphs (A) and (B) of 
     subsection (e)(2); and
       ``(iii) shall meet the needs for the information identified 
     in section 134(d);
       ``(C) technical standards (which the Secretary shall 
     publish annually) 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--
       ``(i) national, State, and local policymaking;
       ``(ii) implementation of Federal policies (including 
     allocation formulas);
       ``(iii) program planning and evaluation; and
       ``(iv) researching labor market dynamics;
       ``(G) wide dissemination of such data, information, and 
     analysis in a user-friendly manner and voluntary technical 
     standards for dissemination mechanisms; and
       ``(H) programs of--
       ``(i) training for effective data dissemination;
       ``(ii) research and demonstration; and

[[Page 10928]]

       ``(iii) programs and technical assistance.
       ``(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) Rule of 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 workforce and labor market 
     information system described in subsection (a) 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 employment 
     statistics for the system, shall carry out the following 
     duties:
       ``(A) Assign responsibilities within the Department of 
     Labor for elements of the workforce and labor market 
     information system described in subsection (a) to ensure that 
     all statistical and administrative data collected is 
     consistent with appropriate Bureau of Labor Statistics 
     standards and definitions.
       ``(B) Actively seek the cooperation of other Federal 
     agencies to establish and maintain mechanisms for ensuring 
     complementarity and nonduplication in the development and 
     operation of statistical and administrative data collection 
     activities.
       ``(C) Eliminate gaps and duplication in statistical 
     undertakings, with the systemization of wage surveys as an 
     early priority.
       ``(D) In collaboration with the Bureau of Labor Statistics 
     and States, develop and maintain the elements of the 
     workforce and labor market information system described in 
     subsection (a), including the development of consistent 
     procedures and definitions for use by the States in 
     collecting the data and information described in 
     subparagraphs (A) and (B) of subsection (a)(1).
       ``(E) Establish procedures for the system to ensure that--
       ``(i) such data and information are timely;
       ``(ii) paperwork and reporting for the system are reduced 
     to a minimum; and
       ``(iii) States and localities are fully involved in the 
     development and continuous improvement of the system at all 
     levels, including ensuring the provision, to such States and 
     localities, of budget information necessary for carrying out 
     their responsibilities under subsection (e).
       ``(c) National Electronic Tools To Provide Services.--The 
     Secretary is authorized to assist in the development of 
     national electronic tools that may be used to facilitate the 
     delivery of core services described in section 134 and to 
     provide workforce information to individuals through the one-
     stop delivery systems descried in section 121 and through 
     other appropriate delivery systems.
       ``(d) Coordination With the States.--
       ``(1) In general.--The Secretary, working through the 
     Bureau of Labor Statistics and the Employment and Training 
     Administration, shall regularly consult with representatives 
     of State agencies carrying out workforce information 
     activities regarding strategies for improving the workforce 
     and labor market information system.
       ``(2) Formal consultations.--At least twice each year, the 
     Secretary, working through the Bureau of Labor Statistics, 
     shall conduct formal consultations regarding programs carried 
     out by the Bureau of Labor Statistics with representatives of 
     each of the 10 Federal regions of the Department of Labor, 
     elected from the State directors affiliated with 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 shall--
       ``(A) designate a single State agency to be responsible for 
     the management of the portions of the workforce and labor 
     market information system described in subsection (a) that 
     comprise a statewide workforce and labor market information 
     system and for the State's participation in the development 
     of the annual plan; and
       ``(B) 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 workforce investment boards about the labor market 
     relevance of the data to be collected and disseminated 
     through the statewide workforce and labor market information 
     system;
       ``(B) consult with State educational agencies and local 
     educational agencies concerning the provision of employment 
     statistics 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 
     workforce and 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 workforce and 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 section 
     136(f)(2) of the Workforce Investment 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) Nonduplication Requirement.--None of the functions 
     and activities carried out pursuant to this section shall 
     duplicate the functions and activities carried out under the 
     Carl D. Perkins Vocational and Applied Technology Education 
     Act (20 U.S.C. 2301 et seq.).
       ``(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 2004 
     through 2009.
       ``(h) Definition.--In this section, the term `local area' 
     means the smallest geographical area for which data can be 
     produced with statistical reliability.''.

         TITLE IV--AMENDMENTS TO THE REHABILITATION ACT OF 1973

     SEC. 401. CHAIRPERSON.

       Section 705(b)(5) of the Rehabilitation Act of 1973 (29 
     U.S.C. 796d(b)(5)) is amended to read as follows:
       ``(5) Chairperson.--The Council shall select a chairperson 
     from among the voting membership of the Council.''.

     SEC. 402. REHABILITATION SERVICES ADMINISTRATION.

       Section 3(a) of the Rehabilitation Act of 1973 (29 U.S.C. 
     702(a)) is amended--
       (1) by striking ``Office of the Secretary'' and inserting 
     ``Department of Education'';
       (2) by striking ``President by and with the advice and 
     consent of the Senate'' and inserting ``Secretary, except 
     that the current Commissioner appointed under the authority 
     existing on the day prior to the date of enactment of this 
     Act may continue to serve in the former capacity''; and
       (3) by striking ``, and the Commissioner shall be the 
     principal officer,''.

     SEC. 403. DIRECTOR.

       (a) In General.--The Rehabilitation Act of 1973 (29 U.S.C. 
     701 et seq.) is amended by striking ``Commissioner'' each 
     place it appears, except in section 21, and inserting 
     ``Director''.
       (b) Exception.--Section 21 of the Rehabilitation Act of 
     1973 (29 U.S.C. 718) is amended--
       (1) in subsection (b)(1)--
       (A) by striking ``Commissioner'' the first place it appears 
     and inserting ``Director of the Rehabilitation Services 
     Administration''; and
       (B) by striking ``(referred to in this subsection as the 
     `Director')''; and
       (2) by striking ``Commissioner and the Director'' each 
     place it appears and inserting ``both such Directors''.

     SEC. 404. STATE GOALS.

       Section 101(a) of the Rehabilitation Act of 1973 (29 U.S.C. 
     721(a)) is amended--
       (1) in paragraph (11)(D)(i) by inserting ``, which may be 
     provided using alternative means of meeting participation 
     (such as video conferences and conference calls)'' before the 
     semicolon; and
       (2) in paragraph (15)--
       (A) in subparagraph (A), by redesignating clauses (ii) and 
     (iii) as clauses (iii) and (iv), respectively, and inserting 
     after clause (i) the following:
       ``(ii) include an assessment of the transition services 
     provided under this Act, and coordinated with transition 
     services under the Individuals with Disabilities Education 
     Act, as to

[[Page 10929]]

     those services meeting the needs of individuals with 
     disabilities.''; and
       (B) by amending subparagraph (D)(i) to read as follows:
       ``(i) the methods to be used to expand and improve the 
     services to individuals with disabilities including--

       ``(I) how a broad range of assistive technology services 
     and assistive technology devices will be provided to such 
     individuals at each stage of the rehabilitative process and 
     how such services and devices will be provided to such 
     individuals on a statewide basis; and
       ``(II) how transition services will be better coordinated 
     with those services under the Individuals with Disabilities 
     Education Act in order to improve transition services for 
     individuals with disabilities served under this Act;''.

     SEC. 405. AUTHORIZATIONS OF APPROPRIATIONS.

       The Rehabilitation Act of 1973 is further amended--
       (1) in section 100(b)(1) by striking ``fiscal years 1999 
     through 2003'' and inserting ``fiscal years 2004 through 
     2009'';
       (2) in section 100(d)(1)(B) by striking ``fiscal year 
     2003'' and inserting ``fiscal year 2009'';
       (3) in section 110(c) by amending paragraph (2) to read as 
     follows:
       ``(2) The sum referred to in paragraph (1) shall be, as 
     determined by the Secretary, 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 2003 through 2009.'';
       (4) in section 112(h) by striking ``fiscal years 1999 
     through 2003'' and inserting ``fiscal years 2004 through 
     2009'';
       (5) in section 201(a) by striking ``fiscal years 1999 
     through 2003'' each place it appears and inserting ``fiscal 
     years 2004 through 2009'';
       (6) in section 302(i) by striking ``fiscal years 1999 
     through 2003'' and inserting ``fiscal years 2004 through 
     2009'';
       (7) in section 303(e) by striking ``fiscal years 1999 
     through 2003'' and inserting ``fiscal years 2004 through 
     2009'';
       (8) in section 304(b) by striking ``fiscal years 1999 
     through 2003'' and inserting ``fiscal years 2004 through 
     2009'';
       (9) in section 305(b) by striking ``fiscal years 1999 
     through 2003'' and insert ``fiscal years 2004 through 2009'';
       (10) in section 405 by striking ``fiscal years 1999 through 
     2003'' and inserting ``fiscal years 2004 through 2009'';
       (11) in section 502(j) by striking ``fiscal years 1999 
     through 2003'' and inserting ``fiscal years 2004 through 
     2009'';
       (12) in section 509(l) by striking ``fiscal years 1999 
     through 2003'' and inserting ``fiscal years 2004 through 
     2009'';
       (13) in section 612 by striking ``fiscal years 1999 through 
     2003'' and inserting ``fiscal years 2004 through 2009'';
       (14) in section 628 by striking ``fiscal years 1999 through 
     2003'' and inserting ``fiscal years 2004 through 2009'';
       (15) in section 714 by striking ``fiscal years 1999 through 
     2003'' and inserting ``fiscal years 2004 through 2009'';
       (16) in section 727 by striking ``fiscal years 1999 through 
     2003'' and inserting ``fiscal years 2004 through 2009''; and
       (17) in section 753 by striking ``fiscal years 1999 through 
     2003'' and inserting ``fiscal years 2004 through 2009''.

     SEC. 406. 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 ``1999 
     through 2003'' and inserting ``2004 through 2009''.
       (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 ``1999 through 2003'' and 
     inserting ``2004 through 2009''.

                 TITLE V--TRANSITION AND EFFECTIVE DATE

     SEC. 501. TRANSITION PROVISIONS.

       The Secretary of Labor shall take such actions as the 
     Secretary determines to be appropriate to provide for the 
     orderly implementation of this Act.

     SEC. 502. EFFECTIVE DATE.

       Except as otherwise provided in this Act, this Act and the 
     amendments made by this Act, shall take effect on the date of 
     enactment of this Act.

  The CHAIRMAN. No amendment to the committee amendment is in order 
except those printed in House Report 108-92. Each amendment may be 
offered only in the order printed in the report, by a Member designated 
in the report, shall be considered read, shall be debatable for the 
time specified in the report, equally divided and controlled by the 
proponent and an opponent, shall not be subject to amendment, and shall 
not be subject to a demand for division of the question.
  It is now in order to consider Amendment No. 1 printed in House 
Report 108-92.


                 Amendment No. 1 Offered by Mr. McKeon

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

       Amendment No. 1 offered by Mr. McKeon:
       Page 6, strike lines 18 through 21 and insert the 
     following:
       ``(III) if not included under subclause (I), the director 
     of the State unit, defined in section 7(8)(B) of the 
     Rehabilitation Act of 1973 (29 U.S.C. 705(8)(B)) except that 
     in a State that has established 2 or more designated State 
     units to administer the vocational rehabilitation program, 
     the board representative shall be the director of the 
     designated State unit that serves the most individuals with 
     disabilities in the State;
       Page 15, line 14, strike ``(a) One-stop Partners.--'' and 
     all that follows through page 16, line 12, and insert the 
     following:
       (a) One-Stop Partners.--
       (1) Required partners.--Section 121(b)(1) (29 U.S.C. 
     2841(b)(1)) is amended--
       (A) in subparagraph (B)--
       (i) by striking clauses (ii) and (v)
       (ii) by redesignating clauses (iii) and (iv) as clauses 
     (ii) and (iii), respectively, and by redesignating clauses 
     (vi) through (xii) as clauses (iv) through (x), respectively;
       (iii) in clause (ix) (as so redesignated), by striking 
     ``and'';
       (iv) in clause (x) (as so redesignated), by striking the 
     period and inserting ``; and''; and
       (v) by inserting after clause (x)(as so redesignated) the 
     following:
       ``(xi) programs authorized under part A of title IV of the 
     Social Security Act (42 U.S.C. 601 et. seq.), subject to 
     subparagraph (C).''; and
       (B) by adding after subparagraph (B) the following:
       ``(C) Determination by the governor.--The program referred 
     to in clauses (xi) of subparagraph (B) shall be included as a 
     required partner for purposes of this title in a State unless 
     the Governor of the State notifies the Secretary and the 
     Secretary of Health and Human Services in writing of a 
     determination by the Governor not to include such programs as 
     required partners for purposes of this title in the State.''.
       (2) Additional partners.--Section 121(b)(2)(B) (29 U.S.C. 
     2841(b)(2)(B)) is amended--
       (A) by striking clause (i) and redesignating clauses (ii) 
     through (v) as clauses (i) through (iv) respectively;
       (B) in clause (iii) (as so redesignated) by striking 
     ``and'' at the end;
       (C) in clause (iv) (as so redesignated) by striking the 
     period and inserting a semicolon; and
       (D) by adding at the end the following new clauses:
       ``(v) employment and training programs administered by the 
     Social Security Administration, including the Ticket to Work 
     program (established by Public Law 106-170);
       ``(vi) programs under part D of title IV of the Social 
     Security Act (42 U.S.C. 451 et seq.) (relating to child 
     support enforcement); and
       ``(vii) programs carried out in the local area for 
     individuals with disabilities, including programs carried out 
     by State agencies relating to mental health, mental 
     retardation, and developmental disabilities, State Medicaid 
     agencies, State Independent Living Councils, and Independent 
     Living Centers.''.
       Page 24, strike lines 2 and 3 and insert the following:
       Section 123 is amended to read as follows:

     ``SEC. 123. ELIGIBLE PROVIDERS OF YOUTH ACTIVITIES.

       ``(a) In General.--From the funds allocated under section 
     128(b) to a local area, the local board for such area shall 
     award grants or contracts on a competitive basis to providers 
     of youth activities identified based on the criteria in the 
     State plan and shall conduct oversight with respect to such 
     providers.
       ``(b) Exceptions.--A local board may award grants or 
     contracts on a sole-source basis if such board determines 
     there are an insufficient number of eligible providers of 
     training services in the local area involved (such as rural 
     areas) for grants to be awarded on a competitive basis under 
     subsection (a).
       Page 25, line 10, strike ``(C) states.--'' and all that 
     follows through page 26, line 9, and insert the following:
       ``(C) States.--
       ``(i) In general.--Of the remainder of the amount 
     appropriated under section 137(a) for a fiscal year that is 
     available after determining the amounts to be reserved under 
     subparagraphs (A) and (B), the Secretary shall allot--

       ``(I) the amount of the remainder that is less than or 
     equal to the total amount that was allotted to States for 
     fiscal year 2003 under section 127(b)(1)(C) of this Act (as 
     in effect on the day before the date of enactment of the 
     Workforce Reinvestment and Adult Education Act of 2003) in 
     accordance with the requirements of such section 
     127(b)(1)(C); and
       ``(II) the amount of the remainder, if any, in excess of 
     the amount referred to in subclause (I) in accordance with 
     clause (ii).

       ``(ii) Formulas for excess funds.--Subject to clauses (iii) 
     and (iv), of the amounts described in clause (i)(II)--

       ``(I) 33 and \1/3\ percent shall be allotted on the basis 
     of the relative number of individuals in the civilian labor 
     force who are ages 16-19 in each State, compared to the total 
     number of individuals in the civilian labor force who are 
     ages 16-19 in all States;
       ``(II) 33 and \1/3\ percent shall be allotted on the basis 
     of the relative number of unemployed individuals in each 
     State, compared

[[Page 10930]]

     to the total number of unemployed individuals in all States; 
     and''; and

       Page 26, line 13, strike ``the'' and insert ``each''.
       Page 28, strike lines 1 through 10.
       Page 28, line 11, strike ``formula'' and insert 
     ``formulas''.
       Page 28, strike lines 17 through 21.
       Page 31, strike lines 14 through page 32, line 2, and 
     insert the following:
       ``(i) 33 and \1/3\ percent shall be allotted on the basis 
     of the relative number of individuals in the civilian labor 
     force who are ages 16-19 in each local area, compared to the 
     total number of individuals in the civilian labor force who 
     are ages 16-19 in all local areas in the State;
       ``(ii) 33 and \1/3\ percent shall be allotted on the basis 
     of the relative number of unemployed individuals in each 
     local area, compared to the total number of unemployed 
     individuals in all local areas in the State; and;'' and
       Page 33, strike lines 7 through 10, and insert the 
     following:
       ``(ii) Disadvantaged youth.--The term `disadvantaged youth' 
     means an individual who is age 16 through 21 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 poverty line.''.
       Page 36, line 11, insert ``who are deficient in basic 
     skills'' after ``disabilities)''.
       Page 44, line 1, strike ``(b) Allotment'' and all that 
     follows through page 47, line 14 and insert the following:
       ``(b) Allotment Among States for Adult Employment and 
     Training Activities.--
       ``(1) Reservation for outlying areas.--From the amount made 
     available under subsection (a)(2) for a fiscal year, the 
     Secretary shall reserve not more than \1/4\ of 1 percent to 
     provide assistance to outlying areas to carry out employment 
     and training activities for adults and statewide workforce 
     investment activities.
       ``(2) States.--Subject to paragraph (5), of the remainder 
     of the amount referred to under subsection (a)(2) for a 
     fiscal year that is available after determining the amount to 
     be reserved under paragraph (1), the Secretary shall allot to 
     the States for employment and training activities for adults 
     and for statewide workforce investment activities--
       ``(A) 26 percent in accordance with paragraph (3); and
       ``(B) 74 percent in accordance with paragraph (4)
       ``(3) Base formula.--
       ``(A) Fiscal year 2004.--
       ``(i) In general.--Subject to clause (ii), the amount 
     referred to in paragraph (2)(A) shall be allotted for fiscal 
     year 2004 on the basis of allotment percentage of each State 
     under section 6 of the Wagner-Peyser Act for fiscal year 
     2003.
       ``(ii) Excess amounts.--If the amount referred to in 
     paragraph (2)(A) for fiscal year 2004 exceeds the amount that 
     was available for allotment to the States under the Wagner-
     Peyser Act for fiscal year 2003, such excess amount shall be 
     allotted on the basis of the relative number of individuals 
     in the civilian labor force in each State, compared to the 
     total number of individuals in the civilian labor force in 
     all States, adjusted to ensure that no State receives less 
     than \3/10\ of one percent of such excess amount.
       ``(iii) Definition.--For purposes of this subparagraph, the 
     term `allotment percentage' means the percentage of the 
     amounts allotted to States under section 6 of the Wagner-
     Peyser Act that is received by the State involved for fiscal 
     year 2003.
       ``(B) Fiscal years 2005 and thereafter.--
       ``(i) in general.--Subject to clause(ii), the amount 
     referred to in paragraph(2)(A) shall be allotted for fiscal 
     year 2005 and each fiscal year thereafter on the basis of the 
     allotment percentage of each State under this paragraph for 
     the preceding fiscal year.
       ``(ii) Excess amounts.--If the amount referred to in 
     paragraph (2)(A) for fiscal year 2005 or any fiscal year 
     thereafter exceeds the amount that was available for 
     allotment under this paragraph for the prior fiscal year, 
     such excess amount shall be allotted on the basis of the 
     relative number of individuals in the civilian labor force in 
     each State, compared to the total number of individuals in 
     the civilian labor force in all States, adjusted to ensure 
     that no State receives less than \3/10\ of one percent of 
     such excess amount.
       ``(iii) Definition.--For purposes of this subparagraph, the 
     term `allotment percentage' means the percentage of the 
     amounts allotted to States under this paragraph in a fiscal 
     year that is received by the State involved for such fiscal 
     year.
       ``(4) Consolidated formula.--
       ``(A) In general.--Subject to subparagraphs (B) and (C), of 
     the amount referred to in paragraph (2)(B)--
       ``(i) 60 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) 25 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) 15 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.
       ``(B) Minimum and maximum percentages.--
       ``(i) Minimum percentage.--The Secretary shall ensure that 
     no State shall receive an allotment under this paragraph for 
     a fiscal year that is less than 90 percent of the allotment 
     percentage of the State under this paragraph for the 
     preceding fiscal year.
       ``(ii) Maximum percentage.--Subject to clause (i), the 
     Secretary shall ensure that no State shall receive an 
     allotment for a fiscal year under this paragraph that is more 
     than 130 percent of the allotment of the State under this 
     paragraph for the preceding fiscal year.
       ``(C) Small state minimum allotment.--Subject to 
     subparagraph (B), the Secretary shall ensure that no State 
     shall receive an allotment under this paragraph that is less 
     than \2/10\ of 1 percent of the amount available under 
     subparagraph (A).
       ``(D) Definitions.--For the purposes of this paragraph:
       ``(i) Allotment percentage.--The term `allotment 
     percentage', used with respect to fiscal year 2004 or a 
     subsequent fiscal year, means a percentage of the amounts 
     described in paragraph (2)(B) that is received through an 
     allotment made under this paragraph for the fiscal year. The 
     term, with respect to fiscal year 2003, means the percentage 
     of the amounts allotted to States under this chapter (as in 
     effect on the day before the date of enactment of the 
     Workforce Reinvestment and Adult Education Act of 2003) and 
     under reemployment service grants received by the State 
     involved for fiscal year 2003.
       ``(ii) Disadvantaged adult.--The term `disadvantaged adult' 
     means an individual who is age 22 through 72 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 poverty line.
       ``(iii) Excess number.--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 and \1/2\ 
     percent of the civilian labor force in the State.
       ``(5) Adjustments in allotments based on differences with 
     unconsolidated formulas.--
       ``(A) In general.--The Secretary shall ensure that for any 
     fiscal year no State has an allotment difference, as defined 
     in subparagraph (C), that is less than zero. The Secretary 
     shall adjust the amounts allotted to the States under this 
     subsection in accordance with subparagraph (B) if necessary 
     to carry out this subparagraph..
       ``(B) Adjustments in allotments.--
       ``(i) Redistribution of excess amounts.--

       ``(I) In general.--If necessary to carry out subparagraph 
     (A), the Secretary shall reduce the amounts that would be 
     allotted under paragraphs (3) and (4) to States that have an 
     excess allotment difference, as defined in subclause (II), by 
     the amount of such excess, and use such amounts to increase 
     the allotments to States that have an allotment difference 
     less than zero.
       ``(II) Excess amounts.--For purposes of subclause (I), the 
     term `excess' allotment difference means an allotment 
     difference for a State that is--

       ``(aa) in excess of 3 percent of the amount described in 
     subparagraph (C)(i)(II); or
       ``(bb) in excess of a percentage established by the 
     Secretary that is greater than 3 percent of the amount 
     described in subparagraph (C)(i)(II) if the Secretary 
     determines that such greater percentage is sufficient to 
     carry out subparagraph (A).
       ``(ii) Use of amounts available under national reserve 
     account.--If the funds available under clause (i) are 
     insufficient to carry out subparagraph (A), the Secretary 
     shall use funds reserved under section 132(a) in such amounts 
     as are necessary to increase the allotments to States to meet 
     the requirements of subparagraph (A). Such funds shall be 
     used in the same manner as the States use the other funds 
     allotted under this subsection.
       ``(C) Definition of allotment difference.--
       ``(i) In general.--For purposes of this paragraph, the term 
     `allotment difference' means the difference between--

       ``(I) the total amount a State would receive of the amounts 
     available for allotment under subsection (b)(2) for a fiscal 
     year pursuant to paragraphs (3) and (4); and
       ``(II) the total amount the State would receive of the 
     amounts available for allotment under subsection (b)(2) for 
     the fiscal year if such amounts were allotted pursuant to the 
     unconsolidated formulas (applied as described in clause 
     (iii)) that were used in allotting funds for fiscal year 
     2003.

       ``(ii) Unconsolidated formulas.--For purposes of clause 
     (i), the unconsolidated formulas are:

       ``(I) The requirements for the allotment of funds to the 
     States contained in section 132(b)(1)(B) of this Act (as in 
     effect on the day before the date of enactment of the 
     Workforce Reinvestment and Adult Education Act of 2003) that 
     were applicable to

[[Page 10931]]

     the allotment of funds under such section for fiscal year 
     2003.
       ``(II) The requirements for the allotment of funds to the 
     States contained in section 132(b)(2)(B) of this Act (as in 
     effect on the day before the date of enactment of the 
     Workforce Reinvestment and Adult Education Act of 2003) that 
     were applicable to the allotment of funds under such section 
     for fiscal year 2003.
       ``(III) The requirements for the allotment of funds to the 
     States that were contained in section 6 of the Wagner-Peyser 
     Act (as in effect on the day before the date of enactment of 
     the Workforce Reinvestment and Adult Education Act of 2003) 
     that were applicable to the allotment of funds under such Act 
     for fiscal year 2003.
       ``(IV) The requirements for the allotment of funds to the 
     States that were established by the Secretary for 
     Reemployment Services Grants that were applicable to the 
     allotment of funds for such grants for fiscal year 2003.

       ``(iii) Proportionate application of unconsolidated 
     formulas based on fiscal year 2003.--In calculating the 
     amount under clause (i)(II), each of the unconsolidated 
     formulas identified in clause (ii) shall be applied, 
     respectively, only to the proportionate share of the total 
     amount of funds available for allotment under subsection 
     (b)(2) for a fiscal year that is equal to the proportionate 
     share to which each of the unconsolidated formulas applied 
     with respect to the total amount of funds allotted to the 
     States under all of the unconsolidated formulas in fiscal 
     year 2003.
       ``(iv) Rule of construction.--The amounts used to adjust 
     the allotments to a State under subparagraph (B) for a fiscal 
     year shall not be included in the calculation of the amounts 
     under clause (i) for a subsequent fiscal year, including the 
     calculation of allocation percentages for a preceding fiscal 
     year applicable to paragraphs (3) and (4) and to the 
     unconsolidated formulas described in clause (ii).''.
       Page 50, line 1, strike ``15 percent'' and insert ``25 
     percent''.
       Page 50, line 5, insert ``and'' after the semicolon;
       Page 50, strike lines 6 through 11.
       Page 50, line 12, strike ``(iv) 10 percent'' and insert 
     ``(iii) 15 percent''.
       Page 61, line 3, strike ``and''.
       Page 61, line 5, insert ``and'' after ``employers;''.
       Page 61, after line 5, insert the following:
       ``(iii) reemployment services provided to unemployment 
     claimants.''.
       Page 77, line 22, strike ``$1,001,000,000'' and insert 
     ``$1,250,000,000''.
       Page 80, strike lines 4 through 14 (and redesignate 
     subsection (b) and (c) of section 116 as subsections (a) and 
     (b) respectively).
       Page 80, after line 22, insert the following:
       (d) Migrant and Seasonal Farmworker Programs.--Section 
     167(d) is amended by inserting ``(including permanent 
     housing)'' after ``housing''.
       Page 91, line 20, strike ``recipients'' and insert ``a 
     recipient''.
       Page 108, beginning at line 24, strike ``the English 
     language and math, and English language acquisition'' and 
     insert ``the English language and basic math,''.
       Page 126, line 25, strike ``Definition of Criminal 
     Offender.--'' and insert ``Definitions.--''.
       Page 128, line 7, strike ``, including essential workplace 
     skills''.
       Page 128, line 12, strike ``family'' and insert ``Family''.
       Page 129, line 16, strike the period and insert a 
     semicolon.
       Page 129, line 17, strike ``whether or not''.
       Page 129, line 24; page 130, lines 1, 4, 8, 10, 17, and 22; 
     and page 131, lines 3, 10, and 14, strike the term 
     ``whether'' each place such term appears.
       Page 130, line 5, insert ``when appropriate and 
     scientifically based,'' after ``real-life contexts,''.
       Page 131, line 15, strike ``is of'' and insert ``are of''.
       Page 131, after line 18, insert the following:
       ``(e) Special Rule.--Eligible providers may use grant funds 
     under this title to serve children participating in family 
     literacy programs assisted under this part, provided that 
     other sources of funds available to provide similar services 
     for such children are used first.
       Page 140, strike lines 8 through 15 and insert the 
     following:
       (a) In General.--There is established the National 
     Institute for Literacy. The Institute shall be administered, 
     in accordance with this part, under the supervision and 
     direction of a Director. There shall be an agreement between 
     an Interagency Group (comprised of the Secretary of 
     Education, the Secretary of Labor, and the Secretary of 
     Health and Human Services) and the Institute on how the 
     purposes of the Institute may be achieved effectively. Such 
     agreement--
       (1) shall be regularly reviewed, and modified as needed to 
     remain current with any changes in the purposes of the 
     Institute; and
       (2) shall be updated no later than 1 year after the 
     enactment of this part.
       Page 140, lines 17 through 19, strike ``The Board 
     (established under section 216 of this part), in consultation 
     with the Secretary of Education,'' and insert ``The 
     Interagency Group''.
       Page 140, line 23, insert ``If a vacancy in the position of 
     the Director of the Institute occurs, the Interagency Group 
     shall appoint an Interim Director until such time as a new 
     Director can be appointed.'' after ``and adults.''.
       Page 141, lines 5 and 6, strike ``, if approved by the 
     Board,''.
       Page 141, beginning at line 8, strike all of section 213 
     and insert the following:

     SEC. 213. ADMINISTRATION.

       (a) In General.--The Director of the Institute shall be 
     responsible for administering the Institute. The Director of 
     the Institute shall--
       (1) provide leadership for the Institute, consistent with 
     the purposes described in section 211(b);
       (2) supervise all employees in the Institute;
       (3) assign responsibility to carry out the duties of the 
     Institute among officers and employees, and offices of the 
     Institute;
       (4) prepare requests for appropriations for the Institute 
     and submit those requests to the Interagency Group;
       (5) oversee the expenditure of all funds allocated for the 
     Institute to carry out the purposes under section 211(b); and
       (6) ensure that the Institute's standards for research 
     quality are consistent with those promulgated by the 
     Institute for Education Sciences.
       (b) Offices.--The Institute shall have separate offices 
     from the Department of Education, the Department of Labor, 
     and the Department of Health and Human Services, and shall 
     have maximum flexibility in its operations to carry out the 
     purposes of the Institute.
       (c) Administrative Support.--The Secretary of Education 
     shall provide administrative support for the Institute, 
     including the administration of grants, contracts and 
     cooperative agreements, personnel, legal counsel, and 
     payroll.
       Page 144, line 5, insert ``Director of the'' before 
     ``Institute''.
       Page 144, line 17, strike ``, when requested, policy and''.
       Page 145, after line 23, insert the following (and make 
     such conforming changes as are necessary):
       (8) develop an Internet site that provides useful 
     information to educators and the public on reading literacy 
     that is consistent with the purposes described in section 
     211(b).
       Page 146, lines 14 through 17, strike ``The Institute, in 
     consultation with the Board, may award fellowships, with such 
     stipends and allowances as the Director of the Institute 
     considers necessary,'' and insert ``The Director of the 
     Institute may award fellowships, with such stipends and 
     allowances as necessary,''.
       Page 147, lines 3 and 4, strike ``The Institute, in 
     consultation with the Board,'' and insert ``The Director of 
     the Institute''.
       Page 148, line 16, strike ``work closely with'' and insert 
     ``provide advice to''.
       Page 148, strike lines 20 through 24 (and make such 
     conforming changes as are necessary).
       Page 150, lines 10 and 11, strike ``The Board, in 
     consultation with the Director of the Institute,'' and insert 
     ``The Director of the Institute''.
       Page 151, line 18, strike ``Labor and Human Resources'' and 
     insert ``Health, Education, Labor, and Pensions''.
       Page 152, after line 12, insert the following (and make 
     such conforming changes as are necessary):
       (3) the term ``Interagency Group'' means the Secretary of 
     Education, the Secretary of Labor, and the Secretary of 
     Health and Human Services;
       (4) the term ``literacy'' means the ability to read, write, 
     and speak the English language with competence, knowledge, 
     and comprehension; and
       Page 153, line 4, insert ``the administration of'' after 
     ``such amounts for''.
       Page 153, after line 12, insert the following:

                       PART C--GENERAL PROVISIONS

     SEC. 241. TRANSITION.

       The Secretary shall take such actions as the Secretary 
     determines to be appropriate to provide for the orderly 
     implementation of this title.

  The CHAIRMAN. Pursuant to House Resolution 221, the gentleman from 
California (Mr. McKeon) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentleman from California (Mr. McKeon).
  Mr. McKEON. Mr. Chairman, I yield myself such time as I may consume.
  I rise to offer this bipartisan amendment which contains a number of 
changes to improve the underlying bill that will help millions of 
unemployed Americans find jobs.
  The amendment revises the formula for allocation of funds to States 
under the consolidated adult funding stream. The amendment includes a 
hold harmless provision for States so that in each year each State will 
receive at least what that State would have received under the current 
formulas for the three adult employment and training programs. It also 
creates a two-part formula reflective of the population to

[[Page 10932]]

be served while minimizing the large swings from year to year in 
funding among States.
  The amendment revises the factors for the youth formula for 
allocation of funds to States to better reflect available data on 
youth. It also clarifies that the new formula applies only to funds 
appropriated in excess of the level of funds appropriated in 2003. 
While better targeting the resources, this provision will ensure that 
States are not adversely affected by this formula revision.
  The amendment makes TANF a mandatory partner in the one-stop career 
center system unless the governor of the State notifies the Secretaries 
of Labor and of Health and Human Services that the governor does not 
want the TANF program to be a mandatory partner. Including TANF in the 
one-stop centers will help provide a continuum of services for welfare 
participants. Individuals no longer receiving cash assistance will be 
able to continue to access job search, counseling and training services 
available through WIA. This continuity should help individuals become 
self-sufficient.
  The amendment reinstates the requirement that youth providers be 
selected by competitive process, unless the local board determines that 
there are insufficient numbers of eligible providers of youth services 
in the local area involved.
  The amendment clarifies that State-recognized tribes may continue to 
participate in the WIA program for Native Americans.
  The amendment provides that the National Institute for Literacy is 
under the direction of an interagency group, composed of the Department 
of Education, the Department of Labor and the Department of Health and 
Human Services. This is current law.
  The amendment makes additional clarifying, technical and conforming 
amendments to Titles I and II.
  These amendments, Mr. Chairman, will ensure that workers have better 
access to the benefits included in the bill. As with the rest of the 
bill, these improvements will help hundreds of thousands of Americans 
who are searching for good and stable new jobs.
  I urge my colleagues to adopt this amendment.
  Mr. Chairman, I reserve the balance of my time.
  The CHAIRMAN. Does any Member seek time in opposition?
  Mr. KILDEE. Yes, Mr. Chairman. I ask unanimous consent to claim the 
time in opposition although I am not in opposition.
  The CHAIRMAN. Is there objection to the request of the gentleman from 
Michigan?
  There was no objection.
  Mr. KILDEE. Mr. Chairman, I yield as much time as he may consume to 
the gentleman from Wisconsin (Mr. Kind).
  Mr. KIND. Mr. Chairman, I thank my friend for yielding me time.
  Mr. Chairman, as a member of the Committee on Education and the 
Workforce, I rise not in opposition to the technical amendment, but I 
do oppose the underlying bill.
  Mr. Chairman, I, along with other members on the committee, have 
worked hard to try to work in a bipartisan fashion in the committee to 
produce bills that we feel comfortable that both sides of the aisle can 
support. Unfortunately, I cannot say that that is true with this 
legislation before us today. I think it is a significant step in the 
wrong direction in regards to the workforce investment legislation to 
where we need to go.
  Just last month, Mr. Chairman, the Department of Labor revised their 
unemployment rate to 6 percent. We lost approximately 48,000 jobs in 
the last month alone, which is approximately the size of my hometown, 
La Crosse, Wisconsin. Over the last 2 years we have lost 2.7 million 
jobs in this economy, and I think the American people are going to have 
to ask at some point whether this administration is capable of 
producing one new job during the 4 years in which they are in charge. 
Right now they are working from a 2.7 million job loss hole, and I 
think that question is very seriously in doubt right now.
  This would have provided a perfect vehicle, as the gentleman from 
Michigan (Mr. Kildee) tried to accomplish in the committee, for the 
extension of unemployment benefits which will soon expire and 
Congressional Budget Office shows that for every dollar spent for the 
extension of these unemployment benefits, it provides a $1.74 return on 
economic stimulus in the economy, unlike the tax exemption on corporate 
dividends that the President is proposing, which will only return 9 
cents on the dollar in economic stimulus for our economy.
  There are very few tools at our disposal that can actually have an 
impact on economic growth and job creation in this country. This is one 
of them, and that is why it is so essential that we work hard in a 
bipartisan fashion to structure a piece of legislation that is going to 
make sense for the 2.7 million who are currently out of work and for 
the changing needs of the workforce in this century.
  Unfortunately, this bill actually reduces preventative in-school 
youth training programs targeted at students before they may drop out 
of school, and it consolidates adult employment and training programs 
into one block grant, removing many of the Federal performance and 
accountability measures that make the Workforce Investment Act a 
quality workforce program.
  In addition, H.R. 1261 requires participating partners, and this is 
significant because this is what's going to lead to the reduction of 
program funding; it requires participating partners to contribute an 
unlimited amount towards infrastructure costs for these one-stop 
centers. This sets the stage for reducing job training programs by 
taking money away from the participating partners of this act such as 
veterans employment programs, Perkins vocational education program, and 
the vocational rehabilitation program. These programs have already been 
severely slashed because of the current state of State budgets, and the 
provision will only further jeopardize these valuable funding streams.
  Specifically, I am concerned that the rerouting of funding could have 
a devastating impact on the Wisconsin technical college system's 
abilities to provide training and education for students. Over 8,000 
dislocated workers alone looked to Wisconsin technical colleges in just 
recent months for education and job retraining. I foresee it also 
having a negative impact on our State's economy because it will not be 
able to provide students with the academic foundation and technical 
skills that will make them workforce ready.
  We have made significant progress under the Workforce Investment Act 
in recent years in regards to the direction of job training 
opportunities in our community. We are very proud of the one-stop job 
centers, the workforce investment boards, the public-private 
partnerships that have been established back in the State of Wisconsin 
in regards to these programs and the tremendous amount of good it has 
done to so many of our citizens during a particularly tough run of our 
Nation's economy.
  I believe we can do much better with this underlying piece of 
legislation, and hopefully as we move forward with the process in 
working with the Senate that we are going to be able to refine some of 
these points I have highlighted here today to produce a job training 
and workforce development bill that is going to add to our economic 
growth and help create more jobs in our economy at a time when we 
desperately need it.
  I thank my friend again from Michigan for the leadership that he has 
shown on this issue, the experience that he is providing and also for 
yielding me this time.
  Mr. McKEON. How much time do we have left?
  The CHAIRMAN. The gentleman from California (Mr. McKeon) has 2\1/2\ 
minutes remaining, and the gentleman from Michigan (Mr. Kildee) 30 
seconds remaining.
  Mr. KILDEE. Mr. Chairman, I yield back my time.
  Mr. McKEON. Mr. Chairman, I yield the balance of our time to the 
gentleman from Ohio (Mr. Boehner), the chairman of the committee.
  Mr. BOEHNER. Mr. Chairman, let me clarify some of the remarks that my

[[Page 10933]]

good friend from Wisconsin was making during his presentation.
  Right now we have taken the 63 Federal job training-retraining 
programs back in the late 1990s and ran them into three funding streams 
to the States. What we propose to do in this bill is to reduce that to 
one funding stream. This idea of we are block granting this to the 
States and giving full discretion to the governor is just not true.

                              {time}  1330

  Under the bill, we require that half of the funds go directly to the 
local boards. Of the half that stays at the State, the State must use 
50 percent of that money to assist and provide services to local 
boards.
  So when we begin to look at how this program will be enhanced, at 
least 75 percent of the money will be spent by our local boards. The 
other 25 percent is given to the governors based on their need to react 
to unemployment problems, sudden unemployment problems somewhere else 
in the State where additional assistance may be needed.
  In the bill we also provide much more local control by our local 
boards. Our vision when we started this was to give local businesses 
and local community leaders the ability to control what happens in 
terms of how these monies are spent and the types of services that are 
provided. I do believe that it is going to result in not only better 
services, but better outcomes for our workers.
  Let me make one other point that has been referred to several times 
where we eliminate the funding in this bill for in-school youth 
activities. There are a tremendous number of programs already designed 
to deal with in-school youth who could possibly be in danger or risk of 
dropping out. We should focus the limited youth resources we have in 
this bill to out-of-school youth or in-school youth outside of school 
time because there is not as much money as we would like to spend in 
these programs. There are sufficient programs for in-school youth 
during the school day.
  We are trying to better target our resources to get better results 
for those at-risk students who may in fact be thinking of dropping out 
of school.
  The CHAIRMAN. The question is on the amendment offered by the 
gentleman from California (Mr. McKeon).
  The amendment was agreed to.
  The CHAIRMAN. It is now in order to consider amendment No. 2 printed 
in House Report 108-92.


                  Amendment No. 2 Offered by Mr. Allen

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

       Amendment No. 2 offered by Mr. Allen:
       Page 13, line 7, insert ``, administrators of entities 
     providing adult education and literacy activities,'' after 
     ``school systems''.

  The CHAIRMAN. Pursuant to House Resolution 221, the gentleman from 
Maine (Mr. Allen) and a Member opposed each will control 5 minutes.
  The Chair recognizes the gentleman from Maine (Mr. Allen).
  Mr. ALLEN. Mr. Chairman, I yield myself such time as I may consume.
  This amendment directs governors to appoint administrators of adult 
education and literacy programs to be members of local workforce 
investment boards. That is the current law but the underlying bill 
strips that provision out of the proposal.
  This amendment would ensure that workforce investment boards are 
well-informed when developing strategies to strengthen and improve our 
Nation's workforce. Business and workforce representatives need to be 
aware of all that the adult education system can offer.
  As the participation in adult education continues to grow, we must 
expand and support a strong relationship between the education 
community and the business sector. The better educated and informed our 
workforce, the better our businesses can compete in the global economy. 
We know that a person with a college degree earns more than $1 million 
in the course of his or her lifetime as compared to someone with a high 
school diploma. Clearly education is a vital part of developing a 
successful workforce. Adult educators must continue to have a voice in 
workforce development, and that is what my amendment would provide.
  I am told that the majority has agreed to support this amendment. I 
thank the gentleman from Ohio (Mr. Boehner) and the gentleman from 
California (Mr. McKeon) for their help in preserving active 
communication between the education and business communities to ensure 
a sufficient and quality workforce.
  Mr. Chairman, I reserve the balance of my time.
  The CHAIRMAN. Does any Member seek the time in opposition?
  Mr. McKEON. Mr. Chairman, although I do not oppose the amendment, I 
ask unanimous consent to claim the time in opposition.
  The CHAIRMAN. Without objection, the gentleman from California (Mr. 
McKeon) is recognized for 5 minutes.
  There was no objection.
  Mr. McKEON. Mr. Chairman, I yield myself such time as I may consume.
  As I stated, we do not oppose the amendment. We feel that it will 
improve the bill. This amendment ensures that administration of 
entities providing adult education and literacy activities are included 
in the membership of each local board. The composition of the local 
workforce boards have been streamlined in H.R. 1261, and it is 
important that participants in adult education are represented on the 
local boards alongside superintendents of the local secondary school 
system and the presidents and chief executive officers of secondary 
educational institutions.
  Mr. Chairman, I thank the gentleman for picking this up and offering 
the amendment, and we would be happy to accept the amendment.
  Mr. Chairman, I yield back the balance of my time.
  Mr. ALLEN. Mr. Chairman, I thank the gentleman for his support, and I 
yield back the balance of my time.
  The CHAIRMAN. The question is on the amendment offered by the 
gentleman from Maine (Mr. Allen).
  The amendment was agreed to.
  The CHAIRMAN. It is now in order to consider amendment No. 3 printed 
in House Report 108-92.


                 Amendment No. 3 Offered by Mr. Vitter

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

       Amendment No. 3 offered by Mr. Vitter:
       Page 18, line 5, insert ``, and how the centers ensure that 
     such providers meet the employment needs of local employers 
     and participants'' after ``partners''.
       Page 21, line 18, insert ``how the centers ensure that such 
     providers meet the needs of local employers and 
     participants,'' after ``providers,''.

  The CHAIRMAN. Pursuant to House Resolution 221, the gentleman from 
Louisiana (Mr. Vitter) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentleman from Louisiana (Mr. Vitter).
  Mr. VITTER. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, today with the Workforce Investment Act, we are 
addressing perhaps our best and most valuable resource in this economy 
and this society, which is people.
  This bill, along with the economic stimulus package slated for 
tomorrow, are the results of a Congress and President who are focused 
on important issues relating to the economy, jobs, employment, and job 
training.
  In my home State of Louisiana, we are working together at every 
level, State, regional and local, to improve our workforce and create 
real jobs, too. Passage of the Workforce Investment Act will advance 
those goals, and certainly we look forward to that.
  But just as we expect government on all levels to work together 
toward this end, we certainly need to make sure that employers, 
training centers, potential employees, also all work together as 
seamlessly as possible. So my amendment is designed to improve the bill 
in that respect. It is a very simple and commonsense amendment, but one 
that I think is important to our overall goals.
  In two sections of the bill, the section that sets out criteria for 
certification of one-stop centers and the section that sets out the 
criteria governors will use to determine eligibility

[[Page 10934]]

for Federal funds, concise language is inserted that will ensure that 
the needs of local employers are taken into account. This gives input 
to those employers who at the end of the job training and education 
process will be asked and expected to hire newly trained workers.
  Right now in some situations, including in my home State of 
Louisiana, there is a real gap. There are jobs there on the ground even 
in a relatively poor economy, but there is not the hired workforce to 
fill those jobs at the local level. A quick example, Avondale Shipyards 
in the Northrop Grumman Ship Systems, one of the biggest private 
employers in the whole State of Louisiana, busses in dozens of skilled 
workers every day from Mississippi because people with those specific 
job skills are not available immediately in the metro New Orleans area.
  This amendment is a simple, commonsense amendment to try to fill that 
gap, to try to make sure that we train up workers in areas where there 
are jobs waiting in the economy. This will not only serve employers who 
need to fill those jobs, if possible, at the local level without 
resorting to bussing in workers or resorting to foreign workers. And, 
of course, it will also serve workers who want to be trained up, and 
most of all, want a good job to walk into at the end of their training.
  With that, I want to congratulate the gentleman from Ohio (Mr. 
Boehner) and the gentleman from California (Mr. McKeon) for their good 
work.
  Mr. BOEHNER. Mr. Chairman, will the gentleman yield?
  Mr. VITTER. I yield to the gentleman from Ohio.
  Mr. BOEHNER. Mr. Chairman, I think the gentleman from Louisiana (Mr. 
Vitter) makes a valuable contribution to the bill. I believe Members 
ought to support the amendment, and we would be happy to include it.
  The CHAIRMAN. Does any Member claim the time in opposition?
  Mr. KILDEE. Mr. Chairman, I ask unanimous consent to claim the time 
in opposition, although I do not oppose the amendment.
  The CHAIRMAN. Without objection, the gentleman from Michigan (Mr. 
Kildee) is recognized for 5 minutes.
  Mr. KILDEE. Mr. Chairman, I yield such time as he may consume to the 
gentleman from Oregon (Mr. Blumenauer).
  Mr. BLUMENAUER. Mr. Chairman, numbers that were released today show 
that Oregon continues to record the highest jobless rate in the Nation 
at 7.6 percent. Since this administration took office, my State has 
lost 28,600 jobs, and over 2.5 million private sector jobs have been 
lost nationwide.
  Rather than addressing directly this grave problem by focusing on 
investments and programs that could put people back to work today; for 
example, simply repairing bridges that are falling apart all across 
America, the proposal is to tamper with valuable worker retraining 
programs that are actually making a positive difference.
  I agree with the gentleman from Ohio (Mr. Boehner) that there was 
some outstanding work that was done in 1998 under the leadership of the 
gentleman from California and the gentleman from Michigan. I think 
there were important changes, but this legislation is an unfortunate 
attempt to not just rearrange the deck chairs on the Titanic, but pull 
them out from underneath some victims.
  The most optimistic outcome is that it will cause a disruption in 
some services that people need. It fails to address the pressing needs 
of disadvantaged and unemployed workers around the Nation, fails to 
provide enhanced funding, and fails to strengthen the State and local 
publicly provided unemployment services. The changes in this bill do 
little to improve the situation for hard-hit working families in the 
current economic downturn in my community.
  Not only are we bringing forward legislation that at best is 
disruptive, they are preventing opportunities by Democrats to help our 
constituents. The House rule that brought the bill forward denied us an 
opportunity to vote on an amendment to extend unemployment insurance 
benefits by 26 weeks for newly unemployed workers.
  My constituents tell me this legislation could not come at a worse 
time. We are taking money potentially from programs that work and are 
well-managed, and handing them back in a block grant form, to a certain 
extent, to governors in States that are operating in a crisis mode, and 
the money could end up anywhere.
  At a cumulative budget shortfall of over $70 billion, our States are 
facing the worst financial crisis since World War II. It is time for us 
to keep our funding commitments for programs that work instead of 
reshuffling programs, making it harder to keep our promises.
  I have no objection to the Vitter amendment. I did want to have an 
opportunity to clarify my concerns, and hope that we as a Congress 
before we adjourn this spring are able to come forward with something 
that will make a difference helping the economy in areas for people 
that need it.
  Mr. VITTER. Mr. Chairman, I yield such time as he may consume to the 
gentleman from Ohio (Chairman Boehner) to address the comments on the 
bill by the gentleman from Oregon.
  Mr. BOEHNER. Mr. Chairman, I support the Vitter amendment, but let me 
just clarify for Members what we are doing here in the reauthorization 
of WIA.
  This is nothing more than a fine-tuning effort, further streamlining 
the funding stream, further clarifying that we expect the local boards 
to get most of the money to provide the resources, and to give the 
local boards the flexibility to provide high quality services to men 
and women in their communities who have needs.
  I think the amendment offered by the gentleman from Louisiana (Mr. 
Vitter) says we need to consider what the needs are in the local 
communities and is in fact a valuable contribution. But no one should 
believe that we are doing a complete overhaul of the Workforce 
Reinvestment Act. These one-stop shops around the country by and large 
have begun to work very well.
  What we are trying to do here in this reauthorization is to make 
those changes to help the one-stops do a more effective job in their 
local communities, and to provide the governors and the local boards 
with the kind of flexibility they need to look at the broad needs of 
the workforce, whether it is training, retraining, preparing people for 
better jobs in their communities.
  We believe that the underlying bill does in fact make this much more 
likely because services will be offered more efficiently, the use of 
the resources will be more efficient. Thus, we believe that the 
outcomes, the results of all of this, will give us better services and 
better outcomes at home.

                              {time}  1345

  Mr. KILDEE. Mr. Chairman, I yield the balance of my time to the 
gentlewoman from Texas (Ms. Jackson-Lee).
  The CHAIRMAN. The gentlewoman from Texas is recognized for 2\1/2\ 
minutes.
  Ms. JACKSON-LEE of Texas. Mr. Chairman, if my colleagues want to know 
about jobs and job loss, they do not have to go any farther than 
Houston, Texas, when just about 2 years ago, Enron Corporation laid off 
thousands of employees that are now still suffering, an action that has 
built upon the increasing unemployment rate across the Nation.
  Mr. Chairman, I would have liked to have been on the floor of the 
House today joining with my good friends on the other side of the aisle 
in passing a bill that would truly deal with workforce reinvestment and 
adult education. But in actuality what this does is rather than 
responding to the needs of the unemployed by extending unemployment 
benefits or including a jobs creation package, H.R. 1261 will repeal 
dedicated funding for vulnerable workers in America. It will probably 
impact Harris County and Houston, Texas, in a devastating way because, 
Mr. Chairman, we are still confronting the question of those unemployed 
workers.
  Further, I would say that to my dismay, this bill gives to Governors 
the right to take unspecified amounts of funds from adult education, 
crucial,

[[Page 10935]]

from disability and veterans services, crucial, and to cut job 
opportunities for the youth. Clearly, this is not a bill that creates 
jobs or responds to the needs of those who are in need.
  And then I am disappointed that the Committee on Rules did not 
understand that our job is to create greater access to jobs, and that 
means that an amendment that I offered that dealt with the question of 
having online access to being able to get the training and the 
resources was an amendment that was not put in order, along with 12 to 
13 other amendments of Democrats. If we are truly in the business of 
creating jobs, we would have done this in a bipartisan manner.
  And then I think the ultimate insult, Mr. Chairman, of this 
legislation, and I am a believer in the first amendment, the freedom of 
religion, the freedom of speech, the freedom of association; but this 
Congress cannot in the year 2003 with the representations from Members 
of the other body about individuals' life-style or the individual's 
support of a President who would support segregationist policies, we 
cannot go on record in this body against civil rights, against civil 
liberties. This particular legislative initiative blindly allows 
individual groups to be able to discriminate against individuals on the 
basis of their religious beliefs.
  Mr. Chairman, we can do better. I would think that we would want to 
do better. I would hope that my colleagues would vote this down, this 
legislative initiative, so we could go back to the drawing board and 
serve the American people as we should.
  The CHAIRMAN. The question is on the amendment offered by the 
gentleman from Louisiana (Mr. Vitter).
  The question was taken; and the Chairman announced that the ayes 
appeared to have it.
  Mr. VITTER. Mr. Chairman, I demand a recorded vote, and pending that, 
I make the point of order that a quorum is not present.
  The CHAIRMAN. Pursuant to clause 6 of rule XVIII, further proceedings 
on the amendment offered by the gentleman from Louisiana (Mr. Vitter) 
will be postponed.
  The point of no quorum is considered withdrawn.
  It is now in order to consider amendment No. 4 printed in House 
Report 108-92.


                  Amendment No. 4 Offered by Mr. Kline

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

       Amendment No. 4 offered by Mr. Kline:
       Page 18, line 18, strike ``subsection (b)'' and insert 
     ``subsection (b)(1)(B) and participating additional partner 
     programs described in (b)(2)(B)''.
       Page 18, strike lines 21 through 25 and insert the 
     following:
       ``(B) Determination of governor.--Subject to subparagraph 
     (C), the Governor, in consultation with the State board, 
     shall determine the portion of funds to be provided under 
     subparagraph (A) by each one-stop partner and in making such 
     determination shall consider the proportionate use of the 
     one-stop centers by each partner, the costs of administration 
     for purposes not related to one-stop centers for each 
     partner, and other relevant factors described in paragraph 
     (3).
       ``(C) Limitations.--
       ``(i) Provision from administrative funds.--The funds 
     provided under this paragraph by each one-stop partner shall 
     be provided only from funds available for the costs of 
     administration under the program administered by such 
     partner, and shall be subject to the limitations with respect 
     to the portion of funds under such programs that may be used 
     for administration.
       ``(ii) Federal direct spending programs.--Programs that are 
     Federal direct spending under section 250(c)(8) of the 
     Balanced Budget and Emergency Deficit Control Act of 1985 (2 
     U.S.C. 900(c)(8)) shall not, for purposes of this paragraph, 
     be required to provide an amount in excess of the amount 
     determined to be equivalent to the proportionate use of the 
     one-stop centers by such programs in the State.''.
       Page 19, line 3, insert ``in accordance with the formula 
     established under paragraph (3)'' after ``local area''.
       Page 20, line 2, strike ``subsection (b)'' and insert 
     ``subsection (b)(1)(B) and participating partner programs 
     described in subsection (b)(2)(B), or the noncash resources 
     available under such programs''.

  The CHAIRMAN. Pursuant to House Resolution 221, the gentleman from 
Minnesota (Mr. Kline) and a Member opposed each will control 5 minutes.
  The Chair recognizes the gentleman from Minnesota (Mr. Kline).
  Mr. KLINE. Mr. Chairman, I yield myself 3 minutes.
  Mr. Chairman, I am pleased to offer an amendment to H.R. 1261 that 
remedies concerns raised about the funding of one-stop development 
centers. Under current law, each partner program in the WIA system is 
to contribute to the cost of infrastructure for one-stop career 
centers. Unfortunately, many partners do not contribute as intended and 
the process for determining each partner's share has proved to be 
cumbersome at best. As a result, WIA has been left to cover the one-
stop center infrastructure costs, and fewer funds have been available 
for the provision of services and training for individuals.
  H.R. 1261 recognizes the problems of saddling WIA with most of the 
infrastructure costs and takes the steps to remedy those problems. H.R. 
1261 requires partner programs to help pay administrative and 
infrastructure costs. The amount is determined at the State level in 
consultation with the State workforce investment board. Under the bill, 
the directors of mandatory partner programs will sit on this board, 
giving them a voice in the negotiation. Under H.R. 1261, the Governor 
makes the final determination of the appropriate amount of funding to 
be provided by each partner program. Unfortunately, this provision 
caused partner programs to be concerned that the Governor would be able 
to take needed program dollars away from direct services in order to 
pay for administrative costs at the one-stop career centers.
  My amendment solves this problem by ensuring the administrative 
funding requirements will not cut into funding for the services program 
partners provide. My amendment will require the Governor to consult 
with the State board to determine the proportionate use of the one-stop 
centers by each partner. This consideration will ensure a program 
accounting for 10 percent of the usage of the center would not be 
responsible for 50 percent of the infrastructure costs. The Governor 
and the State board would also consider any additional administrative 
costs each program must cover in addition to those costs associated 
with the participation in the one-stop centers. This will ensure that 
program dollars intended for services to individuals are not spent on 
infrastructure costs.
  Some may suggest that it would be better to create a new Federal 
program to cover infrastructure costs. Rather than create yet another 
government program, I would prefer to improve the program we have. When 
WIA passed in 1998, Congress expected the partner programs to pay their 
portion of the administrative costs of operation. The process outlined 
in H.R. 1261, as modified by my amendment, will ensure this happens 
while maintaining flexibility to each State to set the standards that 
work best for them. I think we would all agree that one of the 
hallmarks of WIA, the one-stop career center system, benefits both job 
seekers and the programs themselves. The centers provide individuals 
with streamlined access to a variety of programs and improve the 
efficient delivery of service. We cannot, however, expect these robust 
relationships to continue without reasonable, proportional financial 
participation. By streamlining the process, H.R. 1261 ensures the best 
use of investment by partner programs.
  I urge my colleagues to support the amendment.
  Mr. Chairman, I reserve the balance of my time.
  The CHAIRMAN. Does any Member seek the time in opposition?
  Mr. KILDEE. Mr. Chairman, I claim the time in opposition.
  The CHAIRMAN. The gentleman from Michigan (Mr. Kildee) is recognized 
for 5 minutes.
  Mr. KILDEE. Mr. Chairman, I yield myself such time as I may consume.
  The Kline amendment makes marginal improvements to the bill, but it 
does not reduce the funding that can be taken from veterans programs 
and programs serving individuals with disabilities. Instead, the Kline 
amendment puts this funding, and the services which it provides, at 
risk. I have two

[[Page 10936]]

letters from leading organizations representing veterans and 
individuals with disabilities. Let me read from the letter from the 
National Rehabilitation Association:
  ``The Kline amendment would, we regret to say, have the unintended 
consequence of diverting deserving dollars from individuals with 
disabilities who want to work to fund a one-stop system which remains 
to this day largely inaccessible both programmatically and physically 
to individuals with disabilities.''
  Let me also read a part of the letter from the Paralyzed Veterans 
Association of America:
  ``This amendment will not protect the disabled veterans outreach 
program and local veterans employment representatives services because 
the authorizing language for those programs sets no specific limits on 
administrative costs. As a result, the full amount of money 
appropriated for DVOPs and LVERs could, ostensibly, be directed by 
Governors to be used for one-stop infrastructure expenses.''
  Clearly, this amendment does not address the critical issues of this 
legislation. It does, however, make marginal improvements. For that 
reason, I will not oppose it, but wish that we could get together at 
some point and try to improve the language.

                                           National Rehabilitation


                                                  Association,

                                      Alexandria, VA, May 8, 2003.
       Dear Representative: As President and Executive Director of 
     the National Rehabilitation Association, respectively, we 
     have continuing concerns regarding the one-stop funding 
     structure being proposed for mandatory and additional 
     partner's participation in H.R. 1261 and in the 
     proportionality approach to that funding embodied in the 
     Kline amendment which was made in order under the Rule 
     granted yesterday to this bill.
       The National Rehabilitation Association was established in 
     1925 and is the longest-serving and one of the strongest 
     advocates in ensuring the rights of individuals with 
     disabilities are respected and realized. Our mission is to 
     promote ethical and excellent practice in the field of 
     vocational rehabilitation.
       The Workforce Investment Act (WIA) comprises in Title IV 
     programs administered under the Rehabilitation Act of 1973, 
     as amended. The Public VR Program, as it is commonly known, 
     is an accountable, eligibility-based employment program 
     dedicated to the education, job training and counseling, 
     career placement and independence of individuals with 
     disabilities, including those individuals with significant 
     disabilities.
       The Public VR Program, being the productive partner that it 
     is and always has been, continues to partner at the one-stops 
     on a cost-allocation basis, consistent with OMB guidelines.
       The Kline amendment would, we regret to say, have the 
     unintended consequence of diverting deserving dollars from 
     individuals with disabilities who want to work to fund a one-
     stop system which remains to this day largely inaccessible 
     both programmatically and physically to individuals with 
     disabilities.
       The impact on individuals with disabilities is clear: If 
     individuals with disabilities cannot get through the door of 
     the one-stop shops, or do not find meaningful access to 
     employment information once inside, these individuals will 
     not become employed and may be forced to seek public 
     assistance in lieu of advancing or initiating a career.
       H.R. 1261 reneges on a promise by Congress to safeguard the 
     separate funding stream of the Public VR Program, and in 
     doing so, exposes the Public VR Program to a one-stop system 
     that does not have a proven or uniform track record of 
     accountability, according to a recent General Accounting 
     Office (GAO) Report, and other well-respected organizations.
       Both H.R. 1261 and the Kline amendment do not appreciate 
     that the one-stops do not now have--nor have ever had--the 
     qualified staff who provide comprehensive services and 
     supports that individuals with disabilities require in 
     seeking the dignity of work in an increasingly one-size-fits-
     all employment environment. These requirements include 
     qualified rehabilitation counselors and other qualified 
     professionals employed by accountable State Agencies, in 
     conjunction with their Community Rehabilitation Program 
     Partners (CRPs), who include private providers, employers and 
     businesses.
       Most importantly, the Kline amendment does not define the 
     term ``proportionality'' and, accordingly, we are unsure of 
     how and if this approach would work to the benefit of all 
     individuals with disabilities who want to work.
       Relatedly, the Public VR Program does not have a separate 
     line item funding stream for administrative costs or a cap on 
     administrative costs, which we believe, further complicates 
     participation of the Public VR Program at the one-stops other 
     than on a cost-allocation basis.
       The untested, unproven proportionality approach advanced by 
     the Kline amendment simply does not--and cannot--protect the 
     millions of eligible individuals with disabilities who will 
     benefit from the comprehensive services and supports that 
     only the Public VR program can provide individuals with 
     disabilities who want to work.
       The Public VR Program has been doing more with less for 
     years. Presently, there are 37 State Agencies on an Order of 
     Selection, which places a priority of service on those 
     individuals with the most significant disabilities. The 
     waiting lists for the holistic services and supports that 
     only the Public VR Program can provide individuals with 
     disabilities increase everyday.
       While the Public VR Program has served and secured 
     employment for millions of eligible individuals with 
     disabilities for decades, because of years of woeful 
     underfunding, the following State Agencies cannot now serve 
     all of the thousands upon thousands of eligible individuals 
     with disabilities who seek the dignity of work and the 
     comprehensive services that only the Public VR Program 
     provides individuals with disabilities include, by Region:
       Region I--Connecticut General, Maine General and Blind 
     Agencies, Massachusetts General Agency, Rhode Island and 
     Vermont General.
       Region II--New Jersey General; the Virgin Islands.
       Region III--Delaware Blind Agency, Maryland, Pennsylvania 
     and West Virginia General Agencies.
       Region IV--Georgia and Kentucky General and Blind Agencies, 
     Mississippi, North Carolina, General Agency and Tennessee.
       Region V--Illinois, Minnesota General, Ohio and Wisconsin.
       Region VI--Iowa General, Kansas, Missouri General, Nebraska 
     General.
       Region VIII--Colorado; North Dakota.
       Region VIII--Colorado, North Dakota.
       Region IX--Arizona, California, Hawaii.
       Region X--Oregon Blind, Washington State General Agency.
       As we mentioned previously, these are the State Agencies 
     that maintain continually-increasing waiting lists for 
     eligible individuals with disabilities who want to share in 
     the American Dream by having a career, owning a home, being 
     able to support a family and living independently in their 
     communities.
       While having a career is the primary goal of the Public VR 
     Program, this can only become a reality with a solid plan for 
     employment developed with and supported by the Public VR 
     qualified professionals in conjunction with the individual.
       The Kline amendment does not and cannot solve the problems 
     that individuals with disabilities continue to confront at 
     the one-stops.
       Just think about it. The Public VR Program is funding the 
     administration of an inaccessible one-stop program--which is 
     absent qualified staff and accountability--with funds 
     designated for supporting the poorest group in our society 
     with the highest unemployment rate and the majority of the 
     community living below the poverty line.
       Given the continuing, critical concerns the disability 
     community at large has with the absence of accessibility, 
     accountability and qualified staff at the one-stops, the 
     National Rehabilitation Association cannot and will not 
     support H.R. 1261.
           Respectfully Submitted,
     L. Robert McConnell, Ph.D.,
       President.
     Michelle Vaughan, MBA,
       Executive Director.
                                  ____



                                Paralyzed Veterans of America,

                                      Washington, DC, May 8, 2003.
     Hon. John Tierney,
     House of Representatives,
     Washington, DC.
       Dear Congressman Tierney: On behalf of Paralyzed Veterans 
     of America (PVA), I want to thank you for offering your 
     amendment to create line item funding for the operating costs 
     of one-stops under H.R. 1261. This would have been the surest 
     way to protect veterans' employment programs from damaging 
     diversion of funds authorized by the subject bill.
       Regrettably, the Rules Committee rejected your amendment 
     and approved one that requires states, in determining funds 
     to be taken, to consider the proportionate use of the one-
     stop centers by each partner, the costs of administration 
     unrelated to the use of the one-stop center by each partner 
     and other relevant factors. This amendment further requires 
     that the funds provided by the one-stop partner programs for 
     infrastructure costs are to be provided from funds available 
     for administrative costs under the program and that those 
     funds would be subject to whatever administrative cost limits 
     are applicable to that program.
       This amendment will not protect the disabled veterans 
     outreach program (DVOP) and local veterans' employment 
     representatives (LVERs) services because the authorizing 
     language for those programs sets no specific limits on 
     administrative costs. As a result, the full amount of money 
     appropriated for DVOPs and LVERs could, ostensibly, be 
     directed by Governors to be used for one-stop infrastructure 
     expenses.

[[Page 10937]]

       Thank you again for your efforts on behalf of veterans and 
     veterans with disabilities.
           Sincerely,
                                                   Richard Fuller,
                                    National Legislative Director.

  Mr. Chairman, I reserve the balance of my time.
  Mr. KLINE. Mr. Chairman, I yield the balance of my time to the 
gentleman from Ohio (Mr. Boehner), the chairman of the committee.
  The CHAIRMAN. The gentleman from Ohio is recognized for 2 minutes.
  Mr. BOEHNER. Mr. Chairman, let me thank my colleague and new member 
of our committee, the gentleman from Minnesota (Mr. Kline), for his 
important contribution. Many of us believe that the language was 
sufficient in the bill, but clearly there were questions raised about 
how the determination was going to be made over how much each of the 
participating partners were going to contribute to the infrastructure. 
The amendment that is offered here does in fact make it clear to the 
Governors that there is a proportionate share that each of these groups 
will contribute.
  Why is this necessary? Unfortunately in some parts of the country, 
some groups just decided they were not going to be participating 
partners. Our goal here is to have one-stops where all of the providers 
of services are there. We are talking about providers of services that 
are funded by the Federal Government. They need to be participating. 
What we do here is to make sure that they have a financial commitment 
to the well-being of these one-stops as well.
  The gentleman from Michigan makes a point that not all of these 
mandatory partners have administrative funds. Most of them do. Their 
participation in the funding of the infrastructure would come from 
their own administrative funds. But the one point that he did bring up 
was the veterans programs. They have administrative funds and it is 
done by regulatory process as opposed to being outlined in statute. And 
so we believe that because each of these groups has administrative 
funds by some means, the Governors and the statewide WIA board would 
take that into consideration in terms of what the proportionate share 
of costs should be for each of these groups. I do think the gentleman 
from Minnesota makes an important contribution, helps clarify the bill, 
and we should support his amendment.
  Mr. KILDEE. Mr. Chairman, I yield back the balance of my time.
  The CHAIRMAN. The question is on the amendment offered by the 
gentleman from Minnesota (Mr. Kline).
  The amendment was agreed to.
  The CHAIRMAN. It is now in order to consider amendment No. 5 printed 
in House Report 108-92.


            Amendment No. 5 Offered by Mr. lewis of georgia

  Mr. LEWIS of Georgia. Mr. Chairman, pursuant to the rule, I offer an 
amendment.
  The CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 5 offered by Mr. Lewis of Georgia:
       Page 36, line 4, strike ``21'' and insert ``24''.

  The CHAIRMAN. Pursuant to House Resolution 221, the gentleman from 
Georgia (Mr. Lewis) and a Member opposed each will control 5 minutes.
  The Chair recognizes the gentleman from Georgia (Mr. Lewis).
  Mr. LEWIS of Georgia. Mr. Chairman, I yield myself such time as I may 
consume.
  Mr. Chairman, H.R. 1261 as written leaves out a significant portion 
of its targeted population that needs job training. My simple amendment 
would extend the eligibility requirement from 21 years of age to 24 
years of age for training programs in the Workforce Reinvestment and 
Adult Education Act. Existing job training programs such as Job Corps, 
YouthBuild, Conservation Corps, and others already use the age range 16 
to 24. Extending the age from 21 to 24 will enable the Workforce 
Reinvestment and Adult Education Act to coincide with organizations 
that benefit from it.
  When young people drop out of high school, they are in a suspended 
state of adolescence, not taking responsibility for themselves 
financially or otherwise. They often are unable to get a job or support 
themselves or their children, if they have children. Furthermore, the 
needs of the 22- to 24-year-old high school dropouts are more like the 
needs of the 18- to 21-year-olds than their counterparts in their late 
twenties and thirties. The process of completing their high school 
education, preparing for the workforce, the world of work, and 
developing the values of responsibility and the sense of belonging to a 
community are the difficult tasks of youth, but some have taken a 
detour onto the streets or prison. When they get back on track, they 
still need to be mentored. They need help, a sense of purpose, a sense 
of direction. They simply have not learned the skills and 
responsibilities in the work world to be adults. This amendment will 
help our young people meet this goal.
  Mr. Chairman, I have visited organizations such as YouthBuild and Job 
Corps. I must tell you they do good work. These are good and necessary 
programs to help our young people get ahead. I strongly urge my 
colleagues, all of my colleagues, to pass this amendment.
  Mr. Chairman, I yield back the balance of my time.
  The CHAIRMAN. Does any Member seek the time in opposition?
  Mr. BOEHNER. Mr. Chairman, I ask unanimous consent to claim the time 
in opposition, even though I am not opposed to the amendment.
  The CHAIRMAN. Without objection, the gentleman from Ohio is 
recognized for 5 minutes.
  There was no objection.
  Mr. BOEHNER. Mr. Chairman, let me congratulate my friend and 
colleague from Georgia for his amendment and make it clear that I 
support his amendment.
  The amendment ensures that States and local areas have flexibility in 
creating their own out-of-school youth program. For instance, a State 
may find it beneficial to allow youth who begin participating in an 
out-of-school youth program to continue in the program beyond the 21st 
birthday in order to complete the program. Often 22-, 23- and 24-year-
olds have many of the same basic educational and job training needs as 
youth under the age of 21.

                              {time}  1400

  And I think that the amendment offered by the gentleman from Georgia 
(Mr. Lewis) aligns the eligibility age with other programs serving 
youth, including Job Corps and YouthBuild, and this will allow greater 
coordination amongst programs serving youth and could ease the 
transition for these youth into employment and self-sufficiency 
programs. So I congratulate the gentleman for his amendment and urge my 
colleagues to support it.
  Mr. LEWIS of Georgia. Mr. Chairman, I thank the gentleman from Ohio 
(Mr. Boehner).
  Mr. Chairman, I ask unanimous consent to reclaim my time.
  The CHAIRMAN. Is there objection to the request of the gentleman from 
Georgia?
  There was no objection.
  The CHAIRMAN. The gentleman from Georgia (Mr. Lewis) has 2\1/2\ 
minutes remaining.
  Mr. LEWIS of Georgia. Mr. Chairman, I yield 1 minute to the gentleman 
from Michigan (Mr. Kildee).
  Mr. KILDEE. Mr. Chairman, I thank the gentleman for yielding me this 
time.
  I am very familiar with the group that he is seeking to serve here. 
In the City of Flint, Michigan, we have people who really have a sense 
to find themselves during that period in their life, and I think 
extending this to age 24 is a reasonable thing for us to do and will 
make sure that we give those people in that age group that second 
chance to find themselves and to set goals for themselves. So I think 
this will be something that will add immeasurably to the bill, and I am 
very happy that the gentleman has offered the amendment and certainly 
urge everyone to support the amendment.
  I know the gentleman from Atlanta has been up to my city and I have 
been

[[Page 10938]]

to his city. We have seen youth in this group.
  The CHAIRMAN. The gentleman has 1\1/2\ minutes remaining.
  Mr. LEWIS of Georgia. Mr. Chairman, I yield such time as she may 
consume to the gentlewoman from Texas (Ms. Jackson-Lee).
  Ms. JACKSON-LEE of Texas. Mr. Chairman, I thank the gentleman for 
yielding me this time.
  This is an excellent amendment, and the reason why I say that is 
because this is the month of May, when a number of our students are 
graduating from college, many of them older than the age originally in 
this legislation, and extending this to the age of 24 responds not only 
to those students who may be older in our colleges but also to 
returning veterans and military personnel who will be older. So might I 
just join in supporting this excellent amendment, and I would like to 
add as well my support for the amendment to be coming forth of the 
gentlewoman from California (Ms. Millender-McDonald) dealing with 
single parents and pregnant women and others to expand the opportunity 
for training.
  So I thank the gentleman for yielding, and I want to say this is a 
very progressive but important amendment on helping a large number of 
these young people who are in need of these very vital services.
  Mr. LEWIS of Georgia. Mr. Chairman, I thank the gentlewoman.
  Mr. Chairman, I yield back the balance of my time.
  Mr. BOEHNER. Mr. Chairman, I yield back the balance of my time.
  The CHAIRMAN. The question is on the amendment offered by the 
gentleman from Georgia (Mr. Lewis).
  The amendment was agreed to.
  The CHAIRMAN. It is now in order to consider amendment No. 6 printed 
in House Report 108-92.


                 Amendment No. 6 Offered by Mr. Kildee

  Mr. KILDEE. Mr. Chairman, as designee of the gentleman from Florida 
(Mr. Hastings), I offer an amendment.
  The CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 6 offered by Mr. Kildee:
       Page 49, line 10, strike ``80 percent'' and insert ``85 
     percent''.
       Page 49, line 13, strike ``20 percent'' and insert ``15 
     percent''.

  The CHAIRMAN. Pursuant to House Resolution 221, the gentleman from 
Michigan (Mr. Kildee) as the designee of the gentleman from Florida 
(Mr. Hastings) and a Member opposed each will control 5 minutes.
  The Chair recognizes the gentleman from Michigan (Mr. Kildee).
  Mr. KILDEE. Mr. Chairman, I yield myself such time as I may consume.
  We have discussed this amendment with the majority, and we have 
agreement upon this.
  This amendment simply would increase the amount of funding going to 
local areas by a statutorily defined formula.
  Mr. Chairman, I yield such time as he may consume to the gentleman 
from Florida (Mr. Hastings).
  Mr. HASTINGS of Florida. Mr. Chairman, I thank the ranking member for 
yielding me this time, and I am thankful for the opportunity for this 
intervention.
  I rise to offer the amendment to the Workforce Investment Act 
Reinvestment and Adult Education Act of 2003. Although this amendment 
is a technical one, if enacted, it will result in an increase of need-
based funding for virtually every workforce development board in the 
country. In fact, if the administration's fiscal year 2004 budget 
request is appropriated, the amendment would result in an increase of 
no less than $77.5 million in guaranteed formula or need-based funding 
in areas with highest demand for assistance. Specifically, the 
amendment requires that no less than 85 percent of the total funds 
allocated to local boards under the Comprehensive Employment and 
Training Activities for Adults program are formula based. H.R. 1261, as 
reported, establishes a formula for this funding that takes into 
consideration the unemployment rate of a given area compared with the 
entire State and the size of the workforce. Further, it gives priority 
to those living in areas of high unemployment as well as disadvantaged 
individuals.
  I rise today to offer an amendment to the Workforce Reinvestment and 
Adult Education Act. Although my amendment is a technical one, if 
enacted, it will result in an increase of need-based funding for 
virtually every workforce development board in the country.
  In fact, if the Administration's Fiscal Year 2004 budget request is 
appropriated, my amendment would result in an increase of no less than 
$77.5 million in guaranteed formula- or need-based funding in areas 
with the highest demand for assistance.
  Specifically, the amendment requires that no less than 85 percent of 
the total funds allocated to local boards under the Comprehensive 
Employment and Training Activities for Adults program are formula-
based. H.R. 1261, as reported, establishes a formula for this funding 
that takes into consideration the unemployment rate of a given area 
compared with the entire state and size of the workforce. Further, it 
gives priority to those living in areas of high unemployment, as well 
as disadvantaged individuals.
  My amendment ensures that those areas with the highest unemployment 
rates and need for job training receive the greatest level of immediate 
and guaranteed assistance.
  Even more, my amendment limits the ability of governors--Democrat or 
Republican--to play politics with adult job training and education 
funds, as well as those funds intended for dislocated worker 
assistance. The amendment is fair, and it is certainly in line with 
what Congress intended when it initially passed the Workforce 
Investment Act in 1998.
  Mr. Chairman, America is faced with an unemployment epidemic of 
enormous proportion. Today, 8.8 million hard working Americans are out 
of jobs, many for reasons beyond their own control. Nearly 2 million of 
them have been without work for 27 weeks, and the average length of 
unemployment is almost 20 weeks, the highest since 1984.
  Unfortunately, relief is nowhere in sight. 4.8 million workers are 
stuck in part-time jobs because they can't find full-time work, and 
there is a meager one job available for every three unemployed workers 
looking.
  My amendment sends guaranteed help to those most in need. It places 
assistance over politics and ensures that those without jobs receive a 
greater level of assistance than they currently do under H.R. 1261.
  I urge my colleagues to support my amendment.
  Mr. BOEHNER. Mr. Chairman, will the gentleman yield?
  Mr. HASTINGS of Florida. I yield to the gentleman from Ohio.
  Mr. BOEHNER. Mr. Chairman, I thank the gentleman from Florida for 
yielding.
  Under the bill 80 percent of the funds are, under formula, to go to 
the local boards. This would bring that to 85 percent. I do think it 
gives the local boards more certainty over exactly the kind of funding 
that they should expect from year to year, would reduce the amount of 
dislocation or expectation as to what is coming in. I think he makes a 
valuable contribution, and we would be pleased to accept the amendment.
  Mr. HASTINGS of Florida. Mr. Chairman, I thank the gentleman.
  Mr. KILDEE. Mr. Chairman, I yield back the balance of my time.
  The CHAIRMAN. The question is on the amendment offered by the 
gentleman from Michigan (Mr. Kildee).
  The amendment was agreed to.
  The CHAIRMAN. It is now in order to consider amendment No. 7 printed 
in House Report 108-92.


           Amendment No. 7 Offered by Ms. Millender-McDonald

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

       Amendment No. 7 offered by Ms. Millender-McDonald:
       Page 65, line 14, insert ``, including single parents, 
     displaced homemakers, and pregnant single women,'' after 
     ``individuals''.

  The CHAIRMAN. Pursuant to House Resolution 221, the gentlewoman from 
California (Ms. Millender-McDonald) and a Member opposed each will 
control 5 minutes.
  The Chair recognizes the gentlewoman from California (Ms. Millender-
McDonald) on her amendment.
  Ms. MILLENDER-McDONALD. Mr. Chairman, I yield myself such time as I 
may consume.

[[Page 10939]]

  I thank the committee for the work that they have done on this act.
  I am here today to offer my amendment to H.R. 1261. My concern is 
reflected in my amendment, and it is to ensure that all training and 
intensive services offered under the Workforce Investment Act continues 
to focus on displaced homemakers, single parents, and teen pregnant 
parents. It is imperative that displaced homemakers and other women in 
need are prepared for employment in nontraditional careers and that 
once they are employed they will be able to achieve a level of self-
sufficiency. I have had first hand on this issue as I served as the 
director of Gender Equity in Los Angeles.
  Men and women go to work because families depend more on women's 
income now more than ever before. Today's families with two full-time 
incomes are the least likely to live in poverty. Some women work 
because they are especially in need of economic independence that a job 
brings. Currently, there are 7 million displaced homemakers and 10 
million single mothers living in the United States. And given the 
economic decline, I want to be certain that these individuals' needs 
continue to be met as they will be entering the workforce. As of 2001, 
working women were 40 percent more likely to be poor than working men 
and 6.6 percent of working women were living below the poverty line, 
according to the U.S. Census Bureau.
  What we have learned since the JTPA was replaced by the WIA is that 
under the former JTPA, 149,356 displaced workers received job training 
in 1998, while 42,426 dislocated workers completed job training under 
its replacement, the Workforce Investment Act, or WIA, through the end 
of 2000. However, these numbers are not reflective of the displaced 
homemakers, the single parents, and the teen parents, and these are the 
folks who are in dire need of job training. While 40,468 displaced and 
dislocated workers were participating in the WIA training service in 
2000, and they were women, we still are not recruiting, Mr. Chairman, 
or identifying those classes of prospective workers who need the job 
training necessary for a productive work success.
  Among the adults served by WIA through 2000, 60 percent were women, 
78 percent of those whom we talk about were unemployed upon the 
registration and 11 percent of whom received the TANF, Temporary 
Assistance for Needy Families. Fifty-eight percent of the adults 
participating in WIA in 2000 either held high school diplomas or had 
attained a higher level of education. About 40 percent of these adults 
received training services. While this is very important, it does not 
address those who are lacking a high school diploma or were unable to 
complete their education because of family matters.
  Mr. Chairman, it should be noted that 121,000 fewer adults were 
trained under WIA in 2000 than received training under JTPA in 1998. 
These displaced homemakers and single parents are also greatly in need 
of the comprehensive job training services offered by WIA. We will be 
doing a great disservice to these women, particularly those from 
disadvantaged backgrounds, if we fail to adequately expose and educate 
them to work in high technology and nontraditional jobs.
  Given the statistics in how these women are underrepresented in job 
training, we can and must do more to assist these displaced homemakers, 
single parents, and teen parents who are seeking employment for the 
first time as well as those who need to acquire 21st century skills in 
order to become marketable and economically self-sufficient in the 
emerging 21st century workplace. They are our today and tomorrow 
workforce. We must prepare them through comprehensive training and 
intensive service for this new high tech work environment.
  Mr. BOEHNER. Mr. Chairman, will the gentlewoman yield?
  Ms. MILLENDER-McDONALD. I yield to the gentleman from Ohio.
  Mr. BOEHNER. Mr. Chairman, I think the gentlewoman does make an 
important contribution to the bill and clarifies that these out-of-work 
homemakers and single mothers do in fact play a role and do need 
services and should in fact be considered in a higher level as funds 
are being distributed to the local boards, and I ask Members to support 
the gentlewoman's amendment.
  Ms. MILLENDER-McDONALD. Mr. Chairman, I thank the distinguished 
chairman.
  Mr. Chairman, I yield back the balance of my time.
  The CHAIRMAN. The question is on the amendment offered by the 
gentlewoman from California (Ms. Millender-McDonald).
  The amendment was agreed to.
  The CHAIRMAN. It is now in order to consider amendment No. 8 printed 
in House Report 108-92.


                 Amendment No. 8 Offered by Ms. Kaptur

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

       Amendment No. 8 offered by Ms. Kaptur:
       Page 86, line 20, insert ``assistance regarding accounting 
     and program operation practices (when such assistance would 
     not be duplicative to assistance provided by the State),'' 
     after ``this title,''.
       Page 87, line 2, strike the period and insert ``; and''
       Page 87, after line 2, inset the following:
       (5) by inserting, after subsection (c) (as redesignated by 
     paragraph (3)), the following:
       ``(d) Best Practices Coordination.--The Secretary shall 
     establish a system whereby States may share information 
     regarding best practices with regards to the operation of 
     workforce investment activities under this Act.''

  The CHAIRMAN. Pursuant to House Resolution 221, the gentlewoman from 
Ohio (Ms. Kaptur) and a Member opposed each will control 5 minutes.
  The Chair recognizes the gentlewoman from Ohio (Ms. Kaptur) on her 
amendment.
  Ms. KAPTUR. Mr. Chairman, I yield myself such time as I may consume.
  I want to thank the Committee on Rules. I want to thank the gentleman 
from Ohio (Mr. Boehner) of the Committee on Education and the Workforce 
and the gentleman from Michigan (Mr. Kildee), ranking member, for 
allowing us to move this amendment today, and I want to acknowledge the 
hard work of Keysha Brooks-Coley on my own staff who has worked so very 
hard on this amendment and others.
  This past Friday the Department of Labor reported that unemployment 
again went up in our country to a level of 8.8 million citizens, of 
which at least 250,000 are unemployed in the State of Ohio, and the 
unemployment level is now somewhere around 6 percent of those that we 
are still counting.
  Without question people need access to training and to transitional 
assistance, which this bill offers so much hope to those who are 
struggling out there, trying to find a good-paying job with good 
benefits. The amendment I have proposed would strengthen the technical 
assistance provisions of the underlying bill to allow the Department of 
Labor where a State does not do it to give help to localities to apply 
for the program and to administer the program.

                              {time}  1415

  It would also require that a best practices system be established at 
the Department of Labor, so if a county in New York wants to learn what 
a county in Illinois might have done, or vice versa, that that would be 
available.
  The amendment would require the Department of Labor to establish a 
coordinated system so there is no duplication at all. For example, in 
the technical assistance, it would only be allowed to be provided when 
the State itself is not doing it.
  So this amendment was two parts: to better help the localities to 
apply, and then best practices.
  I would like to just say for the record, if I could, Mr. Chairman, 
that we did try to offer another amendment and it was not allowed in 
order in the Committee on Rules. But I do think it is important with 
the gentleman from Ohio (Chairman Boehner) and the ranking member, the 
gentleman from California (Mr. George Miller), here on the floor, to 
just state for the record that in a State like Ohio, which ranks at the 
bottom in terms of drawdowns of

[[Page 10940]]

these funds, I really hope that as this bill is perfected, as it moves 
over to the other body and through conference, that some thought might 
be given to the accounting aspect of our funds, the Federal funds that 
are sent to the States, and to require quarterly reports, and also to 
differentiate between allocations to the State and actual expenditures 
by the State and the local counties.
  Believe me, its impossible to get this information. We cannot even 
obtain it for a State like our own from the Department of Labor. We 
asked the General Accounting Office to become involved in this. Even 
they have not been able to obtain these numbers.
  Frankly, I would like to strongly recommend to the committee that if 
dollars have not been spent by the States that there be a pass-through 
to the localities, so that our counties that are dealing with 
unemployed people and people needing training every day would have the 
flexibility to expend funds that, for whatever reason, seem to be 
getting lost or stored at the State capital level and never really 
getting down to those who need to establish contracts for trading with 
those who are unemployed.
  Mr. Chairman, although this amendment does not deal with that, I 
would ask Members for strong consideration of the amendment that does 
require technical assistance to be given by the Department of Labor if 
the States are not doing it and also to establish this best-practices 
opportunity at the Department of Labor, so people can learn across our 
country, from one State to another, from one county to another, and 
strongly urge the committee to think about requiring strict accounting 
of these dollars, with quarterly reports and differentiating between 
expenditures and allocations, and then, if the State is not spending 
the money, allowing the locality to receive the pass-through of those 
funds.
  I would ask for support of this amendment.
  The CHAIRMAN. Does any Member claim the time in opposition?
  Mr. BOEHNER. Mr. Chairman, I ask unanimous consent to claim the time 
in opposition, even though I am not opposed to the gentlewoman's 
amendment.
  The CHAIRMAN. Without objection, the gentleman from Ohio (Mr. 
Boehner) is recognized for 5 minutes.
  There was no objection.
  Mr. BOEHNER. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, let me ask my colleagues to support the gentlewoman 
from Ohio's amendment. I think for those States that do not provide the 
technical assistance to the local boards, they need that help, 
especially in terms of the financial integrity of the funds that they 
are dealing with. I do believe that the Department is in a position to 
do that. I would obviously think the sharing of best practices, that 
forum needs to occur, and somewhere at the Department of Labor is the 
most likely place for it to occur.
  I should note with regard to the other amendment that the gentlewoman 
had offered that was not made in order under the rule dealing with the 
financial integrity of the monies that move from here to the States, 
that we do clarify the issue of obligations versus expenditures, which 
we think is an important step in ensuring that there is a clear picture 
of what the drawdown numbers are, which today I do not think is as 
clear as it could be.
  We will continue to work with the gentlewoman as we get into 
conference at some point with the Senate in terms of ensuring that 
these Federal funds are used for their intended purpose.
  With that, I would urge my colleagues to support the gentlewoman's 
amendment.
  Mr. Chairman, I yield back the balance of my time.
  Ms. KAPTUR. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, let me just thank the chairman very much for his 
openness to these amendments and for working on this with us to perfect 
the legislation as it moves through the process. I am very grateful for 
that and grateful to the gentleman from California (Mr. George Miller), 
the gentleman from Michigan (Mr. Kildee), and the Committee on Rules.
  Mr. Chairman, I yield back the balance of my time.
  The CHAIRMAN. All time having expired, the question is on the 
amendment offered by the gentlewoman from Ohio (Ms. Kaptur).
  The amendment was agreed to.


                 Amendment No. 3 Offered by Mr. Vitter

  The CHAIRMAN. The pending business is the demand for a recorded vote 
on the amendment offered by the gentleman from Louisiana (Mr. Vitter) 
on which further proceedings were postponed and on which the ayes 
prevailed by voice vote.
  The Clerk will redesignate the amendment.
  The Clerk redesignated the amendment.


                             Recorded Vote

  The CHAIRMAN. A recorded vote has been demanded.
  A recorded vote was ordered.
  The vote was taken by electronic device, and there were--ayes 423, 
noes 0, not voting 11, as follows:

                             [Roll No. 173]

                               AYES--423

     Abercrombie
     Ackerman
     Aderholt
     Akin
     Alexander
     Allen
     Baca
     Bachus
     Baird
     Baker
     Baldwin
     Ballance
     Ballenger
     Barrett (SC)
     Bartlett (MD)
     Barton (TX)
     Bass
     Beauprez
     Becerra
     Bell
     Bereuter
     Berkley
     Berman
     Berry
     Biggert
     Bilirakis
     Bishop (GA)
     Bishop (NY)
     Bishop (UT)
     Blackburn
     Blumenauer
     Blunt
     Boehlert
     Boehner
     Bonilla
     Bonner
     Bono
     Boozman
     Boswell
     Boucher
     Boyd
     Bradley (NH)
     Brady (PA)
     Brady (TX)
     Brown (OH)
     Brown (SC)
     Brown, Corrine
     Brown-Waite, Ginny
     Burgess
     Burns
     Burr
     Burton (IN)
     Buyer
     Calvert
     Camp
     Cannon
     Cantor
     Capito
     Capps
     Capuano
     Cardin
     Cardoza
     Carson (IN)
     Carson (OK)
     Carter
     Case
     Castle
     Chabot
     Chocola
     Clay
     Clyburn
     Coble
     Cole
     Collins
     Cooper
     Costello
     Cox
     Cramer
     Crane
     Crenshaw
     Crowley
     Cubin
     Culberson
     Cummings
     Cunningham
     Davis (AL)
     Davis (CA)
     Davis (FL)
     Davis (IL)
     Davis (TN)
     Davis, Jo Ann
     Davis, Tom
     Deal (GA)
     DeFazio
     DeGette
     Delahunt
     DeLauro
     DeMint
     Deutsch
     Diaz-Balart, L.
     Diaz-Balart, M.
     Dicks
     Doggett
     Dooley (CA)
     Doolittle
     Doyle
     Dreier
     Duncan
     Dunn
     Edwards
     Ehlers
     Emanuel
     Emerson
     Engel
     English
     Eshoo
     Etheridge
     Evans
     Everett
     Farr
     Fattah
     Ferguson
     Filner
     Flake
     Fletcher
     Foley
     Forbes
     Ford
     Fossella
     Frank (MA)
     Franks (AZ)
     Frelinghuysen
     Frost
     Gallegly
     Garrett (NJ)
     Gerlach
     Gibbons
     Gilchrest
     Gillmor
     Gingrey
     Gonzalez
     Goode
     Goodlatte
     Gordon
     Granger
     Graves
     Green (TX)
     Green (WI)
     Greenwood
     Grijalva
     Gutierrez
     Gutknecht
     Hall
     Harman
     Harris
     Hart
     Hastings (FL)
     Hastings (WA)
     Hayes
     Hayworth
     Hefley
     Hensarling
     Herger
     Hill
     Hinchey
     Hinojosa
     Hobson
     Hoeffel
     Hoekstra
     Holden
     Holt
     Honda
     Hooley (OR)
     Hostettler
     Houghton
     Hoyer
     Hulshof
     Hunter
     Hyde
     Inslee
     Isakson
     Israel
     Issa
     Istook
     Jackson (IL)
     Jackson-Lee (TX)
     Janklow
     Jefferson
     Jenkins
     John
     Johnson (CT)
     Johnson (IL)
     Johnson, E. B.
     Johnson, Sam
     Jones (NC)
     Jones (OH)
     Kanjorski
     Kaptur
     Keller
     Kelly
     Kennedy (MN)
     Kennedy (RI)
     Kildee
     Kilpatrick
     Kind
     King (IA)
     King (NY)
     Kingston
     Kirk
     Kleczka
     Kline
     Knollenberg
     Kolbe
     Kucinich
     LaHood
     Lampson
     Langevin
     Lantos
     Larsen (WA)
     Larson (CT)
     Latham
     LaTourette
     Leach
     Lee
     Levin
     Lewis (CA)
     Lewis (GA)
     Lewis (KY)
     Linder
     Lipinski
     LoBiondo
     Lofgren
     Lowey
     Lucas (KY)
     Lucas (OK)
     Lynch
     Majette
     Maloney
     Manzullo
     Markey
     Marshall
     Matheson
     Matsui
     McCarthy (MO)
     McCarthy (NY)
     McCollum
     McCotter
     McCrery
     McDermott
     McGovern
     McHugh
     McInnis
     McIntyre
     McKeon
     McNulty
     Meehan
     Meek (FL)
     Meeks (NY)
     Menendez
     Mica
     Michaud
     Millender-McDonald
     Miller (FL)
     Miller (MI)
     Miller (NC)
     Miller, George
     Mollohan
     Moore
     Moran (KS)
     Moran (VA)
     Murphy
     Murtha
     Musgrave
     Myrick
     Nadler
     Napolitano
     Neal (MA)
     Nethercutt
     Ney
     Northup
     Norwood
     Nunes
     Nussle
     Oberstar
     Obey
     Olver
     Ortiz
     Osborne
     Ose
     Otter
     Owens
     Oxley
     Pallone
     Pascrell
     Pastor
     Paul
     Payne
     Pearce
     Pelosi
     Pence
     Peterson (MN)
     Peterson (PA)
     Petri
     Pickering
     Pitts
     Platts

[[Page 10941]]


     Pombo
     Pomeroy
     Porter
     Portman
     Price (NC)
     Pryce (OH)
     Putnam
     Quinn
     Radanovich
     Rahall
     Ramstad
     Rangel
     Regula
     Rehberg
     Renzi
     Reyes
     Reynolds
     Rodriguez
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Ros-Lehtinen
     Ross
     Rothman
     Roybal-Allard
     Royce
     Ruppersberger
     Rush
     Ryan (OH)
     Ryan (WI)
     Ryun (KS)
     Sabo
     Sanchez, Linda T.
     Sanchez, Loretta
     Sanders
     Sandlin
     Saxton
     Schakowsky
     Schiff
     Scott (GA)
     Scott (VA)
     Sensenbrenner
     Serrano
     Sessions
     Shadegg
     Shaw
     Shays
     Sherman
     Sherwood
     Shimkus
     Shuster
     Simmons
     Simpson
     Skelton
     Slaughter
     Smith (MI)
     Smith (NJ)
     Smith (TX)
     Smith (WA)
     Snyder
     Solis
     Souder
     Spratt
     Stark
     Stearns
     Stenholm
     Strickland
     Stupak
     Sullivan
     Sweeney
     Tancredo
     Tanner
     Tauscher
     Tauzin
     Taylor (MS)
     Taylor (NC)
     Terry
     Thomas
     Thompson (CA)
     Thompson (MS)
     Thornberry
     Tiahrt
     Tiberi
     Tierney
     Toomey
     Towns
     Turner (OH)
     Turner (TX)
     Udall (CO)
     Udall (NM)
     Upton
     Van Hollen
     Velazquez
     Visclosky
     Vitter
     Walden (OR)
     Walsh
     Wamp
     Waters
     Watson
     Watt
     Waxman
     Weiner
     Weldon (FL)
     Weldon (PA)
     Weller
     Wexler
     Whitfield
     Wicker
     Wilson (NM)
     Wilson (SC)
     Wolf
     Woolsey
     Wu
     Wynn
     Young (AK)
     Young (FL)

                             NOT VOTING--11

     Andrews
     Combest
     Conyers
     DeLay
     Dingell
     Feeney
     Gephardt
     Goss
     Miller, Gary
     Rohrabacher
     Schrock


                      Announcement by the Chairman

  The CHAIRMAN (during the vote). Members are advised there are 2 
minutes left to vote.

                              {time}  1440

  Ms. DeLAURO changed her vote from ``no'' to ``aye.''
  So the amendment was agreed to.
  The result of the vote was announced as above recorded.
  Stated for:
  Mr. GOSS. Mr. Chairman, on rollcall No. 173, I was unavoidably 
detained. Had I been present, I would have voted ``aye.''
  The CHAIRMAN. The question is on the committee amendment in the 
nature of a substitute, as amended.
  The committee amendment in the nature of a substitute, as amended, 
was agreed to.
  The CHAIRMAN. Under the rule, the Committee rises.
  Accordingly, the Committee rose; and the Speaker pro tempore (Mr. 
LaTourette) having assumed the chair, Mr. LaHood, Chairman of the 
Committee of the Whole House on the State of the Union, reported that 
that Committee, having had under consideration the bill (H.R. 1261) to 
enhance the workforce investment system of the Nation by strengthening 
one-stop career centers, providing for more effective governance 
arrangements, promoting access to a more comprehensive array of 
employment, training, and related services, establishing a targeted 
approach to serving youth, and improving performance accountability, 
and for other purposes, pursuant to House Resolution 221, he reported 
the bill back to the House with an amendment adopted by the Committee 
of the Whole.
  The SPEAKER pro tempore. Under the rule, the previous question is 
ordered.
  Is a separate vote demanded on any amendment to the committee 
amendment in the nature of a substitute adopted by the Committee of the 
Whole? If not, the question is on the amendment.
  The amendment was agreed to.
  The SPEAKER pro tempore. The question is on the engrossment and third 
reading of the bill.
  The bill was ordered to be engrossed and read a third time, and was 
read the third time.


     Motion to Recommit Offered by Mr. George Miller of California

  Mr. GEORGE MILLER of California. Mr. Speaker, I offer a motion to 
recommit.
  The SPEAKER pro tempore. Is the gentleman opposed to the bill?
  Mr. GEORGE MILLER of California. I am, Mr. Speaker.
  The SPEAKER pro tempore. The Clerk will report the motion to 
recommit.
  The Clerk read as follows:

       Mr. George Miller of California moves to recommit the bill 
     H.R. 1261 to the Committee on Education and the Workforce 
     with instructions to report the same back to the House 
     promptly with an amendment that will achieve the policy of 
     providing direct spending for 26 weeks of income support for 
     unemployed individuals who have exhausted regular 
     unemployment benefits and an additional 13 weeks of income 
     support for individuals who have exhausted their Federal 
     extended unemployment benefits, through the Workforce 
     Investment Act in a manner equivalent to the receipt of 
     Federal extended unemployment insurance benefits.

                              {time}  1445

  The SPEAKER pro tempore (Mr. LaTourette). Pursuant to the rule, the 
gentleman from California (Mr. George Miller) is recognized for 5 
minutes in support of his motion.
  Mr. GEORGE MILLER of California. Mr. Speaker, I yield 2 minutes to 
the gentleman from Maryland (Mr. Cardin).
  Mr. CARDIN. Mr. Speaker, this week in the Committee on Ways and Means 
we attempted to offer this amendment to extend unemployment insurance 
benefits for those people who are going to lose their benefits at the 
end of this month.
  That bill will spend $550 billion but does not provide one penny for 
those people who are going to lose their unemployment insurance 
benefits at the end of this month. Every prior recession we have 
extended Federal unemployment benefits for far longer than we have in 
this recession even though this recession is deeper than the prior 
recessions.
  Mr. Speaker, in the next 6 months if we do not extend Federal 
unemployment insurance, 2 million of our fellow citizens are going to 
exhaust their State benefits. We have already seen 1 million of our 
citizens exhaust their extended benefits. What this motion simply does 
is we should be extending Federal unemployment insurance by 26 weeks 
and for those who have exhausted their benefits under the Federal 
system, an additional 13 weeks.
  Mr. Speaker, the money is in the Federal unemployment trust account 
to pay for this; $21 billion is there. The money is there just for that 
reason, for a recession. We should do it. For those who are interested 
in helping stimulate the economy, the study by the Department of Labor 
found that every dollar of unemployment benefits generated $2.15 of 
economic activity. It is the right policy to do. It will help our 
economy. We have done it in the past on a bipartisan basis. We are 
going to use every opportunity we can. We have to do this before the 
end of this month.
  I urge my colleagues to support the motion to recommit so that we can 
move forward to help the unemployed in our community.
  Mr. Speaker, I thank the gentleman for yielding me time.
  Mr. GEORGE MILLER of California. Mr. Speaker, I yield 1 minute to the 
gentleman from Michigan (Mr. Kildee).
  Mr. KILDEE. Mr. Speaker, this motion responds to the economic 
realities that American families are facing today. We have 8.8 million 
individuals who are out of work. We have a growing budget deficit of 
about a half trillion dollars. Most alarming is the fact that three 
unemployed individuals are competing for every job.
  In light of these dire economic conditions, this motion responds to 
America's needs by extending UI benefits. This motion would extend UI 
benefits for 26 weeks for newly unemployed workers and 13 weeks for 
those who have exhausted their benefits. Mr. Speaker, over 42 percent 
of those individuals who have exhausted their benefits are still 
unemployed under the present economic conditions.
  Mr. Speaker, nearly 9 million workers are unemployed. The current UI 
extension expires at the end of this month, only 24 days from now. 
Where is the compassion of this House? How can we leave our Nation's 
families guessing as to when their next meal will be coming?
  Mr. Speaker, this motion deserves the support of the House today.
  The SPEAKER pro tempore. The gentleman from California (Mr. George 
Miller) has 2\1/2\ minutes remaining on this motion.
  Mr. GEORGE MILLER of California. Mr. Speaker, I yield myself such 
time as I may consume.

[[Page 10942]]

  Mr. Speaker, this amendment would have the effect of providing an 
equivalent of 26 weeks of unemployment insurance to individuals who 
have exhausted both their State and their Federal extended benefits. 
The importance of this amendment is that it can provide a certainty to 
those people who are going to exhaust their benefits to know that these 
benefits will be there. We have tried in the Committee on Ways and 
Means yesterday to offer an amendment to send a message to these 
families. It was rejected. We tried in our committee. It was rejected. 
We tried in the Committee on Rules last night. It was rejected.
  None of you, if you were in the situation of these families, would 
want to be taken up to the eve of the exhaustion of your benefits or, 
as we did a few months ago, we went past the exhaustion of the 
benefits. They exhausted on the 31st, and we went into January before 
we approved those benefits.
  We owe it to these families. These families were working before their 
job disappeared. They are trying to provide for their families. They 
are trying to provide for their health care. They are trying to provide 
for their education and keep their house and keep their car. The least 
we can do is let them know in advance, but so far the Republican 
leadership has refused to do that.
  The administration claims that they are still debating on whether or 
not they will extend the unemployment benefits upon exhaustion. Every 
member of our committee voted for this amendment. Every member of our 
committee on our side of the aisle spoke for this amendment because it 
is a compassionate thing to do. It is a decent thing to do, and it is a 
smart economical thing to do because this money to these families will 
enable them to participate in the economy and put demand into the 
economy. It is the minimum that we can do. We would like to just have a 
simple extension of the unemployments benefits, but so far there has 
been a deaf ear on the other side of the aisle on that matter.
  So we would like to have this motion to recommit to succeed, to go 
back and to extend the equivalent of those 26 weeks to those 
individuals and to those families that are in dire straits. A million 
more families have exhausted their benefits than at this time in the 
last recession. The severity and the duration of this economic downturn 
is such, and this administration has yet to take a single step, a 
single step to help create jobs in this country, to help create the 
benefits for these individuals that they need.
  That is what this amendment helps us to address. The first plan of 
this administration was a massive failure. They passed their big tax 
cut, a trillion dollars, and we have lost 2\1/2\ million jobs. We 
cannot just do more of the same. The American families that are under 
this economic stress in this job market in this lousy economy deserve 
better.
  Mr. BOEHNER. Mr. Speaker, I rise in opposition to the motion to 
recommit.
  The SPEAKER pro tempore. The gentleman from Ohio (Mr. Boehner) is 
recognized for 5 minutes.
  Mr. BOEHNER. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, the bill before us is about helping job seekers find 
meaningful employment. And we know the one-stop shops have worked. And 
the underlying bill seeks to fine-tune that process, to make it more 
effective in helping more people find and keep meaningful employment.
  Now, the motion to recommit is about the issue of unemployment 
insurance, something that is not in the purview of our committee. Now, 
Members in this House on both sides of the aisle have worked together 
to extends unemployment benefits on a regular basis, and I have full 
confidence that we will continue to do that if the need persists.
  We are going to continue to meet our commitment and our resolve in 
this Congress to help those who are in fact unemployed. But let me just 
point out that if anyone thinks that the motion to recommit is going to 
result in one unemployed worker getting one additional dollar this 
year, they are wrong. This does not extend unemployment insurance 
through the unemployment insurance system. It would take the money and 
send it to the local one-stops, who have no system for distributing 
unemployment, and require them to distribute the money.
  I will guarantee you there is not one dime that would flow to one 
unemployed worker within 2 years under this mechanism that was set up 
within the rules of the House in order to try to get this issue on the 
table today.
  And if there is something that is even worse than that, in the motion 
to recommit it refers it back to the committee and we are promptly to 
deal with it. For those of you who are not that familiar with the 
nuance, that means the bill is dead forever.
  Mr. Speaker, I yield the balance of my time to the gentleman from 
California (Mr. Thomas), the chairman of the Committee on Ways and 
Means.
  Mr. THOMAS. Mr. Speaker, I thank the gentleman for yielding me time.
  We are the committee that will deal with the issue. And the gentleman 
from Ohio (Mr. Boehner), the chairman of the Committee on Education and 
the Workforce, is correct, this motion to recommit says promptly, not 
forthwith. That means that everything they said means absolutely 
nothing, or perhaps that is too drastic a statement. When they said 
that they are going to have spending for 26 weeks, that is a bubble; 
and if you touch it, it bursts. When they said they are going to 
provide an additional 18 weeks of income support, that is a bubble; and 
if you touch it, it bursts, because the underlying structure of this 
motion to recommit kills the bill. That is what this motion to recommit 
does. No one will lose their unemployment payment, currently 
unemployed, all the way through August.
  The gentleman from Maryland was correct, there are sufficient funds. 
The Committee on Ways and Means will act. The problem is they want to 
create a phony issue at a phony time so that they can act like they are 
going to do something. What they propose to do is blow bubbles. We 
propose to act and solve the problem. Vote ``yes'' on the motion to 
recommit, you kill the bill. Vote ``no'' and you will get an addressing 
of this problem in an appropriate time frame.
  The SPEAKER pro tempore. Without objection, the previous question is 
ordered on the motion to recommit.
  There was no objection.
  The SPEAKER pro tempore. The question is on the motion to recommit.
  The question was taken; and the Speaker pro tempore announced that 
the noes appeared to have it.
  Mr. GEORGE MILLER of California. Mr. Speaker, on that I demand the 
yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 9 of rule XX, the Chair 
will reduce to 5 minutes the minimum time for any electronic votes on 
the question of final passage and on the motion to suspend the rules 
and agree to House Resolution 213.
  The vote was taken by electronic device, and there were--yeas 202, 
nays 223, not voting 9, as follows:

                             [Roll No. 174]

                               YEAS--202

     Abercrombie
     Ackerman
     Alexander
     Allen
     Baca
     Baird
     Baldwin
     Ballance
     Becerra
     Bell
     Berkley
     Berman
     Berry
     Bishop (GA)
     Bishop (NY)
     Blumenauer
     Boswell
     Boucher
     Boyd
     Brady (PA)
     Brown (OH)
     Brown, Corrine
     Capps
     Capuano
     Cardin
     Cardoza
     Carson (IN)
     Carson (OK)
     Case
     Clay
     Clyburn
     Conyers
     Cooper
     Costello
     Cramer
     Crowley
     Cummings
     Davis (AL)
     Davis (CA)
     Davis (FL)
     Davis (IL)
     Davis (TN)
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Deutsch
     Dicks
     Doggett
     Dooley (CA)
     Doyle
     Edwards
     Emanuel
     Engel
     Eshoo
     Etheridge
     Evans
     Farr
     Fattah
     Filner
     Ford
     Frank (MA)
     Frost
     Gonzalez
     Gordon
     Green (TX)
     Grijalva
     Gutierrez
     Harman
     Hastings (FL)
     Hill
     Hinchey
     Hinojosa
     Hoeffel
     Holden
     Holt
     Honda
     Hooley (OR)
     Hoyer
     Inslee
     Israel
     Jackson (IL)
     Jackson-Lee (TX)
     Jefferson
     John
     Johnson, E. B.
     Jones (OH)
     Kanjorski
     Kaptur
     Kennedy (RI)
     Kildee
     Kilpatrick
     Kind
     Kleczka
     Kucinich
     Lampson
     Langevin
     Lantos
     Larsen (WA)
     Larson (CT)
     Lee

[[Page 10943]]


     Levin
     Lewis (GA)
     Lipinski
     Lofgren
     Lowey
     Lucas (KY)
     Lynch
     Majette
     Maloney
     Markey
     Marshall
     Matheson
     Matsui
     McCarthy (MO)
     McCarthy (NY)
     McCollum
     McDermott
     McGovern
     McIntyre
     McNulty
     Meehan
     Meek (FL)
     Meeks (NY)
     Menendez
     Michaud
     Millender-McDonald
     Miller (NC)
     Miller, George
     Mollohan
     Moore
     Moran (VA)
     Murtha
     Nadler
     Napolitano
     Neal (MA)
     Oberstar
     Obey
     Olver
     Ortiz
     Owens
     Pallone
     Pascrell
     Pastor
     Payne
     Pelosi
     Peterson (MN)
     Pomeroy
     Price (NC)
     Rahall
     Rangel
     Reyes
     Rodriguez
     Ross
     Rothman
     Roybal-Allard
     Ruppersberger
     Rush
     Ryan (OH)
     Sabo
     Sanchez, Linda T.
     Sanchez, Loretta
     Sanders
     Sandlin
     Schakowsky
     Schiff
     Scott (GA)
     Scott (VA)
     Serrano
     Sherman
     Skelton
     Slaughter
     Smith (WA)
     Snyder
     Solis
     Spratt
     Stark
     Stenholm
     Strickland
     Stupak
     Tanner
     Tauscher
     Taylor (MS)
     Thompson (CA)
     Thompson (MS)
     Tierney
     Towns
     Turner (TX)
     Udall (CO)
     Udall (NM)
     Van Hollen
     Velazquez
     Visclosky
     Waters
     Watson
     Watt
     Waxman
     Weiner
     Wexler
     Woolsey
     Wu
     Wynn

                               NAYS--223

     Aderholt
     Akin
     Bachus
     Baker
     Ballenger
     Barrett (SC)
     Bartlett (MD)
     Barton (TX)
     Bass
     Beauprez
     Bereuter
     Biggert
     Bilirakis
     Bishop (UT)
     Blackburn
     Blunt
     Boehlert
     Boehner
     Bonilla
     Bonner
     Bono
     Boozman
     Bradley (NH)
     Brady (TX)
     Brown (SC)
     Brown-Waite, Ginny
     Burgess
     Burns
     Burr
     Burton (IN)
     Buyer
     Calvert
     Camp
     Cannon
     Cantor
     Capito
     Carter
     Castle
     Chabot
     Chocola
     Coble
     Cole
     Collins
     Cox
     Crane
     Crenshaw
     Cubin
     Culberson
     Cunningham
     Davis, Jo Ann
     Davis, Tom
     Deal (GA)
     DeMint
     Diaz-Balart, L.
     Diaz-Balart, M.
     Doolittle
     Dreier
     Duncan
     Dunn
     Ehlers
     Emerson
     English
     Everett
     Ferguson
     Flake
     Fletcher
     Foley
     Forbes
     Fossella
     Franks (AZ)
     Frelinghuysen
     Gallegly
     Garrett (NJ)
     Gerlach
     Gibbons
     Gilchrest
     Gillmor
     Gingrey
     Goode
     Goodlatte
     Goss
     Granger
     Graves
     Green (WI)
     Greenwood
     Gutknecht
     Hall
     Harris
     Hart
     Hastings (WA)
     Hayes
     Hayworth
     Hefley
     Hensarling
     Hobson
     Hoekstra
     Hostettler
     Houghton
     Hulshof
     Hunter
     Hyde
     Isakson
     Issa
     Istook
     Janklow
     Jenkins
     Johnson (CT)
     Johnson (IL)
     Johnson, Sam
     Jones (NC)
     Keller
     Kelly
     Kennedy (MN)
     King (IA)
     King (NY)
     Kingston
     Kirk
     Kline
     Knollenberg
     Kolbe
     LaHood
     Latham
     LaTourette
     Leach
     Lewis (CA)
     Lewis (KY)
     Linder
     LoBiondo
     Lucas (OK)
     Manzullo
     McCotter
     McCrery
     McHugh
     McInnis
     McKeon
     Mica
     Miller (FL)
     Miller (MI)
     Moran (KS)
     Murphy
     Musgrave
     Myrick
     Nethercutt
     Ney
     Northup
     Norwood
     Nunes
     Nussle
     Osborne
     Ose
     Otter
     Oxley
     Paul
     Pearce
     Pence
     Peterson (PA)
     Petri
     Pickering
     Pitts
     Platts
     Pombo
     Porter
     Portman
     Pryce (OH)
     Putnam
     Quinn
     Radanovich
     Ramstad
     Regula
     Rehberg
     Renzi
     Reynolds
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Ros-Lehtinen
     Royce
     Ryan (WI)
     Ryun (KS)
     Saxton
     Sensenbrenner
     Sessions
     Shadegg
     Shaw
     Shays
     Sherwood
     Shimkus
     Shuster
     Simmons
     Simpson
     Smith (MI)
     Smith (NJ)
     Smith (TX)
     Souder
     Stearns
     Sullivan
     Sweeney
     Tancredo
     Tauzin
     Taylor (NC)
     Terry
     Thomas
     Thornberry
     Tiahrt
     Tiberi
     Toomey
     Turner (OH)
     Upton
     Vitter
     Walden (OR)
     Walsh
     Wamp
     Weldon (FL)
     Weldon (PA)
     Weller
     Whitfield
     Wicker
     Wilson (NM)
     Wilson (SC)
     Wolf
     Young (AK)
     Young (FL)

                             NOT VOTING--9

     Andrews
     Combest
     DeLay
     Dingell
     Feeney
     Gephardt
     Herger
     Miller, Gary
     Schrock


                Announcement by the Speaker Pro Tempore

  The SPEAKER pro tempore (Mr. LaTourette) (during the vote). The Chair 
would advise all Members there are 2 minutes left in this vote, 
approximately 2 minutes.

                              {time}  1515

  Mr. JOHNSON of Illinois changed his vote from ``yea'' to ``nay.''
  Mrs. MALONEY changed her vote from ``nay'' to ``yea.''
  So the motion to recommit was rejected.
  The result of the vote was announced as above recorded.
  The SPEAKER pro tempore (Mr. LaTourette). The question is on the 
passage of the bill.
  The question was taken; and the Speaker pro tempore announced that 
the ayes appeared to have it.


                             Recorded Vote

  Mr. KILDEE. Mr. Speaker, I demand a recorded vote.
  A recorded vote was ordered.
  The SPEAKER pro tempore. This will be a 5-minute vote followed by a 
second 5-minute vote on a motion to suspend the rules.
  The vote was taken by electronic device, and there were--ayes 220, 
noes 204, not voting 10, as follows:

                             [Roll No. 175]

                               AYES--220

     Aderholt
     Akin
     Bachus
     Baker
     Ballenger
     Barrett (SC)
     Bartlett (MD)
     Barton (TX)
     Bass
     Beauprez
     Bereuter
     Biggert
     Bilirakis
     Bishop (UT)
     Blackburn
     Blunt
     Boehlert
     Boehner
     Bonilla
     Bonner
     Bono
     Boozman
     Bradley (NH)
     Brady (TX)
     Brown (SC)
     Brown-Waite, Ginny
     Burgess
     Burns
     Burr
     Burton (IN)
     Buyer
     Calvert
     Camp
     Cannon
     Cantor
     Capito
     Carter
     Castle
     Chabot
     Chocola
     Coble
     Cole
     Collins
     Cox
     Cramer
     Crane
     Crenshaw
     Cubin
     Culberson
     Cunningham
     Davis, Jo Ann
     Davis, Tom
     Deal (GA)
     DeMint
     Diaz-Balart, L.
     Diaz-Balart, M.
     Doolittle
     Dreier
     Dunn
     Ehlers
     Emerson
     Everett
     Ferguson
     Fletcher
     Foley
     Forbes
     Fossella
     Franks (AZ)
     Frelinghuysen
     Gallegly
     Garrett (NJ)
     Gerlach
     Gibbons
     Gilchrest
     Gillmor
     Gingrey
     Goode
     Goodlatte
     Goss
     Granger
     Graves
     Green (WI)
     Greenwood
     Gutknecht
     Hall
     Harris
     Hart
     Hastings (WA)
     Hayes
     Hayworth
     Hensarling
     Herger
     Hobson
     Hoekstra
     Hostettler
     Houghton
     Hulshof
     Hunter
     Hyde
     Isakson
     Issa
     Istook
     Janklow
     Jenkins
     Johnson (CT)
     Johnson (IL)
     Johnson, Sam
     Keller
     Kelly
     Kennedy (MN)
     King (IA)
     King (NY)
     Kingston
     Kirk
     Kline
     Knollenberg
     Kolbe
     LaHood
     Latham
     LaTourette
     Leach
     Lewis (CA)
     Lewis (KY)
     Linder
     LoBiondo
     Lucas (KY)
     Lucas (OK)
     Manzullo
     Marshall
     McCotter
     McCrery
     McHugh
     McInnis
     McKeon
     Mica
     Miller (FL)
     Miller (MI)
     Murphy
     Musgrave
     Myrick
     Nethercutt
     Ney
     Northup
     Norwood
     Nunes
     Nussle
     Osborne
     Ose
     Otter
     Oxley
     Pearce
     Pence
     Peterson (MN)
     Peterson (PA)
     Petri
     Pickering
     Pitts
     Platts
     Pombo
     Porter
     Portman
     Pryce (OH)
     Putnam
     Quinn
     Radanovich
     Ramstad
     Regula
     Rehberg
     Renzi
     Reynolds
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Ros-Lehtinen
     Royce
     Ryan (WI)
     Ryun (KS)
     Saxton
     Sessions
     Shadegg
     Shaw
     Shays
     Sherwood
     Shimkus
     Shuster
     Simmons
     Simpson
     Smith (MI)
     Smith (NJ)
     Smith (TX)
     Souder
     Stearns
     Stenholm
     Sullivan
     Sweeney
     Tauzin
     Taylor (MS)
     Taylor (NC)
     Terry
     Thomas
     Thornberry
     Tiahrt
     Tiberi
     Toomey
     Turner (OH)
     Upton
     Vitter
     Walden (OR)
     Walsh
     Weldon (FL)
     Weldon (PA)
     Weller
     Whitfield
     Wicker
     Wilson (NM)
     Wilson (SC)
     Wolf
     Young (AK)
     Young (FL)

                               NOES--204

     Abercrombie
     Ackerman
     Alexander
     Allen
     Baca
     Baird
     Baldwin
     Ballance
     Becerra
     Bell
     Berkley
     Berman
     Berry
     Bishop (GA)
     Bishop (NY)
     Blumenauer
     Boswell
     Boucher
     Boyd
     Brady (PA)
     Brown (OH)
     Brown, Corrine
     Capps
     Capuano
     Cardin
     Cardoza
     Carson (IN)
     Carson (OK)
     Case
     Clay
     Conyers
     Cooper
     Costello
     Crowley
     Cummings
     Davis (AL)
     Davis (CA)
     Davis (FL)
     Davis (IL)
     Davis (TN)
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Deutsch
     Dicks
     Doggett
     Dooley (CA)
     Doyle
     Duncan
     Edwards
     Engel
     English
     Eshoo
     Etheridge
     Evans
     Farr
     Fattah
     Filner
     Flake
     Ford
     Frank (MA)
     Frost
     Gonzalez
     Gordon
     Green (TX)
     Grijalva
     Gutierrez
     Harman
     Hastings (FL)
     Hefley
     Hill
     Hinchey
     Hinojosa
     Hoeffel
     Holden
     Holt
     Honda
     Hooley (OR)
     Hoyer
     Inslee
     Israel
     Jackson (IL)
     Jackson-Lee (TX)
     Jefferson
     John
     Johnson, E. B.
     Jones (NC)
     Jones (OH)
     Kanjorski
     Kaptur
     Kennedy (RI)
     Kildee
     Kilpatrick
     Kind
     Kleczka
     Kucinich
     Lampson
     Langevin
     Lantos
     Larsen (WA)
     Larson (CT)
     Lee
     Levin
     Lewis (GA)
     Lipinski
     Lofgren
     Lowey
     Lynch
     Majette
     Maloney
     Markey
     Matheson
     Matsui
     McCarthy (MO)
     McCarthy (NY)
     McCollum
     McDermott
     McGovern
     McIntyre
     McNulty
     Meehan
     Meek (FL)
     Meeks (NY)
     Menendez
     Michaud
     Millender-McDonald
     Miller (NC)
     Miller, George
     Mollohan
     Moore
     Moran (KS)
     Moran (VA)
     Murtha
     Nadler
     Napolitano

[[Page 10944]]


     Neal (MA)
     Oberstar
     Obey
     Olver
     Ortiz
     Owens
     Pallone
     Pascrell
     Pastor
     Paul
     Payne
     Pelosi
     Pomeroy
     Price (NC)
     Rahall
     Rangel
     Reyes
     Rodriguez
     Ross
     Rothman
     Roybal-Allard
     Ruppersberger
     Rush
     Ryan (OH)
     Sabo
     Sanchez, Linda T.
     Sanchez, Loretta
     Sanders
     Sandlin
     Schakowsky
     Schiff
     Scott (GA)
     Scott (VA)
     Sensenbrenner
     Serrano
     Sherman
     Skelton
     Slaughter
     Smith (WA)
     Snyder
     Solis
     Spratt
     Stark
     Strickland
     Stupak
     Tancredo
     Tanner
     Tauscher
     Thompson (CA)
     Thompson (MS)
     Tierney
     Towns
     Turner (TX)
     Udall (CO)
     Udall (NM)
     Van Hollen
     Velazquez
     Visclosky
     Wamp
     Waters
     Watson
     Watt
     Waxman
     Weiner
     Wexler
     Woolsey
     Wu
     Wynn

                             NOT VOTING--10

     Andrews
     Clyburn
     Combest
     DeLay
     Dingell
     Emanuel
     Feeney
     Gephardt
     Miller, Gary
     Schrock


                Announcement by the Speaker Pro Tempore

  The SPEAKER pro tempore (during the vote). Members are advised that 2 
minutes remain in this vote.

                              {time}  1523

  So the bill was passed.
  The result of the vote was announced as above recorded.
  A motion to reconsider was laid on the table.
  Stated against:
  Mr. EMANUEL. Mr. Speaker, on rollcall No. 175, I was unavoidably 
detained. Had I been present, I would have voted ``no.''

                          ____________________